Professional Documents
Culture Documents
BI
A
VIETNAM
SITUATION
ANALYSIS
REPORT
Word count: 4687 words
Do My Hanh (s2926166)
T
SITUATION ANALYSIS REPORT
Page
able of Contents
SITUATION ANALYSIS REPORT GROUP: GROUP: PEPSICO
PEPSICO
1. Situation Analysis 3
a. Company Descriptions 3
b. Product Description 4
2. Marketing Environment 5
a. Micro Environment 5
b. Macro Environment 7
10
3. SWOT analysis
4. STDP 11
11
a. Segmentation
11
b. Targeting
c. Differentiation 12
d.
Positioning 13
5. Conclusion 14
6. Reference 15
7. Appendices 18
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SITUATION ANALYSIS
A. COMPANY DESCRIPTION
i. About:
Coca-Cola's story began in 1886 when Dr. John Pemberton produced a unique-tasting
soft drink that would later become known as Coca-Cola. Coca-Cola is now available in
numerous sweetener and flavor options. The company offers its products in over 200 countries
and territories, and it is consistently listed as the most popular soft drink on the planet. In
addition, the Coca-Cola Company owns and markets over 200 global brands, including Coca-
Cola, Diet Coke, Fanta, and Sprite. These beverages are enjoyed by people worldwide because
of their deliciousness and refreshing taste.
Due to the affordable price and great flavor of Coca-Cola, Vietnamese people
have enjoyed it since their debut. Coca-Cola is currently distributed by 14 million distributors
around the world. Coca-Cola has been on the global market for 135 years, and in Vietnam for
27 years, and has established itself as one of the most successful soft drink firms.
ii. History timeline
1886 - 1887
Coca Cola soft drinks was first launched by John Pemberton
1800s
1900s
Coca-Cola's iconic commercials called: "I'd like to buy the world a Coke." (1971).
2000s
i. Mission Statement
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B. PRODUCT DESCRIPTION
i. Function and features
Coca-Cola is a drink that helps thirst reduction. It is frequently found as a refresher drink
on numerous occasions or gatherings due to its refreshing ingredients such as sugar and
carbonated water. Coca-Cola seeks to bring people together in a meaningful way while they can
share the coke.
The logo was designed with a traditional font printed in white on a vibrant red
background, appealing to consumers. Subsequently, Coca-Cola's logo has become a bold
symbol in customers' minds for over a century. The Coca-Cola bottle's iconic contour fluted lines
are one of the most well-known shapes in the world.
ii. Market share
Coca-Cola Beverages Vietnam Ltd Co. had a 10% market share of soft drinks in October
2020. The market share has a 0.4%-point change from 2018 to 2020. Compared to other
competitors, Coca-Cola Vietnam is in the 3rd rank in Soft Drinks in Vietnam. (Passport)
According to the Beer-Alcohol-Beverage Association (2016) report, the number of people
purchasing Coca-Cola accounts for 41,3% of the total. This proves that Coca-Cola held the 1st
rank in the market share of drink consumers in Vietnam.
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Marketing Environment
A. MICROENVIRONMENTS
i. Suppliers
In any company's supply chain, suppliers play a critical role. Suppliers provide the
company with the resources and raw materials it needs to make the goods and services it sells.
Coca-Cola is a global corporation with regional operations. As a result, there are already over
225 bottling partners worldwide. (Sampad, R 2021) The supply chain for Coca-Cola starts with
procuring raw materials like agricultural products (such as sugar cane or fruit) and water. Water
and sugar are acquired locally, and the partners can only choose the type of sugar they want to
use. Beet sugar is popular in Europe, cane sugar is popular in Asia, and corn syrup is famous in
the United States. (Sampad, R 2021)
Stepan Processing Company, which specializes in supplying Coca-Cola Company with
coca leaves, is one of the chain's representative companies. Coca-Cola Vietnam Beverage
Company uses Bien Hoa Joint Stock Company's high-quality cartons and paper boxes for
storage and domestic consumption.
ii. Marketing Intermediaries
Marketing intermediates assist a business in promoting, selling, and distributing its
products to end-users. Intermediaries include resellers, distribution corporations, and marketing
firms. The Coca-Cola Company accounts for the majority of their intermediaries. Coca-Cola has
established a global bottling network that comprises both privately owned and collaboratively
controlled bottling facilities. Banks and insurance companies play an important role as
middlemen. These connections must be taken into account in the new market strategy.
