MARKETING RESEARCH NEW PRODUCT PEPSICO VIET NAM

Marketing research is the process or set of processes that links the producers, customers, and end users to the marketer through information used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process. Marketing research specifies the information required to address these issues, designs the method for collecting information, manages and implements the data collection process, analyzes the results, and communicates the findings and their implications

TABLE OF CONTENT

I) BRAND INTRODUCTION ………

1) INTRODUCTION PEPSICO VIET NAM……….03

2) REASON FOR CHOOSING THE TOPIC……… 04

3) OBJECTIVE OF STUDY……… 05

II) PRODUCT INTRODUCTION……… 06

1) DESCRIBE THE PRODUCT……….06

1.1) PACKAGING DESIGN AND IT’S COLOR……….07

1.2) INGREDIENTS OF PRODUCT……….08

2) SWOT – THE NEW DRINK PRODUCT ANALYSIS………

2.1) STRENGHTS……….08

2.2) WEAKNESSES……… 09

2.3) OPPORTUNITIES………09

2.4) THREATS ………10

3) PRICING OF THE NEW PRODUCT………

3.1) COMPETITORS OF THE NEW PRODUCT………11

3.2) COMPARE THE PRICE OF THE COMPETITON……….12

4) THE SIZE TO DO RESEARCH ……….

4.1) SURVEY SITE……… 12

4.2) THE NUMBER TO CONDUCT SURVEY ……… 13

4.3) THE JOB DESCRIPTION AND TASK OF MANAGERS & STAFF WHEN SURVEYING CUSTOMERS………14

5) COST OF CONDUCTING SURVEY………

5.1) EXPENDITURES FOR STAFF TO CONDUCT SURVEY………16

5.2) COST OF CUSTOMERS SURVEY GIFTS……… 17

5.3) OTHER COSTS………17

5.4) TOTAL COST OF SURVEY AFTER 08 DAYS CONDUCTING…… 17

6) THE WAY TO DO RESEARCH ………

6.1) HOW TO DO RESEARCH ………18

6.2) RESEARCH METHOD……… 18

6.3) PERSONAL INFORMATION OF CUSTOMERS ……… 19

6.4) CUSTOMERS QUESTIONNAIRE USING THE DRINK……….23

6.5) QUESTIONNAIRE ESTIMATES LEVEL OF CUSTOMER SATISFACTION………23

6.6) IMPLEMENTATION TIME ………25

7) RESULT AFTER DOING THE RESEARCH ………

7.1) QUESTIONNAIRE AFTER CUSTOMERS SURVEY……… 25

7.2) RESULT CHARTS……… 27

III) CONCLUSION………31

*REFERENCES……… 32

* APPENDIX OF 40 TYPICAL CUSTOMERS’ SURVEY……… 32.

I) BRAND INTRODUCTION

1) INTRODUCTION : PEPSICO VIET NAM

+History and Development

PepsiCo Incorporatedis one of the most renowned and world’s largest company infood as well as beverage.This corporation has ranked 29th in the World’s MostValuable Brands in 2016 (Forbes Ranking 2016).Inthe late 1890s, Caleb Bradham, apharmacist in New Bern, North Carolina, created Pepsi-Cola which was alsoestablished when Pepsi-Cola and Flito-Lay merged In 1932, Elmer Doolin found theFrito Company,while Herman W.Lay formed the H W Lay Company TheFrito-LayCorporation was incorporated by those two companies in 1961 After that, PepsiCoInc was born via the merger between Pepsi-Cola companyand Frito-Lay company in

