coca cola marketing research

Throughout the history, Coca- cola is not only successful at creating a tasteful beverage but also very good a’ communicating customers through each marketing campaign and being industri

VIETNAM NATIONAL UNIVERSITY HCMC INTERNATIONAL UNIVERSITY

——

SCHOOL OF BUSINESS

COCA COLA Marketing Research

Principle of Marketing

Course:

Lecturer: Nguyen Phuong Thao

Prepared by: Group 2

Group Members: Trinh Ngoc Nhan

Pham Le Bao Tran

BABAAU19016 BABAAU 19009 BABAIU 18388 BABAIU18315 BABAIU18382 BABAIU18306

Bui Nguyen Thien Phục Nguyen Luong Bich Nhu Phan Minh Thu

Nguyen Thi Linh Trang

Ho Chi Minh City, Vietnam June 29, 2020

Table of Contents

1 Overview of Coca- Cola: History and its foundation in Vietnam 4

2 Marketing environment of Coca- Cola in Vietnam các che 5

3 Marketing SCQMentation cccccccccccccccccccceeceeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeneeeeeees 7

4 Positioning Strategy- Marketing mix of Coca- Cola wo iccccccsccscesseteeeeeeens 8

Introduction

Coca- cola has been known as the dominant in the non-alcohol beverage field In fact, it is the largest beverage company in the world The brand has expanded itself and reached for other hundre:

of soft drinks, fruit juices, sports drinks, and other beverages beside the original coke Throughout the history, Coca- cola is not only successful at creating a tasteful beverage but also very good a’ communicating customers through each marketing campaign and being industrial leader both ir product sales and marketing They inspire a lot of companies in closely connecting with the target audience- meeting customers’ desires, having good relationships with the stakeholders It's no surprise that the company is a dominant powerhouse in the global economy and spends a great amount : dollars on ads—a vital strategy if it wants to maintain its stellar reputation Having a marketing strategy uniquely designed for the company has given it a huge boost at increasing global branc recognition When it comes to terms of Coca- cola ads, it prefers the positive feeling/emotions that left after watching

130+ sec

> 200+

Ñ countries offer our products

ll Body

1 History of the company- The Foundation of Coca- cola in Vietnam

Coca-Cola was originally a soda fountain in downtown Atlanta, Georgia in 1886, the fountain was believed to be an incentive for social interaction and inspired innovation

Throughout the years, coke is well-known for being the #1 nonalcoholic beverage company in the world The Coca-Cola Company is home to 15 billion dollar brands, including four of the top five soft drinks such as Coca-Cola, Diet Coke, Fanta, and Sprite Several other top brands include Minut Maid, Powerade, and vitamin water In other words, it owns or licenses and markets more than 50C beverage brands, predominantly sparkling drinks but also waters, juice drinks, energy and sport: drinks, and ready-to-drink coffees and teas With the world's largest beverage distribution system, The Coca-Cola Company reaches consumers in more than 200 countries

Coca-Cola has sold trademarked products in the United States since 1886 and is now selling it: products in more than 200 countries Their mission is to rejuvenate the world, to inspire moments of optimism and happiness, and to nourish value and make a difference They believe that key succes depends on their ability to provide consumers with a wide diversity of options to meet desires, needs and lifestyle choices Coca-Cola has four strategic priorities to create long-term growth: to drive beverage leadership, to accelerate innovation, to leverage their balanced geographic portfolio, and t

lead the Coca-Cola system for growth

Joining in Vietnam since 1994, Coca-Cola Vietnam Beverage Co., Ltd has played a leading role in operating, including manufacturing and distributing these global branded product lines in the Vietnamese market Targeting in the category of non-alcoholic beverage products, Coca-Cola Vietnarr

has launched many products aimed at many segments, ranging from carbonated beverages such

Coca-Cola, Sprite, Samurai, Aquarius and Dasani mineral water

ey en the World

| ÍWdke 4 đlfference

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2 Researching on the marketing environment

a/ Political Environment:

Vietnam's legal framework is very robust, allowing companies to grow sustainably and compete healthily In Vietnam, the decision of a company is affected by many legal terms such as civil law, corporation law, investment law, customs legislation, tax law, along with the regulations on advertising, copyright protection, ensuring product quality and healthy safety

According to the tax agency costs flavorings imported from the parent company accounts for about 70-85% of the cost of plant in Vietnam However, the data cannot be determined by the agenc: because of not knowing whether the proportion of flavor additives from Coca Cola parent company in

5

Vietnam is, compared to other markets to put conclusions This proves their losses to dodge the government policy odd tax, so as it makes a bad reputation for the firm in the country

b/ Economic Environment:

The 2020 economic growth of Vietnam is now predicted to be lowered by 3-4%, compared

with the previous predicted number of 6.5% due to COVID-19 GDP growth of Vietnam in the first

half of 2020 is estimated to be 3,8%, almost 3% lower compared to 2019 due to the pandemic Ths annual inflation rate in Vietnam decreased to 2.40% in May of 2020 from 2.93% in the previous month and costs rose faster for food & catering services (12.11% vs 11.78%) The economic uncertainty in 2020 would generate a lot of difficulties in the company's business activities

c/ Cultural Environment:

The main characteristics of Vietnam 's consumers are young, active, imaginative and enthusiasts who want to try new things and are also concerned about their families and their owr health In order to make the right strategy, the organization needs to focus on these personalities A they are more concerned about the health effect of the product than its price, the company should hav

a policy to ensure quality and safety On the other hand, with young people wanting to express themselves, the company needs a certain marketing campaign that will bring the appropriate product

to their attention, especially at a time when the pandemic is perceived to be better

d/ Technological Environment:

Contrary to the economy, Vietnam’s technology is growing and is widely used in manufacturing

Currently the company is focusing on the research and production of the packaging to create bottl

forms which are easily recyclable and environmentally friendly Coca Cola also introduced web page design tools internally named Machine Design, this enables users to access and design new bottles e/ Demographic environment

The population is growing significantly, concentrated in the plain area and in the large cities of

Vietnam Moreover, Vietnam has the “golden population structure” (the number of people in the group

of labor force is as twice as the related person), suitable for the huge employment’s demand with high

technique and require the activeness

3 Coca- cola marketing segmentation

To provide enough products to satisfy consumers’ need and bring large fortune to the company, Coca-Cola decided to segment Vietnam’s market into different segments with great

potentials and benefits to focus on for easy control and profit These segments are divided intc geographic, demographic, and psychographic factor

In Vietnam, Coca-Cola mostly focus on the markets in large cities like Hanoi, Ho Chi Minh

city, Da Nang The three focused points here are Vietnam most evolved market with high population concentrated from both in and outside the country A report from WHO in 2016 said that Vietnam’s

soft drink market alone consumes more than five billion liters, with tea and coffee is the highest at about two billion liters, soda and carbonated drink at one billion, the rest are beverages like energ) drink, juice, The company established three main factories at each site to make sure there ar enough products and after that they will distribute the remaining to local areas, especially tourism location with high amount of restaurants, hotels,

The second segment in Coca-Cola’s market is demographic Vietnam is considered a rather

young country with the average age is 32 The main soft drink consumption group is at the age from £

to 29 which take over 45,5% of the whole population, equivalent to about 44,2 million heads, an astounding source of consumption Aiming in this part, the enterprise can ensure for it a great anc stable consumption However, it does not mean that the enterprise neglect other groups as well, wit diverse vary of products, Coca-Cola can find good lean way for all customers For example, they have Dasani mineral water for all ages, Fuze Tea for older people who likes to drink tea

Lastly, the company also considered market’s personality, more specific, it is the general

personality of Vietnamese consumers Because the main subject of Coca-Cola is from the age of 5 t

