Marketing plan for SaiGon special brand of SABECO in VietNam

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TRNG ĐI HC M TP.HCM
HO CHI MINH CITY OPEN UNIVERSITY
UNIVERSITEU LIBRE DE BRUXELLES
SOLVAY BRUSSELS SCHOOL
ECONOMICS & MANAGEMENT
MMA7
Author: DO MINH TRUNG
VAN HOAI THU
MARKETING PLAN
FOR SAIGON SPECIAL
BRAND OF SABECO IN VIETNAM




MASTER PROJECT
MASTER IN MARKETING AND ADVERTISING

HO CHI MINH CITY
(2014)


1

COMMITMENTS


We, Do Minh Trung and Van Hoai Thu commit that we have done this
project by ourselves based on the information collected either from The
public’s or SABECO’s sources.

This paper is designed only for the academic purpose of the completion of
our Master in Marketing and Advertising. It is not expected for any other
uses.


………………………………… ………………………………







Đ Minh Trung Văn Hoài Thu

2

ACKNOWLEDGEMENTS


This final project was completed with the guidance of Mr. Le Minh Duc,
thank you very much for your time and enthusiasm to give us comment and
direction. Take this opportunity, we would like to send our special thanks to
family, our colleagues and friends for support and dedicated to help we
complete this project. The result and the feasibility of this project in reality
are motivating us for knowledge that we gain during the course.
3

TABLE OF CONTENTS
COMMITMENTS 1
ACKNOWLEDGEMENTS 2
EXECUTIVE SUMMARY 4
LIST OF ABBREVIATIONS 5
INTRODUCTION 6
I. Company Overview 7
1. Vision 7
2. Mission 7
3. History of SABECO 7
II. Market overview 10
III. SABECO and Saigon Special Brand 15
1. SABECO (Saigon Beer – Alcohol – Beverage Corporation) 15
2. Saigon Special Brand 16
2.1 Brand characteristics 16
a. Target segment 16
b. Positioning 16

c. Differentiation 16
d. Saigon Special brand - SWOT matrix 17
2.2 Competition 18
2.3 Analyze of the Marketing Mix Strategy of Saigon Special 19
2.3.1 Product 20
2.3.2 Pricing 20
2.3.3 Place 23
2.3.4 Promotion 26
 Pull Strategy 26
 Push Strategy 26
4. Marketing activities in 2012 28
5. Achievements 31
5.1 Internal data reflecting on consumption 31
5.2 External data from market research companies 31
IV. Recommendations and Implementation plan for 2014 34
2.1 Objective 36
2.2 Goal 36
SAIGON SPECIAL - MARKETING PLAN 2014 41
RUNNING TIME FOR THE 2014 PLAN 42
References: 43

4

EXECUTIVE SUMMARY
Saigon Beer-Alcohol-Beverage Joint Stock Corporation (SABECO) has
been the well- known and familiar name on beer market for more than 35
years with the first product, Saigon Export, and later on they developed
Saigon 333, Saigon Lager and lately in 2000 Saigon Special. There are
many internal and external forces that influence SABECO strategies on their
developing way. The success of the Saigon Beer during the pass time has

been relied on a lot of factors, but it can be said that the most importance in
those is the effective marketing strategy has been applied by SABECO.
This project was written after reviewing and analyzing the Vietnamese beer
market which has been grown stably and rapidly for recent years. The beer
industry is expected to post an annual volume growth rate of 13% 2011-15
and 8% 2016-25. The overall objective of this project was to evaluate the
market potential of SABECO in term of analyzing SWOT matrix. Saigon
Special is a new brand of SABECO that is aiming at the target segment of
people who tend to drink premium beer. Although at present SABECO is the
leading beer producer with the market share accounting for 34% in 2012
(BMI 2013), however the launching of its new brand – Saigon Special was
not so successful because SABECO lacked of an effective marketing plan
especially focusing on promotion activities for this new brand.
By analyzing SWOT matrix an marketing mix of Saigon Special brand, some
weaknesses of promotion strategy are identified such as: on the way to
build up the brand awareness, Saigon Special did not do much as special
as its name in order to outstanding of its relative, some marketing activities
of Saigon Special still put on the shoes of SABECO. Saigon Special is
nearly loose awareness of consumer in the premium segment, because the
lack of investment into the marketing activities especially focusing on
promotion.
In exploring the weakness point of the product, Saigon Special, we have
given some recommendations to grow market share and market size by
investment into sales, marketing and PR activities, prioritize promotion
activities to create the customer need.
1/ For the pull strategy: Increase brand awareness (for short term) and
setting a strong brand identity and Trade mark (for long term)
2/ For the push strategy: Strongly invest for retailer in terms of point of sales
material (POSM), display (for short term) and invest on distribution system
in both policy and display, especially at point of sales (for long term).

