INTERNATIONAL MARKETING

HABECO

Executive summary

Viet Nam has increasingly proved its position in international trade activities as well as its attractiveness in
attracting foreign investment. Contributing to that success, there is no small feat of big businesses in the
fields. Hanoi Beer Alcohol and Beverage Joint Stock Corp (HABECO) is an example of the beverage
market in Vietnam.

Habeco is a beverage company headquartered in Hanoi, Vietnam. As being on of the leading enterprises in
this market, especially in the beer market, Habeco has continuously developed, expanded its business
activities throughout Vietnam and exported to many markets around the world.

The competition in the beer industry is becoming increasingly fierce when there are international beer
brands with great potential and strong investment willingness. In 2019, HABECO announces a new brand
identity with a different positioning, preserving cultural and traditional values, and demonstrating and
absorbing more modern trends. This new repositioning campaign marks a comprehensive transformation of
Habeco in the new development strategy, bringing a completely new image: modern, not confined by
traditional values. In some way we can recognize the attractiveness of markets in neighboring country like
Cambodia for Habeco and see an opportunity to further expand its beer market outside of Vietnam, we
decided to penetrate into Cambodia market with two new products which are Hanoi Bold and Hanoi Light.

Hanoi Bold and Hanoi Light are two new kind of beers that Habeco is preparing to export to this potential
market. We can compete effectively with many other beers firms because our products offer a unique
combination of manufacturing technology and product ingredients with competitive prices. We have the
advantage of being famous for leading the market in the North of Vietnam; cooperation with other famous
beer companies; Some or our beer products have been exported to many countries and more importantly,
the Cambodian market is not much different from the Vietnamese market. The main exporting objective is
to expand the market, increase customer awareness and achieve a 20% market share of Cambodia in the
first year.

Introduction

Forerunner of the Hanoi Beer - Alcohol - Beverage Joint Stock Corporation, Hommel Brewery, built by the
French in 1890, is the beginning of a small flow along with the ups and downs of Thang Long - Hanoi. On
August 15, 1958, in the atmosphere of the whole country boiling to celebrate the 13th anniversary of the
successful August Revolution, giving birth to the Democratic Republic of Vietnam, the four years when the
Capital was completely liberated; The first Vietnamese beer bottle of Truc Bach brand was born in the great
emotion and joy of the factory's employees.

A product affirms the ownership of workers, serving the essential needs of society in the stage of recovery
and development. From this milestone, the factory entered a new era - a period of brand recognition of our
country's industry in general and the beverage industry in particular, which is the pride of Hanoi and the
whole country. From then on, August 15 every year was chosen as the traditional day of Hanoi Beer.

On May 6, 2003, the Ministry of Industry (now known as the Ministry of Industry and Trade) issued
Decision No. 75/2003/QD-BCN establishing the Hanoi Beer - Alcohol - Beverage Corporation (HABECO
for short). From June 16, 2008, the Corporation officially transformed its organizational model from a State
Corporation to a Joint Stock Corporation. This is an important turning point for Hanoi Beer to assert its
position in the integration stage.

Over nearly 130 years of history with more than half a century of recovery and development, Habeco has
now become one of the leading enterprises in Vietnam's Beverage industry.

The famous product lines that make up Habeco brand such as Hanoi Draft Beer, Hanoi Draft Beer, Truc
Bach Beer, Hanoi Beer Premium... have received the trust of consumers for both quality and style,
conquering connoisseurs of beer at home and abroad.

With 100-year-old technological know-how, along with modern equipment systems, a team of skilled,
qualified and enthusiastic employees and employees, Habeco's products have received the admiration of
millions. domestic and international consumers. Hanoi Beer brand today is built, crystallized from many
generations, is the belief of consumers, the pride of Vietnamese brands.

With the strong rise of a giant tree in Vietnam's beverage industry, Habeco's products are widely distributed
to not only in the domestic market but also in foreign markets such as Taiwan and Korea. National, British,
German, American, Australian, and many other countries around the world.

Development history of Habeco beer

- In 1890: Hommel Beer factory - Forerunner of Habeco Corporation was established with 30
employees, with the purpose of serving the French Expeditionary Force.

- In 1957: French troops dismantled and destroyed machines and equipment, burned important
technical documents. By 1957, following the Government's economic recovery policy, Hommel Brewery
was restored and renamed to Hanoi Beer Factory.

- In 1958: On August 15, 1958, the first beer bottle of Vietnam branded Truc Bach was born, marking
a big turning point in the beer production industry in Vietnam.

- In 1960: Friendship Beer and Draft Beer were born.

- In 1991: Beer cans were born.

- In 1993: Hanoi Brewery changed its operating model, changed its name to Hanoi Beer Company
and accelerated the process of renewing equipment to increase its capacity to 50 million liters / year.

- In 2003: Establishment of Hanoi Beer - Alcohol - NGK Corporation under Decision No.
75/2003/QD - BCN of May 6, 2003.

- In 2006: Starting construction of the Hanoi Beer Factory in Vinh Phuc.

- In 2007: Signed a strategic cooperation agreement with Carlsberg Beer Group.

- In 2008: Equitization, transforming the operating model into a joint stock company. 50 years of
construction and development.

- In 2010: Completing the investment project to build a brewery in Me Linh, Hanoi with the most
modern synchronized equipment system in Southeast Asia, bringing the Corporation to a capacity of nearly
400 million liters / year. Habeco became one of the two largest breweries in Vietnam and restored Truc
Bach beer.
- In 2012: Hanoi beer production reached 456 million liters.

- In 2013: Invested in a line of purified water extraction. 55-year milestone of building and
developing Habeco.

- In 2014: Commencement of the project of 60,000 cans/hour extraction line in Me Linh.

- In 2015: Newly constructing the Beer - Alcohol - NGK Hanoi Technical Institute at Hanoi - Me
Linh Beer Factory. Invest in building Pilot Plant system for researching new products.

- In 2017: Establishment of Hanoi Beer Factory - Hoang Hoa Tham.

- In 2018: 60-year milestone of restoration, construction and development. Introducing a new identity
of Truc Bach beer.

- In 2019: May 5, 2018, Habeco officially launched a new brand identity with the slogan "Resilient
Vietnam".

