phân tích chiến lược kinh doanh của công ty sản xuất nước đóng chai alpha về sản phẩm nước uống đóng chai tinh khiết alpha e

Phân tích chiến lược kinh doanh của Công ty sản xuất nước đóng chai
Alpha về sản phẩm nước uống đóng chai tinh khiết Alpha
“Analyze business strategy of The company produces bottled water
Alpha of product purified bottled water Alpha”.

1


TABLE OFCONTENT

TABLE OFCONTENT.............................................................2
INTRODUCTION...................................................................3
RESEARCH OF CONTENT.....................................................4
1. About the company produces bottled water Alpha.....................................4
2. Products business of the Company - bottled water.....................................4
3. Analysis of the macro environmental factors - PEST model for bottled
water products Alpha.................................................................................................6
3.1 Analysis of the political situation - the law...........................................6
3.2 Analysis of the economic situation.......................................................7
3.3 The Sociocultural factors....................................................................10
3.4 Situation Analysis Technology............................................................11
4. Factor analysis five forces competitive products pure bottled water Alpha.
................................................................................................................................ 13
4.1 Competitors........................................................................................13
4.2 The buyer............................................................................................14
4.3 Supplier..............................................................................................16
4.4 Substitutes..........................................................................................17
5. Evaluate SWOT matrix for bottled water Alpha.......................................18
6. Evaluate the limit and strategic reasons of pure bottled water Alpha.......19
7. Proposed solutions to improve the efficiency of business strategy for the
product of pure bottled water Alpha........................................................................20

7.1 Selection of Target Market.................................................................20
7.2 Alpha brand positioning......................................................................21
7.3 Proposed brand development strategy................................................22
7.4 Solutions to Alpha develop the brand.................................................23
7.5 Trademark protection..........................................................................24

CONCLUSION.....................................................................26
LIST OFREFERENCES.........................................................27

2


INTRODUCTION
Alpha Pure bottled water launched near 5years ago, Alpha has long become
familiar stuff drinking water to people in the city of Hai Phong, the company has
actually affirmed itself on the economic playing field.
However, Alpha Company is no exception, besides the successes there are
dificults in business processes. Want to set foot in the bottled water market,
manufacturers must consider the following factors: technology, transportation and
labor costs and distribution channels. Therefore, our group II decided to choose topics:
“Analyze business strategy of The company produces bottled water Alpha of product
purified bottled water Alpha”.

3


RESEARCH OF CONTENT
1. About the company produces bottled water Alpha
Alpha bottled water brand was born in November 2011. To meet the standards
of measurement quality and food safety, the company has invested more than 1 billion

for the construction of production line technology contract and a closed set.
With the motto of "quality is the top", the company producing bottled water
Alpha always comply with the standard manufacturing process is registered.Raw
materials are sourced from deeper groundwater 100 meters, through nervous system,
filtered, treated with coal chemicals, ultraviolet sterilization.Therefore, bottled water
Alpha term use without being precipitated.Production line of bottled water Alphabut
not automate 100%, but closed in the secured important stages. In 2014, company
sales reached 8 billion, up 15% the following year.The main products include:
- 500ml bottled water.
- 330ml bottled water.
- 1 liter of bottled water
2. Products business of the Company - bottled water
Beverage market Vietnam is a potential market and vibrant. When turning
phase rising living standards, require product changes, consumers are not too
concerned about the price that their choice is the brand's reputation and for their
convenience, time this competition will become fiercer. Currently, beverage products
from ASEAN and other countries have Vietnam market penetration,enterprises in
Vietnam difficulty more or less, but there are many market segments left open to
development, such as soft drinks for children, for women, for office workers, cool
water to close boxes,etc,... In Vietnam, bottled water has many other names, such as
pure water, bottled water, purified water. But the fact that bottled water is pure water
bottle or plastic bottles Pet, depending on the capacity for users that have different
names.
So what is purified water? Drinking water is pure water have been removed all
the impurities in the water component, is chemically almost only H 2O without any
other mineral components. But in fact the mineral composition of the water remains at
4


a level that would enable health benefit users and minerals that are specified on the

type and concentration of tight regulation of the production Health (Vietnam
regulations 6-1: 2010/BYT).
These indicators are generally manufacturers of bottled water on the label in
the form of a summary implies production standards are applied, usually listed in the
"quality indicators". Today, standing before the state of well water is contaminated
heavily ado, turbid water condition occurs frequently, the product selection of bottled
drinking water is the optimal choice for every house in use daily diet. RO membrane
water filters use the most advanced technology, the most popular in the world today.
RO membrane filter is 99.9% impurities in the water, including bacteria and ions exist
in the form of water-soluble mineral salts, water purification RO one level
conductivity is 5-15 microsiemens. Filtering drinking water using RO system is very
popular in America.
The company produces bottled water Alpha business specializing in pure
bottled water to serve customers in the urban area in Hai Phong.The Company's
products targeted at consumers as households, companies, shops,etc,...Products of the
company are being developed under trends: safety - convenient - reasonable.
Especially during tough competition today.Companies selected market segments and
business strategy so as perfectly reasonable.

