pick a company as completely as possible characterize its brand portfolio and brand hierarchy how would you improve the companys branding strategies

The International PepsiCo officially PepsiCo Vietnam Expand production Beverages Company entered the International _and business IBC was established Vietnamese market Beverage Company in

TRUONG DAI HOC VAN LANG

Đạo đức - Ý chí- Sáng tạo

212_7QT0130_01 -— Brand Management Discussion Question 9 Pick a company As completely as possible, characterize its brand portfolio and brand

hierarchy How would you improve the company’s branding strategies?

(Prescribed Textbook — Question 1, Page 423)

3 Ngô Phạm Thụy My 197TM29455 4 Nhữ Ngọc Minh Ánh 197TC29822

Date of submission: 31% March 2022 Word count: 2857 Table of Contents

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VI References =iIIaA H 22

Appendix

Figure 1 The history of Suntory PepsiCo Vietnam Beverages Company with 8 highlights //40/14//07/787082123543/071/7 8000008000 0 nh 4 Figure 2 Suntory PepsiCo Vietnam P@GVCTQ à áLT n Tnhh HH nh kh 3 Figure 3 The brand hierarchy of Suntory PepsiCo Vietnam Peverq66 12 Figure 4 The changes in packing 0ƒtwo producfS (Sting, ÁgudqƒfÏHd) à.c cài 15 Figure 5 Some @HVỈTOHH.€HIQÏ COHSITUCIÍOH WAS PHH {O FQÌSC QWAICHCSS àà 16 Figure 6 Vòng Tày Nhân Ái qCHVỈHW à cung 17 Figure 7 Mùa Hè Xanh, Tiếp Sức Mùa Thu qCtiVÌHES àă cà nhe 17 Figure 8 The Water Hope - provides a clean water system for the community and PVOLCCES HO SCO ằằẮ .a 18 Figure 9 Join hands to clean up the codsf OŸ ÏGfHQHI à ánh khe 18 Figure 10 Lavie % bottles are made oƒ 50% oƒ recyoledl DÌASEÍCS à àà cành 19 Figure 11 Coca-Cola Disrupt 2022 COMPpPeCtitiOn ccccccccccccc nh HH nh He 20

The International PepsiCo officially PepsiCo Vietnam Expand production

Beverages Company entered the International _and business (IBC) was established Vietnamese market Beverage Company in Quang Nam

The strategic beverage The largest PepsiCo factory New factory in Develop soy-milk

alliance Suntory PepsiCo in Southeast Asia was Can Tho products Vietnam was established inaugurated in Bac Ninh

Figure I The history of Suntory PepsiCo Vietnam Beverages Company with 8 highlights

throughout its background On December 24, 1991, the International Beverages Company (IBC) was established In 1994, PepsiCo officially entered the Vietnamese market when it entered into a joint venture with IBC International Beverage Company In 2003, the company was renamed PepsiCo Vietnam International Beverage Company In 2004 through the merger and acquisition of the Dien Ban factory, the company expanded production and business in Quang Nam In 2007, SPVB further developed soy milk products In February 2010, the new factory in Can Tho officially went into operation The largest PepsiCo factory in Southeast Asia was inaugurated in Bac Ninh in October 2012 In April 2013, the strategic beverage alliance Suntory PepsiCo Vietnam Beverage (SPVB) was established between Suntory Holdings Limited and PepsiCo Inc

Figure 2 Suntory PepsiCo Vietnam Beverage Suntory PepsiCo Vietnam Beverage Company Limited (SPVB), 100% foreign capital, specializes in manufacturing non-alcoholic beverages and mineral water The principles of quality control of input materials and processes follow the standards of Suntory Holdings Limited - one of the largest beverage groups in Japan, and PepsiCo - one of the leading beverage corporations top of the world, always appreciated The company’s mission and vision are to continue strengthening and maintaining a leading position in the beverage industry while living with the company’s values With a passion for maintaining “Quality Commitment” and meeting the market’s increasing requirements, the company has constantly improved production processes, expanded factories, and successfully built customers’ trust for SPVB In the future, SPVB will continue to pursue the goal of sustainable development, bringing benefits to the company’s employees and business partners and contributing to the community where the company does business

This assignment will initially analyze the brand portfolio and brand hierarchy of SPVB Then, some recommendations for SPVB to improve the company’s branding strategies before concluding the study.

