EIM A2 Project
EIM A2 Project
EIM A2 Project
I. EXECUTIVE SUMMARY 8
II. INDUSTRY CURRENT INNOVATION ANALYSIS 9
1. Heineken 0.0 9
2. Heineken 9
3. Comparison between two innovations 10
III. CURRENT MARKETING ANALYSIS 11
3.1 Market Overview 11
3.2 7P’s Analysis 11
3.3 SWOT Analysis 15
3.4 Perceptual Positions 17
3.5 Target Market 18
IV. CURRENT MICROECONOMIC ANALYSIS 19
4.1 PESTLE Analysis 19
4.2 Market Business Analysis (Supply & Demand) 21
4.2.1 Demand Analysis 21
4.2.2 Supply Analysis 22
V. PROBLEM IDENTIFICATION 23
VI. THE NEW INNOVATION 24
6.1. The New Innovation 24
6.2. New Target Market Profile 24
VII. THE NEW MARKETING MIX STRATEGY 26
VIII. REFERENCES 28
IX. APPENDICES 33
I. EXECUTIVE SUMMARY
Facing the increasingly high alcoholic beer consumption and the negative effect of
beer production on the environment, our group discovered a new innovation that
focuses on a product named Heineken 0.0 in the Vietnamese market. Despite
superior health advantages, the current non-alcoholic variant like Heineken 0.0 still
has plenty of challenges as it has an unattractive taste, which leads to its limited
market share. Accordingly, this project was formed to enhance the quality of this
product and deal with customers' taste concerns, as well as to surely fit customers'
preferences. Therefore, it is predicted to have a positive shift in customers' behaviour
in order to reduce beer consumption and its negative impact on the environment.
Through the marketing mix, Heineken 0.0 is expected to become an appealing
choice and promote health awareness and product sustainability in the Vietnam beer
market.
II. INDUSTRY CURRENT INNOVATION ANALYSIS
1. Heineken 0.0
According to the research's result of Heneiken in Vietnam, more than 80% of
participants stated a desire for more products that promote a balanced and healthy
lifestyle, indicating that Vietnamese people increasingly value responsible alcohol
consumption and living a healthy, balanced existence; therefore, Heineken has
chosen Vietnam as the 58th country for their Heineken 0.0 beverage in March 2020
after three years first launching in the Netherlands (ONLINE, 2020). More
specifically, with a unique formula derived from a delicate vacuum distillation process
that gently removes alcohol content and only 69 calories per 330ml bottle/can, it can
be asserted that Heineken 0.0 is a drink that meets the trend of healthy living in
Vietnam while also allowing consumers to enjoy the taste of beer at any time without
being affected by alcohol content (Tien Phong, 2020).
2. Heineken
Also, Heineken launched the virtual space event series called Starverse Party to
promote the Starverse mobile game platform. Specifically, as an early adopter of the
Metaverse, it can be said that this is a surprising move for Heineken (VEGvn, 2022).
As a result, to easily reach the Gen Z audience, Heineken organized a series of
offline activities combined with exciting online elements at the Starverse Party held
at Crescent Mall (District 7, Ho Chi Minh City) (BRANDSVN, 2022). The event was
invested on a large scale, with an impressive stage design featuring the dominant 3D
Mapping images of the familiar green beer bottle and red star of Heineken (VEGvn,
2022). Heineken provided attendees with the opportunity to enjoy themselves in
mesmerizing laser performances, combined with sound, light, and new virtual reality
experiences. Furthermore, Heineken stirred up the excitement of the stage by
offering various exciting activities through the Heineken Starverse organizers, such
as the chance for attendees to enjoy refreshing beer, directly experience engaging
virtual reality games on the Starverse application, and have the opportunity to win
attractive prizes at the event (Golf&life, 2022). As a result, Heineken successfully
provided an exciting experience for attendees to immerse themselves in the gaming
world, leaving a vivid and unique impression of Heineken in the minds of consumers.
