VIETNAM NATIONAL UNIVERSITY

HANOI SCHOOL OF BUSINESS AND MANAGEMENT

FACULTY OF MARKETING AND COMMUNICATION
----------

MID-TERM REPORT:

Topic:
Strategic Marketing Planning for Truc Bach Beer Product of Hanoi
Beer - Alcohol - Beverage Corporation ( HABECO ) [ 2025 – 2028 ]

Class: MAC03
Group: 10.1
Supervisor: Dr. Loi Duc Vu
Dr. Hung Quang Nguyen
Dr. Dung Dao Dong

Code: Member:
22080182 Nguyen Thach Thao
22080103 Pham Viet Quoc Anh
22080192 Vu Dieu Vy
22080150 Phan Thanh Mai Linh
22080125 Pham Ngoc Han

Hanoi, April 22_2025

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Pham Viet Quoc
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Anh
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completion:
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Pham Ngoc Han 22080125 Member 100%
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 TABLE OF CONTENT

Chapter 1: Introduction and Background …………...………………………………..4

1.1 Company Overview:HABECO……………………………………………….4

1.2 Strategic Business Unit: TRUC BACH BEER……………………………….5
1.3 Market Definition……………………………….……………………………..7

Chapter 2: Stituation Analysis….……………………………………………………….9

2.1 Internal Analysis…………………….…………...……………………...…… 5

2.2 Customer Analysis………………………………..………………………….13
2.3 Industry Analysis………………………………….………………………....15
2.4 Competitor Analysis………..………………………………………………... 6
2.5 Distribution Analysis……………………………………………..………….. 7

Chapter 3: Marketing Strategy…………………….…………………………………..18

3.1 SWOT model analysis………………………………………………………..18

3.2 TOWS Strategic Matrix Analysis……………………………………………19

References……………………………………………………………………………... 21

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CHAPTER 1: INTRODUCTION & BACKGROUND

1.1. Company overview: HABECO

Habeco (also known as HABECO, Hanoi Beer and Beverage Joint Stock Corporation) is a
beverage company headquartered in Hanoi, Vietnam. It is the third-largest beer company in Vietnam and
the owner of the Hanoi Beer and Truc Bach Beer brands. HABECO was established on May 16, 2003,
under Decision No. 75/2003/QD-BCN issued by the Minister of Industry (now the Ministry of Industry
and Trade), based on the restructuring of Hanoi Beer Company and its affiliated units. It was officially
reorganized to operate under the parent-subsidiary model according to Decision No. 36/2004/QD-BCN
dated May 11, 2004. The Corporation's main business activities include: the production and trading of
beer, wine, beverages, and packaging; the import and export of raw materials, supplies, equipment, spare
parts, auxiliary materials, and chemicals; as well as providing science and technology services, investment
consultancy, capital formation, development of raw material zones, real estate business, and other services
and industries in accordance with the law. Its total charter capital of the company is VND 2,318 billion,
with a total of 231,800,000 shares. Of these, the Ministry of Industry and Trade holds approximately 189.6
million shares, accounting for 81.79% of the charter capital, while Carlsberg Breweries A/S holds
17.34%.1

Products: In 2008, Hanoi Beer - Wine - Beverage Corporation was transformed into Hanoi Beer
- Wine - Beverage Joint Stock Corporation (HABECO). HABECO's head office is located at 183 Hoang
Hoa Tham, Ba Dinh District, Hanoi City. Currently, HABECO has 25 member companies with main
products: Hanoi draft beer, Hanoi bottled beer 450ml Red label, Hanoi Premium beer, Hanoi beer 450ml
Green label, Hanoi beer cans, Hanoi wine, Truc Bach beer

Core Values: HABECO believes that "Customer trust is the foundation of prosperity",
establishing customer satisfaction is the guideline in all activities and the foundation for habeco's long-
term success. This customer-centric approach drives their business decisions and strategic direction.

Tasks: HABECO's mission consists of two basic commitments. Firstly, they strive to preserve and
develop Hanoi Beer as an essential element of the culinary culture of "Trang An people" and the pride of
Hanoi. Secondly, they are dedicated to providing Vietnamese and foreign consumers with strict food
safety standards. Through a dual focus on cultural heritage and product excellence, HABECO maintains
its position as an important player in Vietnam's beverage industry while honoring its historical roots and
responsibility to consumers.

1.1.1. Corporate Organizational Structure:

1
Nguyen, V. A. (2022). Analysis of the development strategy of Hanoi Beer – Wine – Beverage Joint Stock
Corporation in the period of 2020–2025 (Master's thesis, National Economics University). Google Drive:
https://drive.google.com/file/d/1gvqDF1QZKpVMb81fHduXs0Qn-OSWTOcs/edit?pli=1

4
The governance model and management apparatus of HABECO are shown through the organizational
diagram as follows:

Habeco has 16 subsidiaries, 5 associate

companies, and 4 other affiliated companies. The
organizational model of the corporation is a
hybrid structure, combining functional and
divisional models, with a primary emphasis on
the functional model. The General Director is the
final decision-maker, acting upon approval from
the majority of shareholders in the Board of
Directors. The Deputy Directors and various
departments are responsible for advising and
assisting the General Director within the scope of
their functional responsibilities. However, the
Procurement Department and the Market
Figure 1: Organizational Structure Chart Department are also granted decision-making
(Source: HABECO Annual Report 2023) authority over branches and investment units. 2

