Impact of advertising budget on marketing efficiency in financial aspects a case study of hanoi beer alcohol beverage joint stock corporation (habeco)

iii SUMMARY This study examines the role of advertising in driving business performance, focusing on key marketing efficiency metrics such as Return on Advertising Spend ROAS and Return

VIETNAM NATIONAL UNIVERSITY, HANOI

Supervisor: Dr Nguyen Trung Hien

Field of Study: Financial Management

Code: 8340202.01QTD

HANOI – 2025

In addition, other comments, reviews and data used by other authors, and organizations have been acknowledged and explicitly cited

I will take full responsibility for any fraud detected in my thesis

Hanoi, date 21 Month 04 year 2025

Author Nguyen Thi Quy Ca

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ACKNOWLEDGEMENTS

To complete this project, I want to express my heartfelt thanks to Teacher Nguyen Trung Hien for his dedicated support and detailed guidance from the very beginning until the end of the project His feedback and suggestions have helped me clearly focus my research and improve the content effectively I also want to thank the leadership of the Hanoi Beer-Alcohol-Beverage Joint Stock Corporation (Habeco) for providing me with the necessary conditions and important information that allowed me to finish this project The enthusiastic support from the company has been a key foundation for my research

Additionally, I would like to thank my family, friends, and colleagues who have always encouraged and supported me throughout this process Their valuable support has motivated me to overcome challenges and complete the research on time

Even though I have tried my best during the research, I know there may still

be some shortcomings I hope to receive understanding and constructive feedback from my teacher and colleagues so that I can improve this project in the future Thank you very much!

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SUMMARY

This study examines the role of advertising in driving business performance, focusing on key marketing efficiency metrics such as Return on Advertising Spend (ROAS) and Return on Advertising Investment (ROMI) of Hanoi Beer-Alcohol-Beverage Joint Stock Corporation (Habeco)

The study includes an analysis of data regarding revenue, sales volume, and advertising costs of Habeco during the period from 2018 to 2023 The results indicate that although the company has increased its investment in advertising across various channels, particularly digital platforms, the efficientcy of the campaigns is inconsistent due to several factors, such as rising raw material costs, regulations on alcohol content, and intense competition from major rivals like Sabeco and Heineken The study also points out thatadvertising campaigns on social media and e-commerce yield higher ROMI and ROAS compared to traditional advertising However, to optimize advertising effectiveness, Habeco needs to implement a flexible budget allocation plan and measure and optimize campaigns in real time Additionally, the study suggests that Habeco should focus on developing non-alcoholic or low-alcohol products to adapt to modern consumption trends and minimize risks from legal regulations

The proposed solutions include increasing investment in digital advertising, developing e-commerce channels, creating seasonal and event-based advertising strategies, as well as implementing customer loyalty programs The conclusion of the topic emphasizes that Habeco needs to innovate its advertising strategy, optimize spending, and quickly adapt to market fluctuations in order to achieve sustainable growth and improve marketing efficientcyin the future

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LIST OF TABLES AND FIGURES

Table 1: Return on Ad Spend (ROAS) & Marketing Spend as a

Table 2 Return on Marketing Investment (ROMI) or Sales Revenue

Table 3 Advertising budget of different Chanels 24

1.1.1.Definitions of Advertising by Scholars and Professional Organizations 4 1.1.2.Distinguishing Advertising from Other Communication Activities - Public

1.2.2.Stimulating Customer Demand and Consumption Habits 51.2.3.Creating Competitive Advantage and Increasing Sales 5

2.5.Impact of Advertising Budget on Sales and Marketing Efficiency 11

2.5.2.1.AIDA Model (Attention - Interest - Desire - Action) 13

2.5.2.3.Descriptive Statistics & Trend Analysis Model 132.6.Previous Research Related to Advertising and Sales Growth 142.6.1.Overview of Domestic and International Research on the Impact of