Promotio - Famous for its - Sagota Beer has - Sponsor for the
n promotional deployed many event "Vietcaravan
strategies advertising and Auto
combined with communication Forum"(Vietcaran,
distribution campaigns to raise 2016).
channels, such as consumer
the "Buy 1 Get 1 awareness of the
Free" program brand and
with Shopee products, such as
(Appendix B), the "Sagota - Bia
“GIỜ VÀNG của người Việt"
HEINEKEN: Lắc campaign in 2020,
Xì đón xuân, tân the "Sagota - Bia
niên bừng sắc” của mùa hè"
with Momo campaign in 2022.
(Momo, 2021).
People - The customer - Strict standards for - Invests in
service the training and employee training,
department abilities of workers development, and
supported cultural integration
customers if they - In the field of sales, to a
had any problems duties might be customer-centric
with the product. distributed based workforce.
on clients, goods,
- Teams work with or regions. This - Providing
materials suppliers arrangement allows responsive
to maintain or consumers to customer service
improve the establish a rapport through
quality of the final with the account multilingual
product produced. manager. support, complaint
handling, and a
- Teams from retail focus on
stores support consumer
customers on-site. feedback.
The perceptual position map above demonstrates the position of three non-alcoholic
beer brands, including Heineken, Steiger, and Sagota, at two variables - price and
quality in the Vietnamese market. In detail, Heineken seems to be offering a
high-price product (mentioned in 7P's) that has not satisfied consumers with its
quality yet. Accordingly, more than three-quarters of respondents said the flavour of
Heineken's non-alcoholic beer was not among their preferences (Appendix A).
Meanwhile, at a competitive price, Sagota meets the Vietnamese tastes better as a
domestic beer brand. As a result, 44 out of 70 participants rated this local brand as a
second rank of the highest quality among the three mentioned beer brands, based
on the flavour of its product that brings them positive experiences (Appendix A).
Besides, the brand gained several awards for its best product taste in 2018,
satisfying the experts and consumers when it first launched (mentioned in 7P's).
Furthermore, Steiger is a formidable competitor in the market as a long-standing
beer brand from Czechoslovakia. Despite its high price (mentioned in SWOT), more
than half of the contributors rated the brand outstandingly, ranking it first for best
quality and best tasting beer in their perception (Appendix A). Therefore, it leads to
Heineken needing to consider improvements in the taste of its products to bring the
brand competitiveness in the market and attract more consumers.
PESTLE HEINEKEN
To surmount this challenge, our team proposes a methodical approach involving the
introduction of the innovative non-alcoholic beer variant to individuals with a proclivity
for health-conscious choices and those seeking a palatable substitute for traditional
beers. The delineation of the new target market profile is centred on individuals who
prioritise a healthy lifestyle, value refined taste, and exhibit receptivity to
non-alcoholic beverage alternatives.
The ensuing marketing strategy will accentuate the product's elevated flavour quality
in consonance with the discerned preferences of the target market. In addition,
educational campaigns will be instituted to heighten awareness regarding the
advantages associated with selecting non-alcoholic beer, thereby advocating for a
healthy lifestyle and contributing to societal sustainability. This targeted approach not
only redresses the flavour-related impediment but also situates Heineken 0.0 as a
discerning choice transcending conventional beer consumption, rendering it
attractive to a broader demographic and fostering a positive brand image.
VII. THE NEW MARKETING MIX STRATEGY
● Product
Focus expanding new tastes for Heineken 0.0 line. Start research on Vietnamese
consumers’ preferences about their expectations on new beer flavours. Besides,
consider innovating new packaging for new products to attract new target customers
and differentiate from other beer brands in the market.
● Price
Set an affordable price that is on average the market around 16,000 - 19,000 VND is
likely to ensure achieving the company’s goals. This price range allows Vietnamese
consumers to be able to afford the product and the company to avoid low-buying
rates due to the low GDP of Vietnam.
● Promotion
Heineken can create new promotional strategies by implementing advertisements
and collaborating with F&B firms to educate consumers on healthy lifestyles and
raise awareness of the new non-alcohol benefits. Therefore, new demand for the
products could be generated. Additionally, the company should consider using
multiple marketing channels to increase the effectiveness of its promotion.
