final report topic factors affecting consumer behavior for pepsis carbonated soft drinks

4 1.3 Overview of carbonated soft drink product lines and the new zero-calorie Pepsi CHAPTER 2: AN EXAMINATION OF THE ELEMENTS INFLUENCING CUSTOMER BEHAVIOR IN RELATION TO PEPSI?’S CARBO

LIST OF GROUP MEMBERS

COMPLETION LEVEL EVALUATION TABLE

ID Assignment of duties Evaluation Signature

Huynh Muoi Luy 719D0082

Introduction Conclusion

Chap 2 (2.3.1) Suport script

100% Signed

Truong Minh Thi 719D0173

Chapter 2 (2.1) Chapter 3 100% Signed

Hinh Van Ty 719D0221 Chapter |

(1.1) Chap 2 (2.3.2) 100% Signed

100%

Signed

ACKNOWLEDGEMENT The first thing we want to say on behalf of the entire group is that this subject is important; it has provided us with a general overview of the worldwide business field This is a significant subject in university programs since it not only provides broad knowledge about the industry but also provides real data on business needs We have gathered a lot of lessons, positive experiences, and skills from this subject over the last few months

We'd want to thank PhD Le Thi Hong Minh, who taught and shared vital knowledge and experiences with us over the course of the study The professors’ knowledge and fact-sharing stories will undoubtedly lay the groundwork for us to be successful in our future occupations

However, preparing essay, report or presentations while researching will almost always result in errors As a result, we expect that our professors and classmates would comment and assess more so that we can progress in other disciplines Thank you for everything

COMMENTARY OF TEACHER

1.1 Introduction about PepsiCo and Suntory PepsiCo Vietnam Beverage .000 3

1.2.1 History and development process of PepsiCo 3 1.2.2 Suntory’s journey and the story that brought Pepsi to Vietnam 4

1.3 Overview of carbonated soft drink product lines and the new zero-calorie Pepsi

CHAPTER 2: AN EXAMINATION OF THE ELEMENTS INFLUENCING

CUSTOMER BEHAVIOR IN RELATION TO PEPSI?’S CARBONATED SOFT

2.1 An overview of the Vietnamese soft drink market 7

2.3 Key theory application, data analysis, and consumer "insights" .:ssecccseseere 9 2.3.1 Internal factors influence consumer behavior 10

2.3.1.6 Attitudes and Persuasive Communications 20 2.3.2 External factors influence consumer behavior 26

2.3.2.1 Group Influences and Social Media 26

CHAPTER 3: EVALUATE THE ANALYSIS RESULTS AND PROPOSE SOME NEW STRATEGIES FOR PEPSI IN THE NEXT 3-6 MONTH .ccsscssssssscssecsssecsersseessees 32 3.1 A general evaluation of Pepsi's existing products and strategy cssssrsseseeees 32 3.2 Proposing a new strategy for Pepsi in the next 3-6 monfhs -<« 35

REFERENCES 39

LIST OF TABLE

Table 2 Learning and memory

Table 6 Attitudes and Persuasive Communications

Revenue of key beverage brands in Vietnam from 2016 to 2019 8

INTRODUCTION Customer behavior is a subject that specializes in the study of psychological

as well as external objective elements that influence consumers’ purchase decisions, thereby assisting them in selecting items that are appropriate for their needs This is also regarded as a relationship between environmental stimuli and human cognition and behavior In other words, customer behavior encompasses people's thoughts and feelings during the consumption process, as well as the activities they take to eventually conduct a certain behavior, such as purchasing decisions, utilizing or disposing of specific products or services

With the outstanding development of the economy today, inter-country cooperation is steadily becoming more common, generating both opportunities and

obstacles Faced with this circumstance, multinational firms’ collaboration with local

enterprises has assisted developing countries like Vietnam in learning from experience, boosting their qualifications in various fields and areas, and making it easier for consumers to access international brands For example, in the sphere of

