Pick a company as completely as possible, characterize its brand portfolio and brand hierarchy how would you improve the company’s branding strategies

The history of Suntory PepsiCo Vietnam Beverages Company with 8 highlights throughout its background...4 Figure 2.. The brand hierarchy of Suntory PepsiCo Vietnam Beverage...12 Figure 4.

TIEU LUAN MOI download : skknchat@gmail.com

I Introduction 4

II Brand Portfolio 7

III Brand Hierarchy 11

IV Improving the company branding’s strategy 15

V Conclusion 21

VI References 22

Figure 1 The history of Suntory PepsiCo Vietnam Beverages Company with 8 highlights

throughout its background 4

Figure 2 Suntory PepsiCo Vietnam Beverage 5

Figure 3 The brand hierarchy of Suntory PepsiCo Vietnam Beverage 12

Figure 4 The changes in packing of two products (Sting, Aquafina) 15

Figure 5 Some environmental construction was run to raise awareness 16

Figure 6 Vòng Tay Nhân Ái activity 17

Figure 7 Mùa Hè Xanh, Tiếp Sức Mùa Thu activities 17

Figure 8 The Water Hope - provides a clean water system for the community and protects the sea 18

Figure 9 Join hands to clean up the coast of Vietnam 18

Figure 10 Lavie’s bottles are made of 50% of recycled plastics 19

Figure 11 Coca-Cola Disrupt 2022 Competition 20

Suntory PepsiCo

I Introduction

Figure 1 The history of Suntory PepsiCo Vietnam Beverages Company with 8 highlights

throughout its background.

On December 24, 1991, the International Beverages Company (IBC) wasestablished In 1994, PepsiCo officially entered the Vietnamese market when it enteredinto a joint venture with IBC International Beverage Company In 2003, the company wasrenamed PepsiCo Vietnam International Beverage Company In 2004 through the mergerand acquisition of the Dien Ban factory, the company expanded production and business inQuang Nam In 2007, SPVB further developed soy milk products In February 2010, thenew factory in Can Tho officially went into operation The largest PepsiCo factory inSoutheast Asia was inaugurated in Bac Ninh in October 2012 In April 2013, the strategicbeverage alliance Suntory PepsiCo Vietnam Beverage (SPVB) was established betweenSuntory Holdings Limited and PepsiCo Inc

Figure 2 Suntory PepsiCo Vietnam Beverage.

Suntory PepsiCo Vietnam Beverage Company Limited (SPVB), 100% foreigncapital, specializes in manufacturing non-alcoholic beverages and mineral water Theprinciples of quality control of input materials and processes follow the standards ofSuntory Holdings Limited - one of the largest beverage groups in Japan, and PepsiCo - one

of the leading beverage corporations top of the world, always appreciated The company’smission and vision are to continue strengthening and maintaining a leading position in thebeverage industry while living with the company’s values With a passion for maintaining

“Quality Commitment” and meeting the market’s increasing requirements, the companyhas constantly improved production processes, expanded factories, and successfully builtcustomers’ trust for SPVB In the future, SPVB will continue to pursue the goal ofsustainable development, bringing benefits to the company’s employees and businesspartners and contributing to the community where the company does business

This assignment will initially analyze the brand portfolio and brand hierarchy ofSPVB Then, some recommendations for SPVB to improve the company’s brandingstrategies before concluding the study.

II Brand Portfolio

A brand portfolio is defined as the leading brand of a company that covers all otherbrands or companies operated by a company A large company usually possesses variousbrand names to introduce products to fulfill the requirements of different market segments

A brand portfolio also helps remove customers’ confusion about the origin of a brand byshowing all the outcomes of the brand and their child brands

About Suntory PepsiCo, as a portion of the international food and beverage brand,has a portfolio of diverse types of drinks that can fulfill consumers’ different demands.Unlike their mother brand PepsiCo, Suntory PepsiCo only concentrates on developing anddistributing beverages for Vietnamese markets The portfolio comprises 12 brands dividedinto seven distinct categories to satisfy as many customers’ demands as possible Hence, itenables PepsiCo’s drinks to be consumed anytime

★ Coffee: the daily behavior of having coffee for Vietnamese people has existed for

decades; however, nowadays, young people and millennials seek an alternative product thatthey can purchase at convenience stores for a quick go As one of the leading Ready-to-drinkCoffee Brands in Japan, Boss Coffee, which expertly harnesses the ingredients from

coffee beans 100% authentic, is brought to Vietnam to fulfill the need of themarket With its rich coffee taste, customized to best fit with strong Vietnamesetaste, Boss coffee is a perfect go-to choice for busy Vietnamese young workingadults

★ Carbonated soft drinks: This category is the most loved and consumed product in

