2022 augmented reality marketing coca cola case study

research proposal exploring and identifying the impact of AR marketing on purchasing behavior of Gen Y with the analysis of case study of the implementation AR technology in Coca Cola’s marketing campaign in Vietnam.

RESEARCH PROPOSAL TOPIC: THE IMPACT OF AUGMENTED REALITY MARKETING IN PURCHASING INTENTION OF MILLENNIALS PURCHASING BEHAVIOR THE CASE STUDY OF COCA COLA IN VIETNAM

Chapter 1: Theoretical background

Introduction

These days individuals experience existence where desktop-based associated with innovation moving towards mobile and wearable computing (Satyanarayanan, 2001; Ware and

Balakrishnan, 1994) The individual devices are being changed into artificial, external eyes and ears for detecting implanted data in the encompassing condition Modern technology is

increasingly accelerating, transforming many industries and shaping the future world With these technological advances, the race of leading technology companies in the world on technology innovation must also take advantage of their time and resources to be able to stay strongly in the market And marketing technology that help enterprises to improve the efficiency of marketing

campaigns for their products and services is not the exception of this trend (Esha Jain, 2017) The upsides of both real and digital can be mixed into solitary interface, which empowers new applications and services to be created (Thomas Olssona, 2012) The way towards bringing the real and virtual closer together outcomes into the starting point of augmented reality

Virtual reality (VR) technology was a new term that appeared around the early 90s, but really flourished in the last few years (Moses Okechukwu Onyesolu, 2011) As predicted by Gartner (global market research organization), VR topped the list of 10 strategic technologies in 2009 In the US and Europe, virtual reality (VR) has become a key technology thanks to its wide

applicability in all areas (research and industry, education and training, tourism, real estate services, commerce and entertainment, etc.) and economic potential, as well as in civil and military Especially in marketing field, the application of augmented reality brings breakthrough experience for potential customers (Filip Grudzewski, 2018) Augmented reality (AR) is a technology that develops further from VR technology AR focuses on combining the real world with virtual information, not separating users into a separate space like VR (Ooi Jin, 2015) AR allows users to interact with virtual space in real life, user will touch everything in that space and users and the environment around them can interact with each other (R Silva, 2003) It is also the technology to spread to users the fastest thanks to new technology effects which help to attract and stimulate user’s discovery and imagination AR premises to create marketing

experience, create breakthroughs for users because the product is not only displayed before the eyes but also it also can be touched, interacted to meet the real needs of customers (R Silva, 2003) Marketing experiences with AR, it is also an effective tool for manufacturers to receive backward interactions with feedback from users, thereby making reasonable and timely

adjustments to their products and services to meet the need of customers better (A.R Philipp, 2019) It is due to huge benefits that AR brings to businesses, many organizations effectively attempted to grow business with this innovation (Elham Baratali, 2016) Big and well-known brands have launched innovative new marketing campaigns with AR technology For example, Adidas gives users a thick experience before buying Ikea allows customers to experience and choose suitable furniture samples to order and buy Volvo lets users test drive and experience the new features and utilities of the car L’Oreal enables users choose the most suitable cosmetics for each user Besides the ability to improve customer experience, AR technology has been proven

to have positive impact on customer purchasing behaviors through providing entertainment,

emotions and experimental experience of using products which add more values and information

in the process of buying decision making of customers (Abrar, 2018)

The millennials is a term used to refer to those born between 1980 and 2000 Unlike Baby Boomer born in the period 1950-1969 with many political vibrations, or people born in the period 1970 - 1985 (generation X) when the world did not have many breakthroughs in

economy, information technology, generation Y was the generation born in the period when the whole world transformed with the advances of science, telecommunications, of multifaceted cooperation (Flor Madrigal Moreno, 2017) What is more important, moreover, is the main workforce, the main customer, who determines the survival and development of the current global economy (Matthew B Cimperman, 2018) Because of the strong number and one of the most powerful purchasing groups, millennials has become the top concern of many brands in all industries, but it is also a problem Because customers of this generation are tech-savvy but full

of skepticism, traditional ads no longer work (Katherine, 2011) Despite the diversity of

millennials, there is a common theme throughout the Y-generation love of technology