II Brand Portfolio A brand portfolio is defined as the leading brand of a company that covers all other brands or companies operated by a company A large company usually possesses various brand names to introduce products to fulfill the requirements of different market segments A brand portfolio also helps remove customers’ confusion about the origin of a brand by showing all the outcomes of the brand and their child brands

About Suntory PepsiCo, as a portion of the international food and beverage brand, has a portfolio of diverse types of drinks that can fulfill consumers’ different demands Unlike their mother brand PepsiCo, Suntory PepsiCo only concentrates on developing and distributing beverages for Vietnamese markets The portfolio comprises 12 brands divided into seven distinct categories to satisfy as many customers’ demands as possible Hence, it enables PepsiCo’s drinks to be consumed anytime

* Coffee: the daily behavior of having coffee for Vietnamese people has existed for decades; however, nowadays, young people and miullennials seek an = alternative product that they can purchase at 2 convenience stores for a quick go As one of the BOSS Ca Phê leading Ready-to-drink Coffee Brands in Japan, Boss

Coffee, which expertly harnesses the ingredients from coffee beans 100% authentic, is brought to Vietnam to fulfill the need of the market With its rich coffee taste, customized to best fit with strong Vietnamese taste, Boss coffee is a perfect go-to choice for busy Vietnamese young working adults

* Carbonated soft drinks: This category is the most loved and consumed product in Vietnam, led by Pepsi This internationally renowned cola-flavored carbonated soft drink inherits numerous long-standing historical values In addition, 7-Up, together with Pepsi, has dominated the Vietnam beverage market for a long time with fantastic lemon flavor filled in various bottle sizes from 320ml, 390 ml, 1,51

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Besides, Mirinda, Mountain Dew, and Gatorade are the part of this category that account for most of the brand revenue from the Vietnam market

* Energy drinks: Sting is the only representative in this category; however, it has dominated other brands with its

Vietnam in April 2019, pioneering to establish of a new Twister

category of Value Added Water by optimal technology combining clear water and natural ingredients, adjusting to suit Vietnamese people’s taste

* Juice drink: Twister, the number one fruit juice expert globally, and was Vietnam’s No.1 brand in the juice industry in 2020 in terms of value and output Despite having several flavors, it is mainly known for Orange Fruit Pulp which comes in convenient packs from 320ml can, 350ml pet, 455ml pet, and 11 pet * Refreshing Malty Beverage: a new concept of non-

alcoholic beer, which many brands pursue, and PepsiCo là +

also developed their product, All-free, the barley- AY

»

flavored beverage First introduced in Vietnam in 2021, |

SUNTORY with the signature barley flavor, no sugar, no calories, ALL- F REE All-free is the perfect substitute for traditional beer for 4-7) those who want to experience beer but are allergic to alcohol

Usually, four types of brands make up the average brand portfolio: flanker brands, cash cow brands, low-end entry-level brands, and high-end prestige Each category has a purpose, and in many circumstances, a company will build and sustain brands that serve different functions to complement each other Suntory PepsiCo also has some of these types of brands:

e Flanker brand: A flanker brand is a new brand launched by a firm that already owns a well-known brand in the same product area By targeting a distinct group of consumers, the new brand can compete in the category without jeopardizing the old item’s market share

> Example: All-free is a non-alcohol and beer-alternative drink from Japan (Suntory), which has just been released on Apnil 2021, with an ultra-light, ultra-crisp, and ultra-refreshing taste This exciting drink has 0.0% alcohol, no sugar, no calorie and is segmented in the Refreshing Malty Beverage category for people who love to drink beer but do not want to be drunk

e@ Cash Cow: is a brand already strong in the market, bringing in a sustainable revenue stream without spending too much money on marketing campaigns

> Example: The cash cows of Suntory PepsiCo are Aquafina, Tea+, Twister, Sting, Pepsi, and 7-Up Six products as mentioned above are considered cash cows of the company since consumers often buy them when they are thirsty (Aquafina), when they are at the internet cafes (Sting), when they want something to refresh after work/ study (Tea+, Twister), and when they are in a party or eating fast food (Pepsi, 7-Up)

e Low-end entry-level brands: A low-end entry-level brand is added to a portfolio of brands to be supplied at a lower price than the portfolio’s other products or services The concept behind low-cost entry-level brands is to entice buyers > Example: Among the Bottle/ Mineral Water category (Aquafina, Revive,

