III. PRODUCT OBJECTIVES
In year 05/06, Tiger aims to:
- Achieve a turnover of 3,000,000 million VND
- Earn profit before tax of 700,000 million VND
- Return on Assets 35%
- Price: Maintain the current price (8,000 – 35,000 market price)
- Place: Expand the number of agencies by 5%
- Product:
+ Maintain the current product (Tiger beer)
+ Prepare to introduce two kinds of light beer (Happy Tiger and Leopard) in the next three years.
+ Brand awareness: international premium quality brand for high-class people
+ Customer awareness: strong beer aimed to outgoing, sociable people (Ahh campaign), witty, quick-minded hero (Slick Tiger campaign), and sporty people (Tiger Adventure)
- Sales volume: 2,400,000 liters (including Tet sales)
- Market share: 7% of Vietnam beer market
IV. TARGET MARKET DEFINITION
Geographic segmentation:
Tiger Beer took the highest sales and fastest growth rate in the Southern area of Vietnam, followed by the Northern and Middle areas. HCM city become the potential market for Tiger Beer. As the consequence, VBL will put more efforts to invest to Southern area, typically urban as well as suburban areas.
Demographic segmentation:
The significant proportion of beer consumption in Vietnam is male. According to VBL statistics, young people often drink more than others do. Therefore, two important factors that determine the market segment in demographic aspect are sex and age.
The other element that affects on market segments is the level of income. The potential target markets of Tiger Beer is middle to high income classes both urban and rural areas( nearly 64% of Vietnamese population.)
Psychographic segmentation:
Tiger Beer focuses on class that is willing to buy premium quality beers with higher price than other brands. Consequently, it is clear that the primary marketing strategies is to persuade customers focus on product’s quality rather than price.
Customer’s lifestyle is also the key point for identifying market segments. Targeted customers are people who are interested in cool, active, sporty, masculine and experience images.
Behavioral segmentation:
Occasion and Benefit sought:
Customers often drink beer in bars or restaurants to relax and spend leisure time after work or in weekend dinner with their close friends or colleagues.
Customers also drink at home for relaxing before the bedtime.
User status and rate:
After the opening of VBL (1991), in 1993, customers were familiar with Tiger Beer cans produced in Vietnam. Therefore, the recent customers are regular customers, especially urban customers drinking 4-6 times per week (24-30 Tiger Beer cans).
Loyalty status:
Facing strong competition from famous brands such as Forster and Laser Beer, maintaining customer’s loyalty as well as attracting new customers is extremely important responsibilities of Marketing Department.
V. MARKET POSITIONING
- Possible competitive advantages
Product differentiation:
- Always offer high quality beer with international standard
- Being considered with the high reputation as beer for foreigners
Image differentiation:
- Symbol of sporty life and active spirit
- Strong, opened-mind and experienced man
- High desire for winning
- Funny and friendly guys
Service differentiation:
- The customer can find Tiger Beer everywhere
- Strong support for retailer and wholesaler
- Sponsor for designing fee and basic facilities for new restaurants and bars that sell Tiger Beer as main drinking.
- Awards for retailers and wholesaler which have high sale volume
High Price
Heineken
Larue Tiger Beer
Halida Laser Beer
Forster Beer
Less More Delicious
SG Beer
Low Price
Passion and Romantic
Heineken
Corona Tiger Beer
Spy
Laser Beer
Forster Beer
Less Strong and Manly
Halida SG Beer
Less
VI. PRODUCT STRATEGY (4P’s)
The core value of the product is macho physical strength. In addition, it is indispensable in social relations, parties, especially for Vietnamese men.
Brand name:
In this year (05-06), Tiger beer will continue to reinforce its brand name with premium quality beer for active sporty people, as well as prepare to introduce two new beer versions, which are Happy Tiger (light beer, specializing in family parties/ happy occasions (Tet wedding, etc.) and Leopard (light beer, especially made for women) in the next three years.
Quality:
In Vietnam, Tiger beer is perceived as one of premium quality products. Those new Tiger beer versions should also meet this criterion to be aligned with the company prestige and defined target market.
Packaging:
Existing packaging
Suggested packaging
Design
Tiger beer is originally designed with fresh blue and a tiger as a logo, which deliberately inspires a strong and impressive imagery of product aimed at active, sporty target customers.
Together with the two coming light beer versions, the color and design should be adjusted to best fit its target customers (bright blue and orange for Happy Tiger as a expression of happiness, and more sophisticated design for Leopard – women beer). However, the basic blue and orange should be maintained as Tiger identification.
Features:
Based on its target customers’ characteristics and taste, Tiger beer’s feature differentiates its competitors in quality, flavor, packaging, and direction.
Tiger beer tries its best to offer customers with:
+ Well-trained waitresses with excellent service
+ Tiger beer’s uniformed advisory staff
Currently available price
Estimated price for new products
This price level is suggested firstly by cost-based method by the manufacturers. The intermediaries may change the price according to customers’ evaluation of the product’s value and desired profit. Therefore, the variances in market price are due to the distributors and the place where Tiger beer is sold.
