HANOI UNIVERSITY

FACULTY MANAGEMENT & TOURISM

PEPSI
MARKETING
RESEARCH
Ha Noi, December 2021
 HANOI UNIVERSITY
FACULTY MANAGEMENT & TOURISM

Marketing Plan
P E P S I L E M
O N Z E R O
CALORIES

Lecture: Mrs. Phan Thi Kim Ngan

Tutorial: Mrs. Le Minh Hang

Group's members:

Bui Lan Anh - 1904010002

Le Thi Kim Chi - 1904010017
Nguyen Thi Tu Linh - 1904010062
Nguyen Thi Hong Thom - 1904010103
TABLE OF
CONTENTS
PEPSI

I.Summary executive

II.Company introduction

III.Current marketing situation

IV.SWOT analysis

V.Main issues

VI.Marketing objectives

VII.Marketing strategy

VIII.Action program

IX.Illustration

Conclusion
 I.SUMMARY
SUMMARYEXECUTIVE
EXECUTIVE

In recent years, the economy in Vietnam is on a strong growth

momentum, the demand for goods is getting higher and higher.
Along with that is the advancement of science - technology, especially
information technology. Thanks to this technology, people can access
more information about products, from which they have more choices.
Because of favorable conditions, Vietnam is attracting a lot of foreign
investment. The top successful companies in the world, for them
marketing is not only a function in business activities but also an activity
to meet and satisfy the needs of customers.
Pepsi – a carbonated beverage brand that is quite familiar to
Vietnamese users for many years. Due to the increasing and increasingly
complex consumer demand for products along with the need to reduce
fat and reduce sugar in the diet today, Pepsi most recently launched a
new product, Pepsi lemon. zero calories to meet customer demand to
attract more customers and has received positive feedback. So why has
Pepsi gained a certain support and position in the hearts of Vietnamese
people over the years?
This research will help people better understand the Pepsi brand and
their new campaign to attract customers. Pepsi has implemented many
effective marketing strategies aimed at customers. Our team will analyze
the current marketing situation of Pepsi, the internal environment of the
business, and analyze the SWOT model. Therefore, it points out the main
problems Pepsi is facing, and makes some recommendations on
marketing goals, marketing strategies and action plans.

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II. COMPANY
INTRODUCTION

PepsiCo is one of the world's leading food and beverage companies whose
product portfolio includes a wide range of enjoyable foods and beverages
around the world. PepsiCo products are enjoyed by consumers over one billion
times each day in more than 200 countries and territories around the world,
generating over $67 billion in net revenue in 2019 which is driven by a
complementary food and beverage portfolio.
In terms of mission, Pepsico strives to create customer satisfaction with every
interaction. Pepsico's vision is to be the global leader in convenience and
beverages by winning with purpose - to win sustainably in the marketplace and to
integrate purpose into all aspects of the business. (2021, About the Company)

Pepsi is a well-known product manufactured by the

PepsiCo corporation. In the early twentieth century,
Caleb Bradham, a pharmaceutical salesman in New Bern,
North Carolina, invented Pepsi. From very ordinary
beginnings, Pepsi survived two bankruptcies and became
the second largest beverage company in the world.
Today, Pepsi's global logo is one of the best known
around the world. Pepsi-Cola soft drinks can be found
everywhere in more than 195 countries around the world.

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III. CURRENT MARKETING
SITUATIONS

A. Internal Environment

1. Current Business Performance

Regional Head

Country Manager

Franchise Marketing Operating Chief Financial

Director Director Director Officer

Franchise Brand Manager Operation Planning

Manager (Cola) Manager Manager

Franchise Brand Manager Controller

Manager Operation
Flavor
Manager
Brand Manager Business
Franchise
(Aquafina) Analysis
Manager
Manager
Sale
Development
Manager

Pepsico’s management structure

PepsiCo is the second-largest food and beverage business in the world,

behind Nestlé (Wiki). The company offers a diverse array of products. In
more than 200 countries and territories across the world, its goods are
consumed more than one billion times a day. Frito-Lay, Gatorade, Pepsi-
Cola, Quaker, and Tropicana are among PepsiCo's complimentary food and
beverage brands, which reported more than $70 billion in net sales in 2020.
PepsiCo's product portfolio includes a wide range of tasty foods and
beverages, including 23 brands with estimated annual retail sales of more
than $1 billion each. (Product Information, 2021)

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 The food business accounted for
54% of the company’s
sales, while drinks accounted for
46% (2020). In 2020, the
46% company represented
54% approximately 22%, 2% higher
than Coca Cola, of the U.S liquid
refreshment beverage category
by estimated retail sales in
measured channels, according to
Information Resources, Inc.

