Overview Trang 6 Recognizing the opposite sides of energy drinks, we conclude that we wouldlike to encourage the development of a kind of beverage that is healthier and lessaddictive li
Introduction
Overview
Energy drinks have become one of the most well-known beverages worldwide due to their ability to boost energy Energy drink is a type of drink that has stimulant components, usually caffeine, a lot of sugar, and Vitamin B They are significantly consumed daily by athletes and students who want to maintain their awareness and also by persons in most big countries like The United States, Japan,Spain, The United Kingdom, German, and other nations in Asia as well According toEnergy Drink Statistics, billions of energy drink cans are sold yearly, in specific,globally as of 2021, around 9.8 billion Red Bull cans were sold The worldwide sale value compared to the last 10 years as well as forecast up to 2027 is $159.1 billion.The per capita consumption rate in the United States of America is 3.33 liters and around 11.6% of schools in the United States of America put Energy drinks for sale in school stores, snack bars as well as at vending machines In contrast with these remarkable statistics, we should bear in mind that energy drinks are not popular for their healthiness, the regular beverages on the other hand have many disadvantages that bring to the consumers’ health According to experts, it is recommended and acceptable for a healthy adult body to absorb 400mg of caffeine a day, however,regular and overdose consumption of energy drinks would damage the body as a whole.
From this, we may be concerned about what makes energy drinks so addictive Firstly it has a sweetened taste Considering Monster - the second most consumed energy drink worldwide according to Statista, as an example, there are 55 grams of sugar in a 500ml Monster can - the same amount of 13.8 teaspoons, more than the quantity of sweetness that a person could obtain within a whole day.Furthermore, the rush of sugar comes inside our body and the brain identifies it as one type of drug, which makes people can't stand living without it In fact, one report concluded that sugar can be more rewarding and attractive than caffeine Secondly, the caffeine component Sugar is not the sole luring ingredient of energy drinks In a500ml Monster can, there is also 160mg of caffeine - four times as much as a shot of espresso The more people attach to caffeine, the more people depend on them to gain energy, attentiveness as well as alertness And as long as people drink 2-3 cans ofMonster a day, they would exceed the limited amount of caffeine that can be absorbed daily These points support the idea of why beverages are so attractive to people once they drink them but so harmful in the long-term.
Recognizing the opposite sides of energy drinks, we conclude that we would like to encourage the development of a kind of beverage that is healthier and less addictive like Coca-Cola Zero, Sá Xị Zero, Mirinda Zero, etc, admitting that it is not a new line of product to the beverage industry And through the process of researching the business, we notice that the Warrior energy drink of TCP Group still doesn't have the following product line As a result, we would like to introduce a new product that we call “Warrior Zero" with the aim of better health and less addiction among consumers.
- Analysis of factors that affect the development environment of Warrior Zero.
- Researching customers to determine the necessity of the product.
- In-depth information (segmentation, targeting, positioning) about the product.
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TCP Corporation introduction
On March 27, 1956, T.C Pharmaceutical Ltd was founded by Chaleo Yoovidhya, in Rambuttri Alley on Khaosan Road, Thailand The company started its early days with the invention of pharmaceutical formulations which were guaranteed by a reputed German manufacturer.
In the period from 1968 to 1977, the manufacturing departments of TC Pharmaceutical Ltd were relocated from Sake Alley to the outskirts of Bangkok The company also expanded its product range from pharmaceutical to consumer goods, and debuted with a cosmetic brand called “Tattoo” Mr Chaleo then saw the potential of developing beverages, especially energy drinks, the company finally came up with the introduction of Theoplex-D Syrup 1000cc, its trademark with two red bulls colliding was so recognizable that the brand earned the nickname “Red Bull".
In 1978, “Red Bull" drink was then produced.
On August 28, 1978, a manufacturing and export company of the Red Bull brand: T.C Pharmaceutical Industries Co., Ltd was founded, with Singapore as its first export market
In 1987, the company had chances to expand globally, particularly in Asia and Europe In the same year, the company also introduced its adapted products into Austria under the brand name Red Bull Moreover, the firm also succeeded in engaging in many sports events as a sponsor for teams and events themselves.
