Therefore, this is the first project which study on marketing strategy of PepsiCo interm of the Cross Cultural Communication through verbal and nonverbal cues used by the Corporation.. T
Trang 1VIETNAM NATIONAL UNIVERSITY, HANOI
University of Languages and international Studies
FACULTY OF ENGLISH LANGUAGE TEACHER EDUCATION
Student:PH¹M THÞ V¢N ANH
Year of enrolment: QH2009
Ha Noi, May 2013
Trang 2ĐẠI HỌC QUỐC GIA HÀ NỘI TRƯỜNG ĐẠI HỌC NGOẠI NGỮ KHOA SƯ PHẠM TIẾNG ANH
KHOÁ LUẬN TỐT NGHIỆP
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
Giáo viên hướng dẫn: TS Ngô Hữu Hoàng Sinh viên: Phạm Thị Vân Anh
Khoá: 2009-2013
HÀ NỘI – NĂM 2013
Trang 3ACCEPTANCE PAGE
I hereby state that I (Phạm Thị Vân Anh, Group 09.1.E22), being a candidate for the degree of Bachelor of Arts (TEFL) accept the requirements of the College relating to the retention and use of Bachelor’s Graduation Paper deposited in the library
In terms of these conditions, I agree that the origin of my paper deposited in the library should be accessible for the purposes of study and research, in accordance with the normal conditions established by the librarian for the care, loan or reproduction of the paper
Signature
Trang 4ACKNOWLEDGEMENTS
It is my pleasure to thank those who made this thesis possible
The very first and most profound gratitude I would like to dedicate to
Dr Ngô Hữu Hoàng, my supervisor, for his tireless guidance, elaborate comments, and support from the initial to the final level enabled me to develop
an understanding of the subject
Secondly, I would like to thank two of my classmates, Nguyen Thanh Huyen and Nguyen Thi Thu Thuy for giving me invaluable advice for my research
The heartfelt gratefulness is always devoted to my beloved family, my sister and my best friend, whose care and encouragement have been my indispensable reliance during my four academic years as well as my working time on the study
Fourthly, this thesis would not have been possible without the enthusiastic participation of my friends, who gave me easy access to the survey
Lastly, I offer my regards and blessings to all of those who supported
me in any respect during the completion of the study
Phạm Thị Vân Anh
Trang 5ABSTRACT
PepsiCo is one of the leading companies in the soft drinks, snacks and food marketplace As considered as the corporation which has the most successful 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 PepsiCo interm of the Cross Cultural Communication through verbal and nonverbal cues used by the Corporation
The paper begins by reviewing the current literature on Marketing, Verbal and non-verbal cues, and related studies The investigation then analyzing and defining the specific verbal or non-verbal cues used by PepsiCo This study also involved the participation of consumers of two generation – the young and the old, who have used this products and see it every day The feelings of the consumers about the products demonstrate how much the cues are 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 more effective in Vietnamses market; 2) Cultural factors should be considered first
by producers because of such great affection in controlling consumers buying behavior
Based on those research results, the researcher gave some recommendations for marketing strategies of PepsiCo Vietnam in particular and other beverage brands in Vietnam‟s market in general – where they should focus on and what can be neglected to minimum Culture shock and maximum profits
Trang 62 Aims and objectives of the study 2
Trang 7Chapter 2: Strategic use of verbal and non-verbal cues in marketing by PepsiCo Vietnam
2.1 Verbal cues used by PepsiCo 18
2.3 The combination of the two elements 27
Chapter 3: Findings and Discussions
Part 3: Conclusion and Indications
1 Major findings of the research 37
Trang 8Part 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 any business, from electronics, technology to cosmetic and food Globalization has changed the nature of business activities, from focusing on the producing the best products with the most reasonable prices, enterprises have to shift their focus on the market Simply because they want their customers to believe and buy their products instead of their competitor‟s In order to do that, enterprises have to better understand the demand of the customers, need to advertise better about their products, and to build long-lasted relation between their brands with their target customers Because of above reasons, marketing plays an increasingly important part, especially in this modern economy Almost all major corporations are actively involved in marketing their products beyond their original homeland borders The main challenge that almost all the companies have to face is: the cross cultural marketing and how to do it