Food Bevarage

However, The Coca-Cola Company has a significant carbonated soft drink

(CSD) share advantage in many markets outside the United States
(2020).With a brand value of $18.2 billion, PepsiCo is ranked #36 on
Forbes' 2020 list of the most valuable brands (Swant, 2020)

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A. Internal Environment
2. 4Ps Review

Pepsi is a famous beverage brand in Vietnam as well as in the world. One of

the things that makes this brand successful is that Pepsi has implemented an
effective 4Ps Marketing strategy with product strategy, pricing strategy, the
distribution system, and product advertising campaigns for products suitable for
target customers in Vietnam.

Pepsi is a beverage product that aims to

provide customers with a sense of refreshment,
joy, and youth through the use of two types of

a. Product
bottled and canned drinks. Furthermore, in
addition to providing soft drinks, Pepsi created

l of products
a.1. Lev e the Pepsi slogans "Exciting with Pepsi" and "Ask
for More" in other countries.

At the second layer, the actual product includes

its features, design, packaging, quality level and
brand name.

Features: Pepsico came up with the exact ingredients, then mixed it with a modern technological
process. The manufacturer wants to make sure that opening a bottle or can of Pepsi at home
also makes customers feel cool, refreshed, and excited just like drinking it right away. This type
of carbonated drink is actually a soft drink with different flavors added with gas.

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 Design: Pepsi logo has a white stripe in the middle
of the blue and red circle, 3 colors: blue, red, white
are the colors of the US flag. The open circle
symbol represents movement and continuous
circulation. Product design includes: logo, Pepsi
brand name, and important information such as
production date, expiry date, product ingredients,
calories, manufacturer and nutritional information,
etc. (2)

Packaging: Pepsi's packaging includes:
glass bottles, plastic bottles, cans with
different capacities. In order to attract
customers' attention to the new
product, Pepsi lemon zero calories have
a prominent outer shell, which is
different from Pepsi's original. From the
traditional blue color, now Pepsi lemon
zero calories have an extremely
personal matte black crust. With its
unique matte packaging and recyclable
can design, it is both easy to store and
easy to carry anywhere, while also
protecting the environment
Quality Level
Although Pepsi original has been branded for many
years, it is not good for health, so the sales of
carbonated soft drinks are only third in the bottled
water category. Therefore, certain products with
special features such as lower calories, healthier are
a necessity to innovate in a saturated, non-
disruptive industry. That's why Pepsi launched a new
product Pepsi lemon zero calories with the message
"no calories, fresh lemon flavor". Pepsi lemon zero
calories is a harmonious combination of refreshing
lemon taste and its sweetness is created by
sweeteners Aspartame E951, Acesulfame K, and
Sucralose - 3 sweeteners containing extremely low
calories, it helps you easily control the amount of
sugar and calories absorbed into the body. Not only
does it cool down, but it also provides a long-lasting
and healthy feeling of refreshment (1). So the
company had to check the quality of the products
available from the factory to the retail stores
because they understood that providing a bad
product to the consumers could lead to their
discredit. However, Pepsi needs to create many
different flavors to diversify its product chain in the
future

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The last layer is an augmented product. In order to attract more attention of consumers, Pepsi
has organized a large number of campaigns for example BLACKPINK - one of the leading music
groups in Asia has officially become the spokesperson of Pepsi, spreading the voice of young
people – “Dare to say No”, encouraging the “Gen Z” generation to overcome all limits, inspire to
live fully for their passion and to be true to themselves. This is a campaign using KOLs to
advertise and PR for Pepsi's strong brand. Besides, Pepsi is also the main sponsor for Rap Viet -
the hottest program today. Through the program, Pepsi has succeeded in improving brand
awareness and attracting customers

a.2. Product classifications

Pepsi beverage is assessed as a convenience

product because customers could purchase them
easily and promptly in many places, including
supermarkets, markets, and convenience stores.
Taking advantage of PepsiCo’s supply chains,
Pepsi has spread its products to most cities and
towns in Vietnam.

Maturity – 1980s – Present day. Since

the 1980s Pepsi has been in the
maturity stage of the product life cycle,
helping the parent company earn
almost $20 billion in annual revenue.
Objectives: At this stage products are
most profitable, which is why PepsiCo
are likely to consider Pepsi as a Cash
Cowand aim to make as much profit as
possible from the brand.

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Product: Now that the product is well
established, Pepsi is launching more and
more new products, which are more suitable
to the needs of consumers, for example
Pepsi zero sugar, Pepsi lemon zero calories,
entire ranges can be introduced that act as
extension strategies to prolong the most
profitable stage of the product's life.

Place: The product now has a global

distribution to penetrate emerging economies.

Promotion: The primary focus of Pepsi's

advertising in adulthood was to differentiate
the brand. This is demonstrated through
Pepsi becoming the main sponsor of Rap
Viet season 1. It has positioned the product
as a younger and edgier alternative to Coca-
Cola.

