ASSIGNMENT 1

VN F&B MARKET

Vietnam’s food and beverage market was one of the most attractive markets globally (ranked 10th in
Asia) in 2019, as per BMI. Total sales of food and beverages reached US$41.7 million (+3.8 percent
YoY) in 2020.

Vietnam’s food and beverage market contributed 17 billion U.S. dollars to the gross domestic product
of the country while employing three million people in 2021.

Vietnam is Asia’s top beer consumer. The market was worth US$5.18 billion in 2015 and is expected
to be worth US$10.1 billion in 2025. However, the pace of growth is slowing. Annual growth between
2020 and 2025 is forecast to be 5.57 percent per annum, versus 8.75 percent per year registered in
2015–2019.

One of the most noticeable trends is the shift toward the consumption of low- and no-alcohol beers.

1. Political Factor ( bcham ) : Political factors significantly impact businesses since they
significantly shape the country’s economy and business environment.

GOVERNMENT SYSTEM

Vietnam is a one-party state where the Communist Party of Vietnam holds a monopoly on political
power. This has helped Vietnam experience relative political stability over the past few decades,
which has attracted foreign Hhytf and stimulated economic growth.

HUMAN g ISSUE
Human rights and freedom of speech are in very poor condition, according to a report by Human
Rights Watch from 2020.

Besides, the Communist Party of Vietnam also controls the country’s media, journalists, and media
platforms. It results in the censorship of all the controversial and critical news that is against the
government.
Corruption, bureaucracy, and authoritarianism are severe problems in Vietnam, especially corruption.
The government has been taking various steps to reduce corruption since 2016.

Recently, the number of crimes related to corruption and position was detected at 51.63% more.
However, there were some positive results when TI's report showed that in 2022, Vietnam increased
3 CPI points to 42 on a 100-point scale compared to 2021, (with 0 being the most corrupt and 100
being the cleanest).
Diplomatic Alliances:

Vietnam has established diplomatic ties with over 178 countries and participates in global
organizations such as the WTO, APEC, ASEAN, the UN, and the Non-Aligned Movement. Despite
improved relations with the United States over the past two decades, Vietnam still experiences
tension with China, especially over South China Sea disputes, potentially affecting political stability
and business operations.

Government Policies: Vietnam's government policies significantly influence its political environment .

Encourage economic growth : initiatives aimed at economic growth include tax incentives, investment
promotion, and infrastructure projects.

The government actively seeks foreign investment with policies offering tax benefits and streamlined
processes. Yet, foreign investors must contend with a complex regulatory framework and the
possibility of policy shifts that could affect their investments

2. Economic Factor (vvo)

The Vietnamese economy has undergone significant changes in recent years, transitioning
from a centrally planned economy to a more market-oriented system.

Vietnam's GDP has seen swift growth recently, becoming one of Southeast Asia's
quickest-growing economies. In 2022, it expanded by nearly 8%, surpassing the regional
average due to factors like foreign investment, exports, and domestic consumption. In the last
quarter of 2023, GDP is estimated to grow by 6.72% year-on-year, with an overall increase of
5.05% for 2023.

Moreover, Vietnam is a member of several regional and international trade agreements,

including the CPTPP ( Comprehensive and Progressive Agreement for Trans-Pacific
Partnership (CPTPP) is a free trade agreement and the RCEP ( Regional Comprehensive
Economic Partnership Agreement).

=>These agreements have lowered trade barriers and created new business
opportunities to expand into new markets.
 Figure: Average monthly income per capita in Vietnam from 2012 to 2022 by Statista

Income per capita: The average income per person per month in 2022 at current prices will
reach 4.67 million VND, an increase of 11.1 percentage points compared to 2021. 2022 is the
year of economic recovery and population growth.

Additionally, due to urbanization and rising incomes, Vietnam has a sizable and expanding
consumer market. As the country’s middle class expands, there is a growing demand for
high-quality goods and services, entertainment,..

=> Suitable for the opening of Stonegate pub

→ Serving the current needs and interests of young people nowadays.
 3. Social-cultural factors (Trúc)

One important social factor is Vietnam’s rapidly growing population. Besides, the growing demand
for entertainment and population growth can create new markets for goods and services. But, on
the other hand, it can also lead to increased competition for resources and talent.
Another important social factor in Vietnam is the country’s cultural values and traditions. Rich and
diverse cultural values in many regions can impact business activities. Such as how the business
interacts with customers and employees.
Though Vietnam has made massive economic progress over the years, there is a growing concern
about wealth distribution. The gap between the rich and the poor is very wide and growing further.
According to the World Bank Group, in 2023, an emerging middle class will grow rapidly in the
country and is expected to reach 26% by 2026.

Figure: Vietnamese market segmentation expense (million people) by Sourceofaisa

 4. Technology factors (Tu)
When Stonegate UK considers entering the Vietnamese market, several technological factors need
to be considered:

Digital Infrastructure: Assess the quality and coverage of Vietnam's digital infrastructure, including
internet connectivity and mobile networks, to ensure smooth operations and customer engagement.

E-commerce Landscape: Understand the development and potential of e-commerce platforms in

Vietnam, as well as consumer preferences for online shopping and payment methods like TikTok,
Shopee, etc.

Mobile Technology: Explore opportunities to leverage mobile technology to attract customers, create
loyalty programs, and offer convenient payment methods through QR codes like MMO and VNPay,
which will make customers prefer using the service.

Figure: Vietnam Market Research Report - Mobile payment usage in Vietnam 2020 by Q&Me
 5. Environment Factors (Hoang):

Environmental regulations in Vietnam and stringent requirements for service business operations aim
to enhance sustainability in business activities as well as environmental protection.

Climate considerations might affect the design and location of pubs, especially in regions with
monsoon winds or sudden temperature changes like Hanoi.

The increasing awareness and concern for environmental issues among Vietnamese consumers
could influence their service choices, with a preference for environmentally friendly beverages.
 6. Legal Factors (Hoang)

The licensing laws for serving alcohol and operating hours in Vietnam will have many differences
compared to other countries. Currently, in Vietnam, there are strict regulations on blood alcohol
concentration when consuming alcohol, so this will be a challenge for STONEGATE.

Labor laws, including the minimum wage, working hours, and conditions in Vietnam, will impact
Stonegate's human resource management.

Food safety and import regulations will affect the provision of the menu and the supply chain for
ingredients that Stonegate does not have available in Vietnam.

References:

https://swotandpestleanalysis.com/pestle-analysis-of-vietnam/
https://www.vietnam-briefing.com/news/vietnams-food-and-beverage-industry-market-trends-demogra
phics-consumer-preferences.html/
https://pestleanalysis.com/vietnam-pestle-analysis/#Political_Factors_That_Affect_Vietnam
https://xaydungchinhsach.chinhphu.vn/bo-truong-to-lam-so-vu-pham-toi-tham-nhung-chuc-vu-duoc-p
hat-hien-tang-5163-119231121130936209.htm
https://thanhtra.com.vn/quoc-te/chi-so-cam-nhan-tham-nhung-2022-viet-nam-tiep-tuc-tang-diem-thuo
c-nhom-nuoc-co-tien-bo-noi-bat-206757.html
https://pestleanalysis.com/vietnam-pestle-analysis/
https://www.gso.gov.vn/du-lieu-va-so-lieu-thong-ke/2023/05/thong-cao-bao-chi-ket-qua-khao-sat-muc-
song-dan-cu-2022/
https://www.howandwhat.net/pestel-analysis-vietnam/
https://opengovasia.com/vietnams-digital-infrastructure-evolution/
https://industrial.savills.com.vn/2023/03/development-of-e-commerce-in-vietnam/
https://www.trade.gov/country-commercial-guides/vietnam-environmental-technology
https://plf.vn/compliance-in-vietnam-regulations-on-the-environmental-impact-assessment-and-other-
business-responsibilities/
https://climateknowledgeportal.worldbank.org/sites/default/files/2021-04/15077-Vietnam%20Country
%20Profile-WEB.pdf
https://www.sourceofasia.com/rising-middle-class-in-vietnam-driving-new-trends-of-consumption/
https://tuoitrenews.vn/news/society/20240228/zerotolerance-needed-to-curb-alcoholimpaired-driving-i
n-vietnam-experts-policymakers/78487.html
https://www.vietnam-briefing.com/doing-business-guide/vietnam/human-resources-and-payroll/labor-l
aw
https://thuvienphapluat.vn/van-ban/EN/The-thao-Y-te/Integrated-document-08-VBHN-BYT-2023-Circu
lar-management-and-use-of-food-additives/586202/tieng-anh.aspx

