4 1.3 Overview of carbonated soft drink product lines and the new zero-calorie Pepsi product line .... Furthermore, we want to understand more about the Pepsi brand, consumer psychology
BRIEF OVERVIEW OF PEPSI BRAND
Introduction about PepsiCo and Suntory PepsiCo Vietnam Beverage
PepsiCo is a worldwide fast-moving food and beverage (FMCG) corporation with operations in over 200 countries, with the most prominent product being carbonated soft drinks, which were invented by a pharmacist named Celeb Bradham near North Carolina The company, originally known as "Pepsi-Cola," was founded in 1898 and is headquartered in Buy City, New York Suntory PepsiCo Vietnam (SPVB) was founded in April 2013 with 100% foreign investment It is a joint venture between Suntory Group (Japan) and PepsiCo (USA).
After many years of being officially present in Vietnam, the company has established a leading position in the beverage market, and they are always proud to be a part of the lives of all customers, as well as being influenced in various ways, particularly among young people Suntory PepsiCo Vietnam aspires to not only earn large sums of money for businesses each year, but also to provide consumers with high-quality beverage goods and to become an environmentally conscious brand These are also aspects that have contributed to PepsiCo's worldwide success, giving long-term benefits to society and shareholders; it is because of these long-term development goals that PepsiCo has become one of Vietnam's most prestigious brands in recent years Below is the contact information and logo of Suntory PepsiCo Vietnam:
• The head office is located on the 5th floor of Sheraton Hotel (88 Dong Khoi Street, District 1, Ho Chi Minh City, Vietnam)
Picture 2 The logo of Pepsi over years
History of formation and development
1.2.1 History and development process of PepsiCo
A pharmacist named Bradham, born in 1867 in Chinquapin, Dublin County, North Carolina created an easy-to-digest drink called "Brad Drink" in 1886 using sugar, vanilla, carbonate water, and cola nuts He began testing and selling this water in his neighborhood Bradham was about to grow his firm in 1898, so he renamed the drink
"Pepsi-Cola" and gave it the logo title
Bradham officially registered a trademark with the United States Patent Office and founded the Pepsi corporation in 1902, with its headquarters in Purchase, New York state, USA Advertisements for Pepsi-Cola began to appear in New Bern's weekly magazine From there, Pepsi-Cola grew in popularity, the company expanded, and Bradham began purchasing buildings to convert into factories for the beverage
During World War I, the Pepsi-Cola Company declared bankruptcy and was purchased for $30,000 by Craven Holding Corporation of North Carolina Roy C Megargel later purchased the Pepsi brand from Craven Holding Corporation for $35,000 and renamed it Pepsi-Cola Corporation Pepsi-Cola Corporation declared bankruptcy for the second time in 1931, after years of losses Chairman of Loft Industries Charles Guth purchased Pepsi-Cola and began selling it in his stores The following are a few historical milestones associated with this brand that we can recall:
• 1934: Pepsi-Cola skyrocketed sales in the US market
• 1935: Pepsi-Cola moves its headquarters to Long Island City, New York
• 1941: Expanding to the whole of Europe
• 1947: Penetrating to the Philippines and the Middle East
• 1948: Headquarters moved to downtown Manhattan
• 1965: Frito-Lay Corporation was acquired by Pepsi-Cola
• 1988: Pepsico acquired Tropicana and celebrated its 100th anniversary and changed to a new logo with a sphere with 3 colors blue, white, red on a cold blue background this is also the worldwide Pepsi logo 3
PepsiCo is presently the world's largest and fastest-growing food and beverage corporation, with over 200 locations worldwide and annual sales of around $60 billion
1.2.2 Suntory’s journey and the story that brought Pepsi to Vietnam
Suntory Holdings Limited and PepsiCo, Inc launched the strategic beverage alliance Suntory PepsiCo Vietnam in 2013 to deliver worldwide standard products to Vietnamese customers SPVB's value standard is to "sell only products that we are proud of " and it is because of this commitment that the company has grown to become one of Vietnam's largest beverage companies Here are some important dates to remember:
• 12/12/1991: Sp.Co and Marcondary - Singapore entered into a joint venture and established the International Beverage Company (IBC)
• 1992: Hoc Mon Factory was built
• 1994: Vietnam lifts embargo from the US PepsiCo immediately entered into a joint venture with the International Beverage Company (IBC) and officially entered the Vietnamese market with the first two products Pepsi and 7up
• 2003: International Beverage Company (IBC) completed the change of capital structure with 100% ownership owned by PepsiCo and was renamed PepsiCo Vietnam International Beverage Company At the same time, launching many other beverage products such as: Lipton Ice Tea, Twister, Sting, Aquafina
• 2004: Expanding production and business model in Quang Nam by purchasing and merging Dien Ban factory
• 2005: Become the leading beverage company in Vietnam
• 2006: Snack Poca - the first Food product launched by PepsiCo Vietnam and loved by many consumers
• 2007: Soy milk product was launched
• 2010: PepsiCo continues to invest for the next three years in Vietnam with 250 million USD and operates the factory in Can Tho Has been considered an important milestone for PepsiCo in the Vietnam market
• 2012: PepsiCo continued to buy a factory in Dong Nai and PepsiCo became the company with the largest factory in Southeast Asia located in Bac Ninh
• 2013: Suntory Holdings Limited and PepsiCo, Inc cooperated to establish Suntory PepsiCo Vietnam and launched new products, Olong Tea+ Plus and Mountain Dew.