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 b. Price

b.1. Pricing Strategy

In terms of considerations in setting the price, Pepsi used competition-based pricing to gain
a competitive advantage in the Vietnam market. The price of Pepsi is nearly similar to its
competitor like Coca Cola and tries to adjust the price to suit customers in urban and rural
areas. Because Pepsi does not sell products directly, but chooses to sell products through
intermediaries, the pricing strategy that Pepsi chooses for the new product is discounted
pricing. For customers, as the container size rises, the discounts also rise. Thus a 2 litre bottle
of Pepsi original will be relatively cheaper compared to a 330ml cans. For distributors, the
discount is based on the quantity as well as the payment terms. The better the payment
terms or the higher the quantity, the more is the discount given thereby keeping the
distributor motivated. Its price is about 3 - 8% lower than others. However, the price of Pepsi
lemon zero calories is higher than that of Pepsi original and is on par with similar substitutes,
as detailed is updated below:(3)

b.1. Pricing Strategy

Pepsi is in an industry which is dominated by the two biggies – Coca cola and Pepsi. Thus the
pricing of entering a price war. Product line pricing: Pepsi provides various product lines for its
customers. The 5 main product lines of Pepsi are Pepsi Cola 300ml, 330ml, 390ml, 1.5l and
Pepsi lemon zero calories 330ml. Their costs vary from 8,000 VND to 20,000 VND,
compared with Coca Cola, on average, the price of bottled cola water varies from 7,000
VND to 25,000 VND; 7UP’s prices fluctuates from 7,000 VND to 21,000 VND.

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c. Place

With strong financial potential and strong economy, Pepsico has approached Vietnamese
consumers through intermediaries and supermarkets. PepsiCo does not directly bring its
products to consumers but has built a wide distribution network as shown in the diagram
above.
The distribution strategy by direct-to-store delivery helps them take full advantage of the
available presence and presence in the FMCG market anytime, anywhere. This helps
businesses save costs and does not affect scaling.
To be specific, the corporation uses a mainly administered sort of VMS because Pepsi has
distributed its products through major supermarket channels such as BigC, Metro,
Co.opmart, etc. Besides, Pepsi has also expanded its distribution channel system by
cooperating with agents and fast-food restaurants such as Lotteria, KFC, and McDonald's.
Pepsi's distribution system is always expanding to ensure that the product can reach
consumers in all geographical areas. Consumers can access Pepsi products easily.

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d. Promotion
d.1. promotion mix

Since
Advertising: social networking became a trend,
advertisements for Youtube, Twitter, Instagram, and FB Ads have
been deployed on a continuous basis in modern marketing
channels such as social networks and the Internet, reaching young
customers in a new way and drawing significant attention to this
customer group. The goal is to increase customers' memorization
and recognition of new products and then gradually guide them
to try and experience the product for the first time. Furthermore,
Pepsi is promoting consumer connection through social
networking sites by seeding articles from KOL and famous
Vloggers that are distributed across social networking sites and
receive a lot of interest and interaction and the main messages
are conveyed very clearly and in detail.

Public Relations: At the beginning of August 2020, Pepsi

became the main sponsor of the Rap Viet program. This is a
Rap game show in which many famous Rap singers,
including Suboi, Binz, Karik, Wowy, and Justatee, participate,
attracting the attention of many people, particularly young
people. With the message for young people always having
the keywords: Passion, substance, boom, youth, living life to
the fullest, etc Rap Viet is a great choice to increase brand
awareness for Pepsi's new product line: "Pepsi Lemon Zero
Calories" with the slogan "Sang khoai tot dinh, bung het chat
minh". This is a method of utilizing new materials:
transforming Rap into a voice that expresses the
"personality" of the brand. Pepsi has transformed Rap into an
Sales promotion: Pepsi is known effective communication tool, clearly displaying the
as a smart marketer, always message that Pepsi wishes to convey to customers.
offering promotions and discounts.
They promote their products by
regularly handing out coupons,
giving gifts. For example, when
customers buy a large number of
products, they will be given gifts or
discounts.An extremely impressive
promotion that attracts the
attention of many people is to buy
"Pepsi lemon zero calories" and get
a free Rap Viet thermos bottle.


d.2. Developing effective

communication

Developing effective communication

Identify the Pepsi is especially focusing on children and young
1 target audience people with the age ranging from aged 8-35 who lead
an active, enthusiastic, energetic lifestyle.

According to Pepsi's own style, Pepsi always wants to

Determine the
position itself as the Top of Mind brand in the minds
2 communication
of its customers. With customers who are dynamic,
objectives
young, and resonate in 2020.

