Introduction
Tuborg, a prominent international beer brand with a rich history, initially launched in Vietnam with high hopes of tapping into the country’s growing beer market. The brand’s edgy, youthful image seemed to promise a perfect fit with the vibrant, rapidly developing Vietnamese market. However, the journey of Tuborg in Vietnam took a turn for the worse after its launch in 2016. Over the next five years, from 2016 to 2021, Tuborg experienced a significant decline in its performance.
Sales faltered year after year, and the brand seemed to lose its connection with the very consumers it aimed to engage. But, as many brands have learned, adversity often leads to innovation. In 2021, Tuborg made a bold move to relaunch its brand in Vietnam, aiming to revive its image and reclaim its position in the market. This article explores the journey of Tuborg’s decline, the strategic relaunch that followed, and the impressive turnaround that followed the brand’s revitalization.
The Decline: Challenges Faced by Tuborg
Tuborg’s Initial Launch in Vietnam
When Tuborg first entered the Vietnamese market in 2016, it was introduced as a premium, international beer brand that appealed to the young, trend-conscious drinkers of Vietnam. At the start, the brand made a splash with its bold, youthful image and the promise of a premium, international beer experience. The brand was marketed heavily through music, leveraging partnerships with global artists to position itself as a “cool” and “edgy” choice for young beer drinkers.
Initially, this approach seemed to resonate. The younger demographic, particularly those in major cities like Ho Chi Minh City and Hanoi, showed a strong interest in Tuborg. The beer’s sleek packaging and international appeal gave it an air of exclusivity, and it gained traction in bars, clubs, and other high-energy on-trade venues, which were the primary outlets for the brand.
However, despite this initial success, Tuborg soon faced challenges that would hamper its growth in Vietnam.
The 5-Year Decline
Despite Tuborg’s promising entry into the market, the brand experienced a consistent decline in sales over the following five years. By 2021, Tuborg’s position in the Vietnamese market was weak, and its potential seemed to be unfulfilled. The reasons for this decline were multifaceted:
- Misalignment with Local Consumer Preferences: Tuborg, in its early years, had not fully considered the preferences of Vietnamese consumers. The brand’s original recipe, with its relatively bitter taste, did not align with the taste profiles preferred by the majority of Vietnamese beer drinkers. Vietnamese consumers tended to prefer lighter beers that were more refreshing and suited for high consumption in social settings. Tuborg’s more bitter international flavor and appearance didn’t quite appeal to the local palate.
- Too Much Focus on Music, but Not Enough Local Connection: Tuborg had placed a heavy emphasis on music and entertainment to connect with its target demographic. The brand partnered with international stars and music festivals, attempting to align itself with the global music scene. While this worked in certain markets, it failed to resonate with the Vietnamese audience. The use of international artists and events did not create the authentic connection with local culture that Vietnamese consumers were looking for. Music, while important, was not enough to build a strong, emotional connection with the audience.
- Distribution Challenges: Another key issue was Tuborg’s focus on high-end, high-energy on-trade channels such as bars, karaoke spots, and nightclubs. While this strategy worked initially, it was ultimately unsustainable for mass-market growth. The COVID-19 pandemic exacerbated this issue as bars and clubs closed, further limiting Tuborg’s distribution and sales. The brand’s limited distribution network meant it was unable to reach the broader market or capture the more casual beer drinkers who frequent restaurants and local watering holes.
By 2021, it was clear that Tuborg had missed the mark in several critical areas. The brand needed a bold, strategic shift if it was to reclaim its position in the market.
The Relaunch Strategy
In 2021, Tuborg embarked on a comprehensive relaunch strategy, which sought to address the brand’s earlier missteps and re-establish its presence in the Vietnamese market. The key focus was on rebranding, improving the product, expanding distribution channels, and launching innovative marketing campaigns.
Brand Communication Overhaul
A significant part of Tuborg’s relaunch involved a complete overhaul of the brand’s messaging. The core idea behind the relaunch was to excite young, adventurous consumers to “explore life” and be “open to more experiences.” The new campaign, encapsulated in the tagline “Why Not,” aimed to inspire consumers to embrace new experiences, much like the beer itself, which offered a refreshing take on the beer-drinking experience.
Music, while still a tool in the campaign, was no longer the sole focus. Instead, the focus shifted to a broader, more inclusive idea of exploration and open-mindedness. The new brand message was designed to appeal to the adventurous spirit of the Vietnamese youth, highlighting the importance of social connection, fun, and shared experiences.
Product Adjustments
One of the most significant changes in Tuborg’s relaunch was the adjustment of its product to better suit local tastes. The original Tuborg beer, with its higher ABV and more bitter flavor, was no longer the best fit for Vietnamese drinkers. To appeal to a wider audience, Tuborg lowered the ABV to better align with local preferences for lighter, more refreshing beers. This change aimed to make the beer more drinkable and better suited for the hot, humid Vietnamese climate, where beer is consumed in large quantities during long social gatherings.
