marketing management topic aquafinas marketing strategy

Objective: Object: Model SMART Smart Objective: Increase market share Specific specific: Increase 10% market share in the world in bottled purified water.. Positioning: Aquafina position

BO GIAO DUC VA DAO TAO TRUONG DAI HOC VAN LANG

MARKETING MANAGEMENT

TOPIC: AQUAFINA’S MARKETING STRATEGY

Group name: Surprise Lecturer: Mayy Nguyen Class: 221 71MRKT40033 E

School year: 2022-2023

Ho Chi Minh City, December 6, 2022

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Serial Member Task Level of completion 1

Hồ Trần Ngoc Thanh Additional Recommendations & Reasons Appendix B: Sample Ad

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Nguyễn Thị Anh Thy Object

Positioning Marketing Communications Appendix D: SWOT Analysis

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3 Nguyễn Bảo Ngọc Trâm Product/Service/Organization Distribution

Appendix C: Major Factors and Trends in the Environment: Appendix F: Projected Revenues, Major Costs, and Profits

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Mai Nguyễn Hoàng Hưng - Target Market Pricing

Appendix A: Features and Benefits Appendix E: Analysis of Individual (Major) Competitors

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1 Objective: Object: Model SMART Smart Objective: Increase market share Specific (specific): Increase 10% market share in the world in bottled purified water Measurable : The brand currently holds 15% market share and ranks second after Bisleri 36% Aquafina aims to double its current growth in the next 4 years with double sales

Achievable : With rapidly growing product sales, a 10% increase in market share compared to current levels in 4 years is possible

Relevant (Related): focus on advertising on social networking sites especially Tiktok, Facebook.,

Timely (Time limit): 4 years 2, Target market: In order to be at the top and achieve such success, Aquafina has clearly determined that it will focus on serving specific target audiences for a long time, including: - Adults:

Market Aquafina's main target market is women and men between the ages of 25 and 45 because of this age group they care a lot about health

- Young people (15-25 years old): Belonging to a family of a good class, with high consumption demand

3 Product/Service/Organization: Product: filtration process Hydro-7, which includes reverse osmosis technology and a number of other filtration steps to thoroughly remove minerals, microorganisms, and bacteria bacteria and impurities in the water As a result, creating a perfectly pure water product with a completely different fresh taste

Aquafina is a product of Suntory PepsiCo Vietnam Beverage Co., Ltd and is manufactured under copyright PepsiCo Inc 700 Anderson Hill Road, Purchase, New York 10577, USA, in accordance with the Health Organization's Drinking Water standards World Health

Aquafina is packaged in handy packaging: 355ML plastic bottle, 5|00ML plastic bottle, 1500ML plastic bottle, 5L plastic bottle

Service: With the desire to bring benefits to customers when buying aquafina spring water products

The agent system offers the following services: Products with free home delivery

Value-added price support VAT invoices Good debt, cash transfer payment Fast return if not satisfied Fast delivery in just | hour On each product packaging, Aquafina carefully and clearly designs the location of the company's headquarters in Vietnam, the customer care phone number so that 4X

consumers can easily respond reflect necessary information or problems that need support In addition, customer feedback or complaints can be reflected on the genuine Fanpage on Facebook, this is a convenient and easy form for modern customers today with the need to use social networks a lot At Suntory Pepsico Vietnam's website, there is an email for comments and customer support, consumers can choose this form to give feedback about the company's products

Organization: PepsiCo is a leading global food and beverage corporation whose products are enjoyed by consumers more than a billion times a day in more than 200 countries and territories around the world

Suntory PepsiCo Vietnam Beverage Company Limited (SPVB), 100% foreign owned, is an alliance between PepsiCo Inc and Suntory Holdings Limited, was officially established in April 2013 The head office is located on 5th Floor , Sheraton Hotel, 88 Dong Khoi, District 1, Ho Chi Minh City The company's mission and vision is to continue to strengthen and maintain a leading position in the beverage industry while living up to the company's values In the future, we will continue to pursue the goal of sustainable development, benefit the company's employees and business partners, as well as contribute to the communities in which the company operates