5

LIST OF ABBREVIATIONS


- SABECO: Saigon Beer – Alcohol – Beverage Corporation;
- HABECO: Hanoi Beer and Beverage Corp;
- MoIT: Ministry of Industry and Trade;
- BMI: Business Monitor International ;
- APB: Asia Pacific Breweries Limited;
- VBA: Vietnam Beverage Association.





6

INTRODUCTION
Beer has been a popular and favorite drink for a long time. It is considered
as an associate companion in the parties, birthdays, weddings…especially
for the males. Beer is not only a refreshment drink, but it has also been
considered as an intestinal excitation supporter. Beer can help to reduce the
blood pressure and prevent the eye kernel from blur. The moderate drinking
of beer is good for health and help to lengthen the life. Therefore the beer
volume has continuously increased all over the world in general and in
Vietnam in particular. In 2013, there are some prosperous signals in

Vietnamese economy but still many difficulties still remain. A lot of industries
face a big loss. However, in such situation, the domestic beer industry has
been seen as a bright mark with the annual increase of 10% and volume
reached around three billion of liters in 2013. The market research
organization Eurowatch has published the statistic number that averagely,
each Vietnamese person consumes thirty two liters of beer per a year.
Vietnam is the leading beer drinker in Asean area and ranks third in the
Asia, after China and Japan.
Seizing and understanding the market needs, the Saigon Beer-Alcohol-
Beverage Joint Stock Corporation (SABECO) has been the well- known and
familiar name for the domestic customers. After 35 years having appeared
in the domestic market, the SABECO brands exist in the consumers’ minds
are Saigon Lager (or Green Saigon- Sài Gòn Xanh), Saigon Export (Red
Saigon Sài Gòn ), Saigon Special and canned beer 333. Each brand
has its specific characteristics but they share the same intimate
distinguished taste. The success of the Saigon Beer during the 35 years has
been relied on a lot of factors, but it can be said that the most importance in
those is the effective marketing strategy has been applied by SABECO. In
addition, the new business concepts have been ceaselessly improved. They
are the strategies to develop the brands of SABECO and enhance the name
of Saigon Beer to a new high level not only in Vietnam, but also stretch out
in the world.
With the slogan “The yeast of success”, Saigon Special has more and more
affirmed its position and brand in the mind of the customers at the middle
and high income classes. In this paper, we have analyzed the marketing
and advertisement activities of Saigon Beer brands in general and Saigon
Special in particular to give the solutions and suggestions which will help
Saigon Special more developed and firmly positioned at the beer segment
for the customers at the middle and high income classes in the society in
the situation of the fierce competition with the big brand names like

Heineken, Saporo, …. Our solutions also contribute to the firmly keeping of
the number 1 of SABECO in the beer production and consumption in the
domestic market.
7

