Field trip report coca cola factory in hanoi

NATIONAL ECONOMICS UNIVERSITY FIELD TRIP REPORT COCA-COLA FACTORY IN HANOI Class: EMBA21 Group: #2 Nguyen Le Bang Dinh Hai Dang Tran Anh Dung Pham Thi Ha Cao Minh Hieu Tran Thi Tuyet Nhung Nguyen Duc Huy Ngo Thi Dieu Linh Cao Xuan Loc Ha Noi - June 2023 TABLE OF CONTENT I ABSTRACT: II INTRODUCTION A Background of the Company B Milestone of Coca-Cola Vietnam C Purpose of the Report III BUSINESS OPERATIONS A Products or Services Offered B Target Market and Customer Segments C Competitive Advantage D Supply Chain and Distribution Channels E Manufacturing or Service Delivery Process IV MARKET ANALYSIS A Industry Overview B Market Trends and Dynamics C Market Share and Competitors D V SWOT Analysis CORPORATE SOCIAL RESPONSIBILITY A Environmental Sustainability Initiatives B Social Impact Programs C Ethical Practices and Governance VI RISK ANALYSIS A Market Risks B Operational Risks C Financial Risks 10 D Legal and Regulatory Risks 10 VII FUTURE OUTLOOK 10 A Opportunities and Challenges 10 B Forecasted Growth and Financial Projections 11 D Key Initiatives and Roadmap 11 VIII.CONCLUSION 12 A Summary of Findings 12 B Recommendations 12 C Final Thoughts 13 This is a preview Do you want full access? Go Premium and unlock all 15 pages I ABSTRACT: The field trip organized by the School in National Economics Access to Business all documents University took us on an insightful journey to explore the operations and practices of Coca-ColaGet Vietnam This visit provided a unique opportunity to Unlimited Downloads gain firsthand experience and knowledge about one of the leading companies in the Vietnamese beverage industry Throughout Improve your grades the trip, we had the privilege to witness the company's commitment to corporate social responsibility, understand its market strategies, and observe its efforts to adapt to changing consumer preferences The field trip proved to be an invaluable experience, enhancing our understanding of the beverage industry, and offering practical Upload insights into the operations of Coca-Cola Vietnam Share your documents to unlock We would like to express our sincere appreciation to the National Economics University, Business School for organizing this informative and insightful field trip The experience provided us with valuable knowledge and practical insights into the operations and practices of Coca-Cola Vietnam We are grateful for the opportunity to visit Coca-Cola Vietnam and extend our Free Trial thanks to the company for their warm and willingness to share their Get 30 days ofwelcome free Premium expertise This field trip has undoubtedly enriched our understanding of the beverage industry and will contribute to our academic and professional development Already Premium? Logininits business operations due Coca-Cola is currently experiencing challenges to the collapse of the real estate market and stock market, along with high interest rates and various other macroeconomic factors that have impacted its operations in 2023 Despite these difficulties, Coca-Cola remains the thirdlargest player in the non-alcoholic beverage market in terms of market share To overcome these challenges and fuel growth, Coca-Cola has set an ambitious target of achieving a 20% growth rate by the end of 2023 This growth plan is likely to involve strategic initiatives aimed at expanding market presence, improving distribution channels, and introducing innovative products to meet changing consumer preferences By focusing on these areas and adapting to the evolving market conditions, Coca-Cola aims to regain its momentum and secure a stronger position in the industry 1|Page However, it is important for Coca-Cola to closely monitor the economic environment and adapt its strategies accordingly The company needs to navigate the challenges posed by the current market conditions, including the impact of high interest rates and other macroeconomic factors By carefully analyzing market trends and consumer behavior, Coca-Cola can identify opportunities for growth and make informed decisions to drive its business forward II INTRODUCTION A Background of the Company The Coca-Cola Company is a global leader in the beverage industry, known for its iconic Coca-Cola brand and a wide range of other beverages The company was founded in 1886 in Atlanta, Georgia, by pharmacist John S Pemberton Over the years, Coca-Cola has expanded its product portfolio and established a strong presence in more than 200 countries, including Vietnam In Vietnam, Coca-Cola's full name is Coca-Cola Beverages Vietnam Ltd., with its Vietnamese name being “Công ty TNHH Nước giải khát Coca-Cola Việt Nam” Coca-Cola was first introduced in 1960, but it was officially established as Coca-Cola Beverages Vietnam Ltd in January 2001, following the merger of three Coca-Cola enterprises in the northern, central, and southern regions into one unified company Coca-Cola Vietnam currently has factories located in cities across the three regions of Vietnam: Ho Chi Minh City, Da Nang, and Hanoi