Goodmood), Aquafina is cheaper than the other two products So that Aquafina is the low-end entry-level brand of the company

e High-end prestige: > Example: All of the products of Suntory PepsiCo are at a reasonable price

(around 7.000VN ~ 20.000 VND) depending on the capacity (330 ml ~ | liter) Hence, there is no product of this type

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III Brand Hierarchy Brand hierarchy assists in displaying the number and nature of common and distinctive brand elements, featuring variations throughout the company’s product or service ranges The brand hierarchy shows the graphic brand elements in ordering and graphically refers to the entire branding strategy of the complete portfolio

A brand may have multiple hierarchy levels, and there are four levels, respectively: Corporate or company brand, Family brand, Individual brand, and Modifier

e Corporate brand: is at the highest level of the brand hierarchy At this level, all products and sub-products are linked to one cohesive and consistent image, naming, or an identity structure Using corporate brand equity to create brand recognition, each product’s message must express the company’s value proposition homogeneously

e Family Brand: The company’s brand name will be linked to one or more product or service categories, and they will be marketed under that name e Individual Brand: At this level, the company is associated with one product

category only and has its unique brand name, image, and identity They customize and develop their separate marketing programs to build their brand equity, and if the brand fails, there will be less danger to other brands and the corporation itself

e Modifier: is to distinguish the product, allocate a specific item, model type, version, or configuration of a product

lãi

PepsiCo Inc (USA)

e Corporate Brand: PepsiCo Inc., and Suntory Holdings Limited e Family Brand: PepsiCo and Suntory produce and run two different kinds of

beverages separately, creating a diverse product portfolio for their target customers While Suntory Holdings Limited commits “to create harmony with people and nature” (Mizu To Ikiru), PepsiCo’s foundation is “Performance with Purpose,” - demonstrating our belief that the company’s success will always be closely linked to the sustainability of the surrounding environment So, SPVB is pursuing the goal of sustainable development, benefiting the company’s employees and business partners, and contributing to the communities in which the company operates

e Individual Brand: © Oolong TEA+ Plus Oo ALL-FREE

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© ©

Good Mood BOSS Coffee Lipton tea Aquafina REVIVE Electrolyte Drink Twister

Pepsi 7-Up Sting Mirinda Mountain Dew Gatorade Modifier:

© Oolong TEA+ (4): Oolong TEA+ (PET 350ml, (PET 455ml, PET 1L), Oolong TEA+ Lemon ((PET 350ml, PET 455ml), Oolong TEA+ No Sugar (PET 455ml), Oolong TEA+ Matcha (PET 455ml)

Good Mood (2): Good Mood Water with Yogurt taste (PET 455ml), Good Mood Water with Real Orange extract (PET 455ml)

BOSS Coffee (2): Black Coffee, Milk Coffee with the size of CAN 180ml Lipton tea (2): Lipton Green Tea with Honey Lemon Flavor (PET 350ML), Lipton Black Tea with Lemon Flavor (PET 455ml)

Aquafina (2): Aquafina pure water (PET 500ml, PET 355ml, PET 1500ml, PET 5000ml1), Aquafina Soda (CAN 320ml)

REVIVE Electrolyte Drink (2): Revive Isotonic Original, Revive Salted Lemon in three sizes (PET 390ml, PET 500ml, CAN 330ml)

Twister (2): Tropicana Twister Orange Fruit, Tropicana Twister Passion Fruit in different sizes PET 350ml, PET 455ml, PET IL, Can 320ml, RGB 240ml

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Pepsi (3): Pepsi, Pepsi No Calorie, Pepsi No Calorie with Lemon Flavor in different sizes PET 330ml, PET 390ml, PET 1,5L, CAN 320ml, RGB 300ml

Sting (3): Sting Energy Drink (PET 330ml, CAN 320ml, RGB 240ml), Sting Energy Drink with Red Strawberry Flavor (PET 330ml, CAN 320ml, RGB 240ml), Sting Energy Drink with Coffee Flavor (PET 330ml) Mirinda (4): Orange, Sarsi, Soda Cream, and Iced Tamarind flavors in different sizes (PET 330ml, PET 390ml, PET 1,5L, CAN 320ml, RGB 240ml)

Gatorade (2): Gatorade rehydrating, Gatorade Lemon Flavor with the size of PET 500ml

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