Main business sectors: Producing beer and brewing malt (brewing various kinds of beer); Distilling,
distilling and mixing spirits (producing spirits and spirits); Producing non-alcoholic beverages, mineral
water...

Research methodology

Secondary data sources such as vi.wikipedia.org; habeco.com.vn; www.cafef.vn; thongtincongty.com;

Brands Vietnam and other newspapers and internet sources.

Situational Analysis

Company analysis

Habeco's operating type is Joint Stock Company. The major shareholders of the company are: Ministry of
Industry and Trade, Carlsberg Breweries A/S, Mr. Nguyen Hai Ho, Mr. Tran Dinh Thanh, Mr. Vuong Toan,
Mr. Ngo Que Lam and Ms. Do Phuong Thao.

Associated organizations include Habeco Packaging Joint Stock Company, Harec Investment and Trade
Joint Stock Company, Habeco Transportation Joint Stock Company, Hanoi - Kim Bai Beer Joint Stock
Company, Sanmiguel Yamamura Hai Phong Glass Co., Ltd., Habeco Investment and Development JSC.

The company has main divisions such as the Board of Directors, Board of Directors/Chief Accountant,
Supervisory Board and other positions such as Head of Investment, Information Disclosure, Authorized
Information Disclosure and with over 5000 employees.

The company's customers include dealers, retailers and consumers. In particular, dealers are regular
customers, mainly of the company, they buy in bulk.

The company’s operating revenues for the past three years:

2016 2017 2018

 1. Revenues of goods 10,031,542,131,962 9,841,691,994,934 9,177,750,422,618
and services

2. Net revenues of goods 9,995,967,159,836 9,801,759,541,796 9,100,266,921,478

and services

3. Capital of goods sold 7,212,213,439,758 7,234,211,528,020 6,852,693,937,959

4. Net profit from 1,185,236,948,945 902,291,085,859 611,305,342,787

business activities

5. Profit after tax 796,697,208,603 658,050,829,837 484,332,728,484

corporate income

One of the R&D activities that the company has been involved in is a product research and development
project at Hanoi Beer Factory. This is the first experimental brewing system in Vietnam that Habeco
decided to invest. The commissioning of the project will provide facilities for research, technical and
technological development, testing and analysis of beer, wine and soft drinks; research and develop new
products; researching, experimenting and applying techniques, technological processes and new advances
before launching production scale in order to improve product quality and diversify products of Habeco.
All equipment for researching and developing products is equipped with modern and synchronous
equipment, designed according to international standards, the degree of automation to ensure that test
products have similar quality standards, equivalent to products of the same type manufactured on an
industrial scale.

In the period of 2014-2018, the factory had 39 major initiatives recorded and many other improvements to
streamline production, helping to promptly meet production plans, improve a number of production
management processes, benefit up to billions, save hundreds of millions.

Typically in 2016, the factory has successfully manufactured the filter candle holder system, so that the
filter output increases 25-30% per batch, the life of the candle system increases by 20% with the new filter
candle value for 2 filters worth more than 10 billion.

Select Strategy

Habeco strives to maintain the leading reputation in Vietnam for product quality products, prices, modes of
customer service. So the strategic positioning of Habeco is the optimal product.

Vision – Mission

Vision: Turning Habeco into one of the strong Corporation, playing a key role in the beer, wine and
beverage industry and becoming one of Asia's leading businesses in manufacturing and trading beer.
Mission: Maintaining and developing Hanoi Beer products has always been the refined in the culinary
culture of "Trang An" and is the pride of Hanoi.

Core Value: “PRESTIGE WITH CUSTOMERS IS THE BACKGROUND OF PROSPEROUS”-

determined to satisfy the needs and requirements of customers is the first priority, is the foundation of the
success and longevity of Habeco.

Organization’s Assets and Skills

Assets:

Habeco Joint Stock Corporation currently owns 16 subsidiaries and 6 associates companies with a staff of
more than 5,000 people. In particular, Habeco' s Beer products include 21 types of beer, wine and soft
drinks (11 types of beer, 9 types of alcohol and Uni Aqua beverage).

In Q2/2019, the advertising, promotion and support expenses of Habeco were VND 150 billion. The
company has changed its brand identity and launched a new beer product, aimed at young people.

Also in Q2, financial revenue of Habeco increased by 28% to VND 43.38 billion, mainly due to an increase
in deposit interest. Currently, Habeco's cash and equivalents (including bank deposits) amount to VND
3,826 billion, accounting for 42% of the company's total assets.

Skills:

In manufacture: The company has proposed strategies to monitor the producing process, balance the
production at member units, ensuring the achievement of the year target. In addition, HABECO continues
to improve production and business efficiency, promote existing capacity, actively promote production and
consumption of products that have advantages in the market; To well carry out the thrift and anti-waste
work at all stages of the production and circulation process; Focusing on promoting the initiative to
propagate awareness, industrial style, as well as corporate culture, environmental protection for employees
in order to maximize the creativity, qualifications and capacity of employees.

In distribution in the market: Habeco has been focusing on promotions, sales support for dealers, shops,
key restaurants as well as direct promotions for consumers. Organizing brand promotion events to
consumers and distribution points. Besides, perfecting the distribution system, coordinating with member
units to expand the market and seeking more opportunities for export.

Furthermore, Hanoi Beverage Corporation has organized successfully some workshops and training
courses. One of them is the training short course of “Effective teamwork skills” for officers and employees
of Habeco.

Nowadays, once science and technology are dramatically developing, it becomes an important factor that
teamwork skills is needed more than ever, as it’s believed to be an effective model for working – focusing
on the strengths of each person and complementing each other also. To recognize the importance of
building working groups, the program “Effective teamwork skills” was studied and consistently designed,
based on Habeco’s business activities and particular economic characteristic. This program is taught by
well-experienced instructors of Habeco, with the aim of building the knowledge and role of working groups
in learners; providing them the principles of building an effective working team, showing them that the
problem usually occurs in groups and how to resolve conflict, thereby improving the ability to assess the
performance of the group, and applying the skills acquired in working groups to maximize personal power.
By using such an unique learning method which is mainly based on discussing and participating in practical
games, this course is expected to offer the officers and employees in Habeco a new experience in
professional learning atmosphere.