1965 The mission statement of PepsiCo is that this corporation focuses onprovidingconvenience food and drinks to their customers to become a premier consumerproducts company around the world Financial rewards are generated to otherorganizations who invest in as well PepsiCo will make great efforts in all of thing they

do with their integrity and ethical standards (Barbara Farfan 2016).PepsiCo sells their

products in more than different 200 countries over the world according toPepsiCo(2016) More specifically, PepsiCo’s products are available in Vietnam which

is one of the most attractive growth market places achieving competitive advantagesfor this company PepsiCo Incorporated cooperates with Suntory Group which is amultinational corporation in food and beverage These two organizations will operate

in their food as well as beverage in Vietnam, including Pepsi-Cola, leading by Mr.Shekhar Mundlaywho is the CEO & General Director of Suntory PepsiCo VietnamBeverage (Suntory Pepsico Vietnam Beverage 2014)

+Suntory PepsiCo Vietnam Beverage

Executive Chairman: Junji Miyawaki

CEO and General Director: Uday Shankar Sinha

Head Office: 5th Floor, Sheraton Hotel, 88 Dong Khoi Street, District 1, Ho Chi MinhCity

Official JV: April 2013

Suntory PepsiCo Vietnam Beverage Company (SPVB), is 100% owned by foreigncapital, and is a strategic alliance between PepsiCo Inc and Suntory Holdings Limited,which was officially formed in April 2013 The company's mission and vision are tocontinue to strengthen and maintain the leading position in the beverage industry whileliving with the company's values In the future, we will continue to pursue sustainabledevelopment objectives, bring benefits to our employees and business partners, andcontribute to the communities where we do business and operations

Company's products can be found all over the country Suntory PepsiCo VietnamBeverage is one of the top national beverage leaders with a huge product portfolio.The success and popularity of company top ten brands has prompted them to set thegoal of bringing in $1 billion in annual retail sales in 2018

+Some outstanding achievements of Suntory PepsiCo Vietnam Beverage in the past several years:

- Top 10 sustainable business in vietnam 2017

- Winning the title of Vietnam high quality goods 17th

- Amcham CSR Award 2017

- Ranked 52th among the 1000 largest corporate income tax payers in 2016

- Top 3 of reputable brands 2017

2) REASON FOR CHOOSING THE TOPIC

-I have already figured out what demands that customers wanted to reach for them Actually, one of the most demand of theirs is to drink water

-I make sure that you know exactly how necessary water is , you know drinking waterplays an important role in our life , it contains over 70% in body And lack of water

you cannot be alive But in this plan, I focus on researching to launch a new product what is advanced and innovated from the usual kind of one.

-I understand what customers need that is Coffee – you know Coffee is a very good taste for all of people in the place ( Thu Dau Mot city , Binh Duong province)- where Imade the customer survey about it Coffee is the best choice for making you feel refreshed and awake during a busy working day.it is also very good to keep your brain

in status of highest concentration Moreover , my product is not only solving your thirsty with pure water , but also it makes you enjoy the coffee flavor to stay

cool ,especially people who are addicted to coffee

-Finally, I decided to research the new product which is the combination of naturally traditional taste of pure water with coffee flavor

-That is also my vision in the future with the creation of new taste , new flavor , new product to be various in customers’choices and if every patron enjoys it and have a so good feedback , we will get much more and more revenues ,so my increasingly

company capital to keep going on manufacturing

3) THE OBJECTIVE OF STUDY

-This plan has clear details so that the implementation will not miss Orientating appropriate marketing strategy, outlining the challenging opportunities that new

products may encounter, identifying the viability of the product on the market We cancontrol the current situations and take measures for some problems later In addition, I understand the current needs of customers and provide the most necessary things, helping to make things convenient and this is also an important part when launching products to the market When a company knows its competitor offers the same

product, the company can sue with this brownprint The report shows the plan for the company's new product and it also shows the customer's requirements or the strengths and weaknesses of the product as well as the benefits and limitations that help us to look at the overall situation And make an assessment whether or not to introduce new products

-With this brownprint, it shows the right criteria for launching new products to the consumer market, the company will implement as soon as possible No longer is the old, normal products such as mineral water products have been widely used, we are about to launch a new product bring a breakthrough The "Aquafina coffee flavor" awakens you, with aromatic flavor from coffee in remote highlands, the company believes that the product will satisfy all of the hardest customers

