Research project Assignment 2 slide

• To understand the advantages and the disadvantages of Vietnam’s counterfeiting law which influence on awareness and behavior of PepsiCo’s customers • To find out the main reason that V

MAPLE GROUP

RESEARCH PROJECT

TABLE OF CONTENTS

Chapter 1: Introduction

Chapter 2: Literature review

Chapter 3: Research methodology

Chapter 4: Research finding

Chapter 5: Conclusion and recommendation

CHAPTER 1: INTRODUCTION

1.1 Research Background

1.1.1 History of the company

PepsiCo, Inc is an America multinational company headquartered

in Purchase, New York, United States Currently, it leads in

convenient snacks, foods and beverages with revenues of more than 60$ billion and over 285,000 employees from over 200 countries in over the world PepsiCo consists of PepsiCo Americas Foods

(PAF), PepsiCo Americas Beverages (PAB) and PepsiCo

International (PI) According to detail information which is posted

in PepsiCo’s website, the company experiences more than 47 years with many development stages Below is some main point in the history of PepsiCo:

CHAPTER 1: INTRODUCTION

1.1.2 Mission and Vision

Mission

• PepsiCo’s mission is “to be the world’s premier consumer Products Company

focused on convenient foods and beverages PepsiCo try to produce financial

rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate And in everything we do, we strive for honestly, fairness and integrity” (PepsiCo, n.d.)

Vision

• It can be said that vision of PepsiCo is very precious because they understand the role of customer in business They focus more on customers and environment

around customers This proves that PepsiCo only interested in economic

development - immediate benefit, that they ignored the long-term benefits of

environmental protection and health of customer as well This makes increase the belief of customer with company Therefore, since established, the strategic vision

of PepsiCo makes the company develop significantly and in a short time, it

becomes market leader of Fast-Moving Consumer Goods (FMCG) industry.

CHAPTER 1: INTRODUCTION

Research Objective

• In competitive business environment, Vietnam government has many ways to protect benefits of companies and customers One

of them is counterfeiting law

• To understand the advantages and the disadvantages of Vietnam’s counterfeiting law which influence on awareness and behavior of PepsiCo’s customers

• To find out the main reason that Vietnam government cannot

prevent development of counterfeit and poor products

• To help PepsiCo have more information about regulations and new terms of the counterfeiting law of Vietnam

• To understand deeply ways that counterfeit product spread into market to prevent its development

CHAPTER 1: INTRODUCTION

1.4 Significant of study

• First, for company (PepsiCo), this research will help them understand more

about counterfeiting situation in Viet Nam Then, it will be much easier for PepsiCo

to find out the solutions and they can feel comfortable to cooperate with the

government to prevent counterfeiting.

• Second, for managers and employees, this research gives more knowledge

about regulations of Vietnam counterfeiting law so that managers and employees recognize the important role of counterfeiting law From this awareness, managers and employees can give new ideas, give the best ways to fighting against

counterfeit and poor products, and improve the shortcomings in protecting their brand to remain the development of company and PepsiCo’s leader position.

• Third, for customers, the research help customers raise awareness in distinguish

counterfeit and poor product to ensure legal benefits and give some ways to deal with problems when buying counterfeit and poor product.

• Fourth, for students, this research helps student know how Vietnam

counterfeiting law impact on customers of specific company Moreover, students have more experiences to do research especially research about the Vietnam

counterfeiting law and have more understanding about the business environment

in Vietnam

• Finally, for future researchers, by using our information and data, comparing

with our strong point and weakness; they can improve their research successfully.

CHAPTER 1: INTRODUCTION

1.5 Research Questions/ Hypotheses

• 1.5.1 Research Questions

The research question for this study will be:

• 1 What is the respondents’ profile in terms of?

CHAPTER 1: INTRODUCTION

1.5.2 Hypotheses

1 Is there a significant relationship between gender of respondents and their awareness PepsiCo’s customers about Vietnam counterfeiting law?

2 Is there a significant relationship between age of respondents and their awareness

of PepsiCo’s customers about Vietnam counterfeiting law?

