SABECO BEER PRODUCER REPORT

SABECO BEER PRODUCER

INTERNET MARKETING REPORT

PhmPhngDuy
TrnQuangKhi
NgThyPhngTho
PhmThyTrang
NgChTrung





7/14/2014









This is a report about Sabeco Beer Producer Internet Marketing Plan for Internet Marketing Course.
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CONTENT
Executive summary and Objectives ................................................................ 3
Micro-Environment ......................................................................................... 4
Macro-Environment ........................................................................................ 5
Competitive Analysis ...................................................................................... 6
Buyers/Customers ........................................................................................... 8
Alternative ....................................................................................................... 9
Product .......................................................................................................... 10
Pricing ........................................................................................................... 12
Place .............................................................................................................. 13
Promotion ...................................................................................................... 14

1. Phm Phng Duy:
- Micro-environment
- Pricing
2. Trn Quang Khi:
- Executive summary
- Objective
- Alternative
3. Ng Thy Phng Tho:
- Product
- Promotion
4. Phm Thy Trang:
- Competitive Analysis
- Buyers/Customers
5. Ng Ch Trung:
- Macro-environment
- Place
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EXECUTIVE SUMMARY AND OBJECTIVES

Saigon Beer-Alcohol-Beverage Joint Stock Corporation (Sabeco) entered the
market in 1977. Up to now, Sabeco has incorporated 28 members with a variety of
product categories: beer, alcohol, beverage, mechanics, real estate, packaging and
transportation. In this portfolio, our group concentrates on beer market in Vietnam
including 333 (Premium-333), Saigon (Saigon Larger, Saigon Export, Saigon Special)
and analyzes marketing online of this product line.

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MICRO-ENVIRONMENT
1. Strengths:
- Strong brand, it was established in 1977 and very popular in
Southern market.
- Accounts for 35% of domestic beer market
1

- Exports to over 17 markets all over the world such as: Japan,
Malaysia, Singapore, the Netherland, France, etc.
- Has a very big land capital to build factory which is convenient
and effective for producing (573.717,92m
2
)
2

- Has a huge distribution channel across the country, especially from
the mid to the south.
- The management system meets the ISO 9001:2000 quality
3


2. Weaknesses:
- Domestic material supplies just account for a small proportion,
depending much on material suppliers from other countries =>
have a high risk of materials and currencies fluctuation.
- Products havent met the expected quality which accounts the main
part for the middle class.
- Distribution channels depend primarily on wholesales, many
classed to reach the final sales points.
- Labors and employees trainings cant keep up with the business
operation.






1
http://www.sabeco.com.vn/newscontent.aspx?cateid=391&contentID=1151
2
Page 37 http://www.vise.com.vn/Portals/62/Documents/BAN%20CBTT_SABECO.pdf
3
http://sabeco.com.vn/newscontent.aspx?cateid=438&contentid=445
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MACRO-ENVIRONMENT

1. Opportunities:
- Beer market has a potential development in Vietnam because the
population is increasing and more and more people consume beer
(in 2013: 2.9bil litters beer and Sabeco: 1.3 billion litters; Expected
in 2014: 1.368 billion litter)
4

- Opportunity to expand the market to more international countries
and northern areas.

2. Threats:
- Hard to maximize profits as materials pricing trends is getting
higher
- High competition
- Difficult quality control
- Problems: evading tax and fraud are out of control. Recently,
Sabecos CEO has decided to invest about 1000 billion VND in
marketing but its profit still remained stable, which displeased
Board of management. This brought about a big question: Why did
he do it?
5

- Some competitors are VBL (Tiger, Heineken), Habeco, etc.