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2.6.2.Results, Methods, and Lessons from Previous Research 15

Chapter 2: THE CURRENT STATE OF THE IMPACT OF ADV ERTISING

BUDGET ON SALES GROWTH AND MARKETING EFFICIENTCYOF

HANOI BEER - WINE - BEVERAGE JOINT STOCK COMPANY (HABECO)

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2.Characteristics of the Beer, Wine, and Beverage Industry and Advertising

2.1 Current State of the Beer, Wine, and Beverage Industry in Vietnam 182.2.Advertising Activities in the Beer, Wine, and Beverage Industry 193.Assessing the Impact of the Advertising Budget on Sales Growth and Marketing efficientcy of Hanoi Beer - Wine - Beverage Corporation (Habeco) 203.1 RQ1:The advertising budget affects on Return on Ad Spend (ROAS) &

3.2 RQ2:The advertising budget affects on Return on Marketing Investment

3.4.RQ4:Efficiency of Advertising Campaigns: Sales growth generated from

Chapter 3: PROPOSALS FOR IMPROVING THE EFFICIENCY OF

ADVERTISING BUDGET SPENDING ON SALES GROWTH AND

MARKETING EFFICIENCY OF HANOI BEER - WINE - BEVERAGE JOINT

STOCK COMPANY (HABECO)

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1.Optimize Advertising Budget Allocation Based on Channel Performance 30 2.Optimize Advertising Costs: Develop Seasonal and Event-Based Advertising

6.Enhance Customer Relationships through Care and Promotions 40

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INTRODUCTION

I Reason for Choosing the Topic

In the context of an increasingly competitive market, businesses in the food and beverage industry, especially in beer, alcohol, and soft drinks, need to optimize their advertising strategies to maintain their position and achieve growth The Hanoi Beer-Alcohol-Beverage Joint Stock Corporation (Habeco) is one of the leading brands in Vietnam, with a long history of development and a significant influence in the domestic market However, to sustain sales growth and optimize marketing efficientcyin a volatile business environment, researching and analyzing the impact

of advertising budgets is essential

The topic “Analyzing the Impact of Advertising Budgets on Sales Growth and Marketing efficientcy of the Hanoi Beer-Alcohol-Beverage Joint Stock Corporation (Habeco) was chosen to clarify the relationship between advertising spending and business performance This is an important issue not only for HABECO but also for many other companies in the industry, as they need to make strategic decisions regarding the proper allocation of advertising resources

The topic is significant not only for HABECO’s development but also serves

as a useful reference for businesses in Vietnam's food and beverage industry in building and improving their marketing and advertising strategies

II Research Objectives

General Objective

The study aims to analyze and evaluate the impact of advertising budgets on sales growth and marketing efficientcy of the Hanoi Beer-Alcohol-Beverage Joint Stock Corporation (Habeco) From this, it will propose solutions to optimize the advertising budget to enhance business performance and market reach

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Propose solutions to optimize the allocation of the advertising budget to improve sales, enhance marketing efficiency, and increase competitiveness in the market

III Research Subjects and Scope

Research Subject:

The focus of the study is the impact of the advertising budget on sales growth and marketing efficientcy of the Hanoi Beer-Alcohol-Beverage Joint Stock Corporation (Habeco)

Scope of the Study:

Content Scope: Analyzing the impact of the advertising budget on sales

growth and marketing efficientcy of the Hanoi Beer-Alcohol-Beverage Joint Stock Corporation (Habeco)

Spatial Scope: The research is conducted at the Hanoi

Beer-Alcohol-Beverage Joint Stock Corporation (Habeco)

Time Scope: The study uses secondary data from 2018 to 2023 Primary data

collection will be conducted through surveys from July 2024 to October 2024

IV Research Methodology

Regarding data collection and processing methods:

Primary Data:

Primary data is collected through in-depth interviews with surveyed 100 participants (customers & experts) on Habeco advertising perception and suggestions Analyze using descriptive statistics (satisfaction) and thematic content analysis (open-ended feedback)