One of the resellers of Coca-Cola in Vietnam is Filmexco. Since October 1, 2015,
Filmexco has been the exclusive distributor of Coca-Cola in the central of Saigon. Filmexco will
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undoubtedly develop and offer bottled Coca-Cola drinks to our customers, thanks to the
company's reputation and capability acquired over 26 years. (Filmexco 2015) Many big retailers
in Vietnam provide Coca-Cola opportunities to reach target customers, such as Vingroup
(Vinmart), Lotte Mart, Co.op Mart.
Coca-Cola in Vietnam has three production facilities in Vietnam, and these facilities are
in Hanoi, Da Nang, and Ho Chi Minh City. (Coca-Cola 2021) Three factories help Coca-Cola
produce and distribute to resellers, which increases the Coca-Cola channel in the local market.
Marketing Services Agencies
Coca-Cola’s decision to combine the creative and media business into one review over
the summer allowed WPP to pull into the lead because its global reach and size allowed it to
meet the company’s terms. The review has industry-changing implications, impacting billions of
dollars and leaving thousands of agencies that previously worked with Coca-Cola looking for
ways to replace the hole left on their client roster. Coca-Cola’s decision also sends
reverberations through competitors’ businesses as WPP handles media buying in several
territories for rival Pepsi.
iii. Stakeholders Panel
Partnerships are essential to the company's success since they allow them to do more
together. They can make more progress and have a greater influence by collaborating with
stakeholders who can contribute their knowledge and could make the world a better place.
Transparency, inclusion, consistency, and accountability are key to their stakeholder
engagement strategy. Coca-Cola works with hundreds of stakeholders around the country, in a
variety of positions, on a local and global scale. Bottling partners, suppliers, consumers,
customers, industry partners, governments, and non-governmental organizations are among our
stakeholders.
iv. Customers
Coke, in general, does not have a defined target audience and is directed at everyone.
Coca-Cola recognizes every thirsty customer as a potential client. All age groups are being
targeted, but the 18-25 age group holds the most promise, accounting for nearly 40% of the
overall age segment. (Ramya, B & Subasakthi 2020). Coca-primary Cola's target market is
children and teenagers. Although they do not target by gender, the findings show that both men
and women appreciate and use this product (almost 50/50). (Coca-cola 2021) Coca-cola does
not target any particular occupation, although its customers are primarily students and families.
v. Competitors
a. Direct competitors
The "Cola Wars" are a long-running rivalry between the Coca-Cola Company and PepsiCo.
For many years, these two companies have been conducting mutually targeted marketing
campaigns for direct competition between their product lines, particularly their flagship
colas, Coca-Cola, and Pepsi. In the late 1970s and early 1980s, the competition became more
intense, earning Cola Wars its current moniker. The two companies continued to introduce new
and "modern" advertising methods, including as Coke's first celebrity endorsement and the
contour bottle, until 1923, when market instability following World War I prompted Pepsi to
declare bankruptcy. Pepsi went bankrupt for the second time in 1931 but rapidly returned by
offering 5-cent-bottle products, which were affordable to everyone, and reignited the Cola Wars,
which continue to this day. (Softdrinkcolawar database 2012)
b. Indirect competitor
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Indirect competitors provide somewhat different products and services, but they all target
the same clientele in order to meet the same need. Replacements are a common term used to
describe these items. Coca-Cola faces indirect competition from several companies. Starbucks,
Costa Coffee, Tropicana, Lipton juices, and Nescafe are some of the companies that potentially
challenge Coca-market Cola's dominance.
B. Macro Environment
i.
Demographic force
1. Age
The first demographic factor that needs to be considered is age. According to the IOSR
Journal of Business and Management, Coca-Cola targets every age group. However, the most
potential market for the firm is youngsters or youth. This market ranges from the age of 15 to 25
and reaches 40 years old. (Ramya, B & Subasakthi 2020). In Vietnam, the age group from 15 to
40 accounts for most of the population. This trend creates golden opportunities for Coca-Cola to
boost its sales performance by attracting more potential customers.
2. Gender
The gender factor has a considerable influence on the marketing strategy. In Vietnam,
the number of males is higher than that of females in consuming soft drinks. According to
MarketIntello research, males accounted for roughly 60% of soft drink consumers, while females
only took around 30% in 2017. This research leads to a different approach in promoting
products for soft drink companies in Vietnam.
However, Coca-Cola's targeting strategy is not based on gender (Ramya, B &
Subasakthi, S 2020). The products of the firm are all gender-neutral designs. This approach
lengthens the reach to customers of all genders and consequently increases the sales figures
for Coca-Cola in Vietnam.