why it is suitable ? beer culture

ASSIGNMENT 2

https://www.hofstede-insights.com/country-comparison/
HOW TO ADAPT PRODUCT TO SATISFY LOCAL MARKET
I. Power Distance (Tram)
The chart above illustrates the cultural identities of Vietnam and United
Kingdom based on the five dimensions. At first glance, it is evident that there is
a great difference between these two countries in most dimensions.

First of all, in terms of power distance ,Vietnam has a double score compares to
UK,70 and 35 respectively.

Vietnam: ( 70 )

- Traditional Vietnamese culture emphasizes respect for authority and

hierarchical relationships.
- Superiors are often highly respected, and there's a significant power gap
between leaders and followers.
 - Decision-making tends to be centralized, with authority figures making
important choices without much input from subordinates.
- It is more likely that in Vietnam inferiors prefer to be ordered than to be active.
Many investors value this specific trait. It comes in handy if an established
process is transferred to Vietnam.

United Kingdom: ( 35 )

- British society values equality, fairness, and meritocracy.

- Superiors are often seen as approachable, and hierarchical structures are less
pronounced compared to some other cultures.
- There's an expectation of open communication and relatively flat organizational
structures in workplaces.

Stonegate should establish a clear hierarchical structure within its Vietnamese

branches that respects the local structure that emphasis on authority and deference
to superiors. Training programs should be designed to accommodate the expectation
for clear instructions and guidance, allowing employees to execute their tasks
effectively within the established framework.

II. Individualism (Van)

Individualism is a type of culture under which people prefer to think for themselves
more than others and to act for the sake of their own interests instead of other groups
or communities.
UNITED KINGDOM - 76
The UK is a highly individualistic society, with a score of 76. The British value privacy,
self-reliance, and personal fulfillment. They prioritize taking care of themselves and
their immediate family over investing in society or their community. From a young age,
children in the UK are encouraged to think independently and discover their unique
purpose in life and how they can contribute to society. Personal fulfillment is seen as
the path to happiness

​VIETNAM - 30
Vietnam, with a score of 30, is a collectivistic society. Strong commitment and loyalty
to the family, extended family, and close relationships are highly valued. In collectivist
cultures, loyalty takes precedence over societal rules and regulations. These societies
emphasize strong relationships, where individuals feel responsible for the well-being
of their group members. Offenses in such societies lead to shame and loss of face.
Employer/employee relationships are viewed with moral significance, resembling a
family bond, and hiring and promotion decisions consider the employee's in-group
affiliation. Management in collectivist societies focuses on group dynamics.
In collectivist societies like Vietnam, assigning specific roles and
responsibilities to members is common. When opening a Stonegate pub in
Vietnam, collaborating with others to divide tasks such as management,
marketing, finance, and human resources can reduce individual burdens and
enhance the chances of success. Additionally, due to the country's high
collectivism and low individualism, new business models like Stonegate pub
often involve shared risks and profits among members through agreements and
consensus, fostering shared enjoyment and motivation in store development.

--> This can help create shared enjoyment and motivation for everyone in
developing the store.

III. Motivation towards Achievement and Success (Truc)

→ A consensus-oriented society is one where quality of life is the sign of success.

- Economic: both have rapid economic growth, a dynamic economy, and opportunities for
individuals to improve their standard of living and achieve success.
- Entrepreneurship:
+ The UK has a thriving entrepreneurial ecosystem, with numerous support networks,
funding opportunities, and a culture that celebrates innovation and risk-taking.
+ Vietnam has a burgeoning entrepreneurial ecosystem, with a growing number of
startups and opportunities for innovation. Making a positive impact and achieving
financial independence motivate aspiring entrepreneurs to take risks and pursue their
business ideas.
- Recognition and Status:
+ Success and achievement often bring recognition and social status to UK society.
+ Achieving success, whether in the form of professional accomplishments, academic
achievements, or contributions to the community, brings recognition and respect from
peers and society, motivating individuals to excel in their endeavors.
- Personal Fulfillment:
 Beyond material success, both British and Vietnamese individuals are motivated by the
pursuit of personal fulfillment and happiness. This may involve pursuing passions and
maintaining a healthy work-life balance

In both the United Kingdom and Vietnam, quality of life is viewed as a primary indicator of success in
consensus-oriented societies. Economically, both nations experience rapid growth and foster
entrepreneurial ecosystems. Success brings recognition and status, motivating individuals to excel
professionally and contribute to their communities. In these societies, success encompasses
economic prosperity, recognition, and well-being, reflecting a consensus-oriented approach where the
overall quality of life is paramount.
IV. Uncertainty Avoidance (Hoang)

United Kingdom: The UK has a score of 35 in Uncertainty Avoidance, which is

relatively low. This indicates that the British culture has a lower level of discomfort with
ambiguity and uncertainty. This suggests a society that is more accepting of new
ideas and willing to take risks, with a greater degree of flexibility in thought and less
reliance on rules and regulations to structure life.

Vietnam: Vietnam scores 30 in Uncertainty Avoidance, which is even lower than the
UK, suggesting that the Vietnamese culture may have a similar or slightly higher
tolerance for ambiguity and uncertainty. However, this score is close to that of the UK,
indicating that Vietnam may also be somewhat flexible and adaptable, which could be
beneficial when introducing new business concepts.

Since both countries have low scores in Uncertainty Avoidance, with Vietnam being
slightly lower, this suggests that Vietnamese society may be open to new business
ideas, such as a foreign pub chain like Stonegate. However, the specific business
model and practices should still be approached with cultural sensitivity to align with
local preferences.

V. Long Term Orientation (Hoang)

United Kingdom: The UK shows a score of 51 in Long Term Orientation, which leans
towards a pragmatic culture that encourages thrift and efforts in modern education as
a way to prepare for the future. This score is moderate, indicating a balance between
respecting tradition and adapting to new circumstances.

Vietnam: Vietnam has a higher score of 57 in Long-Term Orientation. This indicates a

more pragmatic and future-oriented society compared to the UK. Vietnamese culture
values perseverance, long-term investment, and is more likely to save and plan for
the future.

Vietnam's higher score suggests that Stonegate should adopt a long-term perspective
when entering the Vietnamese market. Business strategies should focus on long-term
growth and relationship building rather than expecting immediate profit. Stonegate
may need to invest time in building brand awareness and loyalty among Vietnamese
customers.

VI. Indulgence (Tu)

Indulgence: Depending on how they were raised, this dimension describes how
much people try to control their impulses and desires. "Restraint" indicates relatively
strong control, whereas "indulgence" indicates relatively weak control.
The United Kingdom scored highly on the indulgence scale, with a score of 69. This
suggests a society in which basic and natural human drives to have fun and enjoy life
are satiated relatively easily. British culture is generally more permissive, with a focus
on enjoying life, doing whatever one wants, and spending leisure time.