● Place
To make the products available and popular to the target audience, distribution
channels should be in the form of both physical and online channels. The new
products can be distributed to online food businesses on food delivery apps like
GrabFood, Loship, Baemin, or ShopeeFood. Moreover, Heineken can also distribute
non-alcoholic beer in local restaurants to gain more audience’s attention.
● People
Employee training programs might be operated to provide practices for a deeper
understanding of new product launches. Work on internal organization first to ensure
employee’s skills, attitudes, and how they interact with customers. Most importantly,
training and development programs are necessary to be reviewed and adjusted
based on business objectives, customer behaviour and market dynamics.
● Process
Identify which areas the company can improve or replace to enhance operational
efficiency. The inventory management should be streamlined by a new technical
system for a lean process. Furthermore, Heineken must adapt different methods to
enhance overall customer experiences.
● Physical evidence
To attract the target audience effectively, the products should be displayed at front
stores in supermarkets or restaurants. In addition, Heineken can create its mascot
for the new launch to support the product, increasing audience attention and brand
image.
VIII. REFERENCES
[Steiger Beer] Nhà Tài Trợ Thức Uống SN VietCaravan. (2016). Diễn Đàn
Vietcaravan.
https://vietcaravan.com/forum/threads/steiger-beer-nha-tai-tro-thuc-uong-sn-vie
tcaravan.506/
Ai, Tran., Phuc, Nguyen., Ngoc, Nguyen., & Dan, Chi. (2022). Heineken CSR based
brand building strategy in Vietnam. 450-457.
David, H. (2023, March 23). European beer giant Heineken fights Vietnam's alcohol
tax. Deutschewellenews.
https://www.dw.com/en/european-beer-giant-heineken-fights-vietnams-alcohol-t
ax/a-65089095
Di, D. (2023). Heineken cắt giảm dự báo tăng trưởng năm 2023 do suy giảm doanh
thu tại châu á. Đầu Tư Chứng Khoán - Chuyên Trang Của Báo Đầu Tư.
Doãn, P. (2018, May 3). Báo VietnamNet. VietNamNet News.
https://vietnamnet.vn/thuong-hieu-bia-steiger-den-viet-nam-446885.html
Đình, Q. (2020, May 12). Heineken 0.0 định hình phân khúc bia không cồn tại Việt
Nam. TUOI TRE ONLINE.
https://tuoitre.vn/heineken-00-dinh-hinh-phan-khuc-bia-khong-con-tai-viet-nam-
20200512180255952.htm
FZE, B. B. (2023, November 6). Target Marketing for Heineken Zero Non-Alcoholic
Lager. UKEssays.
https://www.ukessays.com/essays/marketing/target-marketing-for-heineken-zer
o-non-alcoholic-lager.php
Golf&life. (2022, June 27). Heineken lần đầu ra mắt thế giới Starverse bằng chuỗi sự
kiện mang công nghệ thực tế ảo ra ngoài đời thật, tôn vinh những bí quyết
tuyệt hảo tạo nên vị bia đỉnh cao của Heineken. Tạp Chí Golf và Cuộc Sống.
https://golfandlife.com.vn/heineken-lan-dau-ra-mat-gioi-starverse-bang-chuoi-s
u-kien-mang-cong-nghe-thuc-te-ao-ra-ngoai-doi-ton-vinh-nhung-bi-quyet-tuyet-
hao-tao-nen-vi-bia-dinh-cao-cua-heineken/
Kim, A. (2022, December 12). Heineken plans to pour additional US$500 million in
Viet Nam. Government News.
https://en.baochinhphu.vn/heineken-plans-to-pour-additional-us500-million-in-vi
et-nam-111221212143931023.htm
LAM THINH, D. H. (2023). Evaluate the impact of brand equity on customer loyalty in
the alcoholic beverage market in Vietnam. INTERNATIONAL JOURNAL OF
RESEARCH IN EDUCATION HUMANITIES AND COMMERCE, 04(03),
285–293. https://doi.org/10.37602/ijrehc.2023.4323
Lê, H. T. (2020, May 7). 7 hiệu bia không cồn nổi bật trên thị trường | bởi Lê Hoàng
Trâm. Brands Vietnam.
https://www.brandsvietnam.com/congdong/topic/23942-7-hieu-bia-khong-con-n
oi-bat-tren-thi-truong
Nguyen, Thanh Huong Tra. (2019)/ "FDI in Vietnam".Undergraduate Research.
