CHIẾN lược sử DỤNG NGÔN từ và PHI NGÔN từ TRONG TIẾP THỊ của PEPSICO VIỆT NAM một NGHIÊN cứu GIAO TIẾP GIAO văn hóa

As considered as the corporation which has the mostsuccessful and suitable strategies, PepsiCo is the object of a lot of research.However, they just have been focusing on economics field

PepsiCo is one of the leading companies in the soft drinks, snacks andfood marketplace As considered as the corporation which has the mostsuccessful and suitable strategies, PepsiCo is the object of a lot of research.However, they just have been focusing on economics fields and business.Therefore, this is the first project which study on marketing strategy of PepsiCointerm of the Cross Cultural Communication through verbal and nonverbalcues used by the Corporation

The paper begins by reviewing the current literature on Marketing,Verbal and non-verbal cues, and related studies The investigation thenanalyzing and defining the specific verbal or non-verbal cues used by PepsiCo.This study also involved the participation of consumers of two generation – theyoung and the old, who have used this products and see it every day Thefeelings of the consumers about the products demonstrate how much the cuesare understood and how they work

The results of the study indicate that 1) Marketing strategies built based

on non-verbal cues which are price, image, and endorsements are much moreeffective in Vietnamses market; 2) Cultural factors should be considered first

by producers because of such great affection in controlling consumers buyingbehavior

Based on those research results, the researcher gave somerecommendations for marketing strategies of PepsiCo Vietnam in particularand other beverage brands in Vietnam’s market in general – where they shouldfocus on and what can be neglected to minimum Culture shock and maximumprofits

Chapter 2: Strategic use of verbal and non-verbal cues in marketing by PepsiCo Vietnam

Chapter 3: Findings and Discussions

Part 3: Conclusion and Indications

Part 1: INTRODUCTION

1 Rationale/Reasons for choosing topic

Trade today is becoming global thanks for technological improvements

in transport and communication And globalization becomes inevitable to anybusiness, from electronics, technology to cosmetic and food Globalization haschanged the nature of business activities, from focusing on the producing thebest products with the most reasonable prices, enterprises have to shift theirfocus on the market Simply because they want their customers to believe andbuy their products instead of their competitor’s In order to do that, enterpriseshave to better understand the demand of the customers, need to advertise betterabout their products, and to build long-lasted relation between their brands withtheir target customers Because of above reasons, marketing plays anincreasingly important part, especially in this modern economy Almost allmajor corporations are actively involved in marketing their products beyondtheir original homeland borders The main challenge that almost all thecompanies have to face is: the cross cultural marketing and how to do it

The cross cultural marketing strategies including verbal and non-verbalcues can create the impression or cause culture shock For example, whenadvertising underwear, the clips/images with the man/woman wearing onlyunderwear can be very normal and acceptable in American and Westerncountries, it will be refused or even fined and banned in Vietnam and otherEastern Countries because of violating the traditional values

Having a high personal interest in PepsiCo’s productions, the researcherdecided to develop a study on Marketing strategy of PepsiCo Vietnam toprovide an in-depth understanding of the Strategic use of verbal and non-verbalcues in their marketing activities Moreover, being a double-major student –who can work both in economic and language fields, studying on this topic canhelp researcher to get the necessary knowledge for the future job Also, it

ishoped that this thesis would be a useful source of reference for further studies

on related topics

2 Aims of the study

Knowing how successful the marketing strategies of PepsiCo is, theresearcher decided to carry out the study with the first aim to find out whatstrategies which include verbal and non-verbal cues are The second purpose is

to throw a light on how effective Pepsi uses those in their marketing strategies

to attract Vietnamese customers Finally, from the picture of current issues, Ihopes to propose some suggestions for others companies

In brief, this study would seek to answer the following questions:

1) What are the marketing strategies of verbal and non-verbal cues andHow PepsiCo Vietnam uses them?

2) What is attitude of Vietnamese consumers toward the strategies?

3 Significance of the study

This study firstly provides the general knowledge about the verbal andnon-verbal cues in marketing, then to indicate the key to success of PepsiCoVietnam’s marketing strategies in the competitive beverage market in Vietnam,and how they combine Cultural factors and economic The knowledge is alsobelieved to be necessary for future jobs of double major students as theresearcher – who is educated both economy and language in the background ofglobalization

4 Methodology

4.1 Data collection instruments

This is descriptive analytic research.For the collection of sufficientreliable and valid data for this, researcher used a case study approach and useddirect and structured observation and questionnaire as the main data collectionmethods This chapter serves as a report on those procedures

