CHIẾN lược KINH DOANH của tập đoàn tân HIỆP PHÁT e

THE BUSINESS STRATEGY OF THE TAN HIEP PHAT
GROUP.

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TABLE OF CONTENT

TABLE OF CONTENT................................................................................................2
INTRODUCTION........................................................................................................3
RESEARCH OF CONTENT........................................................................................4
1. History of establishment and development...............................................................4
2. Analysis of the Tan Hiep Phat Group's business environment...................................4
2.1 Economic environment...........................................................................................4
2.2 Environment political - law....................................................................................5
2.3 Environmental Culture - Society.............................................................................5
2.4 Environmental technology......................................................................................6
2.5 Natural environment – environmental.....................................................................6
3. Analysis of the competitive factors...........................................................................7
3.1 Customers...............................................................................................................7
3.2 Substitutes...............................................................................................................9
3.3 Supplier...................................................................................................................9
3.4 Competitors...........................................................................................................10
3.5 Public.................................................................................................................... 10
4. Proposed the business strategy for the Tan Hiep Phat Group..................................11
4.1 Focused growth strategy:.......................................................................................11
4.2 Differentiated strategy...........................................................................................13
CONCLUSION...........................................................................................................16

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INTRODUCTION

We are living in a new world, the world of globalization, with major changes,
diverse and complex, affecting any other country and any enterprise. In social trends
are developing at present, the economy is not unique Vietnam has many changes, but
also influenced the change of the world economy. Businesses are parts directly to race
with such changes. In the market economy, fierce competition as today, for now, the
strategic planning is extremely important to be able to grow the business, increase
revenues and profitability, maintain the prestige and position in the market.
Enterprises in Vietnam on the path of integration is still looking for its proper
direction and rebranding before the competition of multinational companies. Many
businesses have failed, but many businesses have succeeded in planning their business
strategy. In which Tan Hiep Phat Group with herb tea products Dr. Thanh is an
example. Through sound business strategy and the proper investment in marketing
activities, right from its launch in late 2008, Dr.Thanh has created a real craze for
consumers.
So what has made them successful in the business strategy of product Dr.Thanh
- Tan Hiep Phat company? What lessons can be drawn for other brands Vietnam can
learn from and get the same success? Wishing Vietnamese brands will have much
more success, I have made analytical essay "The business strategy of the Tan Hiep
Phat Group - focus on tea Dr. Thanh herbs products ".

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RESEARCH OF CONTENT
1. History of establishment and development
Founded in 1994, formerly known as Ben Thanh Brewery, Tan Hiep Phat
(THP) has become stretched beverage conglomerate with strong product lines have