Nhân dân. (2014, August 18). Vietnam Produces First Alcohol-Free Beer.
ONLINE, T. T. (2020, May 12). Heineken 0.0 định hình phân khúc bia không cồn tại
Việt Nam. TUOI TRE ONLINE.
https://tuoitre.vn/heineken-00-dinh-hinh-phan-khuc-bia-khong-con-tai-viet-nam-
20200512180255952.htm
P. L. (Ed.). (2020, January 17). Ra mắt sản phẩm Bia không cồn vị nguyên chất 0.0%
độ cồn. Báo Tiêu Dùng.
https://tieudung.kinhtedothi.vn/thi-truong/ra-mat-san-pham-bia-khong-con-vi-ng
uyen-chat-00-do-con-38728.html
Saigoneer. (2019, June 17). Vietnam Passes Stricter Regulations of Alcohol Ads,
Blanket Ban on Drunk Driving.
https://saigoneer.com/vietnam-news/16740-vietnam-passes-stricter-regulations
-of-alcohol-ads,-blanket-ban-on-drunk-driving
Thanhnien (2022, January 20). Đam mê chất lượng và sáng tạo tại Heineken Việt
Nam.
https://thanhnien.vn/dam-me-chat-luong-va-sang-tao-tai-heineken-viet-nam-18
51422667.htm
Theinvestor.vn. (n.d.). Vietnam beer market worth $12 bln: Heineken. Theinvestor.
https://theinvestor.vn/vietnam-beer-market-worth-12-bln-heineken-d5721.html
Tri, D. (2023, July 10). Vietnam beer market worth $12 bln: Heineken. The investor.
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Tuan, P. H. A., & Thapa, A. (2020). Valuation of Heineken NV: a fundamental analysis
of a Dutch beer company (Master's thesis).
VEGvn. (2022, August 21). Heineken Starverse Party: Chuỗi sự kiện vũ trụ ảo lần đầu
tiên tại Việt Nam. VietNam Event Group - VEG.
https://veg.vn/2022/08/21/heineken-starverse-party-chuoi-su-kien-vu-tru-ao-lan-
dau-tien-tai-viet-nam/
Ví MoMo. (2021). GIỜ VÀNG HEINEKEN: Lắc Xì đón xuân, tân niên bừng sắc. Siêu
Ứng Dụng MoMo.
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V. K. (2020). Heineken Việt Nam chinh phục thị trường qua nền tảng số.
vnexpress.net. VNExpress.
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VnExpress. (2020, August 7). Heineken Việt Nam chinh phục thị trường qua nền tảng
số. Vnexpress.net.
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-4140337.html
IX. APPENDICES
Appendix A - Questions and findings from the survey
A survey was executed in two days (25th - 26th Nov 2023) to determine Vietnamese
perception of Heineken 0.0 and its rivals. Specifically, it consisted of 70 respondents,
equally divided by both genders in three distinct age groups from 18 to 35. Aside
from that, more than 90% of participants admitted that they had tried non-alcoholic
beers to join this survey.
DEMOGRAPHIC
Heineken's Problem Identification
Heineken's Innovation
The consumers’ experience on the quality of other non-alcoholic beer brands
in the Vietnamese market
Appendix B - Online promotions of Heineken 0.0
Appendix C - Physical evidence of three non-alcoholic beers
Heineken 0.0
SAGOTA
Steiger
Appendix D - Supply and Demand in the market