ID number

300334284: Ngô Thị Thu Trang

300322749: Trần Thanh Thư
300334259: Nguyễn Bích Hải
300343985: Trương Đức

MARK 101
ASSIGNMENT
 TABLE OS CONTENTS
1. Executive summary
2. Company description
3. Strategic focus and plan
 Mission
 Goal
 Competitive advantage
4. Situation Analysis
 SWOT analysis
 External analysis
 3Cs analysis
5. Market product focus
 Product objectives
 Target market
 Points of difference
 Positioning
6. Market program
 Product strategy
 Price strategy
 Promotion strategy
 Place ( Distribution ) strategy
7. Financial data and projections
 Past sales revenue
 Five- year projections
8. Organization
9. Implementation plan
10.Evaluation and control
I. Executive summary
SABECO company is the largest beer producer in Vietnam and carries its own
brand of Vietnamese style. Over 30 years of activity and growth, SABECO has
launched many products beer, various soft drinks meet demand. SABECO
products are not only have good design but also good quality to price match the
income of Vietnamese people. Thanks to the strategic development of products
better, SABECO has gained the trust of the people for more than 35% of
domestic market share with many items in which priority is beer. Authorize in
1875 ,the first product which make the believe for the customer and the brand of
SABECO is Saigon Expert. The tremendous success of the Saigon expert helped
SABECO additional growth engine. Actually, SABECO has 28 branch with lots of
product for consumer such as Saigon Expert, 333 Premium, Saigon Larger,
Saigon Special, beverage and alcohol.
This project was written after analyzed the Vietnamese beer market which has
been grown quickly for recent years. The beer industry is expected to post an
annual volume growth rate of 13% 2011-2015 and 8% 2016-2025. The overall
objective of this project was to evaluate the market potential of SABECO in term
of analyzing SWOT matrix. Saigon Expert is a traditional brand of SABECO that is
targeting at the target segment of people who tend to drink beer from past to
present. Although at the present, SABECO is the leading beer producer with the
market share approximately 34% in 2012 ( BMI 2013),however, its prevailing
problems are how to maintain the brand and the revenue meanwhile there are
many different brands try to enter the market. On the other hand, Saigon Expert
was not so successful because SABECO locked of an effective marketing plan
especially focusing on promotion activities for the brand. Saigon Expert is nearly
loose awareness of consumer in the market segment.
In exploring the product, Saigon Expert, we have some recommendations to
increase market share and market size in the market segmentation by investment
in to sales, marketing and PR activities, prioritize promotion activities to create
the customer need
1/ For the pull strategy: Increase brand awareness and setting strong brand
identity and trade mark
2/ For the push strategy: Strongly invest for retailer in term of point of sales
material, display and invest on distribution system in both policy and display,
especially at point of sale.
II. Company description.
SABECO Company was established on 01/06/1997 by combining between The
North of Alcohol Company and Brewery at Cho Lon. After that, it was renamed as
Saigon Brewery and abbreviated as SABECO (Saigon Beer-Alcohol-Beverage Joint
Stock Corporation). SABECO the whole industry leading unit successfully
completed the task of politicians to productivity, quality, efficiency, contributed
to the economic development of the sector, local and national. SABECO brand
has maintained progressively the customer confidence and meet 35% market
share of the consumer. In many years, SABECO receive merit and emulation flags
of the Prime Minister as well as the merit of the block grant in corporate sectors
and the labor unions. SABECO has accounted for about 35% of domestic market
share, with volume growth of beer sector (by the Ministry of Industry forecasts)
about 15% per year and the growth of beer sector industry is better than output
the overall growth of industry, reaching over 20% per year during 2004-2006.
IV. Strategy analysis
1. External factor
Environmental forces which include social, economic, technology, legal and
political has a significant effect on the development of company. Acknowledge
these factors will help business recognize the strength as well as the weakness
that can occur during the time running a business.
Social factor.
Population and demographic such as age, gender, ethnicity, income and
occupation affect significantly on consumption of alcohol beverage especially
beer industry. Cheer for Vietnam ,Vietnam represent a prime market for beer
producers. Unlike other countries, the Vietnam have a tradition of drinking beer
and express a strong loyalty to their local brands, especially Saigon beer. In
addition, Vietnam is the country which has the large population. In 2014,
Vietnam has a total population of 85 million. In there, the rate of young people is
high, 85 percentage of Vietnam's population are Boomers which have high
demand of beer consumption. Moreover, Vietnamese is affect much on
traditional, they not only drink beer at the Tet holiday, celebration or party but
also drink beer in the usual days, so the beer industry in Vietnam has more
opportunity to develop. However, because of the popular foreign products in
Vietnam, for the high society whose income is high, they prefer foreign products
to domestic products. Therefore, it is difficult for the domestic business compete
with foreign brands.
Economic factor
2007, Vietnam joined WTO that will make Vietnam become well known and gain
high appreciate. Beside, the pressure of integration affects to the economic
policies, and state management and make operation more fluent. In addition,
the international trade is more easier because of the elimination of unreasonable
barriers which restrict the growth of businesses. Moreover, joining WTO
contributes to the clean apparatus State and improve the implementation of the
economic policy in Vietnam efficiently to make the system transparent policies.
These factors will facilitate the attraction of foreign investment in the sector.
Thanks to efforts for steady growth and effective investment strategies, SABECO
is now in top three of beers maker in whole southeast Asia and is the 21 st largest
beer producer in whole world.
In addition, Vietnam is the country which has high total gross domestic product
around 8% in recent years. Although it experienced global recession in 2008 and
2009, it is forecasted increase the grow rate in next 10 years. Moreover,
according to Vietnam general department, from 2013 the growth rate in Vietnam
will continuously increase with fast speed. It is seem as a opportunity for SABECO
to develop its business. Whereas, Vietnam has high inflation rate, it leads to the
cost of production is high so that it causes many difficulties for SABECO
company and whole beer industry.
Technology factor.
The development of science - technology has created the modern machinery,
materials richer and higher quality. For the SABECO company, it uses the HACCP-
hazard analysis critical control point system- to indentify the poison in
nourishment. The company has successfully implemented quality management
system under ISO 9001 – 2008, ISO 1400 standards at all branches across the
country.
Political and legal
To protect the domestic businesses, the Vietnam's government has applies some
policies and legal which will positive or negative effect on beer producers.
Encouraging foreign investment policy which will bring more condition for the
foreign company invest in beer industry. Foreign Investment Law and Law on
Promotion of Domestic Investment create favorable condition for all economic
sectors invest in beer industry. Decree No. 40/2008 / governmental decree
provides for the manufacture and sales of alcohol, which provide the basis
standard for improving and controlling product quality and strengthen control
on investments, limiting the widespread development of wine production facility.
Therefore, the no named beer producers whose production cannot reach the
basic standards cannot survive in the market. However, according to Circular No.
12/1999 provides for advertising, promotion, place Alcohol business, Regulation
on promotional advertising costs are 10% of sales which cause difficult for
SABECO promote their product. In addition, the policies on preventing of alcohol
abuse and that government may apply in the future, accompanied by
strengthening propaganda and education on the harmful effects of alcohol
which can reduce the demand of beer.
Environmental factor
Vietnam is a area which have tropical climate and abundant mineral water
source. This is really a source of precious raw materials, creating favorable
conditions for the development of beer industry. Moreover, with hot and dry
climate, the demand for beer in Vietnam is huge. However, the natural
conditions of Vietnam was not favorable for the development of a number of raw
materials. Especially in the brewing industry, the main raw material barley and
Houblon but both types are not suitable for the climatic conditions Vietnam.