In addition to adjusting the original product, Tuborg introduced a completely new variant—Tuborg ICE. The new variant was specifically designed to provide a more refreshing, ice-cold experience, with a lighter taste that was better suited to the tastes of the Vietnamese consumer.
Marketing Campaigns
Tuborg’s relaunch was heavily supported by innovative marketing campaigns. One of the standout initiatives was the Hidden Message Campaign, which used the beer caps as a medium for creating excitement and engagement. Each Tuborg bottle came with a cap featuring one of 200+ different messages, turning the cap into a fun, collectible item that encouraged consumers to engage with the brand. This approach sparked a sense of anticipation and excitement among the target audience, further strengthening the brand’s position as youthful and fun.
In addition to the Hidden Message Campaign, Tuborg launched UTC (Under The Cap) promotions. These promotions offered consumers rewards and incentives for purchasing Tuborg, including exclusive experiences, limited-edition items, and discounts. This initiative aimed to drive trial and build stronger connections with consumers.
Distribution Channel Expansion
To ensure the relaunch would succeed, Tuborg expanded its distribution channels significantly. The brand moved beyond its initial focus on high-end bars and clubs and began focusing more on the traditional on-trade channels that are so important in Vietnam, such as quan nhau (local drink-led restaurants) and casual drinking spots. This allowed the brand to reach a larger, more diverse audience.
Tuborg also targeted the Southern regions of Vietnam, where the beer market was rapidly growing. Through activations and events, Tuborg was able to tap into new customer bases, particularly among younger consumers.
Strategic Execution: Key Tactics
Activations & Events in the South
As part of its relaunch strategy, Tuborg launched a series of high-profile activations and events in Ho Chi Minh City (HCMC) to engage with local consumers. These activations were designed to create buzz and excitement around the brand.
The strategy involved three main layers of activation:
- Big Events: Tuborg organized large-scale events with up to 10,000 attendees in the city center. These events featured music performances, live entertainment, and engaging brand experiences, creating a strong presence in the city.
- Flagship Store Activations: Smaller, more intimate events took place at key outlets in HCMC, where influencers, artists, and DJs were invited to perform for an audience of over 500 people. These events were designed to showcase the brand’s new direction and create a connection with a younger, more trend-focused audience.
- Commando Task Force Activations: In 2021, Tuborg deployed a “commando task force” to activate over 1,000 local quan nhau. This grassroots-level activation allowed Tuborg to connect directly with consumers in their everyday environments, providing them with an authentic experience of the brand.
Additionally, Tuborg targeted the most culturally significant events in HCMC, such as the HOZO Music Festival and Ravolution. These festivals attracted thousands of young consumers, making them ideal platforms for Tuborg to showcase its new direction and engage directly with its target demographic.
Brand Ambassador: MONO
In line with its updated brand communication, Tuborg also introduced a new brand ambassador: MONO, a popular young singer with a vibrant, multi-talented persona. MONO’s energetic and youthful image resonated with Tuborg’s new message of exploration and open-mindedness. His popularity among younger audiences helped elevate Tuborg’s visibility, and his involvement in the brand’s campaigns helped strengthen the connection with the target demographic.
To further localize the brand’s international communication, Tuborg worked with MONO to tailor its global TVC to the Vietnamese market. This made the campaigns feel more relevant and culturally aligned with local values and trends.
Results: A Turnaround in Brand Volume
X5 Volume Growth
The relaunch of Tuborg in Vietnam proved to be a massive success. Within the first year of the relaunch, Tuborg’s volume grew fivefold. The changes in the product, distribution, and communication strategies resonated with consumers, leading to a surge in sales and brand visibility.
This growth was particularly significant given the challenges posed by the COVID-19 pandemic. Despite the initial setbacks, Tuborg’s strategic approach allowed it to recover and flourish in a competitive market.
Market Impact
Tuborg’s relaunch not only revitalized the brand but also strengthened its position in the Vietnamese market. The brand was able to build a strong foundation for continued growth, with its refreshed image appealing to a new generation of beer drinkers. By addressing local preferences and cultural nuances, Tuborg was able to turn its fortunes around and establish itself as a leading brand in Vietnam.
Conclusion
The relaunch of Tuborg in Vietnam is a textbook example of how a brand can successfully pivot after experiencing significant setbacks. By reevaluating its communication, product offerings, and distribution channels, Tuborg was able to reverse a five-year decline and significantly increase its market share. The brand’s success in Vietnam highlights the importance of staying adaptable and responsive to local consumer needs. With its new direction and strengthened position, Tuborg is poised for continued growth in the Vietnamese market and beyond.
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