Marketing plan of strongbow peach ciders

THE FINANCIAL UNIVERSITY OF FINANCE – MARKETINGMARKETING MANAGER TOPIC MARKETING PLAN FOR STRONGBOW PEACH CIDERS IN VIET NAM Members: Majors: MARKETING Specialization: MARKETING MANAGEME

THE FINANCIAL UNIVERSITY OF FINANCE – MARKETING

MARKETING MANAGER

TOPIC MARKETING PLAN FOR STRONGBOW PEACH CIDERS

IN VIET NAM

Members:

Majors: MARKETING Specialization: MARKETING MANAGEMENT

Instructors: ThS Dang Huynh Phuong

1.Tăng Thị Kiều Linh 2021008469 - Leader2.Tạ Thị Phương Thanh 2021008545 3.Đào Trang Diễm Hương 2021008450

THE FINANCIAL UNIVERSITY OF FINANCE – MARKETING

MARKETING MANAGER

TOPIC MARKETING PLAN FOR STRONGBOW PEACH CIDERS

IN VIET NAM

Majors: MARKETING Specialization: MARKETING MANAGEMENT

Instructors: ThS Dang Huynh Phuong

Members:

TP Hồ Chí Minh, 201

1.Tăng Thị Kiều Linh 2021008469 - Leader2.Tạ Thị Phương Thanh 2021008545 3.Đào Trang Diễm Hương 2021008450

INSTRUCTOR'S COMMENT

PROJECT SCORING RESULTS

I'd like to commit to the full extent that the marketing Plan results are the results of ourown team - the results and the data in the subject are honest and entirely objective I take fullresponsibility for my pledge

Ho Chi Minh, 2021

THANK YOU!

First of all, I'd like to thank you very much to the Marketing Graduate school of Financefor bringing Marketing management into its curriculum Particularly, I offer my deepestthanks to the teacher, Deng Phuong, for teaching and imparting valuable knowledge to meduring my recent studies During his time in the class, he added to himself good knowledge,effective, and serious learning These are certainly precious knowledge, and provisions tokeep you safe Management of Marketing is an interesting, highly instructive and practicalsubject Ensure adequate knowledge supply, linked to practical needs of students However,knowledge is very limited and practical access is rather confusing Even if you do your best,

it may be difficult for the marketing plan to avoid the inadequacies and gaps, but if teacherslook into it and help improve my marketing plan

Thank you very much indeed!