F&B, a slew of foreign brands such as McDonald's, Subway, Pizza Hut, Coca Cola,

Pepsi, and others have recently arrived in Vietnam Especially Pepsi, which has now become recognizable to people all over the world, including Vietnam, this brand is increasingly expanding its scope of activities globally and steadily building its place

in the hearts of customers

When we think of Pepsi, we think of a brand from a multinational firm that

is popular among young people and Vietnamese They not only provide a large choice of products at low costs, but they also continually update new trends, such as environmentally friendly packaging and products for clients who lead a healthy lifestyle It is partly because of this allure that we chose the topic "Factors Affecting Consumer Behavior Toward Pepsi's Carbonated Products" to provide an outline of the key to their success Furthermore, we want to understand more about the Pepsi brand, consumer psychology of carbonated soft drinks, and then we will suggest some Pepsi's new development strategy for the next 3-6 months

The report is divided into three main chapters:

Chapter 1: Brief overview of Pepsi brand

In this chapter, we will provide an overview of PepsiCo Corporation and Suntory PepsiCo Vietnam Beverage Corporation From there, we will have a general understanding of the history of the birth and the story that introduced Pepsi to Vietnam

Chapter 2: An examination of the elements influencing customer behavior

in relation to Pepsi’s carbonated soft drinks

This is the most essential chapter; our team offered an overview of the soft drink market in Vietnam, the main Pepsi customer segments, then chose a few theories and investigated them in-depth elements influencing consumer behavior of Pepsi products through interviews

Chapter 3: Proposed _some_new_strategies for Pepsi in the next 3-6 months

In this section, our team provides general remarks on customer behavior from each interview in order to identify solutions to overcome or recommend new initiatives for Pepsi in the next 3-6 months

Picture 1 Pepsi Brand

Source: https://www.albawaba.con/

CHAPTER 1: BRIEF OVERVIEW OF PEPSI BRAND 1.1 Introduction about PepsiCo and Suntory PepsiCo Vietnam Beverage PepsiCo is a worldwide fast-moving food and beverage (FMCG) corporation with operations in over 200 countries, with the most prominent product being carbonated soft drinks, which were invented by a pharmacist named Celeb Bradham near North Carolina The company, originally known as "Pepsi-Cola," was founded in 1898 and is headquartered in Buy City, New York Suntory PepsiCo Vietnam (SPVB) was founded

in April 2013 with 100% foreign investment It is a joint venture between Suntory Group (Japan) and PepsiCo (USA)

After many years of being officially present in Vietnam, the company has established a leading position in the beverage market, and they are always proud to be a patt of the lives of all customers, as well as being influenced in various ways, particularly among young people Suntory PepsiCo Vietnam aspires to not only earn large sums of money for businesses each year, but also to provide consumers with high-quality beverage goods and to become an environmentally conscious brand These are also aspects that have contributed to PepsiCo's worldwide success, giving long-term benefits

to society and shareholders; it is because of these long-term development goals that PepsiCo has become one of Vietnam's most prestigious brands in recent years Below is the contact information and logo of Suntory PepsiCo Vietnam:

e The head office is located on the 5th floor of Sheraton Hotel (88 Dong Khoi

Street, District 1, Ho Chi Minh City, Vietnam)

1.2.1 History and development process of PepsiCo

A pharmacist named Bradham, born in 1867 in Chinquapin, Dublin County, North Carolina created an easy-to-digest drink called "Brad Drink" in 1886 using sugar,

vanilla, carbonate water, and cola nuts He began testing and selling this water in his neighborhood Bradham was about to grow his firm in 1898, so he renamed the drink

"Pepsi-Cola" and gave it the logo title

Bradham officially registered a trademark with the United States Patent Office and founded the Pepsi corporation in 1902, with its headquarters in Purchase, New York state, USA Advertisements for Pepsi-Cola began to appear in New Bern's weekly magazine From there, Pepsi-Cola grew in popularity, the company expanded, and Bradham began purchasing buildings to convert into factories for the beverage During World War I, the Pepsi-Cola Company declared bankruptcy and was purchased for $30,000 by Craven Holding Corporation of North Carolina Roy C Megargel later purchased the Pepsi brand from Craven Holding Corporation for $35,000 and renamed it Pepsi-Cola Corporation Pepsi-Cola Corporation declared bankruptcy for the second time in 1931, after years of losses Chairman of Loft Industries Charles Guth purchased Pepsi-Cola and began selling it in his stores The following are a few historical milestones associated with this brand that we can recall:

e 1934: Pepsi-Cola skyrocketed sales in the US market

e 1935: Pepsi-Cola moves its headquarters to Long Island City, New York

e 1941: Expanding to the whole of Europe

e 1947: Penetrating to the Philippines and the Middle East

e 1948: Headquarters moved to downtown Manhattan

e 1965: Frito-Lay Corporation was acquired by Pepsi-Cola

e 1988: Pepsico acquired Tropicana and celebrated its 100th anniversary and changed to a new logo with a sphere with 3 colors blue, white, red on a cold blue background — this is also the worldwide Pepsi logo

PepsiCo is presently the world's largest and fastest-growing food and beverage corporation, with over 200 locations worldwide and annual sales of around $60 billion 1.2.2 Suntory’s journey and the story that brought Pepsi to Vietnam Suntory Holdings Limited and PepsiCo, Inc launched the strategic beverage alliance Suntory PepsiCo Vietnam in 2013 to deliver worldwide standard products to Vietnamese customers SPVB's value standard is to "sell only products that we are proud

of " and it is because of this commitment that the company has grown to become one of Vietnam's largest beverage companies Here are some important dates to remember:

e 12/12/1991: Sp.Co and Marcondary - Singapore entered into a joint venture and established the International Beverage Company (IBC)

e 1992: Hoc Mon Factory was built

e 1994: Vietnam lifts embargo from the US PepsiCo immediately entered into a joint venture with the International Beverage Company (BC) and officially entered the Vietnamese market with the first two products Pepsi and 7up

e 2003: International Beverage Company (IBC) completed the change of capital structure with 100% ownership owned by PepsiCo and was renamed PepsiCo Vietnam International Beverage Company At the same time, launching many other beverage products such as: Lipton Ice Tea, Twister, Sting, Aquafina

e 2004: Expanding production and business model in Quang Nam by purchasing and merging Dien Ban factory

e 2005: Become the leading beverage company in Vietnam

e 2006: Snack Poca - the first Food product launched by PepsiCo Vietnam and loved by many consumers

e 2007: Soy milk product was launched

e 2010: PepsiCo continues to invest for the next three years in Vietnam with 250 million USD and operates the factory in Can Tho Has been considered an important milestone for PepsiCo in the Vietnam market

e 2012: PepsiCo continued to buy a factory in Dong Nai and PepsiCo became the company with the largest factory in Southeast Asia located in Bac Ninh

e 2013: Suntory Holdings Limited and PepsiCo, Inc cooperated to establish Suntory PepsiCo Vietnam and launched new products, Olong Tea+ Plus and Mountain Dew

1.3 Overview of carbonated soft drink product lines and the new zero-calorie Pepsi product line

PepsiCo is a multinational corporation that controls the majority of the beverage market in Vietnam Carbonated beverages are one of the segments that the corporation,

as well as young consumers, pay close attention to Pepsi-Cola, a long-standing but very modern and outstanding carbonated product line with a combination of brands and well- known music groups, is the fastest-selling product line on the market 7Up Revive, a mineral-replenishing beverage when exhausted, is followed by 7Up, a carbonated beverage with a natural lemon flavor that provides you a cool and pleasant feeling Mirinda, a strong carbonated drink that provides the drinker an explosive feeling, comes

in third place, followed by Mountain Dew, a carbonated beverage with a strong citrus flavor that offers the drinker a feeling of refreshment and exhilaration.Almost all of Pepsi's carbonated water products have their own distinct characteristics, which is one

of the reasons Pepsi has a bigger market share in our country than rival Coca-Cola The most well-known product line in the carbonated beverage market is Pepsi Cola This company has recently launched a zero-calorie Pepsi product line, which is unlike anything else on the market at the time They recently invented a new flavor for

it, Pepsi Zero Calorie Lemon Overall, this is a highly distinctive product, from the box

design to the taste within With a combination of cool lemon taste and refreshing gas, the zero-calorie lemon-flavored Pepsi is put on a striking and personal matte black shirt, the color changes from traditional blue to black, and this product also contains no calories, making it very suitable for people who care about their health This product line was created since today's customers are increasingly concerned about their personal health and try to avoid using dangerous items Pepsi has investigated and developed a sweet beverage product including aspartame and sucralose, two highly low-calorie sweeteners that allow you to effortlessly control the quantity of sugar and calories absorbed into your body Pepsi thinks that by introducing this product line, it will be able

to meet the needs of customers and dispel the myth that drinking soft drinks increases the risk of cardiovascular disease and osteoporosis due to the presence of phosphoric acid and high levels of phosphate

