The beer industry in Vietnam is full of foreign corporations, which heavily compete with local businesses due to their excellent industry know-how and sophisticated marketing strategies. As a result, it has become more important for domestic businesses to come up with special marketing plans. The Beer-Alcohol-Beverage Corporation Saigon, based in HCM City, plans to invite Serbian tennis player Novak Djokovic for a promotional tennis game at a court in HCM City, costing the corporation $1 million. Shareholders, however, consider the company’s current marketing plan to be too large, especially in these hard times, and demand higher dividends with lower marketing costs.
Looking at SABECO’S figures in 2012, the total revenue was $25,600 billion, an increase of nearly 13% compared to 2011. In the first 4 months of this year, beer consumption reached 29% of the planned full year target with 400 million liters of Saigon Beer. Connsidering this data, the planned marketing expenses by the Chairman might be reasonable despite the shareholders’ demands for lowered marketing costs.
It is currently 5 times more difficult to sell beer than in previous years and considering the upcoming market entry of Anheuser-Busch InBev, that number is sure to rise. A Tennis star like Novak Djokovic will surely catch the attention of the media, and, in doing so, the Brand Saigon will be promoted in a way that will allow the company to continue to compete in the industry.
ANT Consulting