VIETNAM NATIONAL UNIVERSITY OF HCMC

INTERNATIONAL UNIVERSITY

SCHOOL OF BUSINESS ADMINISTRATION

GROUP PROJECT – SUPPLY CHAIN OF COCA COLA VIETNAM

SUBJECT: LOGISTIC AND SUPPLY CHAIN MANAGEMENT

Nguyen Thi Thanh Nhi – BABAWE18475

Nguyen Sy Quoc Hung – BABAWE18507

Do Quoc Bao – BABAWE18513

Le Minh Thi – BABAWE18453

Nguyen Dong Ngoc Ha – BABAWE18167

Class: BABA184WE11

Lecturer: NGO THI THAO UYEN

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 TABLE OF CONTENTS
I. INTRODUCTION ............................................................................................................... 3
1. About Coca Cola Company ............................................................................................. 3
a. Coca Cola Company .................................................................................................. 3
b. Coca Cola Vietnam ................................................................................................... 3
2. Product............................................................................................................................. 4
3. Market ............................................................................................................................. 4
a. Target market .............................................................................................................. 4
b. Brand awareness ......................................................................................................... 5
4. Competitors ..................................................................................................................... 6
II. SUPPLY CHAIN OF COCA COLA VIETNAM ............................................................. 7
1. Main product of the supply chain .................................................................................... 7
2. Supply chain network ...................................................................................................... 7
a. Suppliers .................................................................................................................. 7
b. Factories ................................................................................................................... 9
c. Warehouses .............................................................................................................10
d. Distribution .............................................................................................................10
i. Transportation ...................................................................................................10
ii. Distribution channels ........................................................................................11
iii. Customers .........................................................................................................13
e. Elements in the supply chain ..................................................................................13
i. Material flow .....................................................................................................13
ii. Information flow ...............................................................................................13
III. PROBLEM ..........................................................................................................................14
1. Strengths of distribution system .....................................................................................14
2. Main problem and possible reasons ...............................................................................15
IV. METHODOLOGY .............................................................................................................16
V. SOLUTION AND RECOMMENDATIONS ...................................................................19
1. Upgrading the standard for intermediaries, reducing channel conflicts .............. 19
2. Upgrade transportation facilities, create a beautiful image for Coca Cola .......... 20
3. Rebalancing costs ................................................................................................. 21
4. Looking for new market ....................................................................................... 21
VI. REFERENCES ...................................................................................................................21
VII. CONTRIBUTION FORM .................................................................................................23

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INTRODUCTION

About Coca Cola Company

Coca Cola Company

In 1886, Coca-Cola was introduced to the public for the first time in Atlanta, which really caught

the attention of most people who enjoyed it because of its wonderful aroma and attractive colors.

It is said that Coca-Cola is the world’s leading carbonated beverage company. The company has a

massive operation network, including North America, Latin America, Europe, Asia, the Middle

East and Africa. In Asia, Coca Cola has its factories located in 6 regions, which are China, India,

Japan, Philippine, South Pacific & South Korea, and West and Southeast Asia.

Coca Cola Vietnam

Coca Cola was first introduced in Vietnam in 1960 but it was not until 1995 that Coca Cola

Indochina Private Company Limited by Share entered into a joint venture with Vinafine, a state-

owned enterprise under the Ministry of Agriculture and Agricultural Development, to form Coca

Cola Ngoc Hoi Carbonated Beverage Company in Hanoi. Chuong Duong Coca Cola Limited

Liability Company in Ho Chi Minh City and Coca Cola Non Nuoc Carbonated Beverage Limited

Liability Company in Da Nang were also established afterwards under joint venture contracts in

1995 and 1998 respectively. However, these Coca Cola joint ventures were allowed to transform

into 100 percent foreign owned enterprises only after a short time of operation. In January 2001,

the Vietnamese Government allowed the merger of three businesses in the North, Central and

South into one company called Coca-Cola Vietnam Limited Liability Company, whose

headquarters is located in Thu Duc City with 2 branches in Ha Noi and Da Nang henceforth.