I. Company Overview
1. Vision
"To make the products of SABECO group become the top selected drinks in
Vietnam, have stable position in terms of brand awareness and reputation
regionally and internationally."
2. Mission
To develop Vietnamese Beverages with the world standard, promote
cultural cuisine of Vietnam; improve the quality of life through the provision
of the beverage products with high quality, safe and complementary
nursing; bring practical benefits to shareholders, customers, partners,
employees and society.
3. History of SABECO
SABECO (Saigon Beer – Alcohol – Beverage Corporation) is Vietnam
leading firm in Beer industry with about 90% of state - owned shares. After
over 100 years of construction and development, SABECO is now
Vietnam’s largest enterprises in the manufacturing field and beer industry.
Owning Vietnam first class beer brands namely: Saigon Beer, Beer 333 ,
SABECO has target customers at the age of 25-45 (core 30-40), socio -
economic components ABCDE (core B,C,D,E). SABECO’s Beers are mostly
for the average income class or to those who love traditional taste and
feeling.
For many years, SABECO got the annual growth rate over 20%, far
exceeding the average growth rate of 15% of the industry. However, in
2011, SABECO total output was about 1,200 million litters, a year -on -year
increase of 10%. This was the first year SABECO got the growth rate which

was only equal to the industry average (10%, according to MOIT report). It
is obviously that beside the impressive growth in many aspects, SABECO is
losing market share to the competitors. SABECO leading team is now
finding ways to increase sales and quantity, including: restructuring all Beer
Brands, rebuilding SABECO identity system, penetrating new markets such
as the North market, high class market
Milestone
Information
Period 1977 - 1988
 01/06/1977: Southern Wine Beer Company official
reception and management Brewery Cholon from
BGI Company and formed Saigon Brewery;
 United Enterprise 1981: Alcohol Beverages II was
converted from Southern Wine Beer Company;
8

 Saigon Brewery in 1988 became a subsidiary
under United Enterprise Alcohol Beverages II.
Period 1988 - 1993
 1989 – 1993: owned 20 branches across the
country;
 1993: became Saigon Beer Company with new
members:
- Saigon Ice Factory;
- Alcohol Plant;
- Mineral Water Plant DaKai;
- Joint Venture Carnaud METALBOX Saigon;
- Joint Venture Malaya Vietnam Glass for
producing glass bottle.
Period 1994 - 1998

 1994 – 1998: System reached 31 branches across
the country;
 1995: Saigon Beer Company established new
member which was Transportation Enterprise;
 1996: Received new members: Binh Tay Wine
Company;
 1996 - 1998 Founded the production company
associated with Saigon Beer members:
- Phu Yen Brewery;
- Phu Tho Brewery.
Period 1999 - 2002
 2000 Quality Management System by BVQI - ISO
9002:1994;
 2001 Quality Management System by BVQI - ISO
9001:2000;
 Founded more the production company
associated with Saigon Beer members:
- 2001 Beer Company Soc Trang;
- Henninger Brewery;
- Huong Sen Brewery;
- 2002 Joint Venture Beer Can Tho Company;
- Brewery Ha Tinh.
 Established depot in Nha Trang , Da Nang and
Can Tho.
2002 - present
 2003: established Corporation Beer - Alcohol -
NGK SABECO based Beer Company Saison and
9

receiving new members :

- Binh Tay Wine Company;
- Chuong Duong Beverages Company;
- Glass Factory in Phu Tho
- Trading and Servicing Beer - Alcohol - NGK
Saigon Company
 2004: Corporation Beer - Alcohol - NGK SABECO
moved to organization and operation as a parent -
subsidiary model following by the 37/2004/QD-
BCN of the Minister of Industry;
 2006: Completed a delivery system across the
country with 8 regional subsidiaries of SABECO;
 2007: Beer - Alcohol - NGK SABECO corporation
continuously grew rapidly with the mainstream
products, and new investments in various fields
and products;
 Currently Beer - Alcohol - NGK SABECO
Corporation has total 28 members.
(Source: www.SABECO.com.vn)

Figure 1-1: Several beer brands manufactured by SABECO
(Source: />hieu-bia-viet-c52a507517.html)
10