Vietnam received a score of 35, indicating that its society is restrained. This implies a
preference for pessimism and cynicism. Furthermore, there are stricter social norms,
more regulation of people's conduct and behavior, and a greater emphasis on
delaying gratification.

Based on the above data, we will have some notes about the changes Stonegate
needs to make when expanding its market in Vietnam.
● Cultural Adjustment: Given the UK's high Indulgence score, the Stonegate
pub chain will most likely need to adjust to Vietnamese culture's restraint. This
could mean focusing less on hedonistic indulgence and more on the social and
communal aspects of going to the pub.

● Marketing Plan: Rather than focusing solely on providing customers with a

place for self-gratification, Stonegate's marketing strategy in Vietnam should
 respect social norms and perhaps highlight the establishment's family-friendly
or community-building features.

● Product Offering: To meet Vietnamese preferences and constraints, the

product offering may need to be adjusted. Offering locally produced food or
non-alcoholic beverages, for example, may be essential.

● Recreation and Pleasure: While the UK may emphasize recreation and

pleasure as key selling points, Stonegate should consider how to position their
pubs in Vietnam in a way that aligns with local values. This could include
promoting social harmony, tradition, and community involvement.

Question: HOW TO ADAPT PRODUCT TO SATISFY LOCAL MARKET ?

Based on the presentation, Stonegate Enterprises should consider the following

strategies to adapt its products to the local market in Vietnam:

Establish a clear hierarchical structure: Respect the Vietnamese emphasis on

authority and deference to superiors by implementing a clear hierarchical structure
within the company's Vietnamese branches.
Foster collaboration and shared responsibility: Assign specific roles and
responsibilities to employees, but encourage collaboration and shared
decision-making to reduce individual burdens and enhance motivation.
Emphasize quality and long-term value: Appeal to the Vietnamese focus on quality
of life and long-term planning by highlighting the quality of Stonegate's products and
services, as well as the company's commitment to long-term growth and relationship
building.
Adapt to Vietnamese preferences: Adjust the product offering to meet local
preferences, such as offering locally produced food or non-alcoholic beverages.
Promote social harmony and community involvement: Position Stonegate pubs
as places that foster social harmony, tradition, and community involvement, rather
than focusing solely on recreation and pleasure.
Vip area, power high (show social statue ),
draft beer (outside) + pub (inside)

—--------------------------------------

ASSIGNMENT 3
1) Who are your customers? What are the needs you try to address?
Buyer characteristics (Vân, Trâm)
 Buyer characteristics
Stonegate tends to target young customers from 18-25 and also from 30-44,
who love sports and nightlife, and also attracts both international and domestic
tourists. Their pubs in the UK typically attract people with mid to high incomes.
The above characteristics also show that Stonegate's potential customers in the
Vietnamese market may be young people, have professional skills, like to
explore new craft beer brands, and appreciate the Meet and interact in an
intimate and quality space

https://howtorunapub.co.uk/uk-pub-customer-demographics-behaviours/
https://fr.slideshare.net/asiaplus_inc/vietnamese-alcohol-drinking-behavior
https://www.astuteanalytica.com/industry-report/vietnam-beer-market
https://vneconomy.vn/thi-truong-du-lich-viet-va-phan-khuc-ty-do-con-bo-n
go.htm

Customers of these nightlife entertainment areas mainly belong to two groups:

about 11 million foreign tourists who come to Vietnam to travel every year and
more than 30 million Vietnamese tourists ranging from 20 - 40 years old.
If Stonegate, the UK’s largest pub-owning company, were to establish branches in Vietnam,
their potential customers could include:
Local Residents and Foreign Tourists:
- Interested in experiencing local culture and entertainment.
appreciate a diverse range of offerings, including both traditional and
international flavors.
- Seek a welcoming atmosphere where they can socialize and interact
with locals and fellow travelers.
Young Adults and night enthusiastic :
- attracted by the novelty of foreign pub chains that offer different
cultural experiences.
- Value affordability alongside quality drinks and food.
- Seek venues that offer a vibrant and energetic ambiance.
- Interested in events or promotions tailored to their demographic,
such as themed nights or happy hours.

Beer and Beverage Enthusiasts:

 Appreciate a well-curated selection of beers, wines, and other beverages.
Value knowledgeable staff who can provide recommendations and
insights into different drink options.
Might be interested in tasting events or specials highlighting unique or
craft beverages.

Sport and Entertainment Lovers:

Người dân địa phương từ trung lưu đến thượng lưu: với môi trường
đang hội nhập kinh tế quốc tế ở Việt Nam, ngày càng có nhiều bộ phận
dân cư địa phương có thu nhập khá giả và ổn định quan tâm đến trải
nghiệm xã hội và ẩm thực đa dạng có thể bị thu hút bởi sự độc đáo của
Stonegate pub —> k biết khúc ni có cần lắm không
https://www.statista.com/forecasts/1275675/distribution-of-beer-consumers-
in-vietnam-age-group

What are the needs you try to address:

+Craft beer culture: Stonegate pubs play an important role in serving beer
enthusiasts who want to explore a unique range of locally produced craft beers.
It provides a platform for both established and emerging craft breweries to
showcase their products and educate customers about different beer styles.

+Cultural exchange: For both locals and tourists, the Stonegate pub can serve
as a platform for cultural exchange. They attract a diverse customer base,
allowing people from different backgrounds to come together and share
experiences.

+Socialize and entertain: Stonegate pubs provide spaces for people to

socialize, relax and enjoy. Besides that it can also provide a relaxed
atmosphere IN VIP area where individuals can discuss work matters, hold
meetings or establish relationships in a relaxed and less restrictive setting
tighter.

-Cultural needs:
Needs to understand that beer is not just a drink, but also an important
part of culture here.
It is necessary to respect and connect with local cultural values, to create
a space where customers can feel they are participating in a truly
Vietnamese experience .
Vietnamese people love to experiment with Western cuisine, but they
always order local dishes when going to pubs, so it's better to add a few
fusion options

Social needs
Vietnamese customers enjoy gathering with friends and relatives in an
intimate and vibrant atmosphere in a widely & comfortable place ,
especially during live sporting events .
With nearly most people in Vietnam using social media platforms
everyday , they tend to find new venues and events .
Moreover , it can also provide a relaxed atmosphere IN VIP area where
individuals who want to discuss work matters, hold meetings or establish
relationships in a relaxed and less restrictive setting tighter.
 -Personal needs:
Young customers in Vietnam mostly enjoy leisure activities, especially at
night, and value experiences over material possessions. They enjoy
socializing with friends, trying new foods and drinks, and exploring
entertainment options.. Stonegate needed to offer a range of craft and
premium beer options that meet individual needs for quality and
uniqueness.

-Psychological needs:
To match the psychology of Vietnamese customers, Stonegate needs to
focus on creating environments that offer comfort, relaxation, and a sense
of belonging, motivate pp to create social connections, provide stress
relief hours, and provide enjoyment. This not only helps increase
interaction between customers but also promotes returning to the pubs .

2) How do customers buy your products/ service (e.g how does the
purchasing journey look like) (Hoang) ? What is the type of buying
behavior? (Trúc)
Type of buying behavior & buyer decision process

a) How do customers buy your products/ service (e.g how does the
purchasing journey look like)?

b) What is the type of buying behavior? Type of buying behavior &

buyer decision process

Upon careful analysis of the market in Vietnam, it is evident that the purchasing
behavior and decision-making process of buyers at Stonegate in Vietnam is
multifaceted and influenced by an array of cultural, social, personal, and psychological
factors.