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Product

Coca Cola is one of the most well-

known soft drink brands worldwide

whose history has extended to

hundreds of years. Among many soft

drink brands, Coca Cola has

successfully asserted itself thanks to

characteristic flavour, attractive image

and proximity appearance that satisfied

most people around the world. To meet

the diverse needs of customers, the

Company has produced a lot of

products with rich flavors and designs such as Classic Coca-Cola, Coke it gas (diet Coke), Sprite,

Fanta, Vanilla Coke, Cherry Coke, Mello Yello, Dasani Mineral Water, and even different product

lines of soda, fresh juice, and canned juice.

Market

Targer market

Coca-Cola is the largest soft drinks producer in the world. After years of improvement, Coca Cola

has been successful in many countries with its entire serving market strategy, and Vietnam is not

an exception. Initially, when penetrating into the Vietnamese market, Coca Cola focused on high

demand and condense population market segments as a firm foundation for its future development.

Cocacola had its headquarters in the North (Hanoi), Central (Da Nang), the South (Ho Chi

Minh City) and gradually expanded to neighboring cities. These cities are very potential for

massive Coca Cola’s products consumption after being carefully researched and evaluated by the
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company. It is expected that the Vietnamese market will continue to grow significantly in the

upcoming years, with a projected annual growth rate of 6% by 2020 and beverage consumption is

estimated to reach 81.6 billion litres in 2016, with a forecast to reach 109 billion litres in 2020

(PET Packaging in the Vietnamese Beverage Industry, 2019). Coca-Cola assessed that Vietnam

will grow significantly in the next 10 years, possibly in the top 25 of its most potential markets.

As such, Cocacola conducts market segmentation mainly by geography (focusing on big cities

with high population density and frequency of usage) and by demographics (mainly targeting

young people - the audience that has high demand). This is also the target market of Coca Cola.

Brand awareness

Coca-cola has succeeded to become the number one carbonated soft drink in the world - a leading

product that is known by more than 94% of people worldwide (Why is Coca Cola the most

recognized brand?, Brandsvietnam, 2015). Coca Cola seeks to build a symbol of trust, inherent

uniqueness, and great refreshment. The company promises to “bring about refreshment to the

customers” by continuously searching for new markets and focusing on public communications.

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Competitor

The beverage market is very competitive as many soft drink companies are making a lot of effort

to win the customers’ loyalty and dominate the market share. The competition between Coca Cola

and Pepsi to take over the 1st brand position in the beverage market has never stopped. According

to Statista, Coca Cola’s U.S market share in 2019 was 43.7 percent, whereas Pepsi only amounted

for 24.1 percent. Pepsi is produced by PepsiCo, an American multinational corporation

manufacturing drinks for a few other Coca-Cola competitors. The Pepsi story began in 1893 when

Caleb Bradham started to sell it in his drugstore as Brad’s Drink, the drink that would make

digestion easier. Thirty years later, facing bankruptcy, the company was sold to Charles Guth.

After the change of the company’s management, Pepsi’s profits went up. Soon, the brand was

renamed Pepsi in 1961.

In 1991, Pepsi Group came to Vietnam for the first time with high quality products and slightly

changed taste to better suit Vietnamese consumers. Over nearly 15 years of operation, Pepsi has

become a familiar soft drink brand to Vietnamese people. PEPSICO Vietnam International

Beverage Company was established on December 24, 1991, formerly a joint venture company

between SP.Co and Company Macondray - Singapore. On April 28, 2003 Pepsico Global

Investment acquired a 3% stake in Vietnam. International Beverage Company became a 100%

foreign owned company and renamed it PEPSICO Viet International Beverage Company. The

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company has 2 factories in Hoc Mon and Dien Ban that are fully equipped with automatic bottling

and canning systems, and quality inspection system for food hygiene to reach the advanced level

in the world. PepsiCo Vietnam main products are soft drinks such as Pepsi, 7-up, Mirinda, Lipton,

Sting,etc. and snacks such as Frito Lay, Cheetos, Aunt Jemima waffle,etc. that meet international

standards and satisfy domestic and export demand.

SUPPLY CHAIN OF COCA COLA VIETNAM

Main product of the supply chain

To understanding the supply chain of this company, we are going to focus on the company’s main

product, which is Coca-Cola Classic. It has the name “Coca-Cola” due to being derived from the

Coca leaf and Cola from kola nuts. The ingredients inside this drink includes carbonated water

(around 90% of Cola is water and it gives the drink “bubbles” or “fizz”), sugar, caramel color,

phosphoric acid, caffeine (contained in kola nut) and last but not least is natural flavors.

