Bài tập lớn nguyên lý marketing together with significant benefits between the eu and vietnam trade after the adoption of the eu vietnam free trade agreement

The introduction of Duc Trinh’s brand involves a broad knowledge of the Vietnamese wine market and set a roadmap for the company as a small European wine producer on entering the market.

DAI HOC QUOC GIA HA NOI TRƯỜNG ĐẠI HỌC KINH TE

yp

BAI TAP LON

NGUYEN LY MARKETING

GVHD: Hoang Trong Truong

Họ và tên: Trịnh Thanh Đức

Mã sinh viên: 23051547 Lớp: QH-2023E TCNH4

Ma lop: BSA2002-E 1

Hà Nội, ngay 27 thang 12 nam 2024

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Abstract

The introduction of Duc Trinh’s brand involves a broad knowledge of the Vietnamese wine market and set a roadmap for the company as a small European wine producer on entering the market Primary and secondary data collection are both implemented through two main activities: books, journals, articles, information searches and online interviews of local experts The introduction reveals changes in the business environment and consumer trends after the transition

of the Vietnamese economy The introduction also points out the positive and negative factors affecting the business activities of foreign wine enterprises that have been and will be entering Vietnam Finally, notes and advice from local businesses and wine experts can help this new European business avoid significant mistakes and take advantage of their own strengths to go deep into the Vietnamese wine market The brand has found out a strong Western-lifestyle orientation from local wine consumers, together with significant benefits between the EU and Vietnam trade after the adoption of the EU-Vietnam free-trade agreement

The Duc Trinh brand

Duc Trinh Company, a fresher in the European liquor industry, distinguishes itself through its innovative entrepreneurship strategies and a diverse portfolio of premium wine Rooted

in a legacy of traditional craftsmanship, the brand seamlessly integrates modern business approaches, emphasizing sustainable practices, market expansion, and customer-centric innovation Duc Trinh’s product line reflects its commitment to excellence, offering a rich variety of spirits that combine unique flavor profiles with impeccable quality, appealing to connoisseurs and casual drinkers alike By leveraging cutting-edge marketing strategies and embracing cultural storytelling, the company strengthens its global presence while preserving its heritage This blend of tradition, innovation, and strategic foresight positions Duc Trinh as a symbol of both authenticity and modernity in the world of fine spirits Duc Trinh’s slogan

Duc Trinh’s slogan, "Come as a Friend, Leave as Family," reflects the brand’s commitment to fostering connections and celebrating shared moments Rooted 1n the warmth and hospitality of its Vietnamese heritage, the slogan encapsulates the spirit of camaraderie that defines the Duc Trinh’s experience It emphasizes the inclusive and welcoming nature of the brand, inviting everyone to enjoy its time-honored bourbon while forging meaningful bonds This message aligns perfectly with Duc Trinh’s legacy of bringing people together, making every sip not just about the whiskey but about the stories and relationships it inspires

The Trinh’s warmth special product line

The Trinh’s warmth special is a premium product line that showcases the brand’s dedication to craftsmanship and innovation within the bourbon category This collection includes renowned offerings such as Sweet Breath, Sea Flavor, Nhat Le’s special, each crafted to deliver unique flavor profiles such as organic sweetness, ocean’s while maintaining the unmistakable quality of Jim Beam

Sweet Breath is a premium, extra-aged bourbon that represents the refined side of the Duc Trinh portfolio This distinguished spirit boasts a deeper, more complex flavor profile, marked by rich caramel, warm oak, and smooth vanilla notes Its extended maturation in charred oak barrels imparts a luxurious texture and a slightly smoky finish, making it an exceptional choice for bourbon enthusiasts seeking a richer, fuller-bodied experience Sweet Breath embodies the brand’s commitment to quality and tradition, offering a sophisticated take on classic bourbon while remaining approachable and versatile for sipping neat, on the rocks, or in premium cocktails