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3. Analysis of the macro environmental factors - PEST model for bottled water
products Alpha
Political

Technological

Economic

Social

3.1 Analysis of the political situation - the law
Political stability in the world situation is more volatile help companies,
especially companies in the beverage industry boldly outlined the long-term business
strategy. Bureaucratic reform are positive, but still cumbersome, overlapping, multiple
procedures, some still bureaucratic and authoritarian.Anti-corruption issues are not
effective, low transparency indices, policies and decisions of the state is inconsistent,
volatile and no long-term vision.
According to the plan of the Vietnam Wine - Beer - BeverageCorporation, the
period from now to 2015, to encourage all economic sectors involved in the
production of beverage ingredients from local producers, with priority given to
increasing production capacity juice, not investment increase production capacity
carbonated beverage prepared from imported flavors.
Society is growing, increasingly busy lives should demand using canned food,
bottled or processed products of people is increasing.One of which is the beverage
industry.Today people drink water not only to meet the additional demand of water for
the body but also because of the nutritional and organoleptic value, which beverage to
meet all the needs that should be the beverage industry indispensable in the present
life. That is why a growing number of businesses signing up to join, or diverted to the
beverage industry business.But also there are few which can remain with the industry.
6


Sales in the beverage industry but what advantages and disadvantages, why have
things stand now joining the industry, but now there is an increasing revenue through
the year.
Political stability and consistency in policy stance big that investors have a
positive view on the market, so this is a factor in attracting a large number of foreign
investors 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, expand market share.In short political stability created favorable
conditions for business.
The legal system is built to create more complete legal framework for
economic activity, forced companies to accept state regulation of market economy of
Vietnam today. The legal system simultaneously maintains political stability, create
confidence for investors as well as business activities of enterprises.Vietnam is
considered as a country with a stable political environment, few issues related to
religious and ethnic conflict. The stability which has always been regarded as
favorable opportunities and attractive to strategic activities of investors, manufacturers
and foreign business.Party and State of Vietnam always attaches importance to the
health of the people, while also offering more support policy development beverage
industry, ensuring the autonomy of the business, is the essential condition for
implementation Good principles: Equality, mutual respect and healthy competition.
3.2 Analysis of the economic situation
The growth rate of total gross domestic product (GDP) in 2014 was only about
5.9%, lower than in 2013. While the consumer price index is high CPI, annual
inflation up to 18.58%. Yet the economy has made positive changes should be
recorded. In planning approval Industry and Trade Ministry growth targets total
production value of beverage ale Vietnam period 2010-2014 reached 12%/year, in
2011-2015 reached 13%/year and the 2016-2025 period to reach 8%/year.In particular,
in 2015, production of beverage reach 4 billion liters. By 2025, production of
beverage was 11 billion liters.According to experts of the Association of Wine - Beer Beverages, Vietnam is one of the market for non-alcoholic beverage with rapid
7


growth.Per year, a Vietnam only drink about 3 liters of bottled non-alcoholic
beverage, while the average rate of the Philippines is 50 liters/year. Thus, the beverage

market in Vietnam is evaluated potential to businesses investing in developing
countries.The development of the beverage market unevenly in all product lines. Noncarbonated beverages has accelerated strong growth in recent years and will continue
to be the trend in manufacturing and consumer mainstream in the future.Prior to
changing tastes, the beverage business has changed the structure of production to meet
customer demand.Recently, Vietnam has now significantly reduced the production of
carbonated beverages, alcoholic;instead, strong drinks natural origin such as green tea,
herbal tea, fruit juices.Beverage industry in Vietnam with fast growth, meet in number
for consumers, largely replaced imports and enhance the value of the processed food.
On beverage production: Since 1938 Vinh Hao Mineral Water Factory and in
1952 had Chuong Duong freshwater factory, it now has 204 establishments beverage
production, with capacity of 1008 million liters/year. In 1999 produced over 460
million liters. Average consumption of 5 liters/person/year.Among them:Freshwater
mixture was 3.35 liters (mainly Coca - Cola and Pepsi, mineral water and purified
water was 1.49 liter and 0.16 liter of juice.Clearly, the rapid development of industry
Beer Alcohol Beverages have to meet the requirements of consumers due to economic
development and our country has a hot tropical climate.It also repel foreign goods
entering, as China's beer and imports, though still but yield less.Branch operations
effectively, each year contribution to the State budget on 3000 billion settlement for
over 2 thousand people have stable jobs in the manufacturing facility.In addition,
thousands of people participate in the provision of supplies and services for product
consumption.
Beer Alcohol Beverages development while contributing to the development of
other industries such as agriculture, transport, engineering, packaging. Two Central
Breweries (Saigon and Hanoi) production has reached 107% capacity is still
insufficient to meet the needs of consumers.Many state-owned ale of beverage staple
of local development investment rather like beer company in Hai Duong, Quang Ninh,
Ha Tay, Thai Binh, Dong Xuan Alcohol (Phu Tho), Thang Long Wine Making
(Hanoi ),etc,...Through the open door policy, again just to take advantage of capital
and advanced technology, management of large firms had invested in 27 joint ventures
8

