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Sabeco corporation
1. SABECO CORPORATION
Internet Marketing Final Project
Group: Memorable
Nguyen Ngoc Tuyen (Leader)
Thai Thi My Trinh
Ho Thi Da Thao
Cong Thi Nhu Nguyen
Lecturer: Pham Toan Thang
2. BACKGROUND
The historical development of Sabeco Corporation is linked to the process of the powerful and
unshakeable development of Saigon beer’s trademark which leads the trademark of beer in
Vietnam. Since June 01, 1977, South Beer Corporation absorbed and managed Cho Lon Beer
Factory from BGI manufacturer, which was established Saigon Factory. Now it becomes Beer-
Wine-NGK Saigon Sabeco Corporation and gets a lot of new members such as Wine Binh Tay
Company, Chuong Duong Beverage Company, Crystal Phu Tho Company, and Commercial and
Service beer-wine NGK Saigon Corporation, which are distributed in all over Vietnam. The
primary factory is located in Ho Chi Minh City.
MICRO ENVIRONMENT
STRENGTHS
With more than 37 years of industry experience and trademark promotion, Sabeco Corporation
has become the biggest player in Vietnamese Beer Market, whose capacity is more than 3 billion
liters of beer last year, according to the report from Vietnamnews.vn published on Thursday, 10
July 2014. As a result, the market share of Sabeco leads in Vietnamese Beer Market by 51.4 per
cent in 2014. In addition, Sabeco has 15 branches in all over Vietnam.
This reduces sharply the transportation’s costs so that this also would lead to the prices of Sabeco
Beer to be cheaper than any competitive brands. Moreover, Sabeco collaborates with 9
companies, which produce essential materials that are used for Sabeco’s manufactories. This
represents that Sabeco always has suppliers source stably. All these followed above are the
3. reasons why the prices of Sabeco’s products are quite cheaper than others. This is also strength
of Sabeco Corporation. In fact, consumer are extreme flexible with the price of products.
Market share in Vietnam’s beer market in 2014
Source: Brands Vietnam
Therefore, they will be interested and choose Sabeco’s products. Furthermore, Sabeco has many
kinks of products with different prices that would give their customers flexible choices in use. To
make less severe in costing of transportation and expand the market, Sabeco has established a
department in Phnompenh-Campuchia. It is a potential market of beer in South-East-Asia.
4. WEAKNESSES
Beside the number of strengths, Sabeco also has some weaknesses, which must be improved to
compete with others. One is the taste of beer is not delicious compared to competitive brands. In
specifically, Heineken and Tiger are more delicious than some kinks of Sabeco’s products. The
second one is the design of package is not attractive in comparison to Heineken and Tiger.
Additionally, the most important weakness is behind in e-presence, which would miss the
amount of opportunities in sale and promotion.
MACRO ENVIRONMENT
OPPORTUNITIES
In recent years, consumer has become heavy internet-users. This is an opportunity for Sabeco
Corporation to promote their brand and their products to customers also. At present, Sabeco
lunched website www.sabeco.com.vn and Bia Saigon fanpage to promote their products and
make a forum for their customer’s interaction. These are the very important thing for receiving
feedback from their customers so that they will have changes to adopt customer demands.
More importantly, Sabeco is the leader in Vietnamese Beer market with its population of 80
million people consumed 2.9 billion liters of beer in 2013. It is a very big market that would
provide potential opportunities for Sabeco in increasing sales and profits as well. Moreover,
according to Ms. Vu Thi Minh Hanh – deputy chief of the Health Strategy and Policy Institute
under the Ministry of Health, there are ‘80 percent of young people in Vietnam drink beer or
alcohol, with women accounting for 36 percent.’ This represents that there are a large amount of
5. people using beer and this is also an essential opportunity for developing some new kinds of beer
for women.
Additionally, the amount of beer used in foreign market is increasing highly. In fact, according to
website www.statista.com, there are ‘about 42 percent of the sales of the bar and nightclub
industry is made up of beer and ale sales’ and ‘according to Scarborough Research, more than 24
million people in the U.S. bought beer at a nightclub or bar, while wine was bought by around
7.5 million customers.’ With the performance of export to more than 15 countries around the
world, Sabeco will have an increase in exporting beer so that they could raise their sales. These
would lead to the increase in revenues and profits as well.
All in all, there are so many advantages opportunities to be successful in doing business for
Sabeco Corporation because of the significant development of technology, the large amount of
recent customers, the dramatically development of population, and the increasing of people using
beer in the world.
