Final report topic factors affecting consumer behavior for pepsis carbonated soft drinks

TON DUC THANG UNIVERSITY FACULTY OF BUSINESS ADMINISTRATION MAJOR: INTERNATIONAL BUSINESS FINAL REPORT TOPIC: FACTORS AFFECTING CONSUMER BEHAVIOR FOR PEPSI'S CARBONATED SOFT DRINKS Lecturer: Le Thi Hong Minh Group: shift (Friday) Class: 19DF0701 Ho Chi Minh City, 25th of December, 2021 LIST OF GROUP MEMBERS Full Name Student ID Role Nguyen Thi Hong Ngoc 719D0105 Leader Le Tran Thao Vy 719D0255 Secretary Bui Le Hong Nghia 719D0099 Member Huynh Muoi Luy 719D0082 Member Hinh Van Ty 719D0221 Member Truong Minh Thi 719D0173 Member COMPLETION LEVEL EVALUATION TABLE Full name Huynh Muoi Luy Bui Le Hong Nghia Nguyen Thi Hong Ngoc Student ID Assignment of duties 719D0082 719D0099 719D0105 - Introduction - Conclusion - Prepare slide - Support interview - Chapter (1.2) - Chap (2.3.1) - Suport script - Make interview, plan presentation Chapter (2.3.1) Control all conatct and support for all members - Truong Minh Thi Hinh Van Ty 719D0173 719D0221 - Chapter (2.1) - Chapter - Chapter (1.1) Chap (2.3.2) - Evaluation Signature 100% Signed 100% Signed 100% Signed 100% Signed 100% Signed Le Tran Thao Vy 719D0255 - Support script - Chapter (1.3) Chapter (2.2) - 100% Signed ACKNOWLEDGEMENT The first thing we want to say on behalf of the entire group is that this subject is important; it has provided us with a general overview of the worldwide business field This is a significant subject in university programs since it not only provides broad knowledge about the industry but also provides real data on business needs We have gathered a lot of lessons, positive experiences, and skills from this subject over the last few months We'd want to thank PhD Le Thi Hong Minh, who taught and shared vital knowledge and experiences with us over the course of the study The professors' knowledge and fact-sharing stories will undoubtedly lay the groundwork for us to be successful in our future occupations However, preparing essay, report or presentations while researching will almost always result in errors As a result, we expect that our professors and classmates would comment and assess more so that we can progress in other disciplines Thank you for everything COMMENTARY OF TEACHER - TABLE OF CONTENTS INTRODUCTION CHAPTER 1: BRIEF OVERVIEW OF PEPSI BRAND 1.1 Introduction about PepsiCo and Suntory PepsiCo Vietnam Beverage 1.2 History of formation and development 1.2.1 History and development process of PepsiCo 1.2.2 Suntory’s journey and the story that brought Pepsi to Vietnam 1.3 Overview of carbonated soft drink product lines and the new zero-calorie Pepsi product line CHAPTER 2: AN EXAMINATION OF THE ELEMENTS INFLUENCING CUSTOMER BEHAVIOR IN RELATION TO PEPSI’S CARBONATED SOFT DRINKS 2.1 An overview of the Vietnamese soft drink market 2.2 Pepsi's primary customer segments 2.3 Key theory application, data analysis, and consumer "insights" 2.3.1 Internal factors influence consumer behavior 10 2.3.1.1 Perception 10 2.3.1.2 Learning and memory 14 2.3.1.3 Motivation and affect 15 2.3.1.4 The self: Mind, Gender, and Body 16 2.3.1.5 Personality: Lifestyles, and values 18 2.3.1.6 Attitudes and Persuasive Communications 20 2.3.2 External factors influence consumer behavior 26 2.3.2.1 Group Influences and Social Media 26 2.3.2.2 Income and Social Class 28 2.3.2.3 Cultures 30 CHAPTER 3: EVALUATE THE ANALYSIS RESULTS AND PROPOSE SOME NEW STRATEGIES FOR PEPSI IN THE NEXT 3-6 MONTHS 32 3.1 A general evaluation of Pepsi's existing products and strategy 32 3.2 Proposing a new strategy for Pepsi in the next 3-6 months 35 CONCLUSION 38 REFERENCES 39 LIST OF TABLE Table Perception 13 Table Learning and memory 15 Table Motivation and affect 16 Table The self: Mind, Gender, and Body 18 Table Personality: Lifestyles, and values 19 Table Attitudes and Persuasive Communications 21 Table "Live for Now" advertisement 25 Table Group Influences and Social Media 27 Table Income and Social Class 29 Table 10 Cultures 31 LIST OF PICTURE Picture Pepsi Brand Picture The logo of Pepsi over years Picture Revenue of key beverage brands in Vietnam from 2016 to 2019 Picture Tiki x Ha Anh Tuan Singer 32 Picture Pepsi in "gen Z" 33 Picture The drama of Pepsi 34 Picture Pepsi "ngõ nhỏ" 35 Picture Pepsi x Nguyen