The cross cultural marketing strategies including verbal and non-verbal cues can create the impression or cause culture shock For example, when advertising underwear, the clips/images with the man/woman wearing only underwear can be very normal and acceptable in American and Western countries, it will be refused or even fined and banned in Vietnam and other Eastern Countries because of violating the traditional values
Having a high personal interest in PepsiCo‟s productions, the researcher decided to develop a study on Marketing strategy of PepsiCo Vietnam to provide an in-depth understanding of the Strategic use of verbal and non-verbal cues in their marketing activities Moreover, being a double-major student – who can work both in economic and language fields, studying on this topic can help researcher to get the necessary knowledge for the future job Also, it
Trang 9ishoped 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, the researcher decided to carry out the study with the first aim to find out what strategies 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, I hopes 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 and How 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 and non-verbal cues in marketing, then to indicate the key to success of PepsiCo Vietnam‟s marketing strategies in the competitive beverage market in Vietnam, and how they combine Cultural factors and economic The knowledge is also believed to be necessary for future jobs of double major students as the researcher – who is educated both economy and language in the background of globalization
Trang 104 Methodology
4.1 Data collection instruments
This is descriptive analytic research.For the collection of sufficient reliable and valid data for this, researcher used a case study approach and used direct and structured observation and questionnaire as the main data collection methods 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 of the target phenomena in a single case, with all the „common and unique features‟ (Bell, 2010, p.9)1
Furthermore, as the aim of the study is to find the effects of using verbal and non-verbal cues in marketing, case study is most suitable for indicating the key of success of PepsiCo Vietnam‟s marketing strategies 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 selected individuals about themselves The term „survey‟ is commonly applied to a research methodology designed to collect data from a specific population, or a sample from that population, and typically utilizes a questionnaire or an interview as the survey instrument (Robson, 1993) The reason that researcher preferred using questionnaire to interview methodology is that: questionnaires are less expensive and easier to administer than personal interviews; they lend themselves to group administration; and, they allow confidentiality to be assured (Leary2 - 1995) Robson (1993) also indicates that surveys are extremely efficient at providing information in a relatively brief time period at low 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
Trang 11The process of this data collection involved the participation of both young and old consumers Personal information of all participants was kept confidential and anonymous for ethical reasons
Young people are the target customer of all beverage brands in general and of PepsiCo in particular Because of the limit of time and convenience, students in ULIS, VNU was chosen Older consumers will be the neighbor and the acquaintances of the researcher, because of knowing that the old are always hesitate to do something like questionnaire, I want to take advantage of my relationship to ask them to do it
The same types of questionnaire were used for different groups of participants during the survey The aim of this is to understand the differences
in thought of the two generations, and to understand the choice of target consumers of PepsiCo
Beside handout, researcher also created an online survey and used social network to send it to friends (With the support of Google Form3, work became easily Google automatically created a statistical of the survey for user to easily manage After being filled by anyone, the statistical will be automatically updated Counting and calculating are no longer necessary) The results were beyond the researcher‟s expectation Because of knowing the importance of this process toward researcher and not taking too much time, many people were willing to do the questionnaires, even with the most enthusiastic behavior
The questionnaire began with a brief explanation of the research topic and a request for some necessary personal information On the rest pages, the researcher proposed a combination of both open-ended and close-ended questions; even some questions were designed as checkboxes type that allow participants to choose more than one answer - to facilitate the comprehension
of the collected information and data analysis
3
Google Forms is tool to help users plan events, send a survey, give students a quiz, or collect other information in an easy, streamlined way.