4.1.1 Case study

Case study is specially chosen because of it allows an in-depth study ofthe target phenomena in a single case, with all the ‘common and uniquefeatures’ (Bell, 2010, p.9)1 Furthermore, as the aim of the study is to find theeffects of using verbal and non-verbal cues in marketing, case study is mostsuitable for indicating the key of success of PepsiCo Vietnam’s marketingstrategies in the competitive beverage market in Vietnam

4.1.2. Questionnaire

A descriptive research methodology was used for this study and survey

as an important tool for collecting and analyzing information from selectedindividuals about themselves The term ‘survey’ is commonly applied to aresearch methodology designed to collect data from a specific population, or asample from that population, and typically utilizes a questionnaire or aninterview as the survey instrument (Robson, 1993) The reason that researcherpreferred using questionnaire to interview methodology is that: questionnairesare less expensive and easier to administer than personal interviews; they lendthemselves to group administration; and, they allow confidentiality to beassured (Leary2 - 1995) Robson (1993) also indicates that surveys areextremely efficient at providing information in a relatively brief time period atlow cost to the researcher

1 Judith Bell: university lecturer, head of department and vice principal in colleges of further education;

as a senior counsellor and course team writer for the Open University.

2 David E Leary, University professor, Ryland Hall 320, University of Richmond.

The process of this data collection involved the participation of bothyoung and old consumers Personal information of all participants was keptconfidential and anonymous for ethical reasons

Young people are the target customer of all beverage brands in generaland of PepsiCo in particular Because of the limit of time and convenience,students in ULIS, VNU was chosen Older consumers will be the neighbor andthe acquaintances of the researcher, because of knowing that the old are alwayshesitate to do something like questionnaire, I want to take advantage of myrelationship to ask them to do it

The same types of questionnaire were used for different groups ofparticipants during the survey The aim of this is to understand the differences

in thought of the two generations, and to understand the choice of targetconsumers of PepsiCo

Beside handout, researcher also created an online survey and used socialnetwork to send it to friends (With the support of Google Form3, work becameeasily Google automatically created a statistical of the survey for user to easilymanage After being filled by anyone, the statistical will be automaticallyupdated Counting and calculating are no longer necessary) The results werebeyond the researcher’s expectation Because of knowing the importance ofthis process toward researcher and not taking too much time, many people werewilling to do the questionnaires, even with the most enthusiastic behavior

The questionnaire began with a brief explanation of the research topicand a request for some necessary personal information On the rest pages, theresearcher proposed a combination of both open-ended and close-endedquestions; even some questions were designed as checkboxes type that allowparticipants to choose more than one answer - to facilitate the comprehension

of the collected information and data analysis

4.2. Data collection procedures

3 Google Forms is tool to help users plan events, send a survey, give students a quiz, or collect other

The procedure of data collection could be put into two phases asfollows

Phase 1: Preparation

In this phase, the researcher managed to 1) design the questionnaires; 2)pilot the questionnaires and the interview questions with 2 students – theresearcher’s classmates; 3) make adaptations and finalize the design of datacollection instruments and 4) set up schedule for collecting data

Phase 2: Disseminations of questionnaires

The questionnaire for the young

ULIS students chosen were researcher’s Economics classmates Thequestionnaires were handed out to the students at the beginning of the classtime, and all members in the class were informed that they are being asked toparticipate in a research study Then they were provided an explanation of thepurposes of the research and the expected duration of their participationConfirmation of confidentiality was also made so that the students would bemore willing to state their opinions in the questionnaires The students wereencouraged to look quickly at the questionnaires and questions for clarificationwere encouraged to be raised Then the researcher suggested the classes finishthe questionnaires in their break time and would directly collect all the papers

The questionnaire for the old

The questionnaire was delivered to researcher’s acquaintances in theweekdays evening The researcher also explained clearly the purposes of theresearch and its importance and asked for the help The questionnaire wasrecollected in the next day

4.3. Data analysis methods and procedure

The collected data supports the last research question: “What is attitude

of Vietnamese consumers toward the strategies?” It was first classifiedaccording to the type of consumers The young’ responses were consideredfirst The Old’s responses were analyzed in comparison and contrast with theyoung’s responses

The questionnaires had already been divided into sections from thedesign stage basing on the criteria of key factors in the marketing strategy ofPepsiCo Therefore, it was convenient to classify the information gathered.Data collected from the questionnaires was then synthesized and illustrated bydiagrams

The above method and procedures of data analysis were useful that theyhelped the researcher obtain rich data From such data, results were found outand will be presented in the other chapter – Finding and discussion

