Final report coca cola vietnam’s sales plan 2024

Overview about coca cola Coca-Cola is the world's most famous carbonated soft drink brand, invented by pharmacist John Styth Pemberton in Columbus, Atlanta.. Coca-Cola's beverage brands

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Ministry of Education & Training University of Economic and Finance Ho Chi Minh City

Lecturer: Nguyễn Tiến Huy

Reporter: Nguyễn Thị Lan Trinh

Student code: 205017696

Class: A04E

Ho Chi Minh, Tuesday, October 10, 2023

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Nguyễn Tiền Huy me (CNG fg omer Nguyễn Thị Lan Trinh

TABLE OF CONTENTS

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CHAPTER 1 COCA COLA

1.1 Overview about coca cola

Coca-Cola is the world's most famous carbonated soft drink brand, invented by pharmacist John Styth Pemberton in Columbus, Atlanta He created the unique formula for Coca-Cola, using coca leaves and cola nuts The brand's name can be simply understood as "Coca" from coca leaves and "Cola" from cola nuts, the two main ingredients of Coca-Cola The name was coined by Frank Mason Robinson, Pemberton's assistant After John S Pemberton took the syrup he had invented to the largest pharmacy in Atlanta to sell, his assistant, Frank M Robinson, immediately named the famous Coca-Cola brand based on the two main components of the syrup, "coca leaves" and "cola nuts" which remains renowned to this day

1.2 Coca cola Viét Nam

Coca-Cola is one of the most renowned international brands in Vietnam Coca-Cola Vietnam currently has factories located in Ho Chi Minh City, Da Nang, and Hanoi, creating around 4,000 direct jobs as well as 6 to 10 times more indirect employment through its supply chain activities With the goal of becoming a comprehensive beverage company, oriented towards consumers, the company continuously innovates and offers a wide range of high-quality beverages, including low-sugar and sugar-free options It also diversifies its product portfolio and expands its business coverage nationwide

Coca-Cola's beverage brands in Vietnam include Coca-Cola, Coca-Cola Light, Coke Zero, Sprite, Fanta, Minute Maid Nutriboost, Minute Maid Teppy, Schweppes, Dasani, and Aquarius They also produce bottled Fuzetea+ tea, canned Georgia coffee, and Coca-Cola Energy drinks Viewing sustainable development as the core of its business activities, Coca-Cola invests in community projects with significant impact, aligning with Vietnam's priorities in sustainable future development These projects involve conserving water resources and

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1.3 Mission

Convey meaningful messages in product communication: advertising campaigns during festivals with messages of unity and togetherness, Love Story campaigns inspiring people about environmental protection

Create new and unique potential values when entering the market Coca-Cola always aims at permanent potentials and growth Coca-Cola's design style has built a company with big trends and visions

Regarding people: Coca-Cola aspires to provide the best working environment, inspire courage, and strength

About product models: Bringing the best product models to the international market, creative innovation ideas, and adaptation to future market demands

Strategic partners: Building sustainable relationships with mutual benefits

Profit: Maximizing profit margins and continuous growth

Moreover, Coca-Cola is also researching, studying, and investigating the production of other beverages such as coffee and beer for the market Besides soft drink production, Coca-Cola also participates in the online music market by launching online music products under its own brand name with over 250,000 songs These online songs are sold through the internet with the potential to expand into a commercial business scale and serve as advertisements for the primary commercial business, soft drink production

1.4 Vision

Coca-Cola is the world's number one soft drink brand Today, the Coca-Cola Corporation has successfully expanded its market with a variety of beverages, starting with carbonated drinks, and later including fruit juices, sports drinks, mineral water, tea, and a few other types Among the non-alcoholic beverage brands worldwide, Coca-Cola owns up to 15 Every day, Coca-Cola sells more than 1 billion drinks, and Coca-Cola products are often present in consumers’ meals Coca-Cola is now present in almost every continent globally and can be recognized by most of the world's population (nearly 91% of the world's population recognizes Coca-Cola's red and white logo) Since its establishment, Coca-Cola has always followed a grand mission and

