INTRODUCTION OF BUSINESS AND PRODUCT
PART 2: ANALYSIS OF THE MICRO & MACRO SITUATION
We extend our heartfelt gratitude to Hoa Sen University for providing us with a conducive learning environment, and we especially appreciate the guidance from our lecturers A special thanks goes to Teacher Phan Minh Tuấn for his invaluable support in helping us complete our report.
Limited knowledge can lead to challenges in understanding and addressing the assigned problem We welcome your insights and guidance to improve our clarity and comprehension.
PART 1: INTRODUCTION OF BUSINESS AND PRODUCT 8
PART 2: ANALYSIS OF THE MICRO & MACRO SITUATION 12
4.1.2 ACTUAL RESOURCES OF THE BUSINESS 22
Figure 1 Office complex of Heineken Vietnam Brewery - Vung Tau 9
Figure 2 Tiger beer product lines 10
Figure 3 Market share of beer manufacturing companies in Vietnam 2021 (Heineken includes 2 main brands: Heineken beer and Tiger beer) 11
Figure 4 Global beer consumption by country 13
Figure 6 Tiger monthly growth around 2022 21
Figure 8 APB's revenue and profit have grown steadily over the years 24
Figure 11 Music event : virtual reality concert tiger remix 32
Figure 12 Son Heung-Min Teams Up With Tiger Beer to Encourage
Figure 13 Music event : virtual reality concert tiger remix 33
Reason for choosing the topic
The topic of distribution is crucial in the business activities of enterprises, serving as a vital marketing tool alongside product strategy and promotion A well-developed distribution system not only offers a competitive edge but also fosters long-term market advantages However, establishing an effective distribution channel requires significant investment in time, money, and effort, blending both science and art Tiger Beer, a prominent brand in Vietnam, has successfully created a comprehensive distribution network that ensures product availability from North to South, utilizing distributors, agents, and retailers Despite fierce competition, Tiger Beer maintains its market presence by effectively coordinating its distribution strategy with other marketing variables This analysis of the distribution channel system of the Tiger brand in the Vietnamese market aims to explore how the brand develops its distribution strategy and provide insights for future improvements.
This essay aims to gather essential information about Tiger beer brands and their products within the Vietnamese market, while analyzing the distribution channels used for Tiger beer It evaluates the strengths and weaknesses of the current distribution strategy and proposes future solutions The focus is on researching, synthesizing, and analyzing the distribution channel system of the Tiger beer brand, assessing its current situation, and offering recommendations for improvement.
Tiger Beer’s marketing strategy showcases its dominance in the Asian beer market, reinforcing its status as a globally recognized brand The company continually reinvents itself while maintaining its signature taste and quality, appealing to the modern consumer This approach has solidified Tiger Beer’s position as a top choice among young Asians For more insights, visit Digital Restaurant, a reputable source for the latest case studies.
PART 1: INTRODUCTION OF BUSINESS AND PRODUCT
History of formation and development
Tiger beer was established in 1930 in Singapore, and in 1931, Heineken partnered with local companies Neave and Farser to create Malayan Breweries Limited (MBL) This strategic joint venture significantly strengthened Heineken's global presence, resulting in the company holding 95.3% of MBL's shares.
In October 1932, Singapore launched its first beer brand, Tiger Beer, under Heineken Asia Pacific In 1990, the company rebranded to Asia Pacific Breweries (APB) to enhance its presence in the Asian market Through a deep understanding of Asian culture and consumer preferences, Tiger Beer has successfully established a strong reputation among its customers.
The powerful Asian tiger symbolizes the brand identity of authentic Asian beer, solidifying its presence in the market while also reaching global exports As the flagship brand of APB, it stands out as one of the largest beer brands worldwide.
Brief i ntroduction of the Company :
Produced by Heineken Asia Pacific, forerunner
Tiger Beer is a Singaporean beer brand that was first launched as Asia Pacific Brewery.
The company is a joint venture between Heineken N.V and Singapore
Tiger is one of the biggest beer brands in the world, and Vietnam is one of Tiger's most beloved markets.
