INDIVIDUAL CONTRIBUTION RATE

Unit: Strategic Marketing Management

Class: …SMM-DH48ISB-05………………………………………………..
Group:
…3………………………….…………………………….………………………
……
Assignment: ……Assignment 3 - Final Marketing Plan Group Project: Proposal
Final Group Project 1………………………………….……

Individual contribution rate:

Contribution
No. Student full name Student ID Signature
rate (%)

1 Bùi Diệp Thảo My 31211024582 100 My

2 Nguyễn Tấn Phát 31221025090 100 Phát

3 Nguyễn Vũ Trọng Nhân 31221026805 100 Nhân

4 Hồ Hương Nghi 31221026519 100 Nghi

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So far our group has drafted Part 2 and Part 3 of the project. The company we have chosen is
Sabeco (Saigon Beer – Alcohol – Beverage Corporation), one of Vietnam’s leading beer
producers.

Part 2. Introduction of the Company

I.​ Company Introduction
Saigon Beer is the leading beer brand in Vietnam's beer industry with nearly 150 years of
history. As a key product of Saigon Beer - Alcohol - Beverage Corporation (Sabeco), this
brand has become an indispensable part of Vietnamese culture, symbolizing tradition,
craftsmanship and national pride. Sabeco is primarily owned by two major shareholders:
Vietnam Beverage (53.6%) and the State Capital Investment Corporation (36%).

II.​ Vision, mission, core values

Vision: Develop SABECO to become the leading beverage group in Vietnam, having a firm
foothold in regional and international markets.
Mission:
●​ Develop Vietnam’s beverage industry to keep pace with the world.
●​ Promote the culinary culture of Vietnamese people.
●​ Improve the quality of life by providing high quality, safe and
●​ healthy beverages.
●​ Bring practical benefits to shareholders, customers, partners, employees and society.
●​ Satisfy and meet the needs of beverages under the international food safety
standards “Food hygiene and safety and environmental protection”.
●​ Fulfill obligations to the State on the basis of transparency in business.
●​ Actively participate in community activities.
●​ Ensure the development towards international integration.

Core Values:

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 ●​ Traditional brand: The superiority of a traditional brand is built and confirmed over
time. Customers have many choices and are well taken care of. SABECO has become
a “top of mind” in the hearts of customers.
●​ Social Responsibility: The development of social responsibility is the tradition of
SABECO. The company provides society safe and useful products, and we always wish
to share and take responsibility for social work and environmental protection with
practical action.
●​ Cooperation for Mutual Benefits: Build "mutually beneficial" partnerships as the
basis for sustainable development and appropriate policies for long cooperation to
partner.
●​ Sticking: Sticking to a friendly, sharing environment. Where people are empowered
to learn, create and contribute to the joy of success.
●​ Continuous improvement: SABECO always dreams of rising, learning, creating, and
innovating to meet constantly changing needs. Continuous learning, creativity and
innovation is our style.

III.​ Business description

Established in 1875, Saigon Beer - Alcohol - Beverage Corporation (SABECO) has grown into
Vietnam's leading beer producer, boasting a rich heritage spanning nearly 150 years. The
company's flagship brand, Saigon Beer, holds a special place in Vietnamese culture,
symbolizing the generous spirit of Saigonese and the wealth of Southern Vietnam. ​

SABECO's commitment to quality and innovation is clearly demonstrated in the company's

diverse product portfolio, including:​

Category Description

Saigon Special Beer Made from 100% Yakima malt and hops imported from the
United States, using Dry Hopping technology to have a fresh,
refreshing flavor and characteristic aroma. ​

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 Saigon Export Premium Famous for its excellent taste achieved through natural
Beer
ingredients and slow fermentation technology.​

Saigon Lager Beer A trusted choice since 1992, delivering fun, fresh and captivating
flavors.

Saigon Chill Beer Brewed with deep cold filtration technology at -2°C, bringing a
refreshing feeling and a cool aftertaste that awakens the senses.

Saigon Gold Beer Premium lager beer with 5% alcohol, representing SABECO's
dedication to quality.