3 Is there a significant relationship between occupation of respondents and their awareness of PepsiCo’s customers about Vietnam counterfeiting law?

4 Is there a significant relationship between education level of respondents and their awareness of PepsiCo’s customers about Vietnam counterfeiting law?

5 Is there a significant relationship between civil status of respondents and their awareness of PepsiCo’s customers about Vietnam counterfeiting law?

6 Is there a significant relationship between quality inspection factor and behavior

CHAPTER 1: INTRODUCTION

1.6 Action Plan and Target Date

  Activities Due dates Members 1

Creating a group (Maple Group) Together reading the scenario for understanding 01/03/2013

Lynn (leader), Snow, Jess, Key

2 Reading scenario and understanding deeply tasks in

All members

3 Looking for a company which is within the limits of the

scenario (Choose PepsiCo) 06/03/2013

All members

4 At home, all members had to:

- Think and choose are search title for PepsiCo

- Find any documents from books and Internet which related to the research title

07- 09/03/2013

All members

5

Holding 1st meeting for making 3 titles 10/03/2013 All

members

CHAPTER 1: INTRODUCTION

1.6 Action Plan and Target Date

6 Present research title before class and asking

lecturer for a title acceptance 11/03/2013

All members

7 The second submit titles and choose 1 research title for

8 Holding 2ndmeeting to make problem statements 16/03/2013 All members

9 Checking problem statements with lecturer 18/03/2013 Lynn

10 Preparing approval letter 19/03/2013 Snow

11 Meeting PepsiCo’s manager for a permission 21/03/2013 All members

12 At home, each member prepared a suitable questionnaire

for the next meeting

22 - 24/03/2013 All members

13 Holding 3rd meeting for making the questionnaire 25/03/2013 All members

14 Asking lecturer for checking the questionnaire 28/03/2013 Jess

15 Doing chapter 1:

- Leader divided works for each member with a deadline.

- Members went home and did their own tasks.

29 - 31/03/2013 All members

CHAPTER 1: INTRODUCTION

16 - Members submitted their work to leader to complete chapter

17 Doing chapter 2:

- Dividing work and doing research about chapter 2 04-07/04/2013 All members

18 All members submitted their work to leader to conduct a completed

Discuss the tasks for chapter 3 and divide work 11/04/2013 All members

24 - Conducting a completed report including introduction, conclusion,

27 Holding 4 th meeting

CHAPTER 1: INTRODUCTION

28 Conducting survey at 5 chosen places and collect

data and summary the results

13- 24/05/2013

All members

- Submit to lecturer to receive feedbacks

- Fixing chapter 4 if there was any problems

1/06/2013

28/05/2013-All members

33 Conducting a completed report including fixing

mistakes in chapter 1, 2 and 3; updated action plans ;

introduction, conclusion, reference list, etc.

10/06/2013

4-All members

34

Submitting Assignment 2 11/06/2013 All

members

CHAPTER 1: INTRODUCTION

1.7 Research limitations

• Limitation of company support: In order to conduct the survey, we

need the manager of PepsiCo to sign a letter approval first

• Time constraint: Collecting and analyzing of data need a long time for

the good result while we only have one month to complete the research, therefore, the paper cannot avoid some mistakes

• Limitation of respondents quantity: The result may be not

objectiveness and accuracy because the number of respondents is too small (100) while the number of consumers of PepsiCo products is very wide

• Limitation of respondents support: When conducting survey,

employees of PepsiCo, many people do not agree to answer our question because they do not understand objectives of research to support it

• Limitation of words: Research is about counterfeiting law and we have

difficulty when want to analyze deeply in each case of law because of the limitation of words

• Limitation of sources: We also have difficulty when the collecting

information on the Internet and others sources because counterfeiting law

is not popular in Vietnam; the State and PepsiCo also public much

information about it

CHAPTER 1: INTRODUCTION

1.8 Research ethics

• Research ethics is a set of rules, regulations, implementation which

researcher need to comply; it describes the behavior and responsibility of researcher with their research objects The objective of research ethics is prescribe what researcher can or cannot to do research, determine the

power and responsibilities of researcher before doing research It also

protects the safety and benefit of research objects to avoid abuse To

implement the study, we have to follow some ethical below:

• First, we respect the dignity, value and benefit of participant; all

participants in this research are volunteers, we do not force anyone to do survey and we protect confidential communications

• We try to make them feel comfortable in helping us and when we complete results of survey, we present all information related our survey honestly and objectivity

• Moreover, we informed fully about the purpose, methods and intended

possible uses of the research to participants

• Besides, we commit that all information, data, results, methods and

procedures in the research is true and reliable

• Especially, our research is about counterfeiting law, therefore we have to obey relevant laws and institutional and governmental policies

CHAPTER 2:LITERATER REVIEW

2.1 Introduction

2.1.1 Area

• The key area of our research is “law”, it is very important not only for company, but also the whole society First of all, all people in the world need the law to ensure fairness in society According to Oxford Dictionary, ‘law is the system of rules which a particular country or community recognizes as regulating the actions of its members and which it may enforce by the imposition of penalties Law has an important role for the economic, social, political, and ethical ideas

2.1.2 Topic

• The topic of our research is “Vietnam’s counterfeiting law” Counterfeiting, nowadays appear in every field and category of goods Nguyen Manh Hung, Vice President Standards Association and the Vietnamese consumer protection, said counterfeit goods, pirated goods from ordinary consumer goods such as clothing, footwear, cosmetics, glasses to the high-value goods such as televisions, refrigerators, washing machines, air conditioners, etc., materials for the production such as rice seeds, fertilizers, crop protection products, building products such as cement, building materials, sanitary ware, and even credit cards, airline tickets (Long, 2011)

CHAPTER 2:LITERATER REVIEW

2.2 Articles about problem

2.2.1 Quality inspection factor

• Quality inspection is an activity by performing inspections; companies are able to identify problems early with the goal of eliminating the causes Utilized correctly, inspections save money by eliminating process problems and ensuring that the end product meets customers' requirements and expectations (Product inspection, 2008) Quality inspection is very important in anti-counterfeit product in Vietnam market It helps government identify fake product and low quality products, from that, government have situation to reduce the number of counterfeit products in market.

• For example, according to a survey about management market forces in Thai Binh, although in charge of the district wide with 30 - 40 communes and towns, but each team is allocated from 5 - 7 people, each manager must charge market of several communes (Mạnh) Both research above do not mention about the solution for government to develop the effects of counterfeiting law, in our research, we give some solution to deal this problem such as develop the ensure quality system, increase human force in management market force to cover all communes in market and give strong financial institutions to decrease counterfeit products in market.

CHAPTER 2:LITERATER REVIEW

• Many research show counterfeit products are the result of lax management and many gaps in Vietnam counterfeiting law Currently, there are five administrative agencies functioning and competent to handle administrative violations of intellectual property including market management agencies, specialized inspectors Science - Technology, Culture, Sports and Tourism, the economic police, the Committee of the customs control of imported goods Although management forces have many people, the effort of that is not strong Because of sporadic activity, there are lack of uniformity in quality such as quantity, functions and duties between the administrative agencies functioning Although product in market is tested by the agencies mentioned above but in counterfeiting, clones, poor quality on the market is still flooded (NTH) In addition, according to Mr Nguyen - Market Management Department (Ministry of Industry and Trade), the Standing Steering Committee 127TU said the sanctioning acts of production and trade in counterfeit goods is only handled by administrative measures or non-criminal measures It is small part of profit that counterfeit goods bring for seller (Hoa, 2010)

CHAPTER 2:LITERATER REVIEW

2.2.3 Customer awareness factor

• Consumer awareness, which refers to a buyer's knowledge of a particular product or company, allows the buyer to get the most from what he buys Consumers know more about their choices when they have product information and benefit from knowing their rights, hearing about alerts and warnings and finding out about safety issues (Thomas).

