MINISTRY OF EDUCATION AND TRAINING HOA SEN UNIVERSITY MARKETING STRATEGY GROUP REPORT Lecturer: Jorge Martínez Subject code: MK 317DE01 Class: 0300 - 2233 Student perform: Group 4 Ho Chi Minh City, June 2023 MINISTRY OF EDUCATION AND TRAINING HOA SEN UNIVERSITY MARKETING STRATEGY GROUP REPORT Student perform: Đặng Đăng Khang 22011613 100% Lê Thị Ngọc Ánh 22011639 100% Lê Trọng Nghĩa 22003380 100% Nguyễn Hoàng Anh 22003091 90% I INTRODUCTION
Heart of Darkness Vietnam is a craft brewery located in Ho Chi Minh City,
Vietnam. Since its establishment in 2016, the brewery has gained a reputation
for producing high-quality and innovative craft beers that cater to a diverse
range of tastes and preferences. As the craft beer market in Vietnam continues
to grow, Heart of Darkness Vietnam has faced increasing competition from
both local and international players. In order to maintain its position, it is
crucial for the company to have a robust and effective marketing strategy that
can help it to differentiate itself from its competitors and attract and retain
customers. This report aims to analyze the marketing strategy of Heart of
Darkness Vietnam, with a focus on its target market, branding, advertising, and
social media presence. By examining these key areas, the report will provide
insights into the strengths and weaknesses of the company's current marketing
strategy and make recommendations for how it can be improved to achieve its
business objectives. Through this analysis, the report aims to provide Heart of
Darkness Vietnam with a road map for optimizing its marketing efforts,
building its brand, and driving revenue growth in the highly competitive craft beer market in Vietnam. II ACKNOWLEDGMENT
First of all, we would like to express our sincerest thanks to Mr. Jorge
Martínez, who guided us through 15 sessions of the course "Marketing
Strategy". Through useful lessons, we have discovered interesting things in
Marketing. Thank you for your energy and humor that make the class so much more fun.
And finally, thank you to the team for their solidarity and efforts to complete this report. III CONTENTS
CONTENTS ............................................................................................... III
LIST OF FIGURES ....................................................................................VI
LIST OF TABLES .....................................Error! Bookmark not defined.
I. OVERVIEW ..................................................................................... 6
1.1 The Company ........................................................................ 1
1.2. Mission, Vission and Awards ............................................... 3
1.3. The portfolio of the company ............................................... 4
II. EXTERNAL ANALYSIS ............................................................... 5
2.1 Macro-Environment in Vietnam ............................................5
2.2. Micro-Environment ...............................................................7
2.3 Strategic Environment ..........................................................13
2.4. Product Life Cycle & History of the Industry and forecast.15
2.5. The Keys of Success of Heart of Darkness ........................ 16
III. INTERNAL ANALYSIS: THE COMPANY ..............................20
3.1 Value Chain ..........................................................................20
3.2 Sustainable competitive advantages .................................... 23
IV. SWOT ANALYSIS ......................................................................23
4.1. Swot analysis .......................................................................23
4.2. SO, WO, ST, WT Strategy of Heart of Darkness ...............25
V. Segmenting targeting positioning ................................................. 26
5.1. Segmenting Vietnamese Market .........................................26
5.2. Targeting or Selecting our Best Segment of the market.... 27
5.3. Positioning ...........................................................................28
VI. Marketing Mix Strategies ............................................................ 31
6.1. Strategies Heart of Darkness is following now in Vietnam36 IV
REFERENCES ........................................................................................... 37 V LIST OF FIGURES
Image 1 : Heart of Darkness's taproom .......................................................2
Image 2 : Brewery of Heart Of ....................................................................2
Image 3 : John Pemberton is the founder .....................................................3
Image 4 : The achieves of Heart of Darkness .............................................4
Image 5 : BCG Matrix .................................................................................4
Image 6 : PESTEL module ...........................................................................6
Image 7 : Customer review from customer at Tripadvisor ........................10
Image 8 : Strategic environment matrix.....................................................14
Image 9 : Product life cycle ........................................................................15
Image 10 : Vietcetera has some tittles of Heart Of Darkness ....................16
Image 11 : Nice and cozy beer taproom space of Heart Of Darkness .......17
Image 12 : Eye-catching beer bottle (Source: Internet) .............................17
Image 13 : A Space in Have A Sip bar( Internet) ......................................18
Image 14 : Collabs and seasonals products ( Heart of Darkness website) 19
Image 15 : Heart of Darkness's taproom is very crowded (Internet) ........ 19
Image 16 : Value chain modules (Tomorrow Marketers)......................... 20
Image 17 : The brewery of Heart of Darkness ( Source: Vietcetera)........21
Image 18 :Image 7: the collab of Heart of Darkness and East West ( East
West Facebook page) ......................................................................... 22
Image 19 : Sustainable competitive advantage module .............................23
Image 20 : Sources of sustainable competitive advantage ........................ 29 VI I. OVERVIEW 1.1 The Company
Heart of Darkness is a craft beer brewery and taproom based in Ho Chi
Minh City, Vietnam. The company was founded in 2016 by three craft beer
enthusiasts who wanted to create unique and high-quality beers that would
stand out in the crowded craft beer market. Since its inception, Heart of
Darkness has become one of the most well-known craft beer brands in Vietnam,
and has received numerous awards and accolades for its innovative and creative beer styles.