II) PRODUCT INTRODUCTION

1) DESCRIBE THE PRODUCT :

1.1) PACKAGING DESIGN AND IT’S COLOR

We have an outstanding innovation that we base on the background of the old

Aquafina pure water to design and advance it And here it is :

In more detailed, we designed it about the background color that it has been changed from blue to brown color of coffee and as you see , a hot girl model also has been sticked to the package to make definitely attractive and more dynamic to customers.The caption of product is “just make difference” That is shown up what all of my intention is in this product

For the packaged shape, we keep going on using the old one with the same as size 500ml/bottle I am going to produce about 1000 bottles, and also going to get variety

of different size types It is made from standard plastic according to the USA

quality It’s also easy for customers to hold it up , portable , light and absolutely good looking It cannot break off from your hands

It is the outstanding creation package of the product I totally satisfy with it that is the product we had spent a lot of time for designing it My motto of company is focusing

on the quality and suitably good looking as well

About the color of liquid inside, actually when we mix it up the consistency between coffee and pure water ,it’s color is a little dark like brown- color , but it is still like a water not really at all coffee (100%)- just a coffee flavor

In my recipe to make it, we exactly have pure water (70%) and Coffee Flavor (30%).It

is the perfect combination that we have figured out in our researching process

1.2) INGREDIENTS OF PRODUCT

-In my research of product quality, the quality of ingredients is very important,

So base on the allowed – safety ingredient standard ISO, we have :

-The main ingredients :

+“Pure water has been processed in system that has been controlled and managed professionally”

+ The natural Coffee is supplied in Buon Me Thuot Coffee company We guaranteed and make sure to always check it out clearly and carefully from the supplier

+The sugar is also indispensable We also purchase it from the Bien Hoa Sugar

company which is a well-known brand in the Vietnamese market

Moreover , I have Nutrition fact on the product for bottle of 500ml

- Note :Percent Daily Values are based on 2000 calorie diet

This product is able to use for vegetarian

2) SWOT – THE NEW DRINK PRODUCT ANALYSIS

2.1) STRENGHTS

- Brand reputation:

Suntory PepsiCo Vietnam is among the two leading brands in the gas beveragescategory in Vietnam The brand is present everywhere and enjoys a very high level ofbrand recognition For years, it has remained the favorite of consumers

- The new product

At the moment, we have the strength to customers, actually the our product of purewater with coffee flavor hasn’t been in the market, so we have the creation to sell itand offer to customer what they need, so we have less rivals to deal with in thisproduct .Good design so it makes the customer more beautifully tempting andattractive.

- Broad product portfolios:

Apart from it, the brand’s product portfolio is quite large with a single competitorhaving the ability to match it Its product portfolio can be challenged only by CocaCola Various products like: tea, juice, cereals, especially pure water with new flavor

…

- Extensive Global Presence:

Its complementary food and beverages portfolio enables the brand to drive its costslow as well as provide the customers with several choices Suntory PepsiCo Vietnam

is a global brand present throughout Vietnam Moreover, the popularity of the SuntoryPepsiCo Vietnam products is very high and it enjoys high customer loyalty

- Popularity of brands and customer loyalty:

Its unique marketing and advertising strategies are another key strength of the brand IfSuntory PepsiCo Vietnam spends heavily on advertising and marketing then it is tokeep its customers engaged

- Marketing and advertising:

The brand tries to keep millions of its customers throughout the world engaged with itsunique marketing and advertising campaigns

2.2) WEAKNESSES

- Advertising and marketing cost:

Suntory PepsiCo Vietnam has spent much the expenses on advertising and marketing

- Because of the new product, it has not existed in the market , we are afraid of

the customers who have not got familiar with the taste of product

- Passive on price :