health benefits. Tan Hiep Phat is now a pioneer in the changing habits of the people
refreshments Vietnam: friendly than bottled beverages with health benefits. Products
such as Green Tea Not Degrees, Dr.Thanh Herbal tea, energy drinks Number 1,
Number 1 Soya Soya milk,etc,... is the leading brand in the market, has proved Tan
Hiep Phat always go beginning in approaching and understanding the ever-changing
needs of consumers. Tan Hiep Phat products continuously won the title "Vietnam
High Quality Goods" as consumers voted honoring National Brands in 2010, and
many other valuable prizes, which are widely used by news ensure quality
management and environmental protection and integrated ISO: quality Management
system ISO 9001: 2000 (in 1999), environmental Management system ISO 14001:
2004 (2006) and management systems food safety HACCP (in 2006).
With ambition "to become Asia's leading conglomerates in three main business
areas: beverages, instant food, plastic packaging", Tan Hiep Phat has continually
invest in developing production chain systems, modernization of technology, and are
proud to be one of the domestic unit owns many production technology, the most
modern lines as sterile lines aseptic cold extraction, European technology chain,
Japan. Add that, Tan Hiep Phat may be the team of 4000 staff, professional staff, are
trained at home and abroad, experienced, enthusiastic, dedicated for the development
of the company.
2. Analysis of the Tan Hiep Phat Group's business environment
2.1 Economic environment
During the last period of 2008, the time of the Dr.Thanh hit the market, the
time of Vietnam is in the process of international economic integration, the global
economy, complicated, global financial crisis exploded in September 2008 and the
economy sank deep into Depression. However, the government has made policies and
measures to curb inflation in 2008, the support package of economic stimulus is done
to put the economy gradually stabilizing. In fact, in late 2008 and 2009, our country's
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economy has recovered clarity, overcome the economic crisis of the world's worst in
80 years and regain growth momentum.
At the end of 2008 - 2009, industrial production began to recover and growth
over the quarters. Market prices were stable, demand still rising, though slowly. Thus,
one can see a time when the Dr.Thanh hit the market, the economy, though with
difficulty, but there are good signs of resilience, overcoming the economic crisis and
regain growth momentum.
In early 2014, although economic growth in the first 6 months of the year
reached a low level compared with the previous year, but from the second quarter, the
industrial sector has made positive changes. The exports and imports have positive
changes, export turnover increased by 22.2% over the same period last year.
Consumer price index in June 2012 decreased by 0.26% from the previous month, the
third consecutive month low earlier rose only 0.2% less than in the direction of
diminishing growth, stable market.
2.2 Environment political - law
Political, political stability and consistency in policy stance big that investors
have the optimism of the market, so this is a factor in attracting large amounts of
foreign investment in Vietnam. On the other hand, political stability and contributing
to the production of enterprises. Enterprises do not have the pressure of political
instability, with the condition basis for production. Political stability brought foreign
investment flows into the enterprise, businesses can rely on that funding to develop
production and business to expand market share and develop business strategies.
Legal, with the integration into the world economy, Vietnam legal system has been
modified to fit more and more complete and create a legal framework for economic
activity in order to protect rights and mutual benefits for all businesses and
consumers. The legal system simultaneously maintains political stability, create
confidence for investors as well as business activities of enterprises effectively.
2.3 Environmental Culture - Society
Social and cultural environment of our country are varied and complex,
Vietnam is a developing country with a population of over 88 million people (ranked

13th in the world). Population growth rate per year over the period 1999-2014 was
1.2%/year, Vietnam is still a developing country with 54 ethnic groups, live with
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agricultural cultures is essentially why Vietnamese were very close to those of
products from natural beverages like green tea, squash , coconut cream,etc,... Special
tea culture is a longstanding tradition of Vietnamese people.
The trend of increasing urbanization going strong, people's lives and their
incomes rising (according to AsiaPanel, the number of households entering the highincome group (over 6.5 million VND/month ) has increased from 7.3% to 11.9% of
total households Vietnam) and consumer trends are essential for their lives has risen,
leading to increased demand considerable refreshment. According to some
assessments of the investment in the beverage industry, Vietnam currently consumes a
large volume of beverage products, approximately about 4.2 billion liters / year and
the market is growing very strongly. A study of Vietnam AsiaPanel about taking drinks
to see the trend of using the beverage has health benefits is booming in Vietnam,
especially in big cities. When the money in the bag becomes more abundant, the
people turned to the choice of products derived from natural healthy nutritious as
milk, dairy products, juices, smoothies, bottled water,etc,... Besides consumer tastes of
each region each other, hustle, more modern lifestyle, it is out of working hours is still
very concerned about health care for their families and themselves, participating many
activities and sports, social activities,etc,... So the consumer enjoys consumption
products usability fast, action that is good for health, it requires companies to the
business in the field of refreshments should have specific strategies, research clearly
tastes of each customer to meet customer demand.
2.4 Environmental technology
THP group is the first in the beverage industry bia- certified quality
management system ISO 9001-2000. Environmental Management System ISO 14001:
2004 management system and food safety according to HACCP standards. Tea
Dr.Thanh have inheritance in the design of packaging, PET bottles, the production line