4
http://www.yan.vn/nguoi-viet-va-bi-kich-cua-29-ti-con-say-23337.html
http://baocongthuong.com.vn/doanh-nghiep/47369/sabeco-nam-2013-tieu-thu-1-310-ty-lit-bia.htm#.U8KqHPl_t6o
5
http://citinews.net/kinh-doanh/can-thanh-tra-muc-chi--khung--cho-marketing-cua-sabeco-NYXGS2Y/
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COMPETITIVE ANALYSIS
About 15 years ago, Sabeco is one of the biggest beer companies in Viet Nam. Up
to now, there have been more beer companies are competitive with Sabeco. They are:
1. VBL Heineken [http://www.vbl.com.vn/]
Thinking of Heineken, its value is often instilled in consumers perceptions,
especially its perfect quality and this led its brand to exist and develop stronger and
stronger over 60 countries with more than 110 factories around the world.
Heineken was processed in a traditional way from 1973. It was produced with 5%
concentration of ABV, using pure water, carefully selected wheat and hops. Thanks to
special yeast, Heineken A-yeast brought to Heineken unique aroma. It is distilled
carefully in Switzerland and provided for 110 manufacturers monthly.
This is a kind of beer which has unforgettable flavor and always makes a great
progress in tests figuring out difference between flavors of beer. And 90% of people
participating in the tests confirm to continue with Heineken.
The key factor is its quality and Heineken always ensure that its products are
process in the most standard condition. It is pure to use CO
2
in producing process.
Design and packaging are big differences compared to its competitors. Despite
being loyal to traditional color blue, Heineken also improves and creates newly
packaging which aims at customer relationship. Most recently, Heineken has just
officially introduced new product in Vietnam market: all of the brands are printed on a
special paper with luxurious silvery lines, bottle caps with metal contours surrounding
Heineken Quality, the brand in the back is drawn with red star... Thanks to this
design, Heineken is well known by both foreigners and Vietnamese farmers.
That being loyal to blue color and current design is a part of tactics keeping
superior traditional quality as well as luxurious image. New packaging (if yes) will
contribute Heineken beer to a more luxurious and unique trend. Heineken is the best
brand for upper class in Vietnam market together with international markets.
2. Habeco: [http://www.habeco.com.vn/]
HABECO now focuses on 2 target segmentations: aseptic beer (bottles/cans) and
draft beer.
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Aseptic beer (bottles/cans):
Bottles (V=450ml), and so-called beer with red brand which is the
HABECOs main product, is produced in modern assembly line that has a
capacity of 30,000 bottles/hour. Hanoi beer with specific aroma poured in
brown glass bottles packed in plastic box facilitates transportation.
Cans (V= 330ml) was first entered the market in 1992. It is popular because
of its quality and design along with easy-to-use ability.
Hanoi Beer Premium is a new product which is poured in bottles
(V=330ml).
Hanoi Lager is poured in bottles (V=450ml) and packaged with green color
instead of red, therefore, it is also called beer with green brand. It is
officially introduced in 2007.
Draft beer:
Hanoi draft beer has high quality, pure fragrance and appropriate price for
most of the working class. Nowadays, Hanoi draft beer is poured in keg in
Germanys closed assembly line, ensuring food hygiene as well as keeping intact
quality and flavor as those in HABECOs cold fermentation cellar.
In conclusion, day-by-day Habeco always tries to affirm their position in Viet
Nam market.
http://zonzoncodon.wordpress.com/tag/s%E1%BA%A3n-l%C6%B0%E1%BB%A3ng-bia/
COMPARISON AMONG THREE COMPANIES

6
http://www.marketingchienluoc.com/chi%E1%BA%BFn-l%C6%B0%E1%BB%A3c-c%E1%BA%A1nh-
tranh/12335-so-g%C4%83ng-2-%C4%91%E1%BA%A1i-gia-bia-r%C6%B0%E1%BB%A3u-habeco-sabeco
7
http://news.go.vn/kinh-te/tin-143897/10-loai-bia-duoc-tieu-thu-nhieu-nhat-tai-viet-nam.htm
http://zonzoncodon.wordpress.com/tag/s%E1%BA%A3n-l%C6%B0%E1%BB%A3ng-bia/
8
http://news.go.vn/kinh-te/tin-143897/10-loai-bia-duoc-tieu-thu-nhieu-nhat-tai-viet-nam.htm

Sabeco Habeco VBL
Market Share
6

(2010)
51.4% 13.9% 29.7%
Sale Products
7

(liters-2010)
1,1bil 403.8mil 200mil
Revenue
8

(VN-2010)
19.293bil 5.439bil 3.900bil
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BUYERS/CUSTOMERS:

1. Feedback:
This pie chart based on 22 feedbacks.
9

- Why most of customers satisfied with Sabeco:
o Has a suitable price
o Easy to drink
- Why customers are unsatisfied with Sabeco:
o Most of customers said after drinking 333,
they had headache.

