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TABLE OF CONTENT
Page
I. Executive summary 2
II. Introduction 2
1. Background 2
2. Missions 3
3. Vision 3
4. Values 3
III. Marketing Environment Analysis 4
1. Macro Environment 4
3. Internal
IV. Marketing Analysis
1. Positioning
2. Marketing Mix
3. SWOT
4. SWOT Analysis
V. Key issues
A. Objectives
B. Marketing Strategy
C. Action Plan
VII. Controls
VIII. References
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I. Executive Summary:
Coca Cola Company is the world’s leading soft drink