CHAPTER 2: AN EXAMINATION OF THE ELEMENTS INFLUENCING CUSTOMER BEHAVIOR IN RELATION TO PEPSI?’S CARBONATED SOFT

DRINKS 2.1 An overview of the Vietnamese soft drink market

In recent years, the beverage sector in Vietnam has been on a strong trend, with many enterprises owning a variety of soft drinks ranging from mineral water to teas and,

in particular, soft drinks Vietnam ranked 24th in the world in terms of US beverage

consumption in 2020, with revenue of more than $5 billion USD, a 1.7% decrease from

2019 The beverage industry in Vietnam currently has a The drive gauges the country's development speed, favorable demographics, and the rapid development of the foodservice industry considerably enhance customer demand Furthermore, Vietnam has

a young population, with the age group 15-54 years old accounting for more than 62.2%; this age group is highly valued for its beverage consumption demand

Furthermore, carbonated soft drinks account for 23.74 percent of the beverage market share in Vietnam This industrial expansion is now being led by two multinational competitors, Coca-Cola and PepsiCo, which dominate the market with a 64 percent market share, followed by two domestic competitors, Tan Hiep Phat and Trung Nguyen Original There are over 2000 indigenous and foreign beverage production plants in Vietnam The rise of this industry is particularly visible from 2015 to the current year, with an annual growth rate of 6% The graph below depicts the sales of major beverage brands in Vietnam from 2016 to 2019 We can see from the graph that:

Revenue of major beverage brands in Vietnam

©» In 2016 @ In 2017 » In 2018 ©» In 2019

Picture 3 Revenue of key beverage brands in Vietnam from 2016 to 2019

Source: https://venusa.us/

The Suntory PepsiCo joint venture earned more than VND 18,300 billion in 2019,

an increase of more than 14 percent over 2018 PepsiCo outperformed with a market share that was more than double that of Coca-Cola and Tan Hiep Phat In April 2013, PepsiCo and Suntory formed a joint venture, which helped this company's product line outperform Pepsi has had to constantly adapt and update new product lines in step with customer trends, as well as have vital marketing tactics, to be successful as today is a long process Suntory PepsiCo, a joint venture between PepsiCo of the United States and Suntory Holdings Ltd of Japan, led the market with revenue of VND 18.3 trillion ($793 million), up 14 percent year on year, followed by Coca-Cola with 9.3 trillion VND The future growth rate of Vietnam's beverage market is highly regarded Companies will struggle to cope with increased competition if they do not find ways to innovate and diversify their products in the future This is the time when communication methods will blossom in order to entice customers to use their products As a result, understanding the market's shortcomings and strengths is critical for developing an effective campaign for your company The year-end market of Vietnam's beverage sector has never stopped being hot; this is both an opportunity and a difficulty for those who wish to enter this industry

2.2 Pepsi's primary customer segments

Since entering the Vietnamese market - a country with more than half of the population being young people, Pepsi-Cola has determined its mission lies in this class

- the age that is always devoted to passion; they love sports and are especially proud of the national football team In addition, they also like to discover new things, like to experience themselves and this is a favorable condition for Pepsi-Cola to approach and develop in Vietnam

When choosing a vibrant customer base, Pepsi has favored its products with the qualities (from flavors to marketing methods) necessary to create an impressive moment that goes deep into the hearts of customers With a rich sweetness and a large amount of gas, Pepsi-Cola gives consumers a new feeling - a strong taste that is felt to the tip of the nose like burning enthusiasm, bringing refreshing and new sensations And it is this that has met the psychological preference of most teenagers Besides, young people often have the habit of sipping food and enjoying drinks at the same time so that they don't feel bored when enjoying food, and this is a feature that Pepsi-Cola focuses on exploiting

to create products that meet this need of young consumers

In the Vietnamese market, Pepsi has become a big player in the carbonated drink industry, but its attraction has always remained in the hearts of young consumers to this day In Vietnam, it can be said that the style feature that Pepsi is pursuing is to satisfy the passion of young people Therefore, the price of the products as well as the design or quality offered by Pepsi are aimed at the needs of young people