Trang 124.2 Data collection procedures
The procedure of data collection could be put into two phases as follows
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 – the researcher‟s classmates; 3) make adaptations and finalize the design of data collection 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 The questionnaires were handed out to the students at the beginning of the class time, and all members in the class were informed that they are being asked to participate in a research study Then they were provided an explanation of the purposes of the research and the expected duration of their participation Confirmation of confidentiality was also made so that the students would be more willing to state their opinions in the questionnaires The students were encouraged to look quickly at the questionnaires and questions for clarification were encouraged to be raised Then the researcher suggested the classes finish the 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 the weekdays evening The researcher also explained clearly the purposes of the research and its importance and asked for the help The questionnaire was recollected in the next day
Trang 134.3 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 classified according to the type of consumers The young‟ responses were considered first The Old‟s responses were analyzed in comparison and contrast with the young‟s responses
The questionnaires had already been divided into sections from the design stage basing on the criteria of key factors in the marketing strategy of PepsiCo Therefore, it was convenient to classify the information gathered Data collected from the questionnaires was then synthesized and illustrated by diagrams
The above method and procedures of data analysis were useful that they helped the researcher obtain rich data From such data, results were found out and will be presented in the other chapter – Finding and discussion
Trang 14In the research “Pepsi across cultures: analysis and cross-cultural comparison of Pepsi websites” by Alexandra Chirkova (University of Gothenburg, Sweden, May 2011), the author pays attention to the analysis of marketing via Internet The thesis touches one side of possible cultural reflection on communication in a business sphere and marketing – web design After finding the differences between the web pages for Pepsi in different countries which are related to the cultures, he drew conclusion that PepsiCo pays attention to the most expressed cultural traits and through them differentiate websites
In „PepsiCo: International Marketing Report‟, a group of researcher from Benedictine University (Chicago, 2009) analyzed international marketing strategy of PepsiCo based on foreign market indicators, such as GDP, Import Tariffs, Political risks, Infrastructure, tax rates and competitors, etc Three countries chosen are India, Japan and China for specific illustration In each country, PepsiCo has specific strategy that makes them become more and more successful
About the role of Nonverbal and verbal communication in business, the research “Nonverbal communication: a serious business advantage” seems to
be adequate Experts agree that the combination of gestures, postures, clothing,
Trang 15colors can support or interfere with verbal message that a person or a business delivers
After learning previous study as mentioned above, I found that although Pepsi has been studied, they are just only in economics aspect while mine is about the combination of Cultural factors and economy, which is not overlapped 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 to mind something from past knowledge or previous experience that provides a framework of meaning that can be used to interpret the sign The concept of cueing is very important to visual communication because much of past experience is filed in memory as a visual element In other words, while cues can 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 what they said, or how they said it Verbal cues are used widely because they represent the most common way to communicate and the easiest way to understand the speech of any person
Trang 16words used in speech Such cues include body language, tone, inflection, and other elements of voice, dress, etc Patti Wood, a body language expert and
author of Snap: Making the Most of First Impressions, Body Language, and
Charisma 5 says nonverbal cues include “all the communication between people that do not have a direct verbal translation.” They are “body movements, body orientation, nuances of the voice, facial expressions, details of dress, and choice 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, apart from the actual words you speak,” she also adds “And they are critically important at work and in business because perception is reality.” – because how we say something is more impactful than what we say
The importance of nonverbal cues in the business world has not been studied extensively, but it only makes sense that it can have a strong impact on any communication in our daily life in general and in business in particular – where people always have to satisfy others for their benefits Nonverbal cues can help a business owner to get a message across, or to successfully interpret a message received from another person, or to deliver hidden message to another
For example, when seeing your partner crosshis arms, it implies resistance "People might just be cold, but the stereotype is that they aren't listening," explains Ronald Riggio, director of the Kravis Leadership Institute
at Claremont McKenna College Or when someone place a hand under the chin, it can be understood that a decision is being made Don't oversell if someone looks interested afterward, but if you spot negative signals, bring up your second-best idea stat Another example is a barrier Personal space is sacred in Western business culture, so back off if clients put up a barrier, like a purse, says Carol Kinsey Goman, president of Kinsey Consulting Services:
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
Trang 17"I've seen many managers and salespeople who didn't pick up on that cue and 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 who refuses to make eye contact, who has poor posture, who lacks energy, and who seems unconvinced about the products and services represented
On the other hand, nonverbal communication can also send signals that interfere with the effective presentation or reception of messages "Sometimes non-verbal messages contradict the verbal; often they express true feelings more 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 important for business owners and managers to be aware of the nonverbal messages they send and to develop the skill of reading the nonverbal messages contained in the 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 It conveys message, affects attitudes - even emotions" according to Murphy and Hildebrandt For example, a speaker's clothing, hairstyle, use of cosmetics, neatness, and stature may cause a listener to form impressions about her occupation, socioeconomic level, competence, etc Similarly, such details of products can affect buying habit of the customer The one with good design, color and friendly materials is preferred For instance, in producing a kind of beverage, producers have to consider something that is good for health; easy to hold and preserve; with appropriate color (colors also plays a part in communication; such as red can increase one‟s blood pressure, respiration rate
7
Herta A Murphy and Herbert W Hildebrandt (1991) Effective Business Communication (6th Ed.) New York: McGraw-Hill.
