Why AB InBev, Heineken and other global Brewers target emerging markets such as Vietnam? (250 to 300 words)

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EXPERT ANSWER

The answer to the questions why big international alcoholic brands and brewers such as AB InBev, Heineken and others are targeting the emerging markets such as Vietnam can have several dimensions. First of all it is due to exchange of cultural ideas and views. The influence of western culture has a greater bearing on the choice of the product which people will demand. Another reason us related to demography which says that population specially the chunk of young population is increasing so these big brands are focusing in Vietnam to attract these youth with the use of market segmentation strategy. Not interms of demography the segmentation is also in economic terms where there are different alcoholic products as per the income of the consumers. The improvement in standard of living and increase in the per capita income of the people has also been the reason why these brand are investing heavily in growing market economies because they have the potential markets.Cultural exchanges have been one of the reasons for the changes in taste and preferences and thus attracting these firms in Vietnam.

It is also the case because Vietnam is one of fastest growing economy with the rising number of middle class. Apart from this the Asia is also a big and potential market. On an average per person expenditures in Vietnam constitutes $300 on beer. So there are huge possibility as the economy has a growing market so it is beneficial for firms to exploit the opportunities that is why Vietnamese beer market is crowding out of foreign brands and giants.