THE FUTURE MARKING STATEGRY FOR COCA-COLA

NGUYEN HOANG KHANH

1012423

Project summated in part fulfillment of the Bachelor of Business Administration

BOLTON BUSINESS SCHOOL THE UNIVERSITY OF BOLTON FEB 2011 1

Declaration
BOLTON BUSINESS SCHOOL BUSINESS PATHWAY Module name and number: Tutor: Assignment Number: Assignment Length: Issue Date: Submission Deadline: Business Studies Project Peter Paddon One Feb 2011 May 8th, 2012 Weighting: 80% 7,000 10,000 words

The project which I have submitted is my own work, and with the exception of quotations (which are clearly marked and referenced), is written in my own words. I acknowledge that the work will be tested using the TurnitinUK software.

STUDENTS SIGNATURE: ................................................................................... DATE: ...................................................................................................................

Acknowledgments Firstly, I would like to show my appreciation to Mr. Peter Paddon for his valuable comments and good advises. Secondly, my thankfulness to my parent who have always beside me and support for me get over the difficult time. Thirdly, I would like to say thank you to all people who participate on answering my questionnaires and interview. Finally, I would like to give my appreciation to all teacher in The University of Bolton and the staffs of Banking University for helping me to achieve the Bachelor Degree.

Abstract Since the past 10 years, the development of Vietnam economy increases the demand of using healthy and delicious food and drink. Vietnam food and beverage industry become one of the potential market for any foreign investment to join. Coca-Cola is one of the two biggest beverage company come to Vietnam in 1994. However, Coca-Cola was faced with the difficulties on get over current competitors such as Pepsi and local competitors. The research will mainly figure out a future marketing strategy for Coca-cola to strengthen position, capture market shares and maximize its profit. Indeed, the analysis showed the PepsiCo with a larger market share in the field of soft drink products is step by step dominating the Vietnam market. Therefore, Coca-cola need to improving their position is customers perception such as improved product design, making it friendlier to the environment and consumers. In Vietnam market, Coca-Cola spent thousands of US dollar on advertising, pure media and press with really high expense. Therefore, this research will clarify four objectives:

To understand and analyze the current situation of Coca-Cola Vietnam.

To develop a better knowledge about soft drink market of Vietnam and habit of Vietnamese customers.

To recommend an effective marketing strategy for Coca-Cola Vietnam.

To review the effectiveness of marketing activities on company performance.

TABLE OF CONTENT CHAPTER ONE: INTRODUCTION...........................................................7 1.1. History of Coca-Cola organization..................................................7 1.2. Difficulties of Coca-Cola Vietnam are facing ................................8

CHAPTER TWO: LITERATURE REVIEW................................................9 2.1. Marketing...........................................................................................9 2.1.1. Marketing objectives...........................................................9 2.1.2. Brand awareness.................................................................9 2.1.3. Competitive advantages.....................................................10 2.1.4. Marketing mix......................................................................11 2.2. Advertising .......................................................................................12 2.3. Porter five forces..............................................................................13 2.6. Performance marketing....................................................................15 2.5. Relationship marketing....................................................................15 2.6. Customer satisfaction......................................................................15 CHAPTER THREE: RESEARCH METHODOLOGY.................................16 3.1. Introduction ......................................................................................16 3.2. Research Philosophy.......................................................................16 3.3. Research Approaches......................................................................17 Qualitative research.....................................................................................17 Quantitative research...................................................................................17 3.4. Research Strategy............................................................................18 3.5. Research Method.............................................................................19 3.6. Research objectives:.......................................................................21 3.7. Time horizons..................................................................................21 3.8. Research ethics...............................................................................22 6

CHAPTER FOUR: FINDINGS AND ANALYSIS........................................24 4.1. Overview on Coca-Cola international..............................................24 4.2. Data collection Vietnam market....................................................25 4.2.1. Products background........................................................25 4.2.2. Buying experience..............................................................27 4.2.3. Understanding brand.....................................................................30 4.3. Further analysis................................................................................31 CHAPTER FIVE: CONCLUSION..............................................................33 CHAPTER SIX: RECOMMENDATION......................................................35 BIBLIOGRAPHY.......................................................................................37 APPENDIX................................................................................................39 LOGBOOK................................................................................................42

CHAPTER ONE: INTRODUCTION

1.1. History of Coca-Cola organization According to Coca-Cola website, the Coca-Cola organization is a trademark of soft drink which is registered in the US in 1893. However in1886, CocaCola was first introduced to the public in Atlanta, has really attracted the attention of most people who enjoy great with aromatic and attractive colors. The most talented leader of Coca Cola, Asa Candler, bought Coca-Cola and changes the thinking of American people about Coca-Cola products. Since then, Coca-Cola products have a strong position in customer and become the most consumed products all over the world (Dang, 2009). The name Coca-Cola comes from the name of coca leaves and cola fruit, two main components of Coca-Cola soft drinks. Time pass, color of it has been preserved and kept by diligently people who involve in the production, distribution and promotion of consumption of Coca-Cola products from all around the world by the emotion and passion they give to the Coca-Cola. Currently Coca-Cola soft drinks firm became world famous with many diverse products such as Coca-Cola Light(Diet Coke or Diet-Coke), Coca-Cola Cherry, etc. In 21st century, Coca-Cola becomes the most popular product worldwide with one of the ten top market shares in beverage industry due to its outstanding flavor and cheap prices. Coca-Cola mainly operates in 5 areas in the world: North America, South America, Europe, Middle East and Africa. In Asia: China, India, Japan, Philippine, South Pacific and Korean, West and East of South Asian. First come to Vietnam in 1994, Coca-Cola co-operated with Vinafimex Company in order to build the sustainable step for its long-term development in future. In 1988, Vietnam government allowed the company to become a joint venture company with 100%foreigncapitalinvestment. The joint venture of 8