Heart of Darkness places a strong emphasis on quality, using fresh, locally
sourced ingredients and traditional brewing techniques to produce its beers.
The company is also known for its innovative beer styles, which have helped to
differentiate it from competitors in the market. In addition, Heart of Darkness
has built a strong and recognizable brand identity, with creative beer names,
distinctive packaging, and engaging social media presence.
The company operates two taprooms in Ho Chi Minh City, which serve as
community spaces where customers can learn about the brewing process and
interact with the company's staff. Heart of Darkness also has partnerships with
numerous restaurants, bars, and other businesses in Vietnam, helping to expand
its distribution and reach a wider audience. 1
Image 1 : Heart of Darkness's taproom Image 2: Brewery of Heart Of 2
Image 3: John Pemberton is the founder
1.2. Mission, Vission and Awards Mission Statement:
Heart of Darkness' mission is to produce high-quality craft beer using
fresh, locally sourced ingredients and traditional brewing techniques, while
fostering a community of craft beer enthusiasts in Vietnam and beyond. The
company is committed to innovation, sustainability, and customer engagement,
and seeks to differentiate itself from competitors through its unique beer styles
and distinctive brand identity. Vision Statement:
Heart of Darkness' vision is to become the leading craft beer brand in
Vietnam and a recognized player in the international craft beer market. The
company aims to expand its production capacity and geographic reach, while
continuing to innovate and develop new beer styles. Heart of Darkness is
committed to sustainable and ethical business practices, and seeks to create a
positive impact on the communities in which it operates. The company's
taprooms will continue to serve as community spaces where customers can
learn about the brewing process and connect with like-minded individuals. 3 Awards
Image 4 : The achieves of Heart of Darkness
1.3. The portfolio of the company
We will analyze the portfolio of Heart of darkness based on the BCG Matrix Image 5 : BCG Matrix Stars:
Heart of Darkness Craft Nia: This is an exclusive product of Heart of
Darkness, is a key product and has a high growth rate in the craft beer market 4
in Vietnam. With good quality and reliable brand, Heart of Darkness handmade
Nia is considered as a star in Heart of Darkness Vietnam product portfolio. Cash Cow:
Pale Ale, IPA and Pilsner beers: These are products that have been on the
market for a long time and are contributing a large part to Heart of Darkness
Vietnam's revenue. However, their growth rate is not as high as before and may
reach saturation in the future. Question Mark:
Seasonal and Special Beers: These are new products introduced to Heart
of Darkness Vietnam's product portfolio. They have good growth potential in
the craft beer market in Vietnam, but still need time to accurately assess the growth rate and market share. Dogs:
No products in Heart of Darkness Vietnam's catalog can be classified as
"Dog" as the company does not produce products with low market growth or no potential. II. EXTERNAL ANALYSIS
2.1 Macro-Environment in Vietnam 2.1.1 PESTEL ANALYSIS 5 Image 6: PESTEL module
Since we chose to analyze the Heart of Darkness brand, we will conduct
an analysis of the craft beer market in Vietnam via PESTEL to delve into how
external factors impact this market. Political:
The Vietnamese government has been encouraging foreign investment in
the country's economy, which has led to increased competition in the craft beer industry.
The government's regulations and tax policies can have an impact on the
growth and profitability of craft beer companies.
Political instability and corruption can also affect the industry's growth and ability to operate. Economic:
Vietnam's growing middle class and increasing disposable income have
led to a rise in demand for craft beer.
The country's economic growth has led to increased competition in the
industry, with new craft beer companies entering the market.
