SOLUTIONS TO PROMOTE MARKETING ACTIVITIES OF HANOI BEER ALCOHOL BEVERAGE JOINT STOCK CORPORATION (HABECO)

FOREIGN TRADE UNIVERSITY
SCHOOL OF ECONOMICS AND INTERNATIONAL BUSINESS

SENIOR SEMINAR
Major: International Business Economics

SOLUTIONS TO PROMOTE MARKETING ACTIVITIES OF
HANOI BEER - ALCOHOL - BEVERAGE JOINT STOCK
CORPORATION (HABECO)

Student’s Full Name: Nguyen Thi Linh Giang
Student ID: 1611140091
Class: English 3 - US accredited
undergraduate program of International
Business Economics
Intake/Cohort: 55
Tutor/Supervisor: Assoc. Prof. Mai Thu Hien


TABLE OF CONTENTS
ACKNOWLEDGEMENT..............................................................................................iii
PREFACE........................................................................................................................ iv
CHAPTER 1: THEORETICAL BASIS.........................................................................1
CHAPTER 2: REALITY.................................................................................................4
I.

2.

Introduction to the Corporation (HABECO).........................................................9
1.

Formation and development history...............................................................9

1.2.

Types of internet marketing...........................................................................4

The current internet marketing system of Threeland Travel.................................6
2.1.

Target markets (Indochina, India, EU)...........................................................6

2.2.

Major online maketing tools..........................................................................7

2.2.1. Search engine optimization (SEO).................................................................7
2.2.2. Social media marketing................................................................................10
2.2.3. Email marketing...........................................................................................13
3.

The evaluation of the company’s performance in dealing with the difficuties in

internet marketing........................................................................................................15
CHAPTER 3: STRATEGIES TO IMPROVE INTERNET MARKETING SYSTEM
IN THREELAND TRAVEL..........................................................................................17
REFERENCES...............................................................................................................19

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ACKNOWLEDGEMENT
Regarding completing this Senior Seminar, I would like to acknowledge the following
agencies for their support and assistance. Great deals appreciated go to the facilitation
from Foreign Trade University, especially the School of Economics & International
Business. The internship program really plays an important role in providing senior year
students with various opportunities to enter the corporate world.
I am also grateful of both Marketing Department and Market Department of Hanoi
Beer-Alcohol-Beverage Joint Stock Corporation (HABECO), who warmly supported
me with their hospitality during the intern period. Not only did they arrange my local
work but also assisted me in the specialized field with various useful information.
Above all, the special thank goes to my helpful supervisor, Mrs. Mai Thu Hien. The
enthusiastic guidance and support that she gave truly help finalize the progression and
smoothness of this Senior Seminar.

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PREFACE
The existence and development of human society is closely associated with the
development of social production. The society’s production reflects its level of
development, or in other words, it expresses a society’s appearance and strength. Along
with its development, the production is growing and growing, Vietnam is in the process
of developing a socialist-oriented market economy. Developing a market economy and
integrating international economy are indispensable objectives. These have opened up
development opportunities for not only beer - alcohol - beverage industry but are also the
opportunities for all business sectors in the country. Businesses have also taken
advantages of these opportunities to develop as well as expand the companies and to
bring Vietnamese brand beyond the territorial borders. Along with that continuous
development and integration process, Hanoi Beer - Alcohol - Beverage Joint Stock
Corporation (HABECO) has made endless efforts to improve product quality, innovate

the designs, replace the obsolete, backward equipment and machines with modern ones
so as to create the best products for consumers. Marketing activities to promote brand and
products have a significant impact on the existence and development of HABECO.
Moreover, the effective operation of the Corporation will bring a better life for employees
and fulfill social obligations. Therefore, the development and promotion of marketing
activities is of tremendous significance. With the knowledge gained at Foreign Trade
University along with the process of studying, investigating and collecting data,
information at HABECO, I chose the topic: “Solutions to promote marketing activities
of Hanoi Beer - Alcohol - Beverage Joint Stock Corporation (HABECO)” to write this
Senior Seminar.

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CHAPTER 1: THEORETICAL BASIS
What is “Marketing”?
“Marketing” is an abstract concept that has been defined in many different ways by
people due to different perceptions. It is defined in Dictionary.com as “the action or
business of promoting and selling products or services, including market research and
advertising”.

