Individual assignment analyzing marketing environment of heineken brand in vietnam

Analyzing Marketing environment of Heineken brand in Vietnam
Marketing Principles (MKT101)

Marketing Principles

INDIVIDUAL
ASSIGNMENT
Analyzing Marketing environment of
Heineken brand in Vietnam
Full name: Dương Thị Hà Linh
Class: MC1602
Student ID: HA153030
Lecturer: Bùi Thị Hạnh Thảo
Course: MKT101 – Marketing principles
Date: Spring 2021

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Table of contents
I/ Introduction

1

Company’s Background

1

Target Customer

2

Product

2

II/ Microenvironment

3

Company

3

Suppliers

3

Marketing Intermediaries

5

Competitors

5

Public

6

Customer

7

III/ Macroenvironment

8

The demographic

8

The economic

9

Natural

9

The technological

10

Political and Social

11

Culture

11

IV/ Marketing environment

11

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I/ Introduction
Environmental research is a very important part of Marketing, it determines the
business strategy of each business for each of its products and services.
Heineken is a well-known enterprise in the world for beer products, and has been
present in the Vietnamese market for more than 10 years. And this is also a
premium beer brand that has been holding a quite important position in the minds of
Vietnamese customers, it is interested not only by the quality, eye-catching of the
brand but also in its beautiful image, but also made efforts during the past time.

1. Company’s Background
The Heineken brand thrives in more than 60 countries with more than 110
manufacturing plants worldwide. (2010). Today, Heineken has become the No. 1
beer producer in Europe and No. 2 in the world with operations in more than 70
markets globally and about 250 international brands. 1994, the first Heineken beer
was produced in Vietnam by Vietnam Brewery Limited (VBL) and founded in
1991, a joint venture between Satra 40% and Asia Pacific Breweries Limited 60%

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(Heineken Asia Pacific Pte Ltd.). 2016, Renamed to Heineken Vietnam Brewery
Company Limited.
2. Target Customer
The target customer focus is the middle and high-end market share, focusing on
business customers, office workers, and adequate income people. Therefore,
businesses always invest in and promote high product pricing strategies to assert the
position of consumers.
Some other parts also mainly use Heineken beer, that is, bars and discos. However,
the majority of these customers are not regular customers and are not very loyal to
the brand.
3. Product
Heineken Vietnam had developed drink brands, including seven beer brands
Heineken, Tiger, Larue, BGI, Bivina, Desperados, Affligem, and Strongbow Cider
fermented apple juice. Vietnam Brewery Limited (VBL) was very proud to be the
first beer producer in the world to achieve ISO 9001: 2000 certification and also the
first beer producer in Vietnam to be officially recognized by the Quality
Management system. amount of HACCP( 2001). The company has achieved four
consecutive years receiving Golden Dragon Award (award honoring FDI enterprises
founded in 2001) for the best foreign-invested beer maker in Vietnam. (2001-2004),
Sustainable business for two consecutive years (2017, 2018), Enterprise with the
best working environment (2018).
As the world's most popular premium beer brand, Heineken has always brought
millions of customers quality products with perfect taste and classy experiences
throughout the decades.

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II/ Microenvironment
1. The company
With the strength of being the leading foreign beer brand globally, modern
production lines, strong financial potential, Heineken is currently the second-largest
company in the country and the highest revenue in the country. Like other
businesses, Heineken also suffers from difficulties because of the state's alcohol
restriction policy...
However, there are some product limitations of the company, including high
product prices, images, advertising attached to foreigners have not created
familiarity with Vietnamese consumers; Opportunities - The strong growth of the
beer market has resulted in the increasing trend of consumption of foreign and
premium beer and product expansion into a mid-range segment. Some strong points
include: World famous beer brand; holds a large market share in the high-end
segment; quality products, eye-catching designs; Modern production lines; Effective
marketing strategy challenges.
2. Suppliers
About Heineken Vietnam, the company fully manages the supply cycle and
production through its parent company and factory in Vietnam. Heineken's brewery
has 12.7 hectares located in Thoi An Ward, District 12, City. Ho Chi Minh City is
one of the most modern breweries in Southeast Asia today. Over the years,
Heineken Vietnam Brewery has been recognized as one of the units that consistently
completed outstanding tax obligations and highly efficient production and business
activities.

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Heineken Vietnam had excellently risen to the No. 1 sustainable manufacturing
company in Vietnam in 2017. Heineken Vietnam has proven that pursuing
sustainable development will help businesses and communities grow together. The
key lies in creating a closed value chain, including initiatives for a circular economy
and ensuring transparency and integrity in business reporting and sustainability
reporting.
At the previous Vietnam Business Sustainable Development Forum (VCSF 2017),
Heineken Vietnam was also recognized by representatives of the Government and
the business community as an excellent typical enterprise applying the sustainable
development model. Sustainable activities in production and business activities
positively impact people, the planet, and prosperity, following the National
Sustainable Development program and the United Nations' sustainable development
goals ( UN SDG).

