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Bài tập lớn - Quản trị kinh doanh| Đại học Kinh Tế Quốc Dân
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Môn: Business Administration (EBBA12)
Trường: Đại học Kinh Tế Quốc Dân
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ĐẠI HỌC KINH TẾ QUỐC DÂN
KHOA NGOẠI NGỮ KINH TẾ
MÔN : QUẢN TRỊ KINH DOANH – E
Bản word bài thuyết trình – NHÓM 1
Chủ đề : STRONGBOW – HEINEKEN
Giảng viên hướng dẫn : Đỗ Ngọc Điệp Họ và tên Mã sinh viên Nguyễn Tiểu Yến Nhi 11224948 Nguyễn Thu Lệ 11223303 Bế Quốc Toản 11226283 Nguyễn Khánh Ly 11223978 I. Introduction - Name: HEINEKEN - Founder: H. P. Bulmer
- History of the establishment:
Strongbow was launched in the United Kingdom by H. P. Bulmer in 1960.
Bulmer named the cider after “one of England’s greatest knights” Richard de
Clare, whose nickname "Strongbow" was believed to be derived from his heavy
reliance on archers during his campaigns in Ireland. However, this theory is
unlikely to be true because de Clare's father, Gilbert de Clare, was originally
known as “Strongbow”, which suggests that Richard's nickname was actually
inherited from his father. It was initially marketed as "the strong cider for men".
By 1970, it was the second-highest-selling cider in the world after its Bulmer's
stablemate Woodpecker. By 2001, Strongbow was among the top ten drinks by
sales in pubs and bars in England and Wales.
In 2003, Bulmers was purchased by Scottish & Newcastle, who in turn were
taken over by Heineken in 2008. In January 2011, Heineken announced their
intention to take the Strongbow brand global. Heineken acquired the rights to
Strongbow in Australia from Asahi in 2020.
- Place Heineken operates: Vietnam
- Time of period: 2015 - current
- Product/products line (introduce): Strongbow ciders - Cider, also spelled cyder, is a
fermented beverage made from juice or fruit (most commonly from apples). That's
why some places like the US and Canada also call cider hard cider or alcoholic cider
because it contains a certain amount of alcohol. This is a very popular drink in
countries in Europe and Oceania, especially when used during Thanksgiving and Halloween. II.
Success of the Strongbow of Heineken 1. SWOT Analysis 1.1. Strengths
- Strong Brand Reputation: well-established and recognized brand in the alcoholic
beverage industry, known for its cider products.
- Wide Product Range: offers a variety of cider flavors and options, catering to different consumer preferences.
- Global Presence: strong global presence, allowing it to reach a wide customer base in different markets.
- Established Distribution Channels: The brand has developed efficient distribution
networks, ensuring its products are readily available to consumers. 1.2. Weaknesses
- Dependence on Seasonality: The consumption of ciders, including Strongbow, is often
associated with specific seasons or occasions, which may limit sales during certain times of the year.
- Intense Competition: The cider market is highly competitive, with several other
brands vying for market share. This can make it challenging for Strongbow to stand
out and maintain its market position. 1.3. Opportunities
- Increasing Consumer Demand for Alternative Beverages: With the growing trend of
health-conscious consumers seeking alternatives to traditional alcoholic beverages,
there is an opportunity for Strongbow to capitalize on the demand for cider as a
refreshing and lower-alcohol option.
- Innovative Product Development: Strongbow can explore new flavors, ingredients,
and packaging options to attract new customers and meet evolving consumer preferences.
- Expanding into New Markets: Strongbow can consider expanding its reach into
emerging markets where the demand for cider is growing, such as Asia and Latin America. 1.4. Threats
- Changing Consumer Preferences: Consumer tastes and preferences can change over
time, challenging Strongbow to continuously adapt and innovate to meet evolving demands.
- Regulatory Challenges: Alcohol regulations and policies can vary across different
markets, creating potential hurdles for Strongbow's international expansion.
- Economic Factors: Economic downturns or fluctuations in the economy can impact
consumer spending and potentially affect the sales of discretionary items like alcoholic beverages. 2. Marketing mix ( 4Ps) 2.1. Product 2.1.1.