Market Analysis

Business Environmental Analysis

Political/Legal/Institutional Factors

Cambodia is a bordering market in the east of Vietnam, has 9 common border provinces, 9 international
border gates, 9 national border gates, 30 secondary border gates and many trails, with relatively flat terrain,
systematic Canals travel smoothly on both sides, the distance from TP. Ho Chi Minh City to Phnom Penh
only 230 km. Thus, the two countries have many favorable conditions to promote cooperation in many
fields thanks to the favorable geographical position.

Political stability: Currently Cambodia has stabilized politics and security significantly improved.

Solid legal corridors for businesses, meaning that international rules and regulations are also being
implemented in the Cambodian market.

Regulatory Environmental Factors (Present and Anticipated)

Tariff and non-tariff barriers exist for imported products:

Over the years, the two countries have created a favorable legal environment in terms of trade, giving
preferential treatment to each other's businesses and goods. In particular, agricultural products of
Cambodian origin are eligible for preferential import tax rates of 0% for Vietnam. Mechanisms and policies
on the management of border trade activities have been implemented consistently across the country.
Two-way trade turnover between the two.

The country is constantly increasing, the following year is higher than the previous year. Cambodian
officials say trade between the two countries is still high. In 2016, Vietnam is also the fifth largest global
export market (3rd Asia) of Cambodia, accounting for 5% of total export value of Cambodia. Vietnam is
also a huge import market of Cambodia (ranked third after Thailand and China) with a total value of up to
16.4% of the total import value of Cambodia.

Vietnam exports to Cambodia textiles, cables, plastic household appliances, noodles and electrical spare
parts.

Cambodia exports goods such as rubber, raw materials for the garment industry, tobacco leaves and wood
products to Vietnam.

In addition to the advantages of tariff and non-tariff barriers to Vietnam, Cambodia also has the advantage
of integrating into the international market. That is, investors who come to Cambodia to produce products
exported to the European market on the Cambodian platform are not subject to quota barriers in this
market. For Canada, Japan, South Korea, India and other major countries too, all are tax free and no quotas
are applied. Besides, another important issue is that Cambodia has a completely open trade policy.

The regulatory standards labeling:

Labels or symbols are not required for all imported goods, however, products need to be certified and
registered with the relevant ministries before importing into Cambodia. Labels for different products are
specified and certified by different ministries. Suppliers of products that may harm public health or public
safety are also required to certify that the product complies with standards of the Cambodian Standards
Institute (ISC). For example, ISC-required standards apply to electrical and electronic products. ISC is
responsible for drafting and promulgating regulations, while the General Department of Import Export
Inspection and Cambodian fraud enforcement (Camcontrol) of the Ministry of Trade is responsible for
providing notice before approving for regulated products.

Economic Conditions

In general, Cambodia is a predominantly agricultural country (58% of the population is engaged in

agriculture, agriculture also accounts for nearly 40% of the country's GDP), economic development is
highly dependent on the exploitation of mineral resources and tourism. So the industry in Cambodia is
limited and weak.

According to Cambodia's latest economic statistics in 2019 show:

- GDP: 22.16 billion US dollars. The GDP value of Cambodia represents 0.04 percent of the world
economy.

- Unemployment Rate in Cambodia decreased to 0.10 percent in 2017 from 0.20 percent in 2016.

- The inflation rate in Cambodia was recorded at 2.07 percent in April of 2019.

- The benchmark interest rate in Cambodia was last recorded at 1.46 percent.

- Exchange Rate: 4095 KHR/USD (September 20, 2019).

Based on the above data, the economy of Cambodia has been improved and stable after the 2008 economic
crisis. Thanks to the National Strategy Development Plan,... Cambodia has escaped from the situation page
degradation, stagnation. The Cambodian government has been trying to implement many measures to
reduce inflation rates, increase investment incentives for agricultural development, fuel subsidies and
increase bank reserves, reduce commodity taxes, and unload. Remove some barriers in trade competition,
including opening the door for domestic goods to freely compete with the products of large economic
groups. The Cambodian government is also working hard to promote exploration and exploitation of oil
and ore, to reduce dependence on textiles and tourism.

Thanks to the implementation of the policy of economic opening, regional and international integration,
actively promoting economic development policies and attracting foreign investment. The investment
environment in Cambodia also faces the following advantages and disadvantages:

Advantages:

- The political and security situation is increasingly stable and significantly improved, the economy is
well established. Facilitate the implementation of many economic liberal policies and become the most
open economy in Asia.

- Abundant natural mineral resources are a potential for the development of the Cambodian economy.
In addition, Cambodia is located in the center of Southeast Asia, a region with a developed and dynamic
economy with a potential market of more than 16 million people. Investing in Cambodia, investors not only
benefit from the domestic market but also have the opportunity to penetrate the ASEAN and WTO markets.

- Cambodia has a priority card, which is the ability to enter the market, while neighboring countries
do not have that advantage. Laos and Myanmar also have advantages like Cambodia, which are also less
developed countries, but Laos has no door to the sea, and Myanmar does not have the right to penetrate the
market of developed countries. Within ASEAN, only Cambodia has the greatest advantage to develop as an
underdeveloped country.

Disadvantages:

- Cambodia remains one of the poorest countries in Asia, with difficult economic development due to
corruption, limited education, a large gap between rich and poor, and poor infrastructure in some areas.

- It is often assumed that Cambodia is just a small market. Cambodia has just over 16 million people,
while its neighbors have more than 90 million, the southern countries have more than 200 million, and in
the north more than 1 billion. When investors are interested in the region, while Cambodia tries to attract
investment, they choose Thailand and Vietnam because these countries have a larger domestic market than
Cambodia. So we need to give investors a different way of doing business in Cambodia to attract more
foreign investment.

Social and Cultural Factors

- Socially, beer drinking in Cambodia is no longer entirely male dominated. Now, beer consumers
increasingly include both men and women. In addition to a shifting gender balance, the typical drinker age
profile is also changing, and more young people are enjoying beer.