Positioning: Aquafina positions itself as premium purified water “Aquafina - the purest part of you”:

Aquafina's purity can be felt with the naked eye Aquafina achieves absolute purity thanks to extraction from groundwater, treatment through the Hydrogen filtration process — 7 reverse osmosis and ozone systems, then sterilized by ultraviolet light, in accordance with drinking water standards of the World Health Organization Although manufactured in Vietnam, Aquafina still holds international standards for quality Product samples are still regularly sent to the US for quality testing before launching into the market As a result, creating a perfectly pure water product with a completely different fresh taste

Aquafina - a brand associated with the keyword "fashion" In the Vietnamese market, we can see the dominance of the keyword "fashion" of this brand This can be clearly seen through the event Aquafina Vietnam International Fashion Week (AVIFW), which is a fashion show that the company has recently associated with, which has attracted great attention from the public And that is also the outstanding communication activity in the positioning strategy of Aquafina 4 Pricing:

Aquafina applies a market penetration pricing strategy in its product pricing

Strategy

The price in Vietnam market of Aquafina bottled water is about 4500 VND - 5000 VND with a SOOML bottle which is equivalent to other brands available on the market The market penetration pricing strategy helps Aquafina earn a large amount of revenue in Vietnam Aquafina chooses two prices, mainly retail and wholesale prices for

consumers

355ML bottle bottle 1.5L bottle 5L

5, Distribution: Aquafina's distribution strategy is to use wholesalers as intermediaries to sell its products

Distribution channels Most of Aquafina's main distribution channels are intermediate distribution channels spread across the country, including 2 traditional distribution channels (wet market ) and modern distribution (supermarkets, supermarkets, etc.) convenience stores, e-commerce, etc.)

Traditional distribution channel Distribution channel will usually have 3 levels: manufacturer => reseller => wholesaler => retailer => to consumer According to research, Aquafina's products hold a market share of 40% thanks to its wide distribution channel in the market, which makes it easy for customers to access their products

Modern distribution channel consists of 3 participants: producer => intermediary distribution channel => consumers Aquafina's middlemen are usually Big C, Vinmart and convenience store chains like Circle K or Family mart Combined with distribution on e-commerce sites such as bachhoaxanh.com, vinmart.com, or aquafinavietnam.com website Consumers can order directly online on those e- commerce sites Cooperate with fast food joints

6 Marketing Communications Target audience:

Demographics Gender men and women

Age: 15 - 25 years old Geography: Nationwide

Psychology

Habits: exercise regularly, eat healthy, take care of your skin and face body every day, cleaning the house

Hobbies: travel, sports, reading, exercise, shopping Consumer behavior: like to buy sports products, healthy food Usage habits media: spend 3-4 hours per day surfing tiktok, instagram and facebook, 1 hour per day reading online newspapers and 30 minutes per day watching television Communication objectives Brand coverage Reach 60

% of customers target customers Increase product sales Communication tools

1 Advertise in Tuoi Tre Online and Thanh Nien Newspapers

2 Setting up banners and posters: Displaying at major commercial centers 8X

3 TV advertising:

Advertising channel | Quantity Form |Frequency HTV2

VIVI 1 TVC 3 times/1 day/l week

4 Social Media

- Run facebook ads 5 Promotions

Post on fanpage with frequency 2 times/week

Support newly opened stores with an estimated budget of 60,000,000 Combine with convenience stores and restaurant and cafeteria systems to offer promotions such as: deal aquafina 1k, buy food with mineral water, etc 6 Direct selling Vending

machine system Add to menu Distributing to retailers, wholesalers and resellers 7, Additional Recommendations & Reasons:

- Build more online distribution channels (wholesalers) - Lack of exclusive aquafina dealers

- Lack of B2C model 8 Appendices:

1 Appendix A: Features and Benefits:

Pure aquafina water is obtained from underground water sources and undergoes a thorough and closed treatment process Due to the measurement of pure water, it does not contain mineral components, but only H2 and O2 It has the effect of providing water, purifying the body, refreshing, but not carrying minerals in it Its advantages are that it is suitable for everyone including babies

The purity of aquafina can be felt with the naked eye Aquafina achieves absolute purity thanks to extraction from groundwater, treatment through reverse osmosis and ozone systems, and then sterilized by ultraviolet light Aquafina is a product of Pepsico Vietnam Company in accordance with the drinking water standards of the World Health Organization

2 Appendix B: Sample Ad:

TVC story board: Slogan: “Aquafina - More than purity” Contents: In the same journey to conquer the horribly long mountain climb Mr A is leading the race, but because he uses a lot of strength to get ahead, he is very tired, thirsty and loses a lot of water, A needs to be rehydrated immediately, so he takes it out from his backpack unbranded water bottle, was about to drink, was about to drink when he saw that there were residues, flies in it? Well, it's not just a strange thing Immediately after that, he found firewood and fuel to cook the water and worked hard to prepare a whole layer of water filter with clean sand and wood around just to get a sip of delicious, pure and clean water While working hard, he saw his opponent passing by, taking out a bottle of Aquafina from his backpack, a satisfied expression showing his fatigue, then this person also gave Mr A a bottle and the two of them together continue to play The advertising message appears and ends Meaningful: The majority of Aquafina's competitors and themselves navigate towards purity Because of that, make it unremarkable, uniform and mixed with competitors The destination is the purity of most types of water, making it difficult for consumers to choose, or it is easy to choose any water because it

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brings purity So with the slogan "More than purity", Aquafina water not only gives consumers a drink but a satisfaction, as well as in the advertisement showing that water has a certain prestige, bringing giving consumers peace of mind and confidence while food and drinking water safety scandals appear more and more “More than purity” is the concern from the company to the consumer, prestige also saves time (in the ad shows)

Color: Sea blue, white Audience: Travelers, sports enthusiasts 3 Appendix C: Major Factors and Trends in the Environment:

Vietnam's economic environment From 2002 to 2018, GDP per capita increased by 2.7 times, reaching over USD 2,700 in 2019, with more than 45 million people escaping poverty The majority of the remaining poor in Vietnam are ethnic minorities, accounting for 86% Vietnam is one of the countries with the highest growth rate in the region

Vietnam's resilience to cope with the Covid-19 pandemic is very high, although a serious impact on the economy is inevitable Vietnam is one of the few countries in the world that does not forecast a recession, but this year's projected growth rate is much lower than the pre-crisis forecast of 6-7%

As of 2020, about 88.5% of rural people have access to hygienic water sources, compared to 2000, this rate only reached 32% Demand for water is increasing day by day, while water productivity is still low, reaching only 12% of the world standard In addition, the vast majority of people and the Vietnamese economy are vulnerable to the effects of climate change

Thereby, it can be seen that investing in the Vietnamese market to develop the beverage industry is a good bait that most businesses want to win

Scientific and technical environment

The development of science and technology in the world gradually seems to be dominating the market, the introduction of many smart technology devices seems to be taking possession of people's minds This development brings a valuable benefit in human life, and at the same time the development of information technology has supported the management, production and strict control in business activities Technology becomes key in the company's business process

Socio-cultural environment Understanding that, Pepsico Vietnam always takes customers as the orientation to develop products Pepsico sponsors charity funds to resonate instead of promoting loudly, sponsoring the national team With Pepsico's products, it is aimed at the average needs of consumers and the physiological needs of people, so here the role of social status will not adversely affect customers

In addition, when people's income is improved, basic needs of life are met, people's needs also change to a higher direction In the past, when income was still low, eating and drinking only met basic needs to live, now people's needs are also gradually changing according to living standards They gradually take care of their health and form the habit of consuming healthy products, natural products and products that are beneficial for staying healthy This is an opportunity for the strong development of the pure drinking water market because today consumers are gradually shaping the habit of using pure drinking water instead of carbonated and alcoholic products with ingredients chemistry

natural environment has a favorable position for trade, convenient transportation for the distribution and transportation of products The flat terrain is suitable for the construction of many factory facilities to promote the production stage However, many places are polluted, especially water sources, so considering and choosing a place to supply water is extremely important for the company