and distribution channels from other products of THP Group, typically green tea No.0
level. Dr.Thanh tea is bottled in the special production conditions in order to retain the
nutrients, beneficial for the body. PET bottles for tea withstand high temperatures due
to the hot filling. Right at the outset, Tan Hiep Phat has invested its own PET bottle
production line of this.
2.5 Natural environment – environmental
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Favorable geographical location to make it easier to trade with partners across
the country and in the region and around the world by land, waterways and airways.
However, distance north - south rather large distribution, providing products for the
North difficulties of transportation costs, promote products, requires companies to
have an appropriate strategy.
Besides, Vietnam is characterized by tropical monsoon climate, with large
annual precipitation and mean temperature at a high level: climate characteristics,
making the need for refreshment of people across the territory very high, Tan Hiep
Phat provides a vast consumer market.
The main raw material used to produce tea Dr.Thanh include herbs such as
honeysuckle, chrysanthemum, Arhat fruit, dry down draft, licorice, birthday flowers,
wood free, hybrid extract, herbal, 6/9 herbs over there in Vietnam. However, most
products still have to import from China, because in this country prior stop at the
small production. However, the introduction of the herbs are grown in Vietnam to
enter is entirely feasible because our country has a tropical monsoon climate, the north
has 4 distinct seasons, southern hot and humid climate with much rain besides, our
country also has a number of sub-temperate regions such as Da Lat, Sapa,etc,...
Climatic conditions in line with a lot of herbs. In addition, the hot and humid climate
typical of our country also has a positive effect on the consumption of the product.
3. Analysis of the competitive factors
3.1 Customers

The customer is the enterprise market, a change in demand, purchasing
decisions of customers are now forced to take the positive actions that can adapt. They
can create pressure on manufacturers to reduce prices or improve product quality and
better service. When research on customer Tan Hiep Phat Group is divided into 3 main
groups:
- Individuals, households and collective purchasing products and services.
- International markets: foreign customers - consumers, distributors, foreign
partners.
- The system of wholesale and retail distribution, supermarket.
- The effects of corporate customers is demonstrated by the following factors:
Number of customers:
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+ Buy retail consumers: the more crowded the better benefit enterprises that
consume so many products, less the cost of consuming more, fast product is known,
market Vietnam has a large population (over 88 million people). Products Dr.Thanh
suitable for all ages, body purification negligent hot "with 9 royal herb". This slogan
hit sentiment Vietnamese people who live in hot tropical climates want health care
with natural methods.
+ Distributor: Tan Hiep Phat Group has an extensive distribution network of
over 268 provinces with the distributor level 1, which is an advantage in the market
launch of the product, consumers have access to a quickly.
Price sensitivity:
+ With life and income levels improve a consumer has more boldly in her
shopping and they still have concerns about the price:
* Customers who want to buy affordable prices affordable.
* Distributors, supermarkets want profits and enjoy higher discount.
So now also need reasonable pricing, discounts accordingly, price strategy for
each stage of the product life cycle.

+ Customer requirement for quality products, services, packaging design,etc,...
Today, with the abundance and diversity of consumer product market, consumer
demand of customers is increasing. So we need to study the tastes of the consumer to
grasp the new trend. Therefore companies must constantly develop innovative
products to suit customer needs.
Requirements for safety, brand reputation:
+ Consumers increasingly more knowledgeable and demanding about the
safety norms and standards for product quality is getting higher.
+ Clients react very sensitive to the information relating to food safety and
always ready to shift their consumption of substitute product if the product does not
trust the old.
+ Customers also preferred the familiar brands, prestigious and widely
advertised. The building brand reputation based on the quality and safety of the
products can be quite expensive, but it offers long-term benefits and sustainability for
enterprises, especially the position in the minds of consumers.

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For products Dr.Thanh, need more rigorous in controlling the quality of
products, to avoid errors and poor product quality was launched, as this will impact
negatively on reputation and brand of the company. Information about the customer:
The customer understand the product information will create great pressure on bargain
now, especially the distributors.
3.2 Substitutes
- Product replacement product can be used interchangeably in meeting certain
needs one man.
- For products Dr.Thanh, we focus on the beverage market, especially the
bottled tea products, herbal tea. On the market today, with over 3000 products
beverages. In particular, bottled tea products have the following brands: C2 Green Tea

