The definition, role and responsibility of marketing department at heineken vietnam brewery the interrelationship between others departments and marketing in heineken vietnam

REFERENCE...16 Table of Figures Figure 1: The Logo of Heineken...1 Figure 2: Customer loyalty process...2 Figure 3: Heineken Vietnam's Sustainable Development Strategies...4 Figure 4: Th

I INTRODUCTION 1

II MAIN BODY 2

1 The definition, role and responsibility of Marketing Department at Heineken Vietnam Brewery 2

2 The interrelationship between others departments and marketing in Heineken Vietnam .8 III CONCLUSION 11

IV APPEDIX 11

V REFERENCE 16

Table of Figures Figure 1: The Logo of Heineken 1

Figure 2: Customer loyalty process 2

Figure 3: Heineken Vietnam's Sustainable Development Strategies 4

Figure 4: The campaign “When you drive, never drink” of Heineken cooperating with Uber 4

Figure 5: The new Heineken bottle 5

Figure 6: Heineken Countdown Party 2018 6

Figure 7: Top 10 highlight campaign on Tet Holiday 2018 7

Figure 8: The system of Heineken Vietnam 8

Figure 9: Departments in Heineken Vietnam 8

Figure 10: The announcement about recruiting of Heineken Vietnam 9

Figure 11: The process of producing 11

I INTRODUCTION

Heineken Vietnam is a brewery belonging to the Heineken Group, one of the leading factories in the world Originating from the Netherlands, Heineken has width of the history of more than 150 years, manufacturing and disseminating over 250 beer brands and fermented apple juice in more than 180 countries

Figure 1: The Logo of Heineken

From the beginning with around 20 employees, today Heineken Vietnam has more than 3,000 employees and become the second largest brewery in Vietnam Every year, Heineken Vietnam contributes significantly to the Vietnamese economy, accounting for 0.88% of national GDP

In Vietnam, Heineken manufactures and distributes beer brands: Heineken, Desperados, BIVINA, Larue, BGI, Tiger, Affligem and Strongbow (fermented apple juice) HEINEKEN operates six breweries throughout Vietnam, in Ho Chi Minh City, Tien Giang, Vung Tau, Quang Nam, Da Nang and Ha Noi

(Heineken Vietnam Brewery, 2018)

II MAIN BODY

1 The definition, role and responsibility of Marketing Department in Heineken Vietnam Brewery

a The definition of Marketing

In my opinion, marketing is the process of a business in order to create the own value and attract more customers According to Kotler and Armstrong (2013), they defined marketing as the process which firms can create value and build long-lasting customer loyalty to gain value from them inversely As market demand always changes, this process never stops Moreover, in order to create strong relationship with customers, the company must identify the customer needs, especially about the products and services Because relationship marketing may promote the increased demand and customer loyalty (Ta, n.d)

In fact, the value is in the form of benefits which the company provides to meet the need

of customers by developing products or services Customers buy the product not only for their own benefit, but also due to the core of product which company create (Noel, n.d) Besides, customer loyalty can be simply understood as the act of purchasing one product repeatedly in

a long time or reusing one service at the same company In order to develop a strong relationship with customers, company must satisfy them; as a result, it encourages consumers to shop more over the period of time

Figure 2: Customer loyalty process

(MBA Skool, n.d) There can surely be no better demonstration of what marketing is about than looking at what has happened to Heineken The Heineken’s signature flavor is Heineken A-Yeast - a type of yeast, and pure, natural ingredients with selecting barley and hops carefully All of those ingredients harmony creates flavor and delicate fragrance for each Heineken cup (Dantri, 2016)

Therefore, Heineken has built its brand value based on a solid foundation about high quality

of products which make it stand out from its competitors This is necessary because of the difficulty in really distinguishing one brand of beer from another in the eyes of the consumer According to the sustainable report 2015, it is because Heineken Vietnam researched the market each month, they can understand the needs and wants of customer more easily In Vietnam today, there are many competitors of Heineken such as tiger, Hanoi beer, Saigon beer, etc., all compete fiercely on advertising to occupy their own market In addition, over the years, Heineken has invested heavily in marketing to connect their fans to a complete new level of experience which is more sophisticated such as producing music and sport events, organizing marketing campaigns, etc Thus, these affect positively customers and build customer's loyalty in a long time (Nhat, 2018)