According to Philip Kotler, “Marketing is a social and managerial process by which
individuals and groups obtain what they need and want through creating and exchanging
products and value with other”. “Marketing” is also defined by the American Marketing
Association as “the activity, set of institutions and processes for creating,
communicating, delivering, and exchanging offerings that have value for customers,
clients, partners, and society at large”. The term developed from the original meaning

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which referred literally to going to market with goods for sale. Marketing is the action or
business activity that includes market research and advertising, which involves
presenting, promoting, finding out what customers want, using that information to design
products and services, and then selling them effectively or in the best possible way. From
a sales process engineering perspective, marketing is “a set of processes that are
interconnected and interdependent with other functions of a business aimed at achieving
customer interest and satisfaction”. Marketing also refers to activities a company
undertakes to promote the buying or selling of its products or services which include
advertising, selling, and delivering products to consumers or other businesses. Some
marketing is done by affiliates on behalf of a company. Besides, marketing is the process
of getting potential clients or customers interested in your products and/or services. The
key word in this definition is “process”; marketing involves researching, promoting,
selling, and distributing your products or services. On the other hand, marketing is the
process of teaching consumers why they should choose your products or services over
those of your competitors, therefore, it truely is a form of persuasive communication.

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Main marketing activities and their roles as well as functions in Hanoi
Beer-Alcohol-Beverage Joint Stock Corporation (HABECO) in general
Marketing activities were vibrant in 2010. Promotion schemes like price cuts and
discounts were widely used in order to push sales, both by local and international players.
New product launches were also heavily promoted, using the leverage of special events
such as the 1,000-year anniversary of Hanoi. Public Relations (PR) events and
sponsorship of special events are becoming more and more popular because of tightening
legislation regards above-the-line marketing for alcoholic drinks. As a result, marketing
really plays a decisive and coordinating role in connecting the business activities of
corporation with the market, which means ensuring that the business activities of the

corporation are market-oriented, knowing the market - the customers’ needs and desires
as the strongest support for every business decision. Consequently, there are four main
functions of marketing. The very first one is adapting products to customer needs.
Through market research, customers’ information and factors affecting the buying
behavior or purchasing decisions of customers, business manufacturers have produced

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products and goods those satisfy customers even the most fastidious ones. The customers’
needs today have changed so much compared to before, if in the past the needs of
consumers were only products which satisfied the essential and physiological needs,
nowadays, apart from the factors mentioned above, goods must also satisfy higher
demands such as the need for self-expression, spirituality, knowledge, rank, etc. Second
is the distribution function. The distribution function includes all activities with a view
to organizing the optimal mobilization of commodity products from the time they are
finished in the manufacturing process until they are delivered to retail stores or directly
delivered to consumers. Through this function, the intermediary consumers will
potentially be developed. Besides, it also does guide customers on the procedures related
to the purchasing process, organizes the specialized transportation organizations, and
warehousing storage system of goods… Especially, the distribution function in marketing
can detect the stagnation and congestion of distribution channels that possibly occur in
the distribution process. The third function is goods consumption function. This function
acquires two major activities which are price control and sales operations, art of sales.
And the final one is support activities. Through the support for customers, marketing
helps businesses and enterprises meet the customers’ needs quite well and it is an
effectively competitive tool when optimizing costs leads to the difficulties in competing
on prices. These support activities can include advertising, promotions, participating in
fairs, exhibitions and many other customer service activities.