Coca-Cola in Vietnam turned under full ownership of the Coca-Cola Indochina, and primarily Coca-Cola Chuong Duong made this change. In 2001, due to the permission of the Government of Vietnam, three beverage companies Coca-Cola in the three regions merged into one and under controlled of Coca-Cola Vietnam, based in Thu Duc District-Ho Chi Minh City. Coca-Cola Vietnam in 2004 was transferred to Sabico, one of the Group's reputations Bottled Coca-Cola in the world. 1.2. Difficulties of Coca-Cola Vietnam are facing In Vietnam beverage industry, Coca-Cola is the latecomer in comparison to Pepsi therefore it becomes the disadvantage for Coca-Cola to penetrate the market (Le, 2011). Moreover, the teenager generation the biggest market segmentation - likes the youthful, dynamic and creative in the style of Pepsi rather than the classic, luxurious and elegance of Coca-Cola (Le, 2011). Considered Vietnam is the top 25 potential markets, in 2009, Coca-Cola decided to double investment to $400 million (Thanh, 2009). Coca-Cola believes this investment will become a lever to push the market share by develop new products which can combine the luxurious tradition with the youthful style to compare with products of Pepsi. Moreover, Coca-Cola hopes that the index of growth in 2012 will increase 46% compared with 2007. Therefore, in order to compete with Pepsi and other local beverage companies, good and effective marketing strategy is an urgent for Coca-Cola to overcome the difficulties. Base on that, this research objective will help Coca-Cola strengthen its position by figuring out the marketing strategy as following: To understand and analyze the current situation of Coca-Cola Vietnam. To develop a better knowledge about soft drink market of Vietnam and habit of Vietnamese customers. To recommend an effective marketing strategy for Coca-Cola Vietnam. To review the effectiveness of marketing activities on company performance. 9

CHAPTER TWO: LITERATURE REVIEW 2.1. Marketing Marketing activities is applied in order to satisfy customer needs and balance the fluctuation of the market changes. According to Shaw (2007), the marketing concept include the activities of predict, satisfy customer, identify customers and profitability. On the other hand, Kotler (2003) defined that marketing activities are analyzing, designing, and implementing process to reach the target market. On the other hand, good marketing activities also help organization to create the competitive advantages by buildup good distribution systems, attract customer by promotion, etc. 2.1.1. Marketing objectives Marketing objective is specific results of its activities. Furthermore, a good marketing objective will consider to the strengths, weaknesses, business environment, and purposes of doing business (Solomon, et al 2006). In order to reach a business target, the marketing objective needs to meets the SMART standards which mean the objective needs to be specific, measurable, achievable, realistic, and time. Moreover, the marketing objective assists the organization to get competitive advantages, customer awareness and improve the brand positioning. 2.1.2. Brand awareness Brand awareness is the percentage of the population or the industry that know the brand of a specific company (Barber, 2006). Moreover, brand awareness is the first stage of buying process and it is measure the strength of a brand. However, cost of advertising the brand is quite high so figuring out a way of building the brand name in effective cost is quite important to business firms nowadays. Customer knows the brand base on the advertisement on the television, marketing activities, promotions, in-store selling, etc. There are three levels of 10

brand awareness: top of mind, spontaneous, and prompt (Rossiter, 1985). Firstly, top of mind awareness is the brand that customer will immediately think about when being asked for buying that kind of products or services. Second, spontaneous is the situation that customer remember the brand name but the competitors brands at the same times. Last one is the weak brand position of company in customers mind. In fact, to increase the percentage of brand awareness is very expensive. Therefore, how to maintain the percentage is the purpose of most organization in consumer products industry.

2.1.3. Competitive advantages According to Porter (2010), competition is the struggle between business firms in order to capture the market shares and maximize profits. Competitive advantages are the dominances over the current competitors in a specific time and situation. Competitive advantages may be the quality, customer services, product functions, differentiation, etc. Indeed, base on the high competition, figuring out the competitive advantages and giving customer a reason for choosing the products or services is a survival factor of any business.

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2.1.4. Marketing mix According to Kotler (2003), any marketing process for a company to deliver the value and building strong relationship with customers called marketing strategy. First developed by Kotler in 1960s, 4 Ps marketing mix products, price, place, and promotion - becomes more popular as a useful tool for marketer to apply to get the market shares and satisfy the customers. The marketing mix 4 Ps product marketing mix - was applied by many organizations all over the world because of its outstanding functions which helps business to achieve the target and figure out a suitable marketing strategy in the right time. Moreover, marketing mix is a collection of marketing tool used by the enterprise to achieve the target of marketing in the industry. Firstly, product is related to the quality, design, feature, warranty, etc., of the products. Second, price is the cost that customer need to pay for products or services. The price is determined by many factors such as the cost of raw material, productions, customers perceptions, transportation, promotion, etc. Setting a price is quite important to a business firm to decide because they may lose their profit if the price is lowed set and lose customer if the price set is higher than competitors. Third, place is included where customer can get the information of the product or services and make the purchasing. Place may be tangible such as stores system or intangible such as websites. Therefore, the decision where to locate the place for the potential customer may get information is a very important factor to get overcomes the competitors. Last but not least, promotions is all activities aim to ensure that customer know the products or services and have a good impression in order to increasing sales and maximize profit.