Thuc Thuy Tien 37 INTRODUCTION Customer behavior is a subject that specializes in the study of psychological as well as external objective elements that influence consumers' purchase decisions, thereby assisting them in selecting items that are appropriate for their needs This is also regarded as a relationship between environmental stimuli and human cognition and behavior In other words, customer behavior encompasses people's thoughts and feelings during the consumption process, as well as the activities they take to eventually conduct a certain behavior, such as purchasing decisions, utilizing or disposing of specific products or services With the outstanding development of the economy today, inter-country cooperation is steadily becoming more common, generating both opportunities and obstacles Faced with this circumstance, multinational firms' collaboration with local enterprises has assisted developing countries like Vietnam in learning from experience, boosting their qualifications in various fields and areas, and making it easier for consumers to access international brands For example, in the sphere of F&B, a slew of foreign brands such as McDonald's, Subway, Pizza Hut, Coca Cola, Pepsi, and others have recently arrived in Vietnam Especially Pepsi, which has now become recognizable to people all over the world, including Vietnam, this brand is increasingly expanding its scope of activities globally and steadily building its place in the hearts of customers When we think of Pepsi, we think of a brand from a multinational firm that is popular among young people and Vietnamese They not only provide a large choice of products at low costs, but they also continually update new trends, such as environmentally friendly packaging and products for clients who lead a healthy lifestyle It is partly because of this allure that we chose the topic "Factors Affecting Consumer Behavior Toward Pepsi's Carbonated Products" to provide an outline of the key to their success Furthermore, we want to understand more about the Pepsi brand, consumer psychology of carbonated soft drinks, and then we will suggest some Pepsi's new development strategy for the next 3-6 months The report is divided into three main chapters: Chapter 1: Brief overview of Pepsi brand In this chapter, we will provide an overview of PepsiCo Corporation and Suntory PepsiCo Vietnam Beverage Corporation From there, we will have a general understanding of the history of the birth and the story that introduced Pepsi to Vietnam Chapter 2: An examination of the elements influencing customer behavior in relation to Pepsi’s carbonated soft drinks Lê T°ờng Vy In terms of packaging, I The colors on believe it the poster are maintains the prior stunning items' brand character Pretty bright and lovely, highly appealing to the eye lot, I don't get bored In terms of taste, I believe that a Pepsi product without calories has a more lemon flavor and that it has more gas, making it more It's not too picky, and it's convenient for everyone 11 comfortable to drink than other Pepsi products The main color tone is black rather than blue, which is a distinguishing feature The combination of black and green TrÃn Lê has a lemon Thịnh flavor Pepsi and its collaboration with Blackpink will have a pink tint to provide a distinctive highlight, whilst other brands will not I see the Pepsi logo without calories, it is similar to the logo Lê Liên of other Pepsi Long products but the problem is the color of that Pepsi can, it enhances the Pepsi logo Its logo is similar to the logo of Phan other Pepsi Thành products, but the Long problem is that the color of that Pepsi What could be more delightful It's very cool than the sound of cool ice in my coupled with opinion sweltering summer? I got it to give it a try; it's not too sweet In my own opinion, it's Feel the as normal as extreme any other coolness social class In terms of taste, I The same prefer it as prior over goods ordinary Pepsi Not too Maybe it's prominent for refreshing myself Lighter Right size, than normal neat All clients will find it very convenient 12 can enhance the Pepsi logo Hồ Thị Thùy D°¡ng Concerning the logo of the zerocalorie Pepsi product, I notice that it is spherical in shape and has It seems Experience its three colors that