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9


CHAPTER 2: REALITY
I. Introduction to the Corporation (HABECO)
1. Formation and development history
Over nearly 130 years of history with more than half a century of recovery and
development, up to now, Hanoi Beer - Alcohol - Beverage Joint Stock Corporation
(HABECO) has become one of the leading enterprises of Vietnam Beverage Industry.
Many famous product lines those have made up HABECO brand may be mentioned as
Truc Bach Beer, Hanoi Beer Premium, Hanoi Bottled Beer and Hanoi Canned Beer,
Hanoi Draft Beer, etc. And recently, the pair of products for the young - Hanoi Bold &
Hanoi Light - has won the trust of numerous consumers for both quality and style,
conquered beer connoisseurs not only in the country but also even the foreigners.
HABECO underwent over 100 years of construction, development and growth.
Consequently, it is quite a famous and long-standing brand in the Beverage Industry of
Vietnam. Currently, Hanoi Beer - Alcohol - Beverage Joint Stock Corporation has built a
number of breweries in Me Linh, Hung Yen, etc. The precursor of HABECO today used
to be the Hommel Beer Factory, which was established in 1890 by the French with a
small scale of thirty employees for the purpose of producing products in order to serve
the French expeditionary force. By 1935, Hommel Beer Factory and other breweries in
Indochina merged into the Indochina Beer Company. In 1954, the northern Vietnam was
completely liberated. Before the retreat, the French military had dismantled the
equipment, burned all important documents so as to make the factory paralyzed.
However, after peace was restored in 1957, according to the Government’s economic
recovery policy, the factory was restored and began operational with the name “Hanoi
Brewery”.

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Only one year later, on May 1 st, 1958, the first batch of test beer was successfully carried
out by Mr. Vu Van Boc - a skilled worker of the old Hommel Beer Factory - combined
with the help of beer experts from Czech. And on August 15 th of the same year, the first
beer bottle of Vietnam branded “Truc Bach” was born, marking the mastery of
technology and being a considerably important turning point in the brewing industry of
our country. It was the very first product of Hanoi Brewery to be deeply imprinted in the
sentiments of many workers’ generations. And so on, August 15 th is annually chosen as
the Traditional Day of Hanoi Beer. Upholding the dynamic and creative tradition,
HABECO staff have constantly cultivated and raised the qualifications so as to meet the
consumers needs and help the company to grow as well as to increase its production
capacity. In 1960, “Huu Nghi” Beer and Draft Beer were “born”. The factory produced
15 million liters per year. Then in 1970, the amount was raised to 20 million liters per
year. In 1978, the factory was assisted by the East Germans to rennovate the cooking
house and then in 1983, the combined cooking house was put into use, which increased
the capacity to 30 million liters per year. In 1991, Hanoi Canned Beer appeared. In
1993, Hanoi Brewery changed its operating model and changed its name to Hanoi Beer
Company. In 1995, the company sped up the equipment renewal process, invested in new
equipment to replace the old ones with a view to increasing the capacity to 50 million
liters per year. In 2003, the company continued to be transformed into a State
Corporation, named Hanoi Beer - Alcohol - Beverage Corporation, which was
established on the basis of restructuring Hanoi Beer Company and a number of member
units of Vietnam Beer - Alcohol - Beverage Corporation. In 2004, an in-depth technology
renovation project which had increased the company’s capacity to 100 million liters per
year, was completed and put into use, meeting the increasing demands of consumers in
both quantity and quality. Then in 2006, the second factory of HABECO was started
construction in Me Linh district, Vinh Phuc province (now is Hanoi). The event that

marked a turning point in expanding international cooperation relation was HABECO
signed the strategic cooperation with Carlsberg Beer Group in 2007. From July 1 st, 2008,
Hanoi Beer - Alcohol - Beverage Corporation became Hanoi Beer - Alcohol - Beverage

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Joint Stock Corporation (HABECO) with the form of equitization, transforming its
operating model into a joint stock company with fifty years of construction and
development. Up to now, the Corporation has invested in technological innovation and
has purchased almost all modern equipment of Western Europe. During 2010, the
completion of an investment project to build a Brewery with a capacity of 200 million
liters per year in Me Linh district, Hanoi, along with the most modern synchronous
equipment system in Southeast Asia helped the Corporation reach the productivity of
nearly 400 million liters of beer per year. HABECO has now become one of the two
largest brewing corporations in Vietnam. Also in that year, Truc Bach Beer products were
restored. In order to improve competitiveness and meet the needs of consumers, in the
new development period from 2013 to 2018, HABECO continued to invest in improving
productivity, product quality, changing designs and packaging, and diversifying products.
In May 2019, HABECO launched a new identity logo with the slogan: “Sức bật Việt
Nam”. The new logo with the word “HABECO” in bold letters attached to the core
values of the corporation:
H: “Hội nhập nhưng vẫn riêng một bản sắc” (Integration BUT still an identity)
A: “Am hiểu nhưng không ngừng nghiên cứu” (Knowledgeable BUT constantly
researching)
B: “Bền bỉ nhưng sẵn sàng bứt phá” (Persistent BUT willing to break out)
E: “Ép nỗ lực để không ngừng phát triển” (Pressing efforts to constantly grow)
C: “Chung ước mơ để cùng nhau đi tới” (Share dream to go together)
O: “Ôm chí lớn cho một tầm cao mới” (Big will for a new level)
As a result, Hanoi Beer has increasingly affirmed its position in the market, developed

market share and met the domestic consumption needs.

