Group-6-Group-Assignment-Mkt101-3 (1).Pdf

Add a subheading GROUP 6 CLASS MKT1614 TEACHER NGUYEN HOANG PHUONG LINH PERIOD FALL 2021 Due date 7 November, 2021 GROUP ASSIGNMENT Subject MKT101 PRINCIPLES OF MARKETING FPT UNIVERSITY 1 INTRODUCTION[.]

GROUP 6

CLASS: MKT1614 TEACHER: NGUYEN HOANG PHUONG LINH

PERIOD: FALL 2021 Due date: 7 November, 2021

GROUP ASSIGNMENT

Subject: MKT101 PRINCIPLES OF MARKETING

FPT UNIVERSITY

Company Background 2

Company Description 3

Profile Of Target Customer 3

Target Marketer 3

SITUATION ANALYSIS Sabeco's Macroenvironment 4

Sabeco's Microenvironment 6

MARKET ANALYSIS Market Research 7

SWOT Analysis 10

Strategic Objectives 11

Marketing Mix 4Ps 12

RECOMMENDATION 19

CONCLUSION 19

Table of contents REFERENCES 20

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Forerunner of Saigon Beer Alcohol Beverage Corporation, formerly Southern Breweryofficially received and managed Cho Lon Brewery from BGI of France and formed SaigonBeer Factory (1977).

With a long tradition of over 100 years in the beer industry, the product quality of SaigonBeer Company has constantly improved thanks to the synchronous combination oftraditional technology, modern equipment, and foreign ingredients imported fromcountries with famous raw materials in the world with the innovation of managementmethods One of the important factors contributing to stable product quality is the system

of advanced technical inspection facilities which are assessed to meet national standardsand the quality assurance system for bottled and canned beer products compliant withISO standards

Company Background

The company is in business with seven areas which are: beer, wine, beverage In addition,the company now focuses on investing in the financial and banking sector Sabeco's mainfocus is still on the production and trading of all kinds of beer, which is estimated to accountfor 96% of the company's revenue, followed by soft drinks at 2.6% and alcohol at 0.6%

Currently, there are 28 affiliated members and spread throughout the provinces and citiesacross the country with a large distribution network at home and abroad

Sabato’s main products: Saigon beer and beer 333

The unique taste of Saigon Beer is the crystallization of the products of the rich southernland and the generous spirit of the Saigon people, becoming an indispensable part of dailyjoy and sorrow

After 145 years of establishment and development, with many difficulties and challenges, up

to now, although there have been many famous beer brands in the market, Saigon Beer andBeer 333 are still brands The Vietnamese brand leads the Vietnamese beer market and is onits way to conquering demanding markets such as Germany, the USA, Japan, theNetherlands, etc

Company description

Profile of target customer

Saigon Beer Company identifies customer profiles as marketing strategies are developed.Standard customer profiles define the general characteristics, behaviors, and regimes thatstandard customers have, and this knowledge is used when creating marketing andpromotional materials Having a solid and relevant target customer profile can increase theircompany's bottom line as people have a need to buy a product or service

Define their customer standards based on who will buy the company's products or services.Determine age group, gender, and occupation prevalence to get a common way Narrowdown the common personality by adding the same position, income level

For example, determine why this target customer always chooses Saigon beer over anotherbeer brand

In the current period when the economy is affected by the world financial crisis, consumerstend to save, they will spend less on all items, including soft drinks This makes it difficult forthe company, especially for beer and wine products because these are not essential items.

For Sabeco, the impact of the strong increase in prices of services, especially 40 key inputmaterials for production and business, has led to an increase in transportation costs.production activities of the Corporation encountered many difficulties In addition to theincrease in the price of input materials for production and business, the increase in the price

of iron, steel, and cement, along with the increase in bank interest rates, have greatlyaffected the progress of investment projects Sabeco's investment

Vietnam's accession to the World Trade Organization (WTO) opens up opportunities butalso brings many difficulties for Vietnamese enterprises and the beverage industry is noexception when it has to compete fiercely with foreign companies foreign companies withstrong brand, finance, technology and management capacity

The legal system in our country still has some unclear points, so it also greatly affects theprotection of copyright as well as unfair competition companies that adversely affect thedevelopment of the company

The situation of natural disasters, storms and floods, makes it difficult to transport fromthe place of production to the place of consumption