Complex buying behavior:

When choosing premium beverages or VIP spaces, driven by the buyer's desire for
quality and long-term value.

Variety-Seeking Buying Behavior:

Customers may enjoy exploring different kinds of beer shops and pubs in the city and
may show less loyalty to a single brand or venue.

Dissonance-Reducing Buying Behavior:

After making a purchase decision, may experience doubt or discomfort about their
choice, especially when faced with a situation with many similar drink options.

Habitual Buying Behavior:

Over time and with satisfaction regarding the services at Stonegate, customers may
develop habitual purchasing behaviors, where choosing to visit Stonegate becomes
customary, forming perceptions and comparisons between different brands related to
the customer's decision-making process in purchasing.

The decision process for buyers at Stonegate in Vietnam could typically follow
these steps:

Need Recognition:
- Internal stimuli :People recognize a need or desire for socializing, relaxation, or
entertainment. Maybe they want to unwind after work, celebrate an occasion, or meet
friends for socializing.
- External stimuli : External stimuli, including advertisements, promotional campaigns,
and words of mouth, also play a role in making consumers realize their needs when a
random customer might see their friends' social media shares about our pubs or
notice advertisements for Stonegate pub soft opening events on social media or the
unique design and new brand pub may seek customer’s curious .

Information Search: individuals engage in an information search to gather information

about available options.
- Personal source : They might rely on past experiences or knowledge about pubs
the
 - Personal source :
- - recommendations from friends ,
- - browsing online reviews and ratings of local pubs
- - exploring social media for information about pub eventsand promotions.

Purchase Decision:
- Customers make a purchase decision by selecting Stonegate that best meets their
needs and preferences.
- => Stonegate is the biggest pub company in the UK , convenient location, positive
reviews on the social media , many kinds of craft beer andnunique offerings from the
UK , diversity of food choices , appealing promotions or discounts ,with resonable
Budget considerations may also play a role in the final decision.
-
- Post-Purchase Behavior:
- After the experience, customers reflect on their satisfaction with the service and
product quality, which may influence repeat visits and recommendations to
others.
- y've previously visited .
- Experiental source : seeking recommendations from friends or family, browsing
online reviews and ratings of local pubs, or exploring social media for information
about pub events and promotions.

Evaluation of Alternatives: Determine value of option

- Buyers assess and evaluate different pub options including Stonegate’s new branch in
VN based on various criteria such as location, ambiance, drink and food offerings,
prices, and reviews.
- They may compare factors like the atmosphere of the pub, the quality of the drinks
and food, the friendliness of the staff, and the overall experience provided.
- They may also consider factors like special events, live music performances, or
themed nights offered by different pubs.

In sum, Stonegate's entry into the Vietnamese market demands consideration

of these complex buying behaviors and decision-making processes, ensuring
that strategic adaptations are made to satisfy the unique needs and preferences
of the local consumers.
ASSIGNMENT 4

1. Identify which issues for each STP factor are relevant to the firm of your group
project.
 - Segmentation
Geographic:
Demographic:
Psychographic:
Behavioral:

- Targeting: ( bcham )

- Positioning: (Tú+Hoàng)
Ref:
Positioning statements
"For discerning individuals seeking an authentic British pub experience with a modern
twist, Stonegate Pub Company offers a vibrant and welcoming atmosphere where
friends gather to enjoy quality food, diverse drink selections, and live entertainment.
Our commitment to exceptional service and memorable experiences makes us the
premier destination for socializing and relaxation in every community we serve."

Delivering the positioning concept

2. How many customers do you expect to serve (e.g., what is the size of the
demand)? -> TAM, SAM, SOM
TAM (Hoàng)
Market size Food and Beverage in VietNam
Revenue: 25.97 billion USD in 2022
Ref:
https://theinvestor.vn/vietnam-food-beverage-market-could-grow-to-31-bln-in-2023-d3
383.html#:~:text=Vietnam's%20food%20%26%20beverage%20market%20could,provi
der%20of%20restaurant%20management%20solutions.

SAM (Hoàng)
Market Size Alcoholic Beverages in VietNam
Alcoholic beverages: 10.4% on F&B
Revenue: $2.7 billion

Ref: https://www.statista.com/outlook/cmo/alcoholic-drinks/vietnam#revenue

SOM (Hoàng)
Market Size Stonegate try to aim in VietNam
Target: 5% for alcoholic beverage market size in 2 year
Revenue: $2.7 billion x 5% = $137.4 million

Question 2: How many customers do you expect to serve?

Theo báo cáo Ipos.vn về ngành F&B Việt Nam, trung bình một người trưởng thành
trên 15 tuổi tiêu thụ khoảng 170 lít bia/năm. Ngoài ra theo ipos.vn, tổng quy mô ước
tính của thị trường đồ uống có cồn vào năm 2022 là 4,338 tỷ lít bia. Vậy với quy mô
trên theo ước tính số khách hàng mà toàn ngành Alcoholic Beverage cần phục vụ
rơi vào con số dưới đây:
Số người = Tổng lượng bia tiêu thụ / Mức tiêu thụ trung bình
Số người = 4,338 tỷ lít / 170 lít/người/năm = 25,52 triệu người/năm

Vậy trong vòng 2 năm để có thể chiếm thị phần 5% của lĩnh vực Alcoholic Beverage
với tổng doanh thu sấp xỉ $137.4 million thì Stonegate cần phục vụ với số khách hàng
như sau:
Số lượng khách hàng = Doanh thu / Doanh thu trung bình trên mỗi khách hàng
Doanh thu trung bình trên mỗi khách hàng = $2,7 billion / 25,52 triệu người =
$105,8/per customer/per years
=> $211,6/per customer in 2 years
Số lượng khách hàng = $137,4 million/ $211,6 = 650 thousand customer (in 1
years)

Price range from 100.000vnd = 2$ => Customer need go to Stonegate 100 times/per
year
According to an Ipos.vn report on Vietnam's F&B industry, on average, an adult over
15 years old consumes about 170 liters of beer per year. In addition, according to
ipos.vn, the total estimated size of the alcoholic beverage market in 2022 will be 4.338
billion liters of beer. So with the above scale, the estimated number of customers that
the entire alcoholic beverage industry needs to serve falls into the following numbers:
Number of people = Total amount of beer consumed / Average consumption
Number of people = 4.338 billion liters / 170 liters/person/year = 25.52 million
people/year

So within 2 years, to capture a 5% market share of the alcoholic beverage field with a
total revenue of approximately $137.4 million, Stonegate needs to serve the following
number of customers:

Number of customers = Revenue / Average revenue per customer

Average revenue per customer = $2.7 billion / 25.52 million people = $105.8/per
customer
Number of customers = $137.4 million/ $105.8 = 1.3 million customers (in 2 years)
Equivalent: 650 thousand customers per year
Shop model similar to Stonegate in Vietnam: East-West

STP PROCESS

Stonegate có 5 mô hình kinh doanh riêng biệt :

"For discerning individuals seeking an authentic British pub experience with a modern twist,
Stonegate Pub offers a vibrant and welcoming atmosphere where friends gather to enjoy
quality food, diverse drink selections, and live entertainment. Our commitment to exceptional
service and memorable experiences makes us the premier destination for socializing and
relaxation in every community we serve."

ASSIGNMENT 5

1) Using the Porter’s Diamond describes how the home country provides the basis for the
international success of your company.
a) Porter’s Diamond Model
● Factor conditions (Tu)
Factor conditions are the resources and skills that a country has available, including infrastructure,
human resources, natural resources, and technology systems. These factors help enhance the
competitive advantage of businesses in the international market and specifically here for Stonegate in
the Vietnamese market.