(URC), Lipton (Unilever),etc,... Particularly with herbal tea product line has brand
Tam Thanh (Bidrico), Teafres (ICP), Yinyang (URC),etc,...
3.3 Supplier
- Suppliers are organizations that provide products, materials and services for
business input to ensure the business is the production and business activities.
- Suppliers provide inputs for production and business processes should have
considerable influence on the business. Quality and price of supplies affect the quality
and price of products. Therefore, the supplier is one important factor affecting the
business activities of enterprises.
- The number of suppliers is now as much less pressure from suppliers and vice
versa. Besides, the proportion of first home buyers commodity supply increasingly
higher now under pressure from suppliers there, especially the pressure on prices. But
conversely, if businesses are major customers of suppliers, enterprises have been
many advantages. Tan Hiep Phat grasp this, so that Tan Hiep Phat has 23 strategic
suppliers and each type of material has a lot of different suppliers.
- Tan Hiep Phat customers have regular relationships and long term with
favorable supplier in the purchase process. Purchasing department of raw materials of
Tan Hiep Phat always understand the market, regular monitoring of price and supply
of raw materials to stabilize production inputs.
- The next factor affect businesses is quality input materials. We can say the
quality of input materials, the new well to facilitate the production and consumption of
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products. Quality input materials as possible are increasingly producing products of
high quality, create the competitiveness of the companies producing goods and
creating competitive advantage for Tan Hiep Phat. Thus creating the brand for Tan
Hiep Phat. Because of this reason that all the raw materials which the company
purchased are imported from reputable suppliers and higher quality materials than
before.

- Although Tan Hiep Phat can buy raw materials from local companies but the
majority is imported from abroad, causing higher transport costs this is one
disadvantage to the Tan Hiep Phat. Especially most of the raw material is imported
Dr.Thanh from China. This creates higher costs led to cost and pricing of the products
is also high, which reduces the competitiveness of products.
3.4 Competitors
- Competition on price: Dr Thanh Herbal tea have far higher rates than other
types of other bottled beverages. However, customer acceptance of products because it
is beneficial for health. Dr.Thanh help us identify product strategy of Tan Hiep Phat
for this trademark was skimming lightning, or launch new products to market with
high prices and high levels of promotional: High price calculation to ensure gross
margin on product unit at the highest level, for the promotional spend to convince the
market of the product benefits even at high prices. Promotional activities at a high
level is to increase the pace of market penetration.
- Competition in the alternative: Tea is the material used to make the drink
popular in the world for thousands of years, especially in Asian countries like China,
Taiwan, Japan, Korea,etc,... Vietnam market in the world and in the region, bottled tea
flourished since the 80s of last century. All major brands available in Vietnam are
already available products in the market green tea Europe, America, Japan, Korea,
such as Lipton, Pepsi, Coca Cola, URC,etc,... For its own product lines have herbal tea
brands Tam Thanh (Bidrico), Teafres (ICP), Yinyang (URC),etc,...
- Competition in variety: With the Dr.Thanh herbal tea of Tan Hiep Phat Group
has created a difference compared with competitors by pioneers in exploring herbal
tea market, and still is the market leader of bottled tea.
3.5 Public

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In the environmental component of marketing has many different public

directly by the company. These factors also play the public role no less than the
financial institutions credit. All have a role that helps businesses reach customers
quickly and efficiently. Some types of the public as follows:
+ About Financial: It affects the ability to ensure the company's capital. Basic
public directly in financial circles as banks, investment companies, brokerage firms of
the stock exchanges, shareholders. Some banks have participated in the support for the
Tan Hiep Phat.
+ The public is directly attached to the media: The public of the media are the
common organization news, articles and editorials.
First it was the press, radio and television stations such as: Vietnam Television,
Radio Voice of Vietnam, the Television City, Da Nang Television,etc,... The press
mouthpiece like: Vietnam newspapers, youth, youth, vnexpress,etc,... With Dr. Thanh
herbal tea, the media has played a special role in stimulating the process of bringing
the product to the consumer. Thanks to strongly invest in this channel, Dr. Thanh
herbal tea has aroused curiosity, attention and stayed in public opinion, contribute to
the success of a brand right from the first day.
+ Direct local public: Tan Hiep Phat public relations directly with local people
living in the surrounding area and local organizations. Tan Hiep Phat usually sent one
person in charge of the relations with local authorities to address these problems,
people's feedback on the impact of the plant on their lives.
+ Direct internal public: Tan Hiep Phat create jobs for nearly 4,000 workers,
normally held annually to encourage employees with rewarding funds.
+ Community - social organization: One of the programs of action of Tan Hiep
Phat tradition for over 13 years is close to sports activities, Tan Hiep Phat is the
companion of many programs, sports activities across the country as Cup national
championship V-League, HTV Cup cycling, football Cup international Number 1, the
project first brought Vietnam who conquered Mount Everest or close here is the
reward for athletes won gold medals at SEA Games 24. League wild salute Vietnam
munng BTV-number. (on December 31, 2008 to January 1, 2009).
4. Proposed the business strategy for the Tan Hiep Phat Group