Lac Viet Beer Reflecting Vietnam's rich cultural heritage

333 Premium Export Lager beer with 5.3% alcohol content, famous for its unique
Beer
flavor and long tradition.

333 Pilsner extra Brewed with premium ingredients and European cold
smooth
fermentation techniques, delivering a uniquely smooth and
easy-to-drink flavor.

SABECO's dedication to excellence has been recognized both domestically and

internationally. The company has been honored to become the 351st member of the Berlin
Beer Academy, one of the cradles of global beer culture. In addition, SABECO has received
many prestigious awards for quality and innovation, bringing pride to Vietnam.​
With a strong distribution network, SABECO continues to expand its presence domestically
and internationally, bringing the unique taste of Saigon Beer to other markets such as
Germany, the United States, Japan, the Netherlands, etc. The company's commitment to
quality, innovation and cultural heritage has solidified the company's position as a leader in
the global beer industry.

IV.​ Company Performance

Sabeco has long been a leader in Vietnam’s beverage market, and together with Heineken
they hold a combined market share of 74% in 2023 (Figure 1). Known for iconic beers like

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Saigon Special and 333, Sabeco has earned strong consumer trust through its commitment
to quality and a rich tradition. Its reputation is reinforced by consistent wins at major
national awards, including the recent 2024 World Beer Awards, while its wide-reaching
distribution network ensures its products are available to many. According to its 2024
Annual Report, Sabeco recorded nearly 32 trillion VND (approximately $1.28 billion) in net
revenue and about 4.5 trillion VND (around $180 million) in profit after tax, reflecting a
modest 5% year-over-year increase. This solid financial performance has allowed the
company to invest in modernization and expand its market presence, even as competition
intensifies.

Figure 1. Vietnam beer market share (2018 - 2023)

However, despite these strong fundamentals, Sabeco’s market share has dropped from 42%
in 2018 to 33.9% in 2023. This decline can be attributed to competitors like Heineken and
Carlsberg, which are successfully capturing consumers with premium, innovative products.
Sabeco’s continued reliance on its traditional mid-range beers, along with price hikes
intended to counter rising costs, has not resonated well with younger, more dynamic
consumers. Moreover, the decline in beer consumption is not only due to fierce competition
but also reflects shifting consumer preferences in Vietnam. Increasingly, consumers are
prioritizing health-conscious and sustainable choices, leading to a growing demand for

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low-alcohol and non-alcoholic beverages. Additionally, economic pressures have driven
many to cut back on discretionary spending, further dampening beer sales.

Part 3: Market Analysis, Competitor Assessment, and Company Performance

Review
I.​ Market Analysis
Vietnam’s beer market remains one of the most dynamic in Southeast Asia, reflecting a
blend of strong cultural traditions, favorable demographics, and rising disposable incomes.
Recent industry data shows that Vietnam’s beer market was valued at US $7.89 billion in
2024 and is projected to exceed US $14.85 billion by 2033, representing a CAGR of 7.27%.
The market's growth is largely driven by a rising middle class, increasing disposable incomes,
and a strong beer-drinking culture. With over 60% of the population under 35, Vietnam has
a strong consumer base for beer consumption. User penetration in the Vietnam beer market
will be 1.7% in 2025 and is expected to hit 2.3% by 2029. Annual beer consumption stands at
approximately 3.8 million liters, underscoring the country’s position as a leading beer market
in Southeast Asia. Vietnam’s rising middle class and growing exposure to global trends have
fueled demand for premium and craft beers.

However, despite its strong domestic presence, Sabeco faces challenges in premiumization
and health-conscious trends. Vietnamese consumers are becoming more interested in
low-alcohol, organic, and healthier beer options, but Sabeco has not yet fully addressed this
demand. The volume of low-alcohol beers has surged by 35% in the year 2024, particularly
in major cities and modern channels, driven by heightened health concerns among
Vietnamese consumers. Additionally, the recent increase in excise beer tax to 65% has raised
beer prices by 20% year-on-year from 2026 and 2-3% per year afterward, making
affordability a key concern, especially in rural areas. Competitors like Heineken and Carlsberg
are also aggressively expanding their premium offerings, creating pressure for Sabeco to
innovate.