Data Collection Instrument: Data was collected using a structured questionnaire (see Appendix) comprising two main sections: (1) questions assessing agreement levels and perceptions of advertising efficiency, incorporating both scaled responses and open-ended feedback, and (2) questions gathering general demographic information from respondents

Data Analysis Techniques: Descriptive Statistics to calculate frequencies, percentages, mean, and standard deviation to summarize the overall sentiment

Qualitative Content Analysis: For the open-ended questions on perceived efficiency and suggestions to identify recurring patterns, themes, and key insights from both customer and expert responses

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Secondary Data:

The processing of secondary data, primarily sourced from Hanoi Beverage Joint Stock Corporation (Habeco)'s financial reports on the Ho Chi Minh Stock Exchange (HOSE) and relevant publications, will be guided by the principles

Beer-Alcohol-of descriptive statistics and trend analysis This approach is particularly relevant given the opponent's feedback emphasizing the need for a year-over-year comparison and a more in-depth examination of the relationship between advertising budget and marketing efficiency

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CHAPTER I THEORETICAL FOUNDATION

1 Concept and Role of Advertising in Business

1.1 Definition of Advertising

Advertising refers to the strategic communication of a product or service to a target audience through various media channels

1.1.1 Definitions of Advertising by Scholars and Professional Organizations

According to Kotler and Keller (2016), advertising is any form of communication conducted through a paid media channel to introduce and promote a product, service, brand, or idea to the public, aiming to generate customer action

The American Marketing Association (AMA) defines advertising as a personal communication with consumers through mass media, with costs covered

non-by a business or organization to promote a product or service

Philip Kotler considers advertising a paid marketing communication tool, where messages are conveyed through mass media channels to reach target customers and create awareness about a product, service, or brand

1.1.2 Distinguishing Advertising from Other Communication Activities - Public Relations (PR):

PR builds and maintains a positive image for a business through unpaid activities such as organizing events, media articles, or community collaboration

Unlike advertising, PR does not directly encourage consumption but focuses

on enhancing brand recognition and reputation

1.2 Role of Advertising in Business Activities

1.2.1 Brand Promotion and Image Building

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Advertising helps businesses build and reinforce their brand image in customers' minds Through consistent and creative messaging, advertising differentiates the brand and enhances brand recognition

1.2.2 Stimulating Customer Demand and Consumption Habits

Advertising changes customers' perceptions and shopping habits by providing information about products and their superior advantages Advertising campaigns can create new demand or stimulate customers' latent needs

1.2.3 Creating Competitive Advantage and Increasing Sales

Advertising is an essential tool that helps businesses gains a competitive edge in the market Companies that invest in advertising can reach customers more quickly and extensively than their competitors At the same time, effective advertising can drive sales growth by attracting new customers and maintaining the loyalty of existing ones

In summary, advertising not only helps businesses promote their products but also plays a strategic role in enhancing brand image, driving consumer demand, and creating differentiation in a competitive market

2 Advertising Budget

2.1 Definition of Advertising Budget

An advertising budget is the amount of money that a business allocates for promoting its products, services, or brand through various media channels such as television, print, social media, online advertising, and other means The advertising budget includes not only the costs paid to advertising channels but also the expenses for creating advertising content and any related service fees

An advertising budget is the allocated financial resources a company commits to its promotional activities

Key components of the advertising budget include:

Content production costs: This covers expenses for filming commercials, designing banners, editing content, or taking product photos

Media costs: Payments for placing advertisements on channels such as television, radio, print, social media, and online platforms

Service fees: This includes fees for hiring advertising companies, media experts, or agencies

2.2 Methods for Determining Advertising Budget

Percentage of Revenue Method:

Businesses set the advertising budget based on a fixed percentage of annual revenue or expected future revenue