Overview of carbonated soft drink product lines and the new zero-calorie Pepsi
PepsiCo is a multinational corporation that controls the majority of the beverage market in Vietnam Carbonated beverages are one of the segments that the corporation, as well as young consumers, pay close attention to Pepsi-Cola, a long-standing but very modern and outstanding carbonated product line with a combination of brands and well- known music groups, is the fastest-selling product line on the market 7Up Revive, a mineral-replenishing beverage when exhausted, is followed by 7Up, a carbonated beverage with a natural lemon flavor that provides you a cool and pleasant feeling Mirinda, a strong carbonated drink that provides the drinker an explosive feeling, comes in third place, followed by Mountain Dew, a carbonated beverage with a strong citrus flavor that offers the drinker a feeling of refreshment and exhilaration.Almost all of Pepsi's carbonated water products have their own distinct characteristics, which is one of the reasons Pepsi has a bigger market share in our country than rival Coca-Cola
The most well-known product line in the carbonated beverage market is Pepsi Cola This company has recently launched a zero-calorie Pepsi product line, which is unlike anything else on the market at the time They recently invented a new flavor for it, Pepsi Zero Calorie Lemon Overall, this is a highly distinctive product, from the box design to the taste within With a combination of cool lemon taste and refreshing gas, the zero-calorie lemon-flavored Pepsi is put on a striking and personal matte black shirt, the color changes from traditional blue to black, and this product also contains no calories, making it very suitable for people who care about their health This product line was created since today's customers are increasingly concerned about their personal health and try to avoid using dangerous items Pepsi has investigated and developed a sweet beverage product including aspartame and sucralose, two highly low-calorie sweeteners that allow you to effortlessly control the quantity of sugar and calories absorbed into your body Pepsi thinks that by introducing this product line, it will be able to meet the needs of customers and dispel the myth that drinking soft drinks increases the risk of cardiovascular disease and osteoporosis due to the presence of phosphoric acid and high levels of phosphate.
AN EXAMINATION OF THE ELEMENTS INFLUENCING
An overview of the Vietnamese soft drink market
In recent years, the beverage sector in Vietnam has been on a strong trend, with many enterprises owning a variety of soft drinks ranging from mineral water to teas and, in particular, soft drinks Vietnam ranked 24th in the world in terms of US beverage consumption in 2020, with revenue of more than $5 billion USD, a 1.7% decrease from
2019 The beverage industry in Vietnam currently has a The drive gauges the country's development speed, favorable demographics, and the rapid development of the foodservice industry considerably enhance customer demand Furthermore, Vietnam has a young population, with the age 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 market share in Vietnam This industrial expansion is now being led by two multinational competitors, Coca-Cola and PepsiCo, which dominate the market with a 64 percent market share, followed by two domestic competitors, Tan Hiep Phat and Trung Nguyen Original There are over 2000 indigenous and foreign beverage production plants in Vietnam The rise of this industry is particularly visible from 2015 to the current year, with an annual growth rate of 6% The graph below depicts the sales of major beverage brands in Vietnam from 2016 to 2019 We can see from the graph that:
Picture 3 Revenue of key beverage brands in Vietnam from 2016 to 2019
Source: https://venusa.us/ The Suntory PepsiCo joint venture earned more than VND 18,300 billion in 2019, an increase of more than 14 percent over 2018 PepsiCo outperformed with a market share that was more than double that of Coca-Cola and Tan Hiep Phat In April 2013, PepsiCo and Suntory formed a joint venture, which helped this company's product line outperform Pepsi has had to constantly adapt and update new product lines in step with customer trends, as well as have vital marketing tactics, to be successful as today is a long process Suntory PepsiCo, a joint venture between PepsiCo of the United States and Suntory Holdings Ltd of Japan, led the market with revenue of VND 18.3 trillion ($793 million), up 14 percent year on year, followed by Coca-Cola with 9.3 trillion VND.