II. Market overview
In recent years, the Vietnamese beer market has made a rapid and stable
growth. According to 2011 survey by major Japanese brewer Kirin Holdings
Co, Vietnam, with a large population getting wealthier; no religious
prohibitions against alcohol, a number of highly competitive foreign and
state-owned breweries aggressively competing for market share is
extremely bright market for beer and alcohol drinks. In 2011, Vietnam was

among the top 25 beer-consuming nations in the world. It is estimated that
one third of Vietnam's population of 90 million consumes beer. Total
consumption continues to increase with strong growth at just fewer than
10%, driven by strong economic growth and spending power, aggressive
competition and expansion of foreign investment and state-owned
breweries. In 2009, the Ministry of Industry and Trade (MoIT) approved a
master plan to develop the domestic alcohol, brewery and beverage
industry to 2015 and beyond. Under the plan, the industry is expected to
post an annual volume growth rate of 13% 2011-15 and 8% 2016-25.

Figure 1 – 2: Annual Beer Production Volume in Vietnam
(Sources: Kirin, APB, Habeco, VBA)
Note for the figure:
* – Estimate – Vietnam’s Ministry of Industry & Trade growth plan for
the beverages sector 2009
# – Estimate – Vietnam’s Ministry of Industry & Trade forecast –
reported 19/1/12
In 2012, Vietnam beer market volume was the third biggest in Asia, after
China and Japan, up from 8th position in 2004. 98% volume share of the
total official alcoholic drinks industry in Vietnam belonged to beer. The beer
11

market has a historical growth rate of 9 – 11% & forecast to grow at 12 –
15% until 2015 and 8% 2016-25. The population of “primary drinkers” (20 –
40 years old) forecast to grow by 5%, equivalent to 1.7 million additional
consumers, by 2015. According to Euro monitor International, Vietnam retail
beer sales probably rose 20% to 96 trillion dong (US$4.6 billion) in 2012.
The average beer consumption of Vietnam was about 27.53
litter/capita/year in 2010 and 30 litter/capita/year in 2011 (according to
MoIT). Those figures were also still well below other Asian countries, such

as South Korea (37 litters/capita/year), Japan (47 litters/capita/year) and
China (33 litters/capita/year) in 2011.

Figure 1 – 3: Vietnam annual per capita beer consumption
(Sources: Kirin, APB, Habeco, VBA)
In 2012, Vietnamese people drank more beer during the economic
downturn. Revenues of two major brewers in the country, Hanoi Beer and
Beverage Corp (Habeco) and Saigon Beer – Alcohol – Beverage
Corporation (SABECO), increased attractively. In the first half of 2012,
Habeco reported revenues of VND 770.9 billion (US$37 million), a 28.2%
year-on-year increase. The company sold 30.6 million liters of canned beer,
up 72 % over the same period previous year; and 17.3 million liters of
draught beer, up 27.5 %. It earned profits of more than VND 2,550 billion,
an increase of 10.3 %. Meanwhile, Habeco profit increased 9% over last
year.
Although the growth rate was strong, the per capita volume consumption in
Vietnam was still not particularly high, at just about a third of the US,
consequently leaving room for further growth. In terms of a regional
12

comparison, beer consumption per capita in Vietnam was also still well
below other Asian countries, such as South Korea, Japan and China.

Figure 1 - 4: Global – Annual Beer Consumption per capita (litter)
(Sources – Kirin, APB)


Figure 1 - 5: Asian Annual Beer Consumption per capital (litter)
(Sources – Kirin, APB)
Despite the growing presence of multinationals in the market, local firms still

dominate. The sector remained highly-regionalized, Habeco (Hanoi Alcohol
Beer and Beverage Company) has been dominating the north of the country
and SABECO (Saigon Beer Alcohol Beverage Corporation) has been
controlling in the south. SABECO and Habeco are gaining an impressive
34% and 19% of the local beer market respectively. It is not surprising,
therefore, that domestic brands are continuing to lead overall sales in the
Vietnamese beer market.

13

The market dominance of domestic brewers remains a major obstacle for
foreign brewers to tap into the sector’s potential. However, on the flip side,
the dominance of domestic beer producers in their respective regions
emphasizes the less-competitive nature of the regional beer markets and
partly explains the sector’s higher-margin operating environment. With
growing consumer awareness and receptiveness of foreign brands, there is
certainly potential for foreign brewers to make big waves across the sector.