Advantages: Simple, easy to implement, and suitable for businesses looking

to control costs

Disadvantages: Not flexible to market changes and may not optimize advertising efficientcy during periods that require increased communication

Competitive Parity Method:

Businesses budget for advertising based on the advertising costs of competitors in the same industry to maintain or improve their competitive position

Advantages: Helps businesses compare and adjust their advertising strategies according to the competitive market

Disadvantages: Highly dependent on competitors' strategies, which can lead

to ineffective spending or not aligning with the business's specific goals

Objective and Task Method:

The budget is determined based on specific objectives that the business wants to achieve (such as increasing sales, expanding market share, or enhancing brand awareness) and the tasks necessary to achieve those objectives

Advantages: Helps businesses optimize their budget according to specific goals, ensuring higher effectiveness

Disadvantages: Requires businesses to have a specific plan and the ability to accurately measure the efficientcy of each task

2.3 Factors Influencing Advertising Budgeting

Marketing Objectives and Business Strategy: The advertising budget should

be developed based on specific marketing objectives, such as increasing brand awareness, growing market share, or boosting sales Additionally, the long-term business strategy determines the priority for advertising and the corresponding budget

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Market Trends and Consumer Behavior: Consumer trends and market fluctuations greatly affect the decision on advertising budget allocation Changes in consumer habits, such as the shift from traditional shopping to online shopping, require businesses to adjust their advertising strategies and budgets accordingly

Product and Brand Characteristics: Products with short life cycles or in highly competitive segments typically require larger advertising budgets to maintain market share New brands need to invest heavily in advertising to build brand recognition, while established brands can optimize their budgets by focusing on customer loyalty

Competitive Strategy within the Industry: In highly competitive industries, businesses need to invest substantial advertising budgets to differentiate themselves and surpass competitors Conversely, in industries with fewer competitors or stability, the advertising budget can be optimized by focusing on targeted marketing activities

Habeco’s advertising budget planning is influenced by various factors, including peak consumption periods and customer consumption trends High-demand seasons, such as Lunar New Year and summer, are times when beer consumption rises significantly, offering an opportunity for advertising campaigns

to achieve maximum effectiveness Below are some key factors impacting advertising budget planning and ways Habeco can adjust to optimize profits

Peak Periods of the Year:

 Lunar New Year: This major holiday sees a significant increase in beer consumption due to family and friend gatherings Habeco can boost its advertising budget 1-2 months before Lunar New Year to enhance brand recognition and encourage consumption as the peak season begins

 Summer: With hot weather, beer consumption tends to rise, especially from June to August During this period, Habeco can allocate a larger portion of the budget to advertisements on television, social media, and outdoor events to attract customers

Consumer Trends: Changes in consumer habits and preferences can influence advertising budget planning For instance, there has been a recent increase

in demand for new-flavored or non-alcoholic beer products Habeco might consider allocating part of the budget to trial campaigns and advertisements that cater to

 Effective Advertising Channels: Selecting the right advertising channels for each period is also crucial During peak seasons, Habeco can ramp up ads on television, social media, and outdoor channels In contrast, during low seasons, it can shift to online channels to save costs while maintaining adequate reach

By flexibly adjusting the advertising budget according to different consumption periods, Habeco can optimize profits and ensure effective brand coverage throughout the year

In summary, creating and managing an advertising budget is not just about determining costs but also an important strategy that helps businesses optimize marketing effectiveness, increase sales, and maintain competitive positioning in the market Each method of budget determination has its own advantages and disadvantages, and factors like business goals, market trends, and product characteristics need to be carefully considered in the advertising planning process

2.4 Marketing efficiency and Measurement Metrics

2.4.1 Definition of marketing efficiency

Marketing efficientcy refers to the extent to which a business’s marketing activities achieve the set goals, from revenue growth and improved brand recognition to expanded market share or enhanced customer engagement It reflects the business's ability to use marketing resources to achieve the highest efficientcy while minimizing unnecessary costs

