(Tiểu luận) external opportunities and threats of the companyopportunity

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<b>TRƯỜNG ĐẠI HỌC MỞ THÀNH PHỐ HỒ CHÍ MINHKHOA ĐÀO TẠO ĐẶC BIỆT</b>

<b>MID – TERM ASSIGNMENTTOPIC: STRATEGICS FOR TIGER BEER</b>

<b>COURSE: STRATEGIC MANGENMENTLecturer: ThS Huỳnh Kim Tôn Group 9</b>

Lê Thị Bích Thủy 2054012289 Nguyễn Hồng Lan 2054012151 Phan Minh Việt 2054012373 Nguyễn Triệu Vỹ 2054012391 Nguyễn Trần Quỳnh Như 2054012229

Thành phố Hồ Chí Minh, 20/08/2023

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<b>Table of Contents</b>

I. VISION, MISSION, OBJECTIVES AND STRATEGIES...3 II. EXTERNAL OPPORTUNITIES AND THREATS OF THE COMPANY...5 III. BUILD COMPETITIVE PROFILE MATRIX (CPM)...6 IV. BUILDING THE EVALUATION MATRIX OF EXTERNAL FACTORS (EFE)....7 V. IDENTIFY THE INTERNAL STRENGTHS AND WEAKNESSES OF THE ORGANIZATION...9 VI. IFE MATRIX CONSTRUCTION...9 VII. PREPARE APPROPRIATE SWOT, BCG, IE MATRIX. OUTLINE THE PROS AND CONS OF ALTERNATIVE STRATEGIES...13 VIII. STRATEGIC PROPOSED...16 IX. TIMETABLE...18

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<b>INTRODUCTION TIGER BEER</b>

In Vietnam, Tiger beer is one of the products of Heniken Vietnam - Tiger is one of the most loved beer brands. Products created by Vietnamese bartenders, exclusively for Vietnamese people. Tiger Beer has two main product lines: Tiger Blue Lager and Tiger Silver Crystal.

Tiger Soju Infused Lager: Launched in April 2023, a new premium beer line with a signature refreshing lager and a smooth sweet soju aftertaste. Tiger Soju Infused Lager is inspired by the unique culture of Korea.

<b>I.VISION, MISSION, OBJECTIVES AND STRATEGIES.Vision: To be a leading, proud & responsible brewer in Vietnam</b>

<b>Mission: Tiger is committed to bringing to the community top quality</b>

beer and beer with its own respect, love and high responsibility for human life and society.

Sustainable and responsible business. Heniken products including Tiger pursues the commitment of “Vì một Việt Nam tốt đẹp hơn”, and has been honored by the Vietnam Chamber of Commerce and Industry (VCCI) in the

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HO CHI MINH CITY OPEN UNIVERSITY

Top 3 Most Sustainable Manufacturing Enterprises in Vietnam. (in the manufacturing sector) for 6 consecutive years from 2016 to 2021. Become the leading symbol of belief in Vietnam about nutrition and health products serving human life.

Sustainable development strategy is one of the strategies that businesses pay special attention to and focus on. Tiger beer products are committed to develop with the global

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<b>II.EXTERNAL OPPORTUNITIES AND THREATS OF THE COMPANYOpportunity</b>

Beer is a popular alcoholic beverage in Vietnam.

Vietnam ranks third in Asia in terms of average alcohol consumption per person.

Diversified product lines to suit the needs and preferences of Vietnamese consumers such as Tiger Crystal, Tiger Radler, Tiger Black, Tiger White. Total retail sales and industry revenue will increase by 17.5% in 2022. A diverse media network in Vietnam tends to develop such as TikTok, Instagram, etc.

Vietnam has a golden population structure, rapidly increasing income, high demand for entertainment and tourism, creating favorable conditions for the beer industry to develop.

Vietnam is the largest beer consuming country among 11 countries in Southeast Asia, with beer consumption as of 2022 is 3.8 million liters/year, accounting for 2.2% of the world market.

Vietnam's population is increasing at an average rate of 1.14%/year.

Vietnam beer market has fierce competition from big players such as Sabeco, Habeco, Carlsberg.

Vietnamese consumers tend to switch to low-alcohol or non-alcoholic beverages for reasons of health and traffic safety.

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High cost of beer production due to rising prices of raw materials such as barley, hops, water

Prices escalate, consumers tend to tighten spending.

The excise tax policy for beer is higher than that of other beverages. In Vietnam, alcohol is one of the top 3 causes of increased traffic accident rate among men aged 15 to 49.

The price of input materials such as barley has increased

<b>III.BUILD COMPETITIVE PROFILE MATRIX (CPM)</b>

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Based on CPM analysis, Tiger is the strongest beer brand compared to the other two beer brands, Sabeco and Sapporo with a total score of 3.55 with positive strengths: Brand reputation, product quality, marketing. On the other hand, Sabeco is a competitor that needs to be cautious when reaching 3.48, closely following Tiger and having the same dominance with the following factors: Brand reputation, product quality, price competitiveness , marketing. The competitor with less favorable competitiveness compared to Tiger and Sabeco is Sapporo with a total score of 3.17 with relative strengths in: Brand reputation and product quality. Therefore, Tiger needs to have strategies to overcome the weaknesses as well as strengthen the strengths to help the brand become more and more trusted beer brand in Vietnam in particular as well as internationally. .