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 II.​ Competitive Landscape
Between 2025 and 2033, Vietnam’s beer market is expected to grow steadily, with a
compound annual growth rate (CAGR) of 7.27% []. Valued at about $9.2 billion [], this is a
competitive market with both local and international breweries investing heavily to increase
their share. The Vietnamese beer market is currently dominated by four major brands:
Heineken, Sabeco, Carlsberg, and Habeco. Together, they account for over 90% of the market
share. International brands such as Sapporo from Japan and AB InBev from Belgium have
also established themselves in major cities, primarily targeting premium consumers.
However, their market presence remains smaller compared to the dominant industry leaders
[].

Heineken leads the premium beer market in Vietnam, holding 43% of the market in 2023,
ahead of Sabeco’s 33.9% []. Strong brand recognition and extensive distribution network
have reinforced its dominant position. However, its higher prices might limit its appeal to
budget-conscious consumers, especially since people have been spending less after the
economic downturn []. On the other hand, Habeco is still a significant player in northern
Vietnam since it relies upon strong brand loyalty, consistently promoting the slogan
''Vietnamese people value Vietnamese goods'' []. However, as the firm primarily operates in
the mid-range and low-priced beer segments, its market share shows a notable decline,
especially when consumer preferences tend to shift towards premium beer options in recent
years []. Besides, expanding into the central and southern parts of the country is also
difficult for Habeco because Heineken and Sabeco already have strong positions there.
Carlsberg, from Denmark, holds 8% of the market, making it the fourth-largest beer brand in
Vietnam. Despite the challenging market, Carlsberg has seen growth, especially with its
premium beers such as 1664 Blanc and Tuborg. After over 30 years in Vietnam, Carlsberg has
built a strong presence in the central region, with its biggest brewery in Hue producing up to
360 million liters a year [].

As for Sabeco, this brand has a strong presence in the mainstream segment. Despite intense
competition from Heineken and other foreign brands, Sabeco has continued to grow. In late

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2024, it bought a 43.2% share in Sabibeco, raising its production to over 3 billion liters per
year, surpassing Heineken in production and further solidifying its market leadership [].

Positioning Map:

III.​ Segmentation, Targeting, Positioning

1.​ Segmentation

Traditional beer drinker Social urban drinker

Demographic: Traditional beer drinkers in Demographic: Urban social beer drinkers
Vietnam are mainly men, aged 30 to 45 include both men and women, between the
and have low to medium income. They are ages of 22 and 35, with average incomes.
often workers, manual workers or small They are mainly office workers, young
business owners, living in rural areas or businessmen or middle-class workers. They
small towns where beer is an integral part have disposable income and are more
of their social life. experimental with their beverage choices.
Psychologic: These consumers adhere to Psychologic: This segment sees beer as a
Vietnam’s traditional drinking culture, social and experiential product rather than
where beer is a social lubricant for just a beverage. They prefer trendy
gatherings at local eateries, roadside beer locations such as rooftop bars, craft beer
halls, and family celebrations. They pubs, and high-end restaurants, and they
prioritize taste and quality over premium gravitate towards premium beer brands
or international brands, with little interest that align with their lifestyle and social
in craft beer or imported alternatives. image.
Behavioral: These are common drinkers, Behavioral: Their behavior reflected
consuming beer several times a week, occasional drinking, mainly during social

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 especially after work. They are highly gatherings, after-work meetings, and
price-sensitive, selecting for the most networking events. They are
affordable and accessible brands. Their brand-conscious and willing to pay more for
brand allegiance is strong, and they rarely higher quality or craft beers.
switch to other beer brands