Marketing efficiency is defined as the ability to optimize advertising expenditures to maximize returns

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The components of marketing efficiency would likely involve factors related to how well marketing spending, particularly advertising expenditure, translates into positive financial outcomes

2.4.2 Measurement metrics

Financial Metrics

These metrics directly tie marketing activities to financial outcomes:

Return on Marketing Investment (ROMI):

This is a primary indicator of efficiency, measuring the profit generated from marketing activities relative to the total marketing investment

o How to Measure: ROMI = (Revenue Generated from Marketing - Cost of Marketing) / Cost of Marketing

o Explanation: Measures overall profitability of marketing spending A higher ROMI is desirable

o Relevance: Essential for showing the overall financial return from Habeco's marketing efforts

Return on Ad Spend (ROAS):

As defined earlier, this specifically measures the revenue generated for every dollar spent on advertising

o Formula: Revenue Generated from Advertising / Cost of Advertising

o Explanation: Specifically measures the revenue generated per dollar spent on advertising

o Relevance: Crucial for evaluating the efficiency of Habeco's advertising budget allocation

Marketing Spend as a Percentage of Revenue:

This ratio indicates how much of the revenue is being spent on marketing activities

A lower percentage, while maintaining effectiveness, suggests higher efficiency

o Formula: Total Marketing Spend / Total Sales Revenue

o Explanation: Shows the proportion of revenue allocated to marketing Changes over time can indicate efficiency trends

o Relevance: Helps understand how much of Habeco's revenue is dedicated to marketing

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Sales Revenue per Marketing Dollar:

This metric directly links marketing expenditure to sales outcomes

o Formula: Total Sales Revenue / Total Marketing Spend

o Explanation: Measures how much revenue is generated for each dollar spent on marketing

o Relevance: A straightforward measure of marketing's direct contribution to sales

In summary, marketing efficientcy is a key factor in determining the success

of product and service promotion campaigns Measuring efficientcy through metrics such as sales revenue, marketing spend, ROMI, ROAS will help businesses evaluate the success of their campaigns, leading to optimized strategy decisions in the future Businesses need not only to achieve good sales results but also to build a strong brand and maintain customer loyalty in the long term

2.4.3 Theory of Online Advertising Strategy

Targeted Advertising: Digital platforms like Facebook, Google, and Instagram offer powerful tools for Habeco to target specific demographics such as age, gender, location, and interests This allows for cost optimization and ensures that advertisements reach the right audience

Retargeting: is a strategy to reach out to customers who have previously interacted with Habeco but have not completed a purchase For example, if a customer visits Habeco’s website but does not make a purchase, ads can reappear

on other platforms to encourage them to return and complete the action

Content Marketing and Video Marketing: Content marketing, with articles, short videos about products, and brand stories, can help Habeco attract and retain customers longer Video marketing, especially short videos on social media, is becoming an effective trend for engaging consumers

2.4.4 Dynamic Budget Allocation

Real-Time Budget Allocation: With digital platforms, Habeco can monitor and adjust the advertising budget instantly based on the actual performance of campaigns For example, if an ad shows a higher ROAS than expected, the budget can be increased to maximize profit Conversely, the budget can be cut for ads that

do not yield the desired results

Flexible Budget Allocation According to Consumption Seasons: During peak seasons such as Lunar New Year and summer, Habeco should increase its digital

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advertising budget to capitalize on higher demand In low seasons, the budget can

be reallocated to brand-maintenance campaigns

2.5 Impact of Advertising Budget on Sales and Marketing Efficiency

The central theme is how changes in the Advertising Budget affect both Sales and Marketing Efficiency investigating: Does increasing (or decreasing) the advertising budget lead to a corresponding change in sales and efficiency

 Impact on Sales: sales revenue, unit sales, market share

 Impact on Marketing Efficiency: Return on Ad Spend, Return on Marketing Investment, Sales Revenue per Advertising Dollar