3. SWOT analysis
Opportunity
Population is over than 80 million people and tropical weather around year
and Viet Nam is a potential fully market. Saigon is a band's beer which is famous
of Viet Nam and is enjoyed by customers at Viet Nam and foreigners. In 1995,
Viet Nam joined WTO so Viet Nam has a lot of opportunities for export goods.
Therefore, Saigon's beer also has opportunities for export with lower price.
Quality, and price of products are agreement by customers and beer’s market
in this period is balance. The growth rate of SABECO's company each year is also
high from 17% to 20%. Using the internet services creates a high growth and
good conditions to e-commerce. S/O : designs of products are enjoyed, high
quality and high location in market. S/T : high quality, variable products
Threats
The price of material every year tends increase and if company applies
policies about balance price of products which influences revenue.
SABECO's company must competition not only international company but also
national company such as Heineken's company, THP's company, and so forth.
Tax is high. Using capital to invest some other filed but they cannot statistic
revenue from this investment. Nowadays, tending people use mineral water,
green tea to protect health.
Strength
People believe products of SABECO's company. Band has a high prestige
in market. The distribution system is big (not only nation but also foreign
countries). A lot of factory's beer and locate is convenience. Creating a lot of
events such as drinking each beer bottle support 200 VND to poor people, and
poor provinces or support special days of country .
Weak
Marketing strategies is not efficiency. Distributions of Saigon's beer is so
much and they compete together. Quantity of goods is not good such as
special's beer is one of some kinds which customers enjoy it but company limited
quantity and increase price.