Figure 1 -6: Vietnam beer sales
(Source: BMI, Q3-2013, Vietnam food & drink report)

Figure 1 - 7: Existing beer brands in Vietnam
(Source: collected by writer from Internet)
0
50,000,000
100,000,000
150,000,000
200,000,000
250,000,000

300,000,000
2010 2011 2012f 2013f 2014f 2015f 2016f 2017f
VNDmn
Beer sales
14

Vietnam beer market SWOT analysis:
The young and affluent
Vietnamese consumers, are
interested in brands;
therefore well-known
Western products supported
by huge investment in
marketing and promotions
tend to have highly
successful launches.
Alcoholic drinks are widely
consumed and have gained
popularity in current years.

With GDP growth averaging
7.1% annually between 2000
and 2011, Vietnam has been
one of the fastest-growing
economies in Asia in recent
years.
S
O
Accession to the WTO, in
January 2007, will continue to

benefit Vietnamese
exporters, with the continuing
removal of market barriers
and trade restrictions set to
increase competition.
A growing tourism sector is
fuelling interest in
convenience categories, in
addition to sub-sectors such
as soft and alcoholic drinks.
With consumers' rising
incomes, there are
opportunities for premium-
branded products.
There are wide income gaps
between urban and rural
areas, and local consumption
patterns vary significantly
according to income.
Vietnam's infrastructure is still
weak (transportation).
Establishing separate
breweries in different regions
is costly but remains one of
the best strategies to
overcome the lack of
infrastructure.
W
T
Becoming a member of WTO

may result in smaller
companies unable to cope
with the increased
competition being forced out
of business.
Raised raw-material costs
threaten profitability in a
competitive market in which
higher prices cannot easily
be passed on to consumers.


15

III. SABECO and Saigon Special Brand
1. SABECO (Saigon Beer – Alcohol – Beverage Corporation)
According to a research of SABECO in 2010, within 36 biggest cities in
Vietnam, there were 4 SKUs of this beverage company on the list top ten
most popular beer SKUs. They were Saigon Special, Saigon Lager, 333,
and Saigon Export with 1.5%, 5.5%, 16%, and 23.1% of volume share
equivalent. In total 2010 and 2011, SABECO dominated the market with
45.4% and 47.5% equivalent in volume share

Figure 3 – 1: Top beer brands in Vietnam in 2010 in 36 biggest cities
(Source: Internal data from SABECO)

16


Figure 3 – 2: Vietnam beer market share

(Source: 2011, Euromonitor)
2. Saigon Special Brand
2.1 Brand characteristics
a. Target segment
- Vietnamese urban areas;
- People who tend to drink premium beer;
- Both male and female aged from 23 – 40 years old;
- White collar;
- Middle income to high income people.
b. Positioning
- Premium beer for: young, dynamic, and successful business people;
- The first Vietnamese beer claiming is a premium beer.
c. Differentiation
The first Vietnamese beer claiming is a premium beer.





17

d. Saigon Special brand - SWOT matrix

Endorsement by strong
corporate brand;
Wide distribution channels;
Loyal employees  stable
quality.

S

O
Vietnamese beer
consumption has been
increasing despite of the
economic downturn;
Demanding of premium beer
raise up;
Young and affluent
customers are willing to try
new products from high
reputation corporations;
Vietnam has a young
population which is average
28 years old which can
increase market size;
A potential multinational
corporation partnership would
take advantage on
management style,
technology, etc. for the brand
development.
Weak brand identity;
Inconsistent from creating
strategy to implementing in
order to outstanding of other
brand of SABECO.


W
T

Fluctuating raw material
costs threaten profitability in
a competitive market in which
higher prices cannot easily
be passed on to consumers;
Significant expansion plans
from Carlsberg, APB and
Habeco could threaten
SABECO’s brands, including
Saigon special brand.