The future growth rate of Vietnam's beverage market is highly regarded Companies will struggle to cope with increased competition if they do not find ways to innovate and diversify their products in the future This is the time when communication methods will blossom in order to entice customers to use their products As a result, understanding the market's shortcomings and strengths is critical for developing an effective campaign for your company The year-end market of Vietnam's beverage sector has never stopped being hot; this is both an opportunity and a difficulty for those who wish to enter this industry.
Pepsi's primary customer segments
Since entering the Vietnamese market - a country with more than half of the population being young people, Pepsi-Cola has determined its mission lies in this class
- the age that is always devoted to passion; they love sports and are especially proud of the national football team In addition, they also like to discover new things, like to experience themselves and this is a favorable condition for Pepsi-Cola to approach and develop in Vietnam
When choosing a vibrant customer base, Pepsi has favored its products with the qualities (from flavors to marketing methods) necessary to create an impressive moment that goes deep into the hearts of customers With a rich sweetness and a large amount of gas, Pepsi-Cola gives consumers a new feeling - a strong taste that is felt to the tip of the nose like burning enthusiasm, bringing refreshing and new sensations And it is this that has met the psychological preference of most teenagers Besides, young people often have the habit of sipping food and enjoying drinks at the same time so that they don't feel bored when enjoying food, and this is a feature that Pepsi-Cola focuses on exploiting to create products that meet this need of young consumers
In the Vietnamese market, Pepsi has become a big player in the carbonated drink industry, but its attraction has always remained in the hearts of young consumers to this day In Vietnam, it can be said that the style feature that Pepsi is pursuing is to satisfy the passion of young people Therefore, the price of the products as well as the design or quality offered by Pepsi are aimed at the needs of young people
Currently, more than half of Vietnam's population is under the age of 30, which is enough to prove that young people are an extremely potential market segment for businesses Pepsi seized this segment to launch the zero-calorie Pepsi and was extremely successful when it was accepted by young people.
Key theory application, data analysis, and consumer "insights"
This is the most crucial section of this research In this part, we will use the theories we have studied, then conduct interviews with Pepsi consumers from which we may draw general conclusions for each content, and finally provide assessments and detailed ideas for the PepsiCo corporation to enhance even further The basis of this research is that we can clearly grasp customer psychology, both internally and outside, in order to develop appropriate marketing tactics We will separate the evaluation and recommendations in chapter 3, this part just focuses solely on data analysis,
In terms of the interview form, we performed an online interview through Google Meet, however, in order to make the results more complete and relatively accurate, we also sent the survey form to the customer in parallel As a result, throughout the study, our results include both customer opinions and conclusions expressed in percentages.
2.3.1 Internal factors influence consumer behavior
In this part, we examine internal elements to understand how they influence consumer behavior This is a difficult aspect because it is all about the customer's psychology, thoughts, and attitudes However, by attentively following the theories provided, we have identified their inner world quite effectively The detailed analysis results are as follows:
In this first chapter, our group chose the process of adoption, Sensony Marketing through consumer senses as the main theoretical basis The process of receiving is one of three information processing steps - the set of activities generated by external stimuli that have been converted into information and stored into human memory or perception
By showing their interviewers the posters, the label's commercials, and asking them firsthand about their own experience of buying and using calorie Pepsi, we've been given a lot of answers that say:
1 How do you feel about the packaging design and the product line's signature black color?
2 How do you feel about the printed ads or billboards for this zero- calorie product line near the bus stop?
3 When you look at that poster/short advertisement, can you envision and hear any sound?
4 Have you ever purchased a drink to check it out? If so, how did you find the taste?
5 How do you feel when you touch a calorie- free Pepsi can, and how does it differ from the standard lines?
Strangely, the package was rough before it was smooth I believe it's fairly similar to simply adding the words
"no calories." I was drawn to the hue
A good phrase that captures the trend, such as
"Pepsi lemon flavor without calories, optimum refreshment, burst with Rap Việt"
The sound of the bottle cap popping and the smell of it
The lemon flavor is pretty distinctive
The dimensions have not been altered
Stunning, eye- catching Very pleasant, and visually stunning
In terms of color, I thought it rather impressive because, in general, it was the first time I saw a beverage product in such a dark shade of black
The advertisement is highly appealing and full of significance
Summer music, the holiday season
The smell isn't too bad, and it's easy to drink.