V. Market product focus

 Product objectives
To become the market leader, SABECO always focused and
developed new products to meet the rigorous demands of the
customers. Nowadays, some popular brands of SABECO are Beer
 333, Saigon Special, Saigon export etc. Different products have
different styles, but it bold the Vietnamese cultural, hitting
consumer mentality.
 Target market
Companies SABECO identified target market is to serve people
with ages from 22 to 49 working in the enterprise, employees,
etc. and mainly concentrated in the city when have a high rate of
population in order to meet the needs of many customers. The
target market of the company is to exploit the Southern market
and use it as a base to penetrate other markets. Mainly customers
of the company is the group of rather average income, between
the ages of 29 and 49, who is the businessmen, officials and civil
servants frequently traded ... High-income people often use high-
quality products to confirm their position. Also for the people who
have average incomes, they can choose the goods for their needs
sensibly such as a bottle of beer or a can of beer. This product has
a good quantity, reasonable prices that can satisfy most customer
needs.

 Points of difference
For example: Saigon Export
 Saigon Export is produced by traditional fermentation methods in a
long day to create a strong flavor familiarity.
 Saigon Export does not cause hydrophilic and headaches after
drinking.
 Saigon Export was produced and widely distributed across the
country, especially popular from the Central to the Southern.
  Saigon Export exported to over 18 countries around the world, and
especially conquering the fastidious markets such as Japan, USA,
Australia, Singapore etc.
 Positioning

Export Beer 355 (Saigon Red) and Beer 333 are two products that have the
highest consumption in Vietnam. Particularly, Saigon Export accounted
28.1% in the market share in 36 major cities and 42% in HCM city.

VI - Marketing programme:
There are four detailed marketing elements of Saigon Export beer marketing
programme below here. Remember that SABECO is applying the market
development strategy in which SABECO is launching and developing a Saigon
Export beer to the existing market of Vietnam and exporting to foreign markets.
1. Product strategy:
According to the current result of the survey about the reasons causing traffic
accidents, there was 45% of people answered that they were drunk because of
the alcohol concentration in beers they drunk were too high. The research also
shows that the number of diseases caused by high-alcohol concentration beers is
increasing. More seriously, this situation happens in urban area such as big city
like HCM. HN, …, in which the number of accidents caused by it is four times
higher than the number in rural area. Therefore, launching and developing
Saigon Export beer, which has low alcohol concentration but still sustains the
special flavour of Vietnamese beer, will create the unique quality on SABECO
product line and the attraction on customers who want to have a fun party and a
safe night ride after all. Still providing good nutrition, SABECO creates the points
of difference in beer market by reduce the alcohol concentration to 4,5% ( other
beer is 5,9%) in order to help the customers, who have habits of drinking beer to
reduce stress or just to make their party more exciting but have no worry on
getting drunk. For most of Vietnamese people and foreigners who want to taste
a real Vietnamese favour beer, SABECO brings customers the Asian lifestyles, the
understanding without levels or standards among people and unlimited fun, as
the slogan of Saigon Export is too big to be understood.
2. Price strategy
In the market of alcoholic beverages and drinks, SABECO is a pioneer with its
brand Saigon Export beers. In that time, Saigon Export was a unique Vietnamese
beer in the beverages industry. However, SABECO did not set a high price
compared to other foreign beer brands. In general, the average price of
10,000VND/bottle( the cheapest beer according to the figure ) is reasonable and
acceptable for customers. Along with constantly improving product quality
associated with marketing strategies, promote sale of beer, the unit has
promoted initiatives and rationalizing production and implement strategies to
reduce the cost saving discount Members improve product competitiveness.