2.5.1 Mechanism of Advertising Budget Impact

- Brand Awareness: Advertising spending helps businesses reach target customers through various media channels such as TV, social media, print, and online ads A significant and consistent advertising investment will help the brand maintain and enhance its recognition among customers Frequent public appearances help the brand "enter the subconscious" of consumers, increasing the likelihood of recall when they make purchasing decisions

- Influence on Perception and Trust:

Advertising not only creates recognition but also helps businesses convey values, core messages, and product quality This builds trust and a positive image for the brand

- Customer Purchase Decisions:

An effective advertising campaign can significantly influence purchasing decisions by generating excitement and encouraging consumers to try new products

or return for shopping Furthermore, advertising prompts customers to act quickly

by introducing promotions or special offers, creating a sense of scarcity or urgency

- Sales Growth through Targeted Advertising and Marketing:

+ Reaching the Right Customer Base: Effectively allocated advertising spending helps businesses accurately reach potential customer segments through digital marketing tools such as Facebook ads, Google Ads, or email marketing Current digital advertising platforms allow businesses to target customers based on specific criteria such as age, geographic location, interests, and shopping behavior, optimizing marketing effectiveness

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+ Increasing Sales: When marketing activities target the right audience, products are promoted to those with the highest likelihood and need to purchase, thereby enhancing conversion rates Timely advertising campaigns (e.g., promoting beverages in summer) can boost consumer demand and generate significant sales growth Moreover, effective advertising can increase shopping frequency and average order value by conveying messages about complementary or upgraded products

2.5.2 Advertising Budget Impact Analysis Model

2.5.2.1 AIDA Model (Attention - Interest - Desire - Action)

AIDA is one of the fundamental models that describe the customer journey from the moment they encounter an advertisement to their purchase decision

The model consists of four main stages:

 Attention: The advertisement captures the customer's attention

 Interest: Customers begin to show interest in the product or brand

 Desire: Customers desire to own the product after learning more information

 Action: Customers take action to make a purchase

Application in Advertising Budget: The advertising budget should be allocated appropriately for each stage of the AIDA model to optimize conversion potential

2.5.2.2 Optimal Budget Allocation Model

+ Model Description: This model helps businesses optimize their advertising budget allocation to achieve the highest effectiveness

It is based on the principle of maximizing ROMI by investing in channels and campaigns that can generate the highest sales at the lowest cost

+ Application Method: Analyze data from previous advertising campaigns to identify the most effective marketing channels Use advanced analytical tools to forecast outcomes from new expenditures, helping businesses optimize their budgets Adjust the budget in real-time based on campaign performance, ensuring spending is focused on channels that deliver the best results

2.5.2.3 Descriptive Statistics & Trend Analysis Model

Descriptive Statistics: These are methods used to summarize and describe the main

features of a dataset They provide a snapshot of the data's central tendency (e.g., mean, median, mode), dispersion (e.g., standard deviation, range), and shape (e.g.,

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through histograms) Descriptive statistics aim to present quantitative data in a clear and understandable way

Trend Analysis: This involves examining data over time to identify patterns, such as

increases, decreases, stability, or cyclical variations Trend analysis helps in understanding the historical behavior of variables and can provide insights into potential future directions

Descriptive Statistics Calculation:

 Measures of Central Tendency:

o Mean (Average): Calculate the average advertising spending and average sales revenue over the period

o Median: Find the middle value of advertising spending and sales revenue when the data is ordered This is less affected by outliers

 Measures of Dispersion:

o Standard Deviation: Calculate the standard deviation for both advertising spending and sales revenue to understand the degree of variability around their respective means

o Range: Determine the difference between the maximum and minimum values for both variables

 Frequency Distributions and Visualizations:

o Create histograms or frequency tables to visualize the distribution of spending and sales

Trend Analysis:

 Time Series Plots (Line Charts):

o Increasing or Decreasing Trends

2.6 Previous Research Related to Advertising and Sales Growth

2.6.1 Overview of Domestic and International Research on the Impact of Advertising on Sales

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2.6.1.1 Foreign Studie

Kotler & Armstrong (2018): In their research, these two researchers assert

that advertising plays an essential role in promoting consumer awareness and increasing market demand Advertising is considered a vital tool for businesses to achieve expected sales and increase market share in a competitive environment

Batra, Myers, and Aaker (1996): This study indicates that not all

advertising investments yield equivalent effectiveness The efficientcy of advertising depends on the creative approach and the correct timing and channel for distributing the ads

Berger & Milkman (2012): Advertising has a positive impact on product

spread, especially when combined with word-of-mouth factors Ads with strong emotional content tend to generate better viral effects and drive stronger sales

2.6.1.2 Domestic Studies

Nguyễn Đình Thọ and Nguyễn Thị Mai Trang (2011): Their research on the impact of advertising in the fast-moving consumer goods sector in Vietnam shows that advertising contributes to increased brand recognition, leading to significant sales growth during the product launch phase

Trần Minh Quân (2018): In his study analyzing advertising efficientcy across digital media channels in Vietnam, the author points out that online advertising (Facebook, Google) achieves the highest efficientcy when targeting younger urban customer groups

2.6.2 Results, Methods, and Lessons from Previous Research

- Results from Previous Research: Previous studies show that advertising

plays a positive role in boosting sales, particularly when businesses implement consistent and multi-channel campaigns Advertising budgets need to be continuously invested to maintain brand recognition and prevent product obsolescence

Campaigns with creative and emotional elements (humor, storytelling) often yield better results than standard informational ads

- Research Methods: Previous studies primarily used linear regression

methods to analyze the relationship between advertising spending and sales Survey and qualitative analysis methods were also employed to measure customer awareness of the brand following advertising campaigns

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- Lessons from Research: Effective advertising targets the right audience:

Targeting the wrong customer group will lead to wasted budgets and reduced marketing effectiveness Timing and frequency of advertising significantly influence effectiveness: Long-lasting campaigns with regular appearances usually help maintain customer interest and create more purchase opportunities Multi-channel advertising is more effective: A combination of traditional advertising (TV, print) and digital advertising (social media, Google) helps optimize efficientcy and increase customer reach across various platforms

2.6.3 Research Gaps and Novelty of the Topic

- Research Gaps:

Optimizing advertising budgets in the long term: Many studies focus on the

short-term efficientcy of advertising but do not deeply explore how to optimize advertising budgets in long-term strategies

The impact of advertising in specific industries: Most studies concentrate on

the fast-moving consumer goods (FMCG) sector, while there is limited research on advertising efficientcyin the beverage and food industry, particularly beer, alcohol, and soft drinks in Vietnam

The impact of digital advertising in the new era: While many studies have

examined the effects of traditional advertising, the influence of digital

advertising, especially on new platforms like TikTok, YouTube, or Instagram, still needs further exploration

- Novelty of the Topic:

Focus on the beer, alcohol, and soft drink industry: This topic will provide

new and in-depth insights into the impact of advertising budgets on sales and marketing efficientcyin a specific industry with strict advertising regulations

Application of modern analytical models: The topic will use regression

analysis and optimal budget allocation models to evaluate advertising spending effectiveness, proposing more optimal solutions for businesses

Evaluation the impact of digital advertising: The topic will specifically

study the effects of advertising on digital media channels, especially social media,

on brand recognition and sales growth

In summary: The overview of previous studies shows that advertising plays a vital role in boosting sales and enhancing brand recognition However, there are still gaps in research on long-term advertising budget optimization and evaluating

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advertising efficientcy in specific industries like beer, alcohol, and soft drinks This topic will provide new contributions by focusing on a specific sector, utilizing modern analytical models, and further evaluating the role of digital advertising in the context of the Vietnamese market

