P & T Group

2. Place solution

 

a. Current distribution channel in Habeco

 

- Up to 2012-2013, HABECO has about 500 agents around Vietnam. Remarkably notice is that of 500 agents, 460 agents locate in North and North Coast Central (from Quang Binh upward), accounting for 92%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

b. Alternative analysis

One of the alternatives that we recommend is to expand HABECO’s distribution channel while current market seems to be in mature period. South-eastern region is good place for expansion, focusing on 4 provinces with priority order: Binh Duong, Dong Nai, Vung Tau and HCMC

Why is that?

- South-eastern area is the most developed area in VN, contribute more than 60% of total country expenditure, urbanization rate: 50%

- We ultilize existing HABECO’s factory in Ba Ria – Vung Tau, a province in South eastern region. The joint stock company Hanoi - Vung Tau Beer between HABECO and Carlsberg was founded in 2007, located in My Xuan A Industrial zone, Tan Thanh Ward, Ba Ria – Vung Tau province. The other provinces are circulated within 150km far from Vung Tau. This way can save transportation cost.

- We priority in Binh Duong, not HCMC although HCMC is the biggest city with crowdest population, because the ration of labor over 15 years in Binh Duong is the highest with 64.9%. we assume that all workers over 15 years can drink beer; moreover Binh Duong is also location centralizing by many industrial factories with middle class workers – HABECO’s target customers

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost analysis

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost for this solution is about 10.4 billion