normal to me flavor appear quite current and elegant In terms of color, matte black makes me feel more opulent Concerning the logo, I believe it TrÃn remains the same; Make the city Khã Nhi the color is black, come alive the style is cool and bold The taste of zero-calorie Pepsi is sweeter than that of other products It's most likely dropped thicker than other products The taste of When it's hot zero-calorie Pepsi is outside, Really nothing beats a sweeter convenient cold can of than that of other Pepsi products Table Perception ** Regarding the packaging and design, the interviewers stated that: ● The design is quite beautiful and eye-catching ● Black and blue colors are very attractive and visually appealing ● Looks strange, the rough packaging is easier to hold than the plain packaging even though the size has not changed ● Good and trending slogan ● The ads are fun because the bottle cap is popped and brings a lively atmosphere as well as the sound of summer and festive season ** In terms of taste, most of them feel that: ● ● ● ● It's more deliciously Lighter than normal Pepsi The lemon flavor is quite unique The taste is not too unpleasant and quite easy to drink 13 ** Regarding the product display area, they noticed: ● The shopping space for Pepsi products is attractive because of its central location ● Products placed at eye level will attract them more than high or low areas We may conclude that Sensory Marketing is critical since it seeks to develop an emotional link between consumers and products, services, or brands Marketing involves interacting with clients' emotions, but approaching them through their five senses involves directly accessing their emotions The qualities, attributes, or even the arrangement in the sales area that touch the five senses of customers will encourage them to buy more 2.3.1.2 Learning and memory Second, Learning and Memory, by showing our customers a Pepsi ads campaign called "Nothing Gets your way Home," we applied the classic condition theory behavior is a result of creating conditional reflexes, which is the continuous growth and repeated link to see how it affects them Usually, which position will attract you more about Pepsi products? Lê D°¡ng Thị Just at eye level Thanh Thanh Nguyễn Mai For me, convenience stores are easier Linh For me, face-to-face is probably Huỳnh Thị more accessible no matter what Thanh Hoài product it is Lê T°ờng Vy Looking down from above TrÃn Lê Thịnh In my opinion, it's from left to right Lê Liên Long Maybe when I face it Phan Thành Central of area Long Hồ Thị Thùy Tall places like buildings D°¡ng Do you feel the space to buy Pepsi products attracts you when you just walk into that area? I think it's normal, nothing special Yes, because it is located in the center it is quite attractive I think yes because I am also a fan of Pepsi products If the call is attractive, the Pepsi brand will attract me to buy more I think the display and shopping space are not very impressive to me I mean maybe yes, because the large space will create a comfortable feeling when shopping Small space, not right in the center I think their product display space is very attractive to me 14 I mean no, because I just go in and buy I think it's in a supermarket or a TrÃn Khã Nhi my favorite products and don't care place with a lot of people about the shopping space Table Learning and memory Now the result that we noticed was that they were typically too uncomfortable to watch an ad too much, but on the positive side, they were actually interested to see the commercial, because a lot of the rappers who came along, and that Pepsi had the slick humanist and meaningful message Apart from that, we could see that everything that was difficult after we drank Pepsi could be done in this commercial, but this accidentally this detail did something positive and real for the viewers, and it also applies to Truth Effect - the content that we've learned about So one can see that the advertising messages are concise, understandable, compelling and that if they are still repeated, again and again, they will automatically enter consumer awareness and memory 2.3.1.3 Motivation and affect In this area, my group is interested in Maslow's hierarchy of requirements and Drive Theory, which explains the