The music market changed, Rap became a new

communication tool. If Rap has the ability to express a
person's personality, the young generation can
completely become the voice expressing the
"personality" of the brand.
This music is especially suitable for brands with
personality and towards a liberal and active lifestyle
3 Designing a
such as Pepsi, Grab, Momo, .... And perhaps that is
message
also one of the reasons Pepsi has sponsored the Rap
Viet 2020 program with the slogan: "Extremely
refreshing, unleashing all your qualities". Through
that message, Pepsi wants those who love rap, love
Pepsi, also known as Generation Z, to always show
their full personality and energy.

The company promotes their product through both

traditional media such as television and magazines
4 Choose the and new media like online media, which can be
media mentioned as Facebook, Youtube, Instagram, Tiktok,
Twitter, etc.

Pepsi conveys the message of daring to do, pursuing

a passion, and bringing youthful and enthusiastic
Select the
5 energy through the Rap Viet program - a program
message source
that has a significant influence on young Vietnamese
and the global gender.

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B.Micro Environment

1. Customer Analysis
Segmentation:
Pepsi divides the market into
two major trends: demographics
and psychographics. In terms of
demographics, they segmented
the market into many age
groups when they decided to
choose to target the young
people.
In terms of psychology, they
chose to appear in Vietnam's
Rap culture when introducing a
new product: "Pepsi lemon zero
calories" with a fresh fruit flavor
and a vibrant summer style,
staying true to the market
position field that PepsiCo has
pursued since its inception.
Targeting:
Pepsi customers are primarily teenagers and young adults aged 14
to 30. It also targets schools, colleges, universities, homes,
restaurants, hotels, and retail establishments. Despite having a large
customer base in the SoftDrink industry, Pepsi prefers to market
itself as the beverage of choice for the "New Generation,"
"Generation Next," or simply the "Pepsi Generation." These terms
used in Pepsi's advertising campaigns are referred to by marketers
as Generation Z and Millennials, which is defined as people aged 15
to 35. Pepsi believes that if they can persuade this market to adopt
their product, they will be able to establish a loyal customer base in
the long run (6)
Differentiation :
Pepsi provides product differentiation that assists in differentiating its products from
competitors because Pepsi's carbonated drinks have an appealing taste, light
sweetness that is not harsh and provides a refreshing feeling when drinking.
Moreover, the complete difference between Pepsi and Coca Cola is that Pepsi lemon
zero calories, which is low in fat but still has a great taste. After a long day of intense
activity on a hot summer day. Pepsi Vietnam always diversifies product packaging
forms from cans, plastic bottles, to glass bottles with varying volumes to meet the
needs of customers.

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Positioning:
Pepsi has positioned itself as one that embodies young energy, and this can be seen throughout
its marketing and advertising campaigns. Pepsi’s customers are mainly aged between 13 and 35
years old from lower middle class to upper class with a busy and modern lifestyle
.

This positioning map reflects the position of

Pepsi in Vietnam’s soft drink market.
Compared to direct competitors such as coca
cola, which have the same taste or Sprite, 7up
- same kind of soft drink, Pepsi is rated "Pepsi
is sweeter than Coke, so right away it had a big
advantage in a sip test. Pepsi is also
characterized by a flavor burst, unlike the
more raisiny-vanilla taste of Coke''. Dubbing
the finding of the NGO, Centre of Science and
Environment, which conducted the test, it
said that with regard to any kind of pollutants,
pesticides included, all Pepsi products meet
all international standards and indeed better
the most stringent testing standards.
Furthermore, Pepsi delivered only 'safe and
world-class quality' to consumers.

Value proposition: In order to compete with

other brands, Pepsi has positioned itself as a
follower and repositions the competition.
Their prices reflect that, staying affordable
for millennials from different classes. They
have even released smaller soft drinks
options to make their products more
appealing to those who need a quick drink
to satiate their thirst and cravings.

Positioning statement: “To be the world’s

.
best beverage company”. Being the best
means providing outstanding quality,
service, cleanliness and value, so that every
customer is content and happy with their
products.

Page 18
.
 2. Suppliers

GSI TOOLS is one of the suppliers of materials and factories for Suntory PepsiCo in Vietnam. Every
year, Suntory Pepsico purchases tons of plastic water bottles from the Do Thanh Industry Joint
Stock Company. Besides, Suntory Pepsico also is a water self-supplier that uses the public water
source but is treated in a seven-step process (Hydro-7) to remove minerals and some other
impurities still commonly found in domestic tap water.

• Intermediaries
Pepsi's beverage products are available in restaurants, organizations, events, schools, and
stadiums through external staff management and the help of third-party distributors such as
BigC, Metro, Vinmart, etc. In Vietnam, Pepsi Lemon zero calories have cooperated with many
fast-food chains such as KFC, Lotteria, Pizza Hut and cinemas,... to gain market share. These
stores also enjoy many incentives from Pepsico such as providing lockers, tables and chairs,
umbrellas, cups or maintenance services, and free refrigerator repair. This association brings
benefits to both sides, promoting product consumption, increasing popularity.