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implemented long-lasting potentials: entering the international market, researching, and launching new products

1.5 History

In 1885, the first Coca-Cola logo was designed by Frank M Robinson

In 1892, the first president of the Coca-Cola soft drink company bought out Pemberton's share of the company

In 1894, bottled Coca-Cola products were introduced for the first time

Starting from 1899, the company of entrepreneurs Benjamin Franklin Thomas and Joseph Brown Whitehead became the first distributors of bottled Coca-Cola in the world

By 1909, there were 379 Coca-Cola plants in operation to supply the market

Since then, Coca-Cola has become familiar to consumers and is present in more than 200 countries, gradually becoming a world-famous brand

1.6 Product

Coca-Cola offers a diverse range of beverages, including carbonated drinks like Coca-Cola Original, Coca-Cola Zero Sugar, and Coca-Cola Light, catering to different preferences Their portfolio extends to Sprite with various lemon-lime flavors and Fanta, offering a variety of fruity options They also provide fruit juices like Nutriboost and Minute Maid For hydration and tea lovers, Dasani and Fuzetea offer refreshing choices Active individuals can opt for Aquarius sports drinks This extensive selection showcases Coca-Cola's commitment to satisfying a wide range of consumer tastes and needs

¢ Carbonated beverages:

* Original Coca-Cola

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" Sprite Lemon Flavor 320 mL

" Sprite Natural Lemon Flavor 390 mL

* Sprite 3D Lemon Flavor 600 mL

" Sprite Lemon Flavor 1.5 L

" Fanta Orange Flavor

" Fanta Cream Soda Flavor

"Fanta Apple Flavor

" Fanta Blueberry Flavor

" Fanta Grape Flavor

¢ Fruit juices and fruit-based beverages:

" Nutriboost Strawberry Flavor

* Nutriboost Orange Flavor

"Minute Maid Splash Orange Juice

= Minute Maid Teppy Orange Juice with Pulp

¢ Bottled water and tea:

"Peach and Chia Seed Tea

= Lemon and Chia Seed Tea

= Lemongrass and Chia Seed Tea

* Wintermelon and Monk Fruit Tea

® Sports and energy drinks:

«Aquarius with gas

» Zero-Calorie Aquarius

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Nguyễn Tiến Huy mục (2/22 coM°^xv Nguyễn Thị Lan Trinh

CHAPTER 2 SALES ORGANIZATION

In order to gain a deeper understanding of the specific organizational structure and supply chain

of Coca-Cola in Vietnam, we will conduct a detailed analysis to provide relevant insights for their business development strategy

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other hand, TCB takes on the roles of production, inventory management, distribution, and related services for Coca-Cola products This division may pose challenges in quality control and ensuring the continuity of the production chain

This specific analysis will assist Coca-Cola Vietnam in identifying strengths and weaknesses within their current organizational and supply chain model Consequently, it will help them propose more effective business development strategies for the future

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CHAPTER 3 CUSTOMER TARGET

3.1 Demographic

Vietnamese consumers exhibit several characteristic traits:

- Emphasis on Health: Vietnamese individuals are increasingly concerned about nutrition and well-being in their daily diets They prioritize healthy and safe eating practices

- Preference for Strongly Flavored Carbonated Drinks: Vietnamese tastes often favor carbonated beverages with distinctive and intense flavors, featuring high gas levels for a refreshing experience This differs from Western preferences, which lean towards milder- flavored soft drinks

- Connection to Tet Holidays and New Year Experiences: For Vietnamese people, the Tet festival is a significant time of the year, and they typically seek products and experiences related to this occasion For example, advertising campaigns often use the golden swallow symbol to establish a connection with springtime and convey messages of unity, sharing, and hope

In developing products and marketing strategies, businesses should pay attention to product safety and quality to meet the demands of Vietnamese consumers Furthermore, they need to understand and respect the unique taste preferences and market sensibilities of the Vietnamese market

