Pr Strategy Of Pepsico Beverage Brand In Vietnam Market.pdf

Consumers are familiar with Suntory PepsiCo Vietnam, which has beverage goods branded PEPSI, mainly Pepsi-Cola goods and is a well-known firm in the market.. Despite the fact that Pepsi

MINISTRY OF EDUCATION AND TRAINING

HO CHI MINH CITY UNIVERSITY OF FOREIGN LANGUAGES - INFORMATION TECHNOLOGY FACULTY OF BUSINESS ADMINISTRATION

PUBLIC RELATIONS

wilics

RESEARCH PAPER

SETTING UP A PR PLAN FOR “PEPSICO”

Advisor : Ngo Van Binh Group name : Unicorn Group members : Ngo Thi Thuy Dung - 17DH489142

Diep Chieu Luan - 17DH489155

Vo Dinh Tinh — 17DH489220

HCMC - June, 2021

ABSTRACT Public Relations (PR) is becoming increasingly vital in today's economy for all firms worldwide Activities to enhance brand image and drive the development of the sales system, acting as a link between enterprises and customers With a tropical monsoon environment, bottled beverages are an essential drink for the Vietnamese people As a result, the Vietnamese beverage market is one of the fastest-growing, with numerous significant local businesses as well as foreign corporations Consumers are familiar with Suntory PepsiCo Vietnam, which has beverage goods branded PEPSI, mainly Pepsi-Cola goods and is a well-known firm in the market People frequently associate the Pepsi brand with youthful and exuberant energy Despite the fact that Pepsi Company has been in business for over a century, the young vitality penetrates the whole firm, from the young green tint of the logo to the once-famous phrase "the choice of a new generation." To Pepsi's superb youth management team's eye-catching design items, fashion for young people, youthful and vibrant advertising campaigns, young and renowned brand ambassadors, and aggressive commercial strategies Professional and logical public relations operations contribute significantly to the company's success The creation of more and more beverage enterprises is also a motivation to strengthen beverage market competitiveness and increase public relations operations After learning about PEPSICO Vietnam's activities and public relations, and appreciating the importance and efficacy of the activities, the author picked the topic "PR strategy of Pepsico beverage brand in Vietnam market" for study.

TABLE OF CONTENTS

LIST OF ABBREVIATIONS FMCG Fast Moving Consumer Goods

LIST OF TABLES AND F Table 3 Í The differences between the brands ch re 12 (EU KV (L0) 13 YEigure 1 Í Revenue of major beverage brands in Vietnam - cccccc<<552 2 Figure 1 2 Top 1 most unreliable beverage company in Vietnam in 2020 2

Y Figure 2 1 CocaCola vs Pepsi n Cooporating Fast-food brands - 8 YFigure 3 1 Schedule for posting conten(s on social media eee 16 210100) 8/)0)1 na L7 Figure 3 3 Detail cost estimate ccc 2 Q1 2111011121 11111111111111 1111116111111 11H khen xu 18

CHAPTER 1: ORGANIZATION INTRODUCTION

1.1 General Company

Pepsico is a multinational food and beverage Fast Moving Consumer Goods (FMCG) business with over 200 countries of business Few people know that Pepsico was founded in 1898, with headquarters in Purchase City, New York Suntory PepsiCo Vietnam was founded in April 2013 with 100 percent foreign capital, as a result of a joint venture between Suntory Group (Japan) and Pepsico (USA) In 2016, the PepsiCo Group had net sales of around $63 billion, with important brands such as Frito-Lay, Gatorade, Pepsi-Cola, Quaker, and Tropicana PepsiCo's product portfolio encompasses a diverse range of beverage goods and consumer favorites, with a total of 22 brands producing about $1 billion in yearly revenue

Pepsico Vietnam's goods have been acknowledged 15 times with the title of

"Vietnamese High-Quality Goods," proving an irresistible draw to users SPVB was once named one of the top five global FMCG firms in Vietnam with the best working environment in 2017, 2018, and 2019; and one of the top three prominent enterprises in Vietnam's beverage sector in 2017, 2018, and 2019

1.2 Market performance

1.2.1 Sale Value

In 2019, this group of five companies generated total revenues of more than VND 40,400 billion or over $1.7 billion, reflecting a gain of around 13% over 2018 Over VND 18.300 billion was earned by the Suntory PepsiCo joint venture in 2019 This is a 14- percent increase over 2018 With combined income of about 9,000 billion dong, Coca- Cola and Tan Hiep Phat trail have grown by almost 10 percent Suntory PepsiCo has sufficient brands for the competition with Coca-Cola: Pepsi-Cola or Fanta- Mirinda (carbonated drink); Aquafina-Dasani(purified water), and Sting-Samurai-Revive- Aquarius (energy drink) In addition, with the support of Suntory a joint venture under the TEA+ name, the firm went into bottled tea Suntory's market share is second only to Tan Hiep Phat, therefore a joint venture between the two competitors can broaden the gap between them.[ CITATION Tral \I 1066 ]

Figure I, I Revenue of major beverage brands in Vietnam

According to a survey conducted by VnReport in 2020, Suntory PepsiCo was named the "Top | most prestigious non-alcoholic beverage business in Vietnam in 2020."

