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1 Develop a sales plan for SAIGON GOLD, which is product of SABECO in the international market.
Revenue of SABECO
According to statistics from the Association of Alcohol Beverage Vietnam,
Holding share of the largest beer is now the Corporation shares Beer Alcohol - Beverage Saigon (SABECO) with 43% market share, consume
1 5 billion liters of beer in 2015. From 2009 to date, profit SABECO rose
more than 2 times, from 2,000 billion to 4,400 billion VND on. SABECO
revenue also rose more than 2 times in 2015, reached 27.000 billion.
In 2018, Sabeco announced consolidated financial report 1/2018 quarter
with net sales 7810 billion, a slight increase of 4.6% compared to the same
period last year. After deducting the costs incurred, Sabeco recorded 1,158
billion after tax profit in Q1, down 2.5% compared to the same period of
Cost of sales
Total cost for the advertising and marketing programs
2012 – 2015: According to data from SABECO, 2015 was the year the
brewer spent a record amount for the advertising and marketing, with a
total cost of up to 1,269 billion, the highest ever. The proportion of
advertising costs / revenue to a record high of 4.68%. If calculated from
2012 to date, revenue increased by 25% SABECO after 3 years, the cost
of marketing programs were up 3 times.
2015 – 2018: Sabeco company (SAB) announces consolidated financial
report of quarter 1/2018 sales cost reduction of nearly 13% to 594 billion,
mainly due to reduced advertising costs, marketing (reduction of 33% to
234 billion). Business management expenses increased 9% light up 177
of One can say that beer is a product depends on season, the consumption of
beer depends on the weather. Specifically, the hotter the weather, the beer
consumption needs of the people higher and vice versa for cold weather.
Besides, beer is often consumed outdoors, where there is space, so as to
whether factors affecting beer consumption activities.
The Corporation currently owns SABECO 23 subsidiaries and 14
Capacity, SABECO brewery has the highest capacity, reach 1.8 billion
liters / year with 23 breweries spread across the whole country.
In particular, the corporation SABECO export with the highest quality
(reaching 11 million liters in Q3-2017) compared with the remaining
business. This again confirmed its position as number 1 in the beer
The PRESENT – Market Analysis
18-25 years and 25-39 years: Consumer segment of young,
Premium segment will be the segment with the fastest growth
rate benefited from the trend thanks to advanced chemistry are
covered not only beer but also a wide sector of the consumer
size SABECO aims to increase 42-43% market share in the affordable
segment, the premium segment also encroached few%.
(SABECO products currently concentrated in the affordable segment of
about 40%, and 20% in the midrange)
Beer: beer is still the favorite drink for many people, especially
in the North, which is most concentrated in Hanoi
Fresh beer: beer on draught last time really to the throne and
become a new consumption trend. Saigon beer, beer production
enterprise with highest capacity reached 1.4 billion liters/year
also started participating in the playground.
Non-alcoholic beer: Vietnam beer market also started the
appearance of non-alcoholic beer, pioneer in this field is the
SAGOTA beer brand of the Saigon Beer Company. Currently
SAGOTA has been successfully produced in industrial scale
with a capacity reaching 5 million liters per year and have sales
price from 50-60% of the selling price of imported nonalcoholic beer (non-alcoholic beer imports for sale range from
20,000-35,000/cans). Expected, non-alcoholic beer next-time,
will increasingly be the favorite because of the advantages it
brings, along with the strict regulations of the authorities with
the use of alcoholic beverages like beer, wine.
The competition - Competitor analysis
Competitive In Vietnam, this is the segment that has the fierce competition when the
current 40% market share of brand Tiger and 27% belongs to the
Heineken brand in the product line Saigon Special SABECO is also
popular with 28 % market share in this segment. The number of foreign
brands such as Sapporo, Carlsberg, Budweiser has many strategies to
attack the premium segment over time.
SAIGON GOLD - products to list current premium beer for around 500
thousand VND / barrel 24 cans. However, at the present time, the
Company only produced in limited quantities.
Saigon Gold is 100%-cooked products from premium malt supplier
create the world's top quality golden beer.
- Water sources are selected and treated with the most modern
technology allows create the absolute purity of the product.
- Hops used to be kind of scrumptious Hop, produced a limited, make
its own flavor, luxurious style European royal.
- Men are selected from the best yeast and incubated under its own
secrets of leading technology experts of Saigon Beer.