3. Competitors

Coca-Cola and Pepsi for hundreds of years have always been referred to as a pair of
rivals, mercilessly confronting. Despite the distance in space, time, and culture,
Coca-Cola and Pepsi are always chasing each other non-stop, everywhere, from
restaurants, supermarkets, shops, stadiums to regions. territory.
Coca-Cola and Pepsi are the two corporations holding the largest positions in the
non-alcoholic beverage industry. PepsiCo has a market capitalization of $147 billion
and Coca-Cola at $186 billion. Coca-Cola focuses on producing beverages while
PepsiCo deals in both beverages and food.

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3. Competitors

Based on some elements below to see How Coca-Cola do.

• Product
uite
Su g a r (2 016) is a q
Coke Ze ro la
p ro d u ct of Coca-Co
successful arket
is la u n c h ed in the m
when it tomers who d
o
d at c u s
and is aime using
t to ga in w eight when
not wan
soft drinks.
carbonated

• Strength

Coke Zero Sugar is a product that is • Weakness

completely free of calories and
sugar. It is really suitable for those
who drink carbonated drinks but
suffer from blood sugar diseases, or
who need to lose weight.
• Price strategies
People are almost used to using carbonated soft
drinks with their addictive sweetness, so when Coke
Zero Sugar was released, it received mixed reactions
from many customers because the taste was not
much different from that of Coke Zero Sugar original.
Although this is a zero-sugar product, it still has a
sweet taste made from artificial sweeteners, which is
a substance that, if used for a long time, will also
greatly affect health.

Coca-Cola is aware that this is a

completely new product, so when
present in Vietnam, Coca-Cola has
used a market price penetration
strategy for retailers, with prices
ranging from 9,000 - 10,000
VND/330ML.
As a completely new product, but its
price is only 300-500d / 330ml
higher than the Coca-Cola original
price, for the purpose of letting old
customers try their new products and
get feedback on the customer's
product.
• Marketing strategies
Coca-Cola used Advertising and Public relationship to
promote its products. In particular, in 2017 Coke Zero
Sugar was used in the “Uplifted Alex” campaign. This is a
campaign entirely aimed at men because it is combined
with the FIFA game that is used by a lot of young
people, especially boys. To promote football players or
people who practice sports regularly, using Coke Zero
Sugar is extremely suitable.
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 4. Public Relationship

• General publics
In 2020, Pepsi became the main sponsor for the first season of Rap Viet. In fact, the
development of Underground in general and Rap music, in particular, is in a strong stage,
Vietnam wants to find a way to bring Hip Hop culture closer to Vietnamese youth. Through a
program with great appeal with a bunch of well-known people such as Rhymastic, Justatee,
Binz, Karik, DJ Mie, and so on, Pepsi took the opportunity to advertise Pepsi lemon zero
calories to all types of customers. Thanks to that, Pepsi was able to build a close connection
with the public
• Media public
In the era of technology 4.0, Pepsi is known by the Vietnamese because of its use of
integrating many traditional communication channels such as printing, TV advertising to new
modern digital channels: Hanoimoi.com.vn, Thanhnien.vn and so on. Besides that, Pepsi has a
lot of followers on the internet: YouTube, Facebook, Instagram, etc.

C. Macro Environment

• Demographic Environment

Vietnam's average population in 2019 was

estimated to be 96 million people
(according to the General Statistics Office of
Vietnam). Vietnam is a young country with a
large youth population.

According to MarketLine estimates, as of 2019, 22.9 percent of the population was

between the ages of 0 and 14, 70.5 percent of the population was between the ages of
15 and 64, and 6.5 percent of the population was 65 and older. Rising urbanization
means rising living standards and a significant increase in the demand for refreshments,
particularly in major cities. The determination of population distribution has a
significant impact on Pepsi Corporation's marketing strategies in Vietnam. Vietnam is
experiencing a "golden population structure," in which the working-age population is
roughly twice as large as the dependent-age population.

Page 21

• Economic Environment:
According to MarketLine, economic growth
in the period 2015-2019 reached a high level.
There has been a slowdown in economic
activities and overall employment in the
country, illustrated by a slowdown of GDP to
1.3% in 2020 compared to 7% in the previous
year. The economic growth rate has changed
every year, leading to changes in consumer
spending on essential issues. Pepsi's business
in the Vietnam market is also facing many
difficulties in the current period due to the
economic downturn (impact of Covid).
According to forecasts of economic research
agencies, economic growth in Vietnam after
Covid tends to recover. Economic growth
contributes to improving people's living
standards, leading to an increase in spending,
making Vietnam a potential and attractive
market.
Page 22
- Advantages include a large labor force, a
strong ability to absorb science and
technology, dynamism, adaptability to the
market economy, reserve labor, and labor for
national security.
- Difficulties include labor shortages and a
high unemployment rate. There is a labor
export and brain drain situation. Pepsi's
difficult task is to recruit skilled, capable
workers from such a large workforce. (4)
•Natural Environment :
Pepsi introduced Pepsi lemon zero-calories,
which come in cans, which are recyclable and
less harmful to the environment. Every year,
about 3.7 million tons of plastic waste end up
in the oceans in the world, while Pepsi ranked
3rd in terms of the amount of plastic waste
found in 51 of the 55 countries surveyed. In
2019, Suntory PepsiCo Vietnam promotes
packaging recycling culture for a green - clean
- beautiful Vietnam and joins hands with
partners to introduce initiatives to increase
awareness about plastic waste management.
•Technological environment :