At Stonegate, these are some of the main factor conditions in the Vietnamese market:

● Digital infrastructure and mobile networks: Assessing the quality and coverage of digital
infrastructure in Vietnam is crucial to ensure smooth business operations and interaction with
customers, especially in the context of growing e-commerce and mobile payments.
● Environmental and weather regulations: Vietnam has strict environmental regulations and
high demands on business service activities to enhance sustainability and environmental
 protection. Additionally, the climate, especially in areas with monsoons or sudden temperature
changes like Hanoi, can affect the design and location of pubs.
● Legal regulations: Laws related to business licensing, especially laws on alcohol service
hours and regulations on blood alcohol content when consuming alcohol, as well as labor and
food safety laws, will significantly impact how Stonegate manages personnel and menu
offerings in Vietnam.
● Economic volatility: Economic factors such as inflation and exchange rate fluctuations can
affect Stonegate's business operations, requiring appropriate price adjustments.
● Local competition and consumer preferences: Local pub chains may have
cost-effectiveness and local market understanding advantages. Additionally, the preferences
of Vietnamese consumers in consuming beer and alcoholic beverages can change rapidly,
requiring Stonegate to be flexible in adjusting its products and services to match.

These factors require Stonegate to be well-prepared and have an appropriate market entry strategy to
optimize the chances of success when entering the Vietnamese market.

● Demand conditions (Tram)

● Size and Composition of Market
According to general reports, Vietnam’s beer consumption by 2022 is at 3.8
million liters/year, accounting for 2.2% of the world market. ( Overview,
challenges and opportunities of Vietnam's beer industry (viracresearch.com)
Báo cáo do Bộ Công Thương chỉ ra, khoảng 38% lượng bia, rượu này (tương đương hơn 1
tỷ USD) được tiêu thụ tại các bar, beer club. Con số doanh thu khổng lồ thuộc mảng đồ uống
của các bar, club cho thấy quy mô cũng như tệp khách hàng của thị trường giải trí về đêm
này tại Việt Nam là khổng lồ và vô tận.

Vietnam’s F&B Industry: Market Trends and Consumer Preferences (vietnam-briefing.com)

● Sophisticated and Demanding Customer base :

The culture of "going out drinking" is deeply ingrained in Vietnamese people

alcohol is considered as a communication tool

The need to both "drink beer" and "have fun"

Seek vibrant night entertainment venues

Imported beverages are increasingly adorable

Willing to pay higher price for professional service

Interested in tasting events , promotions or specials highlighting unique or craft beverages.
Attracted by marketing campaigns on social networks
https://fr.slideshare.net/slideshow/van-dung-mo-hinh-kim-cuong-m-porter-phan-tich-loi-the-ca
nh-tranh-xuat-khau-ca-phe/234832861

https://thietkethicong.org/Kinh-doanh-Beer-Club-co-hoi-va-thach-thuc_vi_2082_103_cms.htm

lhttps://fr.slideshare.net/slideshow/van-dung-mo-hinh-kim-cuong-m-porter-phan-tich-loi-the-c
anh-tranh-xuat-khau-ca-phe/234832861

● Related and supporting industries (Tram)

https://fr.slideshare.net/asiaplus_inc/vietnamese-alcohol-drinking-behavior
● Vietnamese Breweries and Distributors : Theo rất nhiều khảo sát , để phục vụ tệp khách hàng
tiềm năng của chi nhánh Stonegate ở Hà Nội , chúng tôi sẽ cung cấp một vài loại bia đặc
trưng của Việt Nam được yêu thích nhất bao gồm cả những loại không cồn . Các nhà phân
phối mà chúng tôi sẽ hợp tác bao gồm :
 - Nhà máy bia Heineken Hà Nội ( Là liên doanh giữa HEINEKEN và Tổng Công ty Thương mại
Sài Gòn (SATRA) : sản xuất và phân phối 2 nhãn hiệu bia Heineken ( bao gồm bia không cồn
) và Tiger
- https://heineken-vietnam.com.vn/gioi-thieu/hanoi/

- https://chanhtuoi.com/bia-khong-con-p9598.html

- Tổng công ty Cổ phần Bia - Rượu - Nước giải khát Habeco Hà Nội ( nhà máy Hommel )
sản xuất và phân phối những dòng sản phẩm nổi tiếng làm nên thương hiệu Habeco
như Bia hơi Hà Nội, Bia lon Hà Nội, Hanoi Beer Premium…
● Logistics and Transportation Services
https://www.habeco.com.vn/?page=about
● Công ty nội thất và thiết kế : dịch vụ bao trọn thiết kế và cung cấp thiết bị , nội thất
liên quan bao gồm : phong cách quán , bố trị mặt bằng khu bếp , bar cũng như nội
thất liên quan , hệ thống âm thanh , cách âm , ánh sáng , decor , bố trị khu vực ngoài
trời , trong nhà , phòng vip => Công ty nội thất Việt Á
- https://noithatvieta.vn/thiet-ke-lounge-bar/
● Food Suppliers : Our pub offer food options ranging from appetizers to full meals ,
providing high-quality ingredients for menus including Vietnamese food and Brishtish
food
● Packaging Suppliers
● Bar and Kitchen Equipment supplier
● Hospitality Staffing Agencies: Pubs need skilled staff including bartenders, servers,
chefs, and kitchen assistants. => website : talent.net , Manpower ,....
● Marketing and Branding Agencies
● Technology Providers: LED screen for music and sport events , Point-of-sale (POS)
systems, inventory management software
● Waste Management Services: recycling and disposal, ensuring compliance with
environmental regulations
● Cleaning and Maintenance Services

● Firm strategy, structure and rivalry (Hoang)

Stonegate's competitive strategy, organizational structure, and industry rivalry drive innovation, quality
improvements, and global expansion, ensuring its status as a leading luxury pubs, bar brand.

● Government, Chance factors (Hoang+TU)

Government:
Tax Policy: Government tax policies can impact Stonegate's profitability and pricing. For instance,
increased alcohol taxes may force price hikes or profit reductions.
Regulations: Government regulations on the alcoholic beverage industry could affect Stonegate's
operations. Restrictions on alcohol sales hours or raised legal drinking age may necessitate business
adjustments.
Political Stability: Vietnam's political stability can influence Stonegate's business activities.

Chance Factors:
Natural Disasters: Events such as storms, floods, or earthquakes can disrupt Stonegate's operations
and damage assets.
Pandemics: Outbreaks like COVID-19 could force pub closures or operational limitations for
Stonegate.
Consumer Preferences: Shifts in consumer preferences for alcoholic beverages may require
Stonegate to adjust its business to meet customer demand.
Competition: Competition from other pubs and restaurants can impact Stonegate's sales and profits.
Technological Changes: Tech advancements, like food delivery apps, could alter how customers
engage with Stonegate.

2) Identify which issues for each competitive force are relevant to the firm of your group project.
Discuss and present your Porter’s five forces model.

a) Porter’s five forces

● Threat of New Entrants (Hoàng)
Vietnam has been witnessing a robust growth of craft beer establishments in recent years. This trend
highlights the threat posed by new market entrants, which are potential companies that could
compete with Stonegate in its operations within Vietnam. Below are several enterprises that could
pose a threat to Stonegate's market activities and revenue, including Belgo Craft Breweries, BiaCraft
Artisanal Breweries, East West Brewing Co., Tê Tê Craft Beer, and Hoa Vỉ Craft Beer. The
emergence of such new establishments in the market is likely to escalate competition for Stonegate in
this sector.