- Product is cooked in tank fermentation technology landscape with a
long incubation period feeling smoothness, balance and harmonious
aroma is very delicate.
The future – Sales and revenue goals
Sales and revenue goals
- Target for 2018 with total revenue of 35.981 billion (increase by 14%),
profit after tax of 4.806 billion (increase by 5%).
- The specific objective is to produce 1.85 billion liters consumed on, up
8% compared to the year 2017 with the market share increases 50%
SABECO aims to increase 42-43% market share in the affordable
segment, the premium segment also encroached few%.
(SABECO products currently concentrated in the affordable segment of
about 40%, and 20% in the midrange).
Mr. Vo Thanh Ha – the chairman of SABECO also set out a number of
targets in 2018 for SABECO. Specifically, the company wanted to
improve domestic market share up by 42% and increase production up
to 1.84 billion liters from 1.78 billion liters in 2017. SABECO also
targets revenue of 39.3 trillion and profit after tax reached 4.9 trillion,
an increase of respectively 11% and 2% compared with 2017.
The sales plan – Actions
SABECO launching portion Saigon Gold Series, marks a step infiltrate a
high-end segment is currently dominated by foreign brands like
Sapporo, Heineken, Tiger and Budweiser. Besides, SABECO expand
and exploit the market for regional markets such as Thailand and
Singapore, thanks to the network of the Group THAIBEY hotel.
SABECO is one of the leading units in the manufacturing industry Beer
- Alcohol - Beverage in Vietnam. After 143 years of construction and
development, SABECO has formed a system with 26 factories Green,
Clean, Beautiful, Saving, Environmental Protection, 10 commercial
companies and 37 affiliate members across the country. Saigon Beer
quality is recognized by prestigious organizations at home and abroad.
2017, continues to stand SABECO top position reputed group company
food industry - Beverage 2017 announced by Vietnam Report.
2017 was a successful year SABECO with output reaching 1 billion 727
million liters of beer, revenue increased 11%. Saigon Beer brand
continues to be the market leader with 40% market share amid fierce
competition subject from brewers stature in the region and the world.
With the Government has successfully divested 53.59% of charter
capital in SABECO and participation of major shareholders - Vietnam
Beverage Co. Ltd. with the new development orientation, believe that
this will be a strategic step to Saigon beer continued breakthroughs and
advances in international markets, continued dedication to consumers in
Vietnam and the world excellent quality products.
Sales Action Because of SAIGON GOLD is a new product available in this market.
Therefore, we apply a plan to achieve the best possible objectives.
Objective 1: “Building image and brand awareness of SAIGON GOLD
as the best beer product to customers in after 5 years, from 2019 to
I use pull marketing, which is the strategy entice retail customers or
consumers, their purchasing by using marketing tools directly impacts
create demand. Through these marketing tools, the objective of the
manufacturer or service provider is how to impact entice, attract
attention, create the demand necessary to stimulate the desire to have the
right product that service in the customer's mind. And when there is
demand, customers will look to the intermediate level (dealers,
distributors) in order to buy products.
Step 1: Building brand awareness (Pricing for Building brand
awareness estimated 80 billion VND per 6 months)
First, SAIGON GOLD is new product on the market, there will be
competition from the same products, therefore, right from the start we
will create a memo called "SAIGON GOLD" in the beginning of the
customer. In fact, the name of the brand is SAIGON, a catchy name,
evocative and easy to pronounce.
Step 2: Building image (Pricing for building image estimated 55
billion VND per 6 months)
Build a system of sharp images: logo, websites, messages ... This helps
to target customers see the consistency of the product / service you in all
the data promoted in all marketing channels. Therefore, It is particularly
important when launching a new product markets.
Step 3: Marketing on different channels (Pricing for marketing
estimated 450 billion per 6 months)
To offer to the market a new product, SABECO reach many different
advertising channels. Besides, SABECO will create promotional
campaigns via e-mail, updates web page, cultural products, sales
promotion, employee communication, trading exhibition to introduce
Advertising on the mass media (Television, radio, Internet, etc.)
PR (public relation) aims to create good relations with media
agencies to introduce them objectively about the product to the
customer, the consumer.
Organizations uses try drink to customers but not yet selling
products, make customer's demand on the rise, more and want the
product that is right.
The estimated price for new market
The biggest challenge for SABECO:
Nsarkoh Unilever said: "You start by asking the question: Consumers can pay for the
item what? Then you ask the question: How can supply at that price? "
To answer the question" How can deliver at that price? ", I will learn marketing schools
in this country.