MEETING MINUTES TO EVALUATE THE WORK

1 Date: December 15th, 2021

2 Form: Direct

3 Members present: Full presence

4 Member face/ reason: No members are absent

5 The results are agreed upon and summarized as follows:

N

1 Đào Trang Diễm Hương 2021008450 100%

TABLE OF CONTENT

CHAPTER 1: SUMMARY 1

CHAPTER 2: SITUATION ANALYSIS 2

2.1 Overview of Vietnam beer market 2

2.2 Macro-environment analysis 2

2.2.1 Economic environment 2

2.2.2 Socio-cultural environment 3

2.2.3 Political and legal environment 3

2.2.4 Demographic environment 3

2.2.5 Natural environment 3

2.2.6 Scientific and technical environment 3

2.3 Micro-environmental analysis 4

2.3.1 Supplie 4

2.3.2 Customers 4

2.3.3 Competitors 4

2.3.4 Mediators 4

2.3.5 Substitute Products 4

2.4 SWOT analysis 5

CHAPTER 3: S-T-P STRATEGY 6

3.1 Market Segmentation 6

3.2 Target Market 7

3.3 Locating 7

CHAPTER 4 GOALS AND STRATEGY 4Ps STRONGBOW PEACH CIDER PRODUCTS 8

4.1 Target 8

4.1.1 SMART-model goals 8

4.1.2 Business objectives 9

4.1.3 Media objectives 9

4.2 PRODUCTS 9

4.2.1 Nature 9

4.2.2 Logo 10

4.2.3 Packaging 10

4.2.4 Quality 11

4.2.5 Product Support Services 11

4.3 Price Strategy 11

4.3.1 Pricing Target 11

4.3.2 Pricing Method 11

4.3.3 Estimate Cost 12

4.3.4 Choose the final price 12

4.4 DISTRIBUTION 13

4.4.1 Distribution Channel 13

4.5 Promotion Strategy 13

4.5.1 Adverising 13

4.5.2 Promotion 14

4.5.3 PR 15

CHAPTER 5: TABLE OF EXPENDITIES AND TIMELINES 16

5.1 Project Budget 16

5.2 Timeline 16

CHAPTER 6: CONTROL AND CONCLUSIONS 18

6.1 Contingency plan 18

6.2 Conclusion 18 The source: a APPENDIX

LIST OF TABLE

Table 2.1 SWOT

Table 3.1: Segmentation

Table 4.1 Number of products sold

Table 4.2 Estimate Cost

Table 4.3: The final price

Table 4.4: PR activity

Table 5.1: Break-even analysis

Table 5.2: Assumption of project

CHAPTER 1: SUMMARY

Vietnam is considered the largest beer consumer in Southeast Asia, and ranks third inAsia (after Japan and China) This is a potential market to attract big players in thealcohol industry to invest and develop, including Heineken

Heineken is a famous beer brand in the world in general and in Vietnam in particular,born in the beautiful Netherlands Present in Vietnam in 1991 in Ho Chi Minh City, up

to now, Heineken Vietnam is operating 6 factories with 3,500 employees acrossVietnam This is an innovative company that combines international experience withdeep knowledge and understanding of the Vietnamese market In order to provideVietnamese consumers with a diverse product portfolio to serve different needs,interests and entertainment moments, Heineken manufactures and sells Heineken®,Tiger, Larue, BIVINA, Vietnamese Beer brands and Strongbow in Vietnam

However, with the complicated developments of the Covid Pandemic, the alcoholconsumption market experienced many fluctuations Specifically, in early 2020, whenthe Government's Decree 100 officially took effect, Bloomberg News estimated beerconsumption to decrease by at least 25%, while Heineken announced a 4% decrease inbeer sales However, according to SSI's forecast, the beer market will continue torecover in 2021, but beer demand will not fully recover until 2022 like before theCovid-19 epidemic This is good news for Vietnam's beer industry

Consumers are always eager to try new products, especially young people, so asuccessful product launch will be crucial for brewers to outperform the industry as awhole In the long-term, according to SSI, fermented fruit drinks (cider/perry) willbecome increasingly popular despite high prices, with an estimated compound annualgrowth rate of consumption of 8% over the period 2019-2024, higher than beer, spirits

or wine, Euromonitor estimates Understanding this problem, Heineken Vietnamcompany has launched Strongbow Peach Cider product to the market Below are theinfo of the 2021 Marketing plan for the Strongbow Peach Cider product

CHAPTER 2: SITUATION ANALYSIS 2.1 Overview of Vietnam beer market

Vietnam is the largest beer consumer among 11 countries in Southeast Asia Beerconsumption in Vietnam has increased by an average of 6.6% per year over the past 6 years(global growth is only 0.2%) According to Nielsen and VBA, in 2020 there will be about 33million middle-class consumers under the age of 30 and will spend approximately $173 billion

A market that is both large and growing, with strong purchasing power like Vietnam has beenand is a lucrative land for beer companies to exploit

Not only that, the strong export markets of Vietnam (ASEAN countries, China ) are allmarkets with high growth rate of food and beverage consumption Along with a series ofsigned Free Trade Agreements, Vietnamese food and beverages have largely been able toaccess key export markets freely (without tariffs)

2.2 Macro-environment analysis

2.2.1 Economic environment

Source: Vietnam Report, Top 10 reputable companies in the Food and Beverage

industry in 2021, October 2021Due to the epidemic situation worsening when entering the third quarter, the gross domesticproduct (GDP) in the third quarter of 2021 was estimated to decrease by 6.17% compared tothe same period last year