Figure 1 Office complex of Heineken Vietnam Brewery - Vung Tau
Brief introduction of the P roduct :
Currently, in the Vietnamese market, Tiger Beer mainly provides this market with beer lines such as:
Tiger Original beer (Tiger brown): is one of the most popular and consumed beers in huge quantities From restaurants to street eateries, everyone loves this beer.
Tiger Platinum Wheat Lager Beer: Is a new line of Tiger beer with many improvements both inside and out, bringing a new wave to attract consumers' attention.
Tiger Crystal Beer (Silver Tiger): is a new product of Tiger beer, using the unique cold fermentation technology Cold Suspension, deeply cooled by Crystal Cold technology
Figure 2 Tiger beer product lines
Tiger Beer is capitalizing on the growing demand for light beers among young urban drinkers who seek a smooth yet flavorful option for various social occasions As a result, Tiger has positioned its Tiger Crystal beer as a flagship product for the brand's future Notably, at the 2010 World Beer Cup, Tiger Crystal excelled by outperforming 19 competitors in the Australian, Latin American, and Tropical Light Lager category, earning an impressive rating of 87 points from the Beverage Testing Institute's website, www.tastings.com.
ANALYSIS OF THE MICRO & MACRO SITUATION
MICRO ENVIRONMENT
Figure 3 Market share of beer manufacturing companies in Vietnam 2021 (Heineken includes 2 main brands: Heineken beer and Tiger beer)
Tiger beer belongs to the premium beer segment in Vietnam market (Premium segment > 15,000 VND/can, bottle) with retail price from 16,000 VND or more depending on distribution location
Substitute products of 3 main competitors (Sabeco, Habeco, Carlsberg)
Saigon Chill Beer of SABECO company
Budweiser beer from Anheuser-Busch company.
Beck's beer line of Anheuser-Busch company (Beck's, Beck's Ice)
Sapporo Beer by Seibei Nakagawa Company
Zorok Lager Beer of Sabmiller Vietnam Company
brand or reputation of corporate governance to investors and consumers.
Carlsberg beer of the company Carlsberg Indochina
Tiger Beer has retail and wholesale agents spread across the country from pubs, grocery stores, convenience stores, supermarkets,
According to the Ministry of Health, the average alcohol consumption in Vietnam is 8.3 liters of pure alcohol per capita annually, which translates to approximately 170 liters of beer per person each year A 2021 survey revealed that 64% of men and 10% of women in Vietnam consumed alcohol within the past 30 days.
Figure 4 Global beer consumption by country
SWOT ANALYSIS
STRENGTHS
Tiger Beer, which originated in Asia during the 1930s, has grown to become a beloved beer brand available in over 60 countries, renowned for its unique flavor profile.
Tiger Beer is one of the most successful brands in Singapore and in the world Currently, the Tiger beer brand is valued at S$820 million. Many prestigious awards:
More than 40 prestigious international awards that Tiger has achieved has become the pride of the "Asian tiger" during 9 decades of conquest worldwide.
The International Beer Industry Awards, often referred to as the Oscars of the beer industry, honored our brewery with the prestigious Gold Medal twice, first in 1954 and again in 1998.
In every country where Tiger beer is located, the brand strives to create familiar local customer networks.
Tiger beer's unique and distinctive flavor makes it a popular choice among local customers, as it perfectly complements the hot and humid climate while enhancing the enjoyment of delicious Asian dishes.
Another strength of the Tiger beer brand lies in its wide distribution network and market share through the association of two shareholders, Fraser and Neave, Limited (F&N) and Heineken International.
Heineken International is a longstanding and well-known brand among brewers through its global network of distributors and 115 breweries in over 65 countries.
Exploiting Asian culture, Asian heritage and Far Eastern characteristics, Tiger Beer has attracted many target customers of Tiger - especially young people.
Tiger Beer’s global brand platform, "Uncage," symbolizes the brand's commitment to instilling bravery across Asia and serves as a foundational element of its marketing strategy This initiative effectively captivates customers in various Asian countries, reinforcing the brand's presence and appeal in the region.
Tiger aims to inspire young Asians to embrace life fully, encouraging them to transcend personal and societal limitations regardless of their status or background.
WEAKNESSES
Young people in recent years often prefer strong alcohol to beer because of the new strong feeling from alcohol.