Strategy for supplementing and modifying product lines
- Currently, Strongbow has 6 flavors corresponding to 6 types:
Apple flavor (Strongbow Gold Apple)
Honey flavor (Strongbow Honey)
Red strawberry flavor (Strongbow Red Berries)
Elders flavor (Strongbow Elderflowers)
Grape flavor (Strongbow Dark Fruit)
The recently launched flavor is Strongbow Chilly Peach
- Strongbow is constantly creating and innovating new flavors for its products such as
Dark Fruit and Chilly Peach to give customers more choices. At the same time, adding
additional flavors will create different eye-catching colors that attract and stimulate
customers to search and use more of the product. 2.1.2. Packaging Products - Label:
This is the new unified brand logo, combining the iconic apple with cider,
presenting a world of natural elements set in the golden hour sun. This creates a
fresh yet natural look, transforming the brand image into a progressive presence
with a clear message. (chèn ảnh để t chỉ vô, đỡ cần viết câu đầu vào) - Packaging:
Strongbow has 2 types: glass bottles and aluminum cans. In terms of capacity,
both bottles and cans are sold at 330ml. On its packaging, there is enough
information about the ingredients,.... nutritional value, alcohol content, place of
production, expiration date, and some other necessary information.
The product's label is simply designed, with the main color for each different
flavor (orange for Strongbow Honey, red for Strongbow Red Strawberry, light
blue for elderflower Strongbow,...). The product brand is printed on the label
surface to help customers easily identify the Strongbow Cider brand. 2.1.3.
The quality and characteristics of Strongbow - Quality:
Fresh ingredients are selected from famous apple orchards with modern production
processes, providing fermented fruit juice products. The product contains many
minerals and vitamins, especially does not contain preservatives to ensure a unique
flavor, bringing a new experience to users.
- Product characteristics:
Strongbow's sugar content is lower than other fruit-fermented products. With an
alcohol content of only about 4.5% (alcohol: 4.5%), Strongbow is an easy-to-drink
product. Strongbow's average calorie content is about 100 kcal/bottle, so it will not
harm your health if used in the right dosage.
Users should only consume 1 drink per day for women and 2 drinks for men.
Because Strongbow contains alcohol, your health will be more or less affected if you drink too much. 2.2. Price 2.2.1.
Factors affecting pricing strategy - External factors
Market and needs: customers' needs and finances are not usually at a certain
level, they can find an alternative product to meet their current needs and finances.
Products, costs, and prices of competitors: currently Beck's Ice beer is a direct
competitor to Strongbow in the Vietnamese market, although the quality
between Beck's Ice and Strongbow is equal, Beck's Ice also has product
promotion campaigns that are not inferior to Strongbow when sponsoring music videos, rap contests,... - Internal factors
Raw materials for production: Materials for Strongbow come from the two
largest apple orchards owned by the global Heineken group in Belgium and England.
Production process: fresh apples are brought to the factory to be washed and
pureed. This fermentation takes place within 2 weeks and the fermentation
process is at a low temperature of only about 4 to 15٥C.
Transportation and storage costs
Marketing costs on media channels and social networks 2.2.2. Product pricing
- Currently, Strongbow's strongest competitors in the market are Saigon Special beer
products, Budweiser,... with price differences ranging from 3,000 - 4,000 VND.
compared to its competitor - Magners with over 40.000 VND for a bottle. With the
strengths of affordable cost and importing from Europe, high quality and attractive
packaging, Strongbow attracts young people to try it and lead the cinder market in
Vietnam. Such pricing higher than or close to rival products contributes to affirming
Strongbow's brand strength and quality. The relative price difference helps customers
not be too worried when choosing a product. This method has high flexibility and
many advantages. Strongbow can also use price as a tool to block new competitors
from entering the beer market. Brand Capacity Price Saigon Special 330ml 13.500 - 14.000 Beck’s Ice 12.900 - 13.500 Budweiser (bottle) 17.500 - 18.000 Budweiser (can) Hanoi Beer 11.000 - 12.000 Magners Cider 48.000 - 50.000 Strongbow (bottle) 17.900 Strongbow (can) 18.500 - Pricing strategies :
For sales staff from 18th December 2019 - 18th February 2019, Heineken has a
program for retailers when buying 4 packs of 6 Strongbow 4 flavors of your choice
in the table will receive 1 pack of 6 Strongbow mixed flavors
From 1st October 2017 to 15 January 2018, Heineken has a "2017 - 2018 Purchase
Cooperation Program" for companies and businesses that buy products as gifts for
employees or as promotional gifts for customers when purchasing products. When
purchasing 5 boxes of Strongbow 24 bottles of 330 ml, you will receive a free box
of Strongbow 24 bottles of 330 ml.
At the same time, a differentiated pricing strategy is also applied by the company.