This allows the company to easily distribute and expand its distribution network throughout all three regions, providing full product availability to distributors in all three areas nationwide Coca-Cola Vietnam also creates approximately 4,000 direct and indirect jobs, generating to 10 times more employment through its supply chain activities Through continuous development efforts, Coca-Cola Beverages Vietnam Ltd is currently ranked third in the Top 10 reputable beverage companies in 2020, in the Non-Alcoholic Beverage category (soft drinks, tea, coffee, etc.), according to Vietnam Report's assessment 2|Page B Milestone of Coca-Cola Vietnam • 1960: Coca-Cola was first introduced in Vietnam • February 1994: Coca-Cola returned to Vietnam within 24 hours after the United States lifted its trade embargo against Vietnam • August 1995: Coca-Cola Indochina Pte Ltd (CCIL) formed a joint venture with Vinafimex, a state-owned enterprise under the Ministry of Agriculture and Rural Development, establishing Coca-Cola Ngoc Hoi in Hanoi • September 1995: CCIL formed a joint venture with Chuong Duong Beverage Company, creating Coca-Cola Chuong Duong in Ho Chi Minh City • January 1998: CCIL continued its joint venture with Danang Beverage Company, resulting in Coca-Cola Non Nuoc • October 1998: The Vietnamese government allowed joint venture companies in the South to convert into 100% foreign-invested companies • March 1999: The government permitted Coca-Cola Indochina to acquire the entire stake in the joint venture in the Central region • August 1999: The government approved the conversion of Coca-Cola Ngoc Hoi joint venture into a 100% foreign-invested enterprise, named Coca-Cola Hanoi • January 2001: The Vietnamese government authorized the merger of the three enterprises in the Northern, Central, and Southern regions, forming Coca-Cola Beverages Vietnam Ltd The company's headquarters are located in Thu Duc, Ho Chi Minh City, with two branches in Ha Tay and Da Nang • March 1, 2004: Coca-Cola Vietnam was transferred to Sabco, one of CocaCola's reputable bottling corporations worldwide • 2004-2012: Despite steady annual revenue growth, Coca-Cola Vietnam reported continuous losses during its period as a 100% foreign-invested company For instance, while revenue increased from 728 billion VND in 2004 to 2,529 billion VND in 2010, nearly 3.5 times in years, the company still reported losses • Coca-Cola Vietnam: Formation and development of the leading preferred beverage brand • 2012: Coca-Cola Vietnam resumed its bottling operations from Sabco in the local market 3|Page This is a preview Do you want full access? Go Premium and unlock all 15 pages • 2013, 2014: Coca-Cola reported profits for the first time after consecutive years of losses Specifically, the disclosed figures from Ho Chi Minh City Tax Department indicated profits of 150 billion VND and 357 billion VND in 2013 Access to all documents and 2014, respectively • 2015-2019: The company achieved continuous growth in revenue and profit Get Unlimited Downloads and accomplished significant successes in the Vietnamese market, particularly in the Northern region.Improve your grades • 2019: Coca-Cola Vietnam was recognized as the 2nd most sustainable development enterprise in Vietnam by VCCI and the most favored employer by Career Builder Upload C Purpose of the Report Share your documents to unlock The purpose of this report is to provide an in-depth overview of Coca-Cola's business operations in Vietnam The report aims to examine the company's market position, growth strategies, and key initiatives in the Vietnamese market It will also analyze the Free challenges and opportunities that Coca-Cola faces in Trial Vietnam and provide insights into its prospects in the country Get 30 days offuture free Premium III BUSINESS OPERATIONS A Products or Services Offered Log in Coca-Cola offers aAlready wide rangePremium? of products in Vietnam, including carbonated soft drinks, non-carbonated beverages, energy drinks, juices, and bottled water They have a diverse portfolio of brands and flavors to cater to different consumer preferences Carbonated Soft Drinks: • Coca-Cola Classic • Coca-Cola Zero Sugar • Coca-Cola Light (Diet Coke) • Fanta Orange • Fanta Strawberry • Sprite • Schweppes Non-Carbonated Beverages: 4|Page Minute Maid Orange Juice Minute Maid Pulpy • Aquarius • Georgia Coffee (canned and bottled) Energy Drinks: • Monster Energy • Burn Energy • Thumbs up Energy (Newcomer in Engergy drink segment) Juices: • Minute Maid Mixed Fruit Juice • Minute Maid Apple Juice • Minute Maid Grape Juice • Minute Maid Mango Juice Bottled Water: • Dasani • • B Target Market and Customer Segments Coca-Cola targets a broad customer base in Vietnam, including individuals of all ages and demographics Their products appeal to both urban and rural populations, and they aim to reach consumers across various income levels Coca-Cola also focuses on capturing the preferences of the younger generation, who are significant consumers of soft drinks and other beverages C