group assignment analyzes the environment marketing and 4ps for the suntory pepsico company

In this project, we will give general information about Pepsi company and the marketing strategies implemented by Suntory Pepsico Company.. Marketing strategy about segmentation, targeti

GROUP ASSIGNMENTANALYZES THE ENVIRONMENT MARKETING AND

ACKNOWLEDGEMENT

Our team is very happy to send our gratitude to our teacher Mrs.Linh for giving us

an opportunity to work on and complete the project as well as for their enthusiastic

support The project has already helped us to deepen our understanding and learn more about environmental marketing and the marketing strategy of Suntory Pepsi company Marketing strategy and 4ps - a topic that has meaning and is useful for

us Thereby, we also get more acknowledgment as well as learning a lot of things after implementing the project

We also wish to extend our thanks to our parents - their motivation, and

encouragement for us wholeheartedly make us more confident to complement this project Finally, thanks as well to all my friends who have always been beside us and are willing to give a hand to us in every possible way

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I THE BACKGROUND OF PEPSI COMPANY

II THE MISSION AND VISION OF THE PEPSI COMPANY

III COMPANY OBJECTIVES AND GOALS

MARKETING ANALYSIS 05

1 Microenvironment ………

2 Macro Environment

II SWOT ANALYSIS 09

III CUSTOMER-DRIVEN MARKETING STRATEGY

1 Segmentation

2 Targeting

3 Positioning

4 Differentiation

IV 4Ps - MARKETING MIX

EXECUTIVE SUMMARY

This project is marketing research about the Pepsi company - one of the biggestfood and beverage corporations in the world In this project, we will give general information about Pepsi company and the marketing strategies implemented by Suntory Pepsico Company

It will start with an introduction to Pepsi company, including its background, development, mission, and goal Secondly, analyze the macroenvironment and microenvironment of Pepsi's marketing environment Thirdly, using a SWOT analysis to identify a company's strengths, weaknesses, opportunities, and threats Marketing strategy about segmentation, targeting, and positioning, which evaluate potential clients and competitors for Suntory Pepsico, make up the fourth section Furthermore, one of the most important sections in this project research is Marketing Mix Strategy for products which is also called the 4Ps This part indicates how to attain the mentioned objectives efficiently

Finally, the conclusion section for the whole project and the reference we will use while doing the research

INTRODUCTION

1 Background and development of PepsiCo

PepsiCo in VietNam - Suntory PepsiCo VietNam

PepsiCo in Vietnam - Suntory PepsiCo Vietnam

In 1994, PepsiCo officially entered the Vietnamese market and the first two business products here were Pepsi and 7 UP Many new products are continuously launched by the company such as Sting, Aquafina, Lipton Ice Tea, Twister, officially becoming one of the largest beverage companies in Vietnam in 2005

2 The mission and vision of PepsiCo

The mission “ Create more smiles with every sip and every bite”

Mission "Creating more smiles with every sip and every bite"

For our consumers: by creating moments of joy through delicious and nutritious products and our unique brand experience

For associates and the community: By creating meaningful opportunities to work, gain new skills and build successful careers

For the planet: By conserving nature's precious resources and cultivating a more sustainable planet for our children and grandchildren

The vision continuously challenge ourselves to become Faster, “ Stronger, and Better”

Faster: to grow faster by winning in the marketplace, being (even) more consumer-centric, and expanding our investments Stronger: become a stronger, more unified PepsiCo by transforming our capabilities and costs, and by using new technologies to our advantage Better: Doing even more for our planet and communities by integrating a sense of purpose into our business strategy

4 The positioning

As a brand, Pepsi has positioned itself as one that embodies young energy, and this can be seen throughout their marketing and advertising campaigns Pepsi’s customers are mainly aged between 13 and 35 years old from lower middle class to upper class with a busy and modern lifestyle Their prices reflect that, staying affordable for millennials from different classes They have even released smaller soft drinks options to make their products more appealing to those who need a quick drink to satiate their thirst and cravings