biological state of the body when it lacks something it needs to survive Based on the findings of the interviews, we determined that Pepsi products met two demands of consumers: the biological need for refreshments and the safety need for a product In this scenario, weight reduction is considered harmless or good to the body How you feel after watching this ad campaign? Lê D°¡ng Good, Interesting because Thị Thanh there are many rappers Thanh participating Nguyễn Do you often get annoyed when you see the same ad too many times? Yes Do you think every problem after drinking Pepsi has a solution like in this ad? Yes Nguyễn Mai Linh Humanistic message Huỳnh Thị Thanh Feeling emotional Hoài Lê T°ờng Interesting Vy uncomfortable No Yes Sure Yes Depence on each situation 15 TrÃn Lê Thịnh Lê Liên Long Phan Thành Long Hồ Thị Thùy D°¡ng TrÃn Khã Nhi Not only good but also full Yes of meaning It is a harmonious combination that is both new and novel but still Yes retains the traditional culture of the Vietnamese people Not really, this is just a gimmick Not sure Feeling homesick with my family No Might be For me, I love my family more Yes not as advertised See the culture of Vietnamese people Not very annoying In my opinion yes Table Motivation and affect Furthermore, consumers are motivated to buy and utilize this product because it is a new product line that they want to try Many interviewees believe that after shopping, they not only feel pleased with their wants but also significantly improve their mood demonstrating that they have met their needs and returned to a state of mind (Homeostatics) or feeling joyful again (Retail Therapy) We may conclude that the products must fit the needs of consumers, and that Pepsi understands how to generate different, suitable items in order to encourage customers to buy more or to make the purchase and usage of products more appealing Products that give people hope and make them fall in love with life are really vital 2.3.1.4 The self: Mind, Gender, and Body Regarding the element of The self: Mind, Gender, and Body, our team decided to apply two main theoretical bases, which are self-image congruence models and selfconcept attachment Self-image congruence theory can be understood simply as consumers choose a product when the product's attributes match their thoughts, gender and body, while self-concept attachment theory is understood as the choice of which product to use will shape the consumer's identity To better understand the two theories of self-image congruence models and self-concept attachment, our team applied this theory through interviewing and surveying the opinions of consumers of zero-calorie Pepsi products on the age and lifestyle of the potential customers that this brand is targeting 16 Do you feel happy and Do you What compelled Do you happier after believe this noyou to purchase believe that purchasing a calorie Pepsi this zero-calorie shopping affect product line has calorie-free Pepsi Pepsi product? your mood? met your needs? product (lemon flavor)? Lê D°¡ng Thị Because it's a new product line that I Live healthy, lose Yes, shopping and I personally hav Thị Thanh Thanh weight want to try Zero Calorie Pepsi is a perfect replacement for the Nguyễn previous version I to lose weight Mai Linh used to drink, it supports my soft drink cravings eating is happiness Not necessarily I really enjoy shopping and love how it feels and the joy it gives, it's nice to be able to buy what I like Huỳnh Thị Thanh Hoài It's essential for my Refreshment and I feel normal weight loss needs weight loss Yes Lê T°ờng Vy Because I want to experience new product lines Yes TrÃn Lê Thịnh Do not cause overweight, excess calories Now I Healthy and don't don't have to worry worry about about sugar and gaining weight excess calories in my body Refreshment and Normal experience After buying and using the non-kcal (lemon flavored) Pepsi product, I feel very satisfied with the product Shopping helps me relax after tiring working hours 17 Lê Liên Long I want to try new flavors of Pepsi According to me is the need to May be drink Not sure Phan Thành Long Found by chance and bought to experience consumption Normal Yes Hồ Thị Thùy D°¡ng Because I'm on a Lose weight weight loss regimen Yes Yes No I think there's nothing