In the research “Pepsi across cultures: analysis and cross-culturalcomparison of Pepsi websites” by Alexandra Chirkova (University ofGothenburg, Sweden, May 2011), the author pays attention to the analysis ofmarketing via Internet The thesis touches one side of possible culturalreflection on communication in a business sphere and marketing – web design.After finding the differences between the web pages for Pepsi in differentcountries which are related to the cultures, he drew conclusion that PepsiCopays attention to the most expressed cultural traits and through themdifferentiate websites

In ‘PepsiCo: International Marketing Report’, a group of researcherfrom Benedictine University (Chicago, 2009) analyzed international marketingstrategy of PepsiCo based on foreign market indicators, such as GDP, ImportTariffs, Political risks, Infrastructure, tax rates and competitors, etc Threecountries chosen are India, Japan and China for specific illustration In eachcountry, PepsiCo has specific strategy that makes them become more and moresuccessful

About the role of Nonverbal and verbal communication in business, theresearch “Nonverbal communication: a serious business advantage” seems to

be adequate Experts agree that the combination of gestures, postures, clothing,

colors can support or interfere with verbal message that a person or a businessdelivers

After learning previous study as mentioned above, I found that althoughPepsi has been studied, they are just only in economics aspect while mine isabout the combination of Cultural factors and economy, which is notoverlapped with anyone

1.2 Theoretical background

1.2.1 Verbal and non-verbal cues

A cue is a signal of something or a reminder of something It brings tomind something from past knowledge or previous experience that provides aframework of meaning that can be used to interpret the sign The concept ofcueing is very important to visual communication because much of pastexperience is filed in memory as a visual element In other words, while cuescan and do work on the semantic level for certain types of information,perceptual psychologists focus more on the tremendous role of visual imagery

in the cueing process based as it is on experiential knowledge (Moriarty,2001)4

As we know, communication includes 2 main elements: verbal and verbal cues

non-Verbal cues

Verbal cue is something that you can figure someone out based on whatthey said, or how they said it Verbal cues are used widely because theyrepresent the most common way to communicate and the easiest way tounderstand the speech of any person

Non-verbal cues

Oxford Advanced dictionary defined Non-verbal cue as the perceptualinformation communicated in a social exchange by signs accompanying thewords used in speech Such cues include body language, tone, inflection, and

other elements of voice, dress, etc Patti Wood, a body language expert andauthor of Snap: Making the Most of First Impressions, Body Language, and Charisma 5 says nonverbal cues include “all the communication between peoplethat do not have a direct verbal translation.” They are “body movements, bodyorientation, nuances of the voice, facial expressions, details of dress, andchoice and movement of objects that communicate.” Time and space can also

be perceived as having nonverbal cues Darlene Price (2012)6 says “Simply put,nonverbal cues include all the ways you present and express yourself, apartfrom the actual words you speak,” she also adds “And they are criticallyimportant at work and in business because perception is reality.” – becausehow we say something is more impactful than what we say

The importance of nonverbal cues in the business world has not beenstudied extensively, but it only makes sense that it can have a strong impact onany communication in our daily life in general and in business in particular –where people always have to satisfy others for their benefits Nonverbal cuescan help a business owner to get a message across, or to successfully interpret amessage received from another person, or to deliver hidden message to another

For example, when seeing your partner crosshis arms, it impliesresistance "People might just be cold, but the stereotype is that they aren'tlistening," explains Ronald Riggio, director of the Kravis Leadership Institute

at Claremont McKenna College Or when someone place a hand under thechin, it can be understood that a decision is being made Don't oversell ifsomeone looks interested afterward, but if you spot negative signals, bring upyour second-best idea stat Another example is a barrier Personal space issacred in Western business culture, so back off if clients put up a barrier, like apurse, says Carol Kinsey Goman, president of Kinsey Consulting Services:

"I've seen many managers and salespeople who didn't pick up on that cue and

5 Patti Wood (2012) Snap: Making the Most of First Impressions, Body Language, and Charisma New World Library.

6 Darlene Price & Kevin Wilson (2012) Well said: Presentations and Conversations that get

results.Amacom publisher

they lost the deal." Or in selling, an area where the nonverbal actions can make

or break a deal People are unlikely to want to buy from a sales person whorefuses to make eye contact, who has poor posture, who lacks energy, and whoseems unconvinced about the products and services represented

On the other hand, nonverbal communication can also send signals thatinterfere with the effective presentation or reception of messages "Sometimesnon-verbal messages contradict the verbal; often they express true feelingsmore accurately than the spoken or written language," Herta A Murphy and

Herbert W Hildebrandt noted in their book Effective Business

Communications 7 In fact, studies have shown that between 60 and 90 percent

of a message's effect may come from nonverbal cues Therefore, it is importantfor business owners and managers to be aware of the nonverbal messages theysend and to develop the skill of reading the nonverbal messages contained inthe behavior of others