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The marketing Mix Source: Kotler, P. (2003) Marketing management 2.2. Advertising According to Petley (2003), advertising is the important factor of promotion in the marketing mix. The purpose of advertising is to introduce or promote a product or services to the potential customers in order to give them a good image about the brand name, building the loyalty and increasing sales. Granat (1994) stated the characteristic of a good advertiser deeply understands the habits, needs, wants, etc of the customers. The effective advertising need to clearly carry out the two objectives: sales and communication (Trehan et al, 2009). First objective of advertising will exploit and develop the products or services ranges in to different market segments to increasing sales and capture the market shares. Then, communication objective helps to understand customers needs, giving the after sell services, take care of customers and differentiate from competitors. According to Kotler (2007), there are six steps of developing an effective advertising. Firstly, organization needs to figure out the objective of advertisement. Then, the investment on this advertising is also need to be determined. Third, the message that business wants to give to customer for 13

introducing the product need to be attractive and memorable. Fourth, choosing a media channel to public the information to customer is quite important because it helps to target to the right customer, on time and get the high return. Evaluation the effectiveness of the advertising is important for the enterprise to develop in long run. 2.3. Porter five forces Porter five forces model is first published in the Harvard Business Review (1979) with the content of figuring out the potential factors of creating the profit in doing business. In addition, Porter five forces model provide strategies for business firm to get competitive advantages, maintain and increasing the profit. Moreover, this model is applied to analyze if a business firm should enter a market or not. According to Porter, the intensity of competition in any industry will be affected by the five forces: threat of new entrants, bargaining power of suppliers, threat of substitute products or services, bargaining of buyers and rivalry among existing competitors.

Porter Five Forces Model 14

Firstly, threat of new entrants is related to the ability of people come to the market. If a business firm has a strong position and barrier so that the position will be secure and get over the competitors by taking advantages. Second, the number and size of suppliers will have a big affect to the power of bargaining from the suppliers. Hence, its results will influent to the outcome of business by changing in prices of products or services. Few and large supplier will automatically create the competition pressures and impact to the hold operation management. Therefore, if a company strategy focuses on downstream of the supply chain will mainly have opportunities to reduce cost of raw material from suppliers to get the competitive advantages. If there are many competitions in the market, the buyers have more power on bargaining to reduce to prices and this action has a big impact to the profit of organizations. There are two kinds of customer: individual customers and wholesalers or retailers. Indirectly, both two kinds of customer have power to control the competition in the industry through the buying decision. Next, substitute products or services can satisfy customers needs and make a big lost to the business performance. Substitute products or services will be affected by the prices, quality, tradition, politic, etc. On the other hand, it is related to the cost of making products, customer trends in using the substitute products. If the cost of making product is low and required less technology, new entrants will come to take the market shares and reduce the firm profits. Therefore, the protection from the government policy, brand copyright, and technology are the important keys for business to maintain the market shares. Fifth, the number of competitors and its capability is important to analyze the competition between business firms in the industry. The level of competition is different from different industry. In order to get over competitors, business firm needs to changing cost to get short term benefits, differentiation the products or services, creative using the distribution channels, etc.

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2.4. Performance marketing According to Kotler and Keller (2009), performance marketing is the concept of social responsibility such as ethic, environmental protection, legal, etc. Environmental responsibility is one of the challenges for business firms to trade off between profits and ethic. Environmental responsibility helps business firm to enhance the brand name and avoid of boycott from the society. Moreover, organizations need to carefully review the legal between countries to have a positive impact and strengthen their position. According to Solomon et al (2006), social responsibility,mean companies integrate the ethical products, environmental protection, and legal as its policy to polish their brand name. 2.5. Relationship marketing Relationship marketing is an important factor to increase customer loyalty and encourage the purchasing (Voss and Voss, 1997). Keegan et al (2002) mentioned that win-win relationship is the best method of both giving value to customer and receive the profitable to business firms. Along with the development of information technology, customer relationship management is now easier for business to apply, save database and contact to customers in a low cost and fast way. On the other hand, building a strong relationship with the business partner is also created competitive advantages to organization. 2.6. Customer satisfaction The main objective of customer relationship management is improving customer satisfaction. From that, the number of customers will be maintained and increased over period of time (Kotler, 2003). Customer satisfaction can achieve by lower the prices of products; improve the customer services, longer warrantee, etc. Having good relationship with customer may make customer coming back and maximize profit. Therefore, Stew Leonards has defined: customer is always right. If the customer is ever wrong, reread the rule number one.

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CHAPTER THREE: RESEARCH METHODOLOGY 3.1. Introduction This chapter is to manipulate the research methodology for this investigative study. This research is conduct in order to analyse strengths and weaknesses of the organisation, also provide proper recommendations in order to recapture the organisation market share and brand awareness. Accordance with the Research Onion, there are many critical stages, which needs to be conducted within the research framework; however, due to limitation of this research lengths, the author would like to propose only parts in related with the method of conducting and structuring the survey. 3.2. Research Philosophy Within the scope of research philosophy on realism, the author fully understands the importance of data realistic. Data realistic enhances efficiency and effectiveness in research; it not only helps the author to achieve further knowledge and experience, but also makes itself more reliable for further practical implementation (Saunders M. et al., 2007). Saunders M. et al., (2007) stated that there are two differed dimensions of realism. The first dimension is direct realism. This referred to that natural reality, which originated from practical humans sense. Whilst, the second dimension more likely focuseson critical characteristics, which could be different from humans perspective to the reality. In another words, this means that thing is different from theory to practice. There are many criteria within the research philosophy framework; however, since this investigative study is conduct with practical survey and support by the organisation representative; therefore, the author would only propose the realism philosophy in this research. It also known that, each philosophy has its own specialty of strengths and weaknesses; nonetheless, it would be no clue to find out what philosophy is the best.