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2. Organizational structure and business production sectors
Organizational structure

13


Up to now, the Corporation plays the role of the Parent Company with many subsidiaries
and affiliates stretching from Central Quang Binh to the Northern provinces and cities.
The parent company is allowed to deal in the following main professions:
a. Producing and trading all kinds of beer, wine, beverage, alcohol and packaging;
b. Importing and exporting all kinds of products such as beer, wine, soft drinks,
alcohol, packaging, raw materials, aromas, essence for the production of beer,
specialized equipment of Beer, alcohol and beverage industry;
c. Investment and consulting services, research, training, technology transfer, design,
manufacturing, construction and installation of works specialized for beer, alcohol
and beverage;
d. Service of science and technology, investment consultancy, creating investment
capital, lending capital, investing capital in subsidiaries and associated companies;
e. Trade in hotels, tourism, fairs, advertising information, organizing material zones,
real estate business and other professions in accordance with law.

The products that the Corporation has produced include
1. Bia chai Hà Nội
2. Bia lon Hà Nội
3. Bia Hà Nội Premium

4. Bia lon Hà Nội Premium
5. Bia chai Trúc Bạch
6. Bia lon Trúc Bạch
7. Bia Hà Nội nhãn xanh
8. Bia lon Hà Nội nhãn xanh

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9. Bia chai Hà Nội Bold & Light
10. Nước uống đóng chai UniAqua

II. The situation of production and business activities of the Corporation
1. Business production situation (2017, 2018, and 2019)
2017:
In 2017, the main market areas of HABECO were subjected to really fierce competition.
In order to maintain and develop the market, the Corporation has made efforts to
implement many solutions such as improving the sales method and sales management, replan the distributor system; Developing synchronous programs and solutions so as to
boost consumption such as: implementing many supporting policies for agents,
expanding and developing the system of sponsor restaurants, building promotion schemes
for green-label bottled and canned beer products in the Central market, implementing a
promotion of pulling off beer cans on the Lunar New Year, launching new Premium
canned beer in the market in November, 2017, etc; and in order to continuously promote
the Corporation’s products to consumers, in 2017, the Corporation participated in many
fairs, held a lot of events and festivals in tourism areas and sponsored for many domestic
and foreign programs, especially organized a series of events in Hanoi Beer Festival in
Quang Tri, Thanh Hoa and Hanoi with a view to strengthening brand promotion;
developing new markets in remote areas; expanding the capacity of Thanh Hoa, Phu
Xuyen and Nam Dinh warehouses; opening 2 more new warehouses in Ninh Binh and
Tuyen Quang so as to increase the market coverage and better serve the needs of

customers.
The situation of implementing a number of production and business targets in 2017 is as
follows:

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- The total output consumption of major products was estimated at 481.9 million liters.

Among them:
+) All-kind-of-beer consumption reached 479 million liters
+) UniAqua drinking water bottled consumption reached 2.8 million liters
- The sales of main products reached 7,867.4 billion dong
- Profit before tax reached 839.3 billion VND
- Profit after tax reached 657.8 billion VND
- Budget contribution was estimated at 2,047.8 billion VND
In 2017, the Corporation launched a new product in the market - Hanoi Premium canned
beer in November and initially received positive feedback as well as the love from
consumers. Not only that, the Corporation also carried out several charitable and social
activities with a total donation of 6.2 billion VND.
Also in that year, the Corporation was honored to receive great awards including:
- National brand
- Vietnam Golden Star Award
- Certification of high-quality Vietnam Goods
- Certification of key products of the Capital

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- Vietnamese goods favored by consumers