There are three main elements of nonverbal cues: 1) appearance (design,image), 2) body language and 3) sounds

(1) In normal business, appearance is the way people dress Itconveys message, affects attitudes - even emotions" according to Murphy andHildebrandt For example, a speaker's clothing, hairstyle, use of cosmetics,neatness, and stature may cause a listener to form impressions about heroccupation, socioeconomic level, competence, etc Similarly, such details ofproducts can affect buying habit of the customer The one with good design,color and friendly materials is preferred For instance, in producing a kind ofbeverage, producers have to consider something that is good for health; easy tohold and preserve; with appropriate color (colors also plays a part incommunication; such as red can increase one’s blood pressure, respiration rateand heart beat while blue is calming color; therefore, colors are carefullychosen in advertising); and can be recycled

7Herta A Murphy and Herbert W Hildebrandt (1991) Effective Business Communication (6th Ed.).

(2) Body language, and particularly facial expressions, can provideimportant information that may not be contained in the verbal portion of thecommunication Facial expressions are especially helpful as they my showhidden emotions that contradict verbal statements

(3) Finally, the tone:it is not what you say but how you say it –positively and actively or indecisively and hesitantly? It is also important tonote that perfume or other odors contribute to others’ impressions, as doesphysical contact between the speaker and the listener Silence, or the lack ofsound, is a form of nonverbal communication as well Silence cancommunicate a lack of understanding or even hard feelings in a face-to-facediscussion In advertising, sound means songs Is it a song with fast beat andstrong rhythm – to bring young and active feeling; or is it a song with slow andgentle rhythm – to imply peace?

1.2.2 Marketing and marketing strategies

Marketing

There are many definitions of marketing According to Business

dictionary, Marketing is the management process through which goods and

services move from concept to the customer

Kotler and Armstrong (2010)8 – two marketing teachers found that

Marketing is the social process by which individuals and organizations obtainwhat they need and want through creating and exchanging value with others

Another definition by Board of Directors of American MarketingAssociation is: Marketing is the activity, set of institutions, and processes forcreating, communicating, delivering, and exchanging offerings that have valuefor customers, clients, partners, and society at large (October 2007)

8 Philip Kotler (born 27 May 1931 in Chicago) is the S.C Johnson & Son Distinguished Professor of International Marketing at theKellogg School of Management at Northwestern University "He is the father of Marketing Management" says Ashutosh Rathi.

In conclusion, we can think of marketing as a bridge from the producer

to the consumer

Why marketing?

After researching and analyzing the history of marketing, the economistsclaimed that Marketing was born first and foremost to effectively support tocommerce activities, consuming products, handling difficulties and risks thatenterprises have to face as well as identifying the chances, and help them havethe most effective business solution

Marketing has a very important function, which is connecting all theactivities of the enterprises to the market Marketing directs the leaders toanswer 2 questions:

(1) Does market need or buy the entire products that the Enterprisesproduced?

(2) With the price that the Enterprise tend to sell, do the consumers find

it affordable?

By that, Marketing ensure business activities of the Enterprises to followmarket orientation, regard market, demand of the customers as the strongestsupport for all the business decisions

In general, as far as I know, Marketing shows to the enterprises thefollowing basic elements:

 Who are the target consumers? Where do they live and buy goods?Male or female? Young or old? How much do they buy and why?

 Which type of goods do they need? What are the features? Whatabout packaging and price? Why do consumers prefer those featuresinstead of others? Comparing to other competitors, what are theadvantages and disadvantage of our products? Are there any changesnecessary?

 How about the price? Is it reasonable? When and where and howmuch should we increase or decrease the price? To whom?

 How can we let customers know, buy and love the products? Whyshould we use this method instead of others?

 Do we need after-sell services? Which services are easy toprovide?

In brief, the reason why we need marketing is very simple - it exposespeople to the product and the brand Marketing let people know why they needyour products However, marketing is not only a function in business activities,

it is also loadstar for all activities of the enterprises in finding out, meeting andsatisfying the demand of the customers Without marketing, you will lose brandvisibility, and even clients you had in the past may forget about you Howmany brands do you still remember in spite of not seeing it for a long time?How many brand you still use in spite of knowing others which is better?