3. Geographic Population Shifts
The geographic population shift is another significant demographic factor for every
business. The urban population in Vietnam has climbed steadily throughout the last decade.
This urbanization trend creates more job opportunities for people. Therefore, more consumers
with higher income and purchasing power will appear on the market (Ha Le 2020). This change
will benefit Coca-Cola’s sales performance because of the higher demand in urban areas.
Furthermore, due to the high population density and frequency of use, the corporation
concentrates its market on large cities. Hence, the headquarters of Coca-Cola in Vietnam are in
the North (Hanoi), the Central (Da Nang), the South (HCM), and gradually expanded to
neighboring cities (Nguyen, HT 2020).
In recent years, the poverty rate in Vietnam has declined considerably, especially in rural
areas. This downward trend in poverty has a significant impact on the company. More
Vietnamese customers with higher-paying ability will facilitate the sales values of Coca-Cola to
increase in the future.
i. Economic force
1. Income
The average income of Vietnamese consumers has experienced gradual growth in the
last decade. Due to the global pandemic, there was a slight drop in consumers' income between
2019 and 2020. If the average income of consumers continues to reduce because of the
epidemic, it will cause purchasing power loss. This trend will adversely affect Coca-Cola's sales
performance in Vietnam.
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2. Inflation
Inflation relates to the increase in the price of products. It results in fewer consumer
spending and a drop in revenues for all businesses (BBC 2021). Over 20 years, the inflation
rate in Vietnam reached its peak in 2007 before having a dramatic decline in recent years
(Statista 2020). However, there is a significant increase in the inflation rate between 2019 and
2020. The shortage of supply due to pandemic lockdown leading to high demand is the main
reason for this trend. The combination of the inflation growth and the income drop creates a
tough challenge for Coca-Cola in attracting more customers.
3. Spending Patterns
The spending pattern of consumers plays an essential role in the sales figures and profit
of every business. In Vietnam, the monthly average expenditure has increased dramatically in
the last two decades. Despite having a lower income than last year due to the Covid 19
lockdown in 2020, Vietnamese people still spend more money to purchase products and
services. This consumer tendency does wonders for Coca-Cola to increase sales value in the
Vietnamese market.
ii. Cultural force
Vietnamese people always love to protect and enhance their traditions and customs. Tet
is the most important and widely celebrated festival in Vietnam. Understanding Vietnamese
culture, Coca-Cola launched Coca-Cola Tet in 2020 to create close relationships with their
customers. (Biz-Eyes 2021) This program introduced hashtag #KetThanHangXom (Connect
with neighbors) to encourage consumers to show their relationships with neighbors at this
special event. Coca-Cola also connected thousands of families in Ho Chi Minh City and Hanoi
at two Longest Tet Table events to celebrate New Year.
Ekocenter, which is the global initiative of Coca-Cola, was introduced in 2013 in
Vietnam. This project has brought practical values to contribute to improving the quality of life in
Vietnam. After five years of development, Coca-Cola has provided clean water, free medical
examination, and support women empowerment. Remarkably, Coca-Cola has recently received
the “En Xanh” 2019 award for bringing positive changes to local people (Coca-Cola 2020). This
project successfully builds up a good reputation for Coca-Cola in the Vietnamese people’s
minds.
The news and social media have addressed the negative impact of drinking too many
soft drinks on children. Because of the strong influence of the media, Vietnamese consumers
can switch to healthier products instead of purchasing carbonated beverages. Coca-Cola, which
is one of the most popular soft drinks brands in Vietnam, consequently, will have a decline in the
share of customers aged under 15. This situation will force Coca-Cola to adjust the components
and introduce healthier products for consumers.
iii. Natural force
According to the Worldwide Fund for Nature (2019), Vietnam is among the countries that
release the most plastic garbage into the ocean. In reaction to these natural circumstances,
Coca-Cola is experimenting with more environmentally friendly packaging.
In 2019, Coca-Cola introduced environmentally friendly products to the Vietnamese
market to have the smallest possible carbon footprint. The "World without Waste" campaign,
which aims to accomplish the company's zero-waste objective by 2030, includes the statement
"Recycle me" on every packaging label and rPET bottle produced from renewable plant-based
materials, as well as a variety of public awareness projects. The organization shows its
commitment to a sustainable future and preserving the planet by reducing carbon emissions
and increasing recycled plastic through the campaign.
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SWOT ANALYSIS
Strengths Weaknesses
Customers: No age restriction, available Regulation: Soft drinks must pay the
for all gender, highly affordable for any penalty if their products do not meet the
income level. (Ramya, B & Subasakthi legal standard.
