Tan Hiep Phat's viewpoints on the edges of local companies over multinationals
	Tan Hiep Phat's high goals and ambition to out-compete multinationals
	Thanh Quy Tran's tough childhood and early years into business

Tan Hiep Phat's Deputy CEO Phuong Uyen Tran

How does someone take a good business idea, turn it into a viable company, and over time become a national, regional, or global champion? My parents created one of Vietnam's leading companies through a combination of talent, hard work, and simply being in the right place at the right time.

But there are several guiding principles all companies should abide by if they want to be successful. They may seem obvious, and yet so many companies fail to adhere to them. It normally catches up with them in the end. This part of the book explains what they are and how THP lives by them.

Setting prices is crucial

One of the most basic elements for any brand is its price, the second "P." The price determines the company's profit margin and has a profound impact on the marketing strategy it needs to deploy to sell it. When setting a price for any product, companies need to remain keenly attuned to the value customers attach to it, otherwise flown as the price-to-value ratio. It is key for this particular "P".

Getting the price-to-value ratio wrong was the fundamental mistake THP made with Laser Beer in 2004. At that point, Heineken controlled the largest share of the premium beer market, and my father wanted to compete for head-on by producing a draft beer in bottled form. Instead of going to a restaurant, consumers would be able to enjoy the fresh taste of beer at home.

Phuong Uyen Tran and her father

He invested in aseptic bottling technology, which meant the beer did not need to be pasteurized and would retain its fresh taste. The target audience was high-income earners, and we believed they would be prepared to pay a premium. So, we priced Laser Beer at VND9,500 per bottle, compared to VND9,000 for a Heineken.

Our large investment meant we needed a pricing proposition for Laser Beer, but pricing above a competitor proved to be a challenge. Things then went from bad to worse when he found it hard to distribute the beer. Many restaurants had exclusivity contracts with competitors like Heineken, which prevented competing products from being distributed.

THP sued to overthrow the anti-competitive policies introduced laws The story was even picked up by the BBC costs of the battle would o BBC. But it soon became clear the legal outweigh the benefits. Soon after, the Vietnamese parliament. However, it took some years for re on anti-competitive practices. could be executed effectively.

Mutually Beneficial Partnerships, one of Tan Hiep Phat's core development criteria With Tan Hiep Phat, multinationals have been welcomed and done much to boost the economy, as economies benefit from having companies of all different sizes ...

Sharing experience, the key factor for THP Group's development From Tan Hiep Phat's perspective, sharing their experience with aspiring entrepreneurs helps achieve one of THP’s strategic goals to benefit the local community and country ...

Phuong Uyen Tran's mother idea behind Zero Degree Green Tea "Her solution was to apply the personal touch. She always remembered her customers' names. No sound is sweeter to most people", Phuong talked about her ...