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In addition, there is the problem of ocean plastic waste Vietnam is one of the ten countries in the world most affected by air pollution Water pollution is having serious consequences for the productivity of important industries and for people's health Population environment

Vietnam's population has grown to about 98 million in 2021 and is expected to grow to 120 million by 2050

Currently, 70% of the population is under the age of 35, with an average life expectancy of nearly 76 age, higher than other countries with similar incomes in the region But the population is aging rapidly A quarter of the middle class is forming — currently accounting for 13% of the population and is expected to increase to 26% by 2026 As the

population increases, the demand increases, especially the breath of life is very urgent today Products that are both healthy and convenient are essential => This is an opportunity for Pepsi to develop and expand the market

Political - legal environment Vietnam's business environment is more and more favorable due to its political stability and peace compared to other countries Political stability, no conflicts, political, ethnic or religious conflicts create opportunities for the economy to develop

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In the process of globalization, a series of countries have implemented the policy of opening their economy and accordingly the legal system is constantly improving and improving With the development of the country's economy, the legal system of Vietnam is becoming more and more complete and there are many barriers with stricter principles That poses

bigger challenges for PepsiCo Vietnam's leaders, which must be in line with the law and the company's development criteria The business environment in Vietnam is increasingly favorable, due to a very peaceful political environment compared to other countries in the region

4 Appendix D: SWOT Analysis: Strengths:

Health and Sanitation Awareness: Bottled water is a healthier solution as the number of diseases caused by polluted water is increasing, as well as their

serious consequences

Strong parent company backing: Aquafina has stronger brand equity with PepsiCo support PepsiCo has been a key player in Aquafina's rapid growth and wider reach

Successful Branding and Marketing Strategies: From the local point of purchase, to TV advertising, Aquafina has succeeded in promoting and building the brand

Strong distribution network: Aquafina has a very strong distribution network thanks to PepsiCo's supply chain Currently, this brand is present in small retail chains to large hotels and restaurants

Environmentally friendly packaging: With the introduction of ECO-FINA, Aquafina has developed 100% recycled plastic bottles that are highly environmentally friendly

Difference: Aquafina offers differentiated products such as flavored water and carbonated water Besides, Aquafina also launches many other products such as skin and body care

Haven't made a breakthrough: In terms of packaging, Aquafina does not have many differences compared to other brands

Opportunities (Opportunities): 14X

Distribution: Increasing product distribution is the best and only way for companies that sell bottled water to sell more Water is a universal need, so the farther and wider the brand is, the more sales Of course, production and shelf life are also a bottleneck in distribution

Raise awareness: There is increasing awareness about pure and hygienic water, which is a driving factor in the bottled water industry

Mergers and Acquisitions: Aquafina should seek to acquire and merge competitors to expand market share and reduce competition

Links and collaborations: Aquafina should seek more partnerships with hotels, restaurants, sports teams, etc to increase sales as well as promotions

Challenges (Threats): Water scarcity: This is a major threat to Aquafina as the government can decide to limit water supply to bottled water companies

Easy entry: The bottled water industry is a low capital intensive industry, especially at the local level, and as a result, it is easier for new businesses to enter the market

Ease of substitution: When it comes to bottled water, people are often not loyal to a single brand and thus sales depend on the retailer or the seller As long as the water is bottled and the consumer is thirsty, they will choose whichever brand is introduced

Competition from local businesses: This is also a hindrance to the development of the industry

5 Appendix E: Analysis of Individual (Major) Competitors:

Name: Dasani Products/services:

Product : Dasani purified water is a product manufactured by Coca-Cola Corporation It is an environmentally friendly and ultra-light product that can be twisted and compacted in the palm of the consumer's hand after use