Supply chain network

Suppliers

Raw materials are an important component in commodity manufacture. The efficiency of the

production can be partially ensured by monitoring the quality of the materials provided by our

suppliers. Coca-Cola Vietnam has carefully selected the suppliers, including product consistency,

company operating modes, company status,etc. Moreover, Coca-Cola Vietnam also works with

hosts of local vendors. Raw materials are delivered to Coca-Cola manufacturing plants from four

main suppliers, which are Thanh Thanh Cong Bien Hoa Joint Stock Company, Dynaplast

Packaging Limited Liability Company, Bien Hoa Packaging Joint Stock Company (SOVI), and

Stepan Company.

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 Thanh Thanh Cong-Bien Hoa Joint Stock Company is one of

the most well-known sugar cane producers. The Company has

eight factories throughout Vietnam and it provides a huge

amount of sugar for Coca Cola Company. Normally, there

would be 10.6 grams of sugar in 100ml of Coca-Cola Classic.

Dynaplast Packaging Limited Liability Company (Vietnam) belongs to Dynaplast Group, the

Southeast Asia's leading producer of hard plastic packaging, specializes in manufacturing and

selling plastic bottles for various industries. For several years, it has supplied high-quality plastic

bottles for Coca-Cola. The Company has its

headquarters located at No. 20, Road No. 8,

Vietnam - Singapore Industrial Park, Binh

Hoa Ward, Thuan An City, Binh Duong

Province, Vietnam.

Bien Hoa Packaging Joint Stock Company (SOVI) is the high-grade

carton boxes provider for Coca Cola Vietnam. Established in 1968, Sovi

has became the 1st packaging supplier in Vietnam with the annual growth

rate from 25 to 30 percent.

Stepan Company provides cola leaf for Coca Cola companies around the world, including Coca

Cola Viet Nam. Stepan’s headquarter is located in the Greater Chicagoland area (Northfield, IL).

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Factory

Coca Cola production processes are subjected to stringent management, strict inspection and

follow the highest requirements of the Vietnamese Government and Ministry of Health, as well as

its own quality regulations. Coca Cola Vietnam received multiple prestigious quality

accreditations after fulfilling its dedication to quality, including ISO 9001:2015 for Quality

Management System, ISO 14001:2015 for Environment Management System, OHSAS

18001:2007 for Health & Safety Management System, FSSC 22000 V4 for Food Safety System,

and KORE & ATR for the Coca Cola Company's policies and practices on management system.

Efforts to save electricity and water, as well as reduce noise, wastewater, and pollution, have both

contributed to Coca-Cola’s LEED (Leadership in Energy and Environmental Design) certification

for the plant. There are Coca Cola factories 3 in Vietnam, which are located in Ho Chi Minh City,

Hanoi, and Da Nang.

Coca Cola Factory, Hanoi, Vietnam

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Warehouse

Once the Coca Cola bottles are finished manufactured at the factory, they will be conveyed by

forklift drivers to fill the storage shelves in the warehouses and ready for delivering to the

consumers. According to the Coca Cola Company, Toyota forklifts are the most efficient

transportation for shipping, filling, and unloading merchandise in warehouses. The three main

factories in the North, Central and the South Vietnam ensure quick response to the massive demand

across the country. Coca-Cola goods will be sold to retailers, main accounts, and wholesalers

through these three delivery centers.

Distribution

Transportation

One of the Vietamese leading suppliers of transportation services to both domestic and

international businesses is Van Cong Thanh Transportation - Trading - Service Limited Liability

Company. Currently, the firm is serving as the primary transport provider for Coca Cola Beverage

Vietnam.

Binh Vinh Corporation is an organization that specializes in transportation services. The business

is headquartered in Da Nang, and it has branches in Ha Tay, Vinh, Nha Trang, Tien Giang, Thu

Duc, Can Tho, and Hoc Mon to have more ways to

satisfy the needs of clients, on time shipping, and

reliable distribution. The company's transportation

operations are primarily working with several

major corporations, including Coca Cola Vietnam

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Company Limited, in the North-Central-South areas. Coca-Cola is sent from the company's factory

to the distribution outlets.

Another transportation partner of Coca Cola is A Dong

ADG J.S Company, whose main function is serving

plastic resin, transport and logistics. In 2017 the company

started to cooperate with Coca Cola Viet Nam in transport.