Competitive Advantage Coca-Cola Vietnam enjoys several competitive advantages in the market Firstly, its well-established brand name and global reputation give it a strong competitive edge Additionally, Coca-Cola's extensive distribution network and strategic partnerships allow them to reach a wide range of retail outlets and ensure product availability throughout the country The company's ability to adapt and innovate in response to changing consumer demands is another key advantage D Supply Chain and Distribution Channels Coca-Cola Vietnam has a robust supply chain and distribution system They work closely with local suppliers to source raw materials and maintain quality 5|Page control The company operates multiple manufacturing plants strategically located in different regions of Vietnam These plants produce the beverages, which are then distributed through a network of wholesalers, retailers, and third-party distributors to reach various outlets, including supermarkets, convenience stores, restaurants, and cafes E Manufacturing or Service Delivery Process Coca-Cola's manufacturing process in Vietnam involves the production of beverages through precise blending and bottling techniques The company adheres to strict quality standards and follows global best practices to ensure consistency and safety The beverages are packaged in bottles, cans, and other containers, which are then labeled, packaged, and prepared for distribution In terms of service delivery, Coca-Cola focuses on timely and efficient distribution to ensure their products reach consumers in a fresh and ready-toconsume condition IV MARKET ANALYSIS A Industry Overview The beverage industry in Vietnam is a highly competitive and rapidly growing market It encompasses various segments, including carbonated soft drinks, non-carbonated beverages, bottled water, and energy drinks The industry is driven by factors such as population growth, urbanization, rising disposable income, and changing consumer preferences B Market Trends and Dynamics Shifting Consumer Preferences: There is a growing trend towards healthier beverage options, including low-sugar or sugar-free alternatives, natural and organic drinks, and functional beverages that offer specific health benefits Premiumization: Consumers are increasingly willing to pay a premium for higher-quality and premium branded beverages Convenience and On-the-go Consumption: The demand for ready-to-drink beverages and single-serve packaging formats is on the rise, driven by busy lifestyles and the increasing popularity of convenience stores and quickservice restaurants 6|Page This is a preview Do you want full access? Go Premium and unlock all 15 pages Digital and E-commerce: The digitalization of the beverage industry is transforming consumer engagement, marketing, and distribution channels Ecommerce platforms play a significant role in reaching a wider customer base Access to all documents and providing convenient home delivery options Get Unlimited Downloads C Market Share and Competitors Coca-Cola Vietnam faces competition from both local and international Improve your grades beverage companies While the market is highly fragmented, Coca-Cola maintains a strong market position and is one of the leading players in the industry Other major competitors include Tan Hiep Phat Group, Suntory PepsiCo Vietnam Beverage, and Nestlé Waters, Vinamilk, Lavie, Red Bull etc Upload Share your documents to unlock D SWOT Analysis • • • • • • • 7|Page Free Trial Get 30 days of free Premium Strength Weakness Strong global brand recognition and • Increasing competition from local reputation and international beverage companies Diverse portfolio of well-known • Challenges in meeting evolving beverage brands consumer preferences for healthier Already Premium? Log in Extensive distribution network and and more natural beverage options strategic partnerships Ability to adapt and innovate in response to changing market trends Opportunity Threat Growing market for healthier and • Intense competition and price wars in functional beverages the beverage industry Increasing urbanization and rising • Government regulations and taxes on disposable income sugary drinks Digitalization and e-commerce for • External factors such as economic enhanced customer engagement and instability or natural disasters distribution impacting consumer spending patterns V CORPORATE SOCIAL RESPONSIBILITY A Environmental Sustainability Initiatives Coca-Cola Vietnam is committed to environmental sustainability and has implemented various initiatives to minimize its environmental impact These include: • Water Stewardship: Coca-Cola Vietnam focuses on water conservation and has implemented projects to improve water efficiency in its operations They also collaborate with local communities and stakeholders to protect water resources • Packaging Recycling: The company promotes responsible packaging by supporting recycling programs and initiatives They work towards increasing the collection and recycling of beverage packaging to reduce waste