and 100% foreign capital (the brewing has 6 companies, producing wine 8 enterprises
and beverage manufacturing business 13). Including large companies like Heineken,
Carlsberg, Foster's, Huda, Coca-Cola, Pepsi-Cola, Hiram Walker.
Beverage industry in Vietnam are still limited as:
+ Local beer and economic components of the average only 62% of design
capacity. Industrial alcohol production capacity utilization is even lower, reaching
only 38.45% (state 30%, the economic sector 56%, 4% joint venture).
+ With a mixture of fresh water only reached 45% and mineral water, purified
water to 43% of design capacity, excluding Chuong Duong beverages company and
Lavie mineral water reached above 90%. The two companies have invested abroad,
representing 60% market share carbonated of beverage as Coca-Cola and Pepsi-Cola
also only reached 40% of design capacity.
+ Poor product quality, impact on consumer health is worrisome. About 400
beer production base of the economy rather nh section, backward technology and
equipment, raw materials malt, Houblon, yeast often buy cheap, poor quality water
source for brewing not hygienic cooking stages , filtration, fermentation is not ideal,
leading to quality draft beer does not guarantee food safety.
+ And the people themselves cooking wine, distilled once, craft backward, so
many toxins, impurities. Substances Aldehydes (235mg/l), furfurol (3,6mg/l),
methanol (0.6% V), higher Alcol are toxic and affect human health.Every year over
200 million liters of wine to cook population (92% share), which should be managed
to prevent.
+ The of beverage, to dominate the market, reinforcing how the product sold,
two large soft drinks company Coca-Cola, Pepsi-Cola compete to lower product
prices. Next is the phenomenon of labels, "counterfeit", what is Lavitel, Laville,
Lavide or Lavina, Lavierge.
Vietnam's economy has experienced steady and solid development in recent
times. The stability of the economy to create favorable conditions for the development

of domestic economic sectors, including beverage industry to serve the needs of
people and the increasing demands of society.The official statistics show that up to
this point the economy has shown positive signs, expressed through key indicators,
such as GDP growth is estimated at 6 months was 6%, the prices of goods CPI
9


accelerated momentum has softened in the second quarter, rising 4.78% estimate than
in December 2014.
The high growth of the economy led to increases in per capita income, which
leads to life of the population of the increasingly high, improved and more advanced.
Therefore the need for life as well as dietary needs of people are also more
demanding.
Inflation was renewed due to the impact caused by the fundamental and
demand pressures. According to the investigation team's Economic Research
Committee, ANZ Bank, the inflation rate fell from 27.9% peak in September 2013 to
2% in August 2014. However, pressure on prices began escalating, the last 3 months,
consumer price index increased from 1.25 to 1.5%, ranging from 5-6%/year.And do
not just stop, from now until the end of the year, the pressure on prices will continue
and entails an increase in inflation, and real interest rates will also decline rapidly.
3.3 The Sociocultural factors
- Population and urbanization:
Vietnam is a developing country with a population of about 90 million people
(ranked 13th in the world). Proportion of population growth per year in the period
1999-2014 was 1.22%/year. Therefore, this is both a consumer market potential and
prospects, both abundant manpower with cheap labor.At the same time, the proportion
of young and middle-aged people is quite high, bringing sizable customer base.Thus,
our country with a large population, rapid urbanization, large proportion of young
people is a good market with abundant customer base.
- Tastes, trends:

Vietnam is still a developing country, so the consumer needs essential for life is
still very high proportion of the consumption structure approximately 50% and will
also occupy a high proportion in many years when people's lives are improved.
According to some assessments of investors in bottled water 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 trend the use of bottled
water has health benefits is booming in Vietnam, especially in big cities. According
AsiaPanel, the number of households entering the high-income group (over 6.5
10


million VND/month) increased from 7.3% to 11.9% of total households in
Vietnam.Along respectively increased number of households with income of about 4.5
to 6.5 million VND/ month. When the money in the bag becomes more abundant, the
people turned to the choice of products derived from natural nutritious for health.
- Lifestyle:
Hustle of Vietnam today, more modern lifestyle, overtime work they are very
concerned about health care for their families and themselves, participated in many
fitness activities sports, social activities,etc,... Thus, the consumer enjoys consumption
products usability fast, but good effects for your health. Today, the gathered friends;
colleagues in the bars after school, work is very often the young people and staff style.
Meet the needs of these audiences will now have the right development direction and
profitable.
3.4 Situation Analysis Technology
Currently the production of beverage in Vietnam growing very strongly.
However, considering the scale of current and potential has yet to meet. Actually the
beer business in Vietnam is racing equipment and technology to increase
competitiveness.Industry has invested infrastructure relatively large with nearly 10
trillion, many facilities have modern equipment and technology, to create products