In conclusion, marketing can be known as the process to create value and relationship with customers After all, I will indicate the important role and responsibility

b The important role and responsibility

Working and transmitting the brand value

Brand value is the benefits that the company has when owning a brand There are 6 main benefits: attracting more new customers, maintaining loyal customers, bringing high price policies, expanding brands and distribution channels, creating barriers with competitors (Couchman, 2017)

The objective of Heineken Vietnam is focuses on people and the planet to make a better Vietnam According to VnEconomy (2018), at the launch of Vietnam Sustainable Business in

2017 in Hanoi, Heineken Vietnam is recognized as "the most sustainable enterprise in Vietnam" HEINEKEN Vietnam's Sustainable Development Strategy focus on six key areas:

“Responsible Disseminate Drinking”, “Water Conservation”, “CO2 Emission Reduction”,

“Community Support”, “Sustainable Supply”, “Health and safety"

Figure 3: Heineken Vietnam's Sustainable Development Strategies

Significantly, in 2017, Heineken Vietnam invested approximately 15 billion VND for a new campaign named “When you drive, never drink” and sent a meaningful message to people: Responsible drinking In order to raise the awareness of Vietnamese about the risk of driving when using alcoholic drink, the company cooperated with Uber and gave away 130.000 free Uber code for customers (even if they do not drink Heineken) in 7 big cities As a result, this campaign appreciated more than 8.3 million people and it was really successful in inspiring behavior change.[1]

Figure 4: The campaign “When you drive, never drink” of Heineken cooperating with Uber

(Heineken Vietnam Brewery, 2018)

Thus, not only beer production and economic development, but Heineken Vietnam is also very concerned about people and the activities of environmental protection, changing the brand image in customer’s mind

Identifying customer needs:

Customer needs is not only a question of working out what they want now, but the marketing officer also need to try to predict the future which influence customer’s decision There are 3 main questions to identify customer needs: What are environmental factors that affect customer needs and wants? What are the motivations and attitudes that affect their buying behavior? How the company can analyze the techniques of market research (discovering the thought and wants of customers)? (Brassington & Pettitt, 2013)

For example, in 2013, Heineken Vietnam launched the new package design to create a new and appealing brand image to customers The new Heineken bottle strengthens the brand’s visual character with a longer neck, special emblazoned bends and logo, clear see-through pressure sensitive labels on the front, neck and back and an attractive new bottle cap According to Mark, he said that one of the insights they have studied has shown that men are sometimes not only sophisticated in their thinking but also sophisticated, or attention

to detail, especially on high end products, such as the edge of an expensive watch or seam

of a vest Probably, this research focused on around 1000 males (25-40 years old) who have high income and usually drink Heineken in different areas Thus, the reaction of consumers in the past time is very excellent

Figure 5: The new Heineken bottle

(Brands Vietnam, 2013)

To summarize, Heineken designed the new embossing bottles which create a perfect experience for consumers to enjoy

Satisfying customer needs [2] :

Company often set marketing strategy plans in order to meet the customer demands With the main objective of promoting the brand, Heineken Countdown Party is held annually

to celebrate the New Year that is one of the most successful events Although some competitive companies

Figure 6: Heineken Countdown Party 2018

It is can be seen that in Tet holiday 2018, Heineken’s campaign belongs to the top 10 highlight campaigns, attracting a lot of audiences by unique contents According to Brand Vietnam (2018), Heineken brought to the music party named "Travel to the Future" with a campaign highlight point of 35.62 Thanks to a large average interaction index (on the average, every 70 interactive posts), it helps Heineken's campaign attraction reach 46.82 Although there are still a lot of negative discussions about the organization, this is still the most anticipated music event on Tet holiday in big cities Viral post on influencer's Facebook pages and local fan-page received many interesting discussions to attend the event, helping the campaign spread by 30.82

(Nguyen & Tran, 2018)

Figure 7: Top 10 highlight campaign on Tet Holiday 2018

2 The interrelationship between others departments and marketing in Heineken Vietnam

Figure 8: The system of Heineken Vietnam

In Heineken Vietnam Brewery, there are 6 departments: supply chain, procurement, commerce, corporate affairs, human resource/legal and finance In a company, the most important thing to develop a business plan is to coordinate effectively the departments Each department has its own functions and sometimes they need to work independently to accomplish their goals

Figure 9: Departments in Heineken Vietnam

(Heineken Vietnam Brewery, 2018)

a Finance Department

The function of finance department is to control and invest the money reasonably At Heineken Vietnam, the marketing department also needs to cooperate closely with the finance department to carry out plans related to research, promotion and distribution