In addition, in a market as competitive as beer production, advances in technology from the innovation of other beer brands are factors that put Tiger beer under constant threat.
Many health related diseases including liver disease, heart disease are related to the consumption of alcoholic stimulants such as beer and wine.
Moderate intake of these stimulants can have many health benefits,but in reality, people who regularly drink alcohol consume more than recommended.
Alcohol use is increasing at an alarming rate, especially among young people, not only creating a burden on health, causing economic losses but also increasing social problems.
Alcohol ranks as the fifth leading risk factor for disability and death in Vietnam, according to the WHO's Global Status of Alcohol Report It is a direct contributor to at least 30 diseases and indirectly linked to over 200 diseases and injuries.
Traffic accidents and violence issues
Not only in Vietnam, in many Southeast Asian countries, the death rate due to drinking while driving is increasing.
In Vietnam, alcohol consumption is a significant contributor to social issues, accounting for 30% of social disorder cases and 33.7% of domestic violence incidents The negative impact of alcohol extends beyond personal health, placing a heavy burden on the economy and exacerbating various social problems.
OPPORTUNITIES
The beer market continues to thrive, driven by the rise in personal income among consumers, despite recent negative factors affecting the industry.
Population and beer may sound unrelated, but in reality, population growth in developing countries like Vietnam is actually a huge opportunity for brewers like APB.
More people corresponds to an increase in beer consumption This increases the demand for Tiger beer products.
Potential beer market in Vietnam
According to the World Health Organization (WHO) in Vietnam, our country ranks second among Southeast Asian countries and third in Asia in terms of average alcohol consumption per person.
According to WHO's 2018 global report, Vietnam is only behind Laos and South Korea in terms of pure alcohol consumption in Asia.
The prevalence of hazardous alcohol consumption has risen significantly over the years, particularly among men, with a Ministry of Health survey revealing that one in three men engage in dangerous drinking behaviors.
THREATS
Although it was born in 1932, at present, Tiger beer has only 5 product lines, of which 2 main product lines in Vietnam are the original brown Tiger and Tiger Crystal.
Established brands face significant limitations due to fierce competition, as consumer loyalty is crucial for brand development With numerous alternatives available, consumers often gravitate towards new products that offer fresh experiences.
SET SALES GOALS
BASES FOR BUILDING GOALS
Tiger Beer, a renowned Asian brand, has emerged as a global symbol of success and rapid growth, available in over 60 countries worldwide Its unique flavor strikes a perfect balance between boldness and refreshment, captivating consumers while embodying a spirit of continuous creativity.
As of July 2023, the estimated revenue stands at VND 486,000 billion, reflecting a 2.4% increase from the previous month and a significant 42.6% rise compared to the same period in 2021.
2023 was estimated at VND 3.205 million billion, up 16% over the same period.
As of now, Vietnam's beer industry is dominated by four major brands: Sabeco, Heineken, Habeco, and Carlsberg, which collectively hold 90% of the market share Sabeco leads with 43%, while Heineken follows closely with a 25% market share Notably, in 2021, Heineken was the top brand, commanding 44% of the market, with Sabeco in second place at 34%.
Heineken operates six breweries across Vietnam, strategically located in Hanoi, the Central region, and Ho Chi Minh City, allowing for effective nationwide distribution Emphasizing "quality over quantity," Heineken maintains a strong market presence despite its limited number of facilities, ensuring that its products consistently meet high standards across all regions.
Tiger beer ranks among the top choices in urban areas, according to Statista Research from Q & Me, cited in an MBS report, highlights a shift in consumer preferences towards higher quality beers and stronger brands, with Heineken and Tiger being favored options As Vietnam's economy grows, consumers are increasingly willing to invest in premium products, making Heineken and Tiger ideal selections for upscale parties and home gatherings.
Figure 6 Tiger monthly growth around 2022
4 1.2 ACTUAL RESOURCES OF THE BUSINESS
HEINEKEN BUILD HAPPINESS HUMAN RESOURCES:
Heineken Vietnam Brewery Company Limited, the second largest brewery in the country, employs over 3,600 individuals and has been recognized as one of the top 20 companies in the "Best Working Environment in Asia" list by HR Asia, a leading HR magazine.
