Table of content: 2 INTRODUCTION 3 ABOUT THE COCA-COLA COMPANY 3 COCA-COLA: THE PURPOSE AND VISION 4 TARGET CUSTOMERS 5 PRODUCT 5 MICRO ENVIRONMENT 6 THE COMPANY 6 SUPPLIER 7 MARKET
Trang 1MARKETING PRINCIPLES
INDIVIDUAL ASSIGNMENT Analyzing marketing environment of
Full name: Chu Ngọc Tuấn
Class: HM1602
Student ID: HE150440
Lecturer: Bùi Thị Hạnh Thảo
Course: MKT101 – Marketing principles
Date: Spring2021
Trang 2Table of content: 2
INTRODUCTION 3
ABOUT THE COCA-COLA COMPANY 3
COCA-COLA: THE PURPOSE AND VISION 4
TARGET CUSTOMERS 5
PRODUCT 5
MICRO ENVIRONMENT 6
THE COMPANY 6
SUPPLIER 7
MARKETING INTERMEDIARIES 7
COMPETITORS 8
PUBLICS 9
CUSTOMERS 9
MACROENVIRONMENT 10
DEMOGRAPHIC 10
ECONOMIC 11
NATURAL 12
TECHNOLOGICAL 13
POLITICAL AND SOCIAL 14
CULTURAL 15
HOW THE COCA-COLA COMPANY CAN REACT TO MARKETING ENVIRONMENT 16
Trang 3
● ABOUT THE COCA-COLA COMPANY:
The Coca-Cola Company is the world's largest beverage company, refreshing consumers with more than 500 sparkling and still brands and nearly 3,900 beverage choices (CocacolaInfographic, 2021)[1]
On May 8, 1886, Dr John Pemberton served the world’s first Coca-Cola
at Jacobs' Pharmacy in Atlanta, Ga From that one iconic drink, a total beverage company has been evolved (The Coca-Cola Company, 2021) [2]
Through the world's largest beverage distribution system, they are the No
1 provider of both sparkling and still beverages More than 1.9 billion servings of their beverages are enjoyed by consumers in more than 200 countries each day (CocacolaInfographic, 2021)[3]
Trang 4(CocacolaInfographic, 2021)[4]
● COCA-COLA: THE PURPOSE AND VISION:
According to Coca-Cola Company, their purpose is: “Refresh the world Make a difference.”
The Coca-Cola company with the vision is “ to craft the brands and choice of drinks that people love, to refresh them in body & spirit And done in ways that create a more sustainable business and better shared future that makes a difference in people’s lives, communities and our planet.” (Purpose & Company Vision The Coca-Cola Company, 2021) [5]
Trang 5● TARGET CUSTOMERS:
Age is one of the most important segments of Coca-Cola dividing it mainly into two parts: Coca-Cola mainly addresses its product to a youngcustomer base aged between 10-35 Also, the company targets
universities, schools, Colleges etc in acquiring contracts However, the coca-Cola diet products also addresses an elderly segment considering people with diabetic who are often 40 plus (Comparative analysis of marketing segmentation, targeting strategy between Coca-Cola vs Pepsi
in Bangladesh, 2021)[6]
● PRODUCT:
Led by Coca-Cola, one of the world's most valuable and recognizable brands, the company's portfolio features 21 billion-dollar brands, 19 of which are available in reduced-, low- or no-calorie options These brands include Diet Coke, Coca-Cola Zero, Fanta, Sprite, Dasani, vitaminwater, Powerade, Minute Maid, Simply, Del Valle, Georgia and Gold Peak Through the world's largest beverage distribution system, they are the
No 1 provider of both sparkling and still beverages More than 1.9 billionservings of their beverages are enjoyed by consumers in more than 200 countries each day (CocacolaInfographic, 2021)[7]
Coca-Cola Classic is Coca-Cola GB’s best-selling The original and iconic cola is still top-seller However, 43% of the cola now sell is made
up of Coca-Cola Zero Sugar, Diet Coke or Coca-Cola Life, which have less or no sugar (Coca-Cola UK, 2020) [17]
● This assignment will talk about three parts: Microenvironment, Macroenvironment and discuss how companies can react to the marketing environment
Trang 6MICRO ENVIRONMENT