Regarding to its target customers’ consideration and Tiger brand name, this current price level is widely acceptable. In the next one year, the pricing strategy will be kept constant.
With the permission of APB, since 1991, Tiger has been produced locally in Vietnam by VBL in Sai Gon beer factory.
Through a conventional distribution channel, from the manufacturer, Tiger beer is delivered to four distributors, then thousands of retailers all over the city.
This year Tiger intends to expand the number of distributors in other cities, such as Hue, Ha Long, Nha Trang, Vung Tau, Can Tho.
Mass marketing
-
Objective: Remind the current customers of Tiger beer, approach to new customers to increase the market share to 7% by 15 September 2006.
-
Budget method: Objective and task method
(see Budget)
+ Message: Premium quality beer made for young, active, sporty people.
+ Execution style:
Lifestyles: Sporty active strong characteristics
Mood/image: A Tiger man image: smart, witty, quick-minded (Slick hero TV campaign)
+ Media:
+ Specific media vehicles – Timing
Television
Other media
Objectives
+ Encourage retailers’ efforts to sell Tiger beer
+ Gain retailers’ reference
+ Attract more retailers
Advertising
Internally popularize among retailers
Prize detail
-
Objective: building and maintaining target customers’ relationship.
- Audiovisual materials:
Personal marketing:
In beer industry, personal marketing is not considered an effective tool due to a large number of end-users. However, in order to compete with other brands, this year, Tiger beer will introduce two new marketing strategies as follow:
Objective: + to improve the relationship with distributors and retailers
+ to increase service quality.
Program:
+ Professionally train its sales and advisory staffs to best handle every difficult situation when dealing with them.
+ Allocate its professional uniformed waiters/waitresses in some restaurants
Objectives: + affect directly to customers
+ make Tiger information accessible over time
Action
+ Hand out brochure to customers in supermarkets, big restaurants
+ Tiger advertising web site will also be available at the beginning of next year
VII. ACTION PROGRAMS
Consumer promotion
Trade promotion
VII. BUDGET
- Expectation of growth of 5% in sales revenue next year owing to the significant change in oil price this year.
The sales forecast is made based on three main periods:
- Period 1: Jan – Feb: Tet season (the most sales volume)
- Period 2: Mar – Aug: the sales revenue reduces significantly alter Tet , especially from May – Aug is the raining season.
- Period 3: Sep – Dec: Sep – Jan of every year is the peak season for Wedding in Vietnam
Total turnover expect: 3,000,000 million VND
Advertising cost as a percentage of sales: 2.35 %
VIII. CONTROL
We will measure the success of each ad campaign against four major measurements:
- Marketing objectives
- Specific campaign goals
- Past results
- Industry averages
Reporting schedule
- Schedule report: 3 types: produced monthly, quarterly, yearly.
- Exceptional report: 2 types: _ Per campaign: reports produced after each
campaign.
_ Per competitors’ action: (e.g.: ad campaign,
new product launch, etc.)
Sales Breakdown
In sales report, sales might be breakdown into categories in order to give a better view for managers. Sales might be broken down by:
- Sales areas
- Packaging format, product version, product flavors etc…
- Customer status, types.
- Customer by demographic, by trade, by size.
- Method of sale: through internet, telephone, direct face to face order.
- Size of order.
Benchmarking
The figure of this year sales will be compared with the following benchmark:
- Past sales: the sales revenue of each period (months, quarters) used to estimate success or failure.
- Sales forecast: sales revenue 2,700,000 million VND, we will use this figure to compare with this year sales in order to evaluate our sale performance.
IX. APPENDICES
It is shorted that Tiger increased its sale volume year by year. It was estimated that percentage growth in the sale volume of Tiger beer in 2000 raised by 100% compared to sale in 1999, then this number continued to increase to 110% in 2004 . Although there was a slight decrease of sale by 3% in 2003 compared to the sale in 2000, overall, these figures indicate an optimistic sign of consumer’s preference for Tiger beer.
Tiger beer factory in Vietnam.
X. REFERENCES
-
APB_Asia Pacific Brewery Limited ( 2001), “Annual report 2001”, viewed on August 31st 2005
[online]
-
APB_Asia Pacific Brewery Limited (2005), “APB’s attributable net profit grows 12% for 1H 2005”, viewed on August 31st 2005
online]
-
EUECC-European Union Economic and Commercial Counsellors (2004), “2004 Report on Vietnam”, viewed on August 31st 2005
[online]
- Nguyen, Duy Binh (D.B)(2005), Brand Manger of Tiger beer, Vietnam Brewery Limited
Mobile: 0903694661 , Fax: 84-8-8221477
-
Quang.T & Pham.H (1999), “Product Extension: the Case of Bivina Beer in Vietnam”, viewed on August 31st 2005
[online]
-
“Executive briefing: Vietnam” (2005), viewed on August 31st 2005
[online]
7. “BIỂU GIÁ QUẢNG CÁO THỰC HIỆN NĂM 2005 TRÊN VTV”, 2004, www.tvad.com.vn
[viewed on 27 August 2005]
8.[viewed on 27 August 2005]