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3.3. Research Approaches Suggested by Saunders M. et al (2007) that, in order to achieve quantitative analysis during the process of conduct survey, it is recommended to implement survey strategy to achieve quantitative information as well as qualitative analysis. Quantitative research According to Saunders M. et al., (2007), quantitative research was considered as a mathematical methodology, which primarily used the collective numerical data to explain the sensations. Its prior aim is to determine theoretical realism of the research in order to implement to practice. It was also used to examine and assess the fundamental relationship midst relationship. Quantitative research gives researchers advantages of subjectively using statistical data to measure the dependence and independence of variables as well as examine the postulates. Nonetheless, this method does not provide further discussion or interpreting data; also, the larger the number of participants become the more accurate the result could achieve (Saunders M. et al., 2007). Qualitative research Qualitative research is an investigativeprocedure, which used the

methodological practices to investigate recent obstacles. Data, which is collected during the research, shall be categorisedinto groups (Saunders M. et al., 2007) Qualitative research primarily focuses on ordinary setting instead of criticality; this helps research to acquire more value information. In essence, both quantitative and qualitative are required attendances of reliability and validity. Reliability, this perspective distinguished the reliable level of the primary data collected. There is three main factors that need to be maintain to have proper 18

quantitative research: (1) result consistency (2) measurement stability and (3) measurement similarity. Within reliability concept, it is obvious to see that Quantitative Approachowns a higher level of Reliability rather than Qualitative Approach. Whilst, validity indicates hypothesis of outlining the survey design and structure data collection process; also, it measures the how truthful the results occur to be. Within the scope of quantitative, there is only a low level of validity. Inclusively, Qualitative research has high validity compared to Quantitative Triangulation: Quantitative and Qualitative approach are different in a good way, each of the approach has its own specialty and specialize in the two core characteristics of enhancing efficiency research approach; therefore, the author suggested to not separate the use of these two approaches but combining them in a new form of research method in order to attain higher result in data analysis. 3.4. Research Strategy In accordance with Saunders M. et al., (2007) research, it is essential to understand that research is a generic plan, which is designed in order to help research achieve the inquiries of researchs purpose. Saunders M. et al., (2007) also emphasized that a clear set of research questions and its purpose will help the author to collect proper data, achieve data efficient analysis as well as perfect timescale. There are many ways to plan for research strategy, such as: deductive approach and inductive approach. These two approaches have it own specialties. Hence, it is important for the author to understand the purpose of his research in order to select the right option. For this investigative research, the author only focuses on collecting primary data and secondary data. The primary data will be gathered by conducting survey, integrating with literature reviews, professional journals etc., Whilst 19

the secondary data will be collected from Vietnameses articles toward the organization and also, some of the data will be given by the company itself.

Collecting data process: It is easy to found data on the Internet; however, not many data could be concerned to use. In order to have proper data, the author will carefully consider getting sources from reliable resources such as CICs library, University of Boltons e-library, emerald, and also other reliable recourse. Besides, the secondary data will be gathered from official sites of Coca-Cola Vietnam in order to strengthen the author research analytic. Last but not least, in order to avoid plagiarism the author will carefully cite all resources in accordance with Harvard referencing style 3.5. Research Method In this research, due to the limit of time, the author chose to conduct focus group option. Focus group option could save time and achieve better result. However, it is hard to invite people to joint the discussion. Also, this option enhances the interaction between participants in order to obtain new perceptions. This could somewhat be considered as an internal strategic forum. This forum will be conducted after complete the process of collecting data from quantitative research, as well as formal draft of results. With full information, the participants will able to express their opinions and discuss altogether to achieve high work efficiency. Participants attend this focus group should work in Marketings related departments in order to given proper ideas toward the research inquiries. Practically, focus group enhances value added in qualitative research. Surveys Question Format An efficient survey contents appropriate questions, which are focused and related to the surveys purpose (Saunders M. et al., 2007). Having proper data is essential while conducting research, since all of the analysis relied on result of data collection. Regarding to final result, the organisation would therefore 20

able to understand the root of the problem, which the entity has been struggled in. Marketing is an essential activity of any organisation in order to attract customers attentions enhancing brand awareness. In support for this investigative research, a 13-survey-question is designed in order to gather young customers feedback as well as their brand awareness toward CocaCola brand image. The survey contents three main parts which are help the organisation to experience the product background, customers purchasing experience, and develop further understand on the organisations recent brand. Each of the questions was developed in term of discovering the brand impression on youngsters also; some of the questions were developed in order to prepare for the organisations further step. This perspective is asked under question number 13. Beside, in order to achieve proper result for each question, the author planned to provide specific description for each question. The survey takers could choose more than one options to some questions, and all questions are designed accordingly with the general hobbies and interests of the survey takers. All thirteen questions are designed and arrange on three pages of one size A4. Sample Size of The Survey It is hard to detect what is the most sample size, since the bigger the size, the better the organisation able to understand their customers demand. However, in this research the author plans to have a suitable size of 150 people. This survey is conducted on Coca-Cola main customers, who are youngsters and in the ages of teenagers. The survey is conducted in 5 largest high schools in Ho Chi Minh City. The survey was originally written in English, and all survey takers have proper English level to full understand the questions. 21

It took the author three weeks to collect and sort out data and prepare to analyze. Data Analysis Techniques The synthetic method, statistical data from newspapers, magazines, internet service primarily in this chapter, from the tabulated data that, diagrams to clarify the situation and the existence and limitations of the management decisions made to maximize the profits of Coca-Cola and then finding a solution In order to achieve efficiency in data analysis, the author chose to integrate the use of Mega-Stat technique along with Excel in order to create proper graphs efficiently demonstrating the situation precisely, avoid misinterpreting. This method is chosen to implement for either primary data or secondary data. 3.6. Research objectives: Carried on this investigative study, the author aims to achieve further understanding about Coca-Colas recent brand awareness, gaining proper acknowledgment in Vietnamese beverage market, and develop foster review on Coca-Cola latest marketing strategy. Also, with a high motivation and determination, the author expects to propose a proper marketing campaign in order to help Coca-Cola strengthen its brand impression, and achieve better customers awareness.