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3. Marketing Intermediaries
In Vietnam, Heineken's distribution channel is nationwide, from retailers to leading
distributors. It is a popular drink and indispensable for men, whether in daily meals
or a large and small party at home or restaurant. That is why in Heineken's
marketing strategy in Vietnam, this product’s distribution needs to cover the market
and be easy for consumers to find.
There are many types of beer in the Vietnamese market. Many foreign
manufacturers also intend to penetrate the beer market’s high and mid-end segment,

so Heineken must strengthen and maintain the distribution channel system. Agents,
mostly the dealer level. Heineken and many significant brewers in the market are
willing to pay commissions to agents to keep Heineken's distribution channel while
preventing other brewers’ entry into their dominant regions.

4. Competitors
Vietnam's beer market operates quite competitively, with many famous brands such
as Tiger, Heineken, Hanoi, Halida, Saigon, 333, etc., from low-end segments such
as draft beer to beer segment. The two main consuming markets are the Southern
(Ho Chi Minh) and the North. 50-60% of the beer market share belongs to 2 large
Vietnamese corporations, Sabeco and Habeco, and Heineken ranks third.
Compared to other competitors, the Vietnamese beer market revolves around
Sabeco and Heineken, two companies that dominate different segments with an
overwhelming market share. Over the past ten years, Sabeco and Heineken's total
market share in the Vietnamese beer market have never been below 63% in terms of
beer volume. In 2019, this figure was 73.1%, as reported by Euromonitor. This

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means Habeco, Carlsberg, Sapporo, AB Inbev, San Miguel have to accept sharing
less than 27% of the remaining market share.
Cơ cấu sản lượng bia tại Việt Nam theo công ty (2016)

5. Public
As for product promotion activities, Heineken's promotional activities are not as big
in Vietnam as in the world, but he always makes a deep impression on Vietnamese
customers every time Heineken appears. In addition to advertising products with

funny, unique, attractive, and sympathetic clips from consumers, Heineken has
focused on sponsoring sports (mainly tennis) for a long tie and cinema - fields that
serve everyone’s entertainment and relaxation.
Heineken's dedicated activity is #WeChooseGreen, constantly creating sustainable
values for Vietnam in its production and business activities during the past 28 years,
contributing to inspiring partners to practice together and sustainable development.

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Hoạt động #WeChoose Green của Heineken (2019)

Nguồn: Heineken Vietnam

6. Customer
When drinking beer, people choose not only based on quality but also on the image
of that beer in the market. Drinking bottled beer, connoisseurs prefer Heineken for a
simple "It can only be Heineken.” About quality, just to mention communication,
Heineken is still the only beer available by making an impression. And when it
comes to Heineken, we know that: "Heineken is not just beer, Heineken is also
passion, refreshment and memorable moments."
For the promotion strategy, intending to quickly leave a beautiful and memorable
impression in Vietnamese customers’ minds, Heineken has continuously strived to
promote and build an image from the logo design feat. Design a short slogan that

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implies performing unique advertising, making a brand through practical and
meaningful activities to pay attention to environmental management and energy
saving. These campaigns are always referred to by other major brands as a
"guideline" of the art of marketing.
III/ Macroenvironment
1. The demographic
Along with the accelerated development of the economy, the population is getting
younger and younger, and the Vietnamese consume more beer than ever before.
With more than 91 million consumers, the population growth rate is greater than
1%/year, estimated to 100 million people by 2025, and the beer market is hugely
favored in Vietnam. Besides, the average age of Vietnamese is 27.8 years old with
70% of the population under 40 years old; 31 million people are in the age group of
20-40, this is the most consuming age for beer and soft drinks in Vietnam, also
known as Generation Y and Millenials.
On March 22, Heineken held the Heineken Silver launch event, a new premium
beer product created by top Heineken brewers. Vietnam was selected as the first
destination for Amstel beer in the Southeast Asian market. According to
HEINEKEN, this is an essential market with strong growth and a young population.
Currently, the company is focusing 100% on product launch and exploitation of the
Amstel beer market in Vietnam before expanding to regional countries.

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2. The economic
Heineken's price strategy has been carefully calculated and utterly consistent with

the Vietnamese beer market’s current development and Vietnam’s economic
development in recent years. The potential Vietnamese market is shown that beer
consumption no longer appears only at parties but has become a reasonably steady
demand. Vietnam's per capita GDP is forecasted to reach the target of more than
$2,000 by 2020, boosting demand for beer products, mostly high-end and mid-end
beer, ensuring positive growth of the Vietnamese beer market in the future.
3. The Natural
The excellent performance of wastewater treatment and energy-saving
consciousness is one of the core factors that make Heineken beer successful in
Vietnam. Not only focusing on investment in product manufacturing, VBL always

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puts environmental protection first. VBL has invested over $3 million for the first
international standard wastewater treatment system in Vietnam. Besides, energy
saving is also invested by VBL by continuously improving to increase the capacity
of the equipment line and limit equipment that consumes electricity and oil.
The significant improvements in recent years have helped VBL increasingly assert
its brand with a wide range of products with beautiful designs, stable quality, and
hygiene and safety standards.
4. The technological
Practice applied at HEINEKEN Vietnam shows that the recirculating economic
model helps reduce emissions and creates value from waste. These initiatives
include:
●