2. Segmentation:
Sabeco has 2 main target segmentations:
- Firstly, in the present economic situation, most of the beer products of Sabeco
focus on serving the middle class in order to reach Sabecos aim. Moreover,
improving the quality is necessary to compete so Sabeco will investigate the
luxury product to satisfy the upper class.
10

- Secondly, Sabecos beer products were consumed the most in the south of Viet
Nam, now Sabeco continues to develop this market and Sabeco also extends to
adjacent area and establishes branches in the whole country.
11



9
http://vozforums.com/showthread.php?t=3577898
http://www.5giay.vn/chuyen-tro/5996822-may-bac-thuong-uong-beer-gi-khi-di-tiec.html
10
http://laodong.com.vn/doanh-nghiep/bia-sai-gon-huong-toi-phan-khuc-thi-truong-cao-cap-201226.bld
11
http://www.sabeco.com.vn/newscontent.aspx?cateid=5&contentid=853

40.91%
59.09%
Satisfied
Unsatisfied
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ALTERNATIVE


We will introduce new product Saigon Lady in different restaurants by
offering one free bottle for each woman in each table and simultaneously getting
feedback. There are 2 ways to solve the problem if the product doesnt meet
market demand after a quite long time launching it:
1. Problem of price: we will adjust the price so that its suitable for market
supply and demand. If its still unsuccessful as expected, well cut the price
and change a few ingredients but keeping standard quality. If not, remain
the same price.

2. Problem of quality: we will reinvestigate the formula of the product and
collect all products in the market. After retesting feedbacks and its aroma
carefully, its vital to re-launch brand new product line which is more
appropriate to consumers. If succeed, we will enter mass production in
Vietnam and expand to international market.

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PRODUCT
Source: http://sabeco.com.vn/ProductAboutBeer.aspx?cateid=408


Saigon Special Saigon 333
Categories Lager Beer Lager Beer Lager Beer
Concentration of
alcohol
4.9% Volume
(V=330ml)
4.9% Volume
(V=335ml)
4.9% Volume
(V=330ml)
Ingredients Water, malt, hops Water, malt, hops, rice Water, malt, hops, rice
Packaging Glass bottles Glass bottles Cans
Markets Vietnam &
international markets
(US, Germany,
Japan)
Vietnam &
international markets
(US, Germany,
Japan)
Vietnam
Domestic market Main focus on youth
and successful people
Gifts on Tet holidays Drink when getting
together with friends
and family, especially
on Tet holidays
Suggestions -Improve aroma to
balance high social
classs various needs
-Change shape of body
to generate difference
-Change the colors of
packaging to attract
different segments(this
design is more suitable
for the successful)
-The slim body is easy
to hold
-Colors create novelty,
energy, and flexibility
-Price is fine
-Dont need to change
because of its fresh
flavor along with
portable body and
most of Vietnamese
people get used to it
Change aroma(strong
taste, smell of wheat,
and not bitter)

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PRODUCT
Beer - one of the nutritious drinks is produced from main ingredients such as
water, wheat, rice and hops. Using fermentation process will create a drink which is
nutritious, specified aroma, low concentration of alcohol, light bitterness and white foam
with a suitable amount of CO
2
Beer contains substances which is against aging process and avoids some of heart
diseases. Have you got insomnia? The answer is to drink a small glass of beer. It will
help to relieve stress and sleep soon. Moreover, beer contains a various system of
enzymes, especially amylase
Alcoholic drinks always create excited feeling. If this can be in good use, your life
will full of energy and happiness
Thanks to those benefits, Sabeco decided to launch a new product for ladies called
Saigon Lady. Through strict process of studying carefully and testing many times on
aroma, we realize that Saigon Lady, with low concentration of alcohol (2%), little
bitterness and a sweet smell. Its body is similar to this of Saigon and it contains a
volume of 150ml. In addition, we design the pink and silver package which is flexible,
eye-catching and feminine. Therefore, in other words, Saigon Lady is a perfect choice
for women from luxurious parties to everyday meals.

