MIDTERM ASSIGNMENT topic THE PEPSI NGÕ MARKETING CAMPAIGN

INTERNATIONAL BUSINESS ADMINISTRATION_____****_____ MIDTERM ASSIGNMENT Topic: THE PEPSI NGÕ MARKETING CAMPAIGN Instructor: Dang Thi My Dung Implementation Group: Group 2 – ML96 Member li

INTERNATIONAL BUSINESS ADMINISTRATION

_**** _

MIDTERM ASSIGNMENT Topic: THE PEPSI NGÕ MARKETING CAMPAIGN Instructor:

Dang Thi My Dung Implementation Group:

Group 2 – ML96 Member list of group 2

Table of Contents

I SOME DEFINITIONS 4

1 What is Marketing? 4

2 How about Customer Insight? 4

3 What is Marketing Campaign? 4

4 How about Strategic Approach? 5

II BACKGROUND BEFORE THE CAMPAIGN 5

1 Overview of PepsiCo before the Campaign 5

1.1 History 5

1.2 Mission and Vision 5

2 Beverage Overview before the Campaign 6

2.1 Carbonated soft drink overview 6

2.2 Vietnamese consume non-alcoholic drinks 7

2.3. Brand’s Carbonated soft drinks on social media 9

2.4 Trends on the carbonated soft drinks market 11

III CAMPAIGN 12

1 Target Audience 12

1.1 Culture 12

1.2 Age 12

1.3 Music 12

1.4 Media habits 13

2 Insight 14

3 3C 14

3.1 Company 14

3.2 Category 15

3.3 Consumer 15

4 Strategic approach 15

5 Big idea 15

6 Execution (IMC plan) 15

6.1 Packaging 16

6.2 Teaser 16

6.3 TVC 16

7 Result 18

IV REFERENCES 18

I SOME DEFINITIONS

1 What is Marketing?

Marketing refers to activities a company undertakes to promote the buying orselling of a product or service Marketing includes advertising, selling, and deliveringproducts to consumers or other businesses At its most basic level, marketing seeks

to match a company's products and services to customers who want access to thoseproducts Matching products to customers ultimately ensures profitability

2 How about Customer Insight?

A consumer or customer insight is an interpretation used by businesses togain a deeper understanding of how their audience thinks and feels Analysinghuman behaviours allows companies to really understand what their consumerswant and need, and most importantly, why they feel this way When consumerinsight research is conducted properly, it should improve the effectiveness of how

a company communicates to its customers, which is likely to change consumerbehaviour, and therefore increase sales

3 What is Marketing Campaign?

Marketing campaigns promote products through different types of media,such as television, radio, print, and online platforms Campaigns are not solelyreliant on advertising and can include demonstrations, video conferencing, andother interactive techniques Businesses operating in highly competitive marketsand franchisees may initiate frequent marketing campaigns and devote significantresources to generating brand awareness and sales

4 How about Strategic Approach?

The key word here is “valuable.” It’s what changes this definition from onethat could describe almost any form of advertising or marketing You can tell if apiece of content is the sort that could be part of a content marketing campaign ifpeople seek it out, if people want to consume it, rather than avoiding it

II BACKGROUND BEFORE THE CAMPAIGN

1 Overview of PepsiCo before the Campaign How about PepsiCo?

1.1 History

In 1965, Donald Kendall, the CEO of Pepsi-Cola, and Herman Lay, the CEO ofFrito-Lay, recognized what they called “a marriage made in heaven,” a singlecompany delivering perfectly-salty snacks served alongside the best cola on earth.Their vision led to what quickly became one of the world's leading food and beveragecompanies: PepsiCo

PepsiCo products are enjoyed by consumers more than one billion times a day

in more than 200 countries and territories around the world PepsiCo generated morethan $70 billion in net revenue in 2020, driven by a complementary food and beverageportfolio that includes Frito-Lay, Gatorade, Pepsi-Cola, Quaker, Tropicana andSodaStream PepsiCo's product portfolio includes a wide range of enjoyable foods andbeverages, including 23 brands that generate more than $1 billion each in estimatedannual retail sales

1.2 Mission and Vision

1.2.1 Mission

PepsiCo’s missions are to “ Create More Smiles With Every Sip And Every Bite

”, with the next parts adapt to whichever subject they are working for:

- For consumers: “By creating joyful moments through our delicious and

nourishing products and unique brand experiences”

- For customers: “By being the best possible partner, driving game-changing innovation, and delivering a level of growth unmatched in our industry”

- For associates and communities: “By creating meaningful opportunities towork, gain new skills and build successful careers, and a diverse and inclusive workplace”

- For the planet: “By conserving nature’s precious resources and fostering a more sustainable planet for our children and grandchildren”