Trang 18and heart beat while blue is calming color; therefore, colors are carefully chosen in advertising); and can be recycled
(2) Body language, and particularly facial expressions, can provide important information that may not be contained in the verbal portion of the communication Facial expressions are especially helpful as they my show hidden 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 to note that perfume or other odors contribute to others‟ impressions, as does physical contact between the speaker and the listener Silence, or the lack of sound, is a form of nonverbal communication as well Silence can communicate a lack of understanding or even hard feelings in a face-to-face discussion In advertising, sound means songs Is it a song with fast beat and strong rhythm – to bring young and active feeling; or is it a song with slow and gentle 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 obtain what they need and want through creating and exchanging value with others
Another definition by Board of Directors of American Marketing Association is: Marketing is the activity, set of institutions, and processes for
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
Trang 19creating, communicating, delivering, and exchanging offerings that have value
for customers, clients, partners, and society at large (October 2007)
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 economists claimed that Marketing was born first and foremost to effectively support to commerce activities, consuming products, handling difficulties and risks that enterprises have to face as well as identifying the chances, and help them have the most effective business solution
Marketing has a very important function, which is connecting all the activities of the enterprises to the market Marketing directs the leaders to answer 2 questions:
(1) Does market need or buy the entire products that the Enterprises produced?
(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 follow market orientation, regard market, demand of the customers as the strongest support for all the business decisions
In general, as far as I know, Marketing shows to the enterprises the following 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? What about packaging and price? Why do consumers prefer those features instead of others? Comparing to other competitors, what are the advantages and disadvantage of our products? Are there any changes necessary?
Trang 20 How about the price? Is it reasonable? When and where and how much should we increase or decrease the price? To whom?
How can we let customers know, buy and love the products? Why should we use this method instead of others?
Do we need after-sell services? Which services are easy to provide?
In brief, the reason why we need marketing is very simple - it exposes people to the product and the brand Marketing let people know why they need your 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 and satisfying the demand of the customers Without marketing, you will lose brand visibility, and even clients you had in the past may forget about you How many 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 If marketing is a pie, advertising is one of the slices of that pie
Marketing strategy
Marketing strategyis a process that can allow an organization to concentrate its resources on the optimal opportunities with the goals of increasing sales and achieving a sustainable competitive advantage - Wikipedia
We can easily understand that: A marketing strategy is the result of decisions which are made about how a particular product or service will be promoted to its target customers
Standing on a fork of shares – brand – products, or at the cross of product – price – distribution – promotion, which direction Enterprise will follow? It is really a difficult question for all the businesses But a clear and appropriate Marketing strategy will help them to direct their necessary activities with the minimum cost and maximum effects
Trang 21Enterprises who have good Marketing strategies will have some following advantages:
Understanding market and target customers, knowing what they need, what enterprises have and what to change to be better
Having chances to sell and promote
Understanding competitors and gradually launching appropriate strategies
Systematically developing, easily managing budgets and evaluating the 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 called 4Ps‟ of marketing:
Customer research will be a key element for a company to offer a product that 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 to create impression However, it may be a disadvantage if customers think that your price signals low quality So that, pricing strategy should base on following tips:
Price should be set according to the product demand of public
Trang 22 Price should be that which gives the company maximum revenue
Price should not be too low or too high than the price competitor is chargingfrom 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 of customers in the country you set up the business Such as, in the western countries, people spend much of their time shopping online or watching programs like Best-buy on TV, e-commerce will work In contrast, in some Asia countries where people prefer traditional stores/market, direct sale is better choice
(4) Promotion
Promotion is an attempt to influence Promotional activities are designed to inform, persuade, or remind the market of the firm and its products and ultimately to influence consumers‟ feelings, beliefs, and behavior - Wen-