1.1.2. Subsidiaries, Associates and Joint Ventures:

As of the end of the third quarter of 2022, Hanoi Beer Alcohol and Beverage Joint Stock
Corporation (Habeco) had 16 subsidiaries operating in various business sectors, located in the Northern
and North Central regions of Vietnam, with a total investment capital of approximately VND 990 billion.
Among these, several subsidiaries received investments worth hundreds of billions of dong from Habeco.
In addition, Habeco invested in six other companies through joint ventures, with a total capital contribution
of over VND 220 billion. Furthermore, Habeco holds shares in six associated companies, including: Hanoi
– Kim Bai Beer Joint Stock Company with VND 11 billion, Habeco Transportation Joint Stock Company
with VND 7 billion, Harec Investment and Trading Joint Stock Company with VND 25 billion, San
Miguel Yamamura Hai Phong Province Water Co., Ltd. with VND 43 billion, and Habeco Packaging
Company with VND 16 billion. Notably, Habeco also holds a 45% stake, equivalent to VND 135 billion
in Habeco Investment and Development Joint Stock Company, which has a charter capital of VND 300
billion.3 ( Appendix 1: )

1.2. Strategic Business Unit: TRUC BACH BEER

Strategic Business Unit (SBU): A semi-autonomous unit within a larger organization, with its own
mission, objectives, resources, and competitors, where strategic planning is conducted independently. 4

2
Hanoi Beer – Wine – Beverage Joint Stock Corporation. (2024). 2023 Annual Report [PDF document].
24HMoney. https://cdn.24hmoney.vn/upload/file/2024-2/2024-05-07/no-name-1715033461.pdf
3
Nguyen, H. P. (2022, December 14). The financial picture of the Habeco "family" with 16 members.
Messenger. https://www.nguoiduatin.vn/buc-tranh-tai-chinh-cua-gia-dinh-habeco-voi-16-thanh-vien-
204585493.htm
4
Pearce, J. A., & Robinson, R. B. (2013). Strategic management: Planning for domestic & global competition (12th
ed.). McGraw-Hill Education.

5
Overview:
“Truc Bach Beer” is a premium beer line produced by HABECO (Hanoi Beer – Alcohol – Beverage
Corporation), deeply imbued with the historical essence and cultural refinement of Thang Long, the
ancient capital of Vietnam. First introduced in 1958, Truc Bach is known as Vietnam’s first domestic
premium beer, distinguished by its delicate flavor derived from rare Saaz hops imported from the Czech
Republic and high-quality barley from Europe. After a period of absence from the market, the product
was reintroduced with a modern design and positioned in the premium segment, targeting beer
connoisseurs. In 2022, Truc Bach was honored as a National Brand, affirming its status in the market.
Truc Bach Beer has been identified by HABECO as a separate Strategic Business Unit (SBU) within the
premium beer market, targeting the middle and upper class. With independent components such as
operational structure, brand and product positioning, and its own market, Truc Bach asserts itself as an
autonomous unit with strong competitive capacity, a clear development goal, and promising market
expansion potential.

1.2.1. Analysis of the Strategic Business Unit:

I. Product Features

a) Truc Bach Standard

Type Specification Price Range Table 1: Product classification price of Truc Bach
Retail Can: 1 can*330ml 19,000 - 22,000 Beer ( Source: Authors’ compilation )
Price VND
Pack: 6 cans * 120,000 – Flavor Profile: Fragrant beer aroma, golden
Pack
330ml 150,000 VND yellow color, smooth and quick intoxication, rich
Price
yet refined taste. Alcohol content: 5.1%. Target
Case Carton: 24 415.000 -
Market: Middle to high-end consumers.
Price cans*330m 450.000 VND
Production: Made using high-quality imported
Crate Crate: 24 460,000 –
ingredients, brewed with European yeast
Price bottles*330ml 500,000 VND
fermentation methods for exceptional quality.

b) Truc Bach IPA Craft Beer

Specification Price Table 2: Product classification price of Truc

Type
Range Bach IPA Craft Beer ( Source:Authors’
Retail Bottle: 1 bottle * 80,000 - compilation)
price 330ml 100,000
VND Flavor Profile: Crafted from 100% malted
barley with special yeast strains and five premium
Pack Price Pack: 6 cans * 480.000 -
330m 530.000 hop varieties imported from the USA, Europe,
VND and Australia.Target Market: Ultra high-end
consumers. Alcohol Content: 6.5% (+/- 0.5%)

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 II.Market positioning strategy:Truc Bach maintains its intentional position as a high-end beer
that reflects the quintessence of Hanoi culture, aiming at the middle and high-end consumer segments.
The brand message emphasizes the slogan "Truc Bach - A beer masterpiece for connoisseurs",
highlighting its special qualities and its premium position in the beverage category.

III.Brand identity factors: With the main green color and logo on the silver packaging, Truc
Bach beer has a simple, recognizable design due to the minimalism in the product design style. The
National Brand symbol and the words "Proud to be a National Brand" The brand is associated with the
core values of excellence, sophistication, luxury and quality standards. Truc Bach's brand image represents
a modern male audience, with a confident style and appreciating experiences in a high-class lifestyle.

1.3 MARKET DEFINITION

1.3.1 Market Segmentation:
Criteria Segment 1: Regular Truc Bach Beer Segment 2: IPA Craft

Male – Female, average income, office Male – Female, higher income,

Demographics workers, factory workers professionals, young entrepreneurs

Age 25–50 years old 18–35 years old

Consumed during family gatherings, Enjoy discovering new products,

traditional parties, purchased at consume at bars, trendy events, shop
Behavior supermarkets online via e-commerce platforms

Prefer individuality, creativity, and

Prefer stability and tradition, tied to local innovation in flavor and packaging
Psychographics cultural values design

Table 3: Table of customer segments of Truc Bach Beer line ( Source: Authors’ compilation )

1.3.2 Target Market:

I. Based on Demographics:

Customer Characteristics & Consumption Competitors Potential Accessibility

Group Consumption Volume (Brands) Evaluation
Trends (Consumption
Capacity)

