Marketing Report

2015

Marketing Principles - MKTG1205

Lecturer: Nguyen Vu Duy

Group 7

Tran Trieu Giang - s3358277

Nguyen Quang Khai - s3480045

Nguyen Thi Ha My - s3515326

Ngo Thuy Ha My - s3480004

Contents
1. SITUATION ANALYSIS .......................................................................................................... 3
1.1 Company Description ........................................................................................................... 3
History ...................................................................................................................................... 3
Mission Statement ................................................................................................................... .3
CEO ...................................................................................... Error! Bookmark not defined.3
1.2 Product Description............................................................................................................... 3
Function ............................................................................... Error! Bookmark not defined.3
Features .................................................................................................................................... 3
Design ...................................................................................................................................... 4
Market Share ............................................................................................................................ 4
Brand Awareness ..................................................................................................................... 4
2. MARKETING ENVIRONMENT ............................................................................................. 5
2.1 Micro Environment ............................................................................................................... 5
Company .................................................................................................................................. 5
Suppliers................................................................................................................................... 5
Marketing Intermediaries ......................................................................................................... 5
Customers................................................................................................................................. 5
Competitors .............................................................................................................................. 5
Publics ...................................................................................................................................... 5
2.2 Macro Environment .............................................................................................................. 6
Demographic ............................................................................................................................ 6
Economic ................................................................................................................................. 6
Natural ...................................................................................................................................... 6
Technological ........................................................................................................................... 6
Political ................................................................................ Error! Bookmark not defined.6
Cultural................................................................................. Error! Bookmark not defined.7
3. SWOT Analysis.......................................................................................................................... 7
4. STDP .......................................................................................................................................... 8
4.1 Segmentation ......................................................................................................................... 8
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 4.2 Targeting ............................................................................................................................... 9
The Targeting Strategy ............................................................................................................ 9
Rationale for the Targeting Strategy ........................................................................................ 9
Applying the Targeting Strategy……………………………………………………………..9

Evaluating market .................................................................................................................... 9

4.3 Differentiation ..................................................................................................................... 10

Product ................................................................................................................................... 10
Services .................................................................................................................................. 10
Channels ................................................................................................................................. 10
Image ...................................................................................................................................... 10
People ..................................................................................................................................... 11
4.4 Positioning........................................................................................................................... 11
Positioning Maps.................................................................................................................... 11
Value Proposition................................................................... Error! Bookmark not defined.
5. CONCLUSION ........................................................................................................................ 12

6. REFERENCES ......................................................................................................................... 13

7. APPENDICE ............................................................................................................................ 17

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 1.SITUATION ANALYSIS
1.1 Company Description
 History:
The Coca-Cola Company is the popular soft drink brand in the world and has the highest number of sales in the
history (The Coca-Cola Company 2014). With nearly 130 years in the global market, the brand has provided over 100
sub-brands and different product categories including carbonated soft drinks (Sprite, Fanta), mineral water
(DASANI) and energy drinks (Monster Energy, POWERADE)(The Coca-Cola Company 2015). Coca-Cola is the
first product and also the most popular one of the company. On 8 May 1886, Coca-Cola was founded by John
S.Pemperton and first sold in Atlanta, USA. It had soon been a success and helped Pemberton create his own
business and develop his career in the soft drink industry. Later, Frank Robinson, an accountant of the company,
came up with the brand name Coca-Cola and designed the logo using the Spencerian font, which has been the
official logo of the brand and used till now. In 1969, thanks to the development of technology, the Coca-Cola
Company applied color printing technique in all of its promotional material. Since then, red and white has been the
symbolic color as well as a special feature of the Coca-Cola Company (The Coca-Cola Company 2014). In 1994, the
company entered Vietnamese market and built its first bottling operation plant in Hanoi (The Coca-Cola Company
2011). Coca-Cola is now one of the two leading soft drink brands in Vietnam with large investment and creative
advertising campaigns (Euromonitor 2014).

 Mission Statement:
The Coca-Cola Company (2015) publishes its missions, vision and values to the public. For missions, the Coca-
Cola Company expects to bring positive changes to the world, to inspire people to live a happy and optimistic life
and to create significant values and differences.