Heineken Vietnam prioritizes its employees as the cornerstone of its business strategies, striving to provide optimal conditions that motivate them to excel in their roles The company is recognized for its competitive remuneration policy and ample promotion opportunities, ensuring that employees feel valued and supported in their professional growth.
A study published in the Journal of Labor Economics stated that
Happiness can boost work productivity by as much as 12% At Heineken Vietnam, the Senior Director of Human Resources emphasizes the importance of employee satisfaction, noting that the global corporation conducts annual surveys and gathers feedback to strengthen the connection between employees and the company.
In 2016, a survey revealed that Heineken Vietnam achieved an impressive 87% cohesion index, surpassing the global corporate standard by 9% and outperforming other companies by 16% While Heineken's global performance index stands at 78%, Vietnam's index is notably higher at 86% The survey indicated that 90% of employees expressed positive feedback, demonstrating strong belief in the company's developmental direction Additionally, over 80% of employees reported job satisfaction and a love for their work, highlighting the opportunities for growth not only in Vietnam but also across Asia and globally.
In 2012, the global beer industry witnessed a significant merger and acquisition event valued at $4 billion, as Heineken, the renowned beer brand, acquired Asia Pacific Breweries (APB), the parent company of the leading Asian beer brand, Tiger Beer.
Despite the challenges of investing heavily to acquire a large corporation, Heineken remained undeterred as APB's profits continued to rise in recent years Recognized as a key player in Heineken's Asian market strategy, APB has thrived by appealing to male consumers, with Tiger beer achieving significant success in the premium beer segment and establishing a strong global presence.
Figure 8 APB's revenue and profit have grown steadily over the years
Revenue is influenced by various factors, including the consumption market, competition, and effective marketing strategies Tiger Beer has implemented a range of successful marketing strategies, showcasing attractive and diverse products that cater to the needs of customers in Vietnam This strong approach positions Tiger Beer for a promising future with substantial revenue growth.
The target market of Tiger beer is mainly young people, age group 24-
Generation Y, also known as Millennials, represents a demographic characterized by strong loyalty and a reluctance to embrace new experiences Having navigated various life challenges, this group possesses a calm and skilled perspective They are resistant to changing their habits easily, yet maintain extensive social networks, frequently engaging in group activities and dining with friends and family With a stable income, Generation Y emerges as a key target market for brands like Tiger Beer.
SALES EXECUTION
SALES FORCE
Human resources departments in the company:
Administrative and human resources department
Các bộ phận nhân sự trong công ty:
• Phòng hành chính nhân sự
• Phòng tài chính kế toán
• Phòng kỹ thuật và sản xuất
• Bộ kiểm soát chất lượng
Recruiting and training employees ( TUYỂN DỤNG AVF ĐÀO TẠO NHÂN VIÊN)
The human resources department must understand the general wishes of employees and the specific needs of trainees It is essential to assess the knowledge and skills required for new personnel With these insights, trainers can focus on and highlight the key content necessary for effective training.
The diagram of the personnel training process with the goal of personnel training needs to be clearly defined from the beginning
Prepare a working environment for new employees
Creating a positive working environment is essential for businesses, and sending a thank you letter to candidates, along with notifying the relevant department to prepare for new hires, helps make a lasting impression Additionally, ensuring a comfortable workspace for new employees is crucial, which may include providing necessary equipment such as computers, desks, and stationery based on the company's resources.
The onboarding program facilitates the smooth integration of new employees into the company culture by providing essential information and insights into the organization's unique values Additionally, it includes introductions to various departments, allowing newcomers to gain a comprehensive understanding of the company and its operations.
• Xác định mục tiêu rõ ràng
Bộ phận nhân sự cần nắm rõ mong muốn của nhân viên và xác định khối lượng kiến thức cũng như kỹ năng cần thiết cho nhân sự mới Dựa trên các mục tiêu này, tập huấn viên sẽ tập trung khai thác và nhấn mạnh những nội dung quan trọng trong quá trình đào tạo.