The raw materials are not stable, Coffee is supplied from Buon Me Thuot So companywill be consider to prices Therefore, company will not control the input costs

- Cost of transportation to the agency and retailer or from the supplier to

Company is higher and higher

2.3) OPPORTUNITIES

- Increasing the number of health products in its portfolio:

While Suntory PepsiCo Vietnam has seen business decline in the year 2015, the brandhas still some great opportunities that it can use to increase its revenue generating

opportunities In this regard, the first thing Suntory PepsiCo Vietnam could easily do

is to add new products to its portfolio

- Increasing the size of portfolio:

Suntory PepsiCo Vietnam is an established brand and adding new products could notjust generate revenue and profits, it could also be a means of penetrating marketdeeper Simultaneously, the brand should shift its focus towards healthier products

- Increased penetration in domestic and foreign markets:

Suntory PepsiCo Vietnam has a shiny portfolio, but if it wants to compete effectivelywith Coca Cola the best thing is to widen the net for the customers In this regard focushas to be on increased popularity and loyalty in domestic and foreign markets, andwhen Vietnam joins in WTO, Suntory PepsiCo Vietnam will easily expand its market

- Partnership with other brands :

Another key source of revenue for the brand can be partnership with the other brands.Suntory PepsiCo Vietnam can partner other brands to increase its brand recognition inseveral parts of the world for mutual benefit Diversification can also be a good ideafor Suntory PepsiCo Vietnam and it could start from related products

2.4) THREATS

- Increased competition or Rivaling:

Another important threat is the heavy competition The heavy competition in theindustry is adding to the pressure Over Coca Cola, Suntory PepsiCo Vietnam is stilltwo other competitors who are Tribeco and Tan Hiep Phat, so on

- Condition of global economy:

Global recession has left the industry in a very poor condition and it will need to pullharder to emerge from this recess

- Broad product portfolio

- Extensive Global Presence

- Popularity of brands and customer

loyalty

- Marketing and advertising

- The new product

OPPORTUNITIES

- Increasing the number of health

products in its portfolio

- Increasing the size of portfolio

- Increased penetration in domestic and

3) PRICING OF THE NEW PRODUCT

3.1) COMPETITORS OF THE NEW PRODUCT

Our Competition ,Our general products, particularly, drinking products are in highlycompetitive categories and markets and compete against products of internationalbeverage, like us, operate in multiple geographies, as well as regional, local andprivate label manufacturers, economy brands and other competitors In many countries

in which our products are sold, including the United States, The Coca-Cola Company

is our primary beverage competitor Other beverage, food and snack competitorsinclude, but are not limited to, DPSG, Kellogg Company, The Kraft Heinz Company,Mondelez International, Inc., Monster Beverage Corporation, Nestlé S.A., Red BullGmbH and Snyder’s-Lance, Inc In 2017, we and The Coca-Cola Companyrepresented approximately 23% and 20%, respectively, of the U.S liquid refreshmentbeverage category by estimated retail sales in measured channels, according toInformation Resources, Inc However, The Coca-Cola Company has significantcarbonated soft drink (CSD) share advantage in many markets outside the UnitedStates Our beverage, food and snack products compete primarily on the basis of brandrecognition and loyalty, taste, price, value, quality, product variety, innovation,distribution, advertising, marketing and promotional activity, packaging, convenience,service and the ability to anticipate and effectively respond to consumer preferencesand trends, including increased consumer focus on health and wellness and thecontinued acceleration of e-commerce and other methods of distributing andpurchasing products Moreover, we also have to deal with the domestic rivals like TanHiep Phat and Tribeco corporation Success in this competitive environment isdependent on effective promotion of existing products, effective introduction of newproducts and reformulations of existing products, the effectiveness of our advertisingcampaigns, marketing programs, product packaging, pricing, increased efficiency inproduction techniques, new vending and dispensing equipment and brand andtrademark development and protection We believe that the strength of our brands,innovation and marketing, coupled with the quality of our products and flexibility ofour distribution network, allows us to compete effectively