 CEO:
The present Chairman of the Board and CEO of the Coca-Cola Company is the Turkish-American business
executive Muhtar Kent. He has been attaching with this company since 1978, when he was the leader of marketing
and operation teams. Throughout his 36 years in the company, he served at many positions such as General
Manager of Coca-Cola Turkey and Central Asia(1985), Managing Director of Amatil-Europe(1995) and President
and CEO of the Efes Beverage Group – a subsidiary company of the Coca-Cola Company(1999). Kent graduated
from the University of Hull with a Bachelor of Science degree, and a Master of Science degree in Administrative
Sciences from Cass Business School, City University London ( Coca Cola Journey 2015).
1.2 Product Description
 Function: One of the most basic function of Coca-Cola as well as
other drinks is to provide water for the body. Wyness &
Benelam(2010) suggest that all kinds of drinks, including soft drinks,
can contribute to the hydration of human beings. Moreover, Coca-
Cola contains caffeine and sugar, which are considered to provide a
certain amount of energy, hence improve the performance of
physical activities.

 Features: According to Lubin(2012), Coke and Pepsi have quite similar taste and chemical components. While
Pepsi is believed to be slightly sweeter and has citrus flavors, Coca-Cola is different from its competitor in the
strong flavor of vanilla, cinnamon, extracts (orange, lime) and spices (nutmeg) (Poundston 1983). However,
Lubin(2012) believes that the real difference between the two soft drinks come from their branding and
marketing strategy. Weber (2011) states that the Coca-Cola Company has introduced the secret formula of its
famous soft drink in a distinct way: ‘showcasing’ it in a metal box. As a result, the formula of Coca-Cola

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 remains a secret until today. What the company has succeeded in is building a positive brand image by ingenious
marketing strategies.

 Design:
There are many types of packaging designs for Vietnamese markets
including aluminum cans, glass and plastic bottles. The iconic
contoured glass bottle of Coca-Cola has been recognized as a
valuable asset of the company, which was designed by a mistake (The
Coca-Cola Company 2015). The Coca-Cola Company (2010) states that
the design of the glass bottle was inspired by the body of women with
the purpose of helping Coca-Cola stand out from other competitors
and recognized even when it was in the dark or broken. In 1977, it
was given the copyright protection (The Coca-Cola Company 2010).
For aluminum cans and plastic bottles, they are given special designs
in holidays, especially Lunar New Year, with red and yellow – two Figure 1. Reproduced from: Chan & Breidenbach 2014
symbolic colors of Tet Holiday. Aluminum cans and plastic bottles
are also used as promotional materials in ‘Share a Coke’ campaign in 2013, when popular names and
characteristics of Vietnamese youth was printed on them. Most importantly, all of the packaging designs of Coca-
Cola is certified as environmentally friendly (The Coca-Cola Company 2010).

 Market Share:
With more than 10 years entering Vietnamese market, Coca- Table 1: Market share of beverage drink in
Cola has suffered many changes in market share. It targets at VietNam 2013
three prime markets including Hanoi, Ho Chi Minh City and
Zero Degree Green Tea
Da Nang with nearly 10 different brands from Coca-Cola
(CV 2012). Coca Cola occupies 5.4% slightly higher than 13% C2 Green Tea
Pepsi with 4.7% out of the total market share for Vietnam 8,10% Sting
beverage drink. Zero degree Green tea, Number one and Dr. Coca-Cola
5,70%
Thanh has 13% and 5.4% out of beverage drink market, 54,60% Number 1 + Dr Thanh
respectively (Hoa & Luan 2013). However, THP group that 5,40% Pepsi
own Zero Degree Green Tea Number one and Dr Thanh 4,90%
Redbull
involve in an incidence about defected product(Vo 2015). 4,70%
This incidence can affect their sale in the following months 3.60%
Other beverage drink
that can lead to gaining advantages for other beverage drink
company including Coca Cola.

 Brand Awareness: As Figure 2 shows, Vietnam is now

one of the emerging markets of Coca-Cola. The percentage
of penetration (the number of households purchasing Coca-
Cola) of it is quite high comparing to other Asian countries
such as Thailand, China and Korea (Kantar Worldpanel
2013). In fact, Vietnam and Philippines are two Asian
countries with the highest rate of penetration. Moreover, Le
(2015) reports that Coca-Cola conducts the pervasiveness
strategy, which means offering and delivering Coca-Cola in
as many stores and supermarkets in Vietnam as possible.
Therefore, it is reasonable to conclude that Coca-Cola earns
high brand awareness in this country.