PepsiCo sought to innovate its marketing approach to be customer-centric, data-driven,

and digital-first. Pepsi uses different technologies to reach out to its customers. Apart from
TV ads, it uses social networking sites to keep in touch with them. According to Digital
Commerce reports, Pepsi has been investing in digital technologies and robotics in a quest
to improve its distribution to retailers to automate its supply chain. At PepsiCo, multiple
teams tap AI and data analytics in their own ways to bring each product to life. It starts with
using AI to collect intel on potential flavors and product categories.
Competitors Adopt Technology More Effectively: In the current technologically advanced
and highly competitive business arena, the success or failure of businesses depends on the
adoption rate of emerging technologies. PepsiCo can lose a competitive advantage over
competitors if they adopt game-changing technologies more effectively. (5)

•Cultural environment :
Vietnamese people's eating habits are shifting in a more positive direction. Aside from eating
deliciously, Vietnamese consumers are also interested in eating in order to stay healthy.
Furthermore, Pepsi's target demographic is teenagers (13-19 years old), so parents are
particularly concerned about obesity, unhealthy foods, and their children's development. Pepsi
must implement policies to ensure product safety and quality. Furthermore, strategic planners
must place a greater emphasis on health issues.
Moreover, Vietnamese people have a distinct taste from Westerners. Vietnamese consumers
prefer carbonated soft drinks with a rich sweetness and a high carbonate concentration that
gives them a sense of refreshment, whereas Westerners prefer a lighter taste.

• Political environment

Pepsi must follow the government

standards outlined by the Vietnam Food
Administration (VFA) as well as the
Environmental Protection Agency (EPA). In
the context of regional and world security
with many uncertainties and
complications, Vietnam's stable political
security is what attracts foreign investors to
invest in Vietnam. The CPV is in control.
Alongside maintaining the one-party state
system, safeguarding territorial integrity,
and maintaining social order, its main aim
is economic growth. Therefore, there is a
ensure fair and healthy competition of
enterprises, regulation of the state to
ensure the interests of consumers.
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SWOT Analysis Strengths
Strong parent company
Strong branding and marketing
Strong Global Presence and large
distribution network
Affordable price (3)

Weakness
Not many flavors for the product yet (2)
Over dependence on carbonated soft
drinks and packaged foods undermine
company’ flexibility and agility in case of
turmoil in that segment.
Do not reach many customers (6)

Opportunities
Expanding Operations in Emerging Market
Entering Production of Health
Products
Invested by Pepsico and Suntory
Demand for soft drink increase
Increase Healthy Options
Introduce New Flavors (1))

Threats
Change in consumer tastes
The beverage market is highly competitive,
especially facing big rival Coca Cola
Increasing health consciousness
Change in Demographics (4)
Competitors Adopt Technology More
Effectively (5)
 V.
Main issues
 Although Pepsi is doing very well within the company's business, there are still some issues
to face that, if solved, the corporation could more thrive in the industry. One of the biggest
problems of Pepsi is related to marketing strategy (4P) is the Promotion section. It is
undeniable that Pepsi is an “inferior” in the cold drink field, so Pepsi has to increase the
promotion to capture market share. Christmas Advertising Campaign 2019 – “Gift it forward
with Pepsi” with the participation of famous Rapper Cardi B and getting BlackPink to become
the spokesperson of Pepsi together with Pepsi is the main sponsor for Rap Viet program,
perhaps, Pepsi spends a huge amount of money to promote their product.
Another issue of Pepsi which is related to marketing strategy (4P) is the Product section.
Building a brand plays a crucial role within the company's marketing strategy because of
attracting more customers through promotion, however, Pepsi's main customer market is just
young people, also known as Generation Z and Millennials. In one study, it was shown that
84.9% of Generation Z used Pepsi at least once a week, while Generation X accounted for
only 4%. Moreover, for Generation X, Pepsi also faces competition from a growing market of
healthier alternatives to sugary soda drinks, such as energy and nutrition drinks. Despite the
new zero-calorie Pepsi lemon product, it has not yet attracted many people aged 35-49 to
use Pepsi. Besides that, Pepsi has high competition, about 60% of the global non-alcoholic
beverage industry is controlled by Coca-Cola and Pepsi. Of these 60%, the split between
Coca-Cola and Pepsi is negligible. This average is on an international basis for the United
States. It's not difficult to guess that in the near future, Coca-Cola will launch more products
which are similar to Pepsi lemon rezo calories to catch up with the market. Then, the soft drink
market is boring again and Pepsi products will be limited with 2 lines: Pepsi original and Pepsi
lemon. The question is whether Pepsi has to keep inventing new products? Different taste?
Different ingredients?