Stable income, ≈ 20 – 30
Men aged prefer traditional liters/year Heineken
High – Stable,
30–45, domestic beer with Frequency: 2–4 Silver, Tiger High
loyal
middle class strong taste, regular times/week => Platinum
consumption High

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 Love experiences,
≈ 15 – 20
Young prefer craft beer, Pasteur
liters/year
people (22– personalized Street, Heart Very high – New Medium –
Frequency: 1–2
30), Gen Z – products, of Darkness, trend High
times/week =>
Gen Y occasional or Local IPA
Medium
weekend drinking

≈ 5 – 10
Drink socially, liters/year Somersby,
Female office Medium – High
prefer light, nicely Frequency: 1–2 Strongbow,
workers (25– if well Low
packaged beer with times/month Sapporo
35) positioned
mild flavor => Low – Light
Medium

Not fixed,
Prefer local craft depends on stay Pasteur
beer, interested in duration Street,
Tourists Medium Medium
culture and Frequency: 1–2 Platinum,
experiences times/week => Biacraf
Medium – High

Table 4: Market Segmentation Based on Demographics ( Source: Authors’ compilation )

Calculation Formula: Annual Consumption (liters) = Monthly consumption frequency × Units
per occasion × 12months × Volume (liters)
Step 1: Estimated monthly consumption (cans/month)
Step 2: Estimated annual consumption (cans/year)
Step 3: Estimated annual consumption volume (liters/year)
Step 4: Reduce consumption by 30% ⇒ Conclusion
More details in:[ Appendix 1 ]

II. Based on Areas:

Summary Table of Post-Tax Profit of
HABECO’s Subsidiaries (By Regional
Branch)
Region Post-Tax Profit (Unit: million VND)
North 51,253

Central 1,444

South ……
Figure 2: Chart of Post-Tax Profit Proportion of
HABECO's Subsidiaries

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Based on post-tax profit data, the potential for revenue in the northern market is evident, especially in key
urban areas such as major cities: Hanoi (TM Bia Hanoi: 35.1%, Hanoi – Hong Ha: 23.9%), and other
cities with relatively high consumption markets: Hai Duong, Thanh Hoa, Hai Phong... (Hanoi – Hai
Duong: 8.5%, Hanoi – Thanh Hoa: 7.1%, Hanoi – Hai Phong and HABECO Hai Phong: 4.2%).

The Northeastern region contributes significantly to HABECO's profits (accounting for 90%),
demonstrating the parent company’s strong market presence in Northern Vietnam in both beer production
and commercial marketing activities. Meanwhile, the North Central region occupies a relatively small
proportion but has prominent business results in Nghe An (Hanoi – Nghe An: 9.4%), indicating
development potential. Overall, while the Central region is still experiencing slight losses in revenue, the
Northern region continues to maintain its market dominance.

1.3.3. Positioning

segment, currently accounting for about 13% of the

domestic market share, while major competitors
such as Heineken hold about 35–40%. Therefore,
Truc Bach's relative market share is about 0.325
(equivalent to 32.5%) However, this market is
entering a saturation period with a growth rate of
only about 2-3% per year. Meanwhile, Truc Bach
Craft IPA is a new product in the high-end craft
beer segment – a niche market with a relatively
positive growth rate, about 9%/year. However, this
product currently accounts for only about 3% of the
market share, compared to the leading brands
holding 20–30%, so the relative market share is
Figure 3: Product Positioning by BCG Model only about 0.1 (equivalent to 10%). From there,
(Source: Authors’ compilation) Truc Bach can be positioned in the "Dog" or
"Question Mark" area due to its low market share
In order to position Truc Bach beer and Truc Bach and slow market growth. Meanwhile, IPA Truc
Craft IPA in the BCG model, it is necessary to Bach Craft is also located in the "Question Mark"
analyze two main factors: relative market share and area, when participating in the growing market but
market growth rate. In order to position Truc Bach has not yet achieved a significant competitive
beer and Truc Bach Craft IPA in the BCG model, it advantage. Both products need the right investment
is necessary to analyze two main factors: relative and development strategy to improve their position
market share and market growth rate. Truc Bach in the market.
beer belongs to the popular and high-end lager

CHAPTER 2: STITUATION ANALYSIS

2.1 INTERNAL ANALYSIS

The internal analysis of Habeco and its Truc Bach beer product is conducted based on Porter's Value
Chain model and the Resource-Based View (RBV), in order to evaluate the company's internal activities
and core competencies.

5
 Figure 4: Value Chain Models

2.1.1. Primary Activities

I. Inbound Logistics

Raw Material Inputs for Truc Bach Beer Production

Vietnam’s beer industry depends heavily on declined. The proportion of recycled materials used
imported raw materials, especially malt and hops, in core products was 22.49%, down 0.13% from the
due to its unsuitable climate for growing high- previous year. The details are as follows:
quality barley. Each year, the country imports
Main
120,000–130,000 tons of malt, worth about USD 50 In 2022 Year 2023 Observe
Materials
million. To brew Trúc Bạch beer, Habeco sources
barley and hops mainly from the Czech Republic. In 2023, down
Malt: barley,
This reliance limits domestic producers' autonomy 16.314.317 14.619.640 10.4% compared
cereals (kg)
and raises production costs, squeezing profit to 2022
margins. On average, Vietnamese beer consists of In 2023, an
70% barley and 30% rice. Producing 1,000 liters of increase of
Rice (kg) 10.054.610 10.058.231
beer requires approximately: 0.04% compared
- About 400–500 kg of barley (approx. 15,000 to 2022
VND/kg), In 2023, down
- About 180–190 kg of rice (approx. 14,500 Sugar (kg) 2.103.300 1.414.796 32.7% compared
VND/kg), to 2022
- About 2 kg of flower-type hops (approx. 8,000 In 2023, it will
VND/g),along with water, yeast, and other Hoa Hublon decrease by 5.9%
24.293,85 22.864,80
auxiliary ingredients. (kg) compared to
2022
In 2023, raw materials made up about 80% of the
cost per liter of beer, leaving HABECO with a Table 5: Report on the amount of raw materials
profit margin below 20%. Due to a 6.74% drop in produced by HABECO
production compared to 2022, raw material usage (Source: Authors’ compilation)
at the Me Linh and Hoang Hoa Tham plants also