Because of this, people sometimes consider marketing as “advertising”

In fact, Advertising is a single component of the marketing process Ifmarketing is a pie, advertising is one of the slices of that pie

Marketing strategy

Marketing strategyis a process that can allow an organization toconcentrate its resources on the optimal opportunities with the goals ofincreasing sales and achieving a sustainable competitive advantage - Wikipedia

We can easily understand that: A marketing strategy is the result ofdecisions which are made about how a particular product or service will bepromoted to its target customers

Standing on a fork of shares – brand – products, or at the cross ofproduct – price – distribution – promotion, which direction Enterprise willfollow? It is really a difficult question for all the businesses But a clear andappropriate Marketing strategy will help them to direct their necessaryactivities with the minimum cost and maximum effects

Enterprises who have good Marketing strategies will have somefollowing advantages:

 Understanding market and target customers, knowing what theyneed, what enterprises have and what to change to be better

 Having chances to sell and promote

 Understanding competitors and gradually launching appropriatestrategies

 Systematically developing, easily managing budgets and evaluatingthe effects at the end of each period

 Timely having plan when market changes

Marketing strategy activities

A marketing strategy includes the coordination of four elements called4Ps’ of marketing:

Customer research will be a key element for a company to offer a productthat appeal to customers and avoid mistakes

(2) Price

Price refers to how much you charge for your products or services Many small businesses begin their business with the bargain pricing tocreate impression However, it may be a disadvantage if customers think thatyour price signals low quality So that, pricing strategy should base onfollowing tips:

 Price should be set according to the product demand of public

 Price should be that which gives the company maximum revenue

 Price should not be too low or too high than the price competitor ischargingfrom their customers otherwise nobody will buy your product.

 Price must be keeping the view of your target market

(3) Placement (or distribution)

Placement refers to how the products get to the buyers

There are many kinds of channel used to get products to the buyers:retail stores, e-commerce, on-site, door-to-door, etc

The choice of distribution way much depends on the customs ofcustomers in the country you set up the business Such as, in the westerncountries, people spend much of their time shopping online or watchingprograms like Best-buy on TV, e-commerce will work In contrast, in someAsia countries where people prefer traditional stores/market, direct sale isbetter choice

(4) Promotion

Promotion is an attempt to influence Promotional activities aredesigned to inform, persuade, or remind the market of the firm and its productsand ultimately to influence consumers’ feelings, beliefs, and behavior - Wen-

fei Uva (2001),Smart Marketing9

This part refers to advertisement and selling promotion (promotionaleducation, publicity, and individual selling) Promotions might include freesamples, coupons, contests, incentives, loyalty programs, prizes, and rebates

Channels of promotion: commercials advertisement on TV/newspapers,leaflets, billboards, ‘word of mouth’

1.2.3 Verbal and nonverbal cues in marketing

9 New York State College of Agriculture and Life Sciences Dept of Applied Economics and

Management; Uva, Wen-fei L Smart marketing [electronic resource]: a compilation of Smart

marketing articles, November 2001-November 2003

As studying above on definition of marketing strategies and four elements ofthem, we can easily indicate that:

 Verbal cues in marketing refers to Slogan, songs, promotion campaigns(oral advertising)

 Nonverbal cues in marketing refers to Image of the product (design),images used in advertising, price, and location

In business in general and in marketing in particular, those cues do notseparate, they even combine and mutually support each other to bringeffectiveness to producer

Chapter 2: Strategic use of verbal and non-verbal cues in marketing by PepsiCo Vietnam

PepsiCo is a world leader in convenient snacks, foods and beverages,with revenues of more than $39 billion The company consists of PepsiCoAmericas Foods (PAF), PepsiCo Americas Beverages (PAB) and PepsiCoInternational (PI)

PepsiCo Vietnam was established in February 1994, when the USEmbargo to Vietnam was lifted marking the phenomenal entrance of PepsiCointo this new market Just hours after, Pepsi Cola and 7Up products wereavailable to the first few thousand local consumers in Hochiminh City.Officially, PepsiCo teamed up with International Beverages Company (IBC) –

a well-established local joint venture to manufacture and distribute Pepsi-Colaand 7Up products in Vietnam In April 2003, the company became a 100%foreign owned entity – a new entirely run subsidiary of PepsiCo Worldwideand the name PepsiCo Vietnam (PIVN) was used officially.10

The company’s diverse product portfolios including Pepsi Cola, 7Up,Mirinda, Aquafina, Sting, Twister, Lipton Ice Tea, and Poca are widely anddeeply distributed to Vietnamese consumers from the five operations brancheslocated across Vietnam

Over time, PepsiCo Vietnam has not only successfully operated incompliance with its corporate's world-class standard and the local regulations

as well but also sustain its market leadership position driven by impressivegrowth In addition, PepsiCo Vietnam also receives widespread recognition forits social contribution and tireless fosterage and support of the welfare of thecommunity via active involvement in related activities and events

10 Statistics in 2012

So far, PepsiCo Vietnam has not only managed the local Vietnammarket but extended to cover the entire Indochina including Vietnam, Laos,and Cambodia.