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2.2 Competition


Imported
Domestic
Premium
Coors light, Budweiser, Bud
light, Corona, Heineken…
Heineken, Sapporo,
Carlsberg
Average
Beer Laos, Angkor…
Hanoi, Saigon export, 333,
Tiger, Tiger light, Tiger
Crystal…
Popular

Huda Hue, Bivina, BGI,
Saigon Laser, Ben Thanh …

Direct competitors: Heineken and Sapporo
 Heineken

P1: Product
Heineken is a Pilsner beer and it is
produced under the higher quality
standards and using only natural
ingredients, which makes it light, mild and
easy to drink.
- Ingredients: No Additives; No
Preservatives; No Fat; Vitamins B 1, 3
and 11; Minerals ; Antioxidants, malts
and houblon.
- 3 SKUs: can and bottle 330ml; STR
Bottle.
P2: Price
- Bottle in case: 324.300 VND/24
bottles
- Can in pack: 391.000 VND/24 cans
- STR bottle: 55.000 VND/bottle (only
bought in bars and luxury
restaurants)
Heineken is setting up the selling price
higher than the others; targets to the
customers who have high income, are
successful and confident.

P3: Place
- Heineken’s distribution types are quite
diversified and very easy-to-buy,
customers can buy its products
anywhere, from a wholesaler to the
retailer, through 2 typical distribution
channels: traditional and modern
channels.
• GT: bars, pubs, clubs, HoReCa
• MT: supermarkets, convenience
stores
- Distribution Channel Models:
1/ Producer  Retailers  Consumers
2/ Producer  Wholesalers  Retailers 
Consumers

P4: Promotion
Pull Strategy
PR activities: advertising clips,
impressive TVC, events (Heineken
night with dance music events at
Dana Beach Club (Da Nang) and
Nexttop Club (Hanoi); Heineken
Countdown Party; “Crack the case”
Flash mob in Vincom center HCMC)…
Push Strategy
- Sales Promotion
- Sponsors for sport tournaments
- SCR activities: Enjoy Heineken
Responsibly (EHR) Campaign

- PGs at bars and restaurants.


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 Sapporo

P1: Product
3 SKUs
- Gold can: 330ml, alcohol 5%
volume;
- Glass bottle: 330ml, alcohol 5%
volume;
- Silver can: 650ml, alcohol 5.2%
volume.
P2: Price
- Gold can: 380,000 VND/24
cans;
- Glass bottle: 380,000 VND/24
bottles;
- Silver can: 700,000 VND/12
cans.
Sapporo’s price is high; targets to
the customers who have high
income, are successful and
confident.
P3: Place
- GT channel;
Horeca: restaurant, bar, pub,
club, street restaurant …

- MT channel;

P4: Promotion
Pull Strategy
- TVC; print ad; billboard; press;
online (social media)…
Push Strategy
- In store sampling; promotion (by
a small carton will have a luxury
glass); POSM; PGs at
restaurants; CSR (Full
Scholarships for selected
students)

2.3 Analyze of the Marketing Mix Strategy of Saigon Special
In any business market, the brand has always been the core factor
determining the success of the business. Building a strong brand positioned
firmly in the minds of customers is a difficult problem and surely it is not an
easy task, especially in the context of Vietnamese beer market when more
and more famous beer brands of the world appear (currently there are over
30 international brands of beer available in Vietnam).
As a leading domestic brand in Vietnam’s beer market, with total
consumption volume in 2013 reaching 1,310 billion liters (26.5% higher in
comparison of those in the same period) - SABECO company is confident in
positioning their brand by adopting the appropriate marketing mix strategy
which is the key to implement strategic positioning, contribute to the unique
and distinctive beer namely SAIGON SPECIAL.