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II. Operations

a. Truc Bach Beer Production Technology

- The brewing system and brewhouse are imported from Germany, with a capacity of 100 million
liters per year. The brewhouse is equipped with an independent CIP (Clean-in-Place) system.
- The water supply and filtration systems are modern and fully automated.
- Two newly installed bottling lines have a capacity of 30,000 bottles per hour.
- The fermentation system, also from Germany, has a capacity of 50 million liters per year.
- The CO₂ recovery system is from Denmark.
- The canning and bottling lines (for cans and bottles) are from Germany, with respective capacities
of 7,500 cans per hour and 150,000 bottles per hour.
- The cooling system is from Japan.
- The oil-fired boiler system is from Taiwan, with a steam output of 10 tons per hour.
- The wastewater and solid waste treatment system is from Germany.

The production process is based on German equipment and technology and is certified under the integrated
management systems for Quality, Environment, and Food Safety, including ISO 22000 : 2005, ISO 9001
: 2000, and ISO 14001: 2004.

b. Production Volume And Cost

Production capacity: Habeco has a total capacity of 800 million liters per year, primarily from
six factories in Northern Vietnam. This indicates that the company maintains stable production, but the
scale is significantly smaller compared to its major competitor Sabeco, which has a capacity of 2.2 billion
liters per year and 26 plants across the country (GlobeNewswire, 2025). This demonstrates a limitation in
Habeco’s production scale, making it challenging to expand market share, particularly outside the
Northern region.

Production costs: These have increased due to higher input material prices, particularly with
barley prices rising by 15% in 2023 (Retail News Asia, 2019). This directly affected the gross profit,
which was only 267 billion VND in the first quarter of 2024, an increase of 9% compared to the same
period last year (VietnamNews, 2024). Although there was growth, this figure still reflects strong cost
pressure, reducing profit margins. Given the reliance on imported processes and materials, the production
cost of Truc Bach beer is higher than that of more popular products like Hanoi Beer, lowering its price
competitiveness in the premium segment.

III. Outbound Logistics:

Revenue by Region: Habeco has a strong distribution advantage in the North, accounting for 70%
of total revenue, followed by the South with 20%, and other regions at 10% (GlobeNewswire, 2025) 5.
However, in the Southern market, revenue only contributes 20% of total revenue (Vietnam Insider, 2023).

5
VietnamCredit. (2024, February 23). Sabeco losing market share in Vietnam’s beer
industry. https://vietnamcredit.com.vn/news/sabeco-losing-market-share-in-vietnams-beer-industry_15078

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Habeco's national market share was 7.4% in 2021 (The Investor, 2023)6, but in the South, it is estimated
to be only around 5–7% based on the revenue proportion. This indicates that Habeco is missing out on a
large market, where Sabeco holds a market share of approximately 33.9%, and Heineken leads with 44.4%
(vietnamcredit.com.vn, 2023).

Distribution Channels: Truc Bach is mainly distributed through high-end restaurants and bars in
Hanoi (The Shiv, 2025), with an estimated 60–70% coverage in this segment in Hanoi due to its premium
positioning. However, its coverage in modern trade channels like supermarkets is only estimated at 5–
10%, and e-commerce below 5%, which is very limited (The Investor, 2023). This reduces Trúc Bạch’s
accessibility, especially outside Hanoi.

Figure 5: Aggregated charts (Source: Authors’ compilation)

Marketing & Sales: HABECO increased spending on marketing, with selling expenses in the first
quarter of 2024 reaching VND 230 billion (up 13%), advertising and promotion expenses alone increased
by 42% to VND 105 billion. However, the efficiency was low, the profit after tax was negative VND 21
billion due to a decrease in financial income (Vietnam News, 2024). In 2023, HABECO will cut
advertising spending from VND 700 billion to VND 579 billion, causing brand awareness to decline amid
fierce competition with Heineken and Sabeco (VNBIS, 2024). Truc Bach, which is positioned as a high-
end beer, is not heavily invested in marketing, although it has changed its packaging in 2014 and 2018,
but it is not effective (The Investor, 2023; Vietnam News, 2018). This makes Truc Bach's brand
identification weak, making it difficult to compete with Heineken – accounting for 90% of the high-end
market share (TheInvestor.vn, 2023).

Service: Habeco lacks effective customer care programs, making it difficult to retain customers
(The Investor, 2023). There is no specific data on satisfaction levels, but the absence of loyalty programs
suggests Habeco does not focus on post-purchase experience. This affects customer retention, especially
as consumers tend to shift toward premium brands like Heineken. Trúc Bạch is also affected by this
limitation, failing to create lasting customer engagement.

2.1.2. Support Activities

Infrastructure: Habeco is still 81.69% state-owned (The Shiv, 2025). This indicates significant

6
The Investor. (2023, April 13). Vietnam beer market worth $12 bln: Heineken. https://theinvestor.vn/vietnam-
beer-market-worth-12-bln-heineken-d5721.html

12
government control, which slows down strategic decision-making, as seen in the prolonged divestment
process with Carlsberg (The Shiv, 2025). This delays innovation and hinders competition with private
rivals like Heineken.