• Beside quality and regulation, awareness factor is also an important reason that makes counterfeit goods suffuse in market There are many research, survey and article mention the level of citizen’s awareness in fighting against counterfeit products Many customers know goods that they buy are counterfeit goods but they still accept because the price of this product is suitable with their financial situation This activity makes fake goods develop in market and maybe make original goods decrease market share (NTH) Moreover, the limited of knowledge of customer about the counterfeit goods can make them buy counterfeit goods that they do not know

• According to a survey of Vinastas, up to 62% of consumers buy counterfeit goods, counterfeit goods that they do not know (Dan, 2012) In a research of Nielsen company, rate of counterfeit goods account for about 45% of retail sales in Hanoi and 35% in Ho Chi Minh City Demand of counterfeit goods is increasing because of economic recession It helps people understand the routine use of counterfeit products is one of major cause contributing to the uncontrolled rampant counterfeiting of the current market (Chống hàng giả/nhái: Cuộc chiến sống còn của các doanh nghiệp, 2013).

CHAPTER 2:LITERATER REVIEW

2.2.4 Activity factor

• Propaganda activity is the manipulation of public opinion It is generally carried out through media that is capable of reaching a large amount of people and

effectively persuading them for or against a cause The exact meaning of

propaganda is constantly debated, however, and no specific definition is

completely true Some argue that any persuasive communication is propaganda, while others hold that propaganda specifically alters political opinions (Anon, n.d).

• Many researches show that Vietnam government and company is lack of

propaganda program to help customer distinguish between original and

counterfeit products On the afternoon of 11/3, Ho Chi Minh City Department of Industry and Trade launched the program in response to Consumer Day World (15/3) (Phương, 2013) Accordingly, there are many forms of communication, counseling to help consumers identify counterfeit goods It is the second

propaganda program help customer during 30 years when counterfeiting goods appears in Viet Nam while the first hold more than 10 years ago; it shown that

we need more and more propaganda Exhibition attract a large numbers of

consumers to take are, find out

CHAPTER 2:LITERATER REVIEW

2.2.5 Living standard factor

• Living standard is the level of wealth, comfort, material goods and

necessities available to a certain socioeconomic class in a certain

geographic area The standard of living includes factors such as income,

quality and availability of employment, class disparity, poverty rate, quality and affordability of housing, hours of work required to purchase necessities, gross domestic product, inflation rate, number of vacation days per year, affordable (or free) access to quality healthcare, quality and availability of education, life expectancy, incidence of disease, cost of goods and services, infrastructure, national economic growth, economic and political stability, political and religious freedom, environmental quality, climate and safety The standard of living is closely related to quality of life (Investopedia)

• In fact, we cannot prevent counterfeiting development because the majority

of people with low and middle incomes will accept and prefer cheap goods brand While, tricks and techniques produce increasingly sophisticated fakes, are closed from production, transportation and circulation, extensive

distribution from urban to rural, remote areas.

CHAPTER 3:

RESEARCH METHODOLOGY

3.1 Research Design

3.1.1 Type of research

• There are 3 types of research: Exploratory research, Descriptive research,

Causal research Our research type is Descriptive research Descriptive

research is considered as survey research It collects data in order to answer questions about the current status of the subject or topic of study, and uses formal instruments to study preferences, attitudes, practices, concerns, or

interests of a sample In order words, descriptive research involves

collecting data in order to test hypotheses or to answer questions about the opinions of people about the topic or issue (villanova.edu, n.d.) 3.1.2 Research method

• We use Quantitative research design to conduct this research Quantitative

research designs are either descriptive (subjects usually measured once) or experimental (subjects measured before and after a treatment) (Hopkins, 2008)

A descriptive study establishes only associations between variables An experiment establishes causality

CHAPTER 3:

RESEARCH METHODOLOGY

3.1.3 Research Design Technique

• PepsiCo methods are applied by opening a small survey 100 random customers with

simple multiple choice questions such as "Yes or No", "Agree, Disagree, and Normal" Then, PepsiCo attempts to gather information have been issued to 100 customers in Vincom shopping mall center, BigC supermarket, Indochina Plaza, National Economic University, and Banking Academy to review The system of collecting data for research projects is known as research methodology The data may be collected for either theoretical or practical research for example management research may be strategically conceptualized along with operational planning methods and change management Some important factors in research methodology include validity of research data, Ethics and the reliability of measures most of your work is finished by the time you finish the analysis of your data.