with consumer confidence in the country or region, as:333 Beer, Hanoi Beer,
Heineken, Halida, Carlsberg, Sanmiguel, Huda Coca-Cola soft drinks, Pepsi-Cola,
Vinh Hao Mineral Water, Lavie, Danh Thanh, Thach Bich, new rice wine, Thang Long
Wine Making.As planned development of beer, wine, soft drinks Vietnam until 2015
with a vision to 2025, industry production of beer, wine and soft drinks will be
developed in a sustainable way, focusing on ensuring sanitation, safe food for
consumers and protect the ecological environment.
For the beverage industry, Industry and Trade Ministry to encourage all
economic sectors to invest in production of equipment and modern technology,
ensuring food hygiene and environmental protection. To encourage businesses to use
domestic raw materials associated with building material area in the locality.
In particular, enterprises preferred of beverage produced from fresh fruits and
nutritious beverages. The economic component is also actively invest 575
manufacturing establishments (the brewing has 400 enterprises, producing about 27
11


corporate liquor, of beverage production, about 148 enterprises), these facilities made
products to meet the workers on site, such as beer gradually become rather nh
ordinary of beverage, especially in towns, townships, industrial parks and of beverage
sector in Vietnam also had line technology for the production serves as:
- Lines for the production of beer, wine, green tea, refreshments ... the kind of
- Production line of fruit juices, water manioc shiitake water and other juices.
- Treatment system purified bottled water, boiler, water alum, salt,etc,...
- Production line cake: biscuits, wafers, cinnamon rolls, Bim Bim, quiche
kinds.
- Lines of washing, filling, capping 21 liter bottle, 5 Gallons automatically
- Lines for the manufacture of beverages: Soft drinks and carbonated, soy milk,
baby milk, sterilized milk,etc,...
- Lines of washing, filling, capping automatic pet bottle with a capacity of

cylinders are 330ml, 500ml, 1 liter.
Since home cooking, boiler, water treatment systems, cultured yeast, fermented
by automatic outdoor tank, filtration system, air conditioning, waste water treatment ...
Have all new and improved. Cooked house new high-capacity and cost reduction is
important and taking fully automated.This new technology has its own CIP systems,
water supply systems, water purification and modern automatic control.New
technology contribute to improving product quality luonag, beautiful packaging,
noise, heat, hygiene, reduce production costs and amortization, fell hard
labor,etc,...But the extent of use of capital, technology and technical equipment of the
enterprises in the sector is very different.Having invested enterprises towards depth,
with enterprises to invest in the direction of dispersion.
The objective of sectoral planning Beer - Alcohol - of beverage aimed towards
sustainable development, focus on ensuring food safety and ecological environment,
industry development based on the mobilization of resources from all economic
sectors, in all forms meet the increasing needs of the society; applied technology,
advanced equipment, focused on building a strong national brand to compete
effectively in the process of international economic integration.
Currently, the technology - techniques are developing rapidly, the change of
technology is in production lines carbonated drinks is not cause for concern. These
12


technological advances create new competitive advantages, the stronger the existing
advantages. Therefore, companies with strong capital can enter on the device,
advanced production lines will improve quality and reduce product cost, product
design beautiful, bring a competitive advantage.
Leveraging factors Company Alpha bottled water held perform the unloading
of advanced technology, high technology service needs to improve productivity and
product quality. On the product packaging:the successor in packaging design makes
the real difference in this area.Alpha has created all kinds of PET plastic bottles, glass

bottles, reusable, paper boxes and cans Tetra Park is very convenient for the consumer.
Environmental technology increasingly modern and accessible has helped
businesses solve environmental issues one of the best. The only downside are that
these technologies are often quite expensive.
Currently communications technology of Vietnam has been developing a very
powerful way, to help businesses to promote the image of the company an easier way
to

consumers

in

various

ways:

Internet

advertising,

television,

commercials,etc,...Alpha did pretty good media campaign and invest no less on the
media to advertise to let people know about the benefits of image and product brands.
4. Factor analysis five forces competitive products pure bottled water Alpha.
Sector penetration opponents