However, the current outbreaks will be gradually brought under control, creatingmomentum for economic recovery in the fourth quarter of 2021 The recovery phase will also

be supported by accelerating the mass vaccination campaign, with at least 70% of the adultpopulation vaccinated by mid-2022 In particular, the Government's Resolution 128temporarily stipulates "Safe adaptation, flexibility, effective control of the COVID-19epidemic" recently issued to help localities and businesses solve logistics and laborbottlenecks, thereby speeding up the recovery of production and business activities.

2.2.3 Political and legal environment

Law on Prevention and Control of Harmful Effects of Alcohol and Beer No 44/2019/QH14promulgated on January 1, 2020 is considered a heavy blow to the alcohol production industry

in Vietnam due to the increasing rate of alcohol users causing accidents when participating intraffic

However, now people are more and more aware, pay more attention to their own health,have seriously obeyed the regulations on safety when participating in traffic, which has helped

a lot in loosening the strictures, strictness of the laws of the State for the alcohol productionindustry.

2.2.4 Demographic environment

Vietnam is a multi-ethnic and populous country with a population of about 98 millionpeople, an average annual increase of 947 thousand people With an increasing proportion ofyoung population (estimated that over 50% of Vietnam's population is under 30 years old) Inaddition to the young market factor, people's income has also increased significantly in recentyears and the habit of shopping for ready-to-eat foods is increasingly popular, the abundanceand abundance of agricultural products - source of raw materials for food and beverageprocessing activities

2.2.5 Natural environment

Our country has a tropical monsoon climate with hot sun all year round Therefore,carbonated drinks and fermented fruit juices are very popular in the Vietnamese market, bothdelicious and refreshing Imagine, in the hot summer day, enjoying a can of cool fermentedfruit juice, the feeling at that time would be wonderful

2.2.6 Scientific and technical environment

Technology continues to develop and become popular The breweries are equipped withproduction lines with the most modern equipment today, leading advanced productiontechnology and all meeting international standards The factory operates on an automatic,closed line, from input materials to output products, ensuring to provide consumers with highquality and safe products

2.3.3 Competitors

Strongbow must compete with many domestic and foreign competitors In Vietnam,Heineken produces and distributes beer brands: Heineken, Tiger, Amstel, Larue, Bivina, Sol,Desperados, Affligem and Strongbow fermented apple juice Vietnamese consumers tend touse beers like Heineken and Tiger more than cider

Besides, Heineken Vietnam Company (Strongbow Distribution Company) also competesdirectly with Saigon Beer - Alcohol - Beverage Corporation (Sabeco) specializing indistributing Saigon beer lines

2.3.5 Substitute Products

Due to local habits and culture, Strongbow is under a lot of pressure from other substituteproducts such as alcohol, mineral water, carbonated drinks…especially, beverage exportmarket: Fruit juices, nutritious drinks have grown rapidly in recent years

2.4 SWOT analysis

Table 2.1: SWOT

- PR strategies are close to target

customers who are young people

- Using famous singers (Min, Den Vau)

as an advertisement for a brand that is

very popular with the public

- Quick access to the target audience

thanks to the integration of gentle chill

songs suitable for the beer-using

environment

- Highlighting social responsibility

such as: The product has a different

message than other beers - "Drink to chill,

- Strategy for product development hasnot had many breakthroughs

- The promotion of the product does nothave a new step

O

- Consumers are more and more health

conscious, so low-concentration

fermented juice is an opportunity to

expand the market

- Science and technology are more and

more modern, it is easier to find out the

needs of customers through data and

surveys on websites, helping Strongbow

to come up with effective online

marketing strategies to earn money

attract customers

T

- Strongbow's online marketing has notyet developed strongly and the price is stillhigh compared to competitors, so it hasnot attracted many customers