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CHAPTER II: THE CURRENT STATUS OF ADVERTISING BUDGET IMPACT ON SALES GROWTH AND MARKETING EFFICIENTCYOF HANOI BEER - WINE - BEVERAGE CORPORATION (HABECO)

1 History of Formation and Development of Habeco

Hanoi Beer - Wine - Beverage Corporation was established under Decision

No 75/2003/QĐ – BCN dated May 16, 2003, by the Minister of Industry; it operates as a state-owned enterprise organized in a parent-subsidiary model With a unique technological expertise and a century-old tradition, along with a modern equipment system and a skilled, dedicated workforce, the company's products have won the admiration of millions of consumers both domestically and internationally The Hanoi Beer brand today has been built and crystallized from many generations, representing consumer trust and national pride

The predecessor of the Corporation is the Hommel Brewery, which has a tradition of over 100 years of establishment and development with historical milestones such as:

In 1890: The Hommel Brewery was established and produced its first batches of beer

In 1957: The Hommel Brewery was restored and renamed Hanoi Brewery on August 15, 1958, successfully producing Truc Bach beer, followed by Hong Ha, Hanoi, and Huu Nghi beers

In 1993: Hanoi Brewery was renamed Hanoi Beer Company and began investing in modern equipment to increase its capacity to 50 million liters per year

In 2003: Hanoi Beer - Wine - Beverage Corporation was established based

on the reorganization of Hanoi Beer Company and its affiliates

In 2004: The project to invest in deep technological modernization, increasing Hanoi Beer’s capacity to 100 million liters per year, was completed and put into use, meeting the increasing demands of consumers for both quantity and quality To date, the Corporation plays the role of the parent company with many subsidiaries, affiliated companies, joint ventures, and dependent units spanning from Quang Binh in Central Vietnam to the Northern provinces and cities

On June 16, 2008: HABECO transitioned to a joint-stock company model, officially operating under the joint-stock mechanism and continuing to expand production scale

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In 2010: HABECO completed the Hanoi - Me Linh Brewery project, with a capacity of 200 million liters per year, raising HABECO's total capacity to nearly

400 million liters per year

To date, HABECO has become one of the largest enterprises in the Vietnamese beverage industry, with many prominent products such as Hanoi Beer, Hanoi canned beer, and Truc Bach beer The company’s products not only dominate the domestic market but are also exported to many countries worldwide, including Taiwan, South Korea, Germany, and the United States

The main activities of the Corporation include: Production and business of beer - wine - beverages and packaging; Import and export of raw materials, supplies, equipment, spare parts, accessories, and chemicals; Scientific and technological services, investment consulting, creating investment capital, organizing raw material areas, real estate business, and other services and activities

as prescribed by law The average growth rate in recent years is approximately 20% Average revenue increases annually by 30% The contribution to the state budget increases by over 20% on average Profit increases by an average of 12% annually

In implementing the Prime Minister's Decision approving the development plan for the Hanoi beer - wine - beverage industry, Hanoi Beer - Wine - Beverage Corporation aims to become one of the strong corporations, playing a key role in the beer, wine, and beverage manufacturing industry, continuing to make significant strides, meeting integration requirements, and contributing positively to the national economy

2 Characteristics of the Beer - Wine - Beverage Industry and Advertising Activities in Vietnam

2.1 Current Status of the Beer - Wine - Beverage Industry in Vietnam

Market Scale and Key Competitors: The beer - wine - beverage industry in Vietnam is one of the largest markets in Southeast Asia, ranking just behind China and Japan in the Asian region In 2023, the total value of the beer market in Vietnam reached approximately $7.5 billion and is projected to grow to over $14 billion by 2032, with a compound annual growth rate (CAGR) of approximately 7.27% from 2024 to 2032 Major enterprises such as Sabeco, Habeco, and Heineken are currently leading the market with fierce competition for market share Sabeco