Anchor brand audit and potential for future growth in north Vietnam | |
| Author | Vu Thi Tuyen |
| Subject(s) | Beer industry--Vietnam Branding (Marketing)--Vietnam |
| Note | A project submitted in partial fulfillment of the requirements for the Degree of Master of Business Administration (Executive) in International Business – Management of Technology, School of Management |
| Publisher | Asian Institute of Technology |
| Abstract | Vietnam’s beer industry has undergone major developments over the past decade, thus leading to significant increases in production and consumption. With over 400 beer factories around the country, a market size of USD 2.3 billion 1 and total estimated beer output of 1.8 billion liters in 2008 2, Vietnam’s beer production levels increased at a CAGR of 18% between 2002 and 2007. Even though the market remains underpenetrated relative to European and Asian counterparts (15.8 liters per capita in consumption in 2008 3), beer consumption is expected to grow rapidly, reaching nearly 28 liters per capita (2.5 billion liters). Furthermore, the Ministry of Industry is aggressively promoting production capacity expansion with the objective of attaining output levels of 40 liters per capita per year (3.5 billion liters) by 2010 4 . Economic prosperity, driven by strong GDP growth and healthy disposable income trends, has fueled demand for consumer packaged goods such as beer. Hatay Brewery Limited (HBL), a brewer of Heineken and Tiger is having a strong position at the premium segment; accounted for 85% of market share, however the growth rate of this segment is limited (3-4% per annum). The mainstream segment, the second largest consumption has been dominated by Hanoi Beer and Beverage Company (Habeco) with Hanoi beer for a long time. Thus HBL was ambitious to achieve a certain success and grow its presence at this profitable segment. In late 2004 Anchor brand was launched with very high expectation from the company, but in past 5 years Anchor performance is below expectation. HBL also realized that success in mainstream, growing volume and share is vital to a sustainable position in the market. HBL decided to gradually drop this brand after the substitute of Biere Larue proves a strong position in the market. The fact is that nowadays a lot more foreign breweries are entering Vietnam beer market while local brewers are becoming more professional in sale and marketing. The competition is getting fiercer and fierce in big cities where the two big players; Saigon Beer and Beverage Company (Sabeco) and Hanoi Beer and Beverage Company (Habeco) show the dominance. Biere Larue originally comes from the central Vietnam and gained very high sale volumes in this region. The foreseen difficulty this brand would face in the North is the conservativeness of consumers. Biere Larue will take years to get the same position as Anchor’s today. With about 5 years of presence Anchor definitely has more opportunity to grow if the company changes the approaches. In this brand audit, the author aims to provide an overview about Anchor brand situation. The audit and assessment will be based on the survey with potential and current consumers. From the results, the author would like to propose potential and give recommendations for future growth of Anchor. |
| Year | 2009 |
| Type | Project |
| School | School of Management (SOM) |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (Executive) in International Business - Management of Technology (VN/BKK)) |
| Chairperson(s) | Beise, Rain; |
| Examination Committee(s) | Do, Ba Khang;Agendras, Evangelos; |