VIETNAM GENERAL CONFIDERATION OF LABOR TON DUC THANG UNIVERSITY DEPARTMENT OF BUSINESS ADMINISTRATION GRADUATION THESIS INTERNATIONAL MARKETING OF SAIGON BEER TO CAMBODIA Advisor: MBA. Nguyen Minh Triet Student: Do Hong Nga Student ID: 70900144 Class: 09070101 Intake: 13 HO CHI MINH CITY, 2013 ACKNOWLEDGEMENT This graduation thesis has been developed from my internship report that had been done when I had an internship position at SA BE CO Trading Company Limited (SATRACO). The aim of this graduation thesis is to study the practical aspect of the course and implementation of the theory in the real field with the purpose of fulfilling the requirements of the course of Bachelor of International Business Administration. During the three-month internship, I have tried my best to be familiar to the practical aspect and uses of theoretical knowledge and clarifying the career goals, so I have successfully completed thesis as the summary and the conclusion that have drawn from the internship experience.
I would like to express my sincere gratitude to our internship coordinators who have given their valuable time and given me chance to learn useful things despite having their busy schedule and Mr. Nguyen Minh Triet for his great guidelines for my thesis. I am also thankful to Ms. Nguyen Thi Thu Ha (Chief of Export Section) and other staff member for their co- operative support, and also presenting with an opportunity for me to have a practical experience in this organization.
Finally, because of the shortage of time, there are still some limitations. Therefore, I am grateful to receive any guidance and comments from all lecturers, students as well as readers in order to complete this thesis successfully. Ho Chi Minh City, July 2013 DECLARATION I hereby declare that this is my own research under the scientific guidance of MBA. Nguyen Minh Triet.
The contents of the study, the results of this topic are truthful and not published in any form before. The data in the tables for analysis, comment, evaluation are collected by the author from various sources that have been stated clearly in the references. In addition, the thesis also uses a number of comments, evaluation as well as the data from other authors, other agencies that all have been cited and annotated source in references. If I am detected in making any fraud, I will bear full responsibility for the content of my thesis.
Ton Duc Thang University is not involved in the violation of copyright that I have caused in the thesis (if any). Ho Chi Minh City, 12th July 2013 Author’s signature DO HONG NGA COMPANY’S REMARKS During the internship time, Miss Do Hong Nga had obeyed strictly the company regulations and actively participated in studying, researching company’s business and marketing activities in order to complete successfully Graduation Thesis “International Marketing of SAIGON beer to Cambodia”. Finally, we highly appreciate her performance in SA BE CO Trading Company Limited and hope that she will get a good result in her graduation and find a good job in the near future. Ho Chi Minh City, 11th July 2013 ADVISOR’S REMARKS.
ABSTRACT This graduation thesis is to make a deep research about international marketing activities, namely product, price, place and promotion of SAIGON beer to Cambodia. The author uses materials from academic books, journals, Internet for theoretical part. In addition, the author uses internal statistics data from company to draw a general view about marketing mix of SAIGON beer in Cambodia, based on the description to analyze international marketing activities. This graduation thesis also gets some results.
Firstly, this research has drawn an overview about Cambodian macro environment in general and Cambodian beer market in particular to analyze the impacts of them on SAIGON beer. Then the author presents international marketing of SAIGON beer in Cambodia on four elements including product, price, place and promotion. Finally, the solutions will be brought out to improve international marketing activities in order to foster the sales and total output of SAIGON beer to Cambodia.1 Rationale of research .2 Research situation in Vietnam and overseas .3 Purposes of research .4 Object and scope of research. 5 CHAPTER 2: LITERATURE REVIEW .1 Definition of international marketing .2 International marketing environment .1 Demographic-Economic environment .2 Political-Legal environment .5 Wholly owned subsidiary .5 Marketing mix for international market.
17 CHAPTER 3: COMPANY INTRODUCTION.1 History and development .2 Missions and functions .2 Missions and functions of each department.6 Business outcomes from 2010 to 2012 .7 Introduction of Export section of SAIGON beer. 32 CHAPTER 4: DESCRIPTION AND ANALYSIS OF INTERNATIONAL MARKETING OF SAIGON BEER TO CAMBODIA .1 Analysis of global beer market .1 Overview of global beer market .2 Demand and supply in global beer market .2 SWOT analysis of SAIGON beer .3 International marketing of SAIGON beer to Cambodia .3 Political-Legal environment .2 Beer industry in Cambodia .2 Main breweries and market share .3 Evaluate Cambodian marketing environment .1 Prospects and development .3 Suggestions for further development. LIST OF ABBREVIATION HABECO Hanoi Alcohol Beer and Beverage Joint Stock Company SABECO Saigon Beer-Alcohol-Beverage Corporation SATRACO SA BE CO Trading Company Limited VBL Vietnam Brewery Limited LIST OF TABLES Table 2.1 Five global product and communications strategies .1 Some typical products of SAIGON beer .2 Income Statement from 2010 to 2012 .1 Global beer consumption by region in 2011 .2 Global beer production by region in 2011.4 Population and age distribution .5 Some regulations of Cambodia on beer industry .6 Beer consumption by ASEAN country in 2011 .7 Main breweries in Cambodia .8 Estimation for 333 Export price to final consumers .9 Coverage of distribution channel .1 Estimated sales and total output of SAIGON beer in 2013.2 Income distribution by areas in Cambodia .3 Tourism annual statistics in Cambodia .5 Estimated outlets and population in Cambodia by provinces .6 Estimated cost for retail stores on highways .7 Estimated cost for advertising .8 Estimated cost for TV talk show .9 Estimated sales and total output of SAIGON beer in Cambodia. 84 LIST OF CHARTS Chart 2.1 Porter’s Five Forces model .2 Whole-channel concept for international marketing .1 Organizational chart of SATRACO .2 Labor ratio divided by age .3 Labor ratio divided by education .4 Sales of SAIGON beer exported overseas (2006-2012).5 Total output of SAIGON beer exported overseas (2006-2012) .6 International markets of SAIGON beer in 2012 .1 Global beer consumption by region (%) in 2011 .2 Global beer production by region (%) in 2011 .3 GDP by sector in 2012 .4 Cambodia population pyramid-2012 .5 Cambodian beer sales-Historical data & Forecast .6 Volume of each beer type .7 Volume of Mainstream beer .8 Market share of mainstream beer in 2012 .9 Market share by main import brands in 2007 .10 SAIGON beer exported to Cambodia by product type .11 Retail prices of some beer brands in Cambodian market .1 Retail prices of brands in Premium and Mainstream beer segment76 1 CHAPTER 1: INTRODUCTION 1.1 Rationale of research In the period of international economic integration, export becomes extremely important in commercial activities of any other country in the world.