MARKETING ANALYSIS

I MARKETING ENVIRONMENT

1 The microenvironment

The followings examine some of the forces that would affect Pepsi's

ability on serving consumers

1.1 The company

PepsiCo is the world's leading food and beverage company with products loved by more than one percent of people in more than 200 countries and territories around the world every day PepsiCo's product portfolio includes a wide range of products and favorites with a total of 22 brands, generating $1 billion in annual retail sales

+ Pepsi-Lipton Company is a factory providing flavorings for tea

+ The company Cutrale in Florida USA and a branch in Brazil is the supplier

of incense and orange cloves to produce Twister

+ Hoang Anh Flavoring Company provides ingredients for the production of Sting energy drink

+ Bien Hoa Sugar Company, Bour Tay Ninh supplies domestic sugar materials

In Vietnam, going to cinemas or shopping malls, Suntory PepsiCo's products are widely and publicly sold, which is because the company has actively builtrelationships

Convenience store chains or fast food stores such as KFC, Lotteria, and someother brands are extremely fertile markets that the company has associated with

1.4 Customers

Consumer markets: individual, households, teens, young adults, and early

middle-aged adult consumers

Reseller markets: wholesale and other distributors, food service customers,

grocery stores, drug stores, convenience stores, discount/dollar stores, mass merchandisers, membership stores

International markets: more than 200 countries around the world

1.6 Publics The raging COVID-19 epidemic has caused a lot

of difficulties for both the people in general and the Vietnamese economy in particular This is the time when businesses need to show their responsibility to the community For that reason, the PepsiCo brand quickly cooperated with the Ho Chi Minh Communist Youth Union's Central Committee to launch the Tet campaign with the name "Mang Tết về nhà" to share difficulties with people and spread joy Happy New Year's Day to every Vietnamese family

➔Carry out responsibility to the community and improve the reputation

of the brand in the market

➔Build trust in customers

➔More than 50 artists, celebrities, and newspapers large and small sharedinformation about this event – creating a positive, methodical, and humane phenomenon of Bringing Tet Home

1.5 Competitors

Coca-Cola, Dr Pepper Snapple, Red Bull, Dabur Real Juice, and others are competitors of Pepsi The main rival to Pepsi-Cola is Coca-Cola 15% of the market was grabbed by Pepsi Advertising campaigns, marketing programs, product packaging, price, production practices, brand and trademark development, and protection are all essential to PepsiCo's success in the present competitive environment

Pepsi has to face several direct and indirect competition from others (see Appendix - Table 1) Thus, Pepsi should put more effort to gain back the share market

PepsiCo's direct competitors include The Coca-Cola Company (KO), Dr Pepper Snapple

Group, Inc (DPS), and Mondelez International, Inc (MDLZ) The fifth column is for the

Beverages - Soft Drinks industry overall [4]

In the Vietnam market, Coca-Cola has always been their biggest competitor, which helps Suntory PepsiCo always be vigilant, always research and

develop not only the product but also the internal apparatus, and always probe the status of the opponent way to make the right steps On the other hand, the company must not be so engrossed in pursuing Coca-Cola that they forget about formidable domestic competitors, the highest being Tan Hiep Phat Beyond many beverage brands in Vietnam, Tan Hiep Phat receives the trust and love of consumers in Vietnam.

2 The macroenvironment

2.1 Demographic

The current population of Vietnam is 99,156,022 people as of October 8,

2022, according to the latest figures from the United Nations Vietnam's population currently accounts for 1.24% of the world's population Vietnam isranked 15th in the world in the ranking of the population of countries and territories [5] The population growth rate is an important demographic indicator that affects the size of demand A large and growing population creates a large potential market for many businesses and Suntory PepsiCo Vietnam is no exception Vietnam with more than 90 million people and a high population growth rate is an attractive market for PepsiCo

(figure 2)

The age group of Pepsi's main customers is people from 15 to 45 years old According to figure 2, the age of the Vietnamese population is suitable for Pepsico to penetrate the Vietnamese market That's why PepsiCo often takes young people as the main character in its advertising PepsiCo has just entered the Vietnamese market not long ago, but its products have won the hearts of consumers

2.2 Economic environment

[7 ]Vietnam's economic scale increased 12 times, per capita income increased8.3 times, export-import turnover increased 29.5 times, and foreign direct investment (FDI) increased 22 times The national poverty rate from 58% in