20

2.3.1 Product
a. Quality
Saigon Special beer products with 100% malt ingredients (no rice), are
produced on the most advanced technological line in the region and
fermented by a traditional technology for a long time to create a delicious
and original flavor different from the other beer on the market. Besides,
SABECO is also successful in applying the core components into their
products. Compounds of beer with ingredients extracted from houblon plant
(hops) have anti-clotting effects, prevent cancer, and reduce the growth rate
of heart disease and cancer.
Basic Manufacturing standard TCCS 4: 2008

b. Design
- Packaging: packed in the green glass bottle, 20
bottles/ case and 24 bottles/box
- Alcohol: 4.9% vol.
- Capacity: 330 ml.

c. Message

SAIGON SPECIAL - “THE YEAST OF SUCCESS”

- Bottles of Special Beer have been produced and widely distributed
throughout the country, especially in the big cities such as Ho Chi Minh City,
Hanoi, Da Nang, Can Tho, Nha Trang
- Saigon Special is a special type of beer specializing for youthful, dynamic
and successful consumers.
- Saigon Beer Products do not cause hydrophilic and headaches after

drinking.
2.3.2 Pricing
In the context of the fluctuational and changable Vietnamese economy and
regions, higher inflation leads to the rise of the price of raw materials since
2008, all the price of the beer products has been raised as well, not only
those of SABECO’s products but also for the beer of the whole domestic
market. Although applicable measures to control rising production costs
have been implemented, but due to the high input costs, selling price of
Saigon Beer has been increased since 2008 until now.
The pricing of the product has been applied according to the valuation
method based on costs. Costs account for about 75% of the total net price,
21

this number tends to be increased more and more because of the sharply
higher raw material prices in comparison to other factors.

From the fact that the selling price influenced by the price and cost of raw
materials such as malt, rice, water, hops, , With many options analyzed
for choosing the best final price, SABECO has fixed the price as the table
below, this price also has applied the discounts and concessions as before
Prices are applied according to the process: the product has been
manufactured, distributed from affiliate companies to distributors, then to
the agents and to the end users finally.

Table 3 - 2: Selling Price of SABECO Beer in the First Quarter of 2013




(Price unit: VND)

COMPANY
SIZE
CAPACITY
(ml)
OLD PRICE
NEW PRICE

SABECO
333 ( 24 cans in pack)
330
186.000
213.900

Saigon Export ( 24 bottles in case)
450
160.000
184.000

Saigon Lager ( 24 bottles in case)
450
145.000
166.750

Saigon Special ( 24 cans in pack)
330
258.400
304.000

Saigon Special ( 24 bottles in case)
330

185.000
212.750

VIETNAM
BREWERY
LTD. (VBL)
Heineken (bottle)
330
282.000
324.300

Heineken (can)
330
340.000
391.000

Tiger (12 big bottles in case)
640
115.000
132.250

Tiger (can)
330
235.000
270.250

Bivina (can)
330
137.000
157.550

Larue (can)
330
168.000
193.200

Larue Export ( 24 bottles in case)
355
216.000
248.400

Larue Export ( 20 bottles in pack)
355
180.000
207.000

Larue Export ( can)
330
150.000
172.500

BGI ( 20 bottles in pack)
450
140.000
161.000

Coorslight ( 24 bottles in case)
330
350.000
402.500

SANMIGUEL
Samiguel ( 24 bottles in case)
330
244.000
280.600

Samiguel ( 24 cans in pack)
330
187.000
215.050

SAB MILLER
Zorok
330
160.000
184.000




(Source: Real survey)

22

Table 3 - 3 : Analyzing of the consumers in Vietnam’s Market

Low Income Group
Medium Income Group
High Income Group
Personalities
Traditional
Self - confident
Self - confident;
Optimistic
Family - oriented
Optimistic
Strong character
Financial worries
Ambitious
Professional self - expression
Financial
Ability
Low income
Medium Income
High Income
( higher 5 million VND per
month)
Low and unstable
salary
(below 2 million VND

per month)
Stable salary
( from 2 to 5 million
VND per month)
Successful person
Need of
drinking beer
Find comfort
Find comfort
Show -off social position
Chat with friends
for fun
Chat with friends
for fun
Business relationship
Beer Addicted
Like to show
their own personality
Enjoy the life




