Marketing strategy for big cola vietnam

LE PHUONG ANH NGUYEN THI YEN NGOC Marketing strategy for Big Cola Vietnam MASTER PROJECT MASTER IN MARKETING AND ADVERTISING ah Tutor’s Name: SERGE BYWALSKI Ho Chi Minh City _ (2013) DECLARATION We declare that this study does not incorporate without acknowledgement any materials previously submitted for a degree or diploma in any universities; and it does not contain any materials previously published or written by any person except the reference is made in the - text Signature of th Le Phuong Anh Master of Marketing and Advertising 24L 0i nnna Signature of the student Nguyen Thi Yen Ngoc Master of Marketing and Advertising ACKNOWLEDGEMENT This project would not be possible without valuable advice, assistance, cooperation and encouragement from a number of people We would like to acknowledge their help and support The most important individuals have been our tutor, Mr Serge Bywalski and Professor Alain Van Den Eynde, who gave us guidance and professional advices to complete our work Moreover, we would like to express our appreciation to Mr Nguyen Thanh Tam, marketing director of AJE Vietnam, who has supported us in sharing information and some data of Big Cola so that we could have more knowledge of this brand out of what we can find ourselves We also would like to give a big thanks to Solvay Business School Vietnam and Ho Chi Minh City Open University and all professors who have lectured and shared valuable practical experiences during the MMA program Last, but not least, we wish to thank our family members for their love, assistance and encouragement during the time we this project understanding, TABLE OF CONTENT | Z0) EXECUTIVE SUMMARY INTRODUCTION 4495564665565666 | n4 14 ÂN ng 1.1 Overview about AE( .- ng ng hr thnHhnhhg. - «se 1.1.3 Product portfolio of AEJ in Vietnam 1.1.1 About AE! glObal - «+ 1x1 TH kh nh ng 3n % Ô 'hUN (ng I0 ng 21 ng - SH HH 1.2 Overview about Vietnam Soft Drink Market sen 1.2.1 The Macro-factors in Vietnam from 2009 to 2015 01089838 -cc 1.2.2 The Vietnam Soft Drink Market . Hành skt 101011 kg ng HT ng ng HH 1.2.3 Competitor aniaÌySÏS BIG COLA STRATEGY AND ANALYSIS 2.1 Big Cola targeting, positioning and main different attributes sàng HH HH HH HT TH 1h 2.1.1 Marketing Segmenit HH 2.1.2 POSitÏOÌE HH HH 0001 K01 ng ng n4 ki n0 00401 104 10kg Sky 10 VY xi àaỖỖỖ 'Ã-19I3 3s: .-.- Ốố 10 11 km HH 2.1.3 Main different attriDUf©S sgk ng HT HH tt ác cán HH HH 2.4 Unique Selling PropOsÏftÏOn 777 "PB Š /F li (a2 si N1 phenzve 11 74189014 12 2.5.1 2010 aCtiVỈTÏ@S cung 2.5.2 2011 aCtiVỈtÏGS . 2.5.3 2012 aCtÏVỈẨÏS cọ Hy n4 tr th 11 0006119006 90808809190 0114 15 H000 8018 17 ng Họ nọ RECOMMENDATION rerre TÔ -.-rrrrrrrrrrrreerre HH 3.1 Marketing Obj@CtiVeS °Ehmn co 19 20 nh 21 Tan 22 cm, 3.1.4 ProMOtion EPNY c0 3.2.1 Touch pOiTIẨS -. «+ S< + nn t1 E8; 20 Ehm ca 3.2.1 Advertising .eeeeeeeeeirrie HH 011 01 tk Hà ng TT nh nh pH 3.3 Communication campaign evaluation sgk 21 H00 11 04 22 E004 51-04 8009 24 hư 25 | EXECUTIVE SUMMARY Big Cola is a carbonated soft drink brand of AJE group, a multinational enterprise currently represented in 20 countries worldwide In 2009, AJE Vietnam was opened, being one of the first markets in Asia, after Indonesia and Thailand With the same strategy as AJE global, the refreshing cola flavor is chosen to be the key, the strategic product Coming to Vietnam when soft drink market was at the saturated time and the competitiveness is very tough, Big Cola had to encounter big men Pepsi, Coca Cola who have dominated CSD market for years and local big brands such as Tan Hiep Phat, Chuong Duong, Tribeco Great effort, strong investment and a different strategy helped Big Cola create an impressive opening in the first year However after that, because of the economy inflation and the inconsistent strategy, Big Cola didn’t keep it unique selling point which led to continued failure in the next years By reviewing and analyzing what Big Cola has done in the last years but also their first years in Vietnam, this study would recommend a marketing strategy and implementation plan in 2013 and the first quarter of 2014 to rebuild brand awareness and increase 30% sales volume 1.1 INTRODUCTION Overview about AEJ 1.1.1 AJE About AJE global GROUP is a multinational