3.7. Time horizons The mainframe concept of time horizon is to logically plan and organisation proper time frame whilst conducting the research. Within the scope of time horizons, there are two core of studies, includescross-sectional and longitudinal.Cross-sectional study requires a particular time to conduct the

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research, whilst longitudinal study exposes the study involving organisational change and development (Saunders M. et al., 2007). In general, the cross-sectional study is more appropriate rather than the longitudinal study under recent circumstance. Thus, this research is conducted in frame of the cross-sectional study, since the author only have a limit of time. 3.8. Research ethics In order to avoid conflicts and legal issue, all processes of gathering data, research design, data analysis, information usage, need to be conducted accordingly in frame of ethic. Either primary data or secondary data used in this research are confidential and belonged to Coca-Cola, the author could only use for investigative research only. It is illegal to broadcast it external. Therefore, a commitment of information usage has been signed in order to assure protecting the company. Limitations: Though the researcher received great supports from the organisation, tutors, friends, and family to conduct and successfully complete the investigative study; however, there are some limitations that the author would like to state clearly. Since the author is unable to use English as natives; hence, it is critical to interpret all information, or data analyse as well as demonstrating the ideas in proper English. However, the author has tried his best to explain and avoid misinterpreting the information. Secondly, the author has faced difficulty whilst accessing Coca-Cola information, since the information is highly confidential, therefore, the process of sorting and selecting proper information to use took longer than expect. Last but not least, due to the limitation of time and travel, the author was just able to conduct the research within five schools in Ho Chi Minh and only in Ho

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Chi Minh; thus, all information cannot achieve high quantitative value as expected.

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CHAPTER FOUR: FINDINGS AND ANALYSIS 4.1. Overview on Coca-Cola international: Asa Candler, who built the first Coca-Cola brand in the $ 70 billion, and also the first boss of The Coca-Cola not spare money on advertising to build brands. Since 1895, Coca-Cola soft drinks have been available in all states. Asa Candler made a campaign to introduce the largest-ever product at that time. Everywhere there are Coca-Cola marketing sales promotion team with too low a price for 5 cents a glass. At the same time on the mass media and advertising, Coca-Cola appeared with many unprecedented frequencies. To protect and branding, Asa Candler was thought to have a special packaging for the product. In 1916, only a year before his death, Asa Griggs Candler gave Tiffany bottle form vase is unmistakably of Coca-Cola. This sample package is registered patent protection and is also used to this day. The promotional efforts of Coca-Cola began with the "Drink Coca-Cola" oil on canvas awnings at the pharmacy. Asa Candler then names the new brand on the bottle to swallow not only sweet but also on the fan, a calendar and clock. From that day on marketing efforts and promotion combined with excellent quality of products has helped Coca-Cola brand into one of the brand's most famous and admired worldwide. One of the ways that Coca-Cola still maintains its good relationship with the consumer is always integrated into the activities of their entertainment. For example, the company organizes sports activities throughout to reinforce the highlights of its own brand. Previous time in 1903, Coca-Cola has used the baseball player famous for advertising at that time. And one of the famous sporting events and most lasting, the Olympic games have always listed the highlights Coca-Cola is the official sponsor. The Group also has very good friendly relations with the world football federation FIFA, NASCAR, baseball and solutions Association Hockey, USA. A series of tables long-term contracts with the Association of National athletes Coca-Cola has helped

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make a lot of great marketing opportunity, with 22 athletes and 87 champions in each year. Coca Cola always invest in the advertising strategies of its products. At the retail stores and in supermarkets, Coca Cola sold always at eye level, just before the corridor, or other eye-catching. To obtain this privilege, Coca Cola to pay the little bit of money. Another factor to the success of Coca Cola is a form of product presentation. Coca Cola is stored in aluminum cans or glass bottles outside a bright red label with the word Coca Cola caps in 45-degree pitch. With bright red and white with wonderful curves, Coca Cola has succeeded in compelling and engaging customers. Many customers are very impressed with the Coca-Cola ads, which are both impressed with the company's beverages. Now, we can say the big markets like the U.S., Europe, the Coca-Cola products are "dominated" although many other brands of fresh water were passed in recent times, especially from rival implacable competition Pepsi. Right from its inception, the development path of main products of the CocaCola is marketing and promoting products.