Vietnam, led by Pepsi This internationally renowned cola-flavored carbonated soft drinkinherits numerous long-standing historical values In addition, 7-Up, together with Pepsi, hasdominated the Vietnam beverage market for a long time with fantastic lemon flavor filled invarious bottle sizes from 320ml, 390 ml, 1,5l

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Besides, Mirinda, Mountain Dew, and Gatorade are the part of

this category that account for most of the brand revenue from

the Vietnam market

★ Energy drinks: Sting is the only representative in this category; however, it has

dominated other brands with its distinct flavors and design, which attract consumers andsatisfy their tastes

★ Tea: Lipton is the number one tea expert globally, with more than 100 years of

experience researching and manufacturing the best tea according to the worldwideinternational stands, and in Vietnam, it is not exceptional The other tea brand also well-known in Vietnam is Tea+, initially the first Suntory brand to launch in Vietnam in August

2013 With four different flavors to meet a variety of needs, this product assists in thesuppression of fat absorption, offering users a healthier lifestyle

★ Bottled water: Aquafina and Revive are so familiar to Vietnamese people as they

appear in the market for a long time and are consumed

daily The other product that is gradually spreading in

the market is Good Mood, which was launched in

Vietnam in April 2019, pioneering to establish of a new

category of Value Added Water by optimal technology

combining clear water and natural ingredients, adjusting

to suit Vietnamese people’s taste

★ Juice drink: Twister, the number one fruit juice expert globally, and was Vietnam’s

No.1 brand in the juice industry in 2020 in terms of value and output Despite having severalflavors, it is mainly known for Orange Fruit Pulp which comes in convenient packs from320ml can, 350ml pet, 455ml pet, and 1l pet

★ Refreshing Malty Beverage: a new concept of non-alcoholic beer, which many

brands pursue, and PepsiCo also developed their product, All-free, the barley-flavored

beverage First introduced in Vietnam in 2021, with the signature barley flavor, no sugar, no calories, All-free is the perfect substitute for traditional beer for those who want to experiencebeer but are allergic to alcohol

Usually, four types of brands make up the average brand portfolio: flanker brands,cash cow brands, low-end entry-level brands, and high-end prestige Each category has apurpose, and in many circumstances, a company will build and sustain brands that servedifferent functions to complement each other Suntory PepsiCo also has some of thesetypes of brands:

● Flanker brand: A flanker brand is a new brand launched by a firm that already

owns a well-known brand in the same product area By targeting a distinct group ofconsumers, the new brand can compete in the category without jeopardizing the old item’smarket share

(Suntory), which has just been released on April 2021, with an ultra-light, ultra-crisp, andultra-refreshing taste This exciting drink has 0.0% alcohol, no sugar, no calorie and issegmented in the Refreshing Malty Beverage category for people who love to drink beer but

do not want to be drunk

● Cash Cow: is a brand already strong in the market, bringing in a sustainable

revenue stream without spending too much money on marketing campaigns

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➔ Example: The cash cows of Suntory PepsiCo are Aquafina, Tea+, Twister,

Sting, Pepsi, and 7-Up Six products as mentioned above are considered cash cows of the

company since consumers often buy them when they are thirsty (Aquafina), when they are atthe internet cafes (Sting), when they want something to refresh after work/ study (Tea+,Twister), and when they are in a party or eating fast food (Pepsi, 7-Up)

● Low-end entry-level brands: A low-end entry-level brand is added to a portfolio

of brands to be supplied at a lower price than the portfolio’s other products or services Theconcept behind low-cost entry-level brands is to entice buyers

Goodmood), Aquafina is cheaper than the other two products So that Aquafina is the

low-end entry-level brand of the company

III Brand Hierarchy

Brand hierarchy assists in displaying the number and nature of common anddistinctive brand elements, featuring variations throughout the company’s product orservice ranges The brand hierarchy shows the graphic brand elements in ordering andgraphically refers to the entire branding strategy of the complete portfolio

A brand may have multiple hierarchy levels, and there are four levels, respectively:Corporate or company brand, Family brand, Individual brand, and Modifier

● Corporate brand: is at the highest level of the brand hierarchy At this level, all

products and sub-products are linked to one cohesive and consistent image, naming, or anidentity structure Using corporate brand equity to create brand recognition, each product’smessage must express the company’s value proposition homogeneously

● Family Brand: The company’s brand name will be linked to one or more

product or service categories, and they will be marketed under that name

● Individual Brand: At this level, the company is associated with one product

category only and has its unique brand name, image, and identity They customize anddevelop their separate marketing programs to build their brand equity, and if the brand fails,there will be less danger to other brands and the corporation itself

● Modifier: is to distinguish the product, allocate a specific item, model type,

version, or configuration of a product

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Figure 3 The brand hierarchy of Suntory PepsiCo Vietnam Beverage.

