KHÓA LUẬN MARKETING Pepsi marketing strategy in vietnam

Untitled 1 MINISTER OF FINANCE UNIVERSITY OF FINANCE AND MARKETING FACULTY MARKETING TOPIC PEPSI MARKETING STRATEGY IN VIETNAM Students Phạm Giáng Quỳnh Như 2021001710 Mai Thị Thu Hà 2021001672 Nguyễn.

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MINISTER OF FINANCE UNIVERSITY OF FINANCE AND MARKETING

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INTRODUCTION

Today's economy is developing more and more consumer demand, so businesses are constantly producing a series of products and services that surpass competitors, meet customer needs and dominate markets But for that, businesses must have the right marketing strategies As a result, businesses can bring their products closer to customers and fully convey the message or story to consumers Suntory PEPSICO Co., Ltd is the clearest evidence alone In the Vietnam market, PEPSICO has shown professional and accurate marketing activities so that most consumers can recognize PEPSICO branded products in the market The focus is on Pepsi products To affirm its position, dominating the market, PEPSICO has surpassed many major competitors to maintain its leading position in this field So why is PEPSICO successful?

To answer this question, the essay "Analysis of the marketing strategy of PEPSICO Vietnam enterprises" was conducted to find out the successful marketing strategies

of enterprises, besides making suggestions to help companies improve the effectiveness of marketing activities for products

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INDEX

PART 1: BRIEFLY OF SUNTORY PEPSICO VIETNAM BEVERAGE

CO.,LTD 3

1 The process of formation and general development 3

2 The process of formation and development in Vietnam 5

3 Pepsico's goals and resources 7

PART 2: PEPSI’S MARKETING ENVIRONMENT 8

1 Macro factor 8

2 Micro factors: 11

PART 3: MARKETING STP STRATEGY OF PEPSI 14

1 Segmentation 14

2 Targeting 15

3 Positioning 16

PART 4: MARKETING MIX STRATEGY OF PEPSI 18

1 Product 18

2 Price 20

3 Place 21

4 Promotion 22

PART 5: OFFER 30

PART 1: BRIEFLY OF SUNTORY PEPSICO VIETNAM BEVERAGE CO.,LTD

1 The process of formation and general development

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-In 1886, Bradham - a pharmacist born in 1867 in Chinquapin, Duplin County,

North Carolina - prepared an easy-to-digest drink from carbonated water, sugar, vanilla, and a little cooking oil It is sold in the area under the name "Brad's Drink"

-By 1893, Bradham changed to a new name "Pepsi-Cola", a music player,

computer, more powerful and widely available for sale

-1898 Pepsi Corporation was established, headquartered in Purchase city, New

York State, USA

-1902 - Pepsi-Cola trademark is registered

The company went bankrupt twice in World War I and 1931 during the world economic war from 1929 to 1933 After that, Charles Guth, president of Loft Industries - a chain of candy and soft drinks stores, took bought Pepsi's main business and put it up for sale in his store

-1934 - PepsiCola's sales skyrocket in the US

-1941 - European penetration

-1947 - Expands into the Philippines and the Middle East

-1964 - Diet Pepsi - the first diet beverage on the market

-1965 - Pepsi acquires Frito-Lay Corporation

-1998 - PepsiCo completes the acquisition of

Tropicana for $3.3 billion In 1998, Pepsi celebrated its 100th anniversary and launched released a new logo for the new millennium - the required image with 3 colors blue, white, red on a cold blue background, the most important point in the worldwide system of Pepsi logos

Now PepsiCo is:

• The world's leading food and beverage company

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• The company operates in nearly 200 countries with more than 185,000 employees globally

• The company has annual sales of $39 Billion

• The world's fastest-growing food and beverage company

PepsiCo provides products that meet users' diverse needs and preferences, from products that bring fun and dynamism to products that are beneficial to health and healthy living

The company includes PepsiCo Americas Beverage -PAB, North and South American Food Pepsi, Pepsi Europe, Pepsi Asia Middle East, and Africa

Main products: Besides the billion-dollar Pepsi brand, this group also owns many prominent recreational water brands such as Mirinda, 7 Up, Mountain Dew, or Aquafina filtered water