Sơ đồ quy trình đào tạo nhân sự với mục tiêu đào tạo nhân sự cần được xác định rõ ràng ngay từ đầu
• Chuẩn bị môi trường làm việc cho nhân viên mới
Môi trường làm việc là yếu tố quan trọng mà các doanh nghiệp cần chú trọng Việc gửi thư cảm ơn và thông báo cho bộ phận liên quan chuẩn bị đón nhân sự mới không chỉ tạo ấn tượng tốt với ứng viên mà còn thể hiện sự chuyên nghiệp của công ty Bên cạnh đó, việc chuẩn bị một môi trường làm việc thoải mái cho nhân sự mới là cần thiết Tùy thuộc vào điều kiện của doanh nghiệp, bạn nên cung cấp các thiết bị như máy tính, bàn làm việc và các vật dụng văn phòng phẩm khác để hỗ trợ nhân viên trong công việc.
• Chào mừng nhân viên mới
Chương trình chào đón nhân sự mới đóng vai trò quan trọng trong việc giúp họ hòa nhập dễ dàng vào môi trường công ty Cần chú ý cung cấp những thông tin cơ bản và văn hóa đặc trưng của doanh nghiệp cho nhân viên mới Đồng thời, việc giới thiệu các phòng ban cũng rất cần thiết để nhân viên nắm rõ thông tin và có cái nhìn tổng quan về công ty.
Develop a training program and general orientation in business activities
To ensure employees have a comprehensive understanding of the business, it is essential to prepare detailed documents that include the company's establishment history, an overview of its operations, the organizational structure, relevant regulations, and specific company policies.
Service staff training materials Training materials must allow employees to understand the rules and working process as well as your company's contact information system.
Professional skills training for new employees
Tailoring training programs to the specific locations of employees enables organizations to enhance the expertise of new hires In addition to developing professional skills, this training process fosters an improved professional work style, ultimately boosting overall work efficiency.
You can prepare a new employee training Slide to provide them with the necessary professional-related documents after the training session is over.
Ready to support new employees after training
At the conclusion of the HR training process, it is essential to ensure that new employees feel supported and aware that assistance is always available Be prepared to offer guidance as they navigate their work responsibilities.
In addition, you can actively raise frequently asked questions for candidates Please provide them with a handbook on office jobs, documentation that suits them.
Evaluate the capacity of new employees
Effective training for former employees must prioritize capacity assessment, requiring managers and HR departments to engage in detailed discussions with employees This collaborative approach allows for valuable feedback and contributions, enhancing the overall training experience.
Human resource assessment enables businesses to gauge employee capabilities and understand their aspirations Additionally, the mutual evaluation between employers and employees enhances the training process for new hires, leading to improved organizational effectiveness.
• Xây dựng chương trình đào tạo và định hướng chung trong hoạt động kinh doanh
Để giúp nhân viên nắm rõ thông tin về doanh nghiệp, cần soạn thảo các tài liệu đầy đủ, bao gồm lịch sử thành lập, tổng quan về công ty, cơ cấu tổ chức, quy chế và chính sách riêng của công ty.
Tài liệu đào tạo nhân viên phục vụ cần phải giúp nhân viên nắm rõ các quy tắc và quy trình làm việc, đồng thời hiểu được hệ thống thông tin liên lạc của công ty Việc này sẽ đảm bảo rằng nhân viên có đủ kiến thức để thực hiện công việc hiệu quả và đáp ứng được yêu cầu của tổ chức.
• Đào tạo kỹ năng nghiệp vụ cho nhân viên mới
Dựa vào vị trí của từng nhân viên, bạn có thể xác định phương pháp đào tạo phù hợp với chuyên môn của họ Đào tạo không chỉ tập trung vào kỹ năng chuyên môn mà còn giúp nhân viên phát triển tác phong làm việc chuyên nghiệp, từ đó nâng cao hiệu quả công việc.
Bạn có thể tạo Slide đào tạo cho nhân viên mới nhằm cung cấp tài liệu cần thiết liên quan đến nghiệp vụ sau khi kết thúc buổi đào tạo.
• Sẵn sàng hỗ trợ nhân viên mới sau đào tạo
MONITOR SALES ACTIVITIES
SALES STAFF MANAGEMENT
Effectively manage and train your sales team by enhancing their product knowledge Regularly assess employees at designated intervals to ensure they meet performance standards Listen to and learn from each salesperson to understand their motivational techniques and the strategies they employ to achieve success.