In 1988, Red Bull Beverage Co., Ltd was established with the goal of focusing on brand building, marketing, and sales activities The company gains TCP corporation a lot of in-depth understanding of the Thai market and is the spearhead in
Nguyên lýMarketing 100% (34)36 attempting a variety of management strategies Red Bull coffee and Red Bull tea were introduced in order to accommodate the needs of customers n
In 1996, T.G Vending and Showcase Industries Co., Ltd was founded to develop better distribution channels and maximize reach to consumers The company brought state-of-art vending technology from Japan to Thailand and installed them in key industrial areas as strategic priorities.
In 1998, relocated the manufacturing plant from the outskirts of Bangkok to a vast 790 acres space in Bansang District, Prachinburi province.
In 2002, Durbell Co., Ltd was founded as a full-scale distributor.
In 2018, the first overseas office in Ho Chi Minh City, Vietnam was opened, followed by offices in Myanmar and China.
“Our legacy in energy drinks and our desire to create a positive impact in this world for everyone, whoever, wherever they are inspire us everyday After all, in the world we live now, people do need energy for both body and mind as well as refreshment to pursue their life goals and to create bigger impacts to society and planet.”
The company engages in 3 key strategies:
- Fulfilling: meeting the consumers' needs with high-quality products and services.
- Growing: bringing value for the brand and providing value for the partners through an efficient supply chain.
- Caring: caring for society and the environment throughout a sustainable policy in every work process.
In 2017, following the success of the Red Bull energy drink, TCP Group established the Warrior energy drink, focusing on young and dynamic users With the image of a warrior wearing a helmet and holding 2 swords in both hands, Warrior has put an impressive step in the market with specific positive messages which encourages people to always be ready, energetic, and face challenges There are now two flavors of Warrior: strawberry and grape, both of which are preferred by consumers ranging from workers, students, drivers, or office workers.
Marketing environment
Microenvironment
In Vietnam, TCPVN always accompanies the government to contribute to the economic development of the country and focus on responsibility to the social community Facing challenges and fluctuations from the fourth wave of the Covid-19 epidemic, businesses clearly understand their responsibility to support workers and the community, and join hands to fight the epidemic.
The unit participated in supporting medical facilities and equipment for Covid-19 treatment hospital in Phu Tan district, An Giang province In August 2021, the unit contributed more than 2 billion VND including cash and medical products, serving research, production and strengthening medical supplies and equipment In which, a cost of 1 billion VND - almost equivalent to an oxygen-generating container donated to the Central Vietnam Association of Young Physicians - under the Ministry of Health and an ambulance worth 810 million VND was sent to District 11 Hospital, HCMC The donation has contributed to solving urgent problems at a time when the anti-epidemic work is still lacking.
Previously, when the Covid-19 epidemic broke out and directly affected the two provinces of Bac Giang and Bac Ninh, Warrior brand, under TCPVN, sponsored
200 million dong in cash and 600 boxes of products to share difficulties with people in these two provinces In 2020, TCPVN contributed more than 5 billion VND, including
3 billion VND in cash and 8,683 boxes of products to Covid-19 prevention and control programs of agencies and organizations from central to local levels.
Emphasizing the responsibility of enterprises for the community in difficult and urgent situations, Mr Nguyen Thanh Huan, General Director of TCP Vietnam said: “The interests of the community are always something that TCPVN cares about in the process of operating our business in Vietnam We always strive to fulfill the mission for the community through practical and timely actions to the country and consumers.
It is hoped that the efforts of TCPVN, together with other businesses, will contribute to sharing difficulties, and energizing positively with the Government and people of Vietnam firmly in victory against the pandemic."
Warrior energy drink is a product for young people of Gen Z - those born from 1996 onwards This is the generation born in the digital age; hence they have had the opportunity to expose technology from a young age According to research on the behavior and interests of these young people, Warrior found that Online Game is one of the favorite hobbies of young people and has a high amount of interaction and discussion on social networks Therefore, Warrior decided to use Game / Esport as the main platform to reach and connect with young people with the youthful message
"Warrior! Bừng tỉnh chơi mới tỉnh!”.
Together with Warrior, ClickMedia - a digital creative implementation agency
- with a thorough understanding of Gen Z, has brought an approach that satisfies Gen Z's habits and preferences for content on social networks in general and Esport in detail, bringing this brand into the ranking of 10 Esport discussion sources.