fei Uva (2001),Smart Marketing9
This part refers to advertisement and selling promotion (promotional education, publicity, and individual selling) Promotions might include free samples, coupons, contests, incentives, loyalty programs, prizes, and rebates
Channels of promotion: commercials advertisement on TV/newspapers, leaflets, billboards, „word of mouth‟
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
Trang 231.2.3 Verbal and nonverbal cues in marketing
As studying above on definition of marketing strategies and four elements of them, 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 not separate, they even combine and mutually support each other to bring effectiveness to producer
Trang 24Chapter 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 PepsiCo Americas Foods (PAF), PepsiCo Americas Beverages (PAB) and PepsiCo
International (PI)
PepsiCo Vietnam was established in February 1994, when the US Embargo to Vietnam was lifted marking the phenomenal entrance of PepsiCo into this new market Just hours after, Pepsi Cola and 7Up products were available 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-Cola and 7Up products in Vietnam In April 2003, the company became a 100% foreign owned entity – a new entirely run subsidiary of PepsiCo Worldwide and 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 and deeply distributed to Vietnamese consumers from the five operations branches located across Vietnam
Over time, PepsiCo Vietnam has not only successfully operated in compliance with its corporate's world-class standard and the local regulations
as well but also sustain its market leadership position driven by impressive growth In addition, PepsiCo Vietnam also receives widespread recognition for its social contribution and tireless fosterage and support of the welfare of the community via active involvement in related activities and events
10 Statistics in 2012
Trang 25So far, PepsiCo Vietnam has not only managed the local Vietnam market but extended to cover the entire Indochina including Vietnam, Laos, and Cambodia
Although Pepsi has modern producing system, traditional flavorthat is 100% natural, low in sodium, caffeine-free, and still maintains the flavor of its original cola, which is very suitable with Vietnamese taste, the marketing strategy is the key that has created the awareness of Pepsi to the customers and gets the great amount of sales as present Pepsi know and understand the philosophy: “Know – Like – Believe and Buy” of Vietnamese consumers, and then apply supporting tools such as advertising which takes full advantage of verbal 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 penetrate deeply throughout the entire Corporation, from young color of logo, from the famous slogan “The Choice of a New Generation” to fashionable and eye-catching design products for the young, active promotion campaign, teenager brand ambassador and aggressive marketing strategies of outstanding young
2.1.1 Slogan
Leading advertising companies always know to use language Finding a special slogan for brand is the right way to build unique image of the products
Trang 26in customer‟s awareness Nowadays, when the young do not like using traditional 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 find new 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 to control - the dissemination of information via customers who used products, or even just watching advertisement of products Seth Godin, the author of the book “Ideavirus”11 says that before disseminating the idea, you have to think in advance what that element will say to provide them with the simplest way to convey the idea, and slogan is the ideal choice
Slogan is much more effective than any other promotion technique in doing the main function of the brand which is affirm the image and improve the sphere of influence of the brand Slogan is popular first and foremost in the brands which are introduced by the companies as a special lifestyle, not just a goods So that, slogan have to be build up following 5-star criteria, which means it has to meet 5 requirements: “simple, short, easy to understand, easy to remember and tied strongly to brand”
For example, in the ad of Budweiser beer, advertising scenes in which characters greet each other by loudly said “Whatssup” in the first time on TV immediately won the consumer‟s affection Or in the promotion campaign of Chocolate Snickers, the new character that Mars introduced today is a young man with sport style and interested in doing super nature things Then, the slogan “Go on, Snickers!” said by the man became catchwords of the young during a long time
Well knowing that, Pepsi also strongly impresses consumers with their slogans – which is young-people targeted and easy to remember Because the target customer of the Corporation is the young – who are active and
11
Seth Godin (Dec 2001) Ideavirus NY: Hyperion Books
Trang 27alwayswant to affirm themselves to the others, the slogan of Pepsi always very unique 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 of producing branding right in the initial days setting up the business
The slogan of Pepsi always stick to the young throughout periods Here are 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 are very active, energetic; who are the next generation