Their headquarters is located in Ho Chi Minh City.

Distribution Channels

Coca Cola has developed its distribution channels in several ways. The first one is allocating Coca

Cola products to supermarkets and key accounts, from which the customer will buy Coca Cola

bottles. The company has distributed its product to several large supermarkets throughout Vietnam

such as AEON Mall, Coop mart, Lotte mart, etc. Key accounts are businesses or organizations

which typically purchase goods in vast amounts on a daily basis and have the potential to bring

about profit for the company such as cinemas or fast food chain stores.

The second channel has the Coca Cola products distributed through the chain from wholesalers to

retailers and then to the consumers. Wholesalers are responsible for operating and distributing

products to lower-level dealers in their region, hence extending the products regions’ reachable

possibility. Coca Cola Company has a crowded wholesalers network, enlarging from North to

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South. Some of the wholesalers are Vifotex and Bach Khoa Distribution in Hanoi, Binh Ha Duy

Company and Siam Super Stream Vietnam in Da Nang City, and Fimexco and Quynh Anh Service

& Trading Company in Ho Chi Minh City. After taking over the Coca Cola bottles from the

company’s warehouses, wholesalers would sell these products to the retailers, which are groceries,

restaurants, cafe shops, bars, pubs,hotels, resorts,etc. Because the retailers are the intermediaries

that directly serve the end customer and focus on the purchasing habit of people, therefore they

would have a better understanding of customer’s needs and preferences.

According to the intermediary division, Coca-distribution Cola's agent rights would belong to the

form of commission middlemen who do not own the products, but in practice, these exclusive

rights are enjoyed at a discount (commission) for owning goods. According to the company's

rationale, this strategy would have a strong motivation for monopolists to improve their production

functions because it impacts the economic advantages they get.

For each form of channel participant, the organization employs the required payment process.

Depending on their arrangement, small retailers or other end users will pay the wholesaler directly

in cash at the time of distribution or at the end of the month. The main account will pay for Coca

Cola via bank transfer for wholesalers and supermarkets. Prior to 2009, payments were made

through Vietcombank, but since January 2009, the transaction has been moved to SHBC. The

company's debt capability is 10 million a week. If the wholesaler does not pay, the wholesaler

would no longer be able to put an injunction against the company.

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Customers

Customers are a vital component of the supply chain because of the revenues and profits they

provide to the business, which helps to strengthen the supply chain. As a result, Coca-Cola has

always strived to provide various product experiences with the best quality, and always looks

forward to receiving customers feedback for further enhancement. Coca Cola believes that

everyone can be a potential customer, therefore Coca Cola bottles are made in different sizes and

packets with various prices, making it accessible to all walks of life.

Elements in the supply chain

Material flow

The commodity flow is a one-way flow that entails the delivery of materials from producers to

consumers. Many domestic and international manufacturers provide raw materials such as plastic

bottles, sugar, and Coca leaves. Binh Vinh Corporation, Van Cong Thanh Transportation - Trading

- Service Limited Company, and others have been contracted by Coca-Cola to assist in the delivery

of products to distribution networks. Components of the supply chain have their own function, but

they are all connected by an inseparable chain.

Information flow

Information is seamlessly passed between channel members. The firm will provide information on

product types, weight and quantity, costs, payments, incentives, and so on to sales middlemen as

well as end users. The corporation frequently provides input from the channel's other participants

in order to encourage or identify and resolve its shortcomings. Information systems can be

streamed from one member to another member (e.g. from Coca Cola to a wholesaler) or to another

non-successive member (wholesaler to the end-consumer) through regional or regional monitors

for new policies, distributor inventory, retail customer lists, etc.

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Coca Cola Vietnam keeps the processes operating smoothly and effectively by responding quickly

to complaints and ensuring the complete participation of individual servers and software, taking

responsibility for all factories' infrastructure systems, as well as the development and operation of

new systems and services such as ERP SAP, Margin Minder, and Sales Force Automation SFA.

Coca-Cola Vietnam uses SAP ERP to control sales process, including income analysis, benefit

estimates, etc.; customer relationships such as management of customer reviews and other

communications with customers; supplier relationships; warehouse management; finance

management and so on. Margin Minder clear out master data of channel, Customer Group, SR

classification,etc. to create a new bookmark for cross-functionality. SFA helps all area

administrators in resolving SFA process problems, recording and tracking bugs and CR in the Jira

system, planning and supporting change interface projects in Vietnam.