Human Resource Management: As of 2024, Habeco has 515 employees. Among them, 52.9%
hold university or postgraduate degrees, followed by 38.3% with college or vocational qualifications, and
8.8% with elementary training or technical skills (PitchBook, 2025). This workforce size is small
compared to Heineken’s 3,000 employees in Vietnam, limiting the ability to implement large-scale
marketing and distribution strategies. This impacts Habeco’s operational effectiveness, particularly in
expanding the Southern market.

Technology Development: Habeco has expanded modern distribution channels such as

supermarkets and e-commerce (Tiki, Shopee, Lazada) since the Covid-19 period. However, the company
is slow in applying digital technology for customer data analysis and digital advertising, reducing
effectiveness in reaching younger customers (The Investor, 2023). This is especially disadvantageous as
Heineken uses digital technology to increase its Shopee conversion rate by 35% (interlogistics.com.vn,
2024).

Procurement: Habeco is affected by rising input material costs, with barley prices increasing by
15% in 2023 (Retail News Asia, 2019). Although it has the advantage of sourcing local materials, Habeco
still depends on imported raw materials, increasing production costs and affecting profitability.

2.1.3. Resources and Core Capabilities (RBV)

Habeco’s revenue for the 12-month period ending December 31, 2024, was USD 314 million
(PitchBook, 2025). This is significantly lower than Sabeco’s revenue of VND 15.3 trillion in the first half
of 2024 (Vietnam News, 2024), indicating a smaller financial scale and limited capacity to invest in
marketing, distribution, and technological innovation. This makes it difficult for Habeco to compete in
the premium segment, where Trúc Bạch is trying to position itself.

Conclusion of Internal Analysis: Habeco has the advantage of production capacity (800 million
liters/year) and a strong distribution network in the North (70% of revenue), but faces many limitations:
rising production costs (barley prices up 15%), weak financials (loss of 21 billion VND in Q1/2024), and
slow technological innovation. Trúc Bạch, with good quality and premium positioning, suffers from high
production costs, limited market coverage (5–10% in supermarkets, below 5% in e-commerce), and lacks
an effective marketing strategy, reducing its competitiveness in the premium segment compared to
Heineken (90% market share). Habeco needs to optimize costs, expand modern distribution channels, and
invest in marketing to improve Trúc Bạch’s market position.

2.2 CUSTOMER ANALYSIS

2.2.1. Customer Segmentation

Demographics: Habeco's customers are mainly men and women, aged 25-50, with an average
income of 10-30 million VND/month, concentrated in the North (70% of revenue), the South (20%), and
the Central (10%) (GlobeNewswire, 2025). This figure shows that Habeco serves middle-aged, middle-
income customers with a strong presence in the North. Truc Bach targets younger customers, 25-40 years

13
old, middle-high income of 15-50 million VND/month, mainly in Hanoi (The Shiv, 2025). Income is
assumed based on Truc Bach's high-end positioning, showing that the product is aimed at customers with
higher spending power, living in big cities.

Psychology: Habeco's customers love traditional beer, associated with the culture of drinking beer
at bars, with 77.3% of Vietnamese men consuming alcoholic beverages, twice the world average (Vietnam
Briefing, 2018). This figure reflects the popular beer consumption habit during social exchange occasions,
in line with Habeco's positioning. Truc Bach's customers are looking for high-quality, culturally iconic
beer, willing to pay higher prices. Sales of premium beer will increase by 20% in 2024 (Astute Analytica,
2025), showing that the trend of consumption of premium beer is increasing, but Truc Bach has not taken
advantage of this trend due to low brand recognition.

Behavior: Habeco's customers consume an average of 43-46 liters of beer/person/year (Astute

Analytica, 2025), equivalent to 130-140 cans of 330ml, with a frequency of 2-3 times a week (assumptions
based on beer drinking culture). Total beer consumption in Vietnam will reach 3.8 million kiloliters
(GlobeNewswire, 2025), showing that Vietnam's beer market has great potential, but Habeco only
accounts for 7.4% of the market share (The Investor, 2023). Truc Bach's customers consume less
frequently, estimated 1-2 times a week (assuming based on high-end positioning), with a selling price of
40,000-50,000 VND/330ml bottle at the restaurant (The Shiv, 2025). This shows that Truc Bach targets
special consumption occasions, but the low frequency reduces sales.

2.2.2. Customer Journey

Awareness: Customers know about Habeco through television and word-of-mouth advertising,
but brand recognition decreases due to competition from Heineken (44.4% market share) and Sabeco
(33.9% market share) (theinvestor.vn, 2023). Truc Bach has low brand recognition, mainly through word
of mouth and at high-end restaurants in Hanoi (The Shiv, 2025), limiting its ability to attract new
customers.
Consideration: Customers choose Habeco because of its reasonable price (20,000 - 30,000
VND/330ml can, The Shiv, 2025) and familiar taste, but it is easier to switch to high-end brands when
income increases. Truc Bach is priced at 19,000-22,000 VND/bottle, lower than Heineken (20,000
VND/bottle, The Shiv, 2025), but competition from Heineken and craft beer reduces the appeal.
Purchase: Habeco's customers mainly buy at pubs, with Habeco selling 717.4 million liters of
beer in 2016 (Vietnam Briefing, 2018). The e-commerce channel is growing, but has not been exploited
effectively (The Investor, 2023). Truc Bach is mainly sold at high-end restaurants (The Shiv, 2025), with
very limited coverage at supermarkets (5-10%) and e-commerce (less than 5%), reducing customer
accessibility.
Post-Purchase: Habeco lacks a loyalty program, leading to a low return rate (The Investor, 2023).
Truc Bach also does not have a re-engagement campaign, which reduces customer engagement, although
the quality of the product can be appreciated.