- When Cambodians propose a toast, they usually stipulate what percentage must be downed. If they
are feeling generous, it might be just ha-sip pea-roi (50%), but more often than not it is moi roi pea-roi
(100%). This is why they love ice in their beer, as they can pace themselves over the course of the night.

- Cambodia has many festivals, such as Cambodia National Day, Celebrating the day of winning the
Genocide, the New Year of the Chuseok Year, the Chôl Chnăm Thmây holiday, the Water Festival - Bon
Om Touk, the King's Birthday… and during festive seasons like these, Cambodians often gather together to
play and eat. Therefore, the demand for beer of customers is more and it is convenient for beer business in
these seasons.

Demographic Trends
Gender

According to danso.org, the sex ratio in the total population of Cambodia is 0.952 (952 males / 1,000
females) higher than the global sex ratio. The global sex ratio in the world in 2018 was about 1,017 males
per 1,000 females.
Age
The average age in Cambodia is 24 years old.
As of early 2017, estimates
Under 15 years old: 32.2% of the total Cambodian population
From 15 to 64 years: 64.1% of the total Cambodian population
Over 64 years old: 3.8% of the total Cambodian population
Population data by age (estimated):
- 5,135,986 teenagers under 15 years old (2,578,286 males / 2,557,700 females)
- 10,221,862 people from 15 to 64 years old (4,909,692 men / 5,312,170 women)
- 600,845 people over 64 years old (226,294 men / 374,551 women)
Cambodia Population pyramid 2017 (Source: https://danso.org/campuchia/)

Income

Per capita income from USD 1,042 in 2013 increased to USD 1,563 in 2018, significantly contributing to
improving the living standards of people. The poverty rate plummeted from 53.5% in 2004 to 13% in 2016
and continues to decline. As such, Cambodia has reached an important milestone from a low-income
country to a low-middle-income country and is continuing to become a high-middle-income country by
2030.

Ethnicity

There is some diversity evident in Cambodia, with an ethnic breakdown of the population currently at
Khmer 97.6%, Cham 1.2%, Chinese 0.1%, Vietnamese 0.1%, and other races at 0.9% as estimated in 2013
by the World Factbook.

Khmer is the official language of Cambodia, coming in with 97% of the population using it on a regular
basis, with other languages at only 3%.

Technological Environment and Trends

By the end of 2017, half of Cambodia’s population had access to the internet and the country’s year-on-year
internet penetration growth rate was relatively low at 12% – compared to 28%, 29 per cent and 33% in
Vietnam, Myanmar and Laos, respectively. Cambodia does, however, have a high mobile phone connection
rate. It is estimated that of the country’s 29.2 million mobile phone connections, 52% have 3G or 4G
broadband coverage.

As social media usage in Cambodia continues to rise, tech giant Facebook still remains the platform of
choice for Cambodians. Within the last year, the platform has witnessed two million new users, equating to
one in two people currently having a Facebook account in the Kingdom.

The adoption of new technologies is slow in Cambodia due to a lack of investment and trust in online
transactions or financial institutions. According to World Bank estimates, only 22% of the total population
have a bank account, 3% have a bank card, 13% receive or make mobile payments, and 0.6% make online
purchases or pay bills online.

Cambodia’s digital ecosystem is still small, but the emergence of local tech start-ups is gradually changing
the way people live and do business. There are around 130 start-ups of various types in Cambodia,
including in financial technology, logistics and online booking industries.

Digital literacy remains low among the general population and skill shortages plague many job sectors. A
National Employment Agency report revealed that 78% of employers in the hospitality sector and more
than 50% of employers in shipping and logistics, health, education and training, food and beverage
processing, and insurance and finance sectors face recruitment difficulties.

About the beer industry, the breweries in Cambodia have invested and focused more on advanced
machinery and modern technology imported from Europe to create the best quality products and the best
taste for Cambodian people.

Natural Environment (Effect of Seasonal or Climatic Factors)

Cambodia’s climate is dominated by monsoons like the rest of Southeast Asia.

Cambodia has a temperature range from 21 to 35°C (70 to 95°F) and experiences tropical monsoons. This
may be a challenge for storing the products if the facilities aren’t good enough because the ideal
temperature for storing lager is 35 to 40°F.

Despite that, the dry season lasts from November to April when temperatures can rise up to 40 °C (104 °F)
around April can increase the demand for beer products.

The rainy season, which runs from May to October, can see temperatures drop to 22 °C (72 °F) and is
generally accompanied with high humidity may cause difficulty to products transportation.

According to the International Development Research Center and The United Nations, Cambodia is
considered Southeast Asia's most vulnerable country to the effects of climate change. Shortages of clean
water, extreme flooding, mudslides, higher sea levels and potentially destructive storms are of particular
concern, according to the Cambodia Climate Change Alliance. These issues can also impact both on storing
and transporting activities.

Physical Environment (Infrastructure Indicators)

The capital of Cambodia is Phnom Penh (Phnom Penh). Other major provinces and cities include:
Battambang, Kampong Cham, SihanoukVille, Seam Reap.

Transportation:

Cambodia is not a country with good infrastructure, as a result of the civil war and conflict that lasted
decades. Therefore, the government is trying to open diplomatic channels to attract foreign investment to
improve its infrastructure. Currently there is only one railway system running to Kampong Cham and to the
Northwest bordering Thailand, the total length of the railway is 603 km. Cambodia is planning to build a
railway linking Ho Chi Minh City and Phnom Penh with Vietnam to build a part of the Trans-Asia railway.

Cambodia's roads are only about 12% of the 35,769 km paved. The best route is to connect the capital,
Phnom Penh, to SihanoukVille seaport. This is why so many factories are located along this road for
convenient transportation of goods when importing and exporting.

In aviation, the country has 19 airports. In addition, Cambodia has about 3,700 km of inland waterways.

Natural resources:

Main resources: Wood, minerals and metal ores, hydroelectricity, oil.

Besides land resources for agricultural development, Cambodia also has abundant forest resources with
more than 70% of the forest area covered. Wood is Cambodia's main source of forest products.
Water resources are also significant, including the hydropower potential from changing the flow of the
Mekong River and building power plants to solve electricity price problems for investment enterprises,
doing business in Cambodia. Although the construction of hydropower plants addresses the electricity price
problem in Cambodia, the excessive exploitation of water resources to make hydroelectric power poses
challenges to the environment.