According to MSN, Heineken's revenue increased 5.27% in fiscal 2017 (25.15 billion) compared to 2016 For example, in 2017, the Heineken brand has invested 10% of its media budget to encourage consumers not to drive after drinking alcohol The company delivered a responsible drinking message to more than 8.3 million consumers, helping to ensure safety and a perfect experience when consuming alcoholic beverages (by giving away free Uber code) Probably, through this campaign, Heineken has impressed consumers and this is a typical example that leads to an increase in sales by 2017 Furthermore, Heineken also had suitable policies about pricing to raise the revenue (it was mentioned in 2b/Satisfying the needs/Price) (Heineken Vietnam Brewery, 2018)

Thus, this is the strength of Heineken Vietnam in managing and controlling the budget effectively

b Human Resource Department

The HR department plays an important role in helping the company find, attract, hire and develop people It is necessary to recruit and select right candidates for the position because this decides the effectiveness working of company The marketing department of Heineken Vietnam may depend heavily on the HR department because of the accurate selection, recruitment, training, placement and motivation for new employees

By contrast, in Heineken, the marketing department also advertises brand in order to help

HR department easier to attract new people According to Leo (2017), Heineken is considered one of the best working places in Vietnam Especially, the marketing department can stress the working environment at Heineken Vietnam because people tend to be attracted with a firm that has a good reputation and a strong mission and vision

c Product Department

The marketing department provides market information for manufacturing plans and operations, which satisfying the demands of the market at the lowest cost On the contrary, the production department is the only basis for creating goods and services for marketing The amalgamation between marketing and production management will reduce the waste of time and resources, creating a high performance in the operation The product department is considered as the decision to create services or products, and the price increased value (Nguyen, n.d)

For example, after two years of researching the market meticulously, Heineken has launched a new packaging design to meet the increasing demands of consumers (It was mentioned in 2b – identifying the customer needs) According to Yap, the decision to pursue this project requires the upgrading of all breweries and equipment around the world It also affects the re-use of bottles without compromising on quality In addition, to change the look

of the bottle style is consistent, the company also carved the logo on Heineken glass (Brands Vietnam, 2013)

III CONCLUSION

By studying the research and understanding of Heineken's strategies, the subject has brought to readers about Heineken Vietnam's appearance and success in the field of marketing With a long-term and flexible development strategy, Heineken will surely affirm the spirit of a world-class brand, leading the Vietnamese beer market

[1] – 1b/Working and Transmitting brand value

Another typical campaign of Heineken Vietnam is that the company converted about 54,000 tons of rice husk - an agricultural waste product - into biomass that produces heat This initiative has helped 4 in 6 brewers meet the heat demand for 100% brewing with carbon-neutral renewable energy and generate significant revenue for farmers and energy provider biomass Otherwise, they continue to find ways to take advantage of waste from factories 99.01% of the waste is recycled and almost no waste is disposed of by landfill Similarly, the treated waste water

is recovered for use in various purposes such as watering plants They even got gas from the wastewater treatment system, which is used for biogas to generate heat

Figure 11: The process of producing

(Heineken Vietnam Brewery, 2018)

[2] – 1b/ Satisfying customer needs

Marketing mix is the marketing tools used by businesses to achieve marketing objectives in the market In particular, 4Ps (product, price, place and promotion) is a traditional model for analyzing marketing mix As a result, by the successful use of the 4Ps in the marketing strategy, Heineken has satisfied their customers (Brassington & Pettitt, 2013)

Product

Design

At Heineken Viet Nam, various types of packaging and bottle types are available in various capacities in the form of cans, bottles, and kegs Unique curves on the neck and back

of the bottle, in addition to special floating marks as a sign of quality and authenticity Otherwise, Heineken’s brand is new green and red star symbol to identify the largest beer in the world, which has been uploaded on its logo

Quality

The Heineken’s unique flavor is from A-Yeast and pure, natural ingredients with the processed concentration of 5% ABV In brewing beer, the pour CO2 help to ensure the taste’s beer always pour Heineken has to perambulate a stringent quality control so that the quality

of beer is maintained It must go through over 120 test steps from raw materials to finished products (Heineken Vietnam Brewery, 2018)

Price

In the Vietnam beer market, currently, there are four main products of Heineken:

Product Image Retail price Wholesale price

(barrel)

250ml 18,000 – 22,000 VND 380,000 – 420,000VND bottled beer (0.78 to 1.1 USD) (20 bottles)

330ml 15,000 – 18,000 VND 354,000 – 420,000VND canned beer (0.73 – 0.9 USD) (24 cans)