In the process of reaching Gen Z, Warrior and the agency team have developed a youthful and dynamic information direction, catching up with ongoing trends on social networks and applying them to convey information to young people in Vietnam. Simple, close, humorous words along with many forms of transmission through images and videos have created a strong effect along with a huge number of discussions.
Fast delivery system, goods will reach their destination within 48 hours: able to access nationwide network of more than 140,000 retailers through Durbell’s distribution channels.
Providing convenient food and drink gradually becomes an attractive industry because it is easy to invest and brings profit Therefore, in addition to big companies like Coca-Cola or PepsiCo, TCPVN also has to contend with different large and small beverage companies that are increasingly penetrating the market to meet the different needs and desires of consumers of all ages This has created great opportunities and challenges for TCPVN in general and Warrior brand in detail.
● The current competitors are strong and have ability to compete with TCPVN market.
● More and more substitute products appear, these products are even more diverse in forms and types.
● TCPVN has to share markets with competitors, making it more difficult to reach customers.
● Although there are many substitute products and they are also diverse in types, they face difficulties accessing the market, capital, advertising costs and customer loyalty.
Along with the development of the economy, people's lives are improved, customers are more interested in not only the need to "eat well and dress well" but also the quality of the products to ensure their own health With the growth of convenience foods and beverage market, the products are increasingly diversified in terms of volume and quality This makes it easier for customers to compare products between brands to choose for themselves the best and most suitable one The distinctive style of Warrior impressed and created the energy, aimed at young customers.
● TCP aimed at young people as main customers while other beverage companies aim to meet the needs of consumers at all ages.
● The ability to break through and create different products, TCP always has new initiatives to create new products that meet the needs of customers.
● Customers are young people accounting for a high percentage of the population.
Macroenvironment
Generation Z is young people born after 2000 (although many analysts include people born after 1995) who make the kids, tweens, and teens markets.According to Nielsen, there are approximately 2 billion Gen Zers in the world and about 15 million Gen Zers in Vietnam Therefore, choosing young people in Vietnam as the target market is one of the right choices of TCP Group because Vietnam is a large and potential market As a generation that is 'more demanding for a product or service', Gen Zers are also 'open to new experiences' - 'with 40% of Gen Zers in the study always willing to try enjoyable experiences even when they have already used familiar brands' as reported by Nielsen As 'digital citizens', Gen Zers easily discover information in life or scientific knowledge than previous generations More and more people are concerned about their health, which also affects Gen Zers’ choice of drinks. Therefore, they not only favor traditional flavors but also require innovation for better health For example, they also drink energy drinks as usual, but cutting sugar to follow a healthy lifestyle.
As one of the leading beverage corporations in Thailand, TCP has always focused on sustainable and harmonious development, making a positive contribution to the environment, especially in the countries in which the group is operating business activities, including Vietnam Specifically, in the period of 2022 - 2024, TCP aims to carbon neutral in all operations before 2050, produce 100% recycled packaging, increase production efficiency, reduce using water, and provide more water for the environment and community With energy drink staples such as Red Bull and Warrior, TCP Group recognizes the importance of collecting, recycling, and remanufacturing bottled products Therefore, TCP is determined to set a goal for designing and manufacturing recyclable packaging with an absolute target of 100%. From production, the company's R&D team constantly researches and improves product packaging to ensure cans and bottles are recyclable.
The whole world is still in the technological revolution, new technologies are born and integrated into products and services The birth of these new technologies will create revolutions in products and technological transfer Therefore, technology becomes a key factor determining the success or failure of the company TCPVN is always looking for ways to provide services and information with high quality and efficiency, global technology developments bring possibilities and solutions toTCPVN's growth, help them find methods which can reduce the cost of bringing products to customers and improve service at the same time is one of the company's top goals.
"Tên gì mà tiếng Anh dài, nghe lạ và khó đọc quá nè!" – is a very close and familiar insight that few people pay attention to; however, Warrior has drawn. Therefore, Warrior has built a campaign to "localize" its products, from Warrior to
"Qua ri ơ" with the desire to "teach" customers how to properly read the brand name in a fun and natural way In addition, in this campaign, Warrior mainly focuses on the communication between the salesperson and the target customers, "fixing" the pronunciation not only for the target groups but also for the sellers at the canteens at schools, internet shops and grocery stores – which are the brand's main retail channels.The brand localization campaign with Warrior's "Vũ điệu tăng lực - Qua Ri Ơ" thoroughly solved the problem the brand was facing – customers and sellers at retail channels misread the brand name too much, making it is difficult to improve brand awareness; at the same time, this campaign has brought the name "Qua ri ơ" into the mind of target customers in a charming and humorous way, reinforcing the brand's position on the map of Vietnam energy drinks.