4.2. Data collection Vietnam market: 4.2.1. Products background:

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Most concerned/used product(s)

Products price feedback under customers perspectives

Primary purpose of customers purchases

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Customers satisfaction on purchased products Data analysis: According to above collected data, the organisation could develop a further step in order to understand more about customers needs and purchasing purpose, also experienced customers satisfaction toward the product(s), which they purchased. Positive results above contribute in giving the organisation more confidence to develop further to achieve higher success. The first graph shows products, which are mostly taken in favor of the customers daily needs.This graph resulted in the winning of soft-drink products. Apparently, not many people know that Coca-Cola has other products rather than Coke. Essentially, when the survey conducted, more than 83% of survey takers first thought of having coke review; only a minor group of survey taker has proper knowledge on other products of Coca-Cola. Within the pricing framework, the author fortunately known that there was an implied contract between Coca-Cola and Pepsi Co on the pricing issue. This means that these two companies went to agreement of setting the price stay in equal. None of them would go on a cheaper price. In consequence, the race of these giant corporates dependently relies on other perspectives and strategy. Customers have a wide rang of purchasing purpose, but the most importance in that they primarily depend on their interests. However, even with a large number of consumers, Coca-Cola has not succeeded in winning customers loyalty. Therefore, only when the organisation could able to understand its customers, their expectations as well as customers touching points, can the 28

organisation able to increase and boost up their sales revenue and achieve further customers loyalty. This is also an example for the following part on experiencing customers purchasing. 4.2.2. Buying experience:

Where products most purchased

Level of losing revenue to product substitutes (product similarity)

Coca-Colas primary rivals and the level of thread

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Criteria affect customers decision on purchasing Data analyse: In accordance with data collected in the second part of the survey, the organisation could understand more on where the most effective place their products were highly sold. Also, according to the graph, customers have the habits of purchasing drinks in the super market. Within the focus group discussion, the author learnt that, Vietnamese people have tendency to purchase more base on the products convenient features. Conveniences features in not only about how convenience the product can be carried, e.g. its design, weights, etc., but it is also about how convenience the consumers can get the products. If the customer has to choose between having coupon to get a cheaper price but take times to ride the place to get the products, and get products delivered at home with a slight upper price, most customers choose the second options. Under high school students, as a symbol of youth generation, high school students own more motivations, inspirations and determinations than ever group of ages; therefore, they would barely focus only on the products quality but also other features such as product styles. The cooler the product, the more it will be sold to this young generation. Nowadays, students or pupil, in general youngsters in Vietnam no longer depend on parents weekly allowances. Besides studies, they spend extra time on part time working jobs in order to earn cash to afford for their personal expenses; hence, these youngsters have great self-pride, as if the organisation could marketing its product as a symbol of youth, the would able to dominated this market segment. 30

Mentioned about youths self-pride, this is a two sides issue, contents both positive and negative affects to the organisation. As long as these young people can recognise the product value that the organisation could add to their personal brands, they will keep buying the products, but when there is something better they will easily switch to that products, therefore, the loyalty level in this market segment in unstable. This has been proven regarding to the second graph in this section. Coca-Colas biggest rival for many years is Pepsi. Pepsi used to be concerned as the symbol of youngster back in the past. Coca-Cola was not concerned as the youths symbol at the first place, since the organisation went with classic styles instead.But this has been changed; today, Coca-Cola and Pepsi both own a large amount of market shares in beverage industry. However, this could be changed with the new trend of living style, fashion etc., Recently, people all over the worlds are tracing back their memories with vintage styles, therefore, fortunately, Coca-Cola could think about bringing the heritage style once again. Primarily, this competition is endless. 4.2.3. Understanding brand:

Level of products purchase regularity

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Products differentiate

Ranking in Product Quality Data analysis: Regarding with three final graphs, Coca-Colahave achieve frequent revenues; and this number tends to growth further. However, Coca-Cola has not achieved greater ranking in product quality, seems like it is not much difference to some extend.On a bright side, the organisation step by step has stated their position of unique in style in order to satisfy the recent market segments.But in order to achieve greater success, it is important for CocaCola to not settle down on its recent success but to understand, learn more about the customers and keep moving forward. 4.3. Further analysis: Brand awareness: Coca-Cola has a great brand awareness compared to Pepsi the greatest rival. However, it is hard to define exactly who is taking the first position, and who is in the runner-up position. Coca-Cola recently has attracted more concerns and raises its brand awareness to upper level compared to the past decades. By learning and developing further knowledge on customers inquiries, Coca-Cola has slowly taken over the market share of other competitors. 150 survey takers toward their interests, their hobbies and other features have proved this. 32

Market share: Coca-Cola is the latecomer in comparison with Pepsi in Vietnam. The younger generation likes the youthful, dynamic and creative in the style of Pepsi rather than the classic, luxurious and elegance of Coca-Cola. Coca-Cola considers Vietnam is one of their top 25 markets over the last 10 years. That is the reason why in 2009, Coca-Cola decided to invest 200 million USD for CocaCola Vietnam. Coca-Cola believes this investment will bring their new products to the customers. They hope that the new product can combine the luxurious tradition with the youthful style to compare with products of Pepsi. Coca-Cola hopes that the index of growth in 2012 will increase 46% compared with 2007. One of the reason that make Coca-Cola has smaller market share in Vietnam, one of only four market that Pepsi has more customers than Coca-Cola, is Coca-Cola is the latecomer in comparison with Pepsi. In traditional, the North is the lager market of Coca-Cola, but the South is the land of Pepsi. Pepsi is the pioneer of soft drink in Vietnam. With strong marketing activities, Pepsi easily dominated all the market just after a short time appearing in Vietnam. Both Coca-Cola and Pepsi have competitivemarketing plans. Inpersistence, Coca-Cola first step get the market share from Pepsi by many intelligent plans. Customers satisfaction: The level of Coca-Colas customers satisfaction has been proven through the gaining in market share, greater brand awareness. In general, it is critical to clearly understand what the customers wants and needs, and since these wants and needs is rapidly changed throughout times; therefore, Coca-Cola need to regularly conduct strategic surveys in larger group and broader areas in order to gain deeper understanding about their customers. Also, this action will help the organisation to build a tactical plan of achieving customers loyalty.