Sea Flavor is a ready-to-drink cocktail that brings the classic Southern Mint Julep to life with the smooth, rich flavor of Duc Trinh Bourbon Infused with a refreshing mint taste, it delivers the perfect balance of bourbon warmth and cool, minty freshness in every sip Conveniently pre-mixed, this ready-to-serve drink makes enjoying the iconic cocktail effortless, whether you're celebrating a special occasion or simply enjoying a casual evening

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Nhat le’s special is a premium small-batch whiskey from Duc Trinh, known for its rich, full-bodied flavor and smooth, velvety finish Aged for seven years, Nhat Le’s spcial is crafted with a higher proof, which gives it a bold, intense character while still maintaining balance and complexity It features robust notes of caramel, vanilla, and toasted oak, complemented by a warm, spicy finish Named after Duc’s hometown, Nhat Le showcases the legacy of craftsmanship passed down through generations Perfect for those who appreciate a stronger, more distinctive bourbon, Nhat le’s special is enjoyed best neat or with ice, offering a refined, memorable sipping experience

From the smooth, approachable taste of Sweet Breath to the bold, full-bodied character of Sea Flavor, the Trinh’s warmth special caters to diverse palates and occasions Designed for bourbon enthusiasts seeking depth and complexity, these hand-selected, small-batch bourbons embody the artistry and heritage that define Duc Trinh, elevating the drinking experience to a new level of sophistication

Analyzing the marketing environment:

SWOT analysis of Vietnamese wine market:

a Strength:

The strengths highlight the intrinsic advantages Duc Trinh wine producers bring to the Vietnamese market Duc Trinh wines have an established reputation for premium quality, heritage, and authenticity, which aligns well with Vietnamese consumers’ increasing preference for imported products The association of Duc Trinh wines with sophistication and status provides an inherent advantage in targeting affluent and aspirational segments Additionally, the existing presence of European wines in upscale restaurants and hotels demonstrates a proven demand for such products in the premium hospitality sector Leveraging these strengths can ensure successful market entry and positioning

Weakness:

The weaknesses focus on the internal challenges Duc Trinh may face in marketing their products in Vietnam One key issue is the limited wine knowledge among the general population, requiring significant educational efforts to inform and engage consumers Moreover, the high pricing of European wines, which originate Duc trinh’s products, are driven by steep import duties and taxes, can make them less accessible to price-sensitive buyers Competition from more affordable wines, particularly from Chile and Australia, adds further difficulty Regulatory and logistical hurdles, including advertising restrictions and climate-related storage challenges, also increase operational complexity, potentially slowing market penetration

Opportunities:

Opportunities identify favorable external conditions that Duc Trinh company can capitalize

on in the Vietnamese market Vietnam's expanding middle class, urbanization, and changing consumption habits create a fertile ground for premium and lifestyle-oriented products like wine The festive culture, especially during Tet and other celebrations, drives demand for gift-worthy wines, providing a chance to tailor marketing strategies around cultural events The growing e-commerce sector offers direct access to younger, tech-savvy consumers, while increasing health consciousness can be leveraged to promote red wine's

health benefits Collaborations with upscale hospitality and consumer education initiatives also present untapped potential for growth

Threats:

Threats outline external factors that could negatively impact market entry or growth in Vietnam The wine market is highly competitive, with established players like Chilean and French wine companies dominating key price segments Strict regulatory policies on alcohol advertising pose significant marketing constraints, necessitating creative, indirect promotional strategies High import taxes and tariffs inflate costs, making it challenging to compete on price with alternative beverages like beer or locally produced wines

Additionally, Vietnam’s hot and humid climate poses a risk to product quality during transportation and storage, potentially harming brand reputation if not managed effectively Finally, the cultural preference for beer and spirits remains a barrier to broader wine adoption, requiring a gradual shift in consumer habits

Strengths:

Wines:

as premium, high-quality, and

sophisticated in Vietnam, giving Duc

Trinh, an European wine producer a

competitive advantage

with wealth, status, and modernity in

Vietnam, aligning with the

aspirations of middle- and upper-

class consumers

® The legacy of European winemaking

aligns well with consumer interest in

quality, tradition, and origin stories,

which can be leveraged for effective

marketing campaigns

Weakness:

General Consumers:

with wine, the broader Vietnamese population lacks awareness of wine varieties, regions, and proper consumption, requiring additional educational marketing efforts

alcohol make European wines more expensive, potentially limiting access

to price-sensitive consumers

Alternatives:

are often priced lower than European wines, which Duc Trinh company produces, making it challenging to compete in the mid-tier and lower price segments

Urbanization:

class is embracing wine as a lifestyle

product, especially in urban centers

Goods:

segment, is considered a discretionary luxury product Economic slowdowns

or inflation could impact consumer

for greater spending on premium and

imported products

Festive and Gifting Culture:

celebrations create strong demand for

premium, gift-worthy wines, which

can be marketed with tailored

packaging and promotions

Education-Oriented Marketing:

knowledge provides a unique

opportunity to position the brand as

an educator, using wine-tasting

spending on wine

Beverages:

alcoholic beverage in Vietnam, and spirits are deeply ingrained in local drinking culture, requiring a shift in consumer habits to increase wine adoption

Marketing:

regulated in Vietnam, limiting the ability to use traditional mass- marketing strategies and requiring

TI

1 Market segmentation:

Analzing market segmentation, targeting, positioning of the product:

Vietnamese wine consumers based on four categories: gender, age, education and income level (table |

Gender

56.6 43.4

Male

Female

From 40 243

Education

24.3 75.7

Below University

Income (euros/month)

27.9 50.6 21.5

Less than 200

200 — 400

More than 400

Table 1 Profile of Vietnamese wine drinkers based on gender, age, education and income

level (Source: Le et al 2013)

The evidence has indicated the tradeoff in gender differentiation and young drinker concentration with low-average incomes Interestingly, purchasing power is moving forward to relatively higher educated consumers, with 75.7% having a university background From this fact also emerges the most influenced determinant in consumption and spending: knowledge A study from Johnson and Bastian (2007) demonstrated that consumers with high expertise in wine drink more and tend to spend more compared to other drinking groups with lower wine knowledge level Another finding

to support this argument has revealed buyers’ strong dependence of sellers’ recommendation who

likely purchase less The lack of related knowledge leads them to an uncertain buying decision A

purchasing-decision process (Mitchell & Greatorex 1989) This defines the first group in customer segmentation: the wine expert group However, there are four other consumer groups who are worth considering in Vietnamese current wine market: Enjoyment-oriented Social group, Basic group, Price-conscious group and Image-oriented group (table 2) The author has selected data from several sources in local market research journals and reports such as EVBN (2016a), Yoo et

al (2013), Vietnam Asia Life Magazine (2018), Zaca (2015), Do et al (2009), etc to finally identify the customer segmentation in Vietnamese wine market

- High market contribution

- High brand susceptibility

- Low price-sensitiveness

susceptibility

- Low price-sensitiveness

- Medium-level education

- Average-high income

Enjoyment-oriented social

drinker

- Medium purchasing power

- Medium wine knowledge

- Medium market contribution

- Medium brand susceptibility

- Medium price-sensitiveness

Age: 25-35

- Young urban men and women

- Medium-level education

- Average income

power

- Low wine knowledge

- Low-medium market contribution

- Low brand susceptibility

- Medium-high price sensitiveness

- Age: 30-55

- Equally urban and rural men and women

- Low to medium-level education - Low-average income

Price-conscious drinker

- Low wine knowledge

- Low market contribution

population (students) + old retired men

- Low-level education

| - High price-sensitiveness | - Low income |

Table 2 Consumer segmentation in Vietnamese wine market (Several sources) Market targeting:

Sweet Breath - Targeting the “Wine Expert Drinker”:

Characteristics: High purchasing power, high wine knowledge, low price-sensitivity, and preference for quality

Profile Match: Age 45+, urban, high-income individuals with a refined taste

Positioning: Sweet Breath, with its nch caramel, warm oak, and smoky finish, is a perfect match for this segment’s preference for premium, complex, and aged bourbons

Marketing Focus:

Highlight the extended aging process and craftsmanship

Use storytelling around heritage and exclusivity

Distribute in premium liquor stores, luxury bars, and exclusive events

Emphasize tasting experiences and pairing workshops

Sea Flavor - Targeting the “Enjoyment-Oriented Social Drinker”

Characteristics: Medium purchasing power, medium wine knowledge, focus on social and casual enjoyment

Profile Match: Young urban men and women (age 25-35), moderate-income, looking for convenient, ready-to-drink options

Positioning: Sea Flavor, with its refreshing mint and bourbon balance, appeals to casual drinkers who value convenience and flavor variety

Marketing Focus:

events

Flavor

Nhat Le’s Special - Targeting the “Image-Oriented Drinker”

Characteristics: High purchasing power, medium wine knowledge, and preference for prestigious brands and products

Profile Match: Urban men aged 35-45, average to high income, looking for status and recognition in their choices

Positioning: Nhat Le’s Special, with its bold, full-bodied character and small-batch craftsmanship, aligns with this segment’s desire for distinctive and exclusive products

Marketing Focus:

Use premium packaging and emphasize limited batch availability

Collaborate with influencers and luxury lifestyle brands

Host exclusive tasting events and partner with high-end bars/restaurants

Stress the product's cultural connection to Duc Trinh’s heritage and the

craftsmanship involved

Due to the changes in the country’s economic, political, social and technological situations, the Vietnamese wine consumption trend has quickly transferred into a modern Western- style orientation, opening new doors for Duc Trinh’s brand to penetrate and capture the market share However, its solid cultural and historical background has limited the communication and interaction capacities of external resources European wineries, hence, should consider prudently conducting consumer’s behavior research before entry activities Wine consumption trends based on gender

Traditional behaviors are still a great barrier for gender equality in Vietnam, with male dominance in most of casual as well as formal activities The wine market is not an exception (International, 2010) There is, however, a growing trend in female alcohol consumption, causing a shift in the modern wine customer segmentation The social position of Vietnamese women is increasingly strengthened and extended in many different fields such as business, tourism, education This boosts their purchasing power Wine, associated to possess a romantic and sophisticated taste requiring a comprehension of culinary value, attracts women to be a potential target market in the future (Magazine, 2018)has corroborated that “wine is more appropriate for women than other alcoholic drinks” Due to the current trend of modernity and individualism in Vietnam as an influence from the Western world, drinking wine seems to intensify the positioning of Vietnamese female in modem social relationship in aspects to country equality level The magazine has noticed that Vietnamese women will hardly become addicted drinkers but accept enjoying and learning about wine as a part of the latest culture

Wine consumption trends based on regions

A recent investigation conveyed by Ipsos UU (EVBN, Vietnam’s Beverage Industry, 2016) has uncovered some major differences in individual alcohol consumer behaviors i the three main country’s regions: North, Central and South Southern Vietnam is presumed to

be the major market where customers are easy-going, open-minded and willingly try new brands/tastes, while drinkers in the central region perform to be more reserved The analysts disclosed northern consumers as “trend followers” who paying higher attention to

24 packaging, especially when they are gifted According to the results, the perceptions of taste, quality, color, origin, label, packaging, brand awareness and loyalty, etc are diversified, following every region’s characteristics

Drinking wine as a luxury symbol

Vietnam reportedly spent 82.3 million euros on imported wine of fresh grapes in 2016 (EVBN, Vietnam’s Beverage Industry, 2016) reporting an exceptionally rising wine