2020, p. 4) Publics: The Company does not have a
Supplies: Good relationship with good proposition in public eyes in being
suppliers and supply chain partners. environmentally friendly. (Worldwide Fund
Using domestic material => less extra for Nature 2019)
cost. (Filmexco 2015) Market segments: The lack of an
Environmental: Invent new plant-based international market
plastic recently (Coca-cola 2015) Products: Know as an unhealthy
Competitors: The market segment has beverage (causing diabetes)
strong competitors to compare Product diversification: Low (Pepsi
Products: The diversity of Coca-Cola have drinks and snacks)
beverages (Coca-cola 2021)
Marketing: Strong marketing strategy in
YouTube and TV campaign
Technological: Utilize technology to
protect the environment (Le Phuong
2013)
Opportunities Threat
Economy: The growth of the economy in Regulation & Law: Coca-cola in Vietnam
Vietnam has increased individual average has been in a lawsuit of tax evasion,
income (Statista 2020) -> increased the which facilitates competitors to take
buying power of consumers => Increased advantage of the scandal to build faith
tendency of buying the Coca-Cola with Vietnamese customers.
product Economic: The inflation rate of the
Cultural: The reputation of Coca-Cola in Vietnamese economy in 2020 increased
understanding Vietnamese cultures like than in 2019 -> The Company must solve
Tet or gathering has been increasing the problem, or they may lose the amount
Coca-Cola sales on this occasion. (Biz- of money on selling. (Statista 2020)
Eyes 2021) Product: Drinking too many soft drinks
Economy: The spending pattern of such as Coca-Cola on children is
Vietnam has grown significantly over the addressed in the news and social media,
past 20 years -> opening more which negatively affects the market share
opportunities to sell in the local of consumers aged under 15.
marketplace Health concerns: Product that contains
high sugary -> many adverse effects on
the health of any age group, especially
children. -> affected the market share in
Vietnam.
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STDP
A. Segment
About Coca Cola Company, there are two prominent segmentations: young people aged 10
- 25 years old and adults from 40 years old and above. Children and young people are the most
potential customers in the first segmentation due to their lifestyle and behavior. Young people
tend to go out and party a lot, so that Coca-Cola will be a lot more attractive. Besides that, the
millennium generation and above also have a massive interest in carbonated drinks such as
Coca-Cola. Adults, especially mothers, tend to buy Coke for their families so that these
consumer groups are willing to pay for the products.
Segment Demographic Psychographic Behavioral Geographic
(In Age) Characteristics Characteristics Characteristics Characteristics
Gender: both gender Life goals: studying Occasion: Country: Vietnam
From 15- to Level of Income: low higher education, making holiday, party, Urban, suburban,
25-year-old to medium (below 2 money, having a night outs. Rural.
million VND) prosperous career E.g.: Tet holiday, E.g. Ha Noi
Relationship: Lifestyles: Having dine out. Capital, Ho Chi
Single / In a freedom, being active, Loyalty status: Minh City.
relationship love partying, concert. low to medium
Family cycle: living Personal traits: Open- level
with parents / mindedness, Creativity,
independent Social consciousness.
40 + Gender: Both Life goals: Stable Loyalty to brand:
gender income, nurture next Medium to high
Level of Income: generation, work-life level
Medium to high balance, fulfilling their life (conventional)
Love Interest: Lifestyles: Money Occasion:
married sensitive, take care of Holidays, family
Family cycle: Having family dinner, non-
children’s, parents. Spending habit: Buying alcoholic
expensive brands, meeting.
buying supplies for
family.
B. Target
Coca-Cola Company does not target any specific customers, and they aim to target
everyone. However, their primary consumers are young people and children aged 10 to 25
based on their habits and lifestyle. The research shows that people from 15 to 25 cover 40%
of the whole age group. Coca-Cola reaches to their target customers through a lot of
creative ways. Firstly, an advertisement video uploaded on YouTube called:" Coca-Cola -
Turn up your rhythm," is highly appealing to young consumers. With the modern music and
up-to-date image, it quickly reaches out to the young people in Viet Nam. In the video,
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viewers can find many different styles, genders, and characteristics; however, the common
thing is that they are all young people with passion. The ads show that Coca-Cola
understands its market and knows how to reach out to its potential customers.
Besides advertising through social media, Coca-Cola also produced a marketing
campaign called "Share a coke" (2014). The company put not only names on every Coca-
Cola bottle but also words such as “Beloved Grandma”, “Beloved Mother”, and a lot more.