PROBLEM

Strengths of distribution system

Coca Cola has developed a large distribution system in Vietnam, with scope that covers the entire

market and all types of customers, which is quite different from target demographics of other

brands or products. People drinking Coca Cola products can be seen everywhere. Coca Cola

Company is actively searching and implementing new products in order to compete with rivals

like Pepsi. The most successful exploitation of product ideas is focused on the coordinated

activities of departments such as Marketing, Distribution, and Production. The first thing Coca

Cola must do is claim its market role among the countless new products of other brands that are

constantly being introduced to attract consumers, but if Coca-Cola only builds its brand image, it

is easy for a brand's long-term ambitions to fall apart. Coca Cola has responded by creating a

unique distribution system with its own size and rigorous design process. Coca Cola's current status

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is a commodity of global and foreign brands has been elevated thanks to a global distribution

channel structure that, as its name suggests, covers the global market. Advertising, promotion,

discount, and other similar measures have only short-term benefits because they are easy to be

duplicated. However, the distribution channel is distinct; it can be considered exclusive to each

corporation. Businesses that have the distribution channel in hand often have clients, who are the

lifeblood of the company. The strength of Coca-Cola is not only the brand of its products, but also

its unique distribution system in the world.

Main problem and possible reasons

Aside from its strengths, each company or business will have gaps in its management and

supervision. The first consideration is about the transportation fees. The cost of distribution

remains very high, particularly the cost of delivery workers, direct distributions, and small

distributions. And now the company is correcting the situation by laying off employees,

particularly the small direct salespeople assigned to the distributor in that polar area's indirect

channel system. Responsible for jobs such as customer service, customers, contract signing,

stockpiling products, etc, now has only one employee to manage the distribution of jobs and

product intake, which leads to work overload and reduces performance efficiency.

Relationships with channel members are another "difficult" and painful aspect of distribution.

Channel members can easily process business contracts once a good partnership has been formed.

Simultaneously, immediate implementation of decisions, price adjustments, and promotions will

be far more effective. However, many conflicts occur within the channels, resulting in numerous

disadvantages for the company. Due to a lack of clarity in the division of responsibilities and

forces, there is a battle for customers among different vertical channels. A recent crash happened

in which a superior distributor used his power at the right time when Coca Cola launched a

customer care campaign and installed refrigerators for subordinate distributors and retailers. The
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dealer requests that the wholesaler send a list of retailers, along with a list of quantity and

refrigerating installations. However, some distributors took advantage of their control to contact

and sell directly with the manufacturer rather than via the wholesaler in order to benefit from the

marginal price. Any of these distributors' employment is only recognized for their immediate

personal benefit, which has severely harmed Coca-Cola's image and created disputes between

wholesalers and higher-level distributors. Conflicts in the channel may also arise as a result of

conflicts of interest, especially those arising from promotions. Dealers or distributors may consider

how much to allocate during the promotion period in order to be competitive with distributors or

dealers nearby after the promotion period has ended.

Comprehensive distribution channels with the aim of achieving product range, but not uniformly,

with market coverage density and an emphasis on small market areas that are not served such as

stores, entertainment areas, and festivals, etc. has not been researched to determine the best

distribution method. Mostly, delivery is still similarly rampant. Coca Cola sells products to general

agents in accordance with the process. Agents receive products from the general agent. The

products are sent by the agent to the retailers, who then sell them to the street vendors. With such

a process, the price of the product will be pushed up compared to the original starting price. So

when traveling, it is more difficult for street vendors to sell their goods than the grocery stores in

that area.

METHODOLOGY

Covering problem method, which has been introduced in the Logistic and Supply chain

management course, is applied to define new main distributors among Coca Cola’s existing

distribution channels. This method aims to locate specific places that are able to meet the crowded

demand of Coca Cola bottles with the smallest total delivery time and shipping cost.

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First of all, we listed Coca Cola’s representative wholesalers throughout Ho Chi Minh City. These

distributors are selected based on scale, reliability and transparency (all the information is

displayed on the wholesalers’ website or other reliable sources).