Premium & Imported Beer Consumer International consumers

Demographic: Consumers of premium and Demographic: International beer
imported beer in Vietnam are typically men consumers include both men and women,
and women aged 28 to 45, with middle to usually aged 25 to 50 years old, with middle
upper middle incomes. They are often to high-income levels. Many are beer
urban, expatriate and individuals with enthusiasts, expatriates, or Vietnamese
higher disposable incomes. immigrants who have memorable ties to
Psychologic: This segment places great their homeland. These consumers are
importance on health and quality, often frequently found in Vietnamese restaurants
preferring low-alcohol, non-alcoholic or abroad, Asian supermarkets, and specialty
organic craft beer over traditional lager. beer shops.
They view beer consumption as a gourmet Psychologic: Foreign consumers are
experience, focusing on unique flavors, attracted to Sabeco's unique Vietnamese
small batch brewing and international beer identity, branding, and flavors, appreciating
trends. it as an exotic or craft beer option.
Behavioral:Unlike other segments, these Meanwhile, offshore Vietnamese
consumers drink less often but are willing consumers associate Sabeco with nostalgia
to pay significantly more for high-quality, and national pride, often choosing it over
niche, or imported products. They often other mainstream brands to stay connected
consume beer on special events, business to their cultural roots.
events, and fine dining experiences. This Behavioral: International consumers are
segment is less price-sensitive and more willing to pay high prices for Sabeco beer
impacted by product packaging, premium because of its import and cultural appeal.
branding, and international reputation. The Vietnamese people abroad often look for
rising demand for premium and craft beers Sabeco products at ethnic grocery stores,
in Vietnam is a direct result of changing restaurants and online retailers. This
consumption patterns among high-income segment is less price sensitive and values
consumers. authenticity, branding, and availability.

2.​ Targeting
Sabeco employs a differentiated marketing strategy, offering a variety of products to meet
the needs of multiple customer segments.
Mass market consumers
Mass market consumers Sabeco targets general beer drinkers with affordable and popular
products such as Saigon Lager, Bia 333 and Saigon Chill. These products are distributed
through supermarkets, convenience stores and restaurants, ensuring widespread market
access.

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Young Urban Millennials & Social Drinkers
This segment is drawn to Saigon Chill, which features contemporary branding and innovative
brewing technology. Marketing efforts focus on social media, digital campaigns, and event
sponsorships to strengthen brand engagement.
Premium & High-Income Consumers
For this segment, Sabeco positions Saigon Gold, Saigon Special, and Export Premium as
high-end offerings, available in luxurious bars, fine-dining restaurants, and premium retail
outlets.
International consumers and overseas Vietnamese
Sabeco aggressively expanded into international markets such as Germany, the US, Japan
and the Netherlands, leveraging its Vietnamese heritage and beer craftsmanship to appeal
to both foreigners and beer lovers globally.

3.​ Differentiation
Sabeco’s success in Vietnam’s competitive beer market can be attributed to its ability to
differentiate itself in ways that resonate with customers, create perceived value for them
and achieve competitive advantages among rivals.
Differentiation Through Heritage and National Pride
As aforementioned, while there are intense competitions between one Vietnamese brand
and several foreign ones like Heineiken, Carlsberg,..., Sabeco still maintained its second
dominating position with more than 33% of market share. Sabeco is deeply rooted in
Vietnamese culture, with a history dating back to 1875 and Sabeco’s flagship brand, Saigon
Beer, is deeply tied to Vietnamese culture and history. This heritage creates a strong
emotional connection with local consumers, who view Sabeco as a symbol of national pride.
Many Vietnamese consumers prefer Sabeco’s beers because they feel a sense of cultural
identity and loyalty to a homegrown brand. The concept of "ethnocentrism" among
consumers, defined as the tendency to favor products that embody national cultural identity
(Vida & Fairhurst, 1999), is regarded as one of the most significant factors influencing
consumer purchase intentions. This emotional appeal is difficult for foreign beer brands to
replicate, giving Sabeco a sustainable differentiation in the market. An Iconic campaign could
be mentioned is the “63 gắn kết - 1 Tết sum vầy” that highlights the solid relationship of
Vietnamese people living in different regions with the design that contains the name and
local identity of each province.

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Differentiation Through the Sense of Reunion
Sabeco beer, particularly its flagship brand Saigon Beer, has successfully positioned itself as
more than just a beverage—it is a symbol of connection, togetherness, and celebration in
Vietnamese culture. In Vietnam, beer is deeply intertwined with social life, often consumed
during family gatherings, festivals, and celebrations, making it a key element of bonding and
relationship-building. Sabeco taps into this cultural context by emphasizing the emotional
and social aspects of drinking beer. Its advertising campaigns frequently depict scenes of
friends and family coming together over a bottle of Saigon Beer, using taglines like “Cùng
nhau, vui hơn” (Together, Happier) to reinforce the idea that its beer brings people closer.
During special occasions like Lunar New Year (Tet), Sabeco releases festive packaging that
celebrates family reunions and traditions, further solidifying its role as a facilitator of close
relationships.
Sabeco’s products are designed to enhance the experience of sharing and togetherness,
offering larger bottle sizes perfect for group gatherings and maintaining affordability to
ensure accessibility for a wide audience. The brand’s refreshing and easy-to-drink taste
profile makes it ideal for long, leisurely social occasions. Beyond its products, Sabeco
reinforces its association with reunions and relationships through sponsorships of cultural
festivals, sports events, and music concerts, which bring communities together. Its