Microenvironment consists of the actors close to the company that affect its ability to serve its customers-the company, suppliers, marketing intermediaries, customer markets, competitors, and public (Philip Kotler & Gary Armstrong, 2012)[8]
● THE COMPANY:
The Coca-Cola Company has always been a creator of refreshing beverage brands Today, expansive portfolio includes more than 500 brands, including sparkling beverages, juices and juice drinks, coffee, tea,sports drinks, water, value-added dairy, energy and enhanced hydration drinks Among these brands are 20 that generate more than a billion dollars in annual retail sales Another core competency has been the ability to lead the world’s most sophisticated system of independent bottling partners while creating value for retail and restaurant customers Over the years, Coca-Cola bottling partners have been acquired and managed with the aim of improving performance, optimizing
manufacturing and distribution systems, and ultimately refranchising the bottling territories back to independent status (Five Strategic Actions Of Coca-Cola, 2017)[9]
They look at ways to enhance the employee experience across their Company have looked at ways to enhance further with the goal of creating the world’s most exciting, productive, fun and fulfilling career environment, with workplaces that nourish curiosity, learning, innovation and growth (Five Strategic Actions Of Coca-Cola, 2017)[10]
Coca-Cola is one of the most famous international brands in Vietnam Coca-Cola Vietnam currently has factories located in Ho Chi Minh City,
Da Nang and Hanoi with about 2,500 employees, of which more than 99% are Vietnamese Coca-Cola's beverage brands in Vietnam include Coca-Cola, Coca-Cola Light, Coke Zero, Sprite, Fanta, Minute Maid Nutriboost, Minute Maid Teppy, Schweppes, Dasani and Aquarius (cocacolavietnam, 2017)[28]
Trang 7● SUPPLIER:
According to Siemens (n.d)[11], Coca-Cola Beverages Vietnam Limited has creation plants in Hanoi, Da Nang, and Ho Chi Minh City with more than 1,200 workers, glass container, and PET generation lines with a consolidated yearly yield of more than 18 million instances of soda pop items In the raw materials, Coca Cola Vietnam decides to cooperate with local companies such as Dynaplast Packaging Company provides high quality bottles and Bien Hoa Joint Stock Company (Sovi) offers carton paper for storage and levels of domestic consumption for Coca Cola Beverages Vietnam Moreover, Stepan Company which is importer and provides coca leaf for use in the production of Coca Cola As a result, rawmaterials can be provided from local areas, which means it can be easier for the company to deliver stuff Therefore, they can save a huge amount
of time and use it to increase productivity
● MARKETING INTERMEDIARIES:
Coca-Cola Vietnam has tried to distribute a dense network from rural to urban areas, from plains to mountains, from south to north, but still concentrated in densely populated areas Coca-Cola products appear in bars, supermarkets, and grocery stores, on the
streets to alleys (Hoang Tien, Thanh Vu and Van
Tien, 2020)[12]
In the fast food market, Coca-Cola is distributed
under lucrative contracts with major fast food brands
like McDonald's, Subway, Burger King, etc
(BrandsVietnam, 2021)[13]
Trang 8● COMPETITORS:
The four biggest names in Vietnam’s sweetened beverage market include the US’ Coca-Cola Vietnam, Suntory PepsiCo (a fully foreign-owned joint venture between PepsiCo and Japan’s Suntory Holdings Limited), URC Vietnam from the Philippines, and Vietnam’s Tan Hiep Phat (Soft drinks see hard competition, 2018)[14]
In 2015 and 2016, Coca-Cola Vietnam's revenue was nearly 7,000 billion VND, with pre-tax profit of about 600 billion VND per year Compared