Especially, in their slogan, rhetorical devices like metaphor and hyperbole is used to create the special effects to the customers‟ mind However, how to use it effectively depends on particular countries because of the differences in traditional values Toward different countries, the metaphor conveys different messages For example, in the US in the July 12, 2000, Pepsi launched 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
Trang 28Twist, you have chance to enjoy a lemon flavored cola The gap between languages 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 result came out as the sentence which could be understood like “Pepsi brings your ancestors back from dead” Or into German: “Come out of the grave” Of course that is certainly a bold promise
Fortunately, that problem has not ever happened over a long period of operation 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 by Vietnamese 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 of several capacities
In 1938, Walter Mack became new president of Pepsi-Cola and no long after, he launched a new advertisement for Pepsi 12-ounce and a song with rhythm “Nickel, Nickle” The song immediately became popular and was covered in 55 languages
Trang 29In 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 every advertisement, commercial exhibitions, the theme music always are exciting song contributing to build up the impression of a product for young people of Pepsi
2.2 Non-verbal cues used by PepsiCo
2.2.1 Design
Secondly, when concentrating the Nonverbal cues, we cannot forget the design of Pepsi – in logo, in bottle The good design of logo with suitable colors, 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 colors has been used by market researchers to determine how best to apply this knowledge to influence customer‟s perception of business When choosing color for a brand or a logo, managers focus more on the feeling which they want to create than on the unique identity And when the feeling is regards as importance, other elements are neglected
In general, the best color is the ones that most represents the features of the brand John Deere is the leading brand of tractor It is not surprising when John 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 of color, you will do that Hertz, the first brand in car hiring service, chose Yellow Therefore, Avis, one of the second brand in this field, chose Red Another one, National, chose Green
Trang 30The Coke is reddish brown, therefore over the last 100 years, the appropriate color that Coca-Cola chose for the brand is Red
At first, Pepsi-Cola badly chose the color of brand They chose red and blue 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 of idea towards color strategy of Coca-Cola Many people admitted that although Pepsi was on the market, but in their mind, red symbols of Coca-Cola seem to appear everywhere The lack of unique color sink Pepsi in the red ocean of their big competitor
Years after, Pepsi has changed – which they should have done in 50 years ago: making their color brand opposite the color of the competitor Pepsi choose alone Blue A new Pepsi were launched named Pepsi Blue This product used to make a fever in Vietnam but quickly disappeared, because few people liked to drink that unnatural blue drink Pepsi even painted a Concorde blue 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 colors correspond to the five elements of water, fire, wood, metal and earth, taught in traditional Chinese physics Among them, Red, corresponding with fire, symbolizes good fortune and joy Red is found everywhere during Chinese New Year and other holidays and family gatherings; and in modern China, it is affiliated 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 happy feeling to the Chinese (An exporter of white wedding gowns to China would broke in no time, because this color signifies death) In contrast, Thai people and 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 an influence of color favor from China In addition, it also symbolizes enthusiasm,
Trang 31determination and success which are all the main values of the current Vietnamese society At the beginning, Pepsi felt hard to enter the Vietnamese market because of that color favor (althoughthis color is the most popular and neutral color on a global scale and used as a safe choice for a business building customer loyalty) Gradually, strategy that sticks the blue color with young idols, stars, together with young slogans have built the impression that “Pepsi is brand of the young” helps Pepsi to have their own position in the hearts of Vietnamese consumers
Logo
Logo is what establishes a brand name in the consumer mind It is the brands identify, signature, image and it plays a very effective role to improve the product or brand Pepsi kept on changing its logo from time to time along with the trade marks
Despite the passage of the century and the advancement of technology and trends, the Pepsi logo design still retains its uniqueness The logo is three dimensional in nature It comprises of a globe painted with two completely opposite colors complimented with a swirl in the center that separates the two disks of the globe
Pepsi logos in 1930, 1951, 1962, and 1987 have the same typical features: 1) is obviously influenced by font style designed by Coca-Cola; 2) the wave appears continuously and does not change during 75 years
In 2003, the logo was revamped with a more modern slightly serif font and 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 did not came into effect until early 2009 The Pepsi Globe is now two dimensional again and the swirl design has been changed to look like a smile It also added white outlines In mid-2010, all Pepsi types began using the same size smile