3.2) COMPARE THE PRICE OF THE COMPETITON

The amounts of money charged for a product (Aquafina Coffee Flavor) Price

of product should be that which gives maximum benefits to the company and whichgives maximum satisfaction to the customer

Following factors Suntory PepsiCo Vietnam kept in mind while determining thepricing strategy

+Price should be set up 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 is charging fromtheir customers otherwise nobody will buy your product

+Price must be keeping the view of your target market

Rates: (for 1 product)500ml : 5,200VNDCompare it to the Old Aquafina water bottle : 3,800 VND

So for one bottle of product (500ml) Our company is going to launch andsell to the agencies , supermarkets,… is 5,200 VND / bottle

4) THE SIZE TO DO RESEARCH

4.1) SURVEY SITE

Base on the research of new product is the drink so we decided to choose

+20 coffee shops (consist of High land, Phuc Long , and big-SIZE well-known coffee shops to do survey

+Location : Thu Dau Mot city , Binh Duong province

Map of Thu Dau Mot City

*Here is the address of

High land Coffee in Thu Dau Mot :

1/ 325 Đại lộ Bình Dương, Phú Thọ, tp Thủ Dầu Một, Bình Dương

2/ 1 Trần Hưng Đạo, Phú Cường, Tp Thủ Dầu Một, Bình Dương

3/ 1 Phú Lợi, Phú Hoà, Tp Thủ Dầu Một, Bình Dương

4/ 540 Đại lộ Bình Dương, Hiệp Thành, Tp Thủ Dầu Một, Bình Dương

Phuc Long in Thu Dau Mot:

1/ 44 Nguyễn Đình Chiểu, Phú Cường, Thủ Dầu Một, Bình Dương

And 15 coffee shops along the streets in Thu Dau Mot city

The scope to do customer survey is 20 coffee Shops in Thu Dau Mot City

4.2) THE NUMBER OF PEOPLE TO CONDUCT SURVEY

To do the survey we need a mount of staff , specific in table below:

+2 managers

+20 Staff

Total : 22 people to conduct it

4.3) THE TASK OF MANAGER AND STAFF WHEN SURVEYING

CUSTOMERS

+Job description for survey team:

*One staff member for doing survey for 1 coffee shop ( 20 staff for 20 coffeeshops)

*Time for conducting : From 9.00 Am to 9.00 Pm

Day : Only 2 days /Week : Saturday and Sunday Only.

Duration : 4 weeks = 8 days (in September ,2018)

TOTAL

+All survey team members must have the following qualifications:

 They should be able to write and read the main language used for the surveyand speak the local languages of the areas where the survey will be conducted

 They should have sufficient level of education, as they will need to read andwrite fluently and count accurately

 They should be physically fit to walk long distances and carry the measuringequipment

2- Training team members

3- Supervision of the survey: Taking necessary actions to enhance the accuracy of data collected

+Tasks of Managers:

1 Ensures all forms and questionnaires are ready at start of day;

2 Ensures all equipment is ready at start of day;

3 Calibrates measurement instruments on daily basis;

4 Ensures all food/refreshments are ready at start of day;

5 Organises briefing meeting with his/her team before departure in morning;

6 Speaks with representatives to explain the survey and its objectives,

7 Manages the households selection procedure;

8 Uses a local events calendar to estimate the age;

9 Checks if the child is malnourished (checks for the presence of oedema) and ifchild or woman is severely anaemic and fills the referral form if necessary;

10 Fills the children and women questionnaires;

11 Supervises the team member filling out the household questionnaires onWASH, food security and mosquito net coverage;

12 Ensures that houses with missing data are revisited before leaving the field thesame day;

13 Checks that all forms are properly filled out before leaving the field

14 Ensures that all the equipment is maintained in a good state;