GROUP 1

ABOUT SABECO
Saigon Beer - Alcohol - Beverage Corporation (SABECO)

145-year history and 43 years of brand evolution by 2020

Represents richness of southern Vietnam and spirit of Saigon

residents

Two initial beer types, now 10 product lines

Market leaders in Vietnam, entering markets like Germany, USA,

and Japan (Sabeco, 2023)

 VISION
Recognized as Vietnam's
premier beverage group
Extend prominence to
regional and global markets
(Sabeco, 2022)
MISSION
Propel Vietnam's beverage sector to global standards
Promote culinary heritage of Vietnam
Committed to quality, safety, and health in products
Inclusive success and intangible benefits for stakeholders
Business transparency and fulfillment of obligations
Active community participation, international integration
Meet international standards for food safety, hygiene, environmental protection
(Sabeco, 2023)
SABECO (Sabeco, 2023)
SALE PERFORMANCE
2022 net revenue: VND 34,979 billion; post-tax
profit: VND 5,500 billion
Growth of 32% in revenue and 40% in profit
compared to 2021
Highest profit levels ever achieved
Strong recovery trajectory and resilient business
strategies
Achievements and Recognitions (SABECO, 2023)
Accolades at the Asia Pacific Enterprise Awards
(APEA) 2022
Categories: "Corporate Excellence 2022" and
"Inspirational Brand Awards 2022"
Second consecutive year of recognition for
business achievements and sustainable value
(SABECO, 2023)
 SALE STRUCTURE
Geographic Structure: Sabeco has concentrated its distribution
system in the southern region while expanding to the north. Known for
resonating with Southern consumers, Sabeco leverages this strong
presence to tailor products and marketing to local tastes. The
expansion into the northern market also aligns with distinct regional
preferences, opportunities for growth, diversification, and building
robust connections with consumers throughout Vietnam (Capital
Youth Online, 2021)
 SALE STRUCTURE
Product Specialization Structure: Sabeco's
product-based sales structure offers a diverse
range of beer, alcoholic, and non-alcoholic drinks,
along with a focus on innovation (SABECO, 2022)
This broad portfolio caters to various tastes,
enhancing revenue streams and reducing reliance
on a single product line. The balance across
categories allows Sabeco to attract and retain
consumers, and also serves as a risk mitigation
strategy, potentially offsetting losses in one
category with gains in another (Zoltners et al.,
2009)
 SALE CHANELS
Wholesales Retailer

SABECO

DISTRIBUTOR End users

Bar,
Restaurant, etc.

Supermarket,
Mart, etc.
MODE OF SELLING
B2B
Channel Focus: B2B, specifically in the distribution of alcoholic beverages.
Market Leader: Sabeco's preeminence in this area.
Clientele: Includes wholesalers, retail chains (supermarkets, hypermarkets), major retail
outlets, bars, and restaurants.
Sales Cycle: Often longer; customized to suit complex needs like bulk purchases, contracts,
legal compliance, and special packaging/branding.
Relationship Building: Crucial in B2B channel.
Sabeco's Approach: Offers volume discounts, and detailed information about product
quality, manufacturing processes, and unique selling propositions (SABECO, 2022)
B2C
Channel Focus: B2C, targeting individual customers for personal consumption, parties, and
celebrations.
Sales Cycle: Relatively shorter compared to B2B.
Availability: Products accessible through supermarkets, local stores, and online platforms.
Marketing Approach: Emphasizes the experience of enjoying Sabeco's beverages and
connects them to Vietnamese culture and lifestyle.
Emotion-Driven Strategies: Utilizes visuals, stories, and local celebrities to create an
emotional connection.
Social Media & Influencers: Leveraged to reach a wider audience (SABECO, 2022).
SALE PROPOSAL
Bia Saigon has introduced Beer Saigon Coffee Infused Beer, blending Vietnam's renowned
coffee beans from the Central Highlands with local beer. Supported by Sabeco's expertise,
this innovative product honors the nation's cultural roots and contemporary tastes. More
than a novel experience for enthusiasts, this fusion represents a thoughtful move to
celebrate local culture and extend the legacy of a top Vietnamese beer brand.
SWOT
 SWOT
Strengths:
Large Market Share: SABECO is the leading beer brand in its industry, holding
nearly 40% of the market share.
Longstanding Brand: With over 145 years of history, SABECO has built deep
trust and a superior reputation as a pioneering brand in Vietnam's beverage
industry.
High-Quality Standards: Continuously improving products, demonstrating
stable pricing, and reducing stock are vital for maintaining its top position.
Modern Technology: Applying the latest technologies, SABECO produces
quality products and practices social responsibility, especially in minimizing
negative impacts on the environment (SABECO, 2022).
 SWOT
Weaknesses:

High Input Material Prices: Relying on foreign suppliers for quality materials

from Europe, Australia, and America results in higher costs, reducing profits

(SABECO, 2022).

Profit Outstripped by Competitors: Despite market leadership, SABECO's profit

after tax lags behind some competitors, like Heineken, whose profit was 40%

higher in 2019 (CafeF, 2021)

 SWOT
Opportunities:
Potential Domestic Market: Vietnam ranks highly in beer consumption in Southeast Asia,
offering vast market potential for SABECO (Thanh Nien Magazine, 2023).
Potential for Export Market: With ASEAN and China as strong export markets and
agreements like the EU-Vietnam Free Trade Agreement (EVFTA), export opportunities are
increasing (European Commission, 2019).
Threats:
SWOT
Alcohol Prevention Laws: Decree No. 100/2019/ND-CP, which fines road users
for drinking alcohol, had an immediate negative effect on Vietnam's beer
industry (General Statistics Office, 2023).
Fierce Competition: The entry strategic's competitors has maintained
SABECO market share, requiring planning to its leading position (CafeBiz,
2016).
High Taxation: With three types of taxes on alcoholic beverages, including a
sharp increase in special consumption tax, maintaining competitive pricing is a
significant challenge for SABECO (Labor Newspaper, 2022).
PEST
 PEST
Political
Taxation: Changes in excise taxes or import tariffs can directly impact Sabeco's
profitability (Labor Newspaper, 2022).
Licensing and Compliance: Adhering to various legal requirements related to
alcohol distribution, and advertising (The Library of Law, 2022).
Trade Agreements: Vietnam's participation in regional and global trade
agreements can influence Sabeco's export opportunities opportunities (European
Commission, 2019).
 PEST
Economic Factors:

Economic Growth: Vietnam's rapid economic growth can lead to increased

disposable income and, consequently, higher demand for Sabeco's products

(Government Online Newspaper, 2022).

Currency Fluctuation: Changes in the value of the Vietnamese Dong can impact

Sabeco's import costs and export competition costs (Thanh Nien Magazine,

2021).

Inflation and Interest Rates: These can affect consumer purchasing power and

Sabeco's borrowing costs costs (Online Portal of The Ministry of Finance, 2023).
 PEST
Social Factor

Health Consciousness: An increasing focus on health and wellness may decrease alcohol
consumption (Ngoc and Rieng, 2018).
Cultural Factors: Vietnam has a rich culture of beer consumption, especially among the
younger population, favoring Sabeco's market position (Thanh Nien Magazine, 2023).
 PEST
Technological Factors:

Innovation in Production: New technologies can help Sabeco improve production

efficiency, reduce costs, and enhance product quality (SABECO, 2022).
Digital Marketing: The use of social media and other digital platforms for marketing can
create new opportunities for Sabeco to reach customers (SABECO, 2022).
The strengths for this new product, as determined by PEST and SWOT
analyses, are multifaceted:
Innovation and Cultural Appeal
Large Market Share and Brand Heritage
Quality Assurance
Alignment with Local Preferences
Export Opportunities
Digital Marketing Opportunities
SELLING PROCESS
The Opening:
Introducing the Beer Saigon Coffee Infused Beer is the initial stage. This
innovative fusion of coffee and beer, which celebrates Vietnam's cultural
heritage, will be highlighted. Both the modern tastes and traditional values
it caters to are emphasized, with visuals or narratives that align the product
with local customs and lifestyles.
Need and Problem Identification:
The seller engages the customer in a conversation to discover their
preferences, tastes, and any dissatisfaction with current beverage options.
By focusing on the lack of variety and monotonous flavors in existing
offerings, the seller presents the Beer Saigon Coffee Infused Beer as a
unique and refreshing solution that fulfills the unmet needs.
Presentation and Demonstration:
In this stage, the uniqueness of Beer Saigon Coffee Infused Beer is
described in detail, emphasizing the quality of local ingredients and the
masterful blending process. The seller may offer a live demonstration
through a tasting session, where the customers can personally experience
the distinct flavor, further enhancing their interest in the product.
Need and Problem Identification:
The seller engages the customer in a conversation to discover their
preferences, tastes, and any dissatisfaction with current beverage options.
By focusing on the lack of variety and monotonous flavors in existing
offerings, the seller presents the Beer Saigon Coffee Infused Beer as a
unique and refreshing solution that fulfills the unmet needs.
Dealing with Objects:
Dealing with objections is a nuanced stage that includes four critical steps.
First, the seller supports and questions the customer to fully understand their
concerns. Next, the seller confirmed understanding by summarizing the issue
to ensure clarity. The third step is to address the concern directly, providing
reassurances about quality, taste, and the cultural alignment of the product.
Finally, the seller checks if there are any remaining objections, demonstrating
the customer is satisfied with the explanations given.
Negotiation:
During the negotiation phase, the seller discusses various pricing options,
bundles, or promotions that may be available, attempting to find the best fit for
the customer's needs. By negotiating terms that are significant to the
customer and aligning with their interests, the seller ensures a win-win
agreement, creating a positive and trusting relationship.
Closing the Sale:
This critical stage involves summarizing the unique selling points and value
proposition of Beer Saigon Coffee Infused Beer. The seller then confidently, yet
politely, asks for the sale directly, making sure the customer is satisfied with
both the terms and the product. This closure sets the stage for an ongoing
customer relationship.
Follow-Up:
After the purchase, the seller reaches out to the customer to express gratitude
and inquire about their experience with the product. By suggestive related
products or upcoming promotions and offering continued support, the seller
fosters a long-term relationship, demonstrates that the customer feels valued
and cared for even after the sale.
 REFERENCE
1.CafeBiz, 2016. The heroic group competes for the beer market: How are the 4 giants dividing the area?. [Online]