33

CHAPTER FIVE: CONCLUSION Few years, sales of Coca-Cola signs of decline compared with rival PepsiCo, the company is enjoying a larger market share in the field of soft drink products do not contain carbonate. Still, by typing in the eyes of consumers, Coca-Cola has been gradually improved product design, making it friendlier to the environment and consumers. Coca-Cola has successfully transformed the customers perspective toward daily life. Likely, life is a sequence of moments connected with each other and in each moment is an opportunity for Coca-Cola created a bit of color. From the look and feel of the bottle design to sound exciting, action bottle opener and more fired up the nose is very distinctive taste of Coca-Cola excellent running down neck all make a very special feeling that Coca-Cola is a leading expert has made that special feeling. But with consumer emotions, memories and values are more important. Consumers would love to find out these ingredients in Coke, but the secret is always locked. However, one other secret is open to all people to know: do not change the quality of the product Coca-Cola bottles are produced in the United States. And this is evident through the improvement of quality of capitalist of brands including Coca-Cola classic(classic), less gas Coke(diet Coke), Sprite, Fanta, Coke Vanilla flavor (Vannilla Coke), Coke, cherry flavor (Cherry Coke), Barq, Mello Yello, mineral water Dasani, and Minute Maidsodaline, fresh juice, and canned juice. In Vietnam, Coca-Cola spent a great fortune on advertising, pure media and press. The Coca-Cola advertisements are usually broadcasted in high primary time frame, when many people watch should cost for advertising is extremely expensive. For example, every second on television advertising Coca-Cola, the organization have to spend thousands of dollars.

34

However the strong policy broadcast images of Coca-Cola has brought certain success. Coca-Cola market share has increased dramatically in Vietnam in particular and world in general. Besides, Coca-Cola should also focus on issues of food safety. There have been recent allegations of the Coca-Cola coloring may because cancer is a major obstacle to overcome that Coca-Cola. Beyond all, Coca-Cola gave man a drink change the world.

35

CHAPTER SIX: RECOMMENDATION Along with advertisement methods like: television commercial ads, electronic billboard ads, advertisement endorsements, etc., In order to achieve greater brand awareness and larger market shares, Coca-Cola should launch more marketing campaign within the ethical framework. Demonstrating their concerns about socials issues, showing their social responsibilities in order to add more value to their brand and gain greater concerns from the public. The author suggested the organisation to keep conducting and giving more benefit to the society; also, the author would like to skim through some of Coca-Cola events in order to prove for his idea of raising brand awareness. Coca-Cola to the community: Coca-Cola company played a leading role in the educational programs and community with many diverse activities to contribute to enhance and improve life for people in the region rural and urban areas nationwide. So far, the company has contributed over U.S. $ 600,000 for programs and community education in Vietnam. Learning Center Coca-Cola: Learning Centers program Coca-Cola in collaboration with Department of Education & Training and the Central Communist Youth League in the period of evolution in schools and provide cultural bar year in Vietnam. The objective of the Learning Center is to provide students equipped with advanced education system of modern computer networks and learning materials. So far, the company has invested U.S. $ 375,000 to establish and run this program. Currently has 40 Study Centre been established in 33 provinces nationwide. In 2002, all 40 Study Centre will be linked to internal information network Internet, which allows the board members, program partners and students communicate and exchange information over the network. Educational programs on the environment: Coca-Cola Company also sponsors contests Mai Blue Planet Green to raise awareness of environmental protection for 15 million students in elementary schools and secondary schools on the basis nationwide. The competition is held annually in collaboration with the Central Youth Union, aims to encourage students to learn about environmental issues as well as raise awareness about environmental protection in schools. 36

The factory tour: tour factory Coca-Cola soft drinks for students was conducted in April 2001 and became a model useful learning tool for schools school in Dist. Ho Chi Minh City and the surrounding area. More than 16,000 students, teachers and students took part in plant tours since the program was launched and is always connected with many business operations and sales of the company. Disaster Relief: Coca-Cola Company in Vietnam is one of the first foreign companies to participate in program assistance to flood victims in 1999. As soon as information about the biggest storm of the century devastated the central provinces, all employees of Coca-Cola Company has demonstrated the spirit of sharing food jacket make cash contributions, gift aid the victims of flood floods. Total gift aid, including food, clothing, book and cash amounting to $ 350 million has been sent to the flood victims. Coca-Cola Company has contributed gift aid to $ 1.2 billion aid flood victims in Vietnam in 2000. This amount includes funds from a heart rate yield the same shirt all sharing food company's staff, work with the support of the Company, to rebuild classrooms in flood damage last year in the central provinces and the amount of 200 million assistance to flood victims delta provinces of the Mekong. By the coordination of marketing campaigns and implementing social activities, Coca-Cola has gradually asserted its trademark in that country. The name Coca-Cola not only associated with soft drink beverages that have become a familiar brand to everyone.