Supplier

Competitors the

The buyer

sector
4.1 Competitors
In 2011, the battle for Alternative
market bottled
water really only take place between
products
Aquafina and LaVie, two "giants" are leading the two segments.In 2014, every
consumer in Vietnam spent more than 28,100 VNDpurified water and more than
10,200 VND for mineral water, up respectively 3.9% and 4.8% compared with
2013.Forecasting the end of 2014, the bottled water market in Vietnam will reach total
sales of about 279 million, an average annual growth of 6%/year over the period
2010-2014, total market volume estimated at over 307 million liters. In 2009,
according to statistics from Datamonitor Marketing Research company (UK), seized
the upper hand in the bottled water market Vietnam is pure water products, with
13


brands Aquafina (PepsiCo), Sapuwa (Saigon pure Water company) and Joy (CocaCola).Occupying the lower level of market share is a trademark of the manufacturing
base in the model as Evitan family, Hello, Alive, Aquaquata, Bambi.
In the segment of bottled mineral water, brand La Vie (now at the Nestlé)
continue to occupy the top spot with a market share far exceeding the rate of 2 brand
followed by Vital and Vinh Hao. This segment also includes more than 20 brands such
as Thach Bich, Danh Thanh, Evian, Laska, Dakai, Water Maxx, Vikoda.Entering
2015, the battle for bottled water market is forecast to only really take place between
two "giants" are leading two segmentsare Aquafina and LaVie. Since its launch in
Vietnam in 2015, Aquafina has developed strategic positioning of the brand Premium
pure water through the funding of sports, music and fashion. PepsiCo also repeatedly

bombed advertise their brand with more than half a million dollars of funding within
the first year.Along with expanding distribution channels, Aquafina has quick access
to consumers. Compared with Aquafina, the predominance of LaVie are senior of 10
years in Vietnam (including the time before Nestlé acquired from Berrie Vittel). CEO
of LaVie Vietnam Matthias Riehle said each day, over 2 million bottles of LaVie is
consumed in the country.
Beverage market in Vietnam is now quite attractive, attract more businesses,
large companies and foreign participants. In addition to the aforementioned existing
competitors, the company produces bottled water Alpha has many potential
competitors other.Many companies in the beverage in South Korea, Japan,etc,...Want
penetrate the Vietnam market.So, with Vietnam beverage company, they have
advantages in capital, technology and unique tradition.Therefore, the penetration of
their markets will cause significant impact to the Company's share refreshments
Vietnam,including production company Alpha bottled water.Additionally, the
reputation and its profits,The company produces bottled water Alpha also faced the
counterfeit labels, influencing consumption and reputation of the brand.
4.2 The buyer
As a developing country, economic growth and sustainable high-ids,
expenditure patterns of the people of Vietnam for food and beverages fell but the
absolute number for this group has increased spending and the proportion still big, this
14


is very favorable for the development of food products, especially beverage industry.
Features beverage consumers Vietnam:
- Population with 58% of the population younger than 30 years old. In
particular, in terms of business generation born in 80 people (consumers born in 1980
or later) constitute a target market segment is increasingly attractive to enterprises
consumer goods the sector using faster, while beverage industry.Consumers in large
cities prefer to use more packaging bottles cans (90%), the utilization rate are 10%

cans for higher prices while the equivalent volume.
- Reasons for the choice of the consumer products today: quality decide to
36%, plus the price is also an important factor in the decision to buy the product. In
the future, the decisive factor for the purchase and use of consumer products are:
product quality (40%) and the reputation of the company (25%).About 50% of
consumers surveyed said that the prepared drinks helps save time, 57% chose the
beverages packaging handy because you can drink immediately without cups. The
motivation for consumers to choose a drink are like (20.7%), cheese (19.7%), health
and energy euphoria.Customer trends change from the many chemical products create
bright beverage products prepared from fresh fruits,keep the flavor, rich in vitamins,
without the use of chemical products and other color is to have new taste.
- Consumers prefer using soft drinks in public places such as restaurants,
amusement parks high proportion.
- Vietnam Consumers are increasingly aware than sanitary issues, food safety,
as well as more attention to price games nutrition, health benefits when choosing the
beverage product. In contrast to demand carbonated soft drinks, beverage needs no
gas, particularly in Vietnam juice rose strongly, up approximately 30%/year.Sales
results since the period 2010 - 2014 of domestic companies shows that nearly 50% of
consumers in the city are turning to beverages containing vitamins, less sweet smell
natural pitcher.Statistics of Coop-martin this system 13 supermarkets showed in 10
people choose to buy soft drinks, there are 6 people buy no gas beverage,namely milk,
juices, mineral water, purified water.This rate difference with three years ago, when
there are 7/10 people choose to buy carbonated soft drinks.
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
15


can create pressure on manufacturers to reduce prices or improve service quality and
better sp.