Go to zero waste that requires landfilling - nearly 99% of waste or by-

products are reused or recycled:
●

Almost 100% of HEINEKEN Vietnam's glass beer bottles are recovered for

reuse before being recycled at the glass factory at the end of the product's life cycle.
Other materials such as cardboard, aluminum, plastic, and paper are all reused or
recycled;
●

Treating 100% of wastewater meeting grade A safety standards before being

safely returned to the environment;
●

4 out of 6 breweries of HEINEKEN Vietnam use heat energy from renewable

energy and biomass fuel, do not emit carbon;
●

Reducing 2,500 tons of CO2 emissions in logistics alone in 2018.

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5. Political and Social
Proposals to limit alcohol use Recently, facing the rapid growth in alcohol

consumption, there have been proposals to increase taxes and alcohol prices to
reduce consumption. If these proposals are approved, the implementation will
significantly affect the brewing industry. Increase particular consumption tax
Proposal to ban selling beer and alcohol Strict control on manual brewing activities
Limiting advertising of beer and alcohol products
However, the Vietnamese beer market also does not strictly regulate or restrict
foreign brewers’ opening to enter into joint ventures, such as Carlsberg, Asia Pacific
Brewers Ltd (Heineken, Tiger), SABMiller, because this is a massive contributor to
annual GDP.
6. Culture
Beer accounts for 94% of the current total alcohol consumption in Vietnam. This
drink has become a part of Vietnamese culture. Entering any restaurant or bar in
Vietnam, you will find that everyone drinks beer. Two factors help Vietnam's beer
market grow strongly. The first is the economy. Vietnam's economic growth rate is
at its most substantial level in the past seven years.
IV/ Marketing environment
Sustainable development is always the top goal of HEINEKEN globally as well as
HEINEKEN Vietnam. In particular, in times of volatility, sustainable development
is a guideline to help us overcome challenges and maintain our core values to
achieve long-term success. The development strategy of HEINEKEN globally in
general and HEINEKEN Vietnam, in particular, goes hand in hand with and
supports the United Nations Sustainable Development Goals (SDGs). Through

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innovative partnerships with stakeholders from private and government agencies,
focusing on areas where the Company can make the most outstanding contributions

to Vietnam. Male, HEINEKEN has contributed to the realization of 8 out of 17
global goals:
●

Taking care of humans promoting responsible drinking; Health, and safety;

Human resource development; Community support.
●

Preserve the Planet through the use of renewable energy, Minimize the

amount of water used, Treat waste towards No waste to landfill in production activities
●

Towards Shared Prosperity, Supporting SDG Goal 8 - Sustainable Economic

Growth and Employment

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Reference:
[1]

Dawson, J.A. (2015). The marketing environment. London: Routledge.

[2]

Hee Young Shin (2012). Bia heineken và việc áp dụng thành công các chiến

lược marketing tại thị trường Việt Nam [online] Available at:
[Accessed 18 Feb. 2021].
[3]

Ahead grow together(2018) Bia Heineken: Giá trị của một thương hiệu toàn cầu.

[online] Available at: (Accessed 18 Feb.2021)
[4]

Marketing Admicro. (2017). Phân tích chiến lược Marketing Mix của bia

Heineken tại Việt Nam. [online] Available at: [Accessed 18 Feb. 2021].
[5]

heineken-vietnam.com.vn.(2019) HEINEKEN Việt Nam kiến tạo giá trị bền

vững vì một Việt Nam tốt đẹp hơn. [online] Available at: [Accessed 18 Feb. 2021].
[6]

prezi.com. (n.d.). Chiến lược định vị Heineken. [online] Available at:

[Accessed 18 Feb. 2021].
[7]

heineken-vietnam.com.vn. (n.d.). Công ty bia hàng đầu thế giới HEINEKEN ra

mắt sản phẩm cao cấp mới tại Dinh Độc Lập: Heineken Silver - Nhẹ êm mà đậm chất.
[online] Available at: />

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moi-tai-dinh-doc-lap-heineken-silver-nhe-em-ma-dam-chat.html [Accessed 27
Feb. 2021].
[8]

ONLINE, T.T. (2018). HEINEKEN Việt Nam ra mắt dòng bia Amstel. [online]

TUOI TRE ONLINE. Available at: %E1%BB
%87t%20Nam%2C%20HEINEKEN%20s%E1%BA%A3n [Accessed 27 Feb. 2021].
[9]

Doanh Nhân Sài Gòn Online. (n.d.). Heineken Việt Nam - Doanh nghiệp sản

xuất bền vững số 1 Việt Nam. [online] Available at: [Accessed 27 Feb. 2021].
[10]

Việt Đức (2020). Heineken - Sabeco: Cuộc chiến ngôi vương. [online]

ZingNews.vn. Available at: [Accessed 17 Dec. 2020].

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