2.2.3. Client Lifetime Value (CLV)

Habeco: A customer consumes an average of 43-46 liters/year ( 130-140 cans of 330ml, Astute
Analytica, 2025), at a price of 25,000 VND/can ( The Shiv, 2025 ), equivalent to a revenue of 3.25-3.5
million VND/year. With a retention rate of 60% ( assuming based on industry trends ), CLV in 5 years is
3.25 million VND x 5 x 60% = 9.75 million VND/customer. This figure shows that Habeco's customer
value is relatively low, due to the high retention rate and strong competition from other brands.

14
 Truc Bach: A customer consumes an average of 50 bottles/year (assuming based on frequency 1-
2 times/week), at a price of 45,000 VND/bottle (The Shiv, 2025), equivalent to a revenue of 2.25 million
VND/year. With a retention rate of 50% ( hypothetical ), CLV in 5 years is 2.25 million VND x 5 x 50%
= 5,625 million VND/customer. Truc Bach's CLV is lower than Habeco's due to low consumption
frequency and strong competition in the high-end segment.

CONCLUSION
Customer Analysis Conclusion:

Habaco's customers (25-50 years old, income 10-30 million VND/month) are loyal to traditional brands,
consuming an average of 43-46 liters/year, but it is easy to switch to more high-end brands when income
increases, with CLV 9.75 million VND in 5 years. Truc Bach targets young customers (25-40 years old,
income 15-50 million VND/month), but low brand recognition, limited coverage (supermarkets 5-10%,
e-commerce less than 5%), and CLV only 5,625 million VND in 5 years, due to low consumption
frequency and strong competition from Heineken (90% high-end market share). Habeco needs to build a
loyalty program and increase modern channel coverage to improve retention and customer value,
especially for Truc Bach.
Customer Analysis shows that Habeco's customers are loyal but easy to switch to high-end brands, with
CLV 9.75 million VND in 5 years. Truc Bach targets young customers, high income, but low brand
recognition and only 5,625 million VND, due to limited coverage and strong competition. Habeco needs
to invest in marketing, expand modern distribution channels, and improve customer experience to increase
market share and customer value, especially for Truc Bach in the high-end segment.
2.3 INDUSTRY ANALYSIS: DEFINE THE EXTERNAL FACTORS
2.3.1 Market Size:
Vietnam's beer market in 2023 reached 3.8 million reflecting a decline in consumption. However, the
kiloliters, accounting for 2.2% of global divergence takes place strongly between segments.8
consumption, ranking first in ASEAN and third in
Asia after China and Japan. The Vietnam’s beer
market is dominated by Sabeco, Habeco, Heineken,
and Carlsberg. Heineken Vietnam operates
Southeast Asia’s largest brewery in Vung Tau (1.1
billion liters/year), while Sabeco runs 26 factories
with a total capacity of 2.2 billion liters, exporting
to 30 countries.7 By 2024, there will be a marked
divergence in the picture of Vietnam's beer
industry. According to data from the General
Statistics Office, the cumulative beer production in
the first 11 months of 2024 reached 4,059 million Figure 6: Vietnam Beer Market Size
liters, down 2.1% over the same period in 2023, (Source: Astuteanalytica )

7
VnBusiness. (2023, December 11). Vietnam's beer market: The $14 billion track and the game of the big guys.
https://vnbusiness.vn/thi-truong/thi-truong-bia-viet-nam-duong-dua-14-ty-usd-va-cuoc-choi-cua-nhung-ong-lon-
1103826.html

8
Astute Analytica. (2025). Vietnam Beer Market Size, Share | Growth Report
[2033]. https://www.astuteanalytica.com/industry-report/vietnam-beer-market

15
 2.3.2. Market Share:

In the period 2013–2023, Sabeco's market share

has plummeted from 42.0% to 34.4%, mainly due
to stiff competition from foreign beer businesses
and a shift in consumer trends towards higher-
end products. Heineken has taken advantage of
this trend to expand its market share, reaching
43% in 2023, surpassing Sabeco and becoming
the leader in the Vietnamese beer
market.Meanwhile, HABECO, concentrated
mainly in the Northern region, holds an 7,5 %
market share in 2023, ranking third after
Heineken and Sabeco. However, this business is
Figure 7: HABECO's beer market share having difficulty competing with international
showing a declining trend from 2018 to 2023 competitors due to limitations in product
( Source: Euromonitor ) innovation and marketing strategies.9

2.3.3. Market Trends:

(1) Vietnamese consumers tend to consume more beer products in the high-end segment: The increase in
average income makes consumers tend to switch to using more high-end beer products. Proof of this is reflected in
the strong growth and rise to the leading position in market share of Heineken Vietnam (with beer production in the
high-end segment accounting for 86% of the average consumption structure) in the period 2013 – 2023. In
particular, the market share of Heineken's premium beer brands recorded high growth, as of 2022, Heineken's
premium segment beer production accounted for 37.6% of the total beer consumption outside the market (higher
than 21.4% in 2013) . On the other hand, according to a survey by AC Nielsen at the end of 2022, up to 88% of
beer drinkers are willing to pay more for better quality products.