Ref: https://mytour.vn/vi/blog/bai-viet/tong-hop-11-quan-bia-craft-sieu-phong-cach-tai-sai-gon.html
https://ibiero.com/blogs/news/top-5-nha-hang-bia-thu-cong-chat-luong-tai-thanh-pho-ho-chi-minh
https://www.coolmate.me/post/quan-bia-craft-sai-gon-463

● Power of suppliers (Trúc)

→ nhà cung cấp bia
+ Cung cấp bia từ Anh: Stone Brewing Company → nhà máy bia thủ công của stonegate
+ Cung cấp nguyên liệu để sản xuất bia → TUV CORP +những nguyên liệu khác
→ nhà cung cấp đồ ăn nhẹ( khô gà, phồng tôm,Xúc xích, burger ức gà nướng,...) → F&B
Vietnam company
 → nhà cung cấp nguyên liệu pha chế (siro, đường, mứt, trái cây đóng hộp,...) - (Bartenders’
Mart Nhất Hương)

a) Beer supplier
Beer supply from England: Stone Brewing Company → stonegate craft brewery
Providing raw materials for beer production → goldmalt.com.vn + other ingredients
b) Supplying bottles for beer production: King of bottles (vuachailo.vn)
c) Snack supplier (dried chicken, shrimp chips, sausages, grilled chicken breast burger,...) → F&B
Vietnam company
d) Supplier of mixing ingredients (syrup, sugar, jam, canned fruit,...) - (Bartenders’ Mart Nhat Huong)

→ Stonegate has a high power of suppliers. There are suppliers such as: providing beer from
England, providing snacks, etc. We also want to have unique characteristics of Vietnamese beer, so
there will be suppliers of raw materials and casings to produce beer. These suppliers are quite difficult
to find and fickle, so they can charge Stonegate quite high prices as well as set requirements and
conditions.
● Power of buyers (Trúc)
→ Stonegate's power of buyers is low. The average living standard of Hanoi people is quite high, the
demand for entertainment and going to bars or pubs is also quite high, they are both meticulous but
quickly open to the Western lifestyle. The customer base in Hanoi has quite high requirements for
products and services, and The Hanoi Bar and Pub market is entering its golden period.

(Vân) - đe dọa của hàng thay thế

Alternative pubs are now increasingly popular and diverse in number as well as the form and
quality of foods and drinks getting better and better. The variety of pubs gives people a variety
of choices depending on the desired customer segment.
 However, Stonegate pub with innovative products ( drinks brought directly from the UK
combined with exclusive self-produced products), aims for luxury and sophistication in service
-> this will reduce the risk of having substitute products because of the difference that
stonegate pub brings to customers.

● Rivalry among existing competitors (Vân) - sự cạnh tranh của các đối thủ hiện tại

Reason: There are many alternative famous pub branches available in Vietnam: Pasteur
Avenue Brewing Co, Hà Nội và Tp. Hồ Chí Minh, Belgo Craft Breweries, BiaCraft Artisanal
Breweries, East West Brewing Co., Tê Tê Craft Beer, and Hoa Vỉ Craft Beer, The Haflington,
Police & Co, Prague Pub,...

Cons: These pub branches offer similar features as Stonegate pub: serving light food and a
variety of alcoholic and non-alcoholic drinks along with interesting singing and dancing
activities and especially compete for the same user base

Solution: To maintain and operate stably, Stonegate Pub needs to constantly be creative and
innovate in service as well as food and drinks to be different from other branches in Vietnam
such as: Stonegate pub's exclusive drinks, uniquely decorated VIP areas reserved for
customers in need, interesting and special entertainment activities held weekly,...
ASSIGNMENT 6

1. SMART
Specific: Establish a presence in Hanoi city in a key urban area by opening a pub with a different
concept from current competitors within the first year.
Measurable: Achieve a minimum of 70% occupancy rate within 6 months of opening, as measured
by daily foot traffic and table turnover. Make sure to have full bookings on weekends and holidays .
Maintaining a customer satisfaction rating of at least 4 out of 5.
Achievable: Secure partnerships with local distributors ( local beer industries) and suppliers to
ensure a steady and cost-effective supply chain for logistics ingredients, beverages between both
countries , and furnishings required for the pub's operations.
Relevant: Vietnam has worsened a blooming growth of the middle income class, which has demand
for Western-style dining and entertainment experiences. It indicates the opportunities for us to align to
this market. Besides, we need to master the legal regulations and business culture in Vietnam to
meet the international growth goals, diversification, and sustainable development.
Time-bound: Launch the first pub within the next 12 months and expand to 2 pubs within three years
in Ho Chi Minh City, and achieve 5% alcohol market share with a total revenue of about 137.4 million
USD within the next 3 years

2. ENTRY MODE TO A NEW MARKET (Hoang)

2.1. Basic entry decision (Timing of entry, Scale of entry)
2.1.1. Timing of entry - Late entry
Timing of market entry is one of the most important strategic decisions a firm must make, but its
decision process becomes convoluted with information and payoff spillovers. Late entry is defined as
entering a market after one or more firms have already established themselves. The late entrant
might enter right after the pioneer (a fast follower), or might enter after several players have arrived
(late market entry) (Chen et al., 2021). In the case where major international brands like East West
Brewing, Heart of Darkness, GolfBeer, etc., have already started penetrating the Vietnamese market,
these brands have chosen to partner with an existing local supplier to have a significant geographical
footprint or to establish new facilities in prime locations to enhance brand presence. Therefore,
Stonegate can be considered a late entrant into the Vietnamese market.

However, these international brands are positioned as service products for customers with disposable
income, Stonegate was still able to gain significant market share by focusing on products and
services with Affordable prices, likely to be accepted by Vietnamese consumers.
By studying case studies of other brands, Stonegate can gain valuable insights to avoid similar
pitfalls. This can range from understanding mistakes in marketing strategies to learning about
unsuccessful product features. Such knowledge can guide Stonegate in perfecting its own strategies
and services.
Furthermore, Stonegate has the opportunity to improve on products or services provided by pioneers.
By analyzing the current market, Stonegate is able to identify gaps in the products of existing brands
and innovate to fill these gaps. This could be a powerful way to differentiate Stonegate's products and
attract customers.
In essence, while being a late entrant comes with its own challenges, it also gives Stonegate the
advantage of hindsight, allowing the company to learn from the experiences of others and potentially
abilities superior to them. With careful planning and strategic decision-making, Stonegate can turn
these challenges into opportunities for success in the Vietnamese market.

2.1.2. Scale of entry - Small scale entry

Entering on a smaller scale allows the company to build itself up gradually while becoming better
acquainted with the market and limiting its exposure (Porter, 1980). This approach allowed Stonegate
to gradually build its presence, become more familiar with market dynamics and limit its exposure to
potential risks. Because Stonegate is financially dependent on its UK parent company, this
conservative investment strategy provides the opportunity to test the waters in a new market before
making a full commitment.

Cultural adaptation is another important aspect of this entry strategy. Due to cultural differences in the
Vietnamese market, Stonegate needed to adjust its operations and management methods to better
connect with local customers and employees.

However, the success of this entry strategy largely depends on choosing the right local partner. A
well-chosen partner can facilitate smoother collaboration, minimize potential conflicts, and ensure
cultural fit between the two companies. Stonegate should therefore carefully consider its partner
identification and selection process to ensure successful market entry.