4 Figure 2. Reproduced from: Kantar Worldpanel 2013

 2. MARKETING ENVIRONMENT
2.1 Micro Environment
 Company:
In Vietnam, Coca-Cola was firstly introduced in 1960. Until August 1994, the Coca-Cola Company was finally
established with the purpose of long-term business. At first, it had 3 headquarters in North, South and Central of
Vietnam but these 3 offices were consolidated into one and based on Thu Duc District, Ho Chi Minh City.
 Suppliers:
The Coca-Cola Company Vietnam was managed by 900 employees - a huge and stable number of human resources
who produce Coke. In addition, because Coca-Cola in Vietnam is a 100% foreign investment, it has received the
investment from various foreign stakeholders. For example, in 2012, Muhtar Kent, CEO of the Coca-Cola Company
announced that Coca-Cola Company in Vietnam will be invested $300 million (Coca-Cola Journey 2012).
Furthermore, Sabco – a famous bottling group is also a main supplier of Coca-Cola.
 Marketing Intermediaries:
To promote and improve the sales number of Coke, the Coca-Cola Company will need the assistance of resellers
from big to small such as Co.opmart, Metro, Lotte Mart, Circle K, Shop n Go,… Therefore, the products will meet
the customers’ need anytime, anywhere.
 Customers
- Consumer Markets: Understanding the wants and needs of customers is a basis of any marketing strategy and
Coca-Cola is successful in achieving this. Knowing the desire of young consumers to express themselves through
original products, the Coca-Cola Company brings ‘Share a Coke’ campaign to Vietnam by printing popular
Vietnamese names and characteristics on Coke can (GDVN 2014). According to Marczak (2013), by the end of 2013,
Coca-Cola planned to provide more sizes, especially smaller sizes, for cans and bottles. This adds to what it claims
are efforts to help consumers make the right choices.
- Reseller Markets: The Coca-Cola Company Vietnam also has a wide network of resellers including local
restaurants, food stalls and grocery stores.
 Competitors
- Pepsi Co. is considered to be the main competitor of Coca Cola in Vietnam as well as in the rest of the world. In
fact, Pepsi shared around 40% of carbohydrate drinks in Vietnam in 2010, an equivalent amount of Coke.
Moreover, Pepsi Vietnam aims to exploit non-carbohydrate drink bys collaborating with one Japanese company,
which bought more than half of revenues of Pepsico Vietnam (NCDT 2013). This act can be seen as one step ahead
of Pepsi in a new category of soft drink.
- Tan Hiep Phat is a strong local competitor of the Coca-Cola Company. The company’s main products are
Dr.Thanh and 0° Green Tea, which are good for people’s health, comparing with Coke, which is considered as an
unhealthy drink (NCDT 2013). However, this company has recently had many scandals about food safety (Ha Mi &
Duc Trong 2015).

 Publics
- Media play an important role in building brand image. Particularly, Coca-Cola has received mixed opinions
about its operation from local press. For example, VietnamNet reported that Coca-Cola and Pepsi Co. contribute
greatly to the development of the Vietnamese soft drink market, VnExpress published an article complimenting
the creative advertising campaigns of Coca-Cola. However, local media, such as VietnamNet, showed their
disagreement towards the use of customers for advertising purposes and the accusation of tax evading.
- Government: In Vietnam, the Coca-Cola had some troubles with the government and boycott of customers
relating to tax. GDVN (2013) reports that the company was even warned by the Ho Chi Minh City Taxation
Department and came under investigation.

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 - Internal: The Coca-Cola Company (2015) stresses the important responsibility of the employees in maintaining
a safe, active and efficiency working environment. The variety in culture, ethnic and nationalities of the
employees also brings different promising talents from different fields and backgrounds, hence enhances the
quality of human resources and creates an exciting working zone.

2.2 Macro Environment

 Demographic
Vietnam is experienced “golden” population period. In fact, the country’s population reaches over 90 million in
2014 with nearly 32 million people below 34 year olds (Hanh 2014). Moreover, Youths are the main customers
whom consume soda regularly and make up a significant portion for soft drink firm (huffingtonpost 2012).
Therefore, Vietnam market with “golden” age group can be seen as a potential market for soft drink companies
including Coca Cola.