As research on the company producing bottled water Alpha customers are
divided into 3 main groups:
- Individuals, households and collective purchasing products and services.
- The system of wholesale and retail distribution, supermarket.
- International markets: foreign customers - the consumers.
The influence of corporate customers is expressed through the following
factors:
- Number of customers:
+ Buy retail consumers buy: the more crowded the better benefit enterprises
that consume so many products, less the cost of consuming more, fast product is
known.
+ Distributor: Want to win the battle for market share in the enterprise have to
pull consumers toward him.The system stores, sales network is the base of
manufacturers and distributors in the battle for the market.No chain enterprise
distribution can not even reasonably priced.The distributor can be considered as vital
to the success of a new product.
4.3 Supplier
The Company medium and large soft drinks must be imported from foreign
flavors road through official imports, especially those enterprises producing products
carbonated soft drinks. Companies with foreign investment in Vietnam is often
applied manner parent companies sell aromatherapy for its subsidiaries.Through the
sale of these flavors, the parent company earned a lot of profits and helped the relay
for the subsidiaries in the promotional campaigns, discounts to crush competitors and
expand market.In 2003, Japan had a ticketCoca Cola company in this country amount
to $ 100 million in transfer pricing fraud, in Vietnam, so far, despite being mentioned
a lot on the issue of transfer pricing of multinational companies, but not yet there are
effective mechanisms for this problem.
On the packaging: for glass bottles, companies often imported from abroad:
Thailand, Malaysia, Singapore. The packaging in cans, PET bottles by domestic
16

companies provide. Overall, vendors factors for companies in the sector except for the
issue price are stable and high quality.
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 are one important factor affecting the
business activities of enterprises.
Number of suppliers as much now as little pressure from suppliers and vice
versa. Besides, the proportion of goods purchased from a supplier higher now
increasingly come under pressure from suppliers there, especially the pressure on
prices.But conversely, if businesses are major customers of suppliers, enterprises have
been many advantages.Some suppliers of bottled water manufacturers Alpha.
Supplier
Polymer Asia
Malaya VietNamPlastic
BJC
SCG Chemical
Crown Beverage Cans Ha Noi
4.4 Substitutes

Products offers
Packaging Product
plastic Bottle
In packaging, label
Flavoring, chemicals
Wastewater treatment

Beverage market has strong competition in gas by alternative products such as
non-carbonated soft drinks, milk, juice, purified water, mineral water, energy
drinks,etc,... Consumers use a variety of non-carbonated drinks are have no interest
due to carbonated beverages, besides the media propaganda that fizzy drinks are not
good for health, especially for children. Statistics from the supermarket and retail
stores, 2014, the market only 50 fruit juices.By early 2015, there are over 200
different products for the price of 8.500VND/liter to over 20.000VND/liter.
Potential opponents: Beverage market not gas: There are too many domestic
enterprises participating in the market, the number of firms enter and exit the market
is very large, causing market chaos.Products are varied, almost any kind of fruit,
flowers, leaves and roots that can make soft drinks businesses are exploiting. Product
diversity and duplication but not a business separate scoring mark for its specific
products in the market.Imported products with declining import duties are a potential
17


rival.Mineral water market - pure water:The period 1994-1997, the mineral water
Aqua of Danone imported from Indonesia were up a relatively large market share in
Vietnam.
At the same time, the competition of Aqua, PT Aqua Golden Mississippi has
begun to find a joint venture partner in Vietnam. Due to the economic crisis the
region, the investment plan was postponed.Since 2005, Aqua and Evian (under
Danone) have started to return to Vietnam market.With the experience of a second
company world of bottled water, the involvement of Danone will make the market
increasingly fierce competition.
Pure water products of the two companies Coca-Cola and Pepsi major impact
on the market because most current mineral water and pure water is subject to the
distribution by freshwater systems. Pure water products of two enterprises segment
positioning on, once launched new products with middle and low segments, potential
competition is considerable.Product replacement product can be used interchangeably

in satisfying a certain need of man.In the case study company produces bottled water
Alpha emphasis to the needs refreshing.On the market today, with over 3000 products
beverages.Therefore, the ability to replace the Company's production of bottled water
is huge Alpha.In addition to the products included in the list of direct competition,
there are other alternative products featured:
+ Water, bottled mineral water.
+ The carbonated beverages.
+ The other type of beverages
5. Evaluate SWOT matrix for bottled water Alpha
The external environment
The opportunity (O)
The environment inside
The Strengths (S):
1.

Line

technology,

manufacturing facility.

The Threat (T)

1.The recovery momentum 1. Inflation tends to increase.

modern of

the

economy,

the 2. High standards of quality,

economic stimulus package food safety.

2. Human resources are of high of the government.

3. Substitutes rich.

quality.

4.Demanding

2. The WTO

customers

3. The competent administration, 3. Tastes, modern consumer high quality, sample code.
18


ambition and vision.

trends.

5. The price sensitive.

4. The distribution system.

4. Traditional customs.

6.Pressure from competitors.

5. Invest more for research and 5. The large market
development of products.

7. Unfair Competition.

6. Technology development

6. Achieve numerous awards for fast, easy access.
quality, participated in many 7. Favorable trade position.
social events.