- Certification of Vietnam service quality
- Top 10 prestigious businesses of Vietnam food - beverage industry in 2017 announced
by Vietnam Report (VNR)
2018:
According to the situation of production and business activities in 2018, the growth rate
of Vietnam’s beer market tended to slow down and maintained the growth rate of about
5% per year, HABECO’s products were under fierce competition in the North and North
Central market. Special Consumption Tax (SCT) rate increased by 5%, from 60% to 65%
in 2018, and the sharp increase in the price of input materials has increased production
costs, putting pressure on profit targets of units in the Beer industry.
Under the timely guidance of the Government and the Ministry of Industry and Trade
along with the capacity, experience and striving of its member units and the closely
management of the Corporation’s Board of Directors, HABECO has implemented many
solutions to overcome difficulties to strive to achieve the annual plan’s targets at the
highest level. The situation of implementing a number of production and business targets
in 2018 is as follow:

- Total consumption of major products reaches 429.4 million liters, which includes:
• Beer consumption of all kinds is 426.1 million liters
• UniAqua's bottled water consumption reaches 3.3 million liters
- Sales of main products (including excise tax) reached 7,558.1 billion

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- Total profit before tax reached VND 637 billion
- Total profit after tax of VND 517.9 billion
- Budget contribution is estimated at VND 4,645 billion
- Profit distribution plan 2017: The total dividend is 1,751,750,631,879 VND, the
dividend rate is 75.57%

2019:
The year 2019 also marked the Corporation’s rebuilding of its new product and brand
strategy by launching a new brand identity in May 2019 and two new beer products in
June

2019

which

had

been

highly

appreciated

in

the

market.

In order to create momentum for product consumption, revenue growth, HABECO has
promoted investment in sales, leading to a sharp increase in selling expenses in the first 9
months of 2019, mainly increasing advertising costs, promotion costs and the cost for
sales support.
With the determination to complete and even exceed the plan of the company, by the end
of 2019, the amount of money HABECO has paid to the State budget is estimated at
4,888.63 billion VND.

Beside the advantages from the macro environment, HABECO will continue to face the
difficulties from the fierce competition among enterprises in the same industry, especially
the competition between the world’s leading beer brands.

As the only beer enterprise in which the State holds a dominant share of Vietnam, with

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the competitive pressure from foreign breweries having financial potential, the desire to
dominate and control the domestic market; HABECO aims at putting all resources
determined to maintain the market share and reinforce as well as develop the National
Brand.

The situation of implementing a number of production and business targets in 2019 is as
follows:
- Consumption of major products: 438.1 million liters.
Inside:
• Beer of all kinds: 434.5 million liters
• UniAqua bottled water: 3.6 million liters
- Sales of main products: 8,270.8 billion
- Profit before tax: VND 693.37 billion
- Profit after tax: 539.54 billion VND
- Budget submission is estimated at 4,888.63 billion VND.

2. Production and business results over the years

Targets
Unit

Total consumption

Million

2017

2018

2019

486,3

429,4

438,1

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liters

Sales Revenue

Billions

7.867,4

7.55,1

8.270,8

605,1

1.344,2

1.446,7

657,8

517,9

539,54

dong
Cost

Billions
dong

Profit after Tax

Billions
dong

Habeco's revenue, profit and marginal profit all grow again in 2019

3. Future development goals, strategies and plans

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In the context of increasingly renovation and development country with deeper
international integration, many international trade agreements have created many
opportunities but also brought great challenges for Vietnamese businesses. Successful
international integration is to contribute positively to creating sustainable and rich
social values.
Development orientation in the following years, Habeco determines the central
strategy of the business is to continue researching and developing new product lines
with higher quality, in accordance with consumer tastes.
At the same time, promoting the strategy of sustainable brand development,
improving the competitiveness of the brand in domestic and regional markets;
together with the commitment to the community, to fulfill the social responsibility of
a national brand enterprise, to contribute positively to the overall development of the
country.
Currently, enterprises are keeping the initiative and creativity spirit to seize
opportunities from the 4.0 industrial revolution. Accordingly, Habeco has joined
hands with FPT to deploy an overall enterprise management project (ERP) to
gradually integrate businesses in the context of the digital revolution, contributing to
enhance the strength and position in the market. .
In addition, Habeco will expand the market to the whole Central and the South and
boost exports, not only shading the northern and northern provinces of Vietnam as
before.
In addition, the construction and development of the distribution system is an
important goal that Habeco determines to focus on investing all resources.