Regarding mineral resources and metal ores, it was previously thought that Cambodia's reserves were not
very large. In the 1950s and 1960s, Chinese experts discovered iron ore reserves of about 5.2 million tons
in Christian Chun province and about 120,000 tons of Manganese ore in Kampong Thum province. In
addition, some northern provinces also have iron ore, with reserves of about 2.5 to 4.8 million tons.

Cambodia also has some other precious minerals like silver, ruby, etc., but the reserves are quite modest.

Most notably, in early 2010, a gold mine with a reserve of about 8.1 million tons of ore was discovered in
Mondulkiri province, northeastern Cambodia, near the border with Vietnam.

Cambodia is also expected to have oil potential, as neighboring Southeast Asian countries share the same
continental shelf. Although the current oil reserves have not been accurately estimated (or not yet
published), some large corporations such as Chevron (USA), GS Caltex of Korea, Mitsui Oil Exploration
Holding of Japan and Kris Energy (Singapore) participated in oil and gas exploration drilling in Cambodia.

At present, 22 wells have been drilled for exploration in the continental shelf of Cambodia (Gulf of
Thailand). The estimated reserve of Lot A is about 500 million barrels, but currently it is only capable of
exploiting about 15-20% due to complex strata.

Due to the potential of mineral reserves, the government Cambodia is making efforts to promote oil and ore
exploration and exploitation activities, in order to reduce its dependence on textiles and tourism.

Nature of Demand

Cambodians enjoy socialising over alcoholic drinks, more and more people consume beer as their incomes
rise. Sales are also benefiting from young women increasingly drinking alcohol while socialising with
friends and from ongoing growth in tourist numbers.

Size and Extent of Demand

Cambodia is the fifth largest beer market in the region with an estimated 136 million liters.

72% of Cambodia’s 136 million liters beers is brewed domestically.

Cambodia also has plenty of imported beer – 28% of the beer market comes from overseas – mostly
Thailand and Vietnam.

Legal beer imports in 2013 amounted to 7.7 million liters.

Product Category Stage of Product Life Cycle

In June 2019, Habeco launched two product lines of Hanoi Light and Hanoi Bold in Vietnam market. This
is a modern and youthful product line aimed at young Vietnamese consumers. It can be said that these two
product lines have completely different styles compared to other products of Habeco and other beer brands
in the Vietnamese market.
In general, Hanoi Light and Hanoi Bold are located at the intersection stage at the introduction and
development stage of the product life cycle. This is the period that Habeco transformed for preparing a
strategy to expand market share, reduce issuance costs and increase profit for the company. Specific
strategies such as:

- Promote advertising campaigns

- Expanding product distribution channels in the Central and the South

- Developing price strategy

Structure of the Industry

Cost structure of the industry

Habeco's consolidated financial statements for the first quarter of 2019 with net sales of 1,564 billion dong,
up nearly 10% over the same period last year. However, Habeco's gross profit is only 334 billion dong,
down by 13% compared to Q1 / 2018 because COGS increased by 18%, faster than revenue growth.
Financial revenue (mainly deposit interest and loan) in the first quarter of 2019 increased by 23% to VND
36.05 billion. While financial expenses decreased by 35% to VND 8.64 billion.
Total selling and administrative expenses were also reduced by 5% to nearly 268 billion dong. After
deducting expenses incurred in the period, Habeco reached approximately VND 64 billion of profit after
tax in the first quarter, a sharp decrease of 42% compared to the same period last year. In which, parent
company's shareholder profit is 98.3 billion dong, down by 25%. Still, Habeco has set a revenue target by
the end of the year of more than US$515 million in 2019, 9 per cent higher than last year’s figure.

Competitive structure of the industry

The major competitors of Habeco when exporting products to Cambodia are Cambodia brewers and
Vietnamese products which are manufactured and sold in Cambodia like Sabeco.

Sabeco:

Large market share, reputable brand of high quality, diverse models and products that stand firm in the
market.

Extensive distribution system.

Extensive brewery system, advanced production techniques.

Staff dedicated, attached to the company

Cambodia is a country that consumes a lot of beer. Sabeco is exploring the acquisition of breweries there to
increase sales of alcoholic beverages in ASEAN, one of the fastest growing regions in the world.

Cambodia is a country that consumes a lot of beer. Sabeco is exploring the acquisition of breweries there to
increase sales of alcoholic beverages in ASEAN, one of the fastest growing regions in the world including
Cambodia (Sabeco 's Sai gon Beer accounts for 23% of the ASEAN market).

Competitor Analysis (in country of investment)

 ● Industrial beer market

Features Cambrew Products HN Beer

Angkor Premium Tuborg Carlsberg Bold & Light

STP Middle-class young High-class Middle-class Middle to

adults High-class young
(Female) adults
(Both genders) (Both genders)
(Both genders)

Label

Capacity 330ml & 640ml 330ml 330ml

Alcohol 5% 5.8% 4.8% Bold 4.8%

concentration
Light 4.5%

Price $0.8 $2.5 $0.9

Features Cambodia Brewery Products HN Beer

Heineken Tiger Anchor Gold Crown Bold & Light

Tiger Crystal

STP High-class Middle to Low to Low to Middle to

adults High-class adults Middle-class Middle - class High-class young
young adults adults adults
(Both (Both genders)
genders) (all genders) (Both genders)
 (Both
genders)

Label

Capacity 330ml 330ml 330ml 330ml (can 330ml

only)

Alcohol 5% Tiger 5% 4% 4.5% Bold 4.8%

concentratio
n Tiger Crystal Light 4.5%
4.6%

Price $0.92 $0.78 $0.9 $0.5

Features Khmer Brewery Products HN Beer

Cambodia Beer Bold & Light

STP Middle to High-class adults Middle to High-class young adults

(Both genders) (Both genders)

Label

Capacity 330ml 330ml

Alcohol 5% Bold 4.8%

concentration
Light 4.5%
 Price $0.85

● Craft beer market

In addition to confronting heavy competitors specializing in industrial beer production, Habeco has to
compete with a new break market which is craft beer which is becoming a consumer trend in Asian market
(in including Vietnam and Cambodia). Although the production scale of craft beer is small, it has a great
influence when changing consumer trends to enjoy beer with many different flavors, creating a new
experience that gradually attracts many users. In Cambodia, Habeco confronts with industrial beer
exporters in Vietnam, foreign enterprises and craft beer competitors in Cambodia market such as Smiling
Evil of America, Stone Head of Thailand, Fuzzy Logic brew of Vietnam. , Elite Craft Cambodian Beer, ...