Since Suntory PepsiCo Vietnam Beverage (SPVB) is a joint venture betweenPepsiCo Inc (USA) and Suntory Holdings Limited (Japan) in Vietnam, the company’sproduct range is a combination of the two There are four different levels in SuntoryPepsiCo Vietnam Beverage hierarchy:

● Corporate Brand: PepsiCo Inc., and Suntory Holdings Limited.

● Family Brand: PepsiCo and Suntory produce and run two different kinds of

beverages separately, creating a diverse product portfolio for their target customers WhileSuntory Holdings Limited commits “to create harmony with people and nature” (Mizu ToIkiru), PepsiCo’s foundation is “Performance with Purpose,” - demonstrating our belief thatthe company’s success will always be closely linked to the sustainability of the surroundingenvironment So, SPVB is pursuing the goal of sustainable development, benefiting thecompany’s employees and business partners, and contributing to the communities in whichthe company operates

○ Oolong TEA+ (4): Oolong TEA+ (PET 350ml, (PET 455ml, PET 1L),

Oolong TEA+ Lemon ((PET 350ml, PET 455ml), Oolong TEA+ No Sugar (PET 455ml),Oolong TEA+ Matcha (PET 455ml)

○ Good Mood (2): Good Mood Water with Yogurt taste (PET 455ml), Good

Mood Water with Real Orange extract (PET 455ml)

○ BOSS Coffee (2): Black Coffee, Milk Coffee with the size of CAN 180ml.

○ Lipton tea (2): Lipton Green Tea with Honey Lemon Flavor (PET 350ML),

Lipton Black Tea with Lemon Flavor (PET 455ml)

○ Aquafina (2): Aquafina pure water (PET 500ml, PET 355ml, PET 1500ml,

PET 5000ml), Aquafina Soda (CAN 320ml)

○ REVIVE Electrolyte Drink (2): Revive Isotonic Original, Revive Salted

Lemon in three sizes (PET 390ml, PET 500ml, CAN 330ml)

○ Twister (2): Tropicana Twister Orange Fruit, Tropicana Twister Passion

Fruit in different sizes PET 350ml, PET 455ml, PET 1L, Can 320ml, RGB 240ml

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○ Pepsi (3): Pepsi, Pepsi No Calorie, Pepsi No Calorie with Lemon Flavor in

different sizes PET 330ml, PET 390ml, PET 1,5L, CAN 320ml, RGB 300ml

○ Sting (3): Sting Energy Drink (PET 330ml, CAN 320ml, RGB 240ml), Sting

Energy Drink with Red Strawberry Flavor (PET 330ml, CAN 320ml, RGB 240ml), StingEnergy Drink with Coffee Flavor (PET 330ml)

○ Mirinda (4): Orange, Sarsi, Soda Cream, and Iced Tamarind flavors in

different sizes (PET 330ml, PET 390ml, PET 1,5L, CAN 320ml, RGB 240ml)

○ Gatorade (2): Gatorade rehydrating, Gatorade Lemon Flavor with the size

of PET 500ml

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IV Improving the company branding’s strategy

Besides the ordinary marketing strategies such as product advertisement, TVC,social media marketing…, Suntory PepsiCo’s branding strategy also focuses onSustainable Development with three main activities: Sustainable packaging, Giving back

to society, Protecting water resources and the environment

● Sustainable packaging: In 2018, Suntory PepsiCo launched a new design of

Aquafina mineral water bottles to reduce plastic waste and reduce the weight of Sting’spackaging and a few other bottles to save plastic in the production process

Figure 4 The changes in packing of two products (Sting, Aquafina).

They also collaborated with the Vietnam Student Association (Hội Sinh viênViệt Nam) to recycle plastic bottles… into brick There were nine toiletconstructions from plastic-bottled brick, which helped reduce 25% of theconstruction costs, reduce 4300 wasted bottles and 25 kilograms of shreddedplastics, and ensure water sanitation for the children

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Figure 5 Some environmental construction was run to raise awareness.

● Giving back to society: During the process of formation and development,

Suntory PepsiCo has brought a lot of value to the community through activities such asloving arms (2012 - 2020), offering policies to support the young generation through socialactivities and events such as Vòng Tay Nhân Ái, Mùa Hè Xanh, Tiếp Sức Mùa Thi…

Figure 6 Vòng Tay Nhân Ái activity.

Figure 7 Mùa Hè Xanh, Tiếp Sức Mùa Thu activities.

● Protecting water resources and the environment: They conduct education on

water resource conservation and protection through the “Mizuiku” program to propagate theawareness of water resource protection among elementary school students In addition,Suntory PepsiCo provides clean water to the community in Quang Nam province, organizescampaigns to clean up Vietnam’s coastline, save energy, and treat water in its productionprocess