to Tan Hiep Phat, Coca-Cola Vietnam's gross profit margin is equivalent
to nearly 40% However, the selling cost of this unit is 10% higher (Cafefvn, 2018)[15]
Compared to Coca-Cola's
sideways sales results,
PepsiCo's business
performance in Vietnam
was somewhat better After
establishing a joint venture
with Suntory Corporation of
Japan in 2013, the
company's revenue
increased sharply Suntory
PepsiCo Viet's revenue reached more than
11,000 billion in 2014, an increase of 2,000
billion the following year and nearly 13,600
billion in 2016 The profit of this joint
venture also doubled in just three years,
from nearly 700 billion in 2014 to more
than 1,400 billion in 2016 (Cafefvn, 2018)
[16]
Trang 10The macroenvironment consists of the larger societal forces that affect themicroenvironment-demographic, economic, natural, technological, political,and cultural forces (Philip Kotler & Gary Armstrong, 2012)[20]
● DEMOGRAPHIC:
The current population of Vietnam is 97,872,490 as of Wednesday, February 10, 2021, based on
Worldometer elaboration of the
latest United Nations data 37.7 % of
the population is urban (36,727,248
people in 2020) The median age in
Vietnam is 32.5 years
(Worldometers, 2021)[21] Vietnam
has a high rate of urbanization, with
more than half of its population
under the age of 35, securing a large
market for the carbonated beverage
industry (BrandsVietnam, 2021)[22]
According to a workshop by the Ministry of Health and the World Health Organization (WHO) to recommend the health effects related to sugar andsugary drinks, in 2016 Vietnamese people consumed over 4 billion liters
of soft drinks, in 2018 on 5 billion liters and 2025 are 11 billion liters The above study in 1910 people on the habit of using carbonated soft drinks showed that over 57% had a habit of drinking carbonated soft drinks, of which 13% of men surveyed and who drank carbonated soft drinks reported drinking each day, nearly 16% drink 5-6 times / week, nearly 29% drink 3-4 times / week (Tuoitrevn, 2018)[23]
Trang 11● ECONOMIC:
According to the IMF, at the end of 2020, if calculated in terms of purchasing power equivalent, the scale of Vietnam's economy will reach 1,050 billion USD and GDP per capita must reach over 10,000 USD According to World Bank data, with an average economic growth of 6.8% a year for the 2016-2019 period, Vietnam is among the top 10 highest growing countries.(IMF, 2020)[24]
GDP growth of Vietnam in the past 10 years
(Tapchitaichinh VN, 2020)[25]
Dr Nguyen Dinh Cung - Former Director of the Central Institute for Economic Management said that the macroeconomy is very stable, reflected in a series of indicators, such as low inflation, surplus turnover
in terms of trade balance trade, budget deficit decreased, credit growth tended to decrease, foreign exchange reserves increased Thus, not only maintaining macroeconomic stability but also improving the resilience of the economy (laodong vn, 2019)[26] The economy is growing which is
an ideal trend that makes Vietnam become a good destination for Cola to expand their business
Coca-● NATURAL:
Trang 12According to the United Nations Food and Agriculture Organization (FAO), Vietnam emits a large amount of plastic equivalent to 1.8 million tons per year, becoming the 4th largest plastic waste country in Asia (based on United Nations Statistics) Vietnam is one of the countries with the largest amount of plastic waste discharged into the sea in the world, with the amount of plastic waste discharged into the sea equivalent to 6%
of the total amount of plastic waste in the sea worldwide (Jambeck et al , 2015).