2.2. Entry method - Joint venture

Through comprehensive PESTEL and SWOT analysis, Stonegate has identified joint ventures as a
strategic model to enter the Vietnamese market.
PESTEL analysis highlights several key factors. The socio-economic aspect encourages job creation
for local people, supporting businesses such as Stonegate to partner with local manufacturers.
Economically, high import taxes of up to 35% for the beer and alcohol industry make domestic
production a more viable option. This approach is suitable for the political context, where local
production can attract government support in the form of policies, or favorable subsidies for foreign
businesses when expanding their markets in the country. Vietnam.
Besides, SWOT analysis further strengthens the choice of joint venture. Working with a local partner
can help Stonegate mitigate some of the identified weaknesses and threats, such as navigating the
regulatory environment and competing with established brands. It also allows Stonegate to take
advantage of existing supply chain relationships with existing partners to serve its market expansion
needs.

2.2.1. Joint venture partner - TUV Corp

After analyzing and selecting local partners, we decided to cooperate with TUV Corp - one of the
oldest and large-scale suppliers of Craft Beer production materials in Vietnam. TUV Corp company
has more than 22 years of establishment and development, has affirmed its brand in the field of
providing raw materials for the leading beer production industry in Southeast Asia. The company is
known for collaborating and producing as well as exclusively distributing beer ingredients with
partners such as Yakima, Barrett Burston, BESTMALZ, FAWCETTS, BAIRDS MALT, etc. The
company recruits and has more than 300 local employees across the country. In addition, TUV Corp
is a core component of many local value chains, large and small, providing beer raw materials for
contracts and Large-scale tenders using locally sourced raw materials.
While Stonegate's strengths lie in production, product operations as well as marketing, TUV Corp can
take on the responsibility of controlling and supplying raw materials.
ASSIGNMENT 7
I) Brand name (Truc)
Stone Paving: The street known as Stonegate in York, England, was named around 1119.
One theory suggests that the name originated from the presence of stone paving, which was
unique in the city at that time.
Stone Hauled to the Minster: Another theory links the name "Stonegate" to the stone that
was hauled up to the Minster, a prominent cathedral in York.

When combined, "Stonegate" can evoke the following meanings and associations:
● Strength and stability: The combination of "stone" and "gate" suggests a strong,
durable, and secure structure.
● Tradition and heritage: Stone buildings and gates are often associated with historical
and traditional architecture, implying a sense of heritage and authenticity.
● Access and opportunity: A stonegate can symbolize a grand entrance or a passage
to new experiences and opportunities.
In the context of Stonegate pub company, the name "Stonegate" has been chosen to convey
a sense of tradition, stability, and a welcoming atmosphere that invites patrons to enter
and enjoy a memorable experience. The name can also suggest a connection to British
heritage and architecture, given the prevalence of stone structures and gates throughout the
country's history.

II) Brand identity (Hoang +Truc )

a) Logo

The Stonegate logo is straightforward and elegant, featuring the company name in a serif typeface.
The use of a serif font adds a classic and slightly formal touch, which aligns well with the traditional
values and historical ambiance often associated with British pubs. The font style suggests reliability
and a quality service ethos, which is important for a hospitality business aiming to attract a clientele
that appreciates a refined pub experience.

b) Color
The logo utilizes a muted gold or beige color on a neutral background. This color choice is significant
for several reasons:

Gold and Beige: Typically associated with sophistication, quality, and calmness. Gold tones are
often used to convey luxury and high standards, which may suggest that Stonegate Pub Company
aims to provide a superior pub experience. This color can also evoke feelings of warmth and
welcome, important for a pub intended to be a cozy gathering place.
Neutral Background: The dark, almost charcoal background provides a stark contrast to the gold
text, which helps the company name stand out. The use of a dark background can suggest solidity
and stability, reinforcing the idea of the pub as a reliable and enduring presence.

c) Design style
The overall design style of the Stonegate logo is minimalist and focused, with no extra graphical
elements beyond the text. This minimalism:

● Enhances readability and brand recognition, important factors for a business that likely relies
on signage visible from a distance or in busy urban settings.
● Suggests a no-nonsense approach to the business, focusing on quality and service rather
than flashy branding. This can be appealing to consumers looking for an authentic pub
experience rather than a commercialized one.
III) Positioning
"For discerning individuals seeking an authentic British pub experience with a modern twist,
Stonegate Pub Company offers a vibrant and welcoming atmosphere where friends gather to enjoy
quality food, diverse drink selections, and live entertainment.
Our commitment to exceptional service and memorable experiences makes us the premier
destination for socializing and relaxation in every community we serve."

Key Attributes:
Combination of Vietnamese and British flavor :
Alcoholic beverages, especially real beer flavors, are shipped directly from the UK with a variety of
beer lines from a long-standing supplier to Stonegate in the UK. Besides, there is a full and diverse
range of familiar Vietnamese beers In order to offer a wide variety of products to cater to different
tastes and requirements.
Quality: Quality is at the core of everything we do. We are committed to delivering products that meet
the highest standards of craftsmanship and durability. Our rigorous quality control processes ensure
that every item leaving our facility is of the utmost quality.
Adaptability and Innovation :
The trends in the F&B market always change continuously so we always try to adapt to these trends
immediately. In any circumstances, our teams are dedicated to producing innovative ideas and
remain open to all feedback from our customers. Whether it’s introducing new menu items, themed
nights, or unique promotions, adaptability keeps our pub always fresh , attractive and a "to go "
destination.
Perceive Value
We believe that quality and innovation should not come at a high price. We are committed to offering
our customers the best value for their money.
Exceptional Service :
staff are always thoroughly trained in serving and supporting and always know how to please
customers. Customer satisfaction is the highest standard we want to achieve to become the first
entertainment venue when customers want to "go out drinking" . Satisfied customers return.
Trustworthiness:
Building trust with customers as the leading pub in the UK and owns more than 4,000 different
branches abroad and that will still remain the same when the brand comes to Vietnam. Excellent
customer service, high-quality products, and a welcoming atmosphere encourages repeat visits.
Happy patrons become loyal regulars.
Atmosphere and Ambiance:
Because it is a dining and entertainment venue, we will design a special space with a Western
European style but still suitable for Vietnamese tastes which emphasizes a vibrant atmosphere with a
huge space.
Community Engagement:
Vietnamese people have a very strong sense of community, so we will Host events, support local
causes, and collaborate with neighboring businesses to create a sense of belonging. Community
involvement fosters loyalty and word-of-mouth marketing.
 IV) 4Ps with brand positioning
Product Price Place Promotion

Combination of An extensive Competitive Selects locations ● Create a menu that

Vietnamese and selection of pricing for alcohol targeting areas with showcases a variety
British flavor beverages and or non-alcoholic, high footfall, vibrant of Vietnamese and
food in both and light foods nightlife, or specific British-inspired
Vietnam and the products customer segments: dishes and
UK, including a Business clients, beverages
wide range of Expats, Young ● Introduce regular
beers, wines, professionals specials and
cocktails, chips,... seasonal offerings
that highlight the
fusion of Vietnamese
and British flavors.
● Collaborate with KOL
and social media
platform to introduce
the new food and
beverage that
provide the
combination of
Vietnamese and
British flavor

Quality The products meet Product prices will Choosing quality Through advertising,
standards for taste be customized to locations is a top Stonegate will be able to
as well as food suit each priority to create reach more customers.
hygiene and safety ingredient. convenience and Improving the quality of
Creating products connect busy roads advertising and promotional
with reasonable to increase customer campaigns can create more
prices but still awareness of the potential customers for the
ensuring the best new store brand
quality