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community engagement and CSR initiatives, such as supporting local businesses and
families, further strengthen its image as a brand that cares about relationships. By focusing
on cultural authenticity, emotional appeal, and local relevance, Sabeco differentiates itself
from competitors, positioning its beer not just as a drink, but as a bridge that brings people
together, making it an indispensable part of Vietnamese social life.

Differentiation Through Product Variety

Sabeco offers a wide range of products, such as Saigon Special, Saigon Lager, Saigon Export,
and 333 Beer, each targeting different consumer segments. Saigon Special appeals to
premium drinkers, while 333 Beer is more affordable and targets mass-market consumers.
This variety ensures Sabeco meets the needs of a broad audience. By offering products at
different price points and flavor profiles, Sabeco ensures it can compete in multiple
segments of the beer market. It allows Sabeco Beer to appear on any celebrating tables of
any family in Vietnam. And this supports two aforementioned values of national pride and
close relationship reunion.

4.​ Positioning
Sabeco’s positioning in Vietnam’s competitive beer market is built on its unique
differentiators: heritage and national pride, the sense of reunion, and product variety.
These elements collectively create a strong, emotionally resonant brand identity that

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appeals to Vietnamese consumers and sets Sabeco apart from both local and international
competitors. Below is how Sabeco’s differentiation translates into its positioning:

Positioning Through Heritage and National Pride

Sabeco positions itself as a symbol of Vietnamese culture and national pride. With a history
dating back to 1875, Sabeco’s flagship brand, Saigon Beer, is deeply tied to Vietnam’s
cultural identity. This heritage creates a strong emotional connection with local consumers,
who view Sabeco as a homegrown brand that embodies their national identity.
●​ Value Proposition: Sabeco is not just a beer; it is a celebration of Vietnamese
heritage and pride.
→ The customers do not buy beer, they buy their national pride.

Positioning Through the Sense of Reunion

Sabeco positions its beer as a catalyst for connection, togetherness, and celebration. In
Vietnam, beer is more than a drink—it is a social lubricant that brings people together
during family gatherings, festivals, and celebrations. Sabeco taps into this cultural context by
emphasizing the emotional and social benefits of its products.
●​ Value Proposition: Sabeco beer is a bridge that strengthens relationships and creates
memorable moments of joy and connection.
→ The customers do not buy beer, they buy happiness and reunion.

Positioning Through Product Variety

Sabeco positions itself as a versatile brand that caters to diverse consumer needs. With a
wide range of products like Saigon Special, Saigon Lager, Saigon Export, and 333 Beer,
Sabeco ensures it can serve different market segments, from premium drinkers to
mass-market consumers.
●​ Value Proposition: Sabeco offers a beer for every occasion, taste, and budget,
ensuring it can be part of any celebration or gathering.

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→ The customers do not buy beer, they buy chances to enjoy happiness and national
pride.

A beer company never wants to position its brand in the minds of consumers based
on the negative aspects that the product may bring, such as the ability to cause
intoxication or drinking to alleviate sadness. Instead, they focus on positive values like
connection, joy, and memorable moments that their product can bring to consumers
tied with the responsibility when using the products.
From the Positioning risks and errors Model (Hooley et al., 2020), the national pride
is the positioning strategy that differentiate Sabeco the most from its competitors.
While the Reunion and Product Variety value is still under-positioning and play a
support role to express the National Pride Value of the products.
⇒ Overall, the positioning strategy of Sabeco is quite sustainable and relevant but
needs to go beyond the boundaries to develop additional value to the customer for
intensive growth.

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