At sales locations such as retail stores or convenience stores, Strongbow has prices
ranging from 17,000 VND to 19,000 VND. But at eating areas such as restaurants,
bars, pubs,... Strongbow costs from 22,000 VND to 55,000 VND and can be
higher. Customers at dining locations have a higher demand for fermented
beverages because they need drinks to make meals more delicious, feel refreshing,
and make parties more lively. So they are willing to spend more money buying
Strongbow directly at dining locations. At the same time, these locations also have
to bear different types of costs such as site fees, and labor,... so it is reasonable that
Strongbow's prices at these locations are higher than normal sales locations. 2.3. Place 2.3.1. Distribution system
- Generally, Heineken’s distribution system consists of two major channels: one-tier and two-tier. 2.3.1.1. One-tier channel
(distribute directly to retailers) Strongbow products are distributed to large
supermarket chains such as Lotte Mart, BigC, Coopmart, Aeon,...; Convenience
stores such as Family Mart, Circle K, Ministop, B's Mart,....
Currently, modern retail channels account for 10% of Heineken's total
Strongbow product revenue. With this structure Heniken can easily distribute
their products to customers living in big cities and towns. 2.3.1.2. Two-tier channel - Wholesalers system:
Strongbow is distributed nationwide through their agents and branch offices of
the Heineken company. Currently, the Heineken company has 10 offices
stretching from North to South.
The company also has an extensive distribution network that services retailers
and wholesalers to consumers through liquor stores, bars, clubs, restaurants and
bars. hotel. Heineken is willing to pay a commission in order to maintain its
distribution system, especially agents, maintain its position and prevent
intrusion into the currently occupied market segment. - E-commercial channel:
Strongbow has also been distributed by the company on platforms such as
Shopee, Tiki, Lazada, ... contributing to reducing transportation costs in
distributing goods to localities, sale point.
Furthermore, this method helped Heineken to reach potential customers living
far from cities and towns regardless of long distance. 2.3.2.
Heineken’s incentives for retailers
- Sales commission during promotion period: In addition to the fixed commission rate,
if the agent sells the number of registrations during the promotional period, they will
receive a higher commission rate than the normal rate. - Extra distribution:
During the promotion period, the company will give away a few more boxes of
goods to wholesalers or retailers who buy a certain quantity of goods or actively introduce the products.
This event of Heineken Vietnam Company encourages intermediaries to display
existing products, actively sell products, calculate commissions based on sales
and receive good promotions from manufacturers. 2.4. Promotion 2.4.1. Target customer
- General target customers: Strongbow's target customers are those over 18 years old.
Strongbow's marketing strategy mainly targets Young Millennials and Gen Z
generations whose age varies from 18 to 35. Currently, they contribute a lot in the
Vietnamese consumer market and the alcohol market in general.
- Potential customers in Vietnam are young women who are office workers. This type
of customer has a higher income and can purchase Strongbow’s products. Strongbow
has a fruity flavor, light alcohol content, and is easy to drink, so women are also a
target group that the brand can exploit. Office work may cause more stress, which
makes them look for alcoholic beverages as a way out 2.4.2. Promotion goal
- The strategies also contribute to increasing brand awareness among the above target
groups, increasing interaction rates on media and social networking sites, increasing
conversion rates, and increasing brand revenue. 2.4.3.
Promotion strategies of Strongbow 2.4.3.1.
The “chill” strategy - “Chill” MVs:
In 2019, Strongbow sponsored Den Vau's MV “Bai nay chill phet”.
In terms of artist selection, Den Vau can be considered one of the most popular
influencers among the youth and has most credit from audiences while remaining
without personal scandal. Moreover, rap songs were going mainstream and became phenomenal.
In terms of the message, this MV itself highly concentrates on young female
workers in Vietnam since its lyrics actively reflect their circumstances.
To specify: At the beginning of the song, the image of a girl struggling in life and
trying to escape from it appears to present a typical office worker. In the song,
many problems and stress from work, such as the boss, deadlines, salary, etc
have been revealed vividly, which elicited genuine empathy from the audiences.
The solution given by the author is to think differently and optimistically by
focusing on the positive sides of lives and appreciating every experience we
have. In the end, that the images of Strongbow bottles are presented in a very
sophisticated manner where the characters were gathering and chilling in a
peaceful scene made a strong impression.
Additionally, the song is always associated with the word "Chill" because of the
soft, relaxing melody, helping young people escape the pressures of study, work
and life. This is similar to the characteristics of Cider products including
Strongbow with an easy-to-drink fruit flavor and a lighter alcohol concentration
than beer, bringing relaxation and excitement at the party. Grasping this factor,
Strongbow quickly captured consumers' emotions by applying it in the right place.