1993 to only 2.23% in 2021 according to the new standard Vietnam has risen

to become a middle-income country with a GDP per capita reaching 2,779 USD in 2020 Seeing the spirit of striving to rise, PepsiCo chooses Vietnam

to cooperate with and develop its brand

2.3 Technological

PepsiCo is in a good position to benefit from the most recent technological upheavals as a business PepsiCo can expedite its R&D procedures and createmore targeted, focused marketing campaigns across the full spectrum of digital media by utilizing big data analytics and machine learning skills.The organization can improve the effectiveness of its production and logistical processes with the use of automation technologies The

organization can improve its infrastructure for serving customers and streamline its supply chain with the aid of advances in artificial intelligence

2.4 Political

Political factors play a significant role in determining the factors that can impact Pepsico, Inc.'s long-term profitability in a certain country or market.There was no terrorism, no demonstrations or riots, and the Army and police force well performed their functions, roles, and obligations in the defense of the country It is that political peace that has attracted a lot of attention from investors from many parts of the world Seeing the great potential in this peaceful country, PepsiCo actively cooperated with Suntory to form Suntory PepsiCo Vietnam Because the political economy in our country is more peaceful than other countries in the world, it can be said that even though the law is strict, the company still ensures compliance with the law and earns a lot of profits

prefer fizzy drinks Pepsi has met the taste habits of Vietnamese people Vietnamese consumers are young, healthy and love sports, especially football, and have a high sense of national pride Pepsi has captured this culture and launched appropriate advertising shows Most clearly, when launching the slogan "Drinking Pepsi is to support the Vietnamese national team to reach the international arena", Pepsi's sales set up Instantly

skyrocketed, Vietnamese people's affection for Pepsi was also reinforced

In particular, the company's advertisements are dynamic, fresh, without discrimination or objectionable elements, and do not deviate from

Vietnamese customs and traditions It can be seen that the creative team of Suntory PepsiCo Vietnam is very meticulous and sophisticated in creating suitable advertising ideas The company is very smart and flexible in producing eye-catching canned beverages according to holidays, and major events of the year that attract consumers, this move has skyrocketed the company's sales

II SWOT analysis

Strengths

- Pepsi is a soft drink product with a

long-standing, prestigious and famous brand

in the world

- Pepsi has a fairly strong market share

and position in the market

- Products with good quality, reasonable

prices, beautiful packaging, variety of

types and models

- Pepsi is highly appreciated by

customers for its convenience

- Pepsi is associated with a youthful style,

always breaking through - is a product

for young people

- The taste and flavor is suitable for the

majority of Vietnamese consumers

Weaknesses

- The strength of the brand is not high

- The cost of advertising the product

- Vietnam joined the WTO

- Modern consumer tastes and trends are

getting bigger and bigger

- Size and structure of young population

- Vietnam's climate is very suitable for

the development of beverage products

- Fast-growing technology and easy

access to other competitors

- There are large, reputable suppliers

- Vietnam is a new and potential market

for soft drinks because convenience

drinks are quite new for Vietnamese in

recent years Therefore with the

significant economic growth of this

country, PepsiCo can exploit profits in

Vietnam’s market

Threats

- Increasing inflation

- Various substitute products

- Customers are increasingly demanding product quality and design

- The pressure from competitors is great

- Significant increasing cost of ingredients, operating in recent years

- PepsiCo uses plastic bottles and cans to store drinks, so if they are not collected and disposed of in the right way, they will pollute the environment

2 SWOT Analysis

a S - O

When the economy recovers from the recession, high consumer demand will

be a great motivation for Pepsi to develop

Joining the WTO will be an advantage for Pepsi to easily access its

processing technology, raw materials, and suppliers

The expanding market, modern consumer tastes will all be an opportunity to fully exploit the advantages of Pepsi's reputation and ability to be suitable for Vietnamese consumers

Vietnam's population is getting younger and younger is all that Pepsi expects because Pepsi's products are always for young people

b S - T

The price increases but with the prestige and large number of customers, it

will not have a big impact on the demand for the product

The price of some materials may increase, but with long-standing reputable suppliers, price suppression will be quite common and will have a negligible impact on product prices

These weaknesses are difficult to limit in the current market

Technological development, can improve the design of various product packages

The growing tastes and trends of modern consumption are an opportunity for Pepsi to expand its market share

Vietnam's accession to the WTO is an opportunity for Pepsi to promote its brand in many different markets

III CUSTOMER-DRIVEN MARKETING STRATEGY

1 Segmentation

1.1 Soft drink lovers.

➢Age: teenagers and generation z from 5 to 19 years old.