How to sell to a market that is largely poor, with a price to ensure the company remains
profitable. When SABECO have been Nigerian market knowledge along with the cost is
reduced by competitive pressures, SABECO will have a stronger expansion plans in this
market. To reach consumers mostly poor, new products on the market SAIGON GOLD,
therefore, usually sold at a lower price.
In fact, the Hero of SABMiller beer label was launched with only 150 naira / bottle
(equivalent to 18,000 VND / bottle) compared with 200 naira of market-leading brands
and 250 naira Star of Guinness. In addition, when the input costs increase, companies
usually do not increase the price but change the size of the packaging (ie weight).
However, senior beer line selection HABECO at low prices to attract consumers.
Therefore, we decided to choose the product price is lower than the other brand in this
country. Therefore, the product price is 140 naira, about 400,000 VND/barrels are 24
bottles, equal to the price in Vietnam.
4.3 Investigate opportunities for using exhibitions or trade fairs
4.3.1 Opportunities for exhibitions
Available opportunities in domestic.
+ Vietfood and beverage proPack
In 2017 the exhibition has attracted more than 500 companies, with 600 booths come
from 21 countries and territories. Including 5 national booth area: Poland, Taiwan, South
Korea, China and Vietnam. According to statistics from the Organizing Committee, over
17.000 visitors to visit and work, including more than commercial customers to 10.400
company imported/distributed; the production in the field of food-beverage-Air packet
pick-up, packaging; Supermarket, retail chain stores; Director/Manager of hotels,
Figure 10: SABECO presented product in Vietfood and beverage proPack.
New international opportunities
To be able to contribute to the development of a campaign to expand the scale of
consumption and sales to Nigeria, Africa. Then, attending major trade fairs in Africa
aimed at promoting and testing the product is a good chance in the near future Sabeco.
Moreover, based on the conditions and reasons that the next market for Sabeco will
expand in Nigeria as I have outlined above. Furthermore, there are some great
opportunities for Sabeco integration in the new war.
+ Food Africa 2018: Food Africa is one of the trade fair of food and beverages the
largest in Egypt and North Africa region with the participation of hundreds of businesses
from the region and around the world. The fair also attracted visitors from around the
world to search for partners and customers. The main products of the Fair include:
agricultural products (pepper, rice, coffee, tea, ...), food processing, seafood, dairy
products, fruits, vegetables, beverages ... 2017, the Fair has attracted the participation of
294 companies from 32 countries and over 10,000 visitors to the trade and sightseeing.
+ South Africa International Trade Fair (SAITEX 2018) & Africa's Big Show 7
Saitex 24th held in 2017 recorded more than 320 companies attended the series of
exhibitions, from 26 countries and attracted 5,740 visitors participated in the three-day
event, along with 18 specialized seminars were held, there were 132 participants from 12
countries, with many of the results, specific transactions can be done successfully.
Moreover, Africa's Big 7 is the annual fair of food and beverages and are often held in
parallel with Saitex in Johannesburg, South Africa.
Some benefits Sabeco will received if they join in this trade fair like:
- Promote Sabeco products
- Meet directly between sellers and buyers from Africa
- Establish partnership potential
- Search for agents and distributors
- Realization of business opportunities
4.3.2 Selling at exhibitions
a. Preparing and planning
Firstly, good staff is the necessary thing for Saigon Gold to exhibit. It is nicest if the staff
has about 20 people, in which a manager is charge of show organization. Moreover, in the
exhibition, SaiGon Gold must provide efficient information about the product as well as
the exhibition catalogues and the package. Thirdly, to catch the attention of customers,
the posters must be noticed. In addition, the uniform for staff to advertise Saigon Gold
plays an important role because it represents for their company’s face. It should be the
yellow color, which is similar to the symbol color of SaiGon Gold. Sale presentation
must contain enough information (materials, features, flavor,...)
b. At the exhibition
The gathering will last from three to four days. In this way, the limited time exercises
should be completed every day. Alongside the business introduction, clients will be
offered tests of Saigon Gold. Moreover, guests will be furnished with the data of both
Sabeco and the item.
c. After exhibition
The contacts and data of guests will be recorded and put away for future usage. The
prompt satisfaction of the guarantees made amid the display, for example, giving writing
or making deals gets must be done.
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