Although Pepsi has modern producing system, traditional flavorthat is100% natural, low in sodium, caffeine-free, and still maintains the flavor of itsoriginal cola, which is very suitable with Vietnamese taste, the marketingstrategy is the key that has created the awareness of Pepsi to the customers andgets the great amount of sales as present Pepsi know and understand thephilosophy: “Know – Like – Believe and Buy” of Vietnamese consumers, andthen apply supporting tools such as advertising which takes full advantage ofverbal and non-verbal cues, effectively and creatively

2.1 Verbal cues used by PepsiCo

Mentioning Pepsi brand, people think about young and active spirit.Although PepsiCo has over one hundred years history, that spirit still penetratedeeply throughout the entire Corporation, from young color of logo, from thefamous slogan “The Choice of a New Generation” to fashionable and eye-catching design products for the young, active promotion campaign, teenagerbrand ambassador and aggressive marketing strategies of outstanding youngmanagement team

Among the products of PepsiCo, Pepsi is the most outstanding onesbecause the Corporation began and got the successful with this product – which

is preferred by the young all over the word Coming to Vietnam, the youngnature of the cola drink rapidly catch up with the life of Vietnamese youngpeople, the generation is strongly developing with country in the renovationperiod

2.1.1 Slogan

Leading advertising companies always know to use language Finding aspecial slogan for brand is the right way to build unique image of the products

in customer’s awareness Nowadays, when the young do not like usingtraditional way of talking anymore and prefer using unregular language style,advertising also have to follow that direction to satisfy this target customers.Consumer tends to repeat speech in advertisements and always want to findnew language marks to express their own thoughts and feelings

Since years, people admits that direct advertising is not effect anymore.All the expectations are put on the tool which is complicated and difficult tocontrol - the dissemination of information via customers who used products, oreven just watching advertisement of products Seth Godin, the author of thebook “Ideavirus”11 says that before disseminating the idea, you have to think inadvance what that element will say to provide them with the simplest way toconvey the idea, and slogan is the ideal choice

Slogan is much more effective than any other promotion technique indoing the main function of the brand which is affirm the image and improve thesphere of influence of the brand Slogan is popular first and foremost in thebrands which are introduced by the companies as a special lifestyle, not just agoods So that, slogan have to be build up following 5-star criteria, whichmeans it has to meet 5 requirements: “simple, short, easy to understand, easy toremember and tied strongly to brand”

For example, in the ad of Budweiser beer, advertising scenes in whichcharacters greet each other by loudly said “Whatssup” in the first time on TVimmediately won the consumer’s affection Or in the promotion campaign ofChocolate Snickers, the new character that Mars introduced today is a youngman with sport style and interested in doing super nature things Then, theslogan “Go on, Snickers!” said by the man became catchwords of the youngduring a long time

Well knowing that, Pepsi also strongly impresses consumers with theirslogans – which is young-people targeted and easy to remember Because thetarget customer of the Corporation is the young – who are active and

11 Seth Godin (Dec 2001) Ideavirus NY: Hyperion Books.

alwayswant to affirm themselves to the others, the slogan of Pepsi always veryunique and make the young feel they are special with the product Pepsi is one

of the few companies to spend an amount of money equivalent to the amount ofproducing branding right in the initial days setting up the business

The slogan of Pepsi always stick to the young throughout periods Hereare some favorite slogans over years: (See full of the slogans in Appendix 3)

1961-1963: "Now It's Pepsi for Those Who Think Young"

1963–1967: "Come Alive, You're in the Pepsi Generation"

1983–1984: "Pepsi Now! Take the Challenge!"

1984–1991: "Pepsi The Choice of a New Generation"

1988-1989: "Diet Pepsi The Taste That's Generations Ahead"

1992–1993: "Be Young, Have Fun, Drink Pepsi"

1997–1998: "Generation Next"

1999–2000: "For Those Who Think Young"

2006–2007: “Taste the one that's forever young"

2008: "Something for Everyone."

It can be easily seen that the slogans of Pepsi make people think “Pepsi

is young”, Pepsi is for who dare to dream, dare to take the challenge; who arevery active, energetic; who are the next generation

Especially, in their slogan, rhetorical devices like metaphor andhyperbole is used to create the special effects to the customers’ mind However,how to use it effectively depends on particular countries because of thedifferences in traditional values Toward different countries, the metaphorconveys different messages For example, in the US in the July 12, 2000, Pepsilaunched the product Pepsi Lemon Twist They used the image the Lemon pees

in the can or a bottle of Pepsi to emphasize that If you drink Pepsi Lemon

Twist, you have chance to enjoy a lemon flavored cola The gap betweenlanguages is also problem Such as in 1967, Pepsi tried to translate their slogan