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The consolidation of sales will make the cooperation between trading companies and
agents will change towards streamlining and better quality. With the motto "Prestige

with customers is the foundation of prosperity", HABECO will build the most
comprehensive sales and support policies for agents to benefit both parties. The
human element is considered by HABECO to be the core to create momentum for
development, accordingly, HABECO has promoted the training of market employees
with a high sense of responsibility, enthusiasm for the work to be in charge in the
markets. key schools, maintaining relationships with agents, restaurants.
Habeco identifies a centralized deployment with two key points: refreshing the image
of Hanoi beer in the eyes of customers, from draft beer to bottled beer in Hanoi and
Truc Bach beer as well as researching and building new products.
In particular, Habeco's conspicuous strategy is to change its image to become closer in
the eyes of young customers.
This strategy is most evident when recently, the oldest beer company in the capital
introduced two new products: Hanoi Bold and Hanoi Light in the premium beer
segment, which are thought to be completely different from the products of the
Habeco and others in the market, marked a strong return to the young segment.
Hanoi Light has a mild flavor with bright yellow beer on a transparent white bottle
background, while the "brother" Hanoi Bold has a striking green color and a rich beer
quality.
Hanoi Beer has always been a reputable brand trusted and selected by consumers,
however, to continue nurturing the Vietnamese movement to prioritize Vietnamese
goods. Habeco always determines the responsibility of the business to continue
producing quality products, forcing efforts to constantly develop, improve
competitiveness, provide a thoughtful after-sales service, to meet the needs.
increasingly high by consumers.

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CHAPTER 3: MARKETING SOLUTIONS TO PROMOTE THE
DEVELOPMENT OF THE CORPORATION

Main Marketing Solutions (4P)
1. Price
HABECO’s products are priced based on many relevant factors such as cost of goods sold, prices
of products in the same segment, brand strategy, and competition in the market, seasons, etc.
Based on many relevant factors, the prices of the products are flexibly adjusted so as to increase
the level of competitiveness of products among customers.

2. Product
-

HABECO develops a diverse product system in order to meet the different needs of
customers. Currently, the product segments include: affordable (Hanoi Draft Beer), popular
(Hanoi Red Label Beer, Hanoi Green Label Beer), premium (Hanoi Premium Beer, Hanoi
Bold & Light Beer ), and high-end (Truc Bach Beer). Each product line is packed with
different capacities and packaging forms so as to serve different consumer’s purposes.

-

The changes of packaging designs are applied regularly according to the trends and tastes of
consumers. In addition to changing the packaging of the products, HABECO also researches
new products to better serve the diverse needs of customers. The products are developed
according to the specific orientation of each brand. They mainly focus on young and dynamic
customers.

-

Products are researched and adjusted according to the taste and consumption habits of the
consumers from distribution market region. There are many factors such as: the bitterness of
the beer, the intensity, the foam, the ice-drinking habits of the Central and the South, etc. In
the process of product circulation, information related to customer feedback is collected to
research and adjust accordingly.

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3. Place
-

HABECO's distribution system was built in the direction of forming trading companies in
each region to increase level of competitiveness in market areas. Each trading company is
responsible for finding customers, signing distribution contracts, implementing promotions
and sales support for customers in the assigned market area; and also responsible for the
product as well as enjoy the supportive sources of the Corporation according to actual
business results.

-

Distribution system of these commercial companies includes: Level 1 agents - distributors,
Level 2 agents - Retail shops, restaurants… Commercial companies deploy direct selling
policies to the system of Level 1 agents - distributors. For lower distribution levels, it is
implemented through the system of Level 1 agents - distributors.

-

The sales policies, rights and obligations of Level 1 agents - distributors are stipulated in the
sales contract between the trading company and the customers. In addition, sales promotion

programs are published in legal documents such as decisions and notices…

4. Promotion
-

HABECO continuously implements solutions to increase market share and consumption,
coordinates with trading companies to implement support programs to achieve the
Corporation’s consumption plan. Sales promotion policies are constantly changed based on
the market situation and the activities of competitors.

-

HABECO continues to innovate in brand awareness and communication. Each brand group
will have its own development strategy in line with the general brand development
orientation of the Corporation: develop a plan and organize the implementation of
communication in a new direction, target young people and use online marketing channels,
combined with traditional marketing.

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