and promote a circular economy • Energy Efficiency: Coca-Cola Vietnam strives to improve energy efficiency in its manufacturing processes and facilities They invest in energy-efficient technologies and practices to minimize their carbon footprint B Social Impact Programs Coca-Cola Vietnam actively engages in social impact programs to contribute to the well-being of communities in Vietnam These initiatives include: • Education and Youth Empowerment: Coca-Cola supports educational programs and scholarships for students, focusing on enhancing skills and providing opportunities for youth empowerment • Women's Empowerment: The company promotes gender equality and women's empowerment through initiatives that provide training, entrepreneurship opportunities, and support for women-owned businesses • Community Development: Coca-Cola Vietnam invests in community development projects, including infrastructure improvements, clean water access, and support for local livelihoods C Ethical Practices and Governance 8|Page Coca-Cola Vietnam adheres to high ethical standards and follows a strong governance framework They prioritize transparency, integrity, and accountability in their operations The company has robust policies and procedures in place to ensure compliance with legal and regulatory requirements They also promote a culture of responsible business conduct and encourage ethical behavior among employees and business partners Overall, Coca-Cola Vietnam demonstrates its commitment to corporate social responsibility through environmental sustainability initiatives, social impact programs, and ethical practices that aim to create positive change and contribute to the sustainable development of Vietnamese communities VI RISK ANALYSIS A Market Risks • Intense Competition: Coca-Cola Vietnam faces competition from both local and international beverage companies Rapidly changing consumer preferences and the entry of new players pose a risk to the company's market share and growth • Economic Factors: Economic instability, fluctuating exchange rates, inflation, and changes in consumer purchasing power can impact the demand for Coca-Cola products • Shift in Consumer Preferences: Changing consumer preferences towards healthier alternatives or specific beverage categories may require Coca-Cola to adapt its product offerings to meet evolving market demands B Operational Risks • Supply Chain Disruptions: Disruptions in the supply chain, such as raw material shortages, transportation issues, or natural disasters, can impact production and distribution, leading to potential product shortages or delays Coca-Cola needs at least weeks for ordering all the flavoring materials for creating the current line of products in Vietnam • Quality Control: Maintaining consistent product quality and meeting regulatory standards is essential for Coca-Cola Any lapses in quality 9|Page This is a preview Do you want full access? Go Premium and unlock all 15 pages control or product safety can damage the company's reputation and result in legal and financial consequences • Technological Advancements: The rapid pace of technological Access to all documents advancements can present operational challenges for Coca-Cola, such as the need to invest in new manufacturing Get Unlimited Downloadstechnologies or adapt to digitalization in marketing and distribution channels Improve your grades C Financial Risks Fluctuations in Input Costs: Changes in the prices of raw materials, packaging, and energy can impact Coca-Cola's profitability and margins Currency Exchange Rates: As Coca-Cola operates globally, fluctuations in Upload currency exchange rates can affect its financial performance, particularly in Share your documents to unlock terms of import/export costs and foreign currency-denominated debt D Legal and Regulatory Risks Compliance with Laws and Regulations: Coca-Cola must comply with various laws and regulations Freerelated Trialto food safety, labeling, advertising, intellectual property, andGet employment Non-compliance can lead to 30 days of practices free Premium legal disputes, fines, reputational damage, and restrictions on operations Health and Nutrition Regulations: Increasing regulations and taxes on sugary beverages and the promotion of healthier options may impact Coca-Cola's sales and marketing strategies Log in Coca-Cola VietnamAlready needs toPremium? actively monitor and manage these risks to ensure business continuity, protect its brand reputation, and sustain long-term growth VII FUTURE OUTLOOK A Opportunities and Challenges Opportunities: • Growing demand for healthier and functional beverages presents an opportunity for Coca-Cola Vietnam to introduce new product offerings and capitalize on changing consumer preferences • The expanding middle-class population and rising disposable income in Vietnam provide a favorable market for the beverage industry 10 | P a g e Digitalization and e-commerce trends offer opportunities for Coca-Cola to enhance customer engagement, expand distribution channels, and gather valuable