Improve working attitude and skills to interact with customers effectively because sales staff are the bridge between the company and customers
Supervising and motivating employees in the area to complete important jobs to ensure revenue targets and the person responsible is the manager of that area.
Timely capture changes in order to develop appropriate development strategies
Use software to manage human resources to optimize time and costs. Enterprises plan to use one of the leading software in human resource management after GoSELL, Dantrisoft, Toko Tech
Sales managers play a crucial role in overseeing inventory management to maintain a steady supply and prevent stockouts They ensure timely replenishment of popular products and promote the sale of available items, streamlining the buying process for customers.
Sales reports are essential for evaluating the effectiveness of various products and developing effective business strategies The sales supervisor plays a crucial role in crafting these reports, utilizing their analytical skills to assess data on product performance across different markets, departmental productivity, and customer feedback.
Quản lý và đào tạo nhân viên kinh doanh về kiến thức sản phẩm là rất quan trọng Cần kiểm tra hiệu suất của nhân viên theo từng giai đoạn cụ thể để đảm bảo sự phát triển Hơn nữa, lắng nghe và tìm hiểu cách mỗi nhân viên bán hàng truyền cảm hứng cho đồng nghiệp sẽ giúp cải thiện quy trình làm việc và đạt được kết quả tốt hơn.
Nâng cao thái độ làm việc và kỹ năng tương tác với khách hàng là rất quan trọng, vì nhân viên kinh doanh đóng vai trò cầu nối giữa công ty và khách hàng Việc cải thiện những kỹ năng này không chỉ giúp tăng cường sự hài lòng của khách hàng mà còn nâng cao hiệu quả kinh doanh.
Quản lý khu vực có trách nhiệm giám sát và động viên nhân viên hoàn thành các công việc quan trọng nhằm đảm bảo đạt chỉ tiêu doanh thu.
Nắm bắt kịp thời những thay đổi để đưa ra chiến lược phát triển phù hợp
Sử dụng phần mềm quản lý nhân sự giúp doanh nghiệp tối ưu hóa thời gian và chi phí hiệu quả Các doanh nghiệp hiện nay đang cân nhắc lựa chọn những phần mềm hàng đầu trong lĩnh vực này như GoSELL, Dantrisoft và Toko Tech.
Quản lý bán hàng và tồn kho đóng vai trò quan trọng trong việc theo dõi và kiểm soát hàng tồn kho, nhằm đảm bảo cung ứng đầy đủ và ổn định, tránh tình trạng thiếu hàng.
Để tránh tình trạng "hết hàng", việc bổ sung kịp thời các sản phẩm bán chạy và thúc đẩy bán các sản phẩm có sẵn trong kho là rất quan trọng Điều này giúp quá trình mua sắm trở nên nhanh chóng và thuận tiện hơn cho khách hàng.
Để tạo báo cáo bán hàng hiệu quả, việc sử dụng các báo cáo này giúp đo lường hiệu suất của từng sản phẩm và phát triển chiến lược kinh doanh phù hợp Giám sát bán hàng là người chịu trách nhiệm viết các báo cáo, sử dụng khả năng phân tích dữ liệu để đánh giá hiệu suất bán hàng tại các thị trường khác nhau, năng suất của các bộ phận bán hàng và xử lý khiếu nại từ khách hàng.
FINAL CONCLUSION
We would like to extend our heartfelt gratitude to Hoa Sen University for providing us with a supportive learning environment and exceptional guidance from our lecturers A special thanks goes to Teacher Phan Minh Tuấn for his invaluable assistance in the completion of our report.
Limited knowledge can lead to challenges in fully understanding and addressing the assigned issue We welcome your feedback and insights to enhance our comprehension and approach.