Vietnam has tropical climate with considerable sunlight time and humid. The average temperature of Vietnam is
around 23 to 27 Celsius degree. Especially, the temperature can reach to 32 Celsius degree in the summer
(Embassy of Vietnam). Human in high temperature environment will need to frequently hydrate. In this case, soft
drink including Coke which contains sugar, can be considered as a way for adding water and energy for human
body.

 Economic
Vietnam’s economy is believed to rise in the next following years with numerous positive signals. According to
Nhat (2014), Consumer Price Index of Vietnam in 2014 was recorded a rise 4.09 % which relatively low compared
with some previous years. It was mostly contributed by the significant decrease in the price of fuel. In the other
hand, Per capita income of Vietnam increases from 4545 USD in 2013 to 5153 USD in 2014, which equals 12.89%
increase (Khai 2014). Vietnam citizens, hence, have surplus money to pay for more goods. This positive signal can
indirectly impact the sale of Coca Cola as the result of people gains more money.

 Natural
The main target of Coca Cola is sustainable and effective development. The firm is participating in many projects,
which mainly focus on society and environment. The most considerable project is “supply safe water” from Coca
Cola. The beverage company contributed to Vietnam over 50 Billion VND within 10 years for bringing safe water
to people in rural area whose have limited access to water(Department of water resources mangerment 2014).

 Technological
Today, new packaging methods have revolutionized the process of producing Coke bottles. In 2009, the Coca-Cola
Company introduced PET plastic bottles which are fully recyclable, convenient and lightweight. They produced
2.5 billion of their products using less petroleum. Similarly, Heinz also created greener packaging but their
productivity represented only three percents of Coca-Cola’s packaging (Ireland n.d.). As a result, the movement
continues to grow, as billions of cases of Coca-Cola products are shipped globally each year.
 Political
Vietnam became a member of WTO in 2006, which can bring significant benefits for both international and
Vietnam companies (BBC 2007). In fact, Vietnam encourage international fund from outside border which mean the
government will have many policies which support for international firm including Coca Cola. Moreover, the
government is planning to join TPP (Trans-Pacific Partnership). If the TPP agreement is signed by participators, that
will clear barriers for international firm to invest in Vietnam. In future, there will be no duty or tariff for goods

6
from participated nations companies, which also include Coca Cola. As the consequence, the company can earn
more profit and Vietnam customers will have a chance to buy
lower price products (Linh 2015).

 Cultural
Vietnam has a wide range of colorful festivals and red is the
dominant color in these events. It is associated with happiness,
love, luck and celebrations. Therefore, Coca Cola gains more
competitive advantages when having the same color. For
illustration, gift is a culture in Tet Holiday. Therefore, Coca-Cola
which is advertised with full of red color and meaningful wishes is
the best choice since it is more attractive than other competitors. Figure 3. Reproduced from: Gyalthang 2015
Moreover, on the occasion of the Lunar New Year in 2015, Coca-Cola made a short film called ‘The Real Gift of
Tet’ which was spread rapidly on social networks. This is one of the culture-oriented campaigns of the company
conveying the meaningful message of awakening people about "the most meaningful gift of New Year's Day is
when families gather."