3.2 Research Sampling

Participants

• PepsiCo collect data and review of information based on a survey of 100 random customers in Vincom shopping mall center, BigC supermarket, Indochina Plaza, National Economic University, and Banking Academy

• 20 customers in Vincom shopping mall center: 191 Ba Trieu, Hai Ba Trung, Ha Noi

• 20 customers in National Economic University: 207 Tran Dai Nghia, Ha Noi

• 20 customers in BigC supermarket: 222 Tran Duy Hung, Cau Giay, Ha Noi

• 20 customers in Banking Academy: 12 Chua Boc, Dong Da, Ha Noi

• 20 customers in Indochina Plaza: 239 XuanThuy, Cau Giay, Ha Noi

CHAPTER 3:

RESEARCH METHODOLOGY

3.3 Research instrument

Question 10 Never

(0-2)

Rarely (2-4)

Sometimes (4-6)

Often (6-8)

Always (8-10)

Question 12

I do not care (0-2)

Never heard it (2-4)

Normal (4-6)

Good (6-8)

Very good (8-10)

Question 13 Strongly do

not believe (0-2)

Do not believe (2-4)

Normal (4-6)

Believe (6-8)

Strongly believe (8-10)

Question 14 Extremely

dissatisfied (0-2)  

Dissatisfied (2-4)

So-so ( 4-6)  

Satisfied (6-8)  

Extremely satisfied (8-10)

Question 15 Very low (0-2)

Low (2-4)  

So-so (4-6)  

High (6-8) Very high

(8-10)  

Question 16, 18 Strongly

disagree (0-2)

Disagree (2-4)  

Neutral (4-6)  

Agree (6-8)  

Strongly agree (8-10)  

Question 17

Likert scale questions are listed in the following table:

Table 3.1: Research Instrument

Report to authorities

Nominal question is listed as follows:

Question 4 Nothing Graduate Undergraduat

e Bachelor Master

PhD

Question 6 Nothing Under 2 million

Interval question is listed as follows

Ordinal question is listed as follows

Doing survey

Before conducting the survey, it is very important for the researchers to explain for respondents about the purposes of the survey This thing will help them understand and be willing to answer and support the research

Books are precious sources for any research, especially research related to law Almost policy related to Vietnam counterfeiting law is listed briefly in books It helps researcher to find out the useful information to support the research.

Internet

Internet is abundant, available source It helps researchers search information quickly through key words Besides online books are uploaded free in the internet, internet also contained many opinions, ideas from bloggers in many websites It is a useful information source for researcher to compare and contrast their opinion together in literature review.

Newspapers/

Magazines

The articles in newspapers or magazines about Vietnam counterfeiting law is reliable information All information is written by journalist, and their comments are also highly valued in this study.

3.4.2 Secondary Data

This question identifies gender of respondents As can be seen on the chart

above, the percentage of male is 43 while that of female is 57; the proportion of female is more than male

Based on the data gathered, we can see that the age group from 21-30 accounted for the highest rate with 41% and followed by age group less than 21, marked 34% While, the age group 31-40, 41-50 and more than

50 only accounted for 19%, 4% and 2% respectively

The pie chart above illustrated the occupation of respondents Most of them are student with 52%, followed by office staff marked 21% While there are less worker and business participated in the survey which only accounted for 16%, and 9% respectively

Based on the data gathered, it have shown that percentage of married respondents which accounted for 49% is higher than percentage of single respondents, marked 43% and divorced respondent only are 8%

This question mentioned about the income of respondents We can be seen

in the chart, almost respondents are people who have income from 2 to 5 million VND, marked 42% There are less people who have high income, specifically 5-10 million only accounted for 6% and >10 million marked 3% while respondents who do not have income monthly accounted high ratio with 39%