Heineken in Hanoi

Embryo Case/Critical Incident Attached is a brief summary of factors impacting the beer industry in Vietnam, a dynamic emerging economy in the Southeast Asian region. The Critical Incident would be based on secondary resources. Distribution channels are changing as the per capita income increases with distinct regional differences in the target market, taste preferences and brand loyalty. This industry dynamic in Vietnam lends itself to an interesting scenario, the outcome of which is still currently being determined. A brief scenario could be presented as a stand-alone case, tasking the students to assess the opportunities and challenges of a global brand on the international stage, define a growth strategy and determine a distribution model in a fluid environment in which channels are maturing and evolving. The critical incident would focus on Heineken’s strategy in Vietnam which is facing stiff competition from both local brands and the increasing popularity of micro-breweries. While Heineken currently is one of the market leaders, these competitive factors, as well as the changing economic and demographic environment of Vietnam, are threatening its continued success.