With such an alarming situation, the control and minimization of plastic waste has become the top concern of Coca-Cola when implementing sustainable development strategies in Vietnam On September 11, 2019, Coca-Cola as one of the 9 founding members of Packing Recycling Organization Vietnam (PRO Vietnam) signed a Memorandum of Understanding with the Ministry of Natural Resources and Environment
to share goals, visions and responsibilities in promoting a circular economy through waste reduction, sorting, collection and recycling With
3 main pillars of Design, Collection and Cooperation, the strategy "For a world without waste" is expected to bring comprehensive solutions, covering the life cycle of waste (CocacolaVietnam, 2020)[27]
Trang 13Da Nang factory currently has four production lines with modern technology During the development process, the factory has continuouslyupgraded its smart and environmentally friendly production technology, with strict certifications from Vietnam and internationally New
warehouse system with an area of 4,800 m2, capacity of 4,000 pallets andcan upgrade smart warehouse installation with a capacity of up to 8,000 pallets The warehouse is installed with LED lighting system to save energy and automatic vehicle entry and exit control system The wastewater treatment system is upgraded with wastewater
microbiological treatment technology with modern membrane filtration method (MBR technology - membrane bio-filter) ensure the quality of wastewater at level A after being discharged into the environment, exceeding the current prescribed standards In addition, the wastewater treatment system with a design capacity of 1,000 m3 / day (can be upgraded to 1,500 m3 / day and night) is installed to reduce noise, controland monitor automatically, help minimize Optimize the electric energy used during the treatment of wastewater from the manufacturing plant The technical parameters and quality of wastewater are transferred to the online central control room for storage and synchronization, ensuring the quality of wastewater meets the requirements (cocacolavietnam, 2017)[28]
The Coca-Cola factory in Da Nang (cocacolavietnam, 2017)[28]Coca-Cola Vietnam applies the new biofilter technology MBR
(Membrane BioReactor), Coca-Cola VN calculates to increase the treatment efficiency and improve
the quality of wastewater when
returning them to nature This
water source is being reused for
irrigation, planting trees, fish
Trang 14farming in factories The Coca-Cola VN rainwater collection system helps to reduce the annual amount of groundwater exploited for
production These improvements help all 3 plants save 3-5% of their water use Particularly at the Thu Duc factory (Ho Chi Minh City), the amount of water needed to produce one liter of beverage has decreased by6%, a significant reduction for businesses that trade 100% of products with water as the main ingredient (Coca-Cola đầu tư công nghệ thân thiện môi trường, 2015)[29]
Trang 15● POLITICAL AND SOCIAL:
Coca Cola is now known as a 100% foreign owned company (Vietnam News, 2013)[30] In order to attract and support FDI enterprises into Vietnam, there are many types of policy tools used by the State In particular, tax policies are one of the areas of special interest to
investors.The tax policy focuses mainly on corporate income tax (CIT), export tax, import tax and other land The State has reduced the tax burden through reducing tax rates, simplifying the tax system, expanding taxable objects, and eliminating tax and transferring profits abroad since
2003 In this period, tax policies have contributed to the direction of to eliminate discrimination between economic sectors and between domesticenterprises and FDI enterprises The reduction of the common tax rate through the revisions of the Law on CIT (the period 2004-2008 is 28%, the period 2009-2013 is 25%, the period 2014-2015 is 22%, and the period January 1, 2016 to now 20%) (Bàn về chính sách ưu đãi đầu tư của Việt Nam đối với doanh nghiệp FDI, 2019)[31]
● CULTURAL:
Mr Truong Dinh Bac, Deputy Director of Preventive Medicine (Ministry
of Health) said, according to the report of Euromonitor International, in
2016 Vietnam consumed more than 4 billion liters of soft drink In which,the most instant tea with more than 2 billion liters; followed by
carbonated beverages (over a billion liters), followed by sports drinks, energy drinks, and fruit juices It is forecasted that in 2018, beverage consumption in Vietnam will reach more than 5 billion liters, by 2025 it will reach 11 billion liters Sugar consumption and production in our country also increase annually by 30-40%, especially consumption exceeds the production level This report shows that the carbonated beverage market is expanding very smoothly in Vietnam (vnexpress, 2018)[32]
Including the period 2010 - 2015, on average, each Vietnamese consumesabout 15 liters of milk / year In the coming years, the dairy industry still has great potential as demand is forecast to grow 9% / year, reaching 27-