8. Climate characteristic of

7. Occupy large market share to Vietnam.
market

non-carbonated 9. Many suppliers.

beverage.
The weakness (W):

10. Material guarantees.
1. Based inner city of Hai
Phong, no basis in other
localities.
2.Merely

concentrated

domestic market, not export
the product.
6. Evaluate the limit and strategic reasons of pure bottled water Alpha
Due to lack of strategic positioning and building from the original image, brand
Alpha does not clearly express personality and brand associations for customers.
Overall, the logo and brand identity system is currently not reflected the strategy,
vision and scale new company's operations as well as consistent with the target
customers, not shown consistency and create high difference compared to competitors
and consequently not create brand associations and image clarity and depth.Brand
strength reflected in the level of awareness, use, loyalty, brand associations and brand
image is not clear, the coverage of the distribution system relatively "modest".
Currently the channels of dialogue and implementation of marketing
communications activities, excluding the value added services such as care agents is
limited. These communication tools have not been used effectively.Media scattered,
unclear objectives, lack of direction and focus.Effectiveness of marketing
communication is limited, not focus properly target customers, not shown positioning

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and clear message, consistent (since no brand strategy), so images, and no faint
impression deepened customer's mind.
The restrictions on significantly reduce perceived quality and value from
customers. Consequently, consumers may not know or did not properly assess the
quality of products; or not customers choose to buy the product priority Alpha.Alpha
Company should develop marketing communications plan for the year, including
clearly defined goals based on brand strategy, target audience, message
communication, strategy and tactical action plans specific and resources allocated

earlier this year.Improve and enhance the image and style of retail outlets through
store design, product display placement, media outlets including the knowledge and
skills of sales staff.
7. Proposed solutions to improve the efficiency of business strategy for the
product of pure bottled water Alpha
7.1 Selection of Target Market
With its growth strategy based on product quality good, average prices as a
basis, the target customers of Alpha-income group with characteristics quite hard. For
this target group of customers, price is only one of the problems is concerned, quality
is of course, the brand will be the deciding factor.Thus, based on segmentation of
customers in recent years, the company needs to continue implementing the business
strategy,building construction strategy and brand development, especially brand
positioning stages to match the target customer group.In addition to the current
segment, the company should be classified into the following market segments:
- According to geographical criteria: market urban and rural
+ Urban markets: including cities, towns and industrial centers in the
country.Although the urban population accounted for less than 30% at the total
population, but indicators of refreshments every market segment accounted for 65% of
the country (according to research by Nestle).However, the market requires highquality, multi-species models, attentive service, dedicated and fast.The living
standards of the urban population increasing and tends toward drinking fluids health
guarantee.
+ Rural market: including rural, mountainous and midland with 70% of the
population. This market is less concerned for customs and habit still use natural water
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resources through self-exploitation. Consumer characteristics of this little market,
focused on some point in the year (holidays, parties).
Currently, businesses often produce only soft drinks market operators
neglecting urban rural market accounts for a sizeable and their needs little more strict.

When the brand has focused on exploiting the urban market, the rural market is a gap
for enterprises born late exploit and expand the market, but the key feature of this
market is Cheap required.
- According to demographic criteria: the elderly, young, young team.
Additionally, the target customer group in future also market the youth group (besides
the traditional customer group at present) and the parents remain the final
decision.Therefore, the construction of the brand image in their Alpha is still an
important factor. For parents, the most important thing for their children's health,
hygiene and quality thus remains a key factor.Building brand image through programs
and events related to youth and the parents will contribute significantly enhance the
brand image quickly.
7.2 Alpha brand positioning
The aim now is to become the industry leader Bottled Water firstly Hai Phong
city, and then the area of Vinh Bao and Tien Lang…, but businesses still do not have a
specific strategy, in trademark issues. Therefore, a strategy to build and develop the
brand, including brand positioning accuracy is an important issue to do now.
- Identification of the competitive brand: From the above analysis, to identify
the strengths and weaknesses of competitors, will help Alpha strategically exploit your
opponent's weaknesses, but their advantage than competitors like regime customer
care, service attitude of staff polite, caring, good distribution channels,etc,... and
overcome weaknesses compared to competitors.
- Identification of factors affecting brand: In today's environment, brands have
a lot of impact.Some positive effects, others interfere, difficult and may adversely
affect the reputation and brand.With its current position as a challenger brand in the
entire industry, the company has always been rivals seek and fully exploit the
weaknesses.So to pull ahead of the market, a good brand strategy is the inevitable
problem.To have a good brand strategy, identifying and analyzing the strengths,
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weaknesses, opportunities and challenges of rigorous brand is a matter of primary
concern.
The above analysis to help enterprises realize the problems in need of
improvement, corrective as brand awareness is not high, the promotions are not
good,etc,... and promote the strength and credibility, product quality good,etc,... or
well use the opportunity as more stringent regulations,etc,... to increase the
competitiveness of the brand in the marketplace.
With current strengths as superior product quality, brand reputation is
increasingly being confirmed, brand strategy to do is to strengthen the awareness of
consumers through a link with the brand language, select the appropriate advertising
channel to make the distinction of the brand, but still maintain the core values of the
brand Alpha.
- Brand Positioning Strategy: As enterprises a pioneer in the field of drinking
water in the inner city of Hai Phong, both just first steps against the giants in this
industry should now still no well-developed strategy, a strategic positioning no
specific effect.
Although the market segment and target customers are clearly determined, but
it is not enough to be able to build and develop the brand leader in the future. From
the identification of competitive brands, the impact factor, combined with the analysis
above, can demonstrate strategic brand positioning statement Alpha through
positioning follows: "Alpha always bring peace of mind and create a sense of luxury
and best satisfy consumers preferred quality ".
7.3 Proposed brand development strategy
Based on specific business areas of pure water, and to match the characteristics
of the business situation, goals and directions of development, product expansion only
in the drinking water sector, as well as vision and the company's mission. May notice
a brand extension strategy is optimal platform using products Alpha. This is the most
appropriate strategy development aiming to diversify the types of products.
Besides, with current capacity, to overtake the other competitors, such as Vinh
Hao, Lavie, Aquafina,etc,...Companies should choose the link with the famous brands