Available at: https://cafebiz.vn/quan-hung-tranh-ba-thi-truong-bia-4-dai-gia-dang-phan-chia-dia-ban-the-nao-
20161124150322891.chn
[Accessed 5 August 2023].
2. CafeF, 2021. Sabeco's revenue is increasingly being trailed by Heineken, the market share is larger but the profit is only half.
[Online]
Available at: https://cafef.vn/ve-tay-thaibev-doanh-thu-sabeco-ngay-cang-thut-lui-so-voi-heineken-thi-phan-lon-hon-nhung-lai-
chi-bang-nua-2021081316423239.chn
[Accessed 5 August 2023].
3. European Commission, 2019. EU-Vietnam Trade Agreement and Investment Protection Agreement. [Online]
Available at: https://policy.trade.ec.europa.eu/eu-trade-relationships-country-and-region/countries-and-regions/vietnam/eu-
vietnam-agreement_en
[Accessed 5 August 2023].
4. General Statistics Office, 2023. DOUBLE IMPACT OF COVID-19 AND DECREE NO. 100/2019/ND-CP ON BEVERAGE
MANUFACTURING INDUSTRY. [Online]
Available at: https://www.gso.gov.vn/du-lieu-va-so-lieu-thong-ke/2021/06/tac-dong-kep-cua-dich-covid-19-va-nghi-dinh-so-100-
2019-nd-cp-toi-nganh-cong-nghiep-san-xuat-do-uong/
[Accessed 5 August 2023].
 REFERENCE
5. Government Online Newspaper, 2022. Vietnam's economy is returning to the trajectory of rapid growth. [Online]
Available at: https://baochinhphu.vn/kinh-te-viet-nam-dang-tro-lai-quy-dao-tang-truong-nhanh-102220605145738745.htm
[Accessed 5 August 2023].
6. Labor Newspaper, 2022. Time to change the excise tax on alcoholic beverages?. [Online]
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1032997.ldo#:~:text=Theo%20%C4%91%C3%B3%2C%20gi%E1%BB%AF%20nguy%C3%AAn%20m%E1%BB%A9c,ph%E1%BA%A9
m%20%C4%91%E1%BB%93%20u%E1%BB%91ng%20c%C3%B3%20c%E1%BB%93n
[Accessed 5 August 2023].
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UNIVERSITY .
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[Accessed 5 August 2023].
 REFERENCE
8. SABECO, 2022. SABECO's Annual Report, s.l.: SABECO.
9. SABECO, 2023. SABECO's 2022 after-tax profit increased by 40%, reaching VND 5,500 billion. [Online]
Available at: https://www.sabeco.com.vn/truyen-thong/tin-tuc-su-kien/loi-nhuan-sau-thue-nam-2022-cua-sabeco-tang-40-dat-
5500-ty-
dong#:~:text=Ph%C3%A1t%20bi%E1%BB%83u%20t%E1%BA%A1i%20%C4%90%E1%BA%A1i%20h%E1%BB%99i,40%25%20so%2
0v%E1%BB%9Bi%20n%C4%83m%202021.
[Accessed 4 August 2023].
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degrees?. [Online]
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bao-nhung-yeu-cau-gi-ve-mat-noi-dung-1416.html
[Accessed 5 August 2023].
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Available at: https://wtocenter.vn/tin-tuc/21900-taking-advantage-of-opportunities-for-exports-to-china
[Accessed 5 August 2023].
 REFERENCE
12. SABECO, 2022. SABECO's Annual Report, s.l.: SABECO.
SABECO, 2023. Distribution System. [Online]
Available at: https://www.sabeco.com.vn/phan-phoi
[Accessed 5 August 2023].
13. SABECO, 2023. Introduction. [Online]
Available at: https://www.sabeco.com.vn/gioi-thieu
[Accessed 5 August 2023].
14. SABECO, 2023. SABECO's 2022 after-tax profit increased by 40%, reaching VND 5,500 billion. [Online]
Available at: https://www.sabeco.com.vn/truyen-thong/tin-tuc-su-kien/loi-nhuan-sau-thue-nam-2022-cua-sabeco-tang-40-dat-
5500-ty-
dong#:~:text=Ph%C3%A1t%20bi%E1%BB%83u%20t%E1%BA%A1i%20%C4%90%E1%BA%A1i%20h%E1%BB%99i,40%25%20so%2
0v%E1%BB%9Bi%20n%C4%83m%202021.
[Accessed 4 August 2023].
 REFERENCE
15. Thanh Nien Magazine, 2021. Vietnam Dong "increasing", good or bad?. [Online]
Available at: https://mof.gov.vn/webcenter/portal/ttncdtbh/pages_r/l/chi-tiet-tin?dDocName=MOFUCM207128
[Accessed 5 August 2023].
16. Thanh Nien Magazine, 2023. Vietnamese people are the top beer consumers in ASEAN, helping Saigon beer to record profits.
[Online]
Available at: https://thanhnien.vn/nguoi-viet-tieu-thu-bia-hang-dau-asean-giup-bia-sai-gon-lai-ki-luc-185230201085007138.htm
[Accessed 5 August 2023].