As the company enters its fourth year of acquiring this distinction, it reinforces its position as the beverage industry's market leader while also emphasizing the theme "In Vietnam - Together with Vietnam - For Vietnam." That's been kept for many years Figure 1 2 Top 1 most unreliable beverage company in Vietnam in 2020

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Source: suntorypepsico.vn

1.3 Customer Analysis

1.3.1 Customers Profile

Since the beginning of importing goods into the Vietnamese beverage market, PepsiCo has determined that the end-users of Pepsi-Cola beverage products are teenagers (13-19 years old) )

Teenagers are active, like to participate in outdoor activities and exercise a lot, so Pepsi-Cola is considered a product to help cool down, "smash thirst" as well as compensate for the amount of water consumed Besides, young people have a hobby of eating and drinking - this is a feature that Pepsi-Cola focuses on exploiting In addition, Vietnam has a young population, so a large number of customers in this age group is a favorable condition for Pepsi-Cola to approach

Along with the main target of teenagers, Pepsi-Cola's products are increasingly expanding to young customers (<13 years old) and customers over 19 years old The reason for choosing this customer is because PepsiCo understands the psychology of drinking soft drinks and the feeling of excitement when the gas spreads and rushes into the nose The reason for this comes from: the fear of obesity of the group of parents under

13 years old, and the fear of diabetes of the group of customers over 20 years old 1.3.2 Target Market

Pepsi's marketing strategy in the 1950s was directed at young people, who dubbed themselves the "Pepsi Generation." Except for the young market, the corporation sacrifices all forms of marketplaces At the time, the tagline was "Be Sociable, Have a Pepsi" It was Pepsi's first campaign to target the young market, and it helped make Pepsi renowned in the decades that followed PepsiCo has worked hard to be younger, more appealing, and more relevant to customers than its competitors, and this consistent strategy has helped Pepsi-Cola products expand and maintain a recognizable image, which are critical foundations Until now, PepsiCo Vietnam's Pepsi-Cola products have maintained their target demographic of youthful and dynamic customer regardless of geography

1.4, Direct Competitors

Referring to a direct competitor to Pepsi, the first and perhaps only name can only

be Coca-Cola No matter what market ,or country it goes to, Coca-Cola always poses a real threat to Pepsi's market share and profits

3

In the Vietnam market, although it was not until February 1994 that Coca-Cola entered, compared to Pepsi, which had been present since 1991, but Coca-Cola also quickly created trust among consumers The distribution network was formed later, however, Coca-Cola was smart when choosing retail points and peddlers in each alley as the focus While Pepsi hits young people with the slogan "The Choice of a New Generation", Coca-Cola hits the older customers, who appreciates deep and emotional traditional values Coca-Cola, like Pepsi, uses promotions to respond to the World Cup and tap into the football-loving attitude of Vietnamese Promotions to promote both sides' pictures are always vibrant and magnificent.

CHAPTER 2, RESEARCH FOR DEFINDING PR PROBLEM

Pepsi released a new slogan in 2020, “That's What I Like,” commemorating two decades since the company previously revealed the phrase in the United States The beverage behemoth was formerly recognized for catchphrases like "The New Generation's Choice" and "The Joy of Cola."

Pepsi's current products are very diverse and rich with more than 500 types of products and are present in more than 200 countries around the world Particularly in Vietnam, Pepsi has many product brands such as Pepsi, Aquafina bottled mineral water, Sting energy drink, Tropicana Twister orange juice, Lipton instant tea, Olong Tea+, other carbonated soft drinks Mountain Dew, 7Up Revive, and many other beverage brands Besides, Pepsi also produces snack products under the brand name Poca Thus, Pepsi's strong point is still focusing on carbonated soft drinks

Based on its position as a global company and most of its products are available all over the world, and are well received from customers With a youthful and dynamic image, Pepsi's advertisements are also very popular focus on the activeness, energetic images of "Next Generation" To do that, Pepsi has combined and borrowed the images

of famous people as brand ambassadors, influential people to influence its young customers The most recent is the collaboration between PEPSI X BLACKPINK

In Vietnam, Pepsi has also successfully promoted its brand through the Pepsi Salt campaign The communication campaign with the message "Each person is a grain of salt

to make Tet more delicious" has created a great resonance in the advertising industry, and won enthusiastic reception from customers Especially, for the young versions, this is considered a completely new and unique experience that Pepsi brings