Vietnam is a developing country with the higher & higher living standards of
the peoples. According to Dantri.com.vn, in 2013, GDP growth is expected
to reach 5.4%, per capita income is about $ 1,960. It is expected that GDP
will be increased by 5.8% in 2014 and 2015 increased by 6%.
With the development of the economy, we can be confident about the
growth of the potential customers in the middle–high-ending segment.
Especially, for the potential beer consumption market like Vietnam (Vietnam

belongs to the biggest beer consuming group in the world - the result of
investigation department of Kirin Holdings - big and famous Japanese beer
companies), it will push the demand for consuming of beer products,
especially for the middle – high beer products, ensuring the deep growth of
the Vietnam beer market in the future, based on tinmoi.com.vn.
Basing on the actual survey of beer price sold in the market and table of
analyzing beer consuming target group at Vietnamese market, with the
pointed segments for Saigon Special, the segment pricing is reasonable.
For loyal customers in the medium – senior segment, drinking beer is not
just beer, but they also want to find out the satisfaction, the comfort, the
desire to express themselves. So they are willing to pay more to have more
opportunities to express themselves and demonstrate social status of
successful people.
Besides, in Vietnam, wherever and whenever beer has been the most
popular beverages. Usually, people think that drinking too much beer is
more harmful to the health. However, drinking moderate amounts of beer
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has a very good effect in the prevention of cardiovascular diseases. In
addition, beer also has some other benefits such as curing colds and sore
throat, insomnia, stomach pain, weight loss, During the Tet holidays, beer
canned products are very popular to use as gifts for friends, partners and
relatives. Therefore, the current price of Saigon Special labels has been
accepted and supported by customers.
2.3.3 Place

SABECO
DISTRIBUTORS
WHOLESALERS
RETAILERS
TRAVEL COMPANIES
HOTELS, RESTAURANTS,
CATERINGS (HORECA)
CONSUMERS
24

Beer is a popular and preferred type of drink today, so SABECO should take
this advantage to promptly meet the needs of customers. Besides the
intense competition in product and price, distribution channels system
becomes the most important factor interested by the producers. Appropriate
distribution strategy plays a very important role in the logistics chain as well
as a strong impact on the brand positioning products in customers' minds.
For the beer brewery industry, there are two effective and common
distribution channels today, that are traditional channels - also known as on-
premise channel (in bars, clubs, restaurants, street restaurants - HORECA
channel) and modern channel in supermarkets and convenience stores.
However, the fact that the beer makers tend to focus on activities to
promote the traditional distribution channels because the Vietnamese
consumers prefer drinking beer at the restaurant or street restaurants to
taking away to their homes.
Saigon Beer’s distribution types are quite diversified and very easy-to-buy,
customers can buy Saigon Special anywhere, from a wholesaler to the
retailer, from restaurants to the street restaurants. Customer segments that
Saigon Special is targeting are the people who have the medium and high
income in the society. Currently, taking a look around the restaurant and
pubs in the city after work time at night, it is easy to see that customers

have been increasingly interested in tasting Special Saigon beer of
SABECO because of its delicious favor, reasonable price and healthy
reasons also.
Today, nearly 1,000 distributors have created a broad network of SABECO,
stretching from the North, through the Central Highlands to the Southwest
region. The distribution network of the system SABECO is mainly wholesale
distributors to level 1, which emanates to thousands of distributors level 2,
level 3. Products from the parent company and the local enterprises are
distributed by the one member limited SABECO corporation who has got 9
subsidiaries around the country: North, North Central, South Central, West
Central, South Central, South East, Ho Chi Minh City, region of Tien and
Hau rivers in Mekong Delta to ensure the unified distribution and price.
Besides distribution network widely developed in the domestic market, at
present, SABECO has also expanded and developed further in distribution
systems in 18 countries around the world, especially in Asia , Australia,
America, Germany, Holland, Japan, Thailand. In the short time to come,
SABECO will stretch out to the markets of Laos, Cambodia, southern
China, the European market and America – which are the potential
markets. The developed and expanded distribution system has marked the
outstanding success of SABECO during the time Vietnam is on the verge of
global integration.