Technological factors

In today's competitive era, product quality is a fundamental factor that every business musthave if it wants to survive Therefore, to be successful, you must make a remarkabledifference Using modern production technology will help businesses achieve the above goal.The investment in advanced technology and techniques in the world will increasingly shortenthe gap between Vietnam and developed countries

Stemming from the need to improve the quality of actual labor, providing managers,technicians, and skilled technical workers for the SABECO system and for the society

SABECO always puts on top of the quality assurance of food safety and hygiene in theproduction process of its products All input materials, additives and processing aids arealways strictly inspected by the Corporation and must have a certificate from the Ministry ofHealth for permission to use, or be on the "List of substances additives permitted for use infood The source of water used for brewing and brewing beer is the city's tap water, which istreated through a treatment system to ensure that it meets the standards of the brewingwater and food hygiene, and safety Closed modern machinery and equipment systems, aswell as strict control in the production process, will ensure that semi-finished products andfinished products always meet the requirements of microbiological criteria Bottles, cans,bottle caps, can lid before being put into the filling process are also treated and checked toensure that there is no penetration of microorganisms into the product The Corporation hasannounced the standards of quality, food hygiene, and safety for its products and sentsamples every 6 months to check the physicochemical and microbiological criteria in China.technical center for quality measurement standards

They are famous competitors in the market:

Habeco, Heineken, Tiger, 333, Huda, Hanoi,

Imported from abroad

Price of raw materials increased by 30% to

70% of all kinds of malt (malt), high flavor,

Wine, soft drinks,

The bargaining power of the customer

With over 300 breweries, output over

billion liters per year, and with the

presence of other world-famous beer

brands Beer products have brought

customers in Vietnam many choices This

has created huge competitive pressure on

beer brewing enterprises

Suppliers

The bargaining power of suppliers Rawmaterial suppliers for the companyalways ensure a stable source of goods,good quality, on time, meeting therequirements for the production of theCompany

Potential competitors

The risk of potential changes The Alcohol Beverage industry alwaysmaintains a high growth rate, productionvalue, and added value is constantlyincreasing These are the factors thatattract not only large domesticenterprises to enter the industry

Beer-Alternative products

The threat of substitute products.Recently, after a series of doubts aboutthe effect of alcohol on gout, scientistshave finally proven this relationship isreal and beer is the most dangerousthreat Thus beer with a low alcoholcontent appeared

Secondary research about the using level of SABECO compared to other competitors

During the period of 2011-2015, the Vietnamese beer market continued to heat up when most

of the leading domestic brewing enterprises such as Saigon Beer-Alcohol-Beverage Corporation(SABECO), Corporation Hanoi Beer - Alcohol - Beverage Joint Stock Company, or VietnamBrewery Co., Ltd VBL continues to invest in a series of new projects, increasing the capacity offactories and expanding the beer distribution network in the area Japan's fourth-largest beercompany has also entered the market with the first factory officially put into operation inNovember 2011, officially joining the fierce competition of a series of other imported beerbrands on the Vietnamese beer market

In general, domestic brewing enterprises are holding the majority of the market share and aresupported by consumers in different segments For the businesses that are new to the market,building brand awareness level can require a lot of resources but if they understand the beer-drinking habits of Vietnamese people, the factors that affect brand awareness level andapproach to the appropriate distribution channel, Vietnam is still a very potential beerconsumption market

Market research according to the user level of SABECO's products and consumer trends

Summary of survey results

Based on the online survey group of more than 60,000 members of the Vinaresearch.netwebsite, 1030 survey participants were asked how often they drink beer and the answersshowed that the regular beer drinking rate is more than 38.3% In which, more than half of these

395 people said that they often drink beer on average 2-3 times a week

Among 395 people surveyed in the age group of 20-35, 4 out of 10 people drink beer 2-3times/week and 4 people drink beer 3-4 times/month on average Meanwhile, in the youngergroup, from 18-19 years old, the level of using beer is about 3-4 times/month

For provinces and cities across the country, Hanoi is an area with a much higher rate of regularbeer drinking (2-3 times/week) than other areas, accounting for nearly 70%

The beer brand that is best recognized by consumers (both first and foremost) is "Heineken",followed by "Tiger" and "333 Beer" In addition, some brands that are well recognized by usersare "Hanoi Beer" and some beer lines of SABECO company