2 The process of formation and development in Vietnam

-December 24, 1991 - International Beverage Company (IBC) was

established as a joint venture between SP Co and Marcondray - Singapore with a capital contribution ratio of 50% - 50%

-1992 - Construction and inauguration of Hoc Mon factory

-1994 - PepsiCo officially entered the Vietnamese market when it entered

into a joint venture with IBC International Beverage Company with the launch of the first two products, Pepsi and 7 Up from the first date when My Skinceutation with Vietnam Nam 1994

-1998 - 1999 - This time is also at the structure about the capital changes

with owner 100% on PepsiCo

-2003 - The company was renamed PepsiCo Vietnam International Beverage

Company Many beverage products are not released such as Sting, Twister, Lipton Ice Tea, Aquafina

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-2004 - through the merger and acquisition of the Dien Ban factory, the

company expands production and business in Quang Nam

-2005 - Officially become one of the largest beverage companies in Vietnam

-2006 - the company expands production and sales of food with Poca snack

products that are used by consumers and young people

-2007 - Developing more soy milk industry

-2008-2009, after inaugurating a food factory in Binh Duong, (later separated

into Pepsico Vietnam Food Company), the company expanded the material area in Lam Dong Many new products in the beverage segment were also launched such as 7Up Revive, Lipton Green Tea; Twister

-2010 - marked an important milestone for PepsiCo Vietnam as PepsiCo

announced its continued investment in Vietnam of $250 million for the next three years 2/2010, the new host at Can Tho officially came into operation

-2012 - This year the San Miguel factory in Dong Nai in March 2012 and the

largest PepsiCo factory in Southeast Asia was inaugurated in Bac Ninh in October

2012

-April 2013 - The strategic beverage alliance Suntory PepsiCo Vietnam was

established between Suntory Holdings Limited and PepsiCo, Inc in which Suntory accounted for 51% and PepsiCo used 49% with the launch of new products Oolong Tea + Plus and Mountain Dew

The head office of the company is located at:

• 5th Floor, Sheraton Building, Saigon, 88 Dong Khoi, District 1, Ho Chi Minh City

• Tel: 08488219437 Fax: 08488219436.Hotline: (08)9100623 Website:www.pepsiworld.com.vn

• Email: webmaster@pepsiworld.com.vn

Branches:

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• Ho Chi Minh City: A77 Bach Dang, Ward 2, Binh Thanh District

• Hanoi: 233B Nguyen Trai, Thanh Xuan District, Hanoi

• Da Nang: National Highway 1A Dien Thang, Dien Ban, Quang Nam

• Can Tho: Lot 8 Main Street, Tra Noc Industrial Park, Can Tho

• Products of PepsiCo Vietnam: Pepsi, Mirinda, Aquafina, Twister, H2OH, Sting, Seven Up & SevenUp Revive, Body Naturals, Lipton, premium Snacks

source :( https://www.suntorypepsico.vn/page/lich-su-cong-ty )

3 Pepsico's goals and resources

a) Target:

Pepsico mission: “ become a leading consumer goods company, focusing mainly

on convenience food and beverage We are constantly looking for and creating healthy financial returns for our investors, creating growth opportunities, and bringing economic benefits to our employees, business partners, and the communities in which we live, work We always strive to operate based on honesty, fairness, and integrity in all our activities”

Source: ( https://www.suntorypepsico.vn/page/gioi-thieu-pepsico )

b) Resources:

• Pepsico is the second largest soft drink producer in the world with strong financial resources The 2018 financial statements had a net profit of more than VND 1,639 billion, up 15% over the same period last year At the end of 2018, Pepsico Vietnam recorded a cumulative profit of more than 3,200 billion dong

• Pepsico has the largest share in the beverage sector, with large production plants and modern production lines

• Pepsi always has new initiatives to create new products to meet the increasingly diverse needs of consumers

• Pepsi owns a team of capable and efficient employees Distribution and sales system nationwide

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• Today Pepsi is becoming more popular than ever According to the survey, 1 out of every 4 carbonated beverage products sold in the world is Pepsi In total, Pepsi sells more than 200 million products a day and this number continues to increase