Layout Production Company operating 3 shifts continuous incinerators should

Per million litters of beer products dot.Hoac save 6 tons of oil with automatic
phase method for fermenting beer high concentration really just contribute more
energy and water; wage costs. As their slogan, Saigon Export beer aims that
everyone can buy it with the best price and the quality against commitments set
out.
3. Promotion strategy:
There are two elements needed to consider in promotion strategy:
Firstly, as the result of survey, two main means of advertising to approach
consumers are television and Internet. More specifically, SABECO should launch
the advertisement on social network such as Facebook, Instagram... On the other
hand, SABECO should Promote the ads on TV media, special promotions Saigon
Export, winning Scratch Saigon Lager 2 bottles get 1 ticket exchange,…Contact
with some newspapers and magazines for giving small discount of coupons to
promote people buy beer
The second element is the short-term plan for one year in which public relation,
advertising, and sales promotion are combined relevantly for different quarter of
the year. In addition, SABECO Company should also combine the sales
promotion by offering 10% discount, the most favourite sales promotion base on
the survey, to create the first impression for customer.
4. Place strategy:
SABECO product is distributed in its present market through wide distribution of
many distributors and over one hundred thousand outlets in 64 provinces across
the country. Shops selling Saigon Export are allocated not only in most of cities
in Vietnam such as Hanoi, Da Nang and Ho Chi Minh but also in foreign
countries such as Canada, United Stated, Russia, etc.
It is recommended that SABECO should have more warehouses for different
location i.e. in each city or province to reduce the distribution cost.

As beer is a fast moving consumer goods, beer is sold in many places such as
convenient shop, bars, supermarkets, markets, etc. SABECO may apply the
intensive pattern of distribution.
Until now, SABECO already has more than 1,200 distribution channels
throughout Vietnam. New distribution network has been expanded; covering the
whole country, with the direct involvement of the customer to the product can
reach the consumer faster and most convenient.
VII. Historically, SABECO is a company which grows strongly and was one of
those leading brands in Viet Nam. In 1997, average income of SABECO's
company was 3,2 million/person/month, and increasing significantly in 2006 was
6,0 million/person/month. Besides that, the growth rate in every year is very high
from 17 percent to 20 percent. We can see the chart that the beer market of
SABECO' s company in Viet Nam reached a peak at 45,04 % in 2010 and in 2011
SABECO's company also peaked at 47,50%. This could be because they have a
good strategy about advertisement, medium or satisfy of customer about
products, services, and so forth.

(http://ftp2.ssi.com.vn/Customers/Research/2012/Report%20sent%20out/
Sabeco_Habeco%20Company%20Update_Still%20attractive%20despite
%202011%20low%20performance_29.06.2012_SSIResearch.pdf )
The chart shows that the profit and loss of SABECO's company between 2009
and 2011. The gross profit rate of each year increased but the profit in 2010 was
better than profit in 2011. This is understandable because the demand of
customer declined and the inflation rate of Viet Nam increased sharply so the net
income rate of SABECO's company decreased between 2,771 billion and 2,344
billion. In 2011, the sales rate rose by 11,2%, and the selling price also increased
by 1,55%. In addition, the gross profit margin rate declined from 24,75% in 2010
to 21,1% in 2011. This also was one of some strategies of company to rise sales,
attract new customers, and develops this brand other areas.
X. Recommendation:
SABECO will pursue “Go around the world” strategy by expanding to
worldwide. Its target segments to all customers who like low alcohol
concentration beer for their health.
The IM plan will support the overall marketing plan by capitalizing on:
- Reminder advertising should be taken for Saigon Export and other current beer
produced by SABECO what kind of promotion is being used, and other
information.
- New products: Saigon export cans and Saigon export plastic bottle.
- Sales promotions, according to sports trend like soccer, ...
The mix of IM tools includes website, email, social network, search engine, video
advertising.
The expected benefits of this campaign will be:
• Customer service: understand more about customer experience, receive
positive feedback
• Advertisement: become the best of traditional beer
• Finance: the revenue reach 10.000.000.000 VND, online sales at about
400.000.000