The 4 most frequently consumed brands are "Heineken", "Hanoi", "Saigon export" and "Beer333" In which, "Heineken", the brand symbolizing class and having the taste "delicious, smooth,easy to drink, no headache after drinking" is the most frequently used beer, accounting for37.7% "Hanoi beer" with the comment "Very delicious and rich" accounted for 21.0% And

"Saigon export" is the third most frequently used beer brand (13.4%), rated as "Affordable, easy

to drink"

Beer produced domestically with forms such as "Canned beer" or "Bottle beer" are the mostpopular among consumers, accounting for more than 49% of the total number of respondents

MARKET RESEARCH

There are 60.1% of customers who recognize products from TV, a fairly high rate ofsuccess in advertising products by TV and also find an opportunity in developing themarket in the form of TV advertising for customers who have not used it The majority ofcustomers know about SABECO's products through direct sales and televisionadvertising (56.23%) Therefore, widespread distribution will bring high efficiency inproduct consumption The awareness rate from Newspapers and magazines is stilllimited to only 16% of the total users 23.6% know SABECO's products from the Internet,but even so, the cost of SABECO's online advertising is not large, so it is quite effective.This is a communication tool that SABECO should exploit in the future According to theresults obtained, customers known from friends and relatives accounted for a largepercentage (72.6%) Therefore, customer relationship management should be givenproper attention Conclusion in advertising and marketing channels to let customersknow SABECO's products through relatives is very effective, accounting for a largepercentage of customers' choice of products, so SABECO should focus on customerrelationship service.

2 Primary research about consumption trends of SABECO products and its development in the market

To find out detailed information about consumption trends of SABECO products and theirdevelopment in the market, group 6 did a more detailed survey to give the most accurate data.The survey form was filled out by 512 people on the Vinaresearch.net website and people andpeople around the area our team members live in, starting on October 18, 2021, and ending onNovember 2, 2021 Survey details are located in: forms.gle/KkonanmM1DHRwd7U9

Obtained results

Based on statistics on 512 samples, we observed that the using rate of 469/512 accounts for91.60%, so it can be confirmed that Saigon Beer is mostly known and used by everyone, showingthat market campaigns are doing good

Of the 469 people who have drunk beer, people who used beer for less than 1 year,accounting for 26.4%, users from 1-2 years accounted for 19.2%, users from 2-3 yearsaccounted for 31.7%, users over 3 years accounted for 22.6% The special thing is thatcustomers using less than a year accounted for 24.4% of the total respondents, showing thatSaigon beer's ability to attract new customers is very high, so Saigon beer now has a goodposition in the market and is still developing strongly

The level of repeated use once a week has people accounting for 8.7%, using twice a weekhas people accounting for 10.6%, more than twice a week has accounting for 31.2% andoccasional use there are a number of people, accounting for 49.5%

According to statistics, the majority of weekly beer users have a mid-range income and arethe average income of the countryside People with higher incomes have a need to use moreexpensive products than SABECO's products Thus, SABECO needs to focus on targeting themiddle/low-income customer segment And promote marketing to the high-incomecustomer segment to affirm the position that low price but high quality.

Besides, 100% of people who have used SABECO's products know about Saigon Lager and

333 beer Beverage products such as Chuong Duong soft drinks have a very low awarenessrate (only 13.4%) ) Therefore, the company needs to promote communication and payattention to the promotion of its soft drink products

A high percentage of users rated the service quality of SABECO's customer service (86.4% ofusers chose level 4 or higher), no one rated it at level 1 So about customer care service hasreached a relatively good level

76.40% of users choose “no” for the question of whether they want SABECO to add any moreservices” and contribute: should focus on beer products Thus, beer products have left agood impression on customers of SABECO

Customers use it partly because the supplier's reputation is quite high According to theobtained data, 13% of customers use it because of the product's features It can also be saidthat in the customer's choice to use, the feature factor of the service is of little interest or theservice has few features 52.9% of customers use it due to the reasonable price This showsthat the issue of price is a factor that customers care about in making a decision to use.Therefore, the company should pay attention to the price problem, which can lose manycustomers when the price is high 54% of customers use it because of the taste of SABECO'sproducts The company should research to find more new, better, and more suitable flavorsbecause flavor accounts for an important part of customers when using There are few userswho think that SABECO's products have many types to choose from (10.2%)