In 2020, the Strongbow brand continued to sponsor the band Chillies, singer Suni
Ha Linh and Rhymastic to release the MV “Cu chill thoi” . Music marketing is
not a new form for brands, but this MV is a combination of gentle Indie music,
popular pop and passionate underground that clearly shows the characteristics of
Strongbow products and brand to the public. - “Chill” events:
In the summer of 2019, following Den Vau's promotional music video “ Bai nay
chill phet”, Strongbow Cider continued to collaborate with the artist to bring a
"chill" experience to users through the Chill- music tour. acoustic in Can Tho,
Nha Trang, Da Nang, Hanoi and City. Ho Chi Minh. In particular, young people
who want to participate in the event must "hunt for tickets" from Strongbow
during promotions. After such offline music events, recognition and awareness
of the Strongbow brand increased significantly.
In 2020, following the music video “Cu chill thoi”, Strongbow launched a
campaign with the same name to each target customer on mobile devices with
activities that encourage them to interact with the brand. There are two reasons
for this decision. First of all, smartphones are indispensable devices for young
people today, especially during the pandemic when they are online more.
Second, online channels are the most suitable approach because the complicated
developments of the COVID-19 epidemic also make it difficult to conduct
outdoor promotional activities.
After the pandemic, Strongbow came back with many outdoor music events
which customers can participate in by purchasing Strongbow products. By
doing this, the company not only hopes to increase the revenue of the
Strongbow product line but also raise the brand’s awareness and recognition. 2.4.3.2. Customer feedback
- Strongbow also uses the form of filling out surveys for customers who have used
Strongbow products. In this way, customers will answer questions about their attitudes
and satisfaction with the product.
- In addition, on social platforms customers can receive attractive discount codes when
shopping online by answering simple questions in the survey. This form of Marketing
helps Strongbow receive immediate feedback from customers, to make timely changes
and satisfy customers, thereby creating a good image for the business. 2.4.3.3.
Public Relations on Social media -
On the Social Media platform, Strongbow chooses to post articles with content that
has a strong impact on the "chill" spirit, encouraging young people to maintain
positive energy when using fermented apple drink. Currently, StrongBow's official
Fan Page with more than 2.1 million followers attracts a large amount of interaction and feedback from customers. -
In addition, Strongbow also cooperates with youth entertainment information pages,
including Kenh14, VietNamNet newspaper, Hong Hot Showbiz... to promote articles
about music videos to promote StrongBow's image. III.
Solutions to perfect Heineken's Strongbow marketing mix III.1. About product
- Nowadays, customers often want to own an exclusive and unique product.
Strongbow’s brand should create limited-editions to arouse curiosity, attract more
people, and increase revenue. Moreover, many people tend to try all flavors the first
time, to find the most appropriate flavor for them. The company should consider
releasing a block of six bottles full of flavors.
III.2. About place
- In fact, Strongbow is often sold in malls, shopping centers, supermarkets, clubs,
bars,...in big cities. Strongbow’s brand should consider distributing products widely in
retail stores, agents, and grocery stores; so that more customers can approach it easily.
Besides, the brand should focus more on e-commerce platforms such as Shopee,
Lazada, Tiki, Sendo,... because of the great demand for shopping online nowadays. III.3. About promotion
- Advertisement: The brand can rent and use images of celebrities, KOLs,... who have
influence in social media, in order to attract people using Strongbow or simply help
them know about products, increase brand awareness through Facebook, Instagram, Youtube,...
- Digital communication: The admin of the website, fanpage should always interact
and be active with customers, and upload information quickly. Many brands often
reply, react to comments of customers in a humorous way, and use funny content. It is
also a góod way to attract people to “follow and like”, especially since almost all of
our customers are young people who usually use social networks.
- O2O( Online to Offline): The company can cooperate with E-wallets like Shopee
Pay, ZaloPay, Momo,... to celebrate the campaign, earn points- exchange gifts. For
example, when you make a payment via E-wallet, you can receive points. Enough
points can be changed to Strongbow. IV. Conclusion
Unique and precise are the two most appropriate phrases to describe Strongbow's
marketing strategy. Strongbow has created its own path in building brand positioning
and "educating" the public about the product. With the successes it has achieved,
Strongbow will certainly continue to grow and become a formidable competitor in the
Vietnamese beer and wine market.