30s, who are at the point that needs constant changes, Coca-Cola’s marketing department come up

with a new advertisement which usually emphasizes on values that Vietnamese people treasures su

as family, friends, connections, love, Moreover, in special event such as Tet holiday, Christmas Eve, etc., Coca-Cola always change their packaging and bring messages relating to events

4 Positioning strategy- Marketing mix of Coca- Cola

The position strategy of Coca- Cola in Vietnam

Positioning is a marketing strategy creating a brand occupies a particular position, relative to competitive brands, within the minds of consumers Though the idea of purity is overwhelmed to death within the mineral drinking water class, however observing the history of Dasani, Coke should sharply

ride on the ‘purity plank’

Additionally, on February 26th 2016, Coca-Cola formally launched its “One Brand” world selling strategy in Vietnam Coca-Cola, Coca-Cola light and Coca-Cola Zero are united underneath the first Coca-Cola whole positioning in one world inventive campaign “Taste the Feeling” This strategy

extends the worldwide equity and painting attractiveness of original Coca-Cola across the Trademark

uniting the Coca-Cola family underneath the world’s darling nutrient whole Not solely will this selling action come back to life during a world campaign “Taste the Feeling” - victimization universal

storytelling and everyday moments to attach with shoppers round the world

Good things

come in fours

7 i

The marketing mix of Coca- Cola in Vietnam

The marketing mix is one of the most important components in every marketing strategies

Price

Coca-Cola's selling price is adjusted appropriately for each market segmentation They have ¿ different pricing strategy and base on the valued- base customer pricing strategies and the format ¢ competitors, in which Pepsi is the biggest direct competitor of the Coke brand in Vietnam

They have pursued a “3P” (“Price to value” “Pervasiveness” “Preference”) and “3A” (“Affordability”, “Availability”, “Acceptability”) pricing strategy to gain the best advantage and serve the consumers

Product:

Besides their core product in the Vietnamese market- Co-Ca Cola, the company try to develop their products mix in every aspects such as “Depth”- Coke with less sugar, Coke with none- sugar,

or Width- Pure water, Beverage, Fruity juice, Moreover, they are mainly focus on designing their packaging For instance, in the Tet holiday, Coca Cola use the “swallow bird” for their main theme as

they are the signal of spring and the vitality

Place

Coca-Cola's distribution systems all follow the model of fast- moving consumer goods

distribution (FMCG)

In Vietnam, Coca-Cola beverage products are manufactured at 3 package factories in Ho Ch Minh City, Hanoi and Da Nang The distribution channel of Coca-Cola throughout the country, from

large cities to rural areas, from general agents to small shops They mostly apply the indirect marketing channel, through many intermediaries such as coffee shop, restaurants, or the grocerie supermarket, Moreover, they also encourage their intermediaries by financial support, shop decoration, gift boxes,

Promotion

Through diverse advertising campaigns, Coca-Cola has gained the market share & even get th customer agrees in part of social responsibility by combining lifestyle with daily behavior

Advertising:

ads are also impressive, bringing a new perceptio

each individuals The most typical advertising campa

in Vietnam is Happiness Factory- spending 1 million

trial products for the consumers in Ha Noi, Ho Chi Mi

city, Can Tho,

Sale promotion

They have launched a nationwide promotion program in Vietnam for the actively young people: "Bat nap Sap déi- Tring đã doi" The difference of this program with the regular promotions is the spirit of

"Sharing the joy” for a group of friends rather than an individual

Ill Conclusion

In conclusion, Coca- cola has made big impacts on the society thanks to the unique marketing strategies Despite the fact of having many competitors in the field, the company still maintains a gooc

reputation in people’s mind Marketing is as important as the company’s product as it will help companies to deliver brand’s messages Determining the right market segments and suitable marketing

strategies applied to each market have made a strong foundation for the Coca- cola company in ar market Without a doubt, Coca Cola is a very successful brand throughout the century