No. Name Address

1 A Coca Cola Company 485 Hanoi Highway, Linh Chieu Ward,

Thu Duc City

2 B RaKhoi Wholesale 590 Lien Phuong Street, District 9, Thu

Duc City

3 C Hoang Khang Coca Cola Distributor 19 Road No. 5, Cat Lai, District 2, Thu Duc

District

4 D Coca Cola Store 440/6 No Trang Long Street, Ward 13,

Binh Thanh District

5 E FMCG Viet 30 Road 8, Cityland Garden Hills

Residential Area, Ward 5, Go Vap District

6 F Khuong Duy Import & Export No. 44 / 3A13 TTH10 Street, Quarter 3,

Company Limited Tan Thoi Hiep Ward, District 12

7 G Quynh Anh Trading and Service One 270b Ly Thuong Kiet Street, District 10

Member Limited Company

8 H Hiep Nhat Coca Cola Wholesale 173 Khuong Viet Street, Phu Trung Ward,

Tan Phu

9 I iWater Limited Liability Company 65/9 Cao Xuan Duc, Ward 12, District 8

10 J Hoang Lan Coca Cola Distributor 55 Temple Street Binh Dong, Binh Hung

Hoa A, Binh Tan

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 Then we used Google map to define each of the distributors’ locations and the distance between

each other. The results are shown in the map below and the number unit is minute.

A B C D E F G H I J
A 0 17 24 23 23 39 47 56 49 66
B 17 0 12 30 40 56 58 62 44 72
C 24 12 0 18 36 63 46 50 32 60
D 23 30 18 0 18 47 40 51 26 54
E 23 40 36 18 0 29 24 33 38 43
F 39 56 63 47 29 0 35 44 49 35
G 47 58 46 40 24 35 0 9 14 19
H 56 62 50 51 33 44 9 0 18 10
I 49 44 32 26 38 49 14 18 0 28
J 66 72 60 54 43 35 19 10 28 0
Maximum 66 72 63 54 43 63 58 62 49 72
Single
location E
Maximum
time 43

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 Since Coca Cola are dealing with many distribution
Two
C G
locations channels, including distributors and wholesalers,
A 24
B 12 therefore the management task would be intensive.
C 0
D 18 Base on the covering problem method calculation,
E 24
there are two ways that Coca Cola should consider
F 30
G 0 to reduce its distribution system but still ensure the
H 9
I 14 operation’s efficiency. The first table compares the
J 19
shipping time from each location to others, and
Maximum
24 30
time FMCG Viet has the lowest maximum delivery time,

therefore we suggest that Coca Cola should focus on working directly with FMCG Viet and then

the FMCG Company will responsible for distributing Coca Cola’s products to other places and the

maximum delivery time would be 43 minutes. Or if Coca Cola Company worry that one

distributors cannot handle the massive amount of Coca Cola’s products, the combination of two

distributors, which are Hoang Khang Coca Cola Distributor and Quynh Anh Trading and Service

One Member Limited Company, are proposed. With this distribution channel, the maximum

delivery time would be 30 minutes, which is 13 minutes lower than that of single location.

SOLUTION AND RECOMMENDATIONS

Upgrading the standard for intermediaries, reducing channel conflicts

Currently in Hanoi, each Coca Cola exclusive agent is only responsible for distributing goods to

1200 retailers. However, the population density is increasing, there are also more and more grocery

retailers and the distance between them is shortening. So if an exclusive agency only works in a

narrow geographic area, waste of management and conflicts between agents would arise. To

alleviate this situation, Coca Cola should reduce the number of agents and increase the retail stores

they are in charge. It is essential to improve and upgrade their agents in terms of warehouse and
19
management so that they have good resources to execute smoothly and effectively. This effort not

only helps Coca Cola to reduce management costs but also reduces a lot of conflicts among the

channels.

Moreover, Coca Cola needs to come up with policies to support and encourage retailers to

cooperate with each other. Reality shows that there must be strict contracts that regulate what

activities to be done and which activities must have the consent of the company. Besides, there are

separate discounts as well as bonuses and penalties for the members whose performance is good

or not. This helps to motivate channel members to cooperate better. The most important thing is

to help retailers aware of the benefits of cooperation as well as active participation. Activity that

is widely used is to regularly hold customer conferences, which motivate the relationship among

retailers, make it get better and better, and at the same time create unity in the implementation of

company activities. In addition, the sales and marketing as well as business development team

need to do their best in convincing, answering questions and receiving feedback from retailer

members if there is any question or issue as soon as possible. If the cooperation wants to take place

effectively, the inspection and supervision between channel members must be strictly carried

out. This well done channel is also very beneficial for the company to monitor and adjust to the

fast changing market.