Customer research
Consumer market size
In 2020, Vietnam ranked 24th in the world in terms of US beverage consumption with revenue of more than 5 billion USD, down 1.7% compared to 2019 due to the global impact of the Covid-19 pandemic Looking at the above figures, the beverage industry is a billion-dollar business Currently, Vietnam has 3 main types of beverage products: carbonated and non-carbonated mineral water; pure water; soft drinks, energy drinks, instant teas and fruit juices of all kinds.
According to the forecast of Fitch Solution - a company providing information on financial risks and strategic decisions of the US, in 2022, Vietnamese people's spending on non-alcoholic drinks is 40.7 billion USD, up 8.1% compared to
2019 and it is expected to increase by 10.3% to 44.8 billion USD in 2023 and will gradually recover and grow over 10% annually and will reach 60 billion USD in 2026. The Vietnamese beverage market has grown again after the Covid-19 pandemic The forecast for beverage sales growth in the period 2022-2024 ranges from 4.3% to 4.8% when the economy returns to normal The prospect of Vietnam's beverage market is considered to be rich in potential in many small segments. Vietnam's non-alcoholic beverage market is showing great attraction to investors, due to the fact that the domestic growth rate has always remained at 6-7% in a year. According to a recent study by Kantar website, more than 34% of people in
Ho Chi Minh City use energy drinks in a week, accounting for a relatively large proportion of beverage research and development activities Vietnam's energy drink market has witnessed the presence of domestic giants in addition to popular foreign brands At the end of 2018, Thailand's leading F&B Group TCP Group poured 4 billion baht into developing the beverage segment in the Vietnamese market This group owns a series of famous energy drink brands such as Warrior, Red Bull, etc.
Consumers’ demand
The service industry of non-alcoholic beverages, especially drinks with ice to drink in hot weather helps satisfy users on hot summer days Vietnam has a large young population, the age group from 15 to 50 years old accounts for 63% of the demand for soft drinks Besides, the climate in Vietnam is hot and humid, so the economy of the beverage market increases rapidly The diverse food culture has also pushed the demand for beverage production to skyrocket According to a report by the
Worldpanel Division in 2019, Vietnamese consumers have 7 main needs when using drinking water In which the need for refreshment is still the most basic and accounts for 25% of the total number of drinking occasions Besides, they also drink for other needs such as:
According of VietNam Beer, Alcohol and Beverage Association, 85% of the annual production and consumption of the Vietnamese beverage market is in soft drinks, energy drinks, fruit juices, and the remaining 15% is mineral water And according to data from vtown.vn, energy drinks account for 18.24% of the beverage market in Vietnam.
According to beverage market research, the rapid growth of energy drinks is due to the global population explosion and per capita income level At the same time, the impact of the pandemic in the past 2 years has prompted consumers to pay more attention to their health above all else Therefore, the products of this industry are always in the sights, with the aim of providing immediate energy as well as psychological relief, and physical enhancement.
In addition, the habit of maintaining sports activities is also the reason to promote the consumption of energy drinks Adults, especially athletes, are the main consumer of energy drinks According to Research and Markets statistics, in 2020, the mature customer segment accounts for 56.39% of the global energy drink market.
Consumer trends
3.1 Increasing obesity is driving the market
Obesity is one of the most serious global public health challenges of the 21st century affecting every country in the world Obesity in adulthood is a major risk factor for poor health and early death including various cardiovascular diseases, some common cancers, diabetes and osteoarthritis Rates of obesity and overweight continue to increase in children and adults For example, according to a survey conducted by Ispos in 2020, 19% of adults around the world consider it their biggest problem As a result, people are gradually changing to a healthy low-carb diet such as high-quality protein powders such as bone broth, collagen, whey protein, lentils, beans and other legumes Some of the benefits of reducing sugar include it helps with weight loss and prevents obesity, it reduces the risk of having diabetes Low-carb beverages are designed to provide sustained energy and help speed up metabolism Therefore, this factor is driving the growth of the market.