"Come Alive, You're in the Pepsi Generation" into Chinese, and the resultcame out as the sentence which could be understood like “Pepsi brings yourancestors back from dead” Or into German: “Come out of the grave” Ofcourse that is certainly a bold promise

Fortunately, that problem has not ever happened over a long period ofoperation of Pepsi in Vietnam All slogans are easily translated and can convey

as much as message to the consumers

“Pepsi nước uống của tuổi trẻ”

“Bạn trải nghiệm cuộc sống để hưởng thụ, Pepsi sáng tạo để bạn tận hưởng”

“Gia nhập thế hệ Pepsi”

“Sự lựa chọn của thế hệ mới”

“Khát khao hơn/Sôi động hơn với Pepsi”

“Thách thức hơn”

Over years, those slogans are still remembered and repeated byVietnamese consumers

2.1.2 Songs

Another verbal tool in Pepsi’s advertising is songs Music has become

an important part of the marketing tool’s scope With the intensifying usage of

TV and radio as the mean of communicating with the consumers, music cannot

be neglected Music can serve the overall promotional goals in one or more ofseveral capacities

In 1938, Walter Mack became new president of Pepsi-Cola and no longafter, he launched a new advertisement for Pepsi 12-ounce and a song withrhythm “Nickel, Nickle” The song immediately became popular and wascovered in 55 languages

In 1964, Pepsi launched Diet Pepsi with the unique song “Girlswachers”– one of the top 40 hit songs.

Typicality is changing the official name to “Pepsi-Cole Hits The Spot”,which was regarded as the immortal songs by LIFE Magazine In everyadvertisement, commercial exhibitions, the theme music always are excitingsong contributing to build up the impression of a product for young people ofPepsi

2.2 Non-verbal cues used by PepsiCo

2.2.1 Design

Secondly, when concentrating the Nonverbal cues, we cannot forget thedesign of Pepsi – in logo, in bottle The good design of logo with suitablecolors, image goes along with good design in bottle which is portable, friendly

to the environment will work

Color

Colors can have an impact on our body and mind The science of colorshas been used by market researchers to determine how best to apply thisknowledge to influence customer’s perception of business When choosingcolor for a brand or a logo, managers focus more on the feeling which theywant to create than on the unique identity And when the feeling is regards asimportance, other elements are neglected

In general, the best color is the ones that most represents the features ofthe brand John Deere is the leading brand of tractor It is not surprising whenJohn Deere use green – the color of tree, field – to be the symbol color

People strongly argue that it is necessary to choose a color that opposites

to the ones that our competitors chose Especially when you neglect the rules ofcolor, you will do that Hertz, the first brand in car hiring service, choseYellow Therefore, Avis, one of the second brand in this field, chose Red.Another one, National, chose Green

The Coke is reddish brown, therefore over the last 100 years, theappropriate color that Coca-Cola chose for the brand is Red

At first, Pepsi-Cola badly chose the color of brand They chose red andblue Red is color of Coke, and Blue is used to differ from color brand of Coca-Cola Over years, Pepsi had to fight against the reaction that they were lack ofidea towards color strategy of Coca-Cola Many people admitted that althoughPepsi was on the market, but in their mind, red symbols of Coca-Cola seem toappear everywhere The lack of unique color sink Pepsi in the red ocean oftheir big competitor

Years after, Pepsi has changed – which they should have done in 50years ago: making their color brand opposite the color of the competitor Pepsichoose alone Blue A new Pepsi were launched named Pepsi Blue Thisproduct used to make a fever in Vietnam but quickly disappeared, because fewpeople liked to drink that unnatural blue drink Pepsi even painted a Concordeblue to bring the blue message to the agencies all over the world

Toward some culture, the choice of right color is the key of success.China is the clearest example In traditional Chinese art and culture, black, red,blue-green, white and yellow are viewed as standard colors These colorscorrespond to the five elements of water, fire, wood, metal and earth, taught intraditional Chinese physics Among them, Red, corresponding with fire,symbolizes good fortune and joy Red is found everywhere during ChineseNew Year and other holidays and family gatherings; and in modern China, it isaffiliated with and used by the Communist government That’s why Coca-Cola

is much more popular in this country The color of the logo brings the happyfeeling to the Chinese (An exporter of white wedding gowns to China wouldbroke in no time, because this color signifies death) In contrast, Thai peopleand Japanese favor blue because of regard it as representative of life, spirit,harmony, peace, naturalism, simplicity