PART 1: INTRODUCTION OF BUSINESS AND PRODUCT 8
PART 2: ANALYSIS OF THE MICRO & MACRO SITUATION 12
4.1.2 ACTUAL RESOURCES OF THE BUSINESS 22
Figure 1 Office complex of Heineken Vietnam Brewery - Vung Tau 9
Figure 2 Tiger beer product lines 10
Figure 3 Market share of beer manufacturing companies in Vietnam 2021 (Heineken includes 2 main brands: Heineken beer and Tiger beer) 11
Figure 4 Global beer consumption by country 13
Figure 6 Tiger monthly growth around 2022 21
Figure 8 APB's revenue and profit have grown steadily over the years 24
Figure 11 Music event : virtual reality concert tiger remix 32
Figure 12 Son Heung-Min Teams Up With Tiger Beer to Encourage
Figure 13 Music event : virtual reality concert tiger remix 33
Reason for choosing the topic
The topic of distribution is crucial in the business activities of enterprises, serving as a key marketing tool alongside product strategy and promotion A well-developed distribution system not only offers a competitive edge but also secures long-term advantages in the market Building an effective distribution channel requires significant investment in time, effort, and resources, as it combines both scientific and artistic elements Tiger Beer, a prominent brand in Vietnam, has successfully established an extensive distribution network that ensures its products reach consumers nationwide through distributors, agents, and retailers Despite intense competition, Tiger Beer continues to thrive by leveraging its robust distribution strategy and effectively integrating it with other marketing variables This analysis focuses on the distribution channel system of the Tiger brand in the Vietnamese market, exploring how the brand constructs its distribution framework and assessing its strategic implications.
This essay aims to gather essential information about Tiger beer brands and products within the Vietnamese market, while also analyzing their distribution channels It evaluates the strengths and weaknesses of the current distribution strategy and offers future recommendations Key tasks include researching and synthesizing data on the distribution system of the Tiger beer brand, assessing its current state, and proposing actionable solutions to enhance its distribution network.
Tiger Beer’s marketing strategy showcases its dominance in the Asian beer market, highlighting its status as a renowned global brand The company continually reinvents itself while maintaining its signature taste and quality, appealing to the modern preferences of young Asians This approach solidifies Tiger Beer’s leading position among consumers For more insights and case studies, visit Digital Restaurant, a trusted source for the latest updates.
PART 1: INTRODUCTION OF BUSINESS AND PRODUCT
History of formation and development
Tiger, established in 1930 in Singapore, became a significant player in the beverage industry when Heineken partnered with local companies Neave and Farser in 1931 to create Malayan Breweries Limited (MBL), resulting in Heineken International holding a commanding 95.3% share.
In October 1932, Singapore launched its first beer brand, Tiger Beer, under Heineken Asia Pacific In 1990, MBL rebranded as Asia Pacific Breweries (APB) to strengthen its presence in the Asian market By leveraging insights into Asian culture and consumer preferences, Tiger Beer has effectively established a strong reputation among customers.
The powerful Asian tiger symbolizes the brand's identity as an authentic Asian beer, establishing a strong presence in the market while also being exported globally As the flagship brand of APB, it stands out as one of the largest beer brands worldwide.
Brief i ntroduction of the Company :
Produced by Heineken Asia Pacific, forerunner
Tiger Beer is a Singaporean beer brand that was first launched as Asia Pacific Brewery.
The company is a joint venture between Heineken N.V and Singapore
Tiger is one of the biggest beer brands in the world, and Vietnam is one of Tiger's most beloved markets.
Figure 1 Office complex of Heineken Vietnam Brewery - Vung Tau
Brief introduction of the P roduct :
Currently, in the Vietnamese market, Tiger Beer mainly provides this market with beer lines such as:
Tiger Original beer (Tiger brown): is one of the most popular and consumed beers in huge quantities From restaurants to street eateries, everyone loves this beer.
Tiger Platinum Wheat Lager Beer: Is a new line of Tiger beer with many improvements both inside and out, bringing a new wave to attract consumers' attention.
Tiger Crystal Beer (Silver Tiger): is a new product of Tiger beer, using the unique cold fermentation technology Cold Suspension, deeply cooled by Crystal Cold technology
Figure 2 Tiger beer product lines
Tiger Beer is capitalizing on the growing light beer market, catering to young urban drinkers who seek a smooth yet flavorful option for various social occasions, from parties to corporate dinners The brand has positioned its Tiger Crystal beer as a flagship product for the future Notably, at the 2010 World Beer Cup, Tiger Crystal outperformed 19 competitors in the Australian, Latin American, and Tropical Light Lager category, earning an impressive 87 points from the Beverage Testing Institute's website, www.tastings.com.
