Market entry strategy for supplying biogas technology to Vietnam Breweries
Nguyen Thi Huyen, Linh (2011)
Nguyen Thi Huyen, Linh
Lahden ammattikorkeakoulu
2011
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2011113016594
https://urn.fi/URN:NBN:fi:amk-2011113016594
Tiivistelmä
The purpose of this thesis is to find out business opportunities for foreign biogas technology companies in the target market-Vietnam breweries. The researcher ended up with recommendations on the most profitable market segments and appropriate market entry strategies.
Qualitative method was applied for conducting the research. The qualitative data consisted of observation and seventeen in-depth interviews with key stakeholders, information from clean technology conferences and webinars.
The results revealed that 160 out of 163 breweries in Vietnam have not utilized biogas yet. Three main reasons for not using biogas yet are heavy investment, technical concerns and unsuccessful cases in Vietnam. All respondents indicated that return on investment is the most essential criterion for decision making. Technically, biogas fluctuation, safety and harm to other equipment are prominent concerns. There are three giant beer producers in Vietnam, accounting for 95% of the market share, of which, the two state owned corporations are expanding most. Many breweries are planning to move their plant outside cities because of the decision 64/2003/QD-TTg.
The most profitable segments are breweries and subsidiaries from the two state owned corporations (segment 1), and other breweries with capacity of more than 20 million liters per year (segment 2). The researcher recommends two appropriate entry modes: turnkey project and BOT contract. Separate independent turnkey project is suitable for newly established breweries of segment 1 and segment 2. In BOT contract entry mode, the biogas company should cooperate with a local beer technology company to utilize their network. A single BOT contract is appropriate for older breweries in segment 2, while a series of BOT contracts fits those older breweries of segment 1 to take advantage of the same owner. The initial marketing access should be through the partner, Vietnam Biogas Association, Vietnam Beer - Alcohol - Beverage Association, publications of the Ministry of Industry and Trade, and online advertising.
Qualitative method was applied for conducting the research. The qualitative data consisted of observation and seventeen in-depth interviews with key stakeholders, information from clean technology conferences and webinars.
The results revealed that 160 out of 163 breweries in Vietnam have not utilized biogas yet. Three main reasons for not using biogas yet are heavy investment, technical concerns and unsuccessful cases in Vietnam. All respondents indicated that return on investment is the most essential criterion for decision making. Technically, biogas fluctuation, safety and harm to other equipment are prominent concerns. There are three giant beer producers in Vietnam, accounting for 95% of the market share, of which, the two state owned corporations are expanding most. Many breweries are planning to move their plant outside cities because of the decision 64/2003/QD-TTg.
The most profitable segments are breweries and subsidiaries from the two state owned corporations (segment 1), and other breweries with capacity of more than 20 million liters per year (segment 2). The researcher recommends two appropriate entry modes: turnkey project and BOT contract. Separate independent turnkey project is suitable for newly established breweries of segment 1 and segment 2. In BOT contract entry mode, the biogas company should cooperate with a local beer technology company to utilize their network. A single BOT contract is appropriate for older breweries in segment 2, while a series of BOT contracts fits those older breweries of segment 1 to take advantage of the same owner. The initial marketing access should be through the partner, Vietnam Biogas Association, Vietnam Beer - Alcohol - Beverage Association, publications of the Ministry of Industry and Trade, and online advertising.