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BIBLIOGRAPHY Barber, K., (2006) Brand Awareness, 3 (2), pp 32. [Online] Available from: <http://www.termiumplus.gc.ca/tpv2guides/guides/favart/index-eng.html? lang=eng&lettr=indx_autr2&page=175>Access date: 7 April, 2012 Dang, Q. (2009) Top Brand: Coca-Cola Light, Vnbrand News, [Online] Available from: <http://vnbrand.net/Thuong-hieu-hang-dau/coca-colalight.html> Access date: 7 April, 2012 Granat, J, P. (1994) Persuasive advertising for entrepreneurs and small business owners. United Stated: Haworth Pres Inc. Keegan, W. J., and Mark C. G., (2002) Global marketing management, 7 th edition, New Jersey: Prentice Hall. Kotler, P. (2003) Marketing Insights from A to Z: 80 concepts every manager needs to know. New Jersey: John Wiley and Sons. Kotler, P. (2003) Marketing management, 11th edition, NJ: Prentice hall. Le, Y. (2011) Coca Pepsi: The war in Vietnam market. Vietnamnet News, [Online] Available from: <http://vef.vn/2011-12-24-coca-pepsi-cuoc-thu-hungtai-thi-truong-viet-nam> Access date: 7 April, 2012 Petley, J. (2003) Advertising, United Stated: Smart Apple Media Rossiter, R. L., (1985) Advertising communication models 12 (1), [Online] Available from: <http://www.acrwebsite.org/volumes/display.asp? id=6443>Access date: 7 April, 2012 Saunders, M. et al. (2007) Research Methods for Business Students, 4th edition, London: Prentice Hall. Shaw, S. (2007) Airline, marketing and management, 6th edition, Printed in Great Britain by MPG book Ltd, Bodmin, Cornwall. Solomon, M. R., et al (2006) Marketing real people, real choices. 4 th edition, New Jersey: Prentice Hall. Thanh, B. (2009) Coca-Cola double investment in to Vietnam market. VnExpress News, [Online] Available from: <http://vnexpress.net/gl/kinhdoanh/2009/09/3ba13353/> Access date: 7 April, 2012 Trehan et al (2008) Advertising and sales management, 2nd edition, Delhi: Rahul Jain 38

Voss, G. B., and Voss, Z. G., (1997) The journal of Service Marketing, 11 (4), pp 278 298, MCB University Press

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APPENDIX INVESTIGATIVE SURVEY Personal Information: Full name: Occupation: Email(s): 1. Gender: School: Address: Ages: Telephone:

Part 1:Product background Which product have you bought from Coca-Cola? - Please tick () Soft drink Sport drink Juice drink Water Energy drink Tea and Coffee in the box for your selection You can choose MORE than ONE option 2.

How did the products price compared to your expectation? -

Please tick () in the box for your selection You can choose ONLY ONE option 3. Poor Very Good Fair Excellent Good

Did you use product coupon or receive discount?- Please tick () in Yes No

the box for your selection You can choose ONLY ONE option 4.

What was the purpose of purchasing product? - Please tick () in Self-interest Party/Camping Family purchase Others:.. Gifts

the box for your selection You can choose MORE than ONE option

(To be continued) 3. Please rank your satisfaction on the product(s), which you purchased - Please tick () in the box for your selection You can choose ONLY ONE option Satisfied Acceptable Fair No

Others:. 40

Part 2: Buying experiences 6. Where did you buy the product(s)?- Please tick () in the box for Supermarkets Fast food courts Convenient stores Schools cafeterias Others:. your selection You can choose MORE than ONE option 7.

Would you buy another product with the same mean?- Please tick

() in the box for your selection You can choose ONLY ONE option 8. Yes No

Which brand would you choose?- Please tick () in the box for your Pepsi Big Cola Ben Chuong Duong Tribeco

selection You can choose MORE than ONE option 9.

Others: Which criteria effect you decision of buying?- Please tick () in the Good taste Styles Quality Price

box for your selection You can choose MORE than ONE option

Others (please specific):

(To be continued)

41

Part 3:This part is to stimulate understanding about the organisations brand 10. Have you purchased or used Coca-Cola products or services within the past few weeks?Please tick () in the box for your selection You can choose ONLY ONE option Yes No 11. What do we do that makes us unique from competitors?Please tick () in the box for your selection You can choose MORE than ONE option Taste Style Quality

Others:

12. Compared with competitors, where do we rank in this specialty? Please tick () in the box for your selection You can choose ONLY ONE option Better Worse Much better Much worse Same

13. Please give your questions/recommendation (if any) for us to improve our products? Thank you for spending time taking our survey!

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LOGBOOK Date Activity Contact Problems encountere d significant issues 20/6 Have the class Project Tutor \ (boilton) arising Objectives require clarification Resolution problems of or

or issues. Including reflective statements. Objectives rewritten and agreed with coordinator. I will note the action points in my plan. I enjoyed the discussion.

15\7

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Choose object

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43

in the library TutormrHieu

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understand clearly Check paper out my

18/1 2

The email tutor

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44

10/1

Phone call to My friend in class Mr. duc Phone call

How to write Borrowing

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8/2

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45

17/3

Met Mr. duc My friend in class in his home Phone call

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the Thinking about the market in vietnam so I can give the right question for object

+84 questioner and

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The

second Truong hongngoc

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meeting with (Coca-Cola staff of and old friend in marketing) coffee shop Phone +84902465009 from call Cola

company recent year

in interview with her boss at the

5/4

Survey collection data

to At 5 high school in Choose the center of shool

the Survey

break time and in the end of class .

hochiminh city

when ,where

15/4

Have meeting Coca-Cola

the Truong hongngoc at (Coca-Cola and her

To find out Discuss more

to

get

staff more boss) information call

information

of the strategy of the Coca-Cola in this time and future

with my friend Phone boss +84902465009

46

25/4

Email to the Mr. Peter Paddon Wrong Mr. paddon get feedback peter tutor and (university the Bolton) chapter of and

at Giving 1 feedback

me

the and

helping me to use some source in the

2.something

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1/5

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compare with Mr. Peterfeedback

6/5

Upload

to Web www.turnitin.ac.uk

18%

similar Repair my project

turnitin.ac.uk

of the other and reduce to 3% source

47