➢Size: from the nuclear family to extended family, scholars, and alumni.

➢Gender: male and female

➢Occupation: middle to low-income, as they cannot really get a job and

make a profit Even if their age is between 16-19 they can legally apply,

it can be a temporary or part-time job In another case, the money earned may come from their parents' allowance, also known as pocket money This fee can range from VND 50,000 to VND 170,000 per week

b Psychological:

➢Lifestyle: a sweet tooth and a fondness for sugary drinks The sugary

taste of Pepsi boosts their energy and satisfies their craving They tend

to have a very active lifestyle They like to socialize with others and participate in sports carbohydrate-containing soft drinks can replenish energy and fluid during rigorous activities

➢Personality: can fall into the extrovert group or ESFP personality type,

which is described as “spontaneous, energetic and enthusiastic people”

c Behavioral

➢ Occasions: As stated, due to the intense craving for sweetness, soft drink lovers are one of the heaviest consumers Therefore, they are potential loyal customers Moreover, to support this point, PepsiCo focuses on digital marketing with 2.53 million followers on Twitter,

879 thousand subscribers on Youtube, and 1,7 million followers on Instagram They also create lots of campaigns like “Bring Home Happiness or “Fizz to Life" as well as collabs with several singers and other famous artists/celebrities, for instance, Kendal Jenner, BlackPink,Britney Spears, Messi, Dong Nhi, Toc Tien are the names associated with the brand As a result, this young generation is resolutely impacted

by social media and influencers tend to gravitate toward what they see

on the apps and what products their idols promote

➢Benefit: With their free spirit, those individuals love to party and Pepsi drinks are a good choice to have in this situation when it involves lots

of oily and rich food About 89 percent of Vietnamese choose soft

drinks at parties such as birthday celebrations or New Year's Eve.

d Geographic: These people can be from every part of Vietnam, from

urban to rural areas, since PepsiCo drinks are distributed at every corner, from huge supermarkets to convenience stores to even markets

➢Relationship: They are either single or in a relationship Furthermore, they also can be married with up to 5 children

b Psychographic: This kind of person pays a lot of attention to their health They participate in sports and exercises to keep themselves fit They are very precise with their meal - they keep track of what they consume to maintain health and balance Therefore, when they crave some junk food and soft drinks, they will lean on the Pepsi diet or Pepsizero calo so they feel less guilty and it does not have a huge effect on their health The segment can be described as particularistic people whoprefer to plan things

c Behavioral: These individuals are only semi-loyal customers due to their lifestyle On occasion, they might use PepsiCo products when meeting with customers or working overtime at work According to Quora (2021), Pepsi “contains caffeine, which is considered a

stimulant, meaning it causes a reaction in your body that can speed up your central nervous system, making you feel more awake and alert.” It

also gives them “a surge of energy” which fuels them for a long day at work and keeps them on track to finish their job

d Geographic: Just like soft drink lovers, health-conscious people may come from both urban and rural parts of Vietnam However, according

to their lifestyle, the chance they are from big cities like Hanoi, Ho Chi Minh or Hai Phong is higher

in 2020, proving that this strategy is really working for them (Suntory PepsiCo, 2020)

On the other hand, they also use a segmented targeting strategy PepsiCo is divided into multiple smaller brands, for instance, Fanta, 7Up, Mountain Dew, Aquafina, Lipton, Mirinda, etc In terms of nutritional value, cost, and packaging, there are some disparities across PepsiCo’s brands Thanks to that, they can satisfy the demand of different segments of

● Active lifestyle

● Loyal customers, heavy consumers

● Occasions:

● Rural/ urban of Vietnam