- Big companies like Saigon, Tiger have a good reputation, stand firm in themarket for many years, have a moreattractive marketing strategy thanStrongbow

- Technology is developing more andmore, so the security of websites andfanpages faces many difficulties

CHAPTER 3: S-T-P STRATEGY 3.1 Market Segmentation

Income Low/No Low/Medium Low/Medium/High Low/Medium/High

Lifestyle Easy to

changehabits, like

to try anddiscovernewthings, like

to gatherwith

friends andcolleagues

In workingage Easy tochange

habits, like totry anddiscover newthings, like togather withfriends andcolleagues Iwant toassert

myself

In working age Iwant to assertmyself

Knowledge as well

as many socialrelationships I like

to hang out withfriends andcolleagues

In working age Iwant to assertmyself

Knowledge as well

as many socialrelationships I like

to hang out withfriends andcolleagues

Psychology

Character I like a

newexperience

I like a newexperience I like to assertmyself I like to assertmyself

Time Free time,

day off

Free time,holidays

Evening day off

Evening day off

Enjoy withfriends andfamily, cooltaste

Enjoy with friendsand family, cooltaste, bringformality

Enjoy with friendsand family, cooltaste, bringformality

(by urban rural)

3.2 Target Market

Target market: All segments of major cities

Why: These groups of subjects have a great need for consumption, experience, relaxation,and enjoyment with friends and relatives They are usually college students who have incomesbecause they tend to entertain and prioritize drinking as a social The product also does notdiscriminate against any specific gender as it is usable for both men and women

3.3 Locating

Strongbow is the world's No 1 cider brand The original dried cider has been one of UK’sfavorites for 50 years and has now been combined with a range of flavors to suit every taste.Strongbow Apple Cider (fermented apple juice) started to enter the Vietnamese market in

2016 Commercial operations do a great job, bringing impressive sales Strongbow is theperfect drink in the evening to liven up your time with friends and turn them into memorablemoments

CHAPTER 4 GOALS AND STRATEGY 4Ps STRONGBOW PEACH

CIDER PRODUCTS 4.1 Target

4.1.1 SMART-model goals.

S (Specific) - specific, clear

The new product is widely received in the target market and sells 300,000 bottles permonth and 280,000 bottles per month in pubs, beer clubs, restaurants, train and airportcafeterias, supermarket chains, convenience stores and groceries in the first year

M (Measurable) - measurable enough internal force

Use effective strategies to reach VND 5,400,000,000/month (bottled products) andVND 5,600,000,000/month (canned products)

A (Achievable) - achievable enough

According to the report "The demand for alcohol of the Vietnamese people"(conducted by RUNSYSTEM GMO-Z.com Joint Stock Company and INFOQ unit),Vietnam is considered the fastest growing beer market in the world A report byEuromonitor International shows that the development of the middle class and youngpeople have caused beer consumption in Vietnam to nearly triple between 2004 and

2018 In 2019, Vietnam was the third largest beer consumer in Asia in terms of output,although the total population ranked only 15th in the world with 96.2 million people.The average consumption of beer in Vietnam increased by 30% in the period of 2013-

2018, reaching 43 liters per household According to the 2020 residential livingstandards survey published by the General Statistics Office, alcohol consumptionincreased in 2020, from 0.9 liters per person per month in 2018 to 1.3 liters per personper month in 2020 It can be seen that although during the pandemic, the alcohol market

is still growing slowly

With its soothing, crisp and elegant fruit flavors, the Strongbow product line is amust for everyone, regardless of their preferences

Thanks to the constantly increasing demand of the market, Strongbow's products arenot available at distribution points

R (Realistic) – practical

The competitive market for alcohol in Vietnam is quite fierce, so when businesseslaunch new products with cider flavor combined with the mild sweet aroma of peaches

in Vietnam, the product can face some major challenges However, with the reputation

of the world's No 1 cider brand and the help of its parent company Heineken, theproduct will quickly attract attention as well as reception from target customers