Consumer’s perception of low product quality of Saigon Special in Saigon Beer-Alcohol-Beverage Corporation (SABECO)

Abstract

Beer industry has witnessed higher total volume growth despite the rise in the Special Consumption Tax from 50% to 55% since 2016. Positive economic conditions in Vietnam have boosted consumers’ incomes and forced them to shift from unbranded to branded beer, as higher quality and taste. Saigon Alcohol Beer & Beverages Corp (Sabeco) saw a reduction in its market share although it maintained its lead in beer. Saigon Special is a new brand of SABECO that is aiming at the target segment of people who tend to drink premium beer. Although at present SABECO is the leading beer producer with the market share accounting for 39% in 2016 however the launching of its new brand Saigon Special was not so successful because SABECO lacked of an effective distribution plan especially focusing on preservation during transportation activities for this new brand. In exploring the weakness point of the product, Saigon Special, we have given some recommendations to grow market share and market size by investment into quality ptoduct to create the customer need. Customers’ perspective of quality has been proven to be the primary element contributing to the success of the company. In which, four important factors affecting customers’ perspective of quality are opinions from other people, situation, physical properties and storage, use, convenience of beer. The purpose of this thesis is to identify the root cause led to the main problem after analyzing all possible causes. Strongly invest for retailer in terms of point of sales material (POSM), display (for short term) and invest on distribution system in both policy and display, especially at point of sales (for long term). Finally it implicates potential solutions that can be applied to solve this problem.