(2) Vietnam's beer consumption in 2023 recorded a downward trend, reflected in the decline in revenue of 3
beer enterprises (accounting for about 86.5% of the market share of Vietnam's beer industry in 2022 by volume)
in the face of the dual impact of (i) consumers tightening spending and (ii) tightening the handling of violations of
alcohol concentration when participating in traffic according to Decree 100. 10

(i) Consumers tightened spending due to a continuous decline in consumer confidence from
06/2022 (according to Infocus Mekong Research, T01/2024). The 2023 mid-year survey showed that 27%
had their salaries or working hours reduced, more than 54% were concerned that their income would be
affected. Current income and negative future expectations caused non-essential spending to decrease (only
34%, down 6.0 ppt YoY).
(ii) The tightening of alcohol concentration violations according to Decree 100/2019/ND-CP is
clearly reflected in 2023 with more than 770 thousand cases handled, 2.5 times higher than in 2022. The

9
Phạm, N. (2024, 5 tháng 9). SABECO: Vì sao trong input cost pressure. FPT Securities Joint Stock
5 năm đánh mất 8% thị phần? Marketing Nhà Company
Hàng. https://marketingnhahang.com/sabeco-vi-sao- (FPTS). https://file.fpts.com.vn/FileStore2/File/202
trong-5-nam-danh-mat-8-thi-phan/M 4/05/09/NewsUpdateReportSABMay2024_4e50e55
10
Nguyen, T. T. T. T. (2024, May 9). News update c.pdf
report: SAB – Profit recovery is slow due to high

5
impact on beer consumption became obvious when normal life returned after the epidemic and the
Ministry of Public Security strengthened handling, drastically building the habit of "drinking alcohol and
not driving".

(3) Foreign beer enterprises have increased the launch of a series of high-end products with a variety
of flavors: In the period of 2018 – 2023, foreign beer enterprises, especially Heineken, have continuously
launched high-end beer products such as Heineken Silver with low alcohol content, Heineken 0.0 alcohol-
free, Tiger Platium from wheat combined with orange peel notes,... Heineken's premium beers with a
variety of flavors provide consumers with outstanding and unique taste experiences. According to
Euromonitor, Heineken ranks 2nd in the top best-selling beer businesses in the world with a market share
of 12.6% in 2022 (only behind AB InBev in terms of market share). On the other hand, according to the
survey "Alcohol Consumption Habits of Vietnamese People" by Q&Me Market Research in 2021, the
two beer lines Heineken and Tiger lead in the favorite beer brands of Vietnamese people.

For Habeco, in the period of 2018 – 2023, the business is also actively launching new products, but mainly
products that retain the old taste and improve packaging. On the other hand, although HABECO has
researched and launched high-end beer lines such as Truc Bach beer, IPA Truc Bach Craft,... However,
this segment accounts for a very small proportion of the consumption structure. HABECO's main beer
lines are mostly in the mid-end segment. Therefore, in the context of the trend of beer consumption outside
the market, there is a gradual shift to the high-end segment, which also has a negative impact on
HABECO's beer market share.

2.3.4. Porter’s Five Forces Analysis:

Element Assess Short Analysis

1. Internal Very SABECO, HABECO, Heineken, Carlsberg, Sapporo... are all

competition high competing for market share. In the period of 2023 -2024,
consumption will decline but the level of competition will not cool
down.

2. Threats from new Average The barrier to entry is high due to the investment in large technology
competitors lines, but there is still potential from domestic craft beer brands.

3. Supplier pressure Medium HABECO is partially self-sufficient in raw materials; Suppliers of

- Low water, malt, cans/bottles are quite common, with little bargaining
power.

4. Pressure from Tall Consumers are increasingly preferring quality, reasonable prices
customers and beautiful designs. The ease of rebranding puts downward
pressure on prices.

5. Risks from Tall Alcohol, non-alcoholic beverages, milk tea, and juice are attracting
substitute products young people – especially after Decree 100 and the trend of
"drinking responsibly".

More details in: [ Appendix 2 ]

17
 2.4. COMPETITOR ANALYSIS

Criteria Truc Bach Heineken 333 Tiger

( Habeco ) (Sabeco) (Heineken Vietnam)

Brand
illustration
(product
category)

Market Mid-high-end High-end – strong Cheap – medium Mid-to-high-end,

Position (concentrated in the coverage nationwide, price mass beer popular, and
North), mostly especially in the South accessible segment
traditional markets

Trademark Belonging to Hanoi Global, long-standing, Long-standing, International,

Beer – Wine – strong brand with an domestic tradition prominent in
Beverage Corporation international image Southeast Asia and
(Habeco), with Vietnam
historical and
traditional elements

Target Men from 30-50 years Middle and high class, Unskilled workers, Men 25–40 years old,
customers old, middle class and international visitors, elderly, low-middle young people, urban
above, tend to consume lovers of luxury lifestyle income workers middle class
traditional

Distribution Strong coverage in the Nationwide coverage: Nationwide, Nationwide, strong in

Network North, traditional supermarkets, concentrated in the cities and
channel & Habeco restaurants, bars, clubs South and rural areas restaurants/pubs
dealers, few in high-end
supermarket systems

Media & Weak, little digital Strong, innovative, sports Weak, mainly Strong in viral
Advertising activity or funding and event sponsorship traditional marketing campaigns, music,
sports

Price 14,000 – 18,000 22,000 – 25,000 9,000 – 12,000 7,000 – 20,000

VND/330ml bottle VND/can 330ml VND/can 330ml VND/330ml can

Brand Light, elegant, High-end, vibrant, Popular, popular Masculine, dynamic,

Image associated with Hanoi international close to young people

18
Truc Bach's superiority over other competitors:
The advantage of the Truc Bach brand compared to competitors such as Heineken, 333 or Tiger lies in its
clear cultural identity – associated with the image of Hanoi elegant, classic and traditional. As a long-
standing domestic brand of Habeco, Truc Bach owns high reliability and has a mild, easy-to-drink beer
taste, suitable for many ages. In addition, the average price is quite reasonable, which is also a strength
that helps the brand easily reach the general customer base but still want sophistication in the beer
experience.
The main campaign message this time focuses on highlighting the "Hanoi quality" in every sip of beer,
evoking local pride and cultural emotions. "Truc Bach – The taste of Hanoi beer, rich identity"
or "Touching the heritage – Enjoying the taste of Hanoi"=> The campaign aims to reposition Truc
Bach as a spiritual symbol, this is not just a consumer product, but a part of memory, a lifestyle imbued
with elegance, tradition