Coca-Cola is the most recognized soft drink brand, with a recognition rate of 61.3% When it comes to carbonated soft drink brands in Vietnam, 61.3% of those surveyed immediately think of the Coca-Cola brand, and the overall brand recognition is nearly absolute at 99.1% The two brands closely following Coca-Cola in terms of overall brand recognition are Pepsi at 98.5% and 7Up at 94.9% Among them, Pepsi leads in unaided brand awareness, with a selection rate of up

to 62.0% (based Vinaresearch)

3.2 Market size

The bottled water market in Southeast Asia is currently in a phase of growth and is expected to expand significantly Projections indicate that the market size will increase from USD 23.05 billion in 2023 to USD 30.60 billion in 2028, with a compound annual growth rate (CAGR) of 5.83% during the forecast period (2023-2028)

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One characteristic of Southeast Asia is its abundant water resources However, tap water in this region often contains pollutants and may not always meet safety standards, posing health risks to the population For instance, according to a report by the United Nations Children's Fund (UNICEF) released in February 2022, nearly 70% of household-sourced drinking water in Indonesia is contaminated with fecal waste, which increases the risk of diarrheal diseases Due to the increasing contamination of tap water, there has been a significant rise in the demand for bottled water in recent years

In Vietnam, similar dynamics are at play in the bottled water market, presenting opportunities for companies like Coca-Cola Vietnam, with its growing economy and increasing urbanization, is witnessing a rising demand for bottled water The quality of tap water in some areas may not meet the desired standards, leading consumers to seek safe and clean drinking water alternatives Coca-Cola, as a global player, can leverage its brand reputation and product quality to meet this demand The company's extensive distribution network and marketing capabilities can further enhance its position in the Vietnamese market As consumer preferences evolve towards healthier and safer beverage choices, Coca-Cola has the opportunity to introduce a variety of bottled water products that cater to these changing tastes

Additionally, the growth of the middle class in Vietnam, accompanied by higher disposable incomes, means that more consumers are willing to spend on premium and trusted brands like Coca-Cola The trend of increased dining out and on-the-go consumption also aligns with the convenience of bottled water, further boosting its market potential

In summary, Vietnam's growing economy and evolving consumer preferences present favorable conditions for Coca-Cola to expand its presence in the bottled water market, tapping into the rising demand for safe and clean drinking water among Vietnamese consumers

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mame Revenuc mammm Revenue (forecast) ==——=Profit =====Profit (forecast)

The business data of Coca-Cola from 2017 to 2021 shows notable fluctuations The company's revenue grew significantly from 2017 to 2019, with an average growth rate of 14% However, in

2020 and 2021, there was a significant decline due to the impact of COVID-19, leading to a 14% decrease in revenue, followed by a 6% recovery

Predictions for the future are based on current data It is expected that in 2022, Coca-Cola's revenue will increase to 9,628.01 billion VND, a growth of 14% Economic recovery after the pandemic is expected to contribute to this growth

In 2023 and 2024, the company forecasts continued growth with projected revenues of 10,928.85 billion VND and 12,405.45 billion VND, respectively, corresponding to a growth rate of 14%

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This may reflect a positive outlook for Coca-Cola as they recover from the impact of the pandemic

Coca-Cola's profit experienced notable fluctuations during the period from 2017 to 2021 Starting with a pre-tax profit of 222.22 billion VND in 2017, the company went through impressive growth, reaching its peak at 930.89 billion VND in 2020 However, in 2021, the profit decreased to 822.89 billion VND Based on the current data, the company predicts a recovery in profit before tax, with an estimated 904.34 billion VND in 2023 and 1,026.53 billion VND in 2024

by Coca-Cola during this period

In 2020, there was a sudden decrease in costs, especially with the cost-to-revenue ratio dropping to 0.88 This may be related to responding to the impact of the COVID-19 pandemic,

Tiêu đề	Coca cola vietnam’s sales plan 2024
Tác giả	Nguyễn Thị Lan Trinh
Người hướng dẫn	Nguyễn Tiến Huy
Trường học	University of Economic and Finance
Chuyên ngành	Sales Management
Thể loại	Báo cáo cuối kỳ
Năm xuất bản	2023
Thành phố	Ho Chi Minh

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Số trang	28
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