Pepsi is gradually atming to create a story in each of its campaigns It can be seen that Pepsi's recent promotional campaigns not only have a young and dynamic trend but

also create a meaningful purpose to spread to the community All were successful and received the feedback and trust of Vietnamese customers This is considered a strong point that Pepsi has built itself in recent times

Besides, Pepsi also focused and increased brand awareness by promoting the effect

of outdoor billboards Pepsi has made its way into television by sponsoring the "Super Bowl" program This further increases the influence of Pepsi all over the world in general and in Vietnam in particular

2.2 Weaknesses

The biggest weakness that can be pointed out here is the customer target that Pepsi targets Pepsi is positioning its brand as young, dynamic, and full of energy, so the customers that Pepsi is focusing on exploiting young customers who belong to the "Next Generation" As a result, Pepsi is narrowing its customer base

Besides, brand names are also weak points for Pepsi While the company name in Vietnam is Suntory PepsiCo, Pepsi owns many other product brands Having too many product lines will make it difficult for customers to distinguish which are Pepsi products Moreover, different branded products will reduce customer's brand awareness of Pepsi Thus, having multiple brands is both a strength and a weakness for Pepsi

The next weak point, Pepsi's products do not care about the health of customers Pepsi offers soft drinks, energy drinks, carbonated drinks, and the main ingredients of these drinks will adversely affect the health of customers However, Pepsi still has healthy products like Tropicana Twister orange juice, but with such a product, it is not enough

On the other hand, the consumption habits of customers towards the use of carbonated drinks are still limited Most Vietnamese people will use coffee or milk in the morning, even they do not have the habit of using carbonated drinks with main meals Thus, Pepsi has no product that can meet or become a daily consumer product

Another weak point of Pepsi is that most of the advertising is focused on young people This can be seen as a strategic goal of Pepsi to properly affect its customers, but it will be a limited thing when it can only affect the target customers and the other potential customers are not affected

2.3 Opportunities

Pepsi's first opportunity in the Vietnam market is to expand the scope of the target customer group, from focusing and young customers, it is necessary to expand and influence the family group of customers family or office customers

Based on the current situation, customers are tending to pay more attention to their health Pepsi should research, exploit and develop more non-carbonated water products

or healthy products Nowadays, people tend to pay more attention to health issues, advanced science and information spread on the internet very quickly, customers can easily search for information related to carbonated water Therefore, juice products can

be considered as the perfect choice to develop for Pepsi Therefore, this will be a great opportunity for Pepsi to research and launch healthy drinks such as juice, milk, or milk to drink

Pepsi should create a product line that can become a choice for regular and everyday use by customers Beverage products for children and the elderly are also an opportunity for Pepsi to develop

The combination with fast food brands such as Taco Bell, KFC, Pizza Hut, etc also contributes to making the Pepsi brand more and more known to more people, occupying more market share

Based on the current situation, customers are tending to pay more attention to their health

Pepsi should promote brand promotion in the direction of combining youthfulness and dynamism with sharing stories or spreading good things to the community, this will help improve brand value, brand awareness and potential customer groups

2.4 Threats

The first risk Pepsi is facing is competition from its biggest competitor, Coca-Cola This is considered the biggest competitor that Pepsi needs to face from the past to the present, the battle between the two "big guys" in the carbonated beverage industry has never subsided

The demand and habit of using traditional goods such as coffee, tea, sugarcane juice, etc of Vietnamese people are very high, making it difficult to change these habits, and direct customers to use Pepsi's products as a beverage to satisfy their demand

Pepsi is focusing on using the influence of KOLs to influence its audience This will bring great risk if KOLs who are brand ambassadors encounter personal problems, scandals, which will seriously affect the brand's image Customers' trust in Pepsi will also decrease, customers will look for other brands to use, even Pepsi will be boycotted along with KOLs

The products Pepsi is providing have not paid attention to environmental protection issues Use plastic bottles, cans to store products, plastic wrap on the product body, these are materials that are difficult to decompose The use and discharge of a large amount of these substances into the environment for a long time without proper treatment will cause serious impacts on environmental and natural problems

Pepsi hasn't had a campaign that engages the community for a long time This will

be the point where it will be difficult to retatn customer loyalty Customers tend to be more interested in community benefits Therefore, it is necessary to build a community campaign to enhance brand value as well as retain customers

Pepsi's popularity in cooperation with fast food brands is still relatively low compared to Coca-Cola This will be a threat when the competitor's brand awareness becomes dense, customers will tend to use the competitor's products Then, brand position and revenue will be significantly reduced

Figure 2 I CocaCola vs Pepsi in Cooporating Fast-food brands

CHAPTER 3: PLANNING AND ACTION PROGRAMMING

3.1 Target audience (Target Public)