To be more specific, the most important factor among these brewers is the ability to compete on price with a weight of 0.16, with Sabeco reaching a rating of 4; Tiger and Sapporo have ratings of 3 and 2 respectively. From this, it can be drawn that in the Vietnamese market in particular, customers prefer to choose products with cheaper prices, but not because of these factors. others are overlooked.

The second most important factor with a weight of 0.14 at the same time is: Brand reputation and product quality. Both Tiger and Sabeco have a rating of 4. This is a strong point for these two brewers in continuing to maintain strategies that strongly target consumer psychology and reliability. However, with Sapporo, this beer company needs to pay more attention and have solutions if it wants to survive in the Vietnamese market for a long time.

<b>IV.BUILDING THE EVALUATION MATRIX OF EXTERNAL FACTORS (EFE)</b>

EFE MATRIX

OPPORTUNITIES ^Weigh_t ^Ratin_g ^Weighte_{d Score}

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1 Beer is a popular alcoholic beverage in

2 Vietnam ranks third in Asia in terms of average alcohol consumption per

3 Diverse product lines to suit the needs and preferences of Vietnamese consumers such as Tiger Crystal, Tiger

Radler, Tiger Black, Tiger White.

4 Total retail sales and industry revenue

will increase by 17.5% in 2022. ^0.07 ³ ^0.21 5 The diverse media network in Vietnam

tends to develop such as TikTok,

6 Vietnam has a golden population structure, rapidly increasing income,

high demand for entertainment and tourism, creating favorable conditions

for the beer industry to develop.

7 Vietnam is the largest beer consumer among 11 Southeast Asian countries, with beer consumption as of 2022 at 3.8 million liters/year, accounting for

2.2% of the world market.

8 Vietnam's population is increasing day by day, increasing by 1.14%/year on

THREATS ^Weigh_t ^Ratin_g ^Weighte_{d Score} 9 Vietnam beer market has fierce

competition from big competitors such

as Sabeco, Habeco, Carlsberg ^0.08 ⁴ ^0.32 1

0 ^{Vietnamese consumers tend to switch}to low-alcohol or non-alcoholic beverages for health and traffic safety

reasons

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1 due to the increase in the price of raw^{The cost of beer production increased}

materials such as barley, hops, water ^0.07 ² ^0.14

4 ^{In Vietnam, alcohol is one of the top 3}causes of increasing traffic accident rates among men aged 15 to 49.

5 ^{The price of input materials such as}barley has risen ^0.07 ¹ ^0.07

<b>V.IDENTIFY THE INTERNAL STRENGTHS AND WEAKNESSES OF THE ORGANIZATION</b>

Price is higher than other beer

brands Vietnam's beer market in 2021 at^{Held the largest portion of} 44.4%

Highly dependent on the

domestic market ^{Many marketing campaigns have}strong appeal, enhance brand recognition

There is a big difference in selling

price between selling points ^{One of the most chosen brands in}urban areas. Lack of rigor in recommending

beer consumption ^{A cohesive corporate culture}environment Not well developed in the low

segment market ^{Outstanding quality products,}diverse product segments Price is higher than other beer

brands ^{Owning non-alcoholic beer}products, suitable for many Vietnamese people's preferences

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<b>VI.IFE MATRIX CONSTRUCTIONIFE MATRIX</b>

<b>STRENGTHS</b> ^Weigh_t ^Ratin_g ^Weighte_{d Score}

1 Held the largest portion of Vietnam's

beer market in 2021 at 44.4% ^0,13 ⁴ ^0.52 2 Many marketing campaigns have

strong appeal and enhance brand

6 Own a beer with low alcohol content (Tiger Soju), suitable for many Vietnamese people's preferences

<b>WEAKNESSES</b> ^Weigh_t ^Ratin_g ^Weighte_{d Score}

7 The price is higher than other beer

8 Huge price difference between

distribution systems and retail points. ^0,12 ¹ ^0,12 9 Highly dependent on the domestic

0 consumption^{Lack of rigor in recommending beer} ^0,05 ² ^0,10 1

1 market^{Not well developed in the low segment} ^0,06 ² ^0,12

Based on the IFE matrix analysis, Tiger's total weighted score was 2.9 and higher than the overall average score of 2.5. It can be seen that Tiger has a strong internal position. However, Tiger also needs to improve a few more factors to strengthen its position in Vietnam.

Specifically, held the largest portion of Vietnam's beer market (in 2021) at 44.4% is considered the most important factor for success in the industry when assigned a weight with a value of 0.13. This is a factor that will help Tiger maintain its competitive position with other competitors (Sabeco, Sapporo).

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However, the factor of large price difference between distribution systems and retail points (rating level is 1) has a negative influence on Tiger. Tiger needs to plan a strategy to strictly control selling prices at points of sale because unstable prices will easily lose consumer confidence in purchasing as well as create opportunities for other beer brands to have low prices. than.