Fluctuations in the exchange rate and inflation can impact the cost of production and distribution. 6 Sociocultural:
Vietnamese consumers are increasingly interested in Western-style beers
and are willing to pay a premium for craft beer.
The country's drinking culture and social norms may impact the popularity and acceptance of craft beer.
Changing lifestyles and preferences may affect the demand for craft beer in the long-term. Technological:
Advances in brewing technology can improve the quality and efficiency of
production, but can also increase competition in the industry.
The rise of e-commerce and online platforms can provide new distribution
channels for craft beer companies.
The industry may face challenges related to intellectual property and the
protection of proprietary brewing techniques. Environmental:
The environmental impact of brewing can be a concern for craft beer
companies, which may need to take steps to reduce their carbon footprint and use sustainable practices.
Climate change and natural disasters can also impact the supply chain and
production of craft beer ingredients. Legal:
Craft beer companies in Vietnam must comply with government
regulations related to production, distribution, and marketing.
The industry may face legal challenges related to intellectual property,
trademark infringement, and distribution agreements.
Changes in regulations related to alcohol consumption or advertising can also impact the industry. 2.2. Micro-Environment
2.2.1. COMPETITORS BENCHMARKING 7
Table 1 Competitors Benchmarking Heart Of Darkness Pasteur Street Tê Tê Craft Beer Brewing Company Product Craft beer,
bar Craft beer, bar snack Craft beer, bar snack snack Service
Retailer, Distributor Retailer, Distributor Retailer, Distributor Manufacture VSIP Bình Dương Hồ Chí Minh City Hồ Chí Minh City Factory Price
70k to 120k VND 50k VND to 120k 60k VND to 120k (~3-5 USD)
for VND (~2-5 USD) VND (~2-5 USD) for beer. for beer. beer
60k to 280k VND 80k to 250k (~3-12 50k to 230k (~2-14 USD) for USD) for food VND(~2-10 USD) food. for food. Location Vietnam, Vietnam (6 HCM, 1 Vietnam Singapore. HN) .
Benchmarking competitors give a bigger point of view about competitors
information. Overall, the craft beer market seems to be really competitive in
price, location, product,… That is the reason why we should focus on these
information and expand the brand to get high position in the market nowaday. 2.2.2. CUSTOMER ANALYSIS Age:
Heart of Darkness Brewery customers are mostly adult from 20 to 50 year who
like to discover new things such as large variety and unique of craft beer flavor
at Heart of Darkness. Most of the customers are young and have modern 8
lifestyle, after a working day or weekend, they spend times with their friends at
coffee shop, bar or pub so Heart of Darkness is the very good choice. Sex:
Normally men tend to enjoy drinking beer more than women but that does not
mean women does not drink beer. Craft beer is not just a type of beer that make
you drunk, it also a combination of a lot ingredient went through the brewing
process and the result is a unique drink with tons of flavor and give a little bit
excited (depend on how much alcohol you want) when you drink. That is why
not just men but women also like the craft beer and everyone wants to discover
the new flavor that craft beer has. Income level:
Customers of Heart of Darkness mostly have the income between middle and
high income class because they have to spend about 70k to 120k VND (~3-5
USD) for craft beer,and for the pairing food about 60k to 300k VND (2-14
USD) could be higher depending on size. There are some more of special and
seasonal beer product could make change at the price. Customer information:
Via Tripadvisor review from customers, as we can see, most of the customers
are Vietnam’s tourist from the world with differences language and they spend
the first and the last quarter of the year right on Chrismas and New Year
occation, it is the time when they spend time on vacation or travel. The other
quarter also has a number of customer but it just stay at the average. 9
Image 7: Customer review from customer at Tripadvisor
Customers prefer to enjoy their time with their group of friends or couple the
most because it suits their chatting and drinking hobbies. Other part of
customer they choose to go with their family, business or alone. 2.2.3. Porter Forces
2.2.3.1. Impact of the existence of substitutes on prices
Price of Heart of Darkness’s drink and food seem to be a bit higher than
Pasteur Street Brewing Company and Tê Tê Craft Beer and other competitors
in craft beer market. But that is not really a disadvantage because the customer
is willing to pay a little bit more in order to taste the unique flavor and different
type of craft beer. The price is also related to a few more elements such as
where the manufacturer is, services…but Heart of Darkness can keep the 10
competitive price, not so expensive and not so cheap compared with other competitors.