Upgrade transportation facilities, create a beautiful image for Coca Cola

During the past time, Coca cola still used relatively rudimentary means such as trolleys to deliver

goods to small retail outlets. Using a trolley creates a feeling of sleazy, unprofessional and has

many disadvantages to the image of Coca Cola while Coca cola is a famous global company in the

world. Therefore, Coca Cola Vietnam should upgrade its vehicles to create a beautiful image in

people's mind. Motorbikes can be used instead of trolleys. Besides, it is possible to create

professional and eye-catching means of transport for Coca Cola by printing logos and using the
20
main color of red to decorate motorcycles and freight cars. Moreover, some additional forms of

supply can also be considered such as Premix machine and plastic bottle with 19 liter extraction

nozzle.

Rebalancing costs

From the end of 2003 onwards, the company has always maintained a direct sales team, regularly

taking care of customers such as cleaning refrigerators, solving arising problems. However, due to

cost cutting, this activity no longer exists, which causes complaints and affects the relationship

between distributor and company. Therefore the company should reconsider and find a better

solution instead of cutting down staff.

Looking for new market

Over the past few decades, consumers have constantly changed their shopping habit, especially in

terms of shopping behavior on e-commerce channels and websites and businesses have to find

ways to adapt to this trend. With the support of ever-evolving technology, it is easier for

consumers to find and purchase items from online websites, e-commerce markets and mobile apps

instead of following commercial traditional trade models. In order to create more creativity in

refreshing customer experience on online platforms and stimulate customer demand, Coca Cola

should enter this new type of market with so many popular platforms such as Tiki, Shopee, Lazada,

Grabmart, etc.

REFERENCES

Evaluating the distribution channels of Coca Cola, Course Prject, National Economy University

Coca Cola Vietnam website:

https://www.cocacolavietnam.com

https://www.coca-colacompany.com/brands

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PETnology - US company specialising in media and events related to the PET plastic industry,

2019

https://www.petnology.com/competence-magazine/news-details/pet-packaging-in-the-

vietnamese-beverage-industry.html

Brands Vietnam, Why is Coca Cola the most recognized brand?, 2019

https://www.brandsvietnam.com/8122-Vi-sao-CocaCola-la-thuong-hieu-duoc-nhan-biet-nhieu-

nhat

Brands Vietnam, Overview ‘The battle of the century 'between Coca-Cola and Pepsi, 2015

https://www.brandsvietnam.com/8212-Toan-canh-Tran-so-gang-the-ky-giua-CocaCola-vs-Pepsi

MBA Trong tầm tay, Chủ đề Marketing, NXB Trẻ, Tác giả: Alexander Hiam. Charles D.Schewe

Thanh Thanh Cong Sugar Limited Liability Company Website

https://www.ttcsugar.com.vn/

Dynapack Asia Website

http://dynapackasia.com/services/

Bien Hoa Packaging Joint Stock Company Website

http://www.sovi.com.vn/

Van Cong Thanh Transport – Trading – Service Limited Liability Company Website

https://www.vancongthanh.com/

Binh Vinh Corporation Website

https://binhvinh.com/van-tai/

Investment Bridge Magazines, Eight Vietnamese companies join the supply chain of Coca-Cola,

2017

https://nhipcaudautu.vn/doanh-nghiep/8-cong-ty-viet-nam-gia-nhap-chuoi-cung-ung-cua-coca-

cola-3320814/
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CONTRIBUTION FORM

Nhi Thi Hà Hưng Bảo

Effort made 100 100 100 100 100
Time spend 100 95 100 100 100
Reliability (complete task on time, show up in meeting,etc) 100 100 99 100 100
Quality of content 100 99 99 98 98
Teamwork 100 100 100 100 100

Nguyen Thi Thanh Nhi Le Minh Thi

BABAWE18475 BABAWE18453

Nguyen Dong Ngoc Ha Nguyen Sy Quoc Hung

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Do Quoc Bao
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