enterprise currently represented in 20 countries worldwide with its holding company in Spain In order to strengthen bonds within all their market sectors, they have gained ownership of 22 factories and 120 fulfillment centers employing over 20,000 people Their more than one million retail outlets worldwide enable them to sell over billion liters of beverages including beer, sports tea and juices various water, drinks, isotonic and energetic drinks, As a company with a "Think Big" philosophy, AJE aims to break down barriers and maintain their ethos of working hard in order to reach our main objective and become one of the top 20 most important multinational companies in the world by 2020 Mission: Contribute to develop society wealth by being the best elaborated product’s choice and seeking excellence from an integral perspective Vision: Being one of the top 20 multinational enterprises by 2020 (vision of AJE global) 1.1.2 About AJE Vietnam AJE Vietnam was invested by AEJ group on Sep 2009 Starting Capital: 9.941.667 USD Name: AJE Vietnam Company Limited Head office/factory: Lot 12, Road no.10, Vietnam-Singapore Industrial Park — Thuan An- Binh Duong province AJE Vietnam Evolution: 2010 with Vietnamese football fans 2Ii-2BM2 - * Develop the market in Ho ChiMinh, Mekong, Central and Cambodia 1.1.3: Product portfolio of AJEin Vietnam Carbonated soft drink: Cola, Orange, Strawberry, Lime, Sarsi: 425ml Others CSD SKUs includes Big Cola liters and 1.5 liters” Cola Orange Strawberry Bottled-drinking water: Cielo 600ml Lime Sarsi 1.2 Overview about the Vietnam Soft Drink Market 1.2.1 The Macro-factors in Vietnam from 2009 to 2015 Vietnam-is one of the most promising markets in-Asia-with a large young population: which have a steadily growth around 1.18% per annum On the other hand, the population of Vietnam in 2009 reflected those aged under 30 year old with more than 61% percent (Table 01) were dominated the total population The young and dynamic age structure is lucrative for international brand of fashion, coffee shop, mobile phone and fast food as well Table 01: Vietnam Populationby Age 0-4: 59° 10-14 : — 86 c Soe “B20 8.8 Bộ 15-19 20A2 2529 30-34 - 35-39 4A 108 - G up distribution (%)' TW Bk 101 8:20: me 73° 7.85 BA 10.45 - 9,80 9.05 8.00 10 92.89 78 BR 7.8 - 7,60 74 6985 710.69 "“ BAS BA 49.~ 5054 E— "¬ 60-64 15 _ 65-69, 707A 7879 808 ee Total — 21 18 13 17 067.11 100 “06 -1000 vờ 1000 18 - 1,604A0 085 0.80 100.00 " (Source: General Statistic Office of Vietnam 2010) POPULATION PYRAMID OF VIETNAM 2009 85+ 80-84 75-79 70-74 65-69 60-64 55-59 50-54 45-49 40-44 35-39 30-34 25-29 2024 1519 10-14 5.9 04 MMale 15.0 10.0 5.0 - (5.0) (100) (15.0) femaik- Moreover, the forecast Real GDP during the year 2009 to 2015 grown more than 6.3% GDP of 2015 also has increased approximately 2.3 times to 2009 (Table annum-and-the 02) The increase of GDP will lead the increase of Vietnamese annual income Table 02: Vietnam Economic Activity forecast to 2015 Tahle: Economic Áctlvity 2009 2008 Nominal GDP, VNDEn? 44850380 Neminal GDP, USSbn? 89.8 $2.8 6.3 543 16583830 ‘ 2019 2011! 20121 ; 1,953.223.9 243288536 2.641.067.1 101.9 113.0 68 63 2014f 20131 2.985.462.7 129.7 1598 72 72 3,358/6144 : 20151 3.761.091.7 1745 " 200.6 72 72 Real GDP growth, % change yoy GDP par capita, _ uss? 4,041 ` 1,063 11353 (A265 : ` 1438 — : 1,658 1,837 2,181 : (Source:Business Monitor International 201 1) 1.2.2 The Vietnam Soft Drink Market According to the British Business Monitor International Company (Vietnam Food and Drink report for Q2 2010), Vietnam continues to be the one of the most promising soft drink markets in the region Per capita consumption of soft drink in Vietnam is low, at around nine-liters per annum-compare with 70 liters in the Philippines-and-15litres in China By this result, the demand for soft drink in Vietnam is continued to rise However, these nearly years, Vietnamese consumers concern more about dental problems and obesity cases and that the reason they paid more attention to healthier drinking such as tea and fruit/vegetable juice or RTD- tea With: the changing incustomer’s demand like that, others soft drink like CSD will face more challenges and tougher competition While total volume sales of carbonates are expected to decline, bottled water and