With everything that was stated, Pepsi needs an imperative solution to remedy the
problem as soon as possible to achieve more in the future.

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 VI. Marketing objectives

“Be the global leader in convenient foods and beverages

Vision
by winning with purpose”

“Pepsi’s mission is to gift joy and memorable moments. Simultaneously, they

Business Aim/ strive to operate sustainably to provide a bright future for upcoming
Mission generations. With a youngster-oriented and unique soft drink, Pepsi wants to
expand its reach to every household.”

Marketing Pepsi wants to dominate the beverage market by diversifying its products and
Objectives conducting promotional campaigns to satisfy every customer.

VII. Marketing Strategies

In the 4P marketing mix, including Product, Price, Place, and Promotion, our group decided to
focus on developing strategíe related to the Promotion and Product which are the main issues
mentioned before, in order to advertise the product after the quality improvement.

1.Positioning
Our target customers are all ages, from low-income to high-
income customers. Therefore, we focus on people's taste to offer
products which improve in terms of quality and taste. We position
this new brand to become not only a convenient product, suitable
for all customer segments, but also an indispensable part of every
family meal, events,... differentiate itself from competitors

2.Product Strategy
Pepsi's product quality should be improved. First, for taste, Pepsi
must be diverse in products. However, Pepsi does not transform
itself into another "person", the product is still based on soft and
carbonated water, which is not only a Pepsi lemon zero calories,
but also adds many other special flavors to stimulate the tastes
and curiosity of customers such as Pepsi blueberry. Second,
according to the aforementioned reasons, only 4% of Generation
X use Pepsi, so Pepsi can reduce the amount of gas and the
sweetness to suit their taste.

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3. Pricing Strategy
Pepsi is aware that Pepsi Blueberry Zero calories are completely new products, so when
entering the market in Vietnam, Pepsi will use market price penetration strategy with the price at
175,000VNĐ wholesalers/230,000VND estimated retail price per box (24 cans).
As a completely new product, but its price is only 300-500d / 330ml lower than the Pepsi
Lemon Zero calories price, for the purpose of letting old customers try their new products. With
this price strategy, Pepsi hopes to attract customers and can capture market share from Coca -
cola, Red Bull, Nestle,...

4. Distribution strategy 5. Marketing Research

Our channel strategy is to use selective

Pepsi will develop new products based on

distribution to market new products
primarily through major supermarket
channels such as Top Market, Vinmart,
Co.opmart, Metro... and online retailers on
e-commerce platforms Shopee, Tiki,
Lazada, and so on. Pepsi will provide
ingredient, origin, and product features
details to our channel partners to assist
them. Finally, we intend to set up special
payment terms for retailers who place large
orders.
feedback from market tests, surveys, and focus
groups. In addition, we are measuring and
analyzing customer attitudes toward competing
brands and products. As a result, the company
will be able to assess customer perception of the
brand, product, and overall satisfaction for future
product development and new distribution
channels.

6. Marketing Communications Strategy

For new products, we can apply Marketing Communications Strategy programs such as: Calling
for charity donations, specifically when you buy 1 can of Pepsi, you have contributed 1,000 -
2,000 VND to charity activities such as supporting the compatriots ... through the psychological
attack for the community and benevolence to stimulate the purchasing power of customers.
Besides, we can create trends to attract young people of generation Z such as launching a
campaign to use used cans to exchange for new cans (for example, 6 used cans will be exchanged
for a new one or accumulate points to redeem vouchers).
This helps people to protect the environment by reusing recyclable inorganic waste; Besides, it
will also partly help the packaging production stage to save a part of production costs.
VIII. Action program

https://bitly.com.vn/sfj1pg

Marketing Action Month of year 2021

Budget
Plan for Pepsi
1 2 3 4 5 6 7 8 9 10 11 12

Prepare to Introduce 75 million

a new product VND
Building a
communication
strategy by advertising, 10 million
using famous KOLs VND
that influence almost
every generation.
Sales promotion
campaign and exhibit at 25 million
supermarkets and VND
stores
Start an integrated
30 million
print/Video/Internet
VND
advertising campaign