PART 2: PEPSI’S MARKETING ENVIRONMENT

1 Macro factor:

a) Demographic factors:

The current average population of Vietnam is 98,135,792 people Vietnam's population currently accounts for 1.25% of the world's population and 37.34% of the population lives in urban areas In 2021, Vietnam's population is expected to increase by 830,246 people and reach 98,564,407 people by early 2022 (according

to data from the United Nations)

In the population structure of Vietnam, the age group 15-24 accounts for the majority compared to other age groups The population pyramid in 2020 is not much different from 2010, but the number of people aged 20-34 has begun to increase significantly

PepsiCo Company tends to mainly target young teenagers and especially in the age group of 15-30, so in the Vietnamese market, it is a market full of potential customers Thanks to the design image of the logo, then the famous slogan "choice

of the new generation", eye-catching products, attractive advertising campaigns These strategies have helped Pepsi become one of the most influential beverage companies in the Vietnamese market

b) -Economical factors:

According to Vietnam's economic statistics in 2020:

• GDP growth: 2.91%

• GDP per capita: 3,500 USD

• Inflation rate in 2020 increased by 2.31% compared to the average in

2019

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Vietnam's economy is developing, so consumer demand for food and drinking water is also increasing On average, each person needs about 2 liters of water per day, so the need for drinking water is essential in human life

Around the beginning of the 90s, when Vietnam began to open up the market, there was hardly a brand of soft drink in the country besides the brand "xa xi" dating from before 1975 and later with the brand name Tribeco are mostly handmade brands At that time, Pepsi started to penetrate the Vietnamese market, and immediately dominated the Vietnamese market from the South to the North All small soft drink companies in Vietnam immediately went bankrupt with a simple

trick of Pepsi, which is "big discount promotion" With low prices, plus the reputation of "world-leading" quality, Pepsi surpassed all Vietnamese competitors

in a short time After that, Pepsi proceeded to establish a nationwide distribution system In addition to the agents, Pepsi has access to most of the cafes, which promote and consume a large amount of Pepsi soft drinks

Source:(https://vef.vn/the-gioi/2011-12-24-coca-pepsi-cuoc-thu-hung-tai-thi-truong-

However, now things are not as easy as before Now, domestic manufacturers are also developing strongly, plus the fierce competition of Coca - Cola, so Pepsi also has difficulty in consuming In addition, the economic situation

is also affected by the current Covid epidemic, which has made it difficult for Pepsi managers to have effective marketing strategies

c) Political and legal factors:

In Vietnam:

By accumulating and supplementing international laws: Anti-monopoly law, intellectual property rights, patents, etc., Vietnamese law is gradually improving to create a healthy competition between domestic and foreign companies country

The State's investment support and encouragement policies create opportunities and challenges for PepsiCo and businesses in the Vietnamese market:

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Opportunities: Expanding production scale nationwide thanks to borrowing capital from state banks In addition, through services and advertising channels to bring their products close to the public

Challenges: Fierce competition from other corporations In addition, it is necessary to ensure the demand for food safety from consumers, and to advertise honestly and with culture in the context of an enhanced consumer status

d) Sociocultural factors:

Vietnamese consumers have the following characteristics:

+ Focus on health: Vietnamese people's eating habits are changing more and more in a more positive direction In addition to eating well, eating well, Vietnamese consumers are also interested in eating to stay healthy Therefore, Pepsi had to introduce policies that guarantee product safety and quality and put more emphasis on health issues

+ Vietnamese tastes are different from Westerners Vietnamese consumers prefer carbonated soft drinks with rich sweetness, strong carbonate concentration creating a feeling of refreshment, while Westerners prefer a lighter taste Pepsi has grasped that and immediately met the taste habits of Vietnamese people

+ Vietnamese people love football and always follow domestic and foreign football matches, especially football matches of the national team Pepsi has captured this culture and launched appropriate advertising shows The most obvious

is when launching the slogan "Drinking Pepsi is to support the Vietnamese national team to reach the international arena", Pepsi's sales immediately skyrocketed

+ Young people today are increasingly interested in entertainment with video games and often follow e-sports tournaments This is an opportunity for Pepsi to attract and receive the attention of young people if it captures this need In fact, not only Pepsi but heavy competitor Coca Cola, or even in the field of food McDonald's has also entered the Marketing war, seeking to put its products in advertising in games electronic