<b>SWOT MATRIXStrength</b>

Held the largest portion of Vietnam’s beer market in 2021 at 44.4%

Many marketing campaigns have strong appeal, enhancing brand recognition.

One of the most chosen brands in urban areas.

Exceptional quality products, diverse product segments Owning a beer with low alcohol content (Tiger Soju) is suitable for Vietnamese people

There is a big difference in selling price between points of sale

Lack of rigor in recommending beer consumption Not well developed in the low segment market

Beer is a popular alcoholic beverage in Vietnam

Vietnam ranks third in Asia in terms of average alcohol consumption per person. Diverse product lines to suit the needs and preferences of Vietnamese consumers such as Tiger Crystal, Tiger Radler, Tiger Black, Tiger White Total retail sales and industry

Vietnam beer market has fierce competition from big players such as Sabeco, Habeco, Carlsberg

Vietnamese consumers tend to switch to low-alcohol or non-alcoholic beverages for reasons of health and traffic safety. The cost of beer production increased due to the increase in the price of raw materials such as barley, hops, water

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revenue will increase by 17.5% in 2022.

The diverse media network in Vietnam tends to develop such as TikTok, Instagram, etc. Vietnam has a golden population structure, rapidly increasing income, high demand for entertainment and tourism, creating favorable conditions for the beer industry to develop.

Vietnam is the largest beer consumer among 11 Southeast Asian countries, with beer consumption as of 2022 at 3.8 million liters/year, accounting for 2.2% of the world market. Vietnam's population is increasing rapidly, increasing by 1.14% per year on average

Prices escalate, consumers tend to tighten spending The excise tax policy for beer is higher than that of other beverages.

In Vietnam, alcohol is one of the top three causes of an increase in the rate of traffic accidents among men aged 15 to 49.

The price of input materials such as barley soars

SO S1,S6 +O1,O2 => MARKET PENETRATION . Vietnam is one of the countries with a large alcohol consumption market in Asia. Besides, beer is one of the popular drinks here. Therefore, when launching a new product, Tiger should seek to increase market share for the new product through marketing efforts specifically Tiger Soju. Tiger will cooperate with GoGi to carry out a beer promotion program. Bus banner advertising in Ho Chi Minh City. Advertise through the famous TikToker GonPink.

ST S6 + T2 => Related Diversification. In response to the trend of using low-alcohol products of consumers in Vietnam today. Tiger owns a new product, Tiger Soju, which has a low alcohol content that is suitable for the current trend.

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W O

W2 + O6 => Market Penetration. Vietnam has an increasing population structure and increasing income, and the fact that Tiger is still dependent on the domestic market also contributes to reducing other costs when producing and serving

domestically. Therefore, entering the market and promoting the new product widely will contribute to a higher brand awareness of the new product.

WT W3 + T5 => Forwward Intergration. Strengthen price control with retailers, stabilize prices. Encourage customers to buy directly from a distributed or franchised agent such as GO,

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Tiger stele that falls into box IV matches the Market Penetration

<b>VII.PREPARE APPROPRIATE SWOT, BCG, IE MATRIX. OUTLINE THEPROS AND CONS OF ALTERNATIVE STRATEGIES.</b> 2 Vietnam ranks third in Asia in

terms of average alcohol consumption per person.

3 Diverse product lines to suit the needs and preferences of Vietnamese consumers such as Tiger Crystal, Tiger Radler, Tiger Black, Tiger White.

4 Total retail sales and industry revenue will increase by 17.5% in 2022.

5 The diverse media network in Vietnam tends to develop such as TikTok, Instagram, etc.

6 Vietnam has a golden population structure, rapidly increasing income, high demand for entertainment and tourism, creating favorable conditions for the beer industry to develop.

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with beer consumption as of

9 Vietnam beer market has fierce competition from big players such as Sabeco, non-alcoholic beverages for reasons of health and traffic safety.

11 The cost of beer production increased due to the increase in the price of raw materials such as barley, hops, water

12 Prices escalate, consumers

tend to tighten spending. ^0.06 ³ ^0.18 ² ^0,12 13 The excise tax policy for beer

is higher than that of other beverages.

14 In Vietnam, alcohol is one of the top three causes of an increase in the rate of traffic accidents among men aged 15 to 49.

15 The price of input materials

such as barley soars ^0.07 ¹ ^0.07 ³ ^0.21

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3 One of the most

6 Own a beer with low alcohol content (Tiger Soju), suitable for many Vietnamese people's preferences

7 The price is higher than other beer

11 Not well developed in the low segment market

<b>Conclusion: The total priority scores of the two strategies: Market </b>

penetration and Related Diversification are 5.63 and 5.11 respectively. Thereby, we can see the appropriate market penetration strategy to implement.

<b>Market PentrationAdvantage</b>

Looking for increased market share for new product lines such as HEINEKEN 0.0, Lauru Smooth, etc.

Increased sales for HEINEKEN.

It is difficult to change the customer's habit of using the product.

Sales will grow slowly for new products relative to the total

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