PART 2: ANALYSIS OF THE MICRO & MACRO SITUATION
Figure 3 Market share of beer manufacturing companies in Vietnam 2021 (Heineken includes 2 main brands: Heineken beer and Tiger beer)
Tiger beer belongs to the premium beer segment in Vietnam market (Premium segment > 15,000 VND/can, bottle) with retail price from 16,000 VND or more depending on distribution location
Substitute products of 3 main competitors (Sabeco, Habeco, Carlsberg)
Saigon Chill Beer of SABECO company
Budweiser beer from Anheuser-Busch company.
Beck's beer line of Anheuser-Busch company (Beck's, Beck's Ice)
Sapporo Beer by Seibei Nakagawa Company
Zorok Lager Beer of Sabmiller Vietnam Company
brand or reputation of corporate governance to investors and consumers.
Carlsberg beer of the company Carlsberg Indochina
Tiger Beer has retail and wholesale agents spread across the country from pubs, grocery stores, convenience stores, supermarkets,
According to the Ministry of Health, the average alcohol consumption in Vietnam is 8.3 liters of pure alcohol per capita annually for individuals over 15 years old, which translates to approximately 170 liters of beer per person each year A 2021 survey revealed that 64% of men and 10% of women consumed alcohol within the past 30 days.
Figure 4 Global beer consumption by country
General Statistics Office -> beer production in the first 6 months of 2022
14.2% increase over last year increased by 9.1% over the same period in 2019 (before the epidemic broke out and Decree No 100/2019/ND-CP took effect).
Although the Fed increased lending rates, causing a series of Vietnamese banks to increase, it did not reduce the level of beer consumption.
Article 5 Law on Alcohol Prevention and Control 2019 => 18 years old can drink beer
Decree No 100/2019 => raise the penalty level
Decree 100 along with the covid 19 epidemic => decrease in beer sales
Shares of Heineken company of Tiger beer 2019 2020 decreased and then increased again from 2021 to present
=> Vietnamese people's consumption habits have not been affected much after the Decree because => penalties are available but little enforcement
Tiger Beer, which originated in Asia during the 1930s, has grown to be a beloved brand in over 60 countries, renowned for its unique and distinctive flavor.
Tiger Beer is one of the most successful brands in Singapore and in the world Currently, the Tiger beer brand is valued at S$820 million. Many prestigious awards:
More than 40 prestigious international awards that Tiger has achieved has become the pride of the "Asian tiger" during 9 decades of conquest worldwide.
The International Beer Industry Awards, often referred to as the Oscars of the beer industry, honored the brand with the prestigious Gold Medal twice, first in 1954 and again in 1998.
In every country where Tiger beer is located, the brand strives to create familiar local customer networks.
Tiger beer's unique and distinctive flavor appeals to local customers, making it a preferred choice in hot and humid weather Its taste complements a variety of delicious Asian dishes, enhancing the overall dining experience.
Another strength of the Tiger beer brand lies in its wide distribution network and market share through the association of two shareholders, Fraser and Neave, Limited (F&N) and Heineken International.
Heineken International is a longstanding and well-known brand among brewers through its global network of distributors and 115 breweries in over 65 countries.
Exploiting Asian culture, Asian heritage and Far Eastern characteristics, Tiger Beer has attracted many target customers of Tiger - especially young people.
Tiger Beer’s global brand platform, "Uncage," symbolizes the brand's commitment to instilling bravery across Asia, serving as a cornerstone of its marketing strategy This initiative effectively draws in customers from various Asian countries, enhancing the brand's appeal and presence in the region.
Tiger aims to inspire young Asians to embrace life fully, encouraging them to transcend personal and societal limitations, regardless of their status or circumstances.
Young people in recent years often prefer strong alcohol to beer because of the new strong feeling from alcohol.
In addition, in a market as competitive as beer production, advances in technology from the innovation of other beer brands are factors that put Tiger beer under constant threat.
Many health related diseases including liver disease, heart disease are related to the consumption of alcoholic stimulants such as beer and wine.
Moderate intake of these stimulants can have many health benefits,but in reality, people who regularly drink alcohol consume more than recommended.
Alcohol use is increasing at an alarming rate, especially among young people, not only creating a burden on health, causing economic losses but also increasing social problems.