Technology is so important to millennials that 53% want to give up smell rather than their technology (Ljupka, 2017) More than 80% sleep with their mobile phones and 32% millennials check social media from toilets (Ljupka, 2017) A report by Nielsen on millennials shows more than 74% feel that new technology makes their lives easier While 54% say the new technology brings them closer to their friends and family (Nielsen, 2017)

It is therefore not surprising that millennials are embracing AR In fact, millennials are twice as likely to buy AR headsets as their peers Not only is it the promise of advanced technology that attracts millennials, the rich experiences that AR brings are equally appealing (H.B Amir, 2017) Research objectives

However, previous research and studies have not identified clearly how the application of AR in marketing for products and services make influence on purchasing intention of millennials Therefore, this research focus on exploring and identifying the impact of AR marketing on purchasing behavior of Gen Y with the analysis of case study of the implementation AR

technology in Coca Cola’s marketing campaign in Vietnam

Research questions

With the objectives mentioned above, the research paper come to find answers for the following question: How does augmented reality marketing impact on purchasing intention of millennials

in Vietnam?

Chapter 2: Literature review

The concept augmented reality

Definition of augmented reality

Augmented reality began in 1968 by Sutherland, who used it to build head-mounted display systems As the development of augmented reality became concerned, it was quickly used in many areas of business, logistics, gaming, manufacturing and retail (C Julie, 2011) AR is defined as is the physical extension of the universe by adding layers of information generated by the computer to the real environment (C Julie, 2011) The information in this context can be any virtual object or content, including text, images, videos, sounds, haptic feedback (vibration on touch - called Haptic Feedback), data, GPS, and even smells (smells) But AR is not just simple display technology It also represents a kind of real-time native user interface for human

interaction with digital objects and devices (R Silva, 2003) Silva and his colleagues in their research in the application of AR pointed out that AR can be built by performing four basic and separate tasks, and combining output in a useful way as following (R Silva, 2003)

Screen capture: First, the reality needs to be enhanced by using video capture devices such as cameras or see-through devices such as a head-mounted display (HMD)

Scene identification: Next, the actual captured image must be scanned to determine the exact location where the virtual content should be embedded This location can be identified by signs (visual tags) or by tracking technologies such as GPS, sensors, infrared, or lasers

Screen processing: When the context is clearly identified and defined, corresponding virtual content is required, usually from the Internet or from any type of database

Scene visualization: Finally, the AR system creates a mixed image of real space as well as virtual content Experts also distinguish between Augmented Reality (AR) - augmented reality and Virtual Reality (VR) - virtual reality VR is a completely computer-generated environment, users immerse themselves fully in the three dimensions displayed on a computer screen or through

special displays, such as Oculus Rift In contrast, AR (or Mixed Reality as it is sometimes called) combines both virtual and real AR users can still feel the real world around them

The development of augmented reality

The term AR first appeared in 1950 when a cameraman named Morton Heilig believed that cinema was an art that viewers were able to interact with movies being shown on the screen In

1962, he began developing his ideas, which in 1955 he called "the Cinema of the Future" called Sensorama, which existed before the advent of digital computers Subsequently, Ivan Sutherland devised a head-on device with the idea that it would help display information of the immediate objects in 1966 By 1968, he developed the working prototype of the first AR system Myron Krueger then in 1975 set up an artificial reality laboratory called the video room It is an area that allows users to easily perform virtual elements for the first time (J Carmigniani, 2011) In the early 1990s, AR became a research area In 1997, Ronald Azuma surveyed and wrote an AR survey in which he defined AR means combining real and virtual into one being recorded in 3-dimensional space and interacting in real time (J Ford, 2008) In 2000, Bruce Thomas created the first mobile AR game and presented it at the International Symposium on Wearable

Computers In 2007, applications in the medical field began to develop Later, more AR apps were designed, and one of them was the Wikitude AR Travel Guide app created in 2008 Also in

2008, Gartner Inc predicted AR would be one of the 10 most difficult technologies Most

applications in the period 2008-2012 In addition, in the future it is clear that AR not only

develops apps based on search location but also thrives in the fields of social networks and games, education, life health Figure 1 shows the development of augmented reality through historical periods