Choosing online 60 million

marketing tools VND

The multimedia 15 million

advertising campaign VND

Main sponsor for 85 million

Rap Viet season 2 VND

Page 29
IX. Illustrations for your
proposed action
program
 Preparing to introduce new products, we
will give consumers small surveys about
their preferences and expectations of new
products. After completing the survey, each
person will receive a voucher to buy a new
product at a preferential price when it is
launched, in order to stimulate consumer
buying demand. The next activity is to
confirm the quality of the product and give
hints about the new product by widely
announcing and hiring a few journalists to
write about these events. This action occurs
with the purpose of attracting the attention
of consumers. Before Pepsi blueberry zero
calories is officially shown directly in stores
and supermarkets, we would like to send a
letter of inquiry along with limited edition
Pepsi blueberry zero calories cans to KOLs.
They will unbox and comment on the
photos with the hashtags #Pepsiblueberry
and #comingsoon, it creates a sense of
suspense and anticipation to enjoy new
products of the customers.
Page 31
When Pepsi blueberry zero calories is officially
on the market, we will start an integrated
print/Internet advertising campaign targeting
consumers. The campaign will indicate the
difference from taste to quality of new
products. This multimedia campaign will be
supported by point-of-sale signage as well as
online-only ads and video tours. In order to
attract more customers, we will offer an
attractive gift of a limited edition Pepsi thermos
with a beautiful design when customers buy a
box of 24 new Pepsi bottles to stimulate
demand. . When buying 1 pack of Pepsi lemon
zero calories, you will get 1 mini Pepsi Blueberry
for free so that customers can try the upcoming
product first, to attract and introduce the
product in advance. At supermarkets, we use
banners to introduce and display new products
in prominent positions. In crowded and vibrant
public places such as: Vincom, Centerpoint, ...
led screens will be used to display
advertisements. Pepsi combines with
restaurants, cinemas (Lotte, BHD, Beta), fast
food stores (Mcdonald, Jollibee) to create
combo combos with our new products.
After identifying and analyzing target
customers, it is necessary to clarify which online
channels customers often use and offer the
most reasonable online marketing tools. In the
multitude of marketing methods such as social
media marketing, paid advertising marketing
such as FB Ads, Zalo Ads, Google Ads, Email
Marketing, SEO - search engine optimization is
the choice that helps Pepsi will
acquire an increasing customer base over time, then gradually stabilize and
maintain the number of customers for a long time. Search engine optimization
for new products will help Pepsi get a steady customer base. As the rich media
campaign progresses, in the multimedia advertising campaign, we will add sales
promotions and consumer prizes for the month of May, such as a contest in
which consumers post videos and articles about how they felt after using the
product on our website or fanpage in creative and unusual ways. We will also
establish new points of sale to assist our retailers. We will launch a challenge on
Tiktok #boomdanceblueberry and invite KOLs to join this challenge, in order to
create a trend of new products and attract people's attention. From the success
of Pepsi lemon zero calories through the program Rap Viet season 1, Pepsi will
continue to become a sponsor of the program Rap Viet Season 2 in the last 3
months of 2021. If in Rap Viet season 1, Pepsi Lemon Zero calories bring a
refreshing taste, for Pepsi Blueberry Zero calories in season 2, Pepsi wants to
bring the message "burn with all passion and enthusiasm". Through Rap Viet's
readily available entertainment as well as the humor of the coaches and judges,
who used new products during the recording of the show, we wanted to convey
to customers positive energy, refreshing, and many interesting experiences
from Pepsi.

Budget
Pepsi has set a first-year retail sales goal of 500 million VND with a
projected average retail price of 9,600 VND per unit for a total of 52,083 units
sold. With an average wholesale price of 7,300 VND per unit, this provides
revenues of 308.2 million VND. Pepsi expects to break even during the final
quarter of the first year. A break-even analysis assumes per-unit wholesale
revenue of 7,300 per unit, a variable cost per unit of 1,000 VND, and
estimated first-year fixed costs of 300,000,000 VND. Based on these
assumptions, the break-even calculation is:

300,000,000/(7,300 VNĐ/unit - 1,000 VND/unit)= 47,619 units

Page 32
X. Conclusion

In the chapters above, we have mentioned and analyzed Pepsi's marketing strategy.
From our research, we can conclude that Pepsi has performed very well in its
marketing strategies in recent years in the Vietnamese market. Pepsi has connected
the community, attracted the media and fixed its brand image in the minds of
customers, but besides that, Pepsi's marketing strategy is still limited as we mentioned
above. Although Pepsi has launched products that are better suited to the needs of all
customers, Pepsi still needs to come up with new product development strategies to
match, as we know, product diversity is applied as a policy of many companies and
brands. In addition, Pepsi has some small problems related to advertising. We believe
that if Pepsi implements our solutions well, Pepsico will have the ability to become a
large and stable beverage company in the market.

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