SWOT Analysis

Internal Company Strengths and Weaknesses

Strengths

· Occupying the 3rd position in Vietnam's beer market and dominating the Northern beer consumption
market

· Export experience in many countries in Taiwan, Korea, United Kingdom, Germany, USA, Australia
and many other developed countries

· Diverse products (Beer - wine - soft drinks) from the low to high end segments

· Technology improved according to international standards

· Foreign investment from Carlberg holds a 17% stake.

Weaknesses

· Not yet promoting the beer distribution network in the Central and the South of Vietnam (the
Southern and Central regions bordering Cambodia)

· Not promoting the construction of an international brand image

External Market Opportunities and Threats

Opportunities

· Cambodia has a convenient location adjacent to Vietnam. Favorable distribution of products by

many different roads: Sea, road, air.

· Politics and security is stable, the open market economy easily accepts new brands

· The bilateral cooperation between Vietnam and Cambodia is a favorable condition for exporting beer
to the Cambodian market
· Cambodia has a developed beer drinking culture

· The Vietnamese community living in Cambodia accounts for 0.1% of the Cambodian population

Threats

· Many strong and experienced competitors in the market: Cambrew Brewery, Cambodia
Brewery, Khmer Brewery and Craft Beer,...
· The trend of switching to manual beer consumption in the Cambodian beer market

Implications of SWOT Analysis

Objectives

Core business objectives: Increase customer acquisition by 5% by the first 3 months.

Financial objective: Grow earning 5% by the first 6 months. Keep a positive cash flow.

Marketing objective: Increasing sale of existing product by 10% by the first 6 months.

Product/price objective: Maintain the initial price during product image development, reducing the product
discount strategy.

Communication objectives: Increasing brand awareness to Cambodia market and getting positive feedback
from consumers.

Recommended Marketing Strategy (STP Framework)

Age 21 - 22 23 - 35 >35

Gender Male & Male & mainly

Female Female male

Income Low-mid Mid-high Mid-high

Demographic income income income

400 - 400 -
200-400 1000 1000
USD/mo USD/mon USD/mon
nth th th
 Mid-high
income
High
400 - income
1000
USD/thá >1000US
ng D / Tháng

Occupati Student, White and White and

on White Blue Blue
and Blue Collar Collar
Collar

Marital unmarrie unmarried

status d unmarried and
and married
married

Geographic Country Cambodia

Area Urban area & rural area

Psychologica Lifestyle outgoing, outgoing, stability

l social social

Personalt independ independe caring

y ence nce, about
strong, heathly
strong,
active and
active
young enjoy the
and
beer
young
Target markets identification and Segmentation strategy
Demographics:
Gender: Male and Female
Age: 21-35 (the legal drinking age is over 21 years of age based on Cambodia’s drinking law)
Income: mid-high income
Occupation: Student, White and Blue Collar
Geographics:
Country: Cambodia
Area: Urban area (Phnom Penh, KamPong Cham…)
Psychographics:
Lifestyle: outgoing, social
Personality: strong, active and young
Customer type: Glocal

Market positioning

We are positioned as a brand that provides high-end product lines and targets young consumers with a
modern, youthful style, completely different from the existing beer products of Habeco and other beer
brands. other in Cambodia market. Our reason is to position the segment at a high level based on product
quality (using European imported raw materials and advanced beer production technology up to
international standards); high prices until eye-catching product packaging design and international beer
standards.

Market entry strategy

Marketing Mix Strategies and Tactics

Product and Branding strategy

Type of Products: Hanoi Bold and Light are non-durable goods (are consumed quickly)

Classification of Products: Hanoi Bold and Light are convenience products

Product Dimension:

- Core product: beer

- Volumetric at 20°C: 355ml
- Bottles are stored inside plastic beer crates

- Products are stored inside specialized glass bottles and sealed with tinned iron bottle caps
(lined by rubble)

Auxiliary dimensions:

- Address: 183 Hoang Hoa Tham, Ba Dinh, Hanoi, Vietnam.

- Email: contact@habeco.com.vn
- Customers service hotline: 024.38453843
 - Purchasing hotline: 024.66546909
Label:

Legal Requirements:

Labels or symbols are not required for all imported goods, however, products need to be certified and
registered with the relevant ministries before importing into Cambodia. Labels for different products are
specified and certified by different ministries.

Suppliers of products that may harm public health or public safety are also required to certify that the
product complies with standards of the Cambodian Standards Institute (ISC).

For example, the required ISC-required standards apply to electrical and electronic products. ISC is
responsible for drafting and promulgating regulations, while the General Department of Import Export
Inspection and Cambodian fraud enforcement (Camcontrol) of the Ministry of Trade is responsible for
providing notice before approving for regulated products.

Cambodia has adopted Cambodia's Standards Law to improve the quality of products, services and
management; improve and streamline production efficiency; ensure fair and simple trade; rationalize
product use and enhance consumer protection and public welfare.

Aesthetics:

Packaging:

Habeco's product strategy when entering the Cambodian market is to differentiate the brand on each
product line to bring a new experience and in line with the consumption trend of young people.

Visual Elements:

- Change your image to become closer in the eyes of young customers.

- Hanoi Light has a mild flavor with bright yellow beer on a transparent white bottle
background while the "brother" Hanoi Bold has a striking green color and a rich beer.
- This strategy is most evident when recently, the oldest beer company in the capital
introduced two new products, Hanoi Bold and Hanoi Light, which are thought to be completely
different from products of Habeco and other companies. market, marking a strong comeback with
the segment for young people.

Informational Elements:

- Information is delivered to customers through the product's labels, from the ingredients, the
standard code is also printed on the label.