Red for Vietnamese people reflects a belief in fortune as well as aninfluence of color favor from China In addition, it also symbolizes enthusiasm,

determination and success which are all the main values of the currentVietnamese society At the beginning, Pepsi felt hard to enter the Vietnamesemarket because of that color favor (althoughthis color is the most popular andneutral color on a global scale and used as a safe choice for a business buildingcustomer loyalty) Gradually, strategy that sticks the blue color with youngidols, stars, together with young slogans have built the impression that “Pepsi isbrand of the young” helps Pepsi to have their own position in the hearts ofVietnamese consumers

Logo

Logo is what establishes a brand name in the consumer mind It is thebrands identify, signature, image and it plays a very effective role to improvethe product or brand Pepsi kept on changing its logo from time to time alongwith the trade marks

Despite the passage of the century and the advancement of technologyand trends, the Pepsi logo design still retains its uniqueness The logo is threedimensional in nature It comprises of a globe painted with two completelyopposite colors complimented with a swirl in the center that separates the twodisks of the globe

Pepsi logos in 1930, 1951, 1962, and 1987 have the same typicalfeatures: 1) is obviously influenced by font style designed by Coca-Cola; 2) thewave appears continuously and does not change during 75 years

In 2003, the logo was revamped with a more modern slightly serif fontand the Pepsi Globe became more three dimensional It also had the additional

of 'water droplets'

In early October 2008, Pepsi launched an entirely new logo, but it didnot came into effect until early 2009 The Pepsi Globe is now two dimensionalagain and the swirl design has been changed to look like a smile It also addedwhite outlines In mid-2010, all Pepsi types began using the same size smile

That logo is really preferred by the consumers because of happily feeling they

get when looking at that smile <Famouslogos.org>

(See logos of Pepsi over years in Appendix 4)

Packaging

Pepsi can is designed light, portable And one thing that make Pepsiparticularly become an environment-friendly brand in the eyes of consumers isevery used cans are collected or rebought by the Corporation and then recycle.Pepsi sends a message to consumers that they do not only concern aboutbenefits but also healthy or environment It is really important factor becausethere are many brands have been boycotted due to violating healthy and ethicalissues

2.2.2 Endorsements

Pepsi pays attention in commercial ads, so that choosing endorsement orspokesperson is very important They have had many advertisingspokespersons over the years and all of them are very popular singers/star thathave strong influence to the young in particular and in the consumers ingeneral

During 1984, Michael Jackson signed a large contract with Pepsi In

2001, Britney Spears became a spokesperson for Pepsi She was withPink, Beyoncé Knowles, and Enrique Iglesias in an ad made featuring the cover

of the song "We Will Rock You" In 2005, Christina Aguilera was signed topromote the popular drink Some commercials featured singer Elissa, and somewith Aguilera by herself PepsiCo said in a recent interview that ChristinaAguilera has that “Dare for more” approach And also in 1999 JanetJackson signed to promote "Ask For More" campaign In 2008, PepsiCo invited

Mariah Carey to record a commercial for their new campaign “Cool Tones”.(Wikipedia and Pop.aux.tv)

In Vietnam, Pepsi’s chose My Tam, Anh Khoa, Phuong Vy, KasimHoang Vu, etc and some singers who have young performance style to be their

celebrities Those singers are the representatives of the a generation which areyoung, dare to dream, interested in discovery, energetic and full of idea.Football stars like Hong Son, Huynh Duc were also invited to advertise forPepsi Young images of the singers/stars are the image of the young who want

to overcome themselves, overcome difficulty to gain succeed and Pepsi expects

to be the partner, the supporter for the youth, for the desire of reaching theocean of young Vietnamese’s

(See Appendix 5 for some attention of famous people in advertisement

of PepsiCo and PepsiCo Vietnam)

2.2.3 Price

At the beginning of 90s, when Vietnam started opening the market,there was no unique domestic beverage but Tribeco Other products were nobrand, produced with small scale, backward technology At that time, Pepsientered Vietnam market With abundant resources and brand strength, Pepsi-Cola immediately dominate Vietnam’s market, from the North to the South Byreducing price, in the first month, Pepsi-Cola quickly beat separate competitors

in domestic as well as made Tribeco go bankrupt, forced them to change thebusiness form into soy milk brand

Price of PepsiCo is considered reasonable, even cheaper than other softdrinks in Vietnam’s market Together with discount schemes, the productsbecome more and more popular to consumers

2.2.4 Distribution

Today all of leading brands bring their products to consumers viaintermediate distribution, which helps producers to lower cost and still expandscale

Despite being a giant in beverage industry, with strong financialpotential, PepsiCo does not directly bring their products to consumers but built

a wide distribution network Besides agents and general agents like fast-foodrestaurants (KFC, Lotteria, BBQ), movie theatres, PepsiCo also penetrates