Figure 1: The development of AR

Over the years, AR applications have become flexible and usable on mobile phones In addition, the AR application has become one of the media (for example, news, entertainment and sports facilities) Recently, AR applications are heavily used in the field of e-commerce and tourism Besides, it becomes a very important part of the field of virtual reality (VR) applications AR has

a lot of advantages over traditional VR One of the most obvious advantages of AR is that it feels more realistic, more interactive because AR focuses on integration between the virtual

environment and the real world

Difference between virtual reality and augmented reality

Virtual reality is also a technology that interacts with the digital world, helping the experience to immerse people in a whole new space ahead (Gandolfi, 2018) With virtual reality, users seem to

be in a completely artificial environment simulated and created by computer software There are images and sounds extremely realistic like you are standing in that environment Virtual reality

technology will need the interaction of the motion sensor or gyroscope to recognize the

movements of the user In addition, there should be a computer with good enough graphics, input and output devices, etc (N Anand, 2018) Virtual reality technology is now applied a lot in life, especially entertainment, virtual reality games and train some special jobs like pilot

Meanwhile, augmented reality is a combination of real life images around users with virtual information that is completely separate from the real world and the virtual world like VR (N Anand, 2018) AR helps the actual images users are viewing become richer and more diverse with virtual images AR technology will add virtual details created by a computer or smartphone (Elham Baratali, 2016) Users can freely interact with virtual content in the real world such as touch and capture, users can see a typical example of AR technology applied in Pokemon Go This is a game, proving it is a virtual element, but users can still move in their real world, from the streets, offices or at home, join to catch the Pokemon by interacting on the smartphone screen

The first difference can be easily noticed that the devices attached to these two technologies are completely different (N Anand, 2018) For VR, the device that comes with user needs to be a virtual reality headset, and users are completely dependent on it For AR technology, users absolutely do not need to depend on specific equipment such as VR, such as Pokemon Go games, users just need to use their smartphone

AR is also easier to apply in practice, while VR is more often used in entertainment or for new experiences Both technologies allow entertainment experiences to become more popular and more popular (Gandolfi, 2018)

In terms of popularity, AR is also more popular than VR, AR can be used immediately with a smartphone because the phone already has cameras and sensors to identify the outside world, whereas, VR requires users to have powerful hardware to be able to experience, which costs to buy VR devices In the low-end segment we have Google Cardboard from 10 - 15 USD but the higher segment is high-end devices such as Oculus Rift about 600 USD or HTC Vive about 800 USD In addition, the virtual reality glasses also require computers with powerful configurations, the cost for computers is really big and not everyone can afford it

AR and VR are different but not two rival technologies, each has its own application and the other cannot, so these two technologies will still exist in parallel VR is more commercially available and popular, while VR is more technology-specific, so it takes time to develop and make devices more accessible to users can appear widely In general, AR and VR are all great technologies that give users experiences and interactions that create room for entertainment and fun or to bring interaction between digital devices and the real world Not only AR and VR operate independently, but actually often work together to provide an optimal user experience Finally, whether independently or in combination with each other, AR and VR are open to users for real and virtual worlds

The application of AR in marketing

Digital media has been more and more interested and selected in recent years It allows users to interact more deeply, create a different, realistic world, where users can feel, express emotions, freely experience with the product (Stephen, 2015) The trend of digital marketing is also

evolving to meet the technology's growing desire to understand technology for consumers who are accustomed to convenient access to almost everything they want with smartphones and Internet connection (Esha Jain, 2017) Currently, there are many businesses that have been applying augmented reality to communication activities, promoting products, brands, businesses

to customers and the public (S.D Sumesh, 2015) Augmented reality communication is a new marketing trend of 2019, promising to bring exciting, authentic and new experiences to

customers and the public Along this line, Kenneth and his colleagues (2015) also agreed that the implementation of AR technology in marketing creates a favorable condition for businesses to bring customers brand-new experience in approaching and experimenting products and services, which increases the chance to buy products and services (R.D Kenneth, 2016)