4.1 Focused growth strategy:
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Products marketed Dr.Thanh targeting locations where the other beverage
businesses untapped, which is the herb tea. With the idea stems from a business trip to
visit China, the product was rapidly Dr.Thanh centralized deployment in a short time
to put on the market. Communication activities are primarily aimed at young people,
the use of products focuses on heat, detoxify, matching the tastes of consumers in
Vietnam, our products are high-end positioning derived from nature.
Product launch phase, THP leaders realize that or is to run at full capacity
products like Green Tea zero degrees by the middle of last year or the entire
organization is not enough manpower to be able to undertake all everything.
Therefore, all resources are focused on bringing products Dr.Thanh soon consumers.
In the field of marketing, communication and brand positioning will be weakened by a
lack of focus. When this happens, we will not build a real brand identity. Therefore,
THP leaders have very many discussions to decide whether to narrow the target
markets and target customers of specific brands to increase the effectiveness of its
launch. Images in ads Dr.Thanh, so most young people use objects. When THP
product launch Dr.Thanh Herbal Tea, has a lot of suggestions and ideas on the
implementation of the activation and brand awareness. However, the final decision is
selecting only the essential programs that can cause powerful effects. THP has
concentrated on major programs to build the image presence and brand products as
well as to test for more customers. For example, focus on brand-building program at
Resort Dai Nam Van Hien Binh Duong province to maximize the presence and
product trial Dr.Thanh Herbal Tea. The main areas where THP focus on to achieve
success:
- Consumers: Products Dr.Thanh instant drink herbal tea is a great example of
the potential demand of consumers has been THP turned into a business opportunity.
Tea drinking is a very important position in the food culture of Vietnam. Type in

consumer psychology today, is not only a beverage, no gas, no preservatives, no
artificial coloring but it also has health benefits.
- Customers: Customers are extremely important partners because they store
our goods to sell. There will be no successful marketing activity if we do not consider
the impact of such operations on the client. At THP Group, the company has a division

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focused entirely on customer care. THP group treat all our customers as true business
partners.
- The implementation: There are many good ideas, there are very great plan but
it failed because the deployment so bad. For products Dr. Thanh Herbal Tea, THP has
a team was organized and focused quickly bring products to market in a short time.
Reportedly, since the idea until the entire R & D, design, packaging and finished
products are marketed, just take a mere two months. THP leaders know that the launch
of the product must take place before the Lunar New Year season to maximize the
level of impact on consumers and the domestic market. Objectives, roles, duties and
functions have been set up specifically to ensure that everyone working in sync. If
THP even one day delay product launches Dr.Thanh Herbal Tea, THP will not be able
to reap good results like today.
4.2 Differentiated strategy
THP has made a difference in this brand Dr.Thanh Herbal Tea a meaningful
way to consumers. Benefits of purification and cooling combined with product
differentiation from 9 herbs Royal has proved that this is an extremely powerful idea
and differences to the impact on consumers. These different factors should be noted:
- Product: Dr.Thanh herbal tea beverage is made from precious herbs 9
(honeysuckle, chrysanthemum, Arhat fruit, dry down draft, licorice, birthday flowers,
wood free, hybrid extract, herbal) have cooling effect and purify the body. Recipes
herbal tea is unique in that the product Dr.Thanh refreshments but beneficial to health.