fruit/vegetable juice and RTD tea are projects to register strong growth Table 03: Sales of Soft Drinks (as sold) by Sector: Volume 2009 Pe " Million litres Off-trade |On-trade ị ị Carbonates ị Fruit/vegetable juice | i ị Bottled water Funtional Drinks RTD Tea ị RTD Coffee ị 188.0 44.2 9.1 ` ị 255.2 174.9| 244.6 0.2 - 53.3 419.5 48.1 | 16.1 32.0 ị Concentrates 67.2 |Total 0.2 2534| 1768| 430.2 | 0.5 0.2 0.7 ị Sale of soft Drink (as sold) by Sector: Volume 2009 500.0 450.0 Pe n 400.0 350.0” 300.0 250.0 2000 nương +——} ' 1500 + 400.0 +) „m0 T1 e | ® cq vế Ko £ T vế € FF vế s sg T vế J ° o ¬ & & Million litres 1.2.3 Competitors analysis In the general RTD market, Big Cola is competitive to others RTD categories as potential competitors, for the CSD specific market, Pepsi cola, Coca cola, Chuong Duong, Tribeco are the direct competitors of this brand The CSD sector was 13 Marketing activities: = TVC: two TVCs in one year Street Fire TVC 14 * Activation: Booth display and event’sponsorship World Cup Calendar cat tong ÝAjtvvy 0A, MS an | naea MÌmAese, Nhân “ÌnNn, tan jade a be + m†{ a— + c— : + Loe thee «te ng fe ton sind MF jane tras | sesnsemdee “on os [one ares .n Cạn —— [Roar Save, Na tee [ann = I naa „AE, 1e) ` i R i E†i[asevee oe son han, = TƯ tong TTL =Sam honnnAAedMebe Marmion] || poe Men aot | tad []-[ ope we sn eea-A | mm The (te photo wet) - (hae toe tee Mameld-[{ Sam } _ mn mre) beaten! : OOHbannerke Result: Big Cola becomes one of the favorite drinks of the year, a phenomenon of CSD market 15 Sales volume is at the 3rd position Analyze: 2010 is a good economic year after the recovery from 2009 crisis The market is back with positive signal, Vietnam advertising is at the blooming age Strong investment in media and in above the line and below the line activities from TVC, print ad, outdoor to sampling, modern activation , Big Cola made great impression to consumers Successfully push people to switch and consume new products that may not necessary for them Pricing strategy together with ATL and BTL activities really caused a big bang to the market, bring Big Cola to 3rd position in sales volume of Carbonated Soft drink (CSD) in a short time Its first TVC “Street Fire” in 2010 added more fire to the heat of this new brand but cool down the heat of thirst The 2nd TVC — “Sport” is an adaptation of the global TVC which successfully made a position of Big Cola in the market by creating the image of England and Football 2.5.2 2011 of Big Cola Objectives: Maintain the image and perception of Big Cola in consumers’ minds Pull more consumers to buy Big Cola Strategy: Brand reposition to strengthen brand image Consistently build English image in all activities and use football as a key platform to communicate Adjust the price due to the increase cost of material and other expenses Marketing activities Big Cola did brand repositioning as “Be England” to build the image of a brand from the country of football They spent less media on TVC, just half of 2010 but focus more on building brand image through PR and events related to football and FA cup of England, in line with Big Cola global activities A trophy greeting and display event 16 This event was reported in many articles and TV news throughout the country Articles TV News Result: This new positioning was successful to make people think that Big Cola is from England and connect football with the brand The event in which invited Steve McMahan, the ex-team leader of Liverpool, to bring FA champion trophy to Vietnam created a strong impression This is a smart concept which can earn free media from television agent, press, website and forum thanks to the hook of FA trophy and Steve who is currently the commentator of ESPN Asia as well Nevertheless, the sales volume dropped down remarkably The reason will be analyzed in the next part Analyze: With the positioning from the beginning as a competitive price for mass population, the perception-of Big Cola-is-lower-price than-other brands: Althoughthey have repositioned “From England”, consumers are used to the price that has been set up That’s the reason why sales volume decreased when Big Cola Vietnam increased the price, from to while Pepsi and Coca Cola didn’t make any change ... 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