Elham Baratali in his research on effective AR in marketing (2016) identified that simply AR marketing is the combination of traditional print media with digital elements or innovative elements such as sound, 3D images, graphics, electronic versions to create a new world with users, so that they have a deeper experience with the products and brands of the business (Elham Baratali, 2016) Similarly with Elham Baratali, O Mauroner, L Le and S Best also totally agreed that augmented reality technology is at the forefront of the trend of interactive media marketing (O Mauroner, 2016) Augmented reality has digital components that make it possible

for users to interact in a real environment It allows customers to experience the product with just

a smartphone, tablet, For example, AR-enabled applications allow users to scan images on pages, websites, screens or packages with smartphone and an interactive 3D model, the link will pop up and hover over the print media (O Mauroner, 2016) Both studies by Elham Baratali (2016) and O Mauroner (2016) identified outstanding benefits of AR application in marketing

on branding communication for businesses This can be demonstrated by the fact that AR

technology in advertising not only brings new impressions and experiences to users, but it also brings positive advantages with marketing and business development (Elham Baratali, 2016; O Mauroner, 2016)

The implementation of AR technology is considered to help businesses increase their product presence and image in the market (Camila Moreira, 2017) When businesses give their customers

a personal experience so that customers have chance to be immerse themselves in experimenting process and then very impressed, they will remember their experience with businesses and come back many times to try out all the products and services, which results in increasing customer brand loyalty gradually (Camila Moreira, 2017)

Besides, thanks to AR technology, marketers now can improve documentation and marketing strategy to increase better interaction with potential customers (N.W Syarifah, 2016) With augmented reality communication marketers can learn, tune and improve based on the

meaningful interactions customers who are experiencing with their current campaigns By using the feedback or inputs marketers receive while customers interact with the media, marketers can learn a lot about them and what is happening and drive their purchasing decisions as they

continue to interact This valuable information will help marketers create effective marketing materials (N.W Syarifah, 2016)

Characteristics of Millennials

The Millennials is the term used to refer to those born between 1980 and 2000 (Travis J Smith, 2015) Unlike Baby Boomer born in the period 1950-1969 with many political vibrations, or people born in the period 1970 - 1985 (generation X) when the world did not have many

breakthroughs in economy, information technology, generation Y was the generation born in the period when the whole world transformed with the advances of science, telecommunications and multifaceted cooperation (Travis J Smith, 2015) The more important factor is that generation Y

now considered as the main workforce, the main customer, who determines the survival and development of the current global economy (Katherine, 2011) According to the report by ITUC (2015), In the United States only, about 1 million people of Generation Y add to the workforce each year It is estimated that Generation Y will account for 36% of the US workforce by 2025

In France, there are currently 16 million people in Generation Y, accounting for 40% of the workforce In Vietnam, it is estimated that in the next 3 years, Generation Y will be the largest component, accounting for more than 43% of the labor force (ITUC, 2015)

Having access to technology from an early age, it can be said that Generation Y is the generation that gets more benefits from the development of information technology than previous

generations (Luís Simões, 2008) They develop themselves in an open world where millions and billions of people around the world are connected There are many channels to expand and learn knowledge, to exchange and connect; for Generation Y, the term "Flat World" is no longer a vague concept, because they are truly global citizens who benefit and directly promote

cooperation and globalization (Travis J Smith, 2015)

Generation Y are the adults at the intersection of old and new, therefore, on the one hand, they are open, inclusive, respectful of personal freedom and the penetration of global culture; but on the other hand, they are also people who grow up and are influenced by traditional culture and thinking (Luís Simões, 2008) Therefore, it can be seen that, although Generation Y promotes freedom and personal enjoyment; with the trend of backpacking all over the world; but at the same time, they still value the family reunion time, the happy moments, knowing the true values that we need to preserve, and understanding the stopping points Similarly, even though they grew up in an era of information technology development and the spread of social media

channels; The Y generation still retains its own oasis of soul, life and real relationships, of traditional cultural activities instead of focusing on virtual games and sites; because they have also experienced the period of the Internet not yet penetrating into life, and they understand the joy and emotions brought about by traditional culture

Born in the development of high technology, it is not surprising to understand when millennials spend most of their money buying products and services online According to statistics for the consumer market in the USA, up to 40% of men and 33% of women in the millennials tend to shop for things on the Internet The report also points out that millennials spend more than an