Textured designs are more comfortable to hold than smooth designs
The hue of the lemon calorie-free
Pepsi is black with a hint of lemon green, which impresses me and makes it easy to recall
Images that are vivid and have catchy slogans
In the summer, enjoy the coolness
This product line has a very nice lemon flavor, so when I drink it, I feel interested, and even if
I drink a lot, I don't get bored.
In the same way that any other soft drink product
In terms of packaging, I believe it maintains the prior items' brand character
The colors on the poster are stunning
Pretty bright and lovely, highly appealing to the eye
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 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 has a lemon flavor Pepsi and its collaboration with Blackpink will have a pink tint to provide a distinctive highlight, whilst other brands will not
It's very cool in my opinion
What could be more delightful than the sound of cool ice coupled with sweltering summer?
I got it to give it a try; it's not too sweet
All clients will find it very convenient
I see the Pepsi logo without calories, it is similar to the logo of other Pepsi products but the problem is the color of that Pepsi can, it enhances the Pepsi logo
In my own opinion, it's as normal as any other social class
In terms of taste, I prefer it over ordinary Pepsi.
The same as prior goods
Its logo is similar to the logo of other Pepsi products, but the problem is that the color of that Pepsi
Not too prominent for myself
Right size, neat can enhance the
Concerning the logo of the zero- calorie Pepsi product, I notice that it is spherical in shape and has three colors that appear quite current and elegant In terms of color, matte black makes me feel more opulent.
It seems normal to me
The taste of zero-calorie Pepsi is sweeter than that of other products
It's most likely dropped thicker than other products
Concerning the logo, I believe it remains the same; the color is black, the style is cool and bold
Make the city come alive
When it's hot outside, nothing beats a cold can of Pepsi.
The taste of zero-calorie Pepsi is sweeter than that of other products
** 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
● 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:
● The lemon flavor is quite unique
● The taste is not too unpleasant and quite easy to drink
** 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.
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
6 Usually, which position will attract you more about Pepsi products?
7 Do you feel the space to buy Pepsi products attracts you when you just walk into that area?
Thanh Thanh Just at eye level I think it's normal nothing special, Nguyễn Mai
For me, convenience stores are easier
Yes, because it is located in the center, it is quite attractive
For me, face-to-face is probably more accessible no matter what product it is
I think yes because I am also a fan of Pepsi products
Lê T°ờng Vy Looking down from above If the call is attractive, the Pepsi brand will attract me to buy more TrÃn Lê
Thịnh In my opinion, it's from left to right
I think the display and shopping space are not very impressive to me
Lê Liên Long Maybe when I face it
I mean maybe yes, because the large space will create a comfortable feeling when shopping
Long Central of area Small space, not right in the center
Tall places like buildings I think their product display space is
TrÃn Khã Nhi I think it's in a supermarket or a place with a lot of people
I mean no, because I just go in and buy my favorite products and don't care about the shopping space
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.
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
1 How do you feel after watching this ad campaign?
2 Do you often get annoyed when you see the same ad too many times?
3 Do you think every problem after drinking Pepsi has a solution like in this ad?
Good, Interesting because there are many rappers participating
Mai Linh Humanistic message uncomfortable No
Vy Interesting Yes Depence on each situation
Thịnh Not only good but also full of meaning Yes Not really, this is just a gimmick
It is a harmonious combination that is both new and novel but still retains the traditional culture of the Vietnamese people
Feeling homesick with my family No Might be
For me, I love my family more Yes not as advertised
Vietnamese people Not very annoying In my opinion yes
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
EVALUATE THE ANALYSIS RESULTS AND PROPOSE SOME NEW
A general evaluation of Pepsi's existing products and strategy
The first is a perception factor During the interview process, my team discovered that customers loved the design of Pepsi's calorie-free packaging, the taste of this lemon-flavored Pepsi, the placements in the purchase area, and other items Products placed at eye level are more likely to attract clients, which benefits their senses and consuming habits However, zero-calorie Pepsi products are normally the same size as regular Pepsi, and since this zero-calorie version has only recently launched in lemon flavor, we believe Pepsi should reconsider changing the size to meet consumers' needs In addition, Pepsi should have more new tastes, such as peach, blueberry, or apple flavors because fruit flavors are also fairly easy to drink.
The second aspect is learning and memory; we believe that, while frequent advertising can make customers feel uneasy, yet Pepsi's ads offer meaningful messages and touch their emotions, so the discomfort is minimal, and instead, it helps people remember the Pepsi brand more Based on the results, we would like to suggest to Pepsi to shorten the duration of the advertisements or, instead of creating new advertising campaigns, Pepsi can cleverly combine with movie projects or music MVs to insert products into that content, making advertising more interesting For example, TiKi has appeared frequently in music products such as