- For shareholders: “By delivering sustainable top-tier TSR and embracing in-class corporate governance”

best-1.2.2 Vision

With all the smiles they have created, are creating and will create, PepsiCoenvisions it’s future self as the one who will “Be The Global Leader In Convenient Foods And Beverages By Winning With Purpose” This emphasizes the firm’s ambition as a

winner in the market sustainably while making the world a better place

So as to make this “dream” come true, PepsiCo defines a set of aspirations, which are to become Faster, Stronger, and Better

2 Beverage Overview before the Campaign

2.1 Carbonated soft drink overview

The average Vietnamese consumes around 23 liters of soft drinks per personper year These product categories account for up to 85% of the country's productionand consumption, according to the Association of Beer, Alcohol, and Beverages Thebeverage business expanded by 6.3% year over year in the first half of 2015 By

2020, this figure will have risen to approximately 8.3-9.2 billion liters per year

Fact:

With a revenue of more over 5 billion dollars in 2020, Vietnam placed 24th

in the world in terms of US beverage consumption, down 1.7% from 2019.Despite the COVID-19 pandemic and a minor drop in sales compared to

2019, non-alcoholic beverage giants from the United States, as well as some homegrown products, continue to occupy a significant share of the Vietnamese market

The existence of over 1,800 beverage production facilities demonstrates Vietnam's strong appeal in the beverage business

The non-alcoholic beverage business in Vietnam is attracting a lot of interest frominvestors The reason for this is that the internal growth rate remains impressive at 6-7% per year, whilst France and Japan are only predicted to increase at 2% per year

2.2 Vietnamese consume non-alcoholic drinks

Non-alcoholic beverages, which come in a variety of flavors, have also seen consistent development

Both indoors and out

In Vietnam, non-alcoholic beverage consumption outside the home ismore common, although the value of the shopping cart for home consumption isthree times higher

- The amount of money spent on indoor and outdoor drinking water differs as well

- Demand for drinks

According to a 2019 Worldpanel Division analysis, Vietnamese consumershave seven primary needs when it comes to drinking water In which the mostbasic desire for refreshment still reigns supreme, accounting for 25% of alldrinking occasions They also drink for various reasons, such as:

Drink with your meals (11% ) Supplementary energy (16% ) Begin a fresh day (15% ) Promotion of health (11% ) Family get-togethers (14% )

Chat with your pals (8% )

2.3 Brand’s Carbonated soft drinks on social media

Soft drinks and energy drinks (5.4 million discussions) and beer (4.7 milliondiscussions) are the most popular FMCG products on Facebook Beverage firms areholding many of the most notable promotions on Social Media (64% of discussioncontent), mobilizing a huge number of celebrities, with the benefit of youthful andcountrywide users, as well as “hot profiles” on Facebook to join.

Pepsi was the most talked about brand on social media in 2020, withapproximately 1.7 million mentions "Reunited New Year Givers" during the LunarNew Year time, a cover contest for high school students in May 2020, and a duetapp with idol Kara are just a few of Pepsi's notable projects this year Pepsifrequently came in contact with a variety of musicians, including Monstar, Jang

Mi, Isaac, and others, in order to reach out to youthful music fans Furthermore,arguments regarding Pepsi frequently arise in the content of fast food chains likeKFC, Lotteria, or theatres like Lotte Cinema…

2.4 Trends on the carbonated soft drinks market

The growing desire for healthy and sustainable products is one of the most important trends in the carbonated soft drink market Consumer preferences have evolved toward more natural, "clean label" items, such as fermented drinks, teas, lower sugar beverages, and fortified drinks with health claims In fact, carbonated beverages are becoming more popular, but because high-sugar drinks are seen as an indulgence, they are consumed only on occasion rather than on a daily basis Furthermore, the number of people who are concerned about labeling is growing In order to acquire customers' trust, businesses must also focus on information transparency and simplicity.

According to experts, the beer business could take up to two years to recover to its pre-Covid-19 and pre-Government Decree 100 state The amount of alcoholic beverage consumption is expected to reach almost 300 billion VND by 2024, with a CAGR of 9.5% over the period 2020-2024 With the majority of consumption, the beer industry will continue its leading position in the alcoholic beverage sector Furthermore,

by 2024, sales of non-alcoholic beverages and nutritional drinks are predicted to increase

by 10.5% Carbonated drinks will also see substantial sales growth, with an average annual growth rate of 11.9% in the medium term, up from 14% in 2020.