better than going shopping TrÃn Khã I bought it for my Nhi idol satisfy love Table The self: Mind, Gender, and Body Regarding age, through the results of interviews with consumers of no-calorie Pepsi products, our group found that this product was chosen by the youth group to use the most and this age group accounted for 88 % Not only young people, but also middle aged consumers also use this drink, but the number of people in this group is not too high, at only 11% When talking about lifestyle, most of them think that Pepsi and they have similarities, that is people with a very active, open, and youthful way of life In addition, about 44% think they are people who love to experience and discover new things, and the remaining few think they have an extroverted, liberal, carefree, free, and loving lifestyle In addition, the majority of young people also feel that they have a connection or similarity with the2 attributes of this zero-calorie Pepsi product in particular or other characteristics of Pepsi products in general Hence, we can see that self-concept influences consumer behavior or Product Usage = Self-Image The likeness between brand personality and consumer personality will drive customers' purchasing decisions, build customer loyalty to the brand, and create a long-term relationship with the brand Therefore, the role of products in defining self-concept is very important It aims to help Pepsi build its brand or products with a personality similar to a group of the targeted customers 2.3.1.5 Personality: Lifestyles, and values About the Personality factor: Lifestyle & Values, the Big Five Personality Model was decided upon by our team as the main theory The Big Five Personality Model is a theory used to explain the behavioral characteristics of customers divided into certain characteristics such as Openness, Conscientiousness, Extraversion, Agreeableness, Neuroticism In this part, our team asked participants a few questions about their 18 personalities, then our team determined if any of the Big Five Personality Model personality groups were similar to the participants' personalities What key groups of target groups you think the zero-calorie Pepsi product is targeting? Do you think of How you think the yourself as having a zero-calorie Pepsi similarity to the no product will help you calorie Pepsi define yourself? product attributes? Lê D°¡ng Thị Teenagers/young people Thanh Thanh Being an active, young person Nguyễn Teenagers/young people Mai Linh Being an active, young person, Living liberally, carefree, free, loving life, Yes Loving to experience, discovering new things, Being an extrovert Huỳnh Thị Thanh Hoài Love to experience, discover new things Teenagers/young people Lê T°ờng Teenagers/young people Vy TrÃn Lê Thịnh Lê Liên Long Phan Thành Long Hồ Thị Thùy D°¡ng TrÃn Khã Nhi Teenagers/young people Middle-aged people Teenagers/young people Teenagers/young people Yes Yes Being an active, young person, Living liberally, Yes carefree, free, loving life, Being an extrovert Being an active, young Yes person Being an active, young Yes person Love to experience, discover new things, Be an No extrovert Love to experience, discover new things Yes Active, young, liberal, Yes carefree, free, love life Table 52 Personality: Lifestyles, and values Teenagers/young people 19 The results show that most of the interviewees feel that they belong to the Openness, Extraversion, and Agreeableness groups In there: • More than 50% of the 2participants feel that they have such an adventurous personality They are curious about the world and the people around them, are creative, love to experiment, and are eager to learn new things and have new ... packaging and products for clients who lead a healthy lifestyle It is partly because of this allure that we chose the topic "Factors Affecting Consumer Behavior Toward Pepsi''s Carbonated Products"... more about the Pepsi brand, consumer psychology of carbonated soft drinks, and then we will suggest some Pepsi''s new development strategy for the next 3-6 months The report is divided into three... group 15-54 years old accounting for more than 62.2%; this age group is highly valued for its beverage consumption demand Furthermore, carbonated soft drinks account for 23.74 percent of the beverage