Protective Elements:

- Products contained in special-use glass bottles and sealed with tin-covered iron caps (with
synthetic rubber pads used for food). Packaging materials and materials in direct contact ensure
food safety in accordance with the regulations of the Ministry of Health.
- The product has also been tested to meet hygienic standards, on the level of alcohol content
and other components of Habeco Bold and Light beer according to an ISO / IEC accredited criteria.

Symbolic Elements:
In Vietnam, Habeco uses a re-planning strategy for two bold new product lines, Hanoi and Hanoi, with the
aim of changing the brand's appearance in the minds of customers and expanding the market segment. to
target young people and expand market share to Central and Southern Vietnam. At the same time, two new
product lines (Hanoi Light & Hanoi Bold) are exported to Cambodia to help build an innovative and
modern brand image of a traditional Vietnamese beer brand.

This is Habeco's first time exporting beer to Cambodia, therefore, we use a strategy of expanding the
product line horizontally to attract tastes and create more choices for customers including men and women.
when using the product.

Product life cycle

Hanoi Light and Hanoi bold are new products in Vietnam market and have not been exported to any other
countries in the world. Therefore, these two product lines exported to Cambodia are in the early stages of
product introduction.

At this stage, Habeco needs to invest in Cambodian market research costs to learn Cambodian culture and
lifestyle with appropriate market entry strategies. In addition, sales will increase slowly, even profits can
lead to negative numbers because not many customers know the product and need to promote advertising
strategies to Cambodian consumers, especially the young.

Place (Distribution) strategy

Environment Factor:

Cambodia's landscape is characterised by a low-lying central plain that is surrounded by uplands and low
mountains and includes the Tonle Sap (Great Lake) and the upper reaches of the Mekong River delta can be
an advantage for distributing the product throughout the country.

Habeco will direct export Hanoi Light & Bold to Cambodia market (especially to intermediary retailers) to
expand market share.

International Marketing Channel Decisions:

Distribution intensity: Habeco will use intensive distribution for Hanoi Light & Bold.

Selection of Distribution Channels:

Habeco will distribute the products to wholesalers, retailers and consumers to ensure that Hanoi Light &
Bold will be made available at many distinct retail outlets as possible.

Establishing international channel strategies: Habeco will use both push and pull strategies in order to both
increase consumers demand and overcoming intermediary resistance to foreign products.

Selecting intermediary arrangements: Habeco will choose Vertical Marketing Systems.

Choosing channel partner: The potential partners of Habeco will be all of the beer retail outlets,
wholesalers, retailers, supermarkets, convenience stores bars, pubs,etc. in Cambodia (especially in big
cities like Phnom Penh, Battambang,etc.)

Habeco will negotiate non - exclusive distribution arrangements with all partners.

Price strategy structure

An advantage when investing or exporting in Cambodia is exempt from export tax, except for some
products as follows: Wood, sawn timber, timber... high-value products. Habeco's beer products, especially
Habeco Bold and Light when exported to Cambodia, the first price will be the one offered by a
manufacturer to middlemen, typically wholesalers and distributors. These organizations then resell the item
to retailers at the wholesale price. Retailers mark up the item and the final price becomes the retail price.

Brewing companies in Cambodia use pricing as a tool to differentiate their premium brands from the other
products. The launch of Habeco's light and bold lines is a milestone to change the minds of customers with
high-end products and aimed at young people. Positioned as a high-end product line because of the use of
imported materials combined with advanced European technology. Therefore, Habeco sets high prices and
high quality for 2 product lines (Hanoi Bold and Hanoi Light).This approach allows Hanoi Beer to
maintain high image of these brands and position them in all Cambodia markets as premium beers. The
relatively low average price of beer in the Cambodia market represents an opportunity to generate profits.

High

Price Considerations:

HN Bold&Light
 QUALI
TY

Low PRICE
High

Product price will be determined demand-based or cost-plus. Habeco will use penetration pricing for two
new products (Hanoi Bold & Hanoi Light) Penetration Pricing help Habeco build sales figures and gain
market share in Cambodia as quickly as possible.

Short-Term vs. Long-Term Goals

Short-Term goals:
· Habeco will use penetration pricing to gain 20% of Cambodia market share in 2 years
· Create brand awareness for Habeco
· Encourage consumers using the product by using discounts, free samples,...
Long-Term goals:
 · Establish the brand image of Habeco as a high quality product by slowly increase the price
of product once the brand is well-known.
· Recover losses from penetration pricing and gain profits with a strong brand image.

Habeco applies two main types of pricing discounts: seasonal discounts and quantity discounts.

- Seasonal discounts: On holidays, customers consume more beer than usual. Therefore,
regular days will have more special promotions. For examples, In addition to the special
promotions of the New Year, there will be other promotions such as buying a carton of beer will get
a free glass, or buying a carton will get an additional 3 cans of beer.
- Quantity discounts: When a retailer buys 1 can / bottle of beer, it will be more expensive to
buy a package of 6 cans / bottle, likewise, buying by box / keg will get a more preferential price
than buying retail and package.

When exporting regardless of a product line from one country to another, the price will be changed
depending on the transportation costs and export tax in the importing country itself. As a result, Habeco's
export beer price to Cambodia will increase due to the cost of transportation and export taxes excluding
intermediate costs incurred. However, the price will not be too high compared to the Vietnamese market
because this is the first step for Habeco to penetrate the Cambodian beer market.

The share price of Habeco should be calculated carefully and based on a number of factors. The eventual
price of Habeco needs to be referenced with the book value of the Hanoi-based brewer and other internal
and external companies within the beverage sector in order to be suitable with Cambodian’s average wage
who has a requirement of drinking beer.

In addition, Habeco leaders have a smart strategic vision in using the distributor system. After more than 1
year of transformation from agent to distributor, the business results were healthy and effective, there was
no competition in dumping pricing in the Hanoi Beer market. If Habeco can apply this method when
exporting its products to Cambodia, this could increase Habeco's profits and expand the market in
Cambodia.

Promotion strategy (including Promotional Budget)

The combination of “push” and “pull” are used on purpose of brand extension and brand positioning in
customers’ mind.