Coca-Cola produced the campaign with a message, "An ice-cold Coke tastes better when
shared with friends, family, and even strangers." (Coca-Cola Co.) The name on the bottle
targets the young people's characteristics when they are young and love experiencing and
following up with the trend. They will not only reach out and buy for themselves a bottle with
their name, but it will also be a significant gift to their friends and family. With funky music,
Coca-Cola quickly attracted customers in Viet Nam. The company claims that Coca-Cola's
named bottle will be a meaningful gift to your friends or your loved one.
C. Differentiation
i. Product differentiation
Coca-Cola original has always been a top choice in the beverages market. However,
customers can find a wide variety of products in the same category, including Coca-Cola
light, Coca-Cola Zero Sugar, Coca-Cola added coffee, Coca-Cola plus (added nutritional
fiber). Each type of drink caters to different purposes of customers. Coca-Cola light and zero
sugar are both sugar-free and no-calorie, which are ideal options for diet people. But to
anyone who prefers the original flavor of this drink, they are advised to pick zero sugar;
meanwhile, the light option has a different blend of flavors which gives it a lighter taste
(Coca-Cola n.d). In addition, Coca-Cola added coffee has 30 percent caffeine that helps
drinkers freshen their minds after work/ study hours. Coca-Cola plus with fiber added no-
calorie minimizes the fat absorption chosen for diet customers or those who want to control
their calorie intake.
Not only does Coca-Cola original have different flavors, but each type of product also
has different packaging. If red is the iconic color of the original one, customers can find grey
for Coca-Cola light, black for diet, or white for plus. Furthermore, Coca-Cola ensures its
customers can consume the products in different quantities. The glass bottle is available in
0.25, 0.5, and 1 liter, while the plastic bottles are 0.5, 1, 1.5, and 2 liters. They even have
cans available in either 0.25 or 0.33 liter. In sum, Coca-Cola initially differentiated itself by
offering different flavors, packaging, and quantities.
ii. Image differentiation
A brand focuses on family togetherness and emotional expression: it is undeniable that
Coca-Cola has won millions of Vietnamese hearts on every Tet occasion. In Vietnam, Tet –
Lunar New Year is when every family member gathers and shares moments after a hard-
working year. Coca-Cola successfully conveys "See Coca-Cola, See Tet" by decorating its
packaging with golden swifts. The brand represents a festive season full of love and
meaningful moments with beloved family members.
An advocate for sustainability: Coca-Cola's EKOcenters are organizations to solve
problems in society, including clean water shortage, renewable sources, waste minimization,
etc. Coca-Cola Vietnam has contributed to the sustainability of three key pillars, including
economy, environment, and society.
Aiming for a better future: to Coca-Cola, human is a necessary power. That is why the
company focuses on training and developing its people, financially empowering women,
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providing basic needs for communities to have a communal space for connection and
development, etc.
D. Positioning
Perceptual Positioning map 1:
When buying soft drinks, factors most affect consumers’ purchase behaviors, including
price, taste, color, and flavor (Isibor, Iyanmu, and Oghene Wodokohw 2019). Therefore,
price and product offers are two attributes to determine the market position of Coca-Cola
original in the market.
Price:
Coca-Cola original 330ml can 9,500VND
Pepsi original 330ml can 10,600VND
Sa xi Chuong Duong original 330ml can 8,400VND
(Retrieved from bachhoaxanh.com)
Pepsi’s price is higher than Coca-Cola, and Sa xi Chuong Duong is the lowest among
the three brands with the same quantity and packaging.
Product offers:
As aforementioned, Coca-Cola has many offers in terms of flavors, taste, packaging,
and quantity. Pepsi, the direct competitor of Coca-Cola, also provides various products for
customers. However, it lacks diversity in flavors and taste. On the other hand, Sa xi has
many flavors and tastes but lacks diversity in packaging and quantity.
CONCLUSION
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eyes. It represents love, sharing, and memorable moments spent with loved ones. On
special occasions, Coca-Cola has become a national drink for most Vietnamese families.
Besides, the public has praised Coca-unwavering cola's commitment to the community
and society's long-term viability. Despite the challenges encountered during COVID-19, the
company could sail the boat and gradually return to the competition. Nonetheless, Coca-
Cola will face numerous hurdles as well as numerous direct and indirect competitors. Coca-
Cola must perform better every day to maintain its top position in the soft-drink sector, a
fast-paced market.
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APPENDICES
Figure 1: The Coca-Cola Beverages Vietnam Ltd co. market share in October 2020
(Passport)
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Figure 6: Poverty rate in urban versus rural areas in Vietnam (Statista 2020)
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TASK ALLOCATION
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