2.2.3.2 Impact on achievable structural profitability of clients' ability to negotiate prices
The impact of customer negotiation power on achievable structural profitability
in Heart of Darkness Brewery would depend on various factors such as the
brewery's pricing strategy, target market, and competition. Here are two possible scenarios:
If customers have strong bargaining power and can negotiate lower prices for
Heart of Darkness Brewery's beers, this could lead to reduced profit margins
for the company. The craft beer market is highly competitive, with many
breweries offering similar products at varying price points. In this scenario, if
customers are able to find comparable or cheaper alternatives elsewhere due to
their negotiation power, then Heart of Darkness Brewery may need to lower its
prices in order to remain competitive.
Price is one of the first factor that we need to focus on, competitors could have
a lot advantage at the price, but that is not the reason for Heart of Darkness to
lower the product price which could lead to dumping and then really bad
consequences happen for both. In stead of that, we should give away discount
or voucher to create the relationship with loyal customers.
2.2.3.3. Impact of suppliers' bargaining power
Supplier play a very important role in Heart of Darkness busines, most of the
ingredients has to be imported to Vietnam in order to make the beer has the
best falvor. All the raw materials like malt, barley, hops, yeast… has to be
imported to Vietnam from Germany and Belgium has a large variety of malt
give differences of taste, barley and hops (flower use for brewing beer) are
mostly from US, Australia, New Zealand and last but not least the seasonal
fruit and herb in Vietnam add more taste to the craft beer. If Heart of Darkness
has the problem with supplier about bargaining the price of supply, we should
not be overeact which cause a big problem that can ruin our business. Instead 11
of that, negotia with the supplier and find the solution that bring benefits for
both (higher price higher quality). This situation rarely happens in long term
business, only in short term business. 2.2.3.4. New entrants Threat
The Craft Beer market and FnB market is not a piece of cake for newbie
to lauch their business. But if they had enough experience to lauch their
business to compete with Heart of Darkness, there might be a few potential threat that we need to notice:
New breweries create unique or innovative products that differentiate them
from Heart of Darkness Brewery's offerings, this could lead to lost market
share and revenue for the company. On the other hand, if Heart of Darkness
Brewery is able to innovate and create new beers with unique flavor profiles or
brewing techniques; it may be able to attract more customers and maintain its
position as a leader in the craft beer market despite increased competition. 2.2.3.5 Impact of Competitors
Competitors can have a significant impact on the achievable structural
profitability of a business like Heart of Darkness Brewery. Here are two ways
in which competition can affect profitability:
Price Competition: Competitors offering similar products at lower prices may
force Heart of Darkness Brewery to reduce its own prices in order to remain
competitive, potentially leading to reduced profit margins.
Innovation and Differentiation: If competitors offer unique or innovative
products that differentiate them from Heart of Darkness Brewery's offerings,
this could lead to lost market share and revenue for the company. On the other
hand, if Heart of Darkness Brewery is able to innovate and create new beers
with unique flavor profiles or brewing techniques, it may be able to attract
more customers and maintain its position as a leader in the craft beer market. 12 2.3 Strategic Environment
2.3.1 Strategic Enviroment matrix
The Boston Consulting Group (BCG) created the BCG Advantage Matrix,
commonly referred to as the Competitive Advantage Matrix, which is a
decades-old but still useful strategic framework. This matrix will be used to
demonstrate the market segments in which the firm Heart of Darkness is
present: fragmented, specialized, stagnant, or volume one.
Theoretically, we are informed that:
Fragmented industries: present limited opportunities to attain a
competitive advantage. On the matrix's vertical axis, there are only a few
methods to distinguish oneself from competitors. Furthermore, the potential
scale or impact of a competitive advantage, as shown on the horizontal axis, is
limited. As a result, generating profits in stagnant industries is highly challenging.
Volume industries: there may be limited opportunities for differentiation,
any differentiation made can have a significant impact on sales. This high
potential impact creates an opportunity to profit from economies of scale. On
the vertical axis of the chart, there are few ways to differentiate from
competitors; however, the potential impact's size on the horizontal axis is substantial.
Fragmented industries: the ability to differentiate is significant, but the
impact of any advantage is limited. On the vertical axis, there are numerous
ways to distinguish oneself from competitors. However, the potential size of
the competitive advantage is modest. There is potential for profit if the
organization can lead in producing differentiated, value-added products and services.
Specialized industries: There is a significant potential for differentiation,
and any competitive advantage would have a considerable impact. Profit
potential is high if the company can rapidly learn and scale up with the
necessary resources. The vertical axis of the matrix provides various ways to
differentiate from competitors, and the potential impact of any advantage, as
depicted on the horizontal axis, is substantial. 13