According to the latest statistics from Nielsen, a global business performance measurement company Health continued to be at the forefront of Vietnamese consumer concerns for three consecutive quarters After becoming the top concern with a record rate in the 10-year history of the survey in the third quarter of 2019,Vietnamese consumers' health concerns remain the highest globally with 45% of respondents Therefore, Vietnamese consumers tend to use products that are less harmful to health The calorie content of Warrior Zero is 0%, which has hit the consumer's mind when it can both satisfy the consumer's interest in health, calories and sugar intake, reduce sugar consumption in specific while still being able to keep the sweetness of the original Warrior for customers who love this carbonated drink.
Consumer behavior
According to a survey by VietinbankSC, in Vietnam, non-alcoholic beverages are mainly served by the age group from 15 to 35 years old This is because this is the age group that participates the most in fast food activities such as KFC, Lotteria, Popeyes, or other restaurants This is also the age when there is not much awareness about the effects of sugar and carbonated drinks on health Moreover, these age groups participate in physical exercise and sports activities, causing the body to have a very high demand for soft drinks and energy drinks.
Male and female genders tend to use soft drinks equally However, the type of beverage they use is somewhat different Carbonated drinks such as Coca or Pepsi and green tea are consumed by both sexes Besides, the male gender has a preference to drink energy drinks, while the female gender tends to consume fruit juices, packaged fruits and other nutritional drinks.
(Source: Vinasearch survey on factors of using non-alcoholic beverage by gender)
Regarding soft drinks, consumers tend to use products of famous and prestigious brands This can be explained by the fact that in the consumer's point of view, well-known brands often have better quality, safety, and price than lesser-known brands.
Health education is on the rise, which means that consumers are very concerned about the ingredients of products Ingredients such as fat, sugar, and carbonate, are very noticeable because these are substances that are easy to affect consumers.
Price is a criterion of little interest because it is a commodity that accounts for a small proportion of total consumption costs and total income Therefore, even with a slight increase in product prices, consumer choice does not have a large shift.Conversely, wide distribution and promotion are a huge competitive advantage,because consumers easily recognize the product and are more likely to buy the product.
4.6 Relationship with per capita income
Vietnam's population is expected to reach 100 million by 2023, with a working age population of 60%, and a median age of 30 This group is also the target market of the beverage industry A study conducted by KU Leuven University found that, as per capita income in developing countries increases, the people of that country will consume more soft drinks Meanwhile, according to the General Statistics Office, Vietnam's per capita income is about 4,000 USD a year Therefore, the demand for beverage consumption will remain high.
From the above reports, it is shown that Vietnamese people spend quite comfortably on eating and drinking, corresponding to the development trend of the food and non-alcoholic beverage market in general and especially soft drinks in particular Thereby, Vietnam will be a potential market for major beverage brands to compete and develop However, according to a forecast of the beverage market inVietnam, in the future, consumers will be more and more interested in issues related to sugar, calories, awareness of sugar consumption, and calories too much during the day Therefore, the development of Warrior Zero products is inevitable to meet the needs of consumers and this is also a necessary product to help Warrior develop sustainably in the beverage market in Vietnam in the future.
Survey
Our group conducted a survey among the young generation about the level of interest and awareness towards soft drinks in general and Warrior in particular The survey shows that young people care about the sugar content of soft drinks and tend to choose sugar-free or low-sugar drinks Therefore, sugar-free products like WarriorZero have the potential to thrive in the consumer market Moreover, based on the reviews of the respondents who drank Warrior, most of them think that Warrior's current drink is sweet; thus, Warrior Zero could improve the experience since it can reduce the satiate of regular soft drinks Finally, with high brand recognition, more than 80% of respondents know and have used Warrior, developing a new product line like Warrior Zero will easily reach target consumers if there is a reasonable marketing strategy.
Segmentation - Targeting - Positioning
Segmentation
Ages: Warrior enjoyed the market focusing on the dynamic and young customer, especially Gen Z And nowadays, 57% of residents in Vietnam want to lose weight, less sugar in soft drinks, though they also want to drink it That proves the potential of Warrior Zero in the Vietnam market.