in addition to the development sector.Currently the company is implementing to
market products with new labels, link with the product line carbonated drinks Chanh
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Thang to launch the product line of bottled water and 0.5 liter volume 0.33 liters with
product labels are more prominent image.
7.4 Solutions to Alpha develop the brand
Brand is an intangible asset, but tangible hidden strength, the brand decided the
choice of customers for your products and it even affects the success or failure of an
operation business. To build brand image in customer satisfaction in the long term, the
company needs to promote the brand Alpha characteristically to not duplicate with
other companies.
- Solutions for Media, fans
+ Target Media: The company should strengthen the communication activities
in order to promote enterprises image and provide information to the targeted
customers.
* Communications to improve customer perception of the company to
facilitate the sale or long-term service provider.
* Changing the attitudes and perceptions of people about Alpha, giving them
peace of mind when choosing products Alpha
* Develop a unique brand for the company to distinguish it from competitors is
worthy leading manufacturers in the province.
+ Media: In order to achieve these objectives, the company can classify
customers into specific objects which give appropriate media.
+ The message communication:
- Strengthen the Public Relations (Public Relations - PR)
- Financial investments for the development of the brand
Currently, the budget for the building, brand promotion (including costs of
fairs, advertising and promotions) represents only a small percentage of sales, the

highest was 7.5% (in 2011). With the development strategy for the next years as the
above, the company must maintain a minimum ratio of 7.5% of revenue. In the
process of implementation, must reserve a larger budget around this level, because this
is the minimum level for the future and will implement programs promoting more
expensive. In the bottled water industry, competitive brands like Lavie, Aquafina,
Vinh Hao constantly increasing frequency of appearance on the advertising media like
newspapers, television,etc,...
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This suggests that, compared with competitors, the advertising costs of Alpha
1.081 billion VND (In 2011) would cause difficulty enterprises compete without
increasing costs and have appropriate advertising strategies combined with good
support strategies in the current period.
- Staffing for the develop the brand
Customers evaluate a brand through their understanding of that brand and
under the influence of the surrounding environment.In wherever place of brand
exposure with customers either directly as thank the clerk, happy attitude of guardians
or indirectly though the footage seen on television customers, an advertising banner
hanging on the streets are brought to the customer experience of the brand.
The company needed a brief training for all officers and employees of the
values that the brand offers. Thus helping to adjust the behavior, communicating with
customers, adjust the action to not adversely affect the Alpha brand. And through
training courses that can mobilize the active contribution of all the members of the
company in the work of the brand.
7.5 Trademark protection
Pure drinking water is a commodity, easy to produce the Alpha brand is more
trusted by consumers, for the protection should always be respected enterprises. For
over 15 years, all the products that the company produces are registered for
protection.In the future, with the diversification and orientation penetrate large

markets with high competition, this work must be emphasized even more.Need care
brand, reminded about the brand in a consistent manner at each stage of development
of the brand within the company and outside the company.
Great value brand that brings no one can deny. Therefore, the brand is a matter
of always being at the forefront in all businesses. To survive and thrive in fierce
competitive market today, building and develop the brand must be focused and always
the top priority.
Although in operation for over 15 years but as a new business in the first
period, the brand still have toddlers Life on the path of development. Branding issues
are concerned but not yet invested properly for various reasons, which mostly lack of
funds, manpower and a strategy to build, develop improvement.
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