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PRICE

Sabeco has 2 main beer product lines: 333 and Saigon with different
segments in line with its suitable price to compete with their rivals. Saigon special
which is the premium product of Sabeco has the cheapest price in the upper class
among many brands such as: Heineken, Tiger, Tiger Silver, Sapporo, Saigon
Special, etc.
Price survey:
12

Heineken 20k
Tiger 16k
Tiger silver 18k
Saigon special 15k
Sapporo. 20k

Suggestions: Saigon special is getting consumed more over time and it's the
main product of Sabeco. I think it should be aimed to be as luxurious as Heineken
or Sapporo with the suggestion of improving the aroma to satisfy VIP customers,
changing the shape of the bottle and also the color of the package to make it more
attractive, beautiful and luxurious. Since this strategy, the price should go up from
15k to 18k. That price will generate more revenue to balance its cost and
moreover, the effect of this price will make it become the real upper class product
in customers' mind

333: One of the Sabeco product lines which has fresh flavor along with its
portable shape of the bottle. In addition, 333 is the traditional product of Sabeco
that have been present since the company was found. It has built its position in
Vietnamese customers for many years. Because of that, the flavor should be
remained to keep it nostalgia. My suggestion is the price should be decreased a
little bit from 8.5k to 7.5k because its main customers belong to the working class
and they are affected a lot since the Economy Turmoil to keep the customers
consuming it.


12
http://www.foodpanda.vn/restaurant/v8bj/thien-y-quan
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PLACE
This is a specific product so we more focus on offline models than online models.
1. Online channels:
- Facebook: creating fan-page, writing blog to introduce products prices,
sales, etc.
- Banner advertising: put ads on websites such as dantri.com,
vnexpress.com, foody.vn
- SEO: hire people to carry out campaigns with relevant keywords such as
biangon, biaVit, to get the top position
- Online purchasing: axing price or free shipping

2. Offline channels:
- Hiring PGs to attract more customers in restaurants
- Using poster in restaurants, places (bus stations, supermarkets)
- TV commercials
- Magazines, especially for men
- Organizing beer events
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PROMOTION
1. Sales on Tet holiday: buy 2 cartons get 6 bottles/cans free (Ngi H Ni vui Tt
cng bia Si Gn)
13

2. Warranty after purchasing is also important and need to be improved. Sabeco used
to be criticized because of shortage of beer in bottles but they did not give any
right solutions for this
14
(Ln)
3. Trust is the key to build customer relationships so Sabeco should figure out ways
to solve existed problems such as strange objects in beer bottles to satisfy
customers
15
(Dng)
4. Advertising on youtube: create funny video clips combined with suitable songs
introducing brand new products to appeal more customers who belong to segments
Sabeco Corporation aims at
5. Endorsements on TV commercials, social network ads: invite celebrities to help
with advertisements
6. Co-advertising other products(foody.vn, restaurants), which reduces cost of
advertising
7. Sponsoring game show on TV so that couch potatoes will notice the brand
8. Donating money to charity










13
http://kinhdoanh.vnexpress.net/tin-tuc/doanh-nghiep/doanh-nghiep-viet/nguoi-ha-noi-vui-tet-cung-bia-sai-gon-
2726110.html
14
http://pda.vietbao.vn/Kinh-te/Chai-bia-Sai-Gon-quai-di-khach-hang-doi-5-trieu-dong/75232304/88/
15
http://pda.vietbao.vn/Kinh-te/SABECO-khat-cong-bo-ly-do-vo-keo-boi-trong-chai-bia/75219646/88/