2.5 DISTRIBUTION ANALYSIS

Distribution channels Character Role with Truc Bach Assess

HORECA (Hotel- It is a place that strongly The key channel to Very

Restaurant- Cafe-Bar) consumes mid-to-high-end beers, position Truc Bach as a Priority
a place where the brand beer with "taste"
experience is good

Traditional Trade Wide coverage but focusing on Supporting to increase Not too
(Markets, Groceries) popular products, fierce price market coverage but much
competition not the focus priority

Modern Trade Modern consumer environment, Increase brand Priority

(supermarkets, suitable for office workers, people recognition and image
convenience stores) with good incomes building

E-commerce (Tiki, Strong post-COVID upward Long-term potential Priority

Shopee, Website) trend, especially in Gen Z funnel – need to
improve content
strategy

Exclusive distribution Strong network available in the Focus on training Very

channels/resellers North, fast and wide deployment salespeople & Priority
capability promoting upsells

Concludes:
In this campaign, Truc Bach should focus its budget and resources on 3 main channels:
HORECA (Creating a realistic brand experience, reaching the right target customer segment). ( Modern
Trade ) Supports building an elegant and sophisticated brand image. (E-commerce) Taking advantage

19
of online consumption trends and shocking sales programs to expand the Gen Z customer base. At the
same time, the HABECO agent channel will play a role in deploying on a large scale, supporting quick
access to the target market in the North – where Truc Bach has the best recognition.

CHAPTER 3: MARKETING STRATEGY

3.1 SWOT ANALYSIS

INTERNAL FACTORS INTERNAL FACTORS

S1. Market share has a strong competitive W1. The challenge for brands facing the
advantage thanks to its highly concentrated trend of shifting from popular to premium
market share and superior production capacity beer. The main market is still popular beer,
(800 million liters/year). depending on the low-cost beer segment,
S2. Habeco maintains a stable revenue base while the trend is shifting to premium beer
(314 million USD in 2024) and has a and craft beer. Major brands like Sabeco
traditional brand such as Truc Bach Beer that and Habeco have been slow to adapt to this
is deeply rooted in consumer culture. change.
S3. Strong distribution system in the W2. Businesses Face Pressure from
North Owns a tight and effective S W Rising Costs of Imported Materials. The
distribution network in the North, prices of malt,hops, and sugar have surged
contributing up to 70% of the company's total due to global market fluctuations. Many
revenue. businesses rely on imported materials,
resulting in increased production costs.
W3. Weak Market Share in Southern
Vietnam Habeco holds only 5-7% of the
market share in Southern Vietnam, even
though this region accounts for the majority
of beer consumption nationwide.

EXTERNAL FACTORS EXTERNAL FACTORS

O1. Consumer trends are shifting strongly T1. Increasingly stringent legal barriers are
towards craft beer with unique flavors, reducing consumption demand.The Law on
especially in major cities (Hanoi, Ho Chi Prevention and Control of Alcohol-Related
Minh City). Harm (2019) restricts advertising and
O2. Opportunity to develop distribution promotions. Decree 100/2019 enforces
channels in the beer industry through e- penalties for driving under the influence of
commerce platforms. alcohol.
E-commerce is growing at a CAGR of 7.46% O T T2. Young people are increasingly
(according to Astute Analytica). There is an embracing healthy lifestyles, leading to a
opportunity to expand distribution via e- decline in traditional beer consumption.
commerce platforms (Shopee, Lazada), Non-alcoholic beverages (tea, soft drinks,
deliveryapps, and social commerce channels. non-alcoholic beer) grew by 33.2%
O3. Beer demand in ASEAN and Asia (according to Nielsen IQ 2022).
remains stable, providing Sabeco with T3. High inflation is reducing consumers'
opportunities to expand exports despite facing purchasing power. Exchange rate
tariff challenges. fluctuations are impacting the cost of
imported raw materials.

20
 O4. Vietnam’s middle class is expected to T4. There is rising competition from both
account for 50% of the population by 2045 premium beer brands (Heineken, Asahi,
(according to the World Bank). Younger Budweiser) and local craft breweries
consumers (Gen Z, Millennials) are willing to (Pasteur Street, Heart of Darkness).
pay for high-quality, branded beers.
O5. Consumers are increasingly interested
in environmentally friendly products and
healthy lifestyles.

3.2 TOWS MATRIX ANALYSIS:

TOWS THREATS OPPORTUNITIES

STRENGTHS ST Strategy: Defense + Exploit SO Strategy: Attacking New Markets

- Promote R&D to develop low- - Expanding craft beer line (taking

alcohol, organic beer to meet legal advantage of Sabeco/Habeco brand).
regulations (Law 44). Develop high-end craft beer under sub-
- "Drink Responsibly" Campaign to brands (eg Truc Bach Craft)
Comply with the Law Deploying digital ecosystem (beer
- Alliance with local suppliers to ordering app, NFT gifts)
stabilize raw material prices

Increase digital marketing (KOLs, - Export to Middle East/Africa

social media) to compensate for (utilizing existing distribution system).
traditional advertising limitations.

WEAKNESSES WT Strategy: Optimize to Reduce WO Strategy: Paradigm Shift

Risk

Link with local suppliers to reduce - Cooperate with craft beer startups to
dependence on imported raw learn technology and diversify
materials. products.
Restructuring factory network to - Retrain traditional sales force on
optimize costs premium products

- Optimize supply chain (IoT, AI) to - Invest in online channels (own apps,
reduce logistics costs. livestream sales) to catch up with e-
commerce.

21
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1103826.html

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[2033]. https://www.astuteanalytica.com/industry-report/vietnam-beer-market
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22