Through export activities, the country is exploiting its advantages from which to build foreign exchange earner, economic restructuring, and especially the creation of jobs for workers. Cambodia market is very close to Vietnam, bordering 9 provinces, having 9 international gates. The distance from Ho Chi Minh City to Phnom Penh is only 230 km. Thus, Vietnam and Cambodia have favorable conditions to promote cooperation in various industries [19].
Recently, two countries have created a favorable political-legal environment for economic cooperations. In particular, Vietnam gives the agricultural products originated in Cambodia preferential treatment in 0% import tax rate. Trade transactions between Vietnam and Cambodia are expected to reach the growth rate of 27% per year. Vietnam is one of major export markets of Cambodia, accounting 4.15% of Cambodia's total export value and also a huge import market of Cambodia (just behind Thailand) with more than 20% of the total import value.
Vietnam exports clothes, cables, plastic household appliances, noodles and electrical devices to Cambodia [19]. Although beer – alcohol – beverage is not a major export industry in general, the beer industry in particular has contributed significantly to the overall export objectives of Vietnam. SAIGON beer has been exported to foreign markets since 1992, and in the period 2009-2012, exporting beer products has experienced a growth in turnover and output. In Annual Meeting of Shareholders 2013, Saigon Beer – Alcohol – Beverage Joint Stock Corporation had pointed out 6 important missions, in which one of the 2 missions is internationalization brand name “SAIGON beer” and Cambodia is the major market of SAIGON beer in Asia.
Exporting SAIGON beer to Cambodia will bring the following benefits: Firstly, exporting SAIGON beer to Cambodia absolutely increases the revenue of the company through exploiting new market segments. Specifically, we will expand our market share by approaching customers in the segment of Vietnamese living in Cambodia, local people who prefer to enjoy the new kind of imported beer and tourists coming to Cambodia. Secondly, bringing our beer oversea will introduce the brand name SAIGON beer to Cambodian and step by step make them to be more familiar with our beer products. Finally, exporting beer to Cambodia will strengthen the brand name SAIGON beer in Vietnam and continue to assert that SAIGON beer is still one of the three major brands in Vietnam beer market with Hanoi Beer – Alcohol – Beverage Corporation and Vietnam Brewery Limited.
Be aware of the role and the importance of international marketing activities in Cambodia, I have chosen "International marketing of SAIGON beer to Cambodia" as the topic of my graduation thesis. Research situation in Vietnam and overseas - In oversea: In present, there is no research about “International marketing of SAIGON beer to Cambodia” - In Vietnam: + The researcher had written an internship report about topic “International marketing at SA BE CO Trading Company Limited”; however, this research just analyzed international marketing of SAIGON Beer in all exported market generally and did not focus particularly on Cambodian market. + There is only one small assignment of a student group in National University in 2009, namely Tran Phuong Yen Nhi, Nguyen Thi Vinh Phuong, Truong Lap Phu, 3 Tran Đinh Nhu Truc, Le Thi Thanh Nga. They wrote topic about “Business opportunities for SAIGON beer in Laos and Cambodia”.
However, this essay is only 21 pages for two markets and solutions are still simple suggestions without cost estimation [3]. In conclusion, there is no material making a deep research about this problem; therefore, the research “International marketing of SAIGON beer to Cambodia” is still a new topic. Purposes of research The purposes of my graduation thesis are: Describe and analyze international marketing of SAIGON beer to Cambodia. Evaluate marketing mix of SAIGON Beer in Cambodia including four elements, namely product, price place and promotion in order to find out some strengths and weaknesses.
Based on weaknesses, suggest some solutions to improve marketing mix strategy of SAIGON beer in Cambodia. Object and scope of research Object of the thesis is international marketing of SAIGON beer to Cambodia including product, price, place and promotion. Scope of the thesis is international marketing activities of SAIGON beer to Cambodia from 2010 to 2013. Research methodology Research approach The first step of research methodology is to choose a research approach.
In general, there are two research approaches, deductive and inductive. In this thesis, the inductive approach was applied. The inductive approach indicates that conclusions are drawn based on the data that are collected and analyzed. Here, the researcher base on the number and statistics in company to describe and evaluate the situation of marketing mix of SAIGON Beer in Cambodia.
After that, solutions are presented based on weaknesses. In other words, the inductive 4 approach is moving from specific observations to broader generalizations. Sometimes it is named the “bottom up” approach [9, page 31].