- Push strategy: based on Vertical Marketing Systems, work with all distribution channel,
“push” the product from manufacturers to intermediaries, with an emphasis on wholesale
distribution, intermediaries or sellers.

- Pull strategy:
o PR activities: Promote the advertisements on TV media, impressive TVC, events
(Launching event). Advertising message and image will be created in an impressive, eye -
catching way, illustrate the characteristics of the product and adapt to Cambodian modest
culture and environment. Message will be translated into Cambodian which still saves the
original meaning from Vietnamese message.
o Hanoi Bold and Hanoi Light‘s Launching Event: this two kinds of beers are served
throughout the party in order that all the participants can try and experience.
o Sampling booth in supermarket: Introduce products directly to consumers and let
consumers experience them.
 o Premiums: buy 1 pack of 6 bottle, you will receive 1 Hanoi Light beer glass.

Planning Budget

Planning assumptions
Market assumptions:

Hanoi Bold & Light may not be well - known immediately because of many competitors in the market but
with Habeco’s marketing mix plan and freshness of the products, Hanoi Bold & Light will be received well
by customers after a month.

With the penetration of new products, other competitors can adjust their strategy and have plan to deal with
Habeco’s new products.

Internal organization assumptions:

Habeco’s international marketing plan can be changed or interrupted by the stakes purchase of Carlsberg
(currently Carlsberg is holding 17,51% stake of Habeco).

Machinery and Technical assumptions:

With the current stage of Habeco, the technological environment of Vietnam and Cambodia, there will be
no technical issue that affect the plan.

Resource Assumptions:

Cambodia is a familiar market for Vietnamese enterprises and Habeco has many experiences in exporting
products to other countries, the marketing team will have enough necessary knowledge, skills and resources
to carry out the plan.

Forecast sales (and Market share) and Costs (Capital, Operating, Marketing, etc.)

Sale forecast in the first year

PRODUCT Jan-1 to April-1 to July-1 to Oct-1 to Total

NAME Mar-31 Jun-30 Sep-30 Dec-31

Habeco Price per 0.6$ 0.6$ 0.6$ 0.6$

Light & unit
Bold
Units sold 3000 4000 4000 5000 16000

Total 1800$ 2400$ 2400$ 3000$ 9600$

Sale forecast in the second year

PRODUCT Jan-1 to April-1 to July-1 to Oct-1 to Total

NAME Mar-31 Jun-30 Sep-30 Dec-31

Habeco Price per 0.7$ 0.7$ 0.7$ 0.7$

Bold & unit
Light
Unit sold 5000 5000 6000 7000 23000

Total 3500$ 3500$ 4200$ 4900$ 16100$

Sale forecast in the third year

PRODUCT Jan-1 to April-1 to July-1 to Oct-1 to Total

NAME Mar-31 Jun-30 Sep-30 Dec-31

Habeco Price per 0.7$ 0.7$ 0.7& 0.7$

Bold & unit
Light
Unit sold 7000 7000 7000 7000 28000

Total 4900$ 4900$ 4900$ 4900$ 19600$

Total sale forecast in the first three year

Total unit sold 67000

Total revenue 45300$

Forecast profitability (or Break even analysis)

Sensitivity analysis (incorporating contingency issues)

Implementation and Control

The purpose of Habeco's marketing plan is to enter Cambodia's beer market, increase
brand awareness.

Habeco's Marketing Department will follow the plan outlined and be responsible for
controlling export strategies to enter Cambodia's beer market.

Revenue: every quarter and every year

Cost: monthly and yearly

Creating demand for customers

Developing new product lines

Capturing Cambodian market share

Control

Risks:

Habeco can be lack of financial abilities, resources when competing with other strong
competitors like Heineken, Carlsberg,etc=> leading to fail to gain enough market shares in
the market.

Some of the differences in cultures, languages, taste,... can be a difficult for the marketing
team to do researches, deal with unpredictable situations effectively such as customers
have new demand on taste of the products, new competitors enter the market at the same
time or current brands in the market launch new products.

Habeco can position the products wrong or aim at incorrect target customers.

The first phase of entering the Cambodian market will inevitably result in a loss of revenue
due to the high cost of transportation, taxes and distribution .... Besides, this is a newly
launched product of Habeco in the Cambodian market, so it is unknown and consume
extensively

Solutions:

Have the experience marketing to research the market carefully before executing
strategies.

Only distribute the products at some big retailers such as supermarkets, convenient stores,
etc. To experiments the products and customers reaction and behaviors first before
intensively distribute the products at orders retailers.

Promote distribution network in central and southern Vietnam (these are the two areas
adjacent to Cambodia) and act as a bridge to export to Cambodia to reduce transportation
costs.

Carlsberg is a competitor to Habeco but Carlsberg holds a 17% stake of Habeco and also
contributes a share in cambrew beer company of Cambodia. Therefore Carlsberg is an
intermediary to help Habeco cooperate with Cambodian brand to make Habeco's new
products more accessible to the Cambodian consumer market.
Formal project plan for implementation of recommendations

Monitoring of action plan

Formal contingency plans

The First Year The Second Year The Third Year

1.Expected Revenues

a. Sales

b. Sales of services,
receipt of commissions

c. Manufacture of
products for own use

2.Sum of all intermediate

inputs

a. Goods and material

input

b. Acquisition of
suppliers

3. Gross profit
 4. Total expenses

a. Personnel costs

b. Publicity

c. Vehicle costs

d. Internet

e. Office materials

f. Packaging

g. Insurances

PRODUCT NAME Q1 Q2 Q3 Q4 Total

Habeco Light & Price per 0.6$ 0.6$ 0.6$ 0.8$

Bold unit

Units sold 691.7 1.037. 345.8 1.383.5 3.458.9

(bottle)
82 674 91 65 12
Total 415.0 830.13 276.7 1.106.8 2.628.7
69$ 9$ 13$ 52$ 73$
 The First Year The Second Year The Third Year

1.Expected Revenues

a. Sales
2.352.060$ 2.905.486$ 3.050.761$

2.Sum of all
intermediate inputs

a. Goods and
material input

b. Tax
235.206$ 290.548$ 305.076$

3. Gross profit