III CAMPAIGN

The Ngõ Pepsi version was produced in July, 2020, exclusively for the Northernmarket With each beautiful text that can be displayed on cans, Pepsi and creator VietMax wish to reproduce the product of a Northern Alley with strong cultural values foryoung people, anyone of any age is more receptive to the investment capital that isconsidered "traditional"

1 Target Audience

1.1 Culture

Accepting the invitation to cooperate with Pepsi brand to honor the specialculture of the North, Viet Max was inspired by the alley where he was born and raised tocreate artwork printed on its cans At the same time, Pepsi also breathed the soul ofyoung life with the music video "Small Alley, Yes Pepsi!" To inspire a more completeculture with young audiences.The footage with the image of skateboards, Hiphop Danceand the collaboration with famous rapper Mr T helps Pepsi affirm its determination tocover the market share for the world

1.2 Age

Young Vietnamese people in 18-35 year old

1.3 Music

Almost all young Vietnamese people like music Music is a magical tool for any

advertisement attracting customers effectively So “Pepsi Ngõ” takes advantage of

harmony and young culture Then they created opportunities for the North Youngers andlocal brands to tell their stories of Ngõ.

1.4 Media habits

There’s no escape from YouTube in Vietnam, whether you’re on a bus, in the gym,

or just trying to get the receptionist’s attention as you check in to a hotel YouTube is everywhere The Google-owned video search engine listed Vietnam as one

-of its five largest markets in the world Between 2018 and 2019, viewability for Youtubeads reached 97% in Vietnam Based on the results, Pepsi could see how effective itsdigital ads—especially on YouTube—were in reaching younger consumers

2 Insight

I enjoy exploring and always want to join the fun, but everything around me is

becoming monotonous (getting familiar and boring) I want to discover new interesting

things and enjoy my youth

3 3C

3.1 Company

interesting places to help young people quench their thirst, unleash their emotions, and

stir up the fun.

6 Execution (IMC plan)

It is the very first time ever culturally localized pack produced by Pepsi designed by one of the cultural icons in Vietnam, artist Viet Max

The whole campaign, consisting of two main parts, was started in July 2020:Releasing teaser Pepsi Ngõ

Revealing and clarifying the message through TVC

6.1 Packaging

Accepting an offer to collaborate with the Pepsi in order to celebrate the uniqueculture of the North, Viet Max was inspired by the alley where he was born andreared to produce artwork printed on its cans.The new sized Pepsi is 75% smallerand cheaper but is 100% bigger with the values of Northern Alley life

6.2 Teaser

On July 14, 2020, a teaser was uploaded on Facebook Young

people have shown a lot of interest in the brief teaser

6.3 TVC

All attention was on Pepsi's TVC "NGÕ NHỎ, CÓ PEPSI!" with a duration ofone minute was launched on YouTube and Facebook on July 15, 2020 The musicvideo showcased the big world in the small alleys, creating unique harmony oftraditional and young culture The scenes were shot in Hanoi, which has numerousalleys with traditional Northern activities but is entirely decorated with the colors ofyoung culture during the integration period Even more notable, the primary mediaedition this time is designed by Viet Max These factors make it simple to envision aproduct geared towards young people Footage of skateboards, Hiphop Dance, and

a cooperation with famous rapper Mr T help Pepsi demonstrate the brand's ambition

to capture this age group's market share everywhere they go

6.4 Social (Fanpage, KOLs /Influencers)

Pepsi took advantage of most digital forms, such as building interest through

KOLs on Facebook, Viral clips, PR, and so on, as well as TVC and packaging.Fanpage

Pepsi has released material as well as a TV commercial on Fanpage to enhance the campaign to reach young people more quickly and effectively.KOLs

Invite a lot of KOLs to check-in at familiar alleys throughout the North with the hashtag #PepsiNgo

The invitation of KOLs to engage in the media has attracted a

significant number of young people to Hanoi to check in at these allleys

6.5 PR

Pepsi and BWild collaborated to produce new tunes and dancing

movements that drew in more and more young people to support the campaign

Throughout the project, the various articles published increased the campaign's popularity Such as Kenh14, Zingnews, etc.

7 Result

At the MMA Smarties award 2020- adwarding innovation and creativeeffectiveness marketing award, “Pepsi Ngõ” won bronze in the category “Brand Awareness” Campaign developed to promote brand growth, development, andenrichment, as well as to generate brand awareness and familiarity among targeted customers Demonstrate how the campaign met any or all of these criteria.(Bronze)

Pepsi Ngõ created an impactful launch for total CSD in the North, great performance in media

45% VTR , an unprecedented VTR across big platforms like kenh14, the entire Zing ecosystem, etc

Pepsi gained 0.4 point share in just 45 days, won 11.5k exclusive outlets from key competition, which had never had any clear progress in the past.Pepsi was the brand of substance that went beyond coolness for the youngsters from the North

Pepsi Ngõ has created a powerful platform for the long running battle against coca-cola

Pepsi won the hearts of locals by embracing the spirit of Northern life and their unique Culture

IV REFERENCES

1 Investopedia.com, Marketing [Online]

Available from: <https://bitly.com.vn/rof9ix> [Accessed 21 September 2021]