consumer insights Challenges: • Intense competition from both local and international beverage companies requires Coca-Cola Vietnam to continuously innovate and differentiate its products and marketing strategies • Increasing health consciousness and regulations on sugary drinks pose challenges for the company to adapt its product portfolio and effectively communicate the nutritional benefits of its offerings • Rapidly evolving consumer preferences and the need to stay ahead of emerging trends require agility and responsiveness from Coca-Cola Vietnam • B Forecasted Growth and Financial Projections Exact financial projections for Coca-Cola Vietnam's future growth are not available as it depends on various factors, including market conditions, consumer behavior, and competition However, the company is expected to benefit from the positive growth trajectory of the beverage industry in Vietnam and its continued investments in expanding its distribution network and product portfolio C Innovation and Technology Trends Coca-Cola Vietnam should focus on leveraging innovation and technology trends to stay competitive and meet changing consumer demands This includes embracing digital marketing, e-commerce platforms, and social media engagement to enhance brand awareness and reach consumers Additionally, investing in research and development for new beverage formulations, packaging innovations, and sustainable practices can drive future growth D Key Initiatives and Roadmap Coca-Cola Vietnam should prioritize the following key initiatives and roadmap: 11 | P a g e • • • • • Expand the portfolio of healthier and functional beverage options to cater to the growing demand for wellness-focused products Enhance sustainability efforts by implementing more eco-friendly packaging solutions, reducing water usage, and improving energy efficiency Strengthen partnerships with local suppliers, distributors, and retailers to ensure efficient supply chain management and expand market coverage Invest in consumer insights and market research to better understand evolving preferences and tailor marketing strategies accordingly Foster collaboration with local communities through social impact programs, emphasizing education, women empowerment, and community development VIII CONCLUSION A Summary of Findings Coca-Cola Vietnam is a prominent player in the Vietnamese beverage industry, offering a diverse range of products to a broad customer base The company enjoys a strong market position and brand recognition, supported by an extensive distribution network and strategic partnerships Coca-Cola Vietnam has demonstrated its commitment to corporate social responsibility through environmental sustainability initiatives, social impact programs, and ethical practices In terms of market analysis, Coca-Cola Vietnam operates in a competitive and rapidly growing market Shifting consumer preferences, economic factors, and intense competition pose both opportunities and challenges for the company Operational and financial risks, as well as legal and regulatory compliance, require careful management However, Coca-Cola Vietnam is well-positioned to leverage opportunities and address challenges through its established brand, market presence, and commitment to innovation B Recommendations 12 | P a g e This is a preview Do you want full access? Go Premium and unlock all 15 pages To ensure future success, Coca-Cola Vietnam should consider the following recommendations: Access to all documents • Continuously monitor and adapt to changing consumer preferences, particularly towards healthier and functional beverages, and adjust Get Unlimited Downloads product offerings accordingly • Strengthen its sustainability efforts by further reducing environmental Improve your grades impact, investing in eco-friendly packaging solutions, and promoting responsible waste management • Embrace digitalization and e-commerce trends to enhance customer engagement, expand distribution channels, and gather valuable Upload consumer insights Share your documents to unlock • Foster partnerships and collaboration with local communities, focusing on education, women empowerment, and community development initiatives • Stay agile and responsive to market dynamics, competitive pressures, and regulatory changes, maintaining a strong commitment to Free while Trial ethical practices and governance Get 30 days of free Premium C Final Thoughts Coca-Cola Vietnam has achieved significant success in the Vietnamese beverage industry, maintaining a strong market position and actively Already Premium?With Logits in focus on sustainability, contributing to the local community innovation, and responsible business practices, Coca-Cola Vietnam is wellpositioned to navigate the challenges and capitalize on the opportunities in the dynamic Vietnamese market By leveraging its brand strength, extensive distribution network, and strategic initiatives, Coca-Cola Vietnam can continue to thrive and deliver value to its customers and stakeholders in the years to come 13 | P a g e