Hanoi Beer Case Study

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Table of Contents

Executive Summary

Part I. Company introduction
Hanoi beer, or Habeco is a famous brand in the Vietnamese beer industry. However, the beer might be only well known and widely consumed in the north of Vietnam. Established in 1958, through 57 years of development, Hanoi beer has become one dispensable part of Vietnamese capital’s culture and gain a numerous number of loyalty customers. Specially, in Hanoi market, Habeco dominates with 90 percent of market share.
The history of Habeco has a close link with Vietnamese Colonial era, especially French colonial period. The predecessor of the Corporation's Habeco Brewery named Hommel with the scale 30 employees, led by a Frenchman named Hommel established in 1890
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The reason for this success is that the company with their produced beer which work very smoothly, sometimes production is insufficient to meet demand, especially in high peak season. Currently, Habeco obtain 10% of Vietnamese beer market share, ranking 3rd nationally. In the northern market Hanoi beer products occupy the major part of the market.
The firm already expanded the market to more than 36 cities and provinces among 64 total provinces, with 1,000 wholesalers and nearly 5,000 restaurant, hotels contracted to provide Hanoi Beer as their main and exclusive drinks. Many years doing business has also provided Habeco a remarkable number of loyal customers.
Hanoi Beer has completed an intranet system for managing the operation, totally applied and conducted the ISO framework for product quality, environment friendly and maintain the clean and hygienic products for each
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The cost for marketing and promotion campaigns is stable, taking nearly 5.8% of total production cost.
2. Weaknesses
Currently, production capacity of Habeco is somehow not sufficient for market’s demand. Fortunately, the open of Vinh Phuc plant has covered major part of the gap.
Moreover, the cost for raw materials is relatively high, such as malt, rice, sugar, houblon…contribute half of component cost as imported materials. The company has not exploit the domestic resources to reduce the cost.
Habeco relies heavily on wholesalers, the network of retailers is not developed.
The traditional and popular products gained the major part, however the premium 330ml bottle, did not find the proper market share. Moreover, exporting from Hanoi Beer is quite undeveloped, due to the lack of manager’s attention and especially the poor foreign language’s skills of Habeco’s employees. Furthermore, Hanoi beer might also lack of advertising and online marketing, therefore the brand may miss the opportunities to promote its products to young adults in the north as well as other people in other parts of Vietnam.
3.

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