3. SWOT Analysis
Strengths Weaknesses
BRAND BRAND
- The Coca-Cola Company provides a variety of The Coca-Cola Company doesn’t have any products in
products in Vietnam (Coca-Cola, Sprite, Fanta) (Nguyen the packaged food category – a promising market in
2015). Vietnam, which can limit its ability to expand and
The company also has factories in three most developed compete with Pepsi (with Poca as a popular snack to
city of Vietnam (Hanoi ,Ho Chi Minh City, Vietnamese youth) (Euromonitor 2014).
DaNang)(Nguyen 2015).
- The production plants of Coca-Cola are recognized as PRODUCT
production efficiency (Vietnam News 2014).
- Eco-Business (2011) compliments the Coca-Cola
Company for its environmentally friendly development.
- The Coca-Cola has been building a good social image
by its contribution to community projects such as
bringing safe water to children, helping victims in
typhoon-affected areas and fighting AIDS (CSRwire
2015). Moreover, the Coca-Cola - Company is well-
known for its creative and inspiring advertising
campaigns with many awards from Cannes Lions (Minh
Tri 2013).
- Coca-Cola has achieved 94.118.403 likes on Facebook
page.
Figure 4. Reproduced from: SugarStacks 2014
PRODUCT
-Safe and high-quality ingredients that meet the Coke contains much sugar which is not good for health
regulations the markets are used in Coca-Cola(The Coca- (Figure 4 shows the equivalent amount of sugar in a
Cola Company 2010). Coca-Cola can, 590-liter and one-liter bottles).
-Coca-Cola offers affordable price for Vietnamese
market, from VND169.000 to VND185.000 per box,
depending on the retailers and occasions.
-Coca-Cola is suitable for vegetarianism – a special
tradition of most Vietnamese people (The Coca-Cola
Company 2010).
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Opportunities Threats
- Vietnam is considered to be a large market for Coca- -Vietnamese consumers are more concerned over
Cola with the population of 93.421.835 in 2014 (CIA health, which is a disadvantage for the nature of
2014). containing much sugar of Coke (Euromonitor 2014).
- The GDP rate of Vietnam, which relates to purchasing -Consumers are moving from using carbonated soft
power parity, is 358.9b (ranked 39th in the world) in drinks to non-carbonated and healthy ones
2013(CIA 2014). (Euromonitor 2014).
- Consumers prefer foreign products to domestic ones,
an advantage for Coca-Cola over Vietnamese
brands(Euromonitor 2014).
- 73% of Vietnamese consumers are willing to pay more
for social-responsible brands (The Nielsen Company
2014).
- Coca-Cola only has one main competitor in carbonated
soft drinks (Pepsi) (Euromonitor 2014).

4. STDP

4.1 Segmentation

AGE GROUP 12-19 20-39 40-50

GEOGRAPHIC
Country Region North, South and Central of Vietnam, especially in Cantho, Danang, Hanoi, Haiphong,
HoChiMinh city.
Density People living in urban and rural areas. In fact, both urban and rural people drink Coca-Cola.
However, people from urban areas can consume more Coke than ones from rural, because they
tend to have higher income and easily access to the distribution channels of Coke.
DEMOGRAPHIC
Gender Male and female
Income Under 2 million VND 8 million VND 20 million VND
Allowance from parent
Occupation Students White collars Managers
Unemployed people Blue collars Supervisors
White collars
PSYCHOGRAPHIC
Social class Lower class Working class
Middle class and above
Life style Love outdoor activities Achievers
Active Calm
Innovators
Busy
Mobile- generators
Personality Want to try new things Consider for their health
Express themselves Careful
Flexible
Ambitious

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 BEHAVIORAL
Occasions Outside curriculums Need refreshment
Class break Gain appetite
Meeting friends
Work break
Regular occasion
Eating fastfood
User status Regular users Ex-users
User rates Heavy users Medium users Light users
Loyalty status Absolute Medium None

4.2 Targeting
 The Targeting Strategy
Coca Cola follows undifferentiated marketing strategy since the firm understands that their products can be bought
and used by anyone without specific segments. Coke tends to obtain the most revenue from mass marketing because
they aim at every single one of customers, which lead to the advance market with high density of buyers.
 Rationale for the Targeting Strategy
First of all, Coca Cola is categorized as convenience good, which means its customers have low loyalty status and
tend to switch to other brands. Therefore, constantly gaining customer awareness about their product is essential and
crucial. Nevertheless, gaining awareness worldwide costs Coca Cola around US$3.5 billion in 2014 (Coca Cola
company 2015). In fact, if they try to focus on each segment separately, the cost for advertising will be significantly
higher while the impact will be the same because soft drink is for everyone with slight difference from each
customer segments. In conclusion, soft drinks must be advertised regularly, the cost for advertisement is high and
customer segments are slightly different. Therefore, undifferentiated strategy is fit for their product the most (Mukesh
& Rajun 2014).

 Applying the Targeting Strategy

Through 2014, Coca Cola focus on advertisements about bonding individuals by many noticeable campaigns. For
example, “coke for everyone” video attracts over 1 million views within 5 months (Coca Cola 2014). The video can
be seen as the statement that Coca Cola product is for everyone and they do not try to separate their customer into
smaller segments. Moreover, The latest advertisement of the firm is “ Renew Tết – Having fun with each other”
Vietnam TV ads campaign, which was launched on 2015 Chinese New Year(Coca Cola Company 2014). The firm
expresses their product in the way that coke can be seen as connection tool that blur the line between individuals and
bring them closer. The campaign is fit and targets everyone despite their gender, generation and social class.