Adaptability and New products are Reasonable There are fixed Highlights of products
Innovation constantly pricing depends partners related to created only at Stonegate
researched and on the services such as: raw include: craft beer, snacks,...
developed to keep from normal to material suppliers for
up with youth VIP that beer production,
trends customers choose snacks, etc., for
long-term
cooperation and
development
Value There are Pricing strategies Reasonable choice Advertising channels focus
incentives when are diverse, for large, densely on value, incentives,
ordering combos appropriate and populated cities promotions combined with
on the menu, worthy of the special activities on different
booking a table in requirements of occasions -> increase
advance for 5 many customer customers loyalty
people or more or segments
when trying out
new products from
the restaurant

Exceptional The staff is Price goes hand A first place for Provide ongoing training and
Service well-trained and in hand with entertainment when support for employees to
skilled to provide customer customers want to keep their skills and
customers with the satisfaction "go drinking" knowledge up to date to
best food and focus on customer service
beverages with the excellence. Encourage
best service employees to contribute
ideas and suggestions to
improve service quality.
ASSIGNMENT 8
1. Provide the key features of the 3 product levels for your group project product
- Core product:
Relaxing space and authentic pub experience: Customers come to Stonegate to enjoy the
comfortable, intimate atmosphere typical of a traditional pub.
Networking opportunities: Stonegate is a place to meet friends, family, colleagues and
create social relationships.

- Actual Product:
Diverse menu: Providing drinks (beer, spirits, cocktails...), food (traditional pub dishes,
snacks...) suitable for many customers.
Characteristic design space: Cozy, intimate design style, imbued with the traditions of British
pubs.
Service quality: Professional, friendly service, creating a comfortable feeling for customers.
Music and entertainment: Music fits the pub atmosphere, there may be live entertainment at
some times.

- Augmented Product:
Incentive programs and promotions: Help customers save costs and increase satisfaction.
 Special events: Organize themed events, holidays, attract customers and make a difference.
Online booking service: Brings convenience to customers.
Free Wifi connection: Meet customers' internet usage needs.
Child-friendly spaces: Some branches may have areas specifically for families with young
children.

2. Product life cycle of Stonegate pub company: Introduction

● Stonegate Pub Company is not yet known and officially operates in Vietnam.

● During this period, Stonegate Pub Company will only focus on branding: the pub combines
Vietnamese and British flavors, creating recognition and attracting customer attention ->
creating a consistent customer base. intended for a pub

● Stonegate Pub Company's pubs spend costs mainly related to advertising activities on social
networking platforms, promotions, distribution, production,... to attract new customers.

ASSIGNMENT 9

1. What distribution channels does your company choose?

-> Direct channel

 ● Social media and email campaigns: Actively engage with customers through social media
platforms (Facebook, Instagram, Twitter) and email newsletters to promote events,
special/unique food and beverage with promotions.

● Loyalty Programs: Implement loyalty programs where customers earn prize draws for
enjoying food and beverage directly at the Stonegate pub, encouraging return visits and
building customer loyalty .

● Pubs, bars and nightclubs: Stonegate's direct distribution channel where customers visit
physical locations to enjoy food, drinks and entertainment.

● Internal events and promotions: Events such as live music, quiz nights, themed parties, and
sports broadcasts are held at locations to attract and engage customers directly online.

=> The reason why Stonegate chose a direct channel is that many products in this pub are made by
hand -> when customers come to the pub they can enjoy the fresh food and beverage. Another
reason is that with the direct channel → can increase Stonegate’s brand awareness for the customers

2. What pricing strategies does your company use?

-> Competition-based pricing strategy

Advantage
● Competitive advantage: B2y closely monitoring and matching or slightly undercutting
competitors' prices, Stonegate can attract price-sensitive customers who are looking for the
best value for their money. This can help Stonegate gain a competitive advantage and capture
market share from their rivals.
● Increased sales volume: Offering competitive prices can encourage more customers to visit
Stonegate pubs, leading to higher sales volumes.
-> This is particularly important in the pub industry, where customers often make decisions
based on price and perceived value.
● Improved market positioning: By aligning their prices with competitors, Stonegate can
position themselves as a strong player in the market. This can help them establish a
reputation for offering fair prices and value, which can attract more customers and build brand
loyalty.
● Pricing flexibility decisions: Competition-based pricing allows Stonegate to simplify their
pricing decisions by using competitors' prices as a benchmark. This can save time and
resources that would otherwise be spent on extensive market research and analysis.
● Flexibility to respond to market changes: By constantly monitoring competitors' prices,
Stonegate can quickly adapt to changes in the market. If a competitor lowers their prices,
Stonegate can respond by adjusting their own prices to remain competitive and avoid losing
customers.
Disadvantage

● Reduced profit margins: By constantly matching or undercutting competitors' prices,

Stonegate may have to accept lower profit margins. This can limit their ability to invest in
growth and improvements, which could affect their long-term success.

● Lack of strategic focus: If Stonegate relies solely on price to compete, they may struggle to
differentiate themselves from their competitors. This can make it harder to build a loyal
customer base and maintain a strong brand identity.

● Price war: Moreover when choosing pricing matching with competitors, it will be detrimental to
profits for all players involved. So Stonegate should aim for sustainable competitive pricing
rather than drastic undercutting.

3. What are the internal and external factors affecting your pricing strategy?

a) Internal factors:
• Cost of production :

Most of the products will be draft beer from the company with Stonegate's exclusive recipe along with
other alcoholic beverages imported from the UK => which costs quite a lot of money to import.

plans to combine with companies that produce raw materials to produce fresh beer in Vietnam =>
reduce costs, create a beer line suitable for Vietnamese people,

Besides, there are pure Vietnamese beers from Vietnamese breweries => the cost will not be too high
so the selling price will be suitable for customers in Vietnam.

To create a quality pub, we also place emphasis on hiring quality workers to ensure prestige and
satisfy Vietnamese customers.

• Product positioning : Stonegate positions itself to offer innovative and luxury products and
services

=> prices may be higher than small beer bars but will still be slightly lower than main
competitors to gain market share

• Brand image: Positioned as a giant in the industry, Stonegate has created a widely known brand in
the UK market as well as a reputation worldwide.
-> Therefore, when entering the Vietnamese market, Stonegate needs to determine the price of
its products to match its positioning as a Luxury and innovation brand, on par with major
competitors currently present.

External factors:

• Economic conditions :
2023 is a year of global economic crisis when all economic activities of developed and developing
countries are stagnant and facing difficulties. However, by the end of 2023 and early 2024, Vietnam's
economy is trying and on track to develop better. In the service sector, commercial activities were
vibrant, tourism recovered strongly thanks to the effectiveness of favorable visa policies and tourism
stimulus programs, and export turnover of key products increased. High.
=> The value of F&B industry increased by 8.34% during the entire economic development in early
2024.

=> The market has many opportunities, so we can completely set the most suitable price to
achieve the desired revenue in this market.
But in some case , customers might be more budget-conscious in their food or drink options .
=> Consider to make many deal like happy hour , lady night ,..... ( but ensure the profit )

• Competition : There are many bars in Da Nang with similar Western style such as Stonegate East
Weast Brewing Co, Esco Beach Bar, Lounge or Nha Hang Ham Ruou SOS,.... Besides that
Vietnamese customers have high income levels and love novelty as well as British culture, they are
mostly very sensitive about "price" ( 1 of the most important characteristic of Vietnamese
customer )

=> So setting competitive prices with shops that have the same customer segment as you is
very important so that the shop can develop in the long term without being replaced.

• Customer decision power : HIGH

Because they have a number of alternative choices when choosing a place to gather , to cheer up or
to enjoy another exciting culture ,...... So we have to consists the brand positioning and make product
quality must match the price they offer to customer

-> So we can attract customer loyalty to continue using products and services