Overcoming challenges to maintain the Vida beer brand.

(Baonghean)Operating under challenging conditions and facing fierce competition from many well-known domestic beer brands such as Hanoi, Huda, Laru, Heineken, Dai Viet, and Tiger, Vida beer has still affirmed its superior brand. In 2012, it fulfilled its planned targets, contributed 169 billion VND to the state budget, and was one of the top three units in the province in terms of budget contributions…

Mr. Tran Van Khanh, Deputy Director of Saigon Nghe Tinh Beer Joint Stock Company, explained: "No year has been as difficult as 2012. Input material prices have increased significantly; consumer demand hasn't increased, but beer from various brands has flooded the area, making the company's already difficult business even more challenging."

It was found that the prices of raw materials for the factory increased dramatically in 2012. Especially some key materials such as Man (a type of mineral), the average purchase price was 13,000 VND/kg, coal 2,800 VND/kg, electricity 1,384 VND/kW, and water 8,100 VND/kg; compared to 2011, Man and coal increased by 1,000 VND/kg, electricity by 1.5 VND/kg, and water by 1,000 VND/kg. However, this was not the main obstacle. The biggest challenge in business operations was facing the promotional policies of beer brands such as Hanoi, Huda, Tiger, Heineken, and Dai Viet in the Nghe An market as well as other provinces in the North Central region. In its market dominance strategy, Huda beer considered Vida a major competitor and invested over 23 billion VND in promotions, price reductions, and increased discounts for customers and distributors. Or, in its policy of expanding the distribution area for Hanoi beer, there are also groundbreaking policies to attract customers. During the production restructuring process, the company decided to dissolve the beer production line at its Ha Tinh branch, mainly because the line was small, outdated, and inefficient, leaving over 100 workers unemployed…

Faced with these difficulties and challenges, the company's leadership diligently sought and implemented effective solutions. To overcome and reduce input costs, the company intensified its cost-saving program, such as using inexpensive Khe Bo coal (1,900 VND/kg) instead of expensive Hon Gai coal (2,800 VND/kg); and selecting periods when rice prices were low to purchase raw materials for stockpiling. As a result, despite market fluctuations, the company still purchased at an average price of 10,500 VND/kg, a reduction of 500 VND/kg. In addition, the company focused on reviewing labor norms, raw material and fuel consumption, rationally arranging each work stage and department, maintaining a three-shift work system, and strengthening inspection and supervision to ensure adherence to technical procedures in all stages, especially fermentation and wastewater treatment, guaranteeing stable product quality and production, and thoroughly addressing environmental pollution.

In particular, in terms of sales, the company implemented promotional programs to increase product consumption, allocating over 7 billion VND to promotional campaigns such as: providing transportation support, discounts for dealers and customers selling draft and bottled beer. 2012 was considered a year in which the company surpassed itself, implementing a business strategy of expanding its reach. In addition to applying promotional policies, expanding the range of draft beer discounts, strengthening advertising and marketing, and supporting market expansion, the company invested nearly 10 billion VND to purchase over 4,000 stainless steel beer containers and coolers instead of plastic ones through methods such as borrowing, purchasing, and installment payments. It also provided over 10,000 plastic cups to dealers... As a result, the products, especially Vida draft beer, always ensure food safety and hygiene; maintain the brand, delicious flavor, and are always favored by customers.



Saigon Beer - Nghe Tinh Joint Stock Company is implementing a plan to produce bottled beer products to serve the Lunar New Year of the Year of the Snake (2013).

Thanks to these efforts, in 2012, the company overcame difficulties, mastered the production line and market, and produced and sold 34.485 million liters of various types of beer, exceeding the plan by 6%, including 10.1 million liters of draft beer, 22.1 million liters of Saigon bottled beer, and 2.2 million liters of Vida bottled beer; revenue reached 350 billion VND, and profit was 32 billion VND. It was particularly encouraging that 230 employees at the Nghe An branch had stable jobs with an income of nearly 5 million VND/person/month, dividends were paid in advance at 17%, and over 100 employees at the Ha Tinh branch had their benefits settled satisfactorily. The company contributed 169 billion VND to the state budget, exceeding the set target and being one of the 8 units that achieved high budget contribution targets and received an extraordinary commendation from the Provincial People's Committee.

These days, the company is entering its 2013 planning year with great confidence and enthusiasm. On the production line, staff and workers are diligently working. Company leaders are frequently present in the workshops to inspect, supervise, and encourage all workers to ensure productivity, quality, and efficiency, implementing production plans and striving to exceed targets in the first month and first quarter. According to Company Director Dang Huy Dong, to meet market demand during the Lunar New Year of the Snake, the company is urgently implementing a plan to produce 100,000 liters of special canned beer. Along with that, in 2013, the company will continue to improve its production and sales capacity, striving to maintain its brand, producing and selling 37 million liters of various types of beer, generating revenue of 370 billion VND, contributing 160 billion VND to the state budget, and creating jobs and income for 100% of its workforce.

Literary Group