 Evaluating martket
Market potential: up to 70% of Vietnam population is from 15 to 65 year old and more than half of them below 34
year olds (Hanh 2014). Moreover, Vietnam has the significant grow rate of middle class compared with other
countries in Southeast Asia (Peter 2014). According to president of Coca Cola, Vietnam can be considered as a huge
potential market for soft drink industry (Lan 2012).

Structure: Coca Cola introduced the 300 million USD investment package in Vietnam from 2012 to 2015. The fund
is used for supporting expansion plant of Coca Cola that also included create more jobs which supply for the firm
and supporting industry (Dung 2012).

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 4.3 Differentiation
 Product
Appearance is quite important in positioning products in customers’ minds. Coke is packaged with red as the
dominant color that is considered to be the most noticeable on the shelf. Moreover, the brighter the color is, the
more attractive the products are(Bizfilings 2012). In the beverages market, Coke bottles have become internationally
recognized as an icon. The company still keeps Coke as the core product in all foreign markets but it adapts the
different local needs to change the product appropriately. In addition, consumers have worried about their health a
lot in recent year, especially people with diabetes. In fact, according to TuoitreNews(2013), Vietnam has 3.16
million people that are diabetics accounting over 5% of Vietnam’s population. As a result, it can affect the market
of beverages as well as the Coca Cola Company. Therefore, to maintain the business and take care of loyal
customer, the company has introduced Coke with many sizes that are suitable for every customer. Finally, Pepsi
cola is sweeter than Coca-Cola, which is more than 2 milligram sugar (Lubin 2012).
 Services
In recent years, customers prefer the products that make them different. The Coca Cola Company has reputation
on improving their products to satisfy consumers’ needs. For instance, they introduced the service that scanning
customer‘s name on the Coke’s cans or bottles through “Share a Coke” campaign in 2014.

 Channels
Coca-Cola principal channels are third party distributors. The combination
between advertising strategies and distributing product of the company was
successful. For example, in the “Share a Coke” campaign, to scan personal
name on Coke packs, consumers have to buy 2 packs of Coke. They
organized at more than 50 supermarkets and cinemas in 17 provinces. This
made Coke with personal names become popular and spread all over the
country(VCCI 2014). Besides, it was also presented widely on Facebook,
which is the most popular social network there. Therefore, the original Coke
had a gradual increase in sales(Esterl 2014).
In particular, Coke distribution networks deliver life-saving medicine to
rural areas in developing countries. For instance, more than 40,000
medicine kits designed to slip between Coke bottles stacked in a case have
Figure 5. Reproduced from: Bloomberg Business 2013 transmitted to the Zambian countryside(Warner 2013). Rural areas in
Vietnam may be the next destination in this program. This not only makes residents’ life better, but also expands
the market of Coca-Cola to rural areas.

 Image
The promotion of the Coca-Cola Company gets along with corporate social responsibility. For example, in ‘2nd
Lives’ campaign, the company has turned Coke bottles into water guns and sprays. It caused consumers to reuse
the plastic bottles. With meaningful and environmentally friendly toys, it easily attracted many children and
teenagers who account a large amount of Coca Cola market (Smei VN 2014). Similarly, the campaign of Coca Cola
remaining longer than others is ‘International Coastal Cleanup’. It is not only become out of date, but also be more
popular. As a consequence, the image of an environmentally friendly company makes Coca-Cola different from
other competitors.
However, there are negative responses for marketing campaigns since Coca- Cola has gotten a doubt of evading
taxation in Vietnam. According to Ho Chi Minh Tax Department, Coca-Cola Vietnam reported revenues of
VND2.53 trillion and a total loss of VND188 billion in 2010. However, the company continued to post losses
(Thanhnien News 2012). Many consumers stated that it has been a shame for Coca- Cola it is a big brand.