THREAT
Firstly, the unstable laws and policies in Vietnam could affect on the costs of producing
products. In specially, in 2005 the Government taxed at a rate of 75 percent just for alcoholic
drink but in 2010 they not only taxed on drinks but also taxed on the packages. This makes a
difficulty to control the changing prices to adopt the satisfaction of customers. Moreover, the
taxation costs too much as the table followed below:
6. Secondly, because of the characteristic of doing fuel business is a monopoly so that the price of
fuel is always increasing. Thus, the costs of deliveries for beer are also increasing. This is a
disadvantage effect on strategy business campaigns.
Thirdly, Vietnam has joined to WTO so that Sabeco have to compete with many international
competitive companies such as Budweiser. This could make a decrease in prices or an increase in
expenses of advertisement.
Fourthly, if there were natural disasters taken place, the raw materials would be affected by
increasing the prices.
Lastly, in recent years, the level of knowledgeable people has increased. They already have
known that drinking too much beer could make the disadvantages for their health. Additionally,
people are now taking care strongly on their health. Therefore, the perception of people tends to
use healthy products such as green tea, bird nest, fruit juice, etc. This could make a decrease in
sales of beer. This also would lead to a falling in revenues.
7. COMPETITIVE ANALYSIS
BEER SAI GON HA NOI
HEINEKEN(
VIETNAM)
PRODUCT
Saigon Larger
Saigon Export
333 Cans
Saigon Special
330ml /450ml
Bottle
Lager beer
Steam beer
Truc Bach
Classic Beer
Bottle 33CL
Can 33CL
STR Bottle
PRICE
Saigon Larger :
195,000VND
(Bottle) /
295,000VND
(Can)
333Cans:
215,000VND
330ml :
210,000VND (24
cans/ bin)
330ml/bottle:
8,000VND
330ml/can:
16,500VND
500ml/can:
28,000VND
Bottle :
15,500VND
SEGMENTATION
In domestic
distribution
systems: 10
systems stretching
from South to
North.
In the world:
distributed in
many different
countries.
Product
distribution
system
concentrated
largely in
northern markets.
Marketing mix
Focus on the
premium
market: those
with high
income
Marketing mix
MARKETING
ONLINE
Website
Website
Y!M
Skype
Email
Website
Facebook
Twitter
Apps
PROMOTION
There are many different
promotions for each kind
of beer.
Ex: Buy 333 beer win
million money. Cover
bottle on now- receive
money with Saigon Beer.
Promotions from time to
time
Ex: Passionate football -
Discover unexpected.
Buy small bottles win big
bottle
Heineken is not focused
on the specific
promotions, just focus
on creating sequence of
events in each period
and region.
8. PRODUCT
333 Premiums and Saigon Special Beer:
Advantage:
333 Premium is a long traditional product which is not only loved by domestic customers
but also the international ones. Beer 333 Premium is exported to more than 17 countries
in the world such as America, Australia and so on. This product is made with all fine
ingredients: Water, Malt, Rice, Hops.
Saigon Special is a product which has 100% Malt ingredient (no rice); it is produced on
the most advanced and modern technology line. This product has a unique flavor which is
different from all others on the market. It’s also loved by international customers.
Disadvantage:
The outlook of these products is the biggest problem. The packages are not fit with the
quality of the products. They are too casual, not so special and can’t catch lots of
attentions.
Way to improve this product:
Change the outlook of the product by adding more interesting and attractive colors and
reducing the white color. Moreover, changing the logo to make it looks more powerful and
expensive is also a great way to capture the attentions of high class people.
New plan for the company:
Create new product: Saigon Glamour:
9. This is the product which is made for women. It is made with the low degree of alcohol and
won’t make lady to get drunk easily. The flavor is not so different from other beers. Moreover,
the beer has a pleasant smell which will make women feel comfortable. The package for this
bottle will use tender colors such as pink and golden. The shape of the bottle will be thinner and
taller.
PROMOTION
Company often gives out promotions to different kinds of beer in some special occasions such as
Tet, Company’s foundation day, World Cup, etc. Company uses many different ways to attract
customers: give free gift when buying product, price discount, give out chances to win valuable
prize such as cars, gold... Here are some promotion campaigns from the company:
“MUA 333 CÀO RA TIỀN TRIỆU” this promotion is for 333 premium cans and applied in more
than 35 cities in Vietnam. All the winners will receive valuable prize: 100 first prizes, each prize
equals 33 million VND; 333 second prizes, each prize equals 1 LCD TV and thousand of third
prizes, each prize will be a free 333 premium can.
Way of improvement:
Promotion is a good way to capture customers. However, lots of companies also use this as the
way to have more customers. Therefore, Sabeco should choose the best way of promotion to
become stand out in the market. The company should give higher value of the prizes and always
combine their products in every prize. Moreover, they should allow everyone who buys their
product can win a prize (a prize can be a can of beer) so that people will be more attractive to
their products.
10. PLACE
Offline channel
Sabeco has established stores not only in Vietnamese Market such as Ho chi Minh, Hanoi, Can
Tho, Da Nang and so on but also in foreign market with over 15 countries such as US,
Kampuchea, Canada, etc to sell their products. However, it is not enough condition to improve
their sales. Therefore, in recommendation, Sabeco should have more warehouses not only
reducing their costs but also promote their image. Additionally, Sabeco should build more
billboards on the street corners and restaurants as well. More importantly, Sabeco should give
PG teams to the restaurants to sell products and promote their brands.
Online channel
Firstly, Sabeco should create a forum on their website to motivate their customers interacted with
company so that they could receive customers’ feedback. For instant, Sabeco should make
weekly event to provide information about their products and their image also. Moreover,
Sabeco should collaborate with some famous websites, which have a strong traffic to put their
banner to get impressions from customers.
Secondly, Sabeco should post more information about their products on their fan page to give
their customers are well known about the benefits of using their products such as customers can
win the game with very high value so that they would buy more products. Additionally, Sabeco
should use more social network technique such as Twitter, Zalo, Line, Viber etc to advertise their
promotion.
11. Lastly, there is a new method to promote products recently. It is the Social-Wifi-Marketing,
which will develop rapidly in few months. Sabeco should update this method to keep up with the
development of marketing campaign. Vietnam has some places using Social Wifi free such as Da
Nang, Hai Phong. Therefore, Sabeco should use this method on these places to promote
marketing campaign.
PRICE
The company chooses the suitable price for its product. The prices are around:
Package of 24 cans (330ml): 333: 215,000VND
Saigon Special: 280,000VND Package of 20 bottles (330ml):
333 Premiums: 130,000 VND
Saigon Special: 190,000 VND
Way of improvement:
Lots of people are using Saigon Beer. Therefore, the increasing price is not become a normal
thing. However, the price shouldn’t raise so much. It should increase only 1%-2% from the
current price so that the customers still please to buy the product.
BUYERS/CUSTOMER
Vietnam is a country with a population of nearly 40 million young people ages 20 to 40, the age
of the consumption rate of the highest beer products. Production of beer consumption in Vietnam
12. is forecast to continue growing in the coming years. In this intermediate beer market is forecast
to achieve the fastest growth.
Segmentation by geographic area: the domestic market and overseas markets.
• Larger Saigon: Saigon Beer bottles were produced and widely distributed throughout the
country.
• Export Saigon: Saigon Beer bottles were produced and widely distributed throughout the
country, especially from South Central back on.
• 333 Can: 333 Beer cans were produced and widely distributed throughout the country.
• Saigon Special: Special Saigon Beer bottles were produced and widely distributed
throughout the country, especially in big cities like Ho Chi Minh, Hanoi, Da Nang, Can Tho and
Nha Trang.
Segmentation by income: the beer company's products SABECO segmented into three
main markets
• Bia Hoi: focus on ordinary class with affordable price.
• Segment pasteurized beer cans or bottles: focus on the middle class, currently, is
gradually extending in economic growth.
• The smallest segment is a premium beer with a relatively high price: This product line
focuses on wealthier and upper class.
13. ALTERNATIVE EVALUATION INCLUDING CRITERIA
Alternative 1 for PRICE:
Increase price up to 10% (more than 10,000VND) for special occasions such as Tet holiday,
Wedding season, etc. because lots of people will drink beer during these occasions.
Decrease the price from 2% when buying more than 1 package, 5% when buying more than 4
packages. With this plan, people will buy more and the company still can make profit.
Alternative 2 for PROMOTION:
On the market today there are many brands of beer, from popular to luxury, they offer many
attractive promotions. To compete, Saigon beer should have more specific plans and more
consistent. Saigon beer market focused on the lower and middle class (people with low incomes
and average), so to increase product sales, the company needs to offer promotions tied to life
people. For example, the upcoming World Cup will take place; most of the beer brand will
simultaneously offer different promotions. If there is not anything special, Saigon beer may be
blurred.
Make a huge promotion for World Cup “Enjoy World Cup 2014 with Saigon Beer”. The rules
for this campaign are: 10 special prizes: each winner will receive a vacation trip to Brazil for 2
people and 2 tickets to the stadium to watch the final match + one package of Saigon beer, 300
second prizes: each winner will receive 50 million VND + one package of Saigon beer. There are
also thousands of third prizes with lots of interesting gifts (one package of 12 cans Saigon of
beer or T-shirt with logo of Saigon beer…) The total of the prize will be more than 20 billion
VND.