Benefits of cooling and purifying the body from 9 herbs is an extremely powerful idea
unique and psychological impact on consumers accept that. Time to market, no
product has similar components. Products advertised as "royal herb", made the
premium positioning of the product.
- Packaging: Tea Dr.Thanh have inheritance in the design of packaging, PET
bottles, the production line and distribution channels from other products of Tan Hiep
Phat that green tea is typically not high. Dr.Thanh tea is bottled in the special
production conditions in order to retain the nutrients, beneficial for the body. PET
bottles for green tea withstand high temperatures due to the hot filling. Right at the
outset, Tan Hiep Phat has invested its own PET bottle production line of this.

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- Investment in marketing: While the economic downturn, many businesses
have chosen to save costs, but Tan Hiep Phat group is doing the opposite, sizable
investment for the production and marketing of new products are Dr.Thanh herbal tea.
It seems all the effort are not wasted when bringing success for Dr.Thanh tea.
In 2008 and 2009, THP is one of the five biggest advertising company in Vietnam and
has continued to increase his advertising costs up in the following years. This is a very
risky job. High investment in brand products also means facing a high risk when the
product does not meet the needs of consumers and not achieve expected sales. But
facing the challenge that the THP Group has studied carefully and for the impressive
form of advertising.
Advertising of products Dr.Thanh constantly appeared in so many months on
all media. Expenses for product marketing spend is very large, up to millions of
dollars, however, the media campaign "carpeted" thus influence the minds of
consumers is huge. Have to say, the product has created an extensive coverage
throughout the country, to go deep into the minds of consumers in Vietnam.
- Brand: The reason for the naming Dr.Thanh, Tan Hiep Phat Group given

explanation is quite interesting, the first "Thanh" here means the heat, pure as the
slogan "purify the body"; No. 2 is the name identical to the name of general director
Tran Quy Thanh. This particular name is probably hidden yearning for a Vietnamese
brand international level has always existed in the heart of this successful business.
This is a short name, easy to remember, easy to stick in the minds of consumers.
- Technology: Most prominent is the technology of the product packaging, the
successor in packaging design makes the real difference in this area. Tan Hiep Phat
has created all kinds of PET plastic bottles, glass bottles, reusable, paper boxes and
cans Tetra Park is very convenient for consumers with machinery most modern
production in our country.
Tan Hiep Phat has built a research lab developing new products. This has
helped the Group to become a pioneer in the market with leading brands, reasonable
prices, good quality, good design and preferred by consumers. Besides, the Tan Hiep
Phat is one of the group have been hired so many consultants for the project as well as
the business strategy, corporate marketing. And expenses that corporations pay for the
consultants is huge.
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- Timing: THP moment that launched the Dr. Thanh extremely convenient and
is considered the golden time. As consumers in the early spring air, food festival with
diversified, no longer feeling any more palatable, hot feeling uncomfortable in my
body from floating avoid the Dr.Thanh brand positioning with the function solve those
needs. Healthy products to the throne, as evidenced by the success of zero degrees tea.
Therefore Dr. Thanh is the first choice for festival season.

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CONCLUSION

Herbal tea products Dr.Thanh instant drink is an excellent example of the
potential demand of consumers has been THP turned into a business opportunity. Type
in consumer psychology today, increasingly towards natural products, health benefit.
Dr.Thanh herbal tea born with features detoxify, purify the body, right to the customer
demand in the market of Vietnam, is a tropical country.
The THP time when the market for products Dr.Thanh also entirely reasonable.
As consumers in the early spring air, food festival with diversified, no longer feeling
any more palatable, hot feeling uncomfortable in my body from floating avoid the
brand positioning Dr.Thanh with the function solve those needs. Healthy products to
the throne, so Dr. Thanh is the first choice for festival season.
Products Dr.Thanh be marketed with a proper marketing strategy and proper
investment. The communication messages strike a chord in the psyche of the
consumer with a wide coverage in the media. The message "eat snacks, potato chips,
hot in person,etc,... Dr.Thanh tea "is broadcast with dense frequency was imprinted in
the minds of consumers. Our products are aimed at all audiences of consumers, to
show the image of children, youth, office employees, the elderly,etc,... in
advertisements.

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