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  People
According to Anphabe, the Coca-Cola Company is in top 100
companies that are the best places to work in 2014 in Vietnam.
With the unique global system, employee can develop world-
class skills. In addition, the Coca- Cola Company is the leader in
changing and innovation in beverage market so their working
environment is energetic. Vietnam has young population that can
supply workforce for the company.
As billions of cases of Coca-Cola products are shipped globally
each year. The company shows that their distribution channel is
the strongest. To illustrate, they offered more than 500 brands
and 3,500 products in over 200 countries and having 700,000
system associates to deliver customers’ favorite beverages (Coca-
Cola Journey n.d).

Figure 6. Reproduced from: Thebusiness.vn 2014

4.4 Positioning

 Positioning map
High Price

Brands Price Quantity Price/Quantity

174,000
Coca-cola 24 7,250 VND/ can
VND
158.000
Pepsi 24 6,583 VND/ can
VND
Low Quality High Quality Sarsi
110.000
Chuong 24 4,5833VND/ can
VND
Duong
Low Price (sieuthitt.com)

Pepsi is the main competitor of Coke in Vietnam market for soda product. As show in the tables above, the price of
Coca Cola may slightly higher than Pepsi but they provide better quality product for their customer. Coca Cola
upgrade 4 more hi-tech and environmental friendly production chains in Vietnam, which can increase the produced
quantities and also protect the environment (vneconomy
2014).

 Value Proposition:
Positionaing Strategy: More for more

Position statement:
After 20 years entered Vietnam market, Coca-cola has built
strong brand awareness on customers mind through
advertisement espescially on Tv.
Although, Coca Cola offers higher price for Vietnam
customers compare with pepsi, they run many project which
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considerably contributes for society and environment such as Bringing water to rural area and upgrade production
line for environmental friendly production. Moreover, Coca-cola already have enough experience to understand the
demand of customer to create products that satisfied their customers and bring to them more benefit product with the
more price.

5. CONCLUSION
Doing well Not doing well

S In Vietnam, Coca-Cola and Pepsi lead the carbonated soft

drinks market. In Vietnam, Coca-Cola and Pepsi lead the
carbonated soft drinks market.
W The Coca-Cola Company doesn’t have any
products in the packaged food category.

O Vietnam market for soft drink have many potentials such as

high population with high proportion of young people which
the main
T People gain more knowledge about soft drink
cause some health issues.
S Coca Cola is categorized as convenience product which can
be bought and used by everyone. Therefore, applying mass
marketing strategy is most effective for Coke.
T Practicing mass marketing strategy which can create In recent year, Coke focus on young customers
diversity and high number of customers which may left older group of customer lack of
awareness about the brand.
D The most competitive factor of Coca Cola is their
distribution channel. They collaborate with many
wholesalers as well as build a mass distribution channel
cover every place in Vietnam.
P Practice less for the same strategy which create more
competitive advantages than others while many customers
buy convenience product considers about the price and
quantities they will have.

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6. REFERNCES
Ashley, L and Mike N 2015, ‘See Which Major Restaurants Serve Coca-Cola vs. Pepsi’, Business Insider,
7 January, http://www.businessinsider.com/which-restaurants-serve-coke-or-pepsi-2015-1, viewed 20 March 2015.
BBC 2007, ‘Vietnam's WTO membership begins’, BBC, 11 January 2007, viewed 20 March
2015http://news.bbc.co.uk/2/hi/business/6249705.stm
Bernhard, W 2013, ‘To get medicine to Africa, Health experts turn to Coca-Cola’, Bloomberg Business, 8
April, viewed 23 March 2015,http://www.bloomberg.com/bw/articles/2013-04-08/to-get-medicine-to-africa-
health-experts-turn-to-coca-cola.
BizFilings 2012, ‘Product Packaging must attract customers’, 24 May, viewed 19 March
2015,http://www.bizfilings.com/toolkit/sbg/marketing/packaging-pricing/product-packaging-to-attract-
customers.aspx.
BusinessWire 2012, ‘Coca-Cola Announces US$300 Million Investment for Strong and Sustainable
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http://sieuthitt.com/bang-gia/bang-gia-nuoc-ngot

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7. APPENDICE

Figure 1. Reproduced from: Chan & Breidenbach 2014 Figure 2. Reproduced from: Kantar Worldpanel 2013

Figure 4. Reproduced from: SugarStacks 2014

Figure 3. Reproduced from: Gyalthang 2015

Figure 5. Reproduced from: Bloomberg Business 2013 Figure 6. Reproduced from: Thebusiness.vn 2014

17
 Table 2

Table 3

18