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e) Scientific and technological factors:

The company has 2 factories in Hoc Mon (5 can and bottle lines, with a capacity

of 220 million liters/year), Quang Nam (1 bottle line with a capacity of 30 million liters/year) with a complete bottle and canning system Fully automatic, has an advanced quality control system for food hygiene in the world In 2010, PepsiCo invested USD 30 million factory in Can Tho This is the largest beverage in factories in the Mekong Delta equipped with modern equipment With four modern production lines with a total capacity of 12 million barrels, this factory is one of five PepsiCo beverage production facilities in Vietnam The equipment at this factory is more advanced than PepsiCo's existing factories in Vietnam The factory employs

300 direct employees, and about 1,000 other employees participate in the activities

of Pepsico's system…

In 2012, the PepsiCo factory with the largest scale in Southeast Asia was inaugurated in Bac Ninh This demonstrated Pepsi's ability to develop in the Vietnam market very well compared to its competitors

Based on those four factors, Pepsi has implemented sales development strategies:

Among PepsiCo's brands, Pepsi serves as the company's dominant brand as the company derives and succeeds from this beverage This is a drink that is loved

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by young people around the world When coming to Vietnam, this drink has been well received by Vietnamese youth To hit the mentality of love for football and the

pride of the Vietnamese nation, Pepsi organized "Football Day" through a TV

advertisement show, with the image of a favorite Vietnamese football player at that

time, performing "tossing ball" with the top players in the world

The campaigns "Football Day", "Drinking Pepsi is to support the

Vietnamese national team to reach the international arena" or the image of Pepsi

Music "Stimulating music, connecting passions" have attracted a large number of people Invite young people to join, with "Explore - Challenge - Create more" as

the very message that this brand always wants to encourage and send to them

With the motto "We cannot be a successful Company if we are not a good member of the community", PepsiCo Vietnam has contributed to contributing and supporting society Charity programs and community activities such as "Pepsi Charity Golf Tournament", participating in supporting "Singer Festival", sponsoring competitions for young talents such as Dynamic, Road to Success, scholarship programs for talented students, overcoming difficulties… It is also PepsiCo Vietnam's commitment to contribute youth to the community

However, Pepsi also faced many challenges Vietnamese consumers are becoming more and more demanding in choosing their drinks The issue of taste is more concerned but must ensure about health needs Carbonated drinks like Pepsi or Coca-Cola are gradually disappearing in the choice of Vietnamese consumers This

is a challenge not only for soft drink brands in Vietnam including Pepsi

The purchasing behavior of manufacturing enterprises is influenced by the following factors:

• Environmental factors

• Organizational factors

• Relational factors

• Personal factors

To build relationships with corporate organizations, PepsiCo has implemented a campaign to reward businesses with a large number of sales While creating a relationship between the corporation and other businesses, it also stimulates the company's sales

b) Competitors:

Some popular brands include Coca-Cola, Tan Hiep Phat, Wonderfarm

In the world market, including Vietnam, Coca-Cola is always Pepsi's biggest competitor In the global consumer market, Coca-Cola products are always higher than Pepsi However, in Vietnam, especially in Ho Chi Minh City, the opposite is true

Therefore, Pepsi has to improve its position through effective marketing strategies, aiming to capture a higher market share in Vietnam than Coca-Cola

Today, Pepsi's competitors are no longer just Coca-Cola Although still in a relatively small field, such as 0-degree green tea, C2… is also growing and has a position in the Vietnamese market However, these competitors face a number of difficulties, which are large capital sources and customer loyalty

Two factors that are difficult for competitors are what PepsiCo Vietnam holds Therefore, to be able to meet the needs of customers, PepsiCo must continuously research the changing needs with the development of science and technology Thanks to these things along with the relentless efforts, Pepsi has also received trust from customers

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c) Supplier:

Road: From Vietnam and Thailand

Flavor: Imported from the US

Color: From Taiwan

PART 3: MARKETING STP STRATEGY OF PEPSI

1 Segmentation

Vietnam is a developing country with an increasing standard of living That's why this is a potential market for the beverage industry, but it's not always a good thing to "eat the whole pie" Therefore, Pepsi has segmented the Vietnamese market

in two main forms:

a) Geographic segmentation

Pepsi always tries to expand the market across the country, especially thrives in the South and gradually dominates the North market Currently Pepsi has 6 factories with large scale, including Bac Ninh, Can Tho, Dong Nai, Quang Ninh and 2 factories in Ho Chi Minh City Besides, Pepsi also distributes its products with chains of convenience stores, supermarkets, fast food, etc That has helped Pepsi always be present everywhere from south to north, from urban to rural area villages, from restaurants to sidewalks,

Pepsi is preferred by the South because of the same reason

The climate in the South is hot and humid, so the body does not drain, causing heat, so Southern people love sweets and like to drink ice water to cool down quickly Therefore, Pepsi has an advantage when it comes to having a cool blue color that brings a feeling of freshness on hot days

b) Demographic segmentation

2 Targeting

Based on market segmentation, it has been shown that Pepsi's target segment is 15-30 years old, they are young people who are active, like sports, parties and have high demand for beverage consumption In order to reach closer to young people Pepsi has adopted advertising methods such as promoting, advertising on social networking sites to provide more coverage to reach young people For example, Pepsi has established relationships with movie stars, sports figures, and celebrities

to represent its products, as well as recent advertisements featuring the popular music group Black Pink

Bringing in high aspiration is to become a leading company in the production of consumer goods, focusing mainly on consumer food and beverage Pepsi started to invade, expanding the target market with new product forms such as Pepsi lemon calorie zero for people who like to drink soft drinks but are concerned about the

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amount of sugar Besides, the cooperation with other brands such as KFC, Subways, etc Has spread Pepsi to many people With an effort to always refresh its image, Pepsi is increasingly young and modern to suit consumers, thus helping Pepsi to maintain its important basic identity image So far Pepsi has kept its target market mainly young people regardless of any business field

Image differentiation

Pepsi has a quite special logo, no matter from any angle, you can see this is a cheerful smiley face, showing the youthful, dynamic spirit that Pepsi is aiming for The color of the logo is 3 main colors: red, white, blue combined with white, the brand name reminds us that this circle is always in motion That movement makes the circle "open" to show openness and intimacy The blue color chosen by Pepsi as the background is also a difference to distinguish it from Coca

Brand positioning

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In 1958, Pepsi officially targeted its target - young people through the ad "Be Sociable, Have a Pepsi" and in 1961 with the slogan "Now It's Pepsi for Those Who Think Young" Pepsi directed more towards the user personality here Pepsi only focuses on users with young souls, not on the current age

Pepsi really exploded in 1963 when they launched the "Pepsi Generation" campaign with the slogan "Come Alive, You're in the Pepsi Generation" The very creative "Pepsi generation" campaign has opened up a new perspective that shows that advertising is no longer dependent on price or product appearance, but also on consumer behavior The campaign has excellently expressed the style of the new man, the style of the new generation By 1980 Pepsi succeeded as the best-selling brand and became more and more successful with the right tactics aimed at "youth" and "freshness" From 1906 to 2007 Pepsi had 21 slogans In general, Pepsi still kept its identity and values throughout its years of operation

Competitor

Coca-cola's brand identity does very well with the characteristic red color accompanied by the luxurious white color of the brand name, which is easy to remember and easily identifiable to consumers Although Coca-cola entered the market after Pepsi, it is very smart to conduct a retail distribution network to reach consumers quickly Besides, Coca-cola gives consumers many emotions about traditional values through advertising In the Vietnamese market, Pepsi and Coca are two equal competitors, the competition in the market of the two giants (Pepsi - Coca-cola) depends mainly on the business strategy and marketing strategy of each company group

In addition to Coca-cola, there are many potential competitors to Pepsi Currently, the most potential competitors are 00 lemon green tea and C2 green tea

In the past, green tea has been very popular with Vietnamese people because of the health benefits that green tea brings such as anti-aging, weight loss, cancer prevention, heart disease, etc Besides, drinking green tea seems to as an indispensable thing in the life of Vietnamese people Therefore, these two brands