Currently, more than half of Vietnam's population is under the age of 30, which is enough to prove that young people are an extremely potential market segment for businesses Pepsi seized this segment to launch the zero-calorie Pepsi and was extremely successful when it was accepted by young people

2.3 Key theory application, data analysis, and consumer "insights"

This is the most crucial section of this research In this part, we will use the theories we have studied, then conduct interviews with Pepsi consumers from which

we may draw general conclusions for each content, and finally provide assessments and detailed ideas for the PepsiCo corporation to enhance even further The basis of this research is that we can clearly grasp customer psychology, both internally and outside, in order to develop appropriate marketing tactics We will separate the evaluation and recommendations in chapter 3, this part just focuses solely on data analysis,

In terms of the interview form, we performed an online interview through Google Meet, however, in order to make the results more complete and relatively accurate, we also sent the survey form to the customer in parallel As a result, throughout the study, our results include both customer opinions and conclusions expressed in percentages

2.3.1 Internal factors influence consumer behavior

In this part, we examine internal elements to understand how they influence consumer behavior This is a difficult aspect because it is all about the customer's psychology, thoughts, and attitudes However, by attentively following the theories provided, we have identified their inner world quite effectively The detailed analysis results are as follows:

near the bus sound? Pharr the stop? * | standard

lines?

A good Strangely, the phrase that

package was captures the

Lê rough before it trend, such as The ene was smooth I "Pepsi lemon |The sound of |The lemon dimensions Thi believe it's fairly flavor the bottle cap |flavor is have not Thanh similar to simply without popping and pretty been Thanh adding the words |calories, the smell of it |distinctive altered

"no calories." I optimum

was drawn to the |refreshment,

hue burst with

Rap Việt"

10

visually stunning Th Textured

In terms of color, I d © ti ( The smell |designs are thought it rather i hebh emen"! Summer music, Jisn't too more impressive T8 nề la d the holiday bad, and it's }comfortable because, in hall ot ms ane’ season easy to to hold than general, it was the Ce significance or drink smooth first time I saw a designs beverage product

in such a dark

shade of black

This product line

The hue of the has 1 very

lemon calorie-free " emon In th Pepsi is black with | Images that In the summer, | when I 2YOI, 30 way that pan le same

a hint of lemon - are vivid and enjoy the drink it, I 1: |lany other green, which have catchy coolness feel soft drink impresses me and |slogans ` interested roduet makes it easy to and even i f P

that 1t has more gas, making it more

II

The main color

tone is black

rather than blue,

which is a

distinguishing

feature The What could be

combination of more delightful

black and green ' & Igotitto |All clients

ATA It's very cool |than the sound |“ mm Tran Lé /has a lemon - 1n my of cool ice give ita ¬ will find it Thịnh |flavor Pepsi and - opinion -= coupled with try; it's not |very - its collaboration - sweltering - too sweet |convenient with Blackpink summer?

will have a pink

imilar to the logo In my own taste, I

A TA sunt opinion, it's |Feel the ion The same

Lê Liên |of other Pepsi as normal as jextreme prefer it as prior Long products but the - any other coolness over - goods problem is the |social class ordinary -

color of that Pepsi Pepsi

can, it enhances

the Pepsi logo

Its logo is similar

to the logo of

Lita Thanh other Pepsi prominent for Not 190 Maybe it's Lighter Right size,

products, but the refreshing than normal |neat Long problem is that the myself

color of that Pepsi

12

can enhance the

Pepsi logo

Concerning the

logo of the zero-

calorie Pepsi

product, I notice The taste of

that it is spherical zero-calorie It s most Xưnpc |: x likely

Hồ Thị ` |in shape and has It seems Experience its |P€PSI IS dropped Thùy three colors that normal to me |flavor sweeter thicker than Duong |appear quite than that of other current and other products elegant In terms products

of color, matte

black makes me

feel more opulent

- The taste of

Concerning the : - When it's hot và —|zero-calorie

‹ logo, I believe it outside Pepsi is

Tran ~ NTL: remains the same; |Make the city - - nothing beats a |sweeter _ P Really

Kha Nhi |the color is black, |come alive the style is cool cold can of Pepsi than that of convenient

epsi other and bold products

e The design is quite beautiful and eye-catching

e Black and blue colors are very attractive and visually appealing

e Looks strange, the rough packaging is easier to hold than the plain packaging even though the size has not changed

e Good and trending slogan

@ The ads are fun because the bottle cap is popped and brings a lively atmosphere as well as the sound of summer and festive season

** Tn terms of taste, most of them feel that:

e It's more deliciously

e Lighter than normal Pepsi

e The lemon flavor is quite unique

e The taste is not too unpleasant and quite easy to drink

13

** Regarding the product display area, they noticed:

e The shopping space for Pepsi products is attractive because of its central location

e Products placed at eye level will attract them more than high or low areas

We may conclude that Sensory Marketing is critical since it seeks to develop an emotional link between consumers and products, services, or brands Marketing involves interacting with clients’ emotions, but approaching them through their five senses involves directly accessing their emotions The qualities, attributes, or even the arrangement in the sales area that touch the five senses of customers will encourage them

to buy more

2.3.1.2 Learning and memory

Second, Learning and Memory, by showing our customers a Pepsi ads campaign called "Nothing Gets your way Home," we applied the classic condition theory - behavior is a result of creating conditional reflexes, which is the continuous growth and repeated link to see how it affects them

6 Usually, which position will | 7 Do you feel the space to buy Pepsi attract you more about Pepsi | products attracts you when you just products? walk into that area?

Thanh Thanh Just at eye level I think it's normal, nothing special

Nguyễn Mai |For me, convenience stores are_ | Yes, because it is located in the center,

Linh easier it is quite attractive

Huynh Thi ;: For me, face-to-face is probably I think yes because I am also a fan of |more accessible no matter what Thanh Hoai product it is cv Pepsi products

A of If the call is attractive, the Pepsi brand

Lé Tuong Vy |Looking down from above will attract me to buy more

Tran Lé In my opinion, it's from left to |I think the display and shopping space Thinh right are not very impressive to me

I mean maybe yes, because the large

Lé Lién Long |Maybe when I face it space will create a comfortable feeling

when shopping Long Thành Central of area Small space, not right in the center

Ho Thi Thuy Tall places like buildings I think their product display space is Duong very attractive to me

14

I mean no, because I just go in and buy

my favorite products and don't care about the shopping space

I think it's in a supermarket or a

ei IS IN place with a lot of people

Table 2 Learning and memory

Now the result that we noticed was that they were typically too uncomfortable to watch an ad too much, but on the positive side, they were actually interested to see the commercial, because a lot of the rappers who came along, and that Pepsi had the slick, humanist and meaningful message Apart from that, we could see that everything that was difficult after we drank Pepsi could be done in this commercial, but this accidentally this detail did something positive and real for the viewers, and it also applies to Truth Effect - the content that we've learned about

So one can see that the advertising messages are concise, understandable, compelling and that if they are still repeated, again and again, they will automatically enter consumer awareness and memory

2.3.1.3 Motivation and affect

In this area, my group is interested in Maslow's hierarchy of requirements and Drive Theory, which explains the biological state of the body when it lacks something it needs

to survive Based on the findings of the interviews, we determined that Pepsi products met two demands of consumers: the biological need for refreshments and the safety need for a product In this scenario, weight reduction is considered harmless or good to the body

3 Do you think

2 Do you often get

1 How do you feel after annoyed when you every problem after watching this ad see the same ad too drinking Pepsi has campaign? manv times? a solution like in

any Tames + this ad?

Lé Duong |Good, Interesting because

Thi Thanh |there are many rappers Yes Yes

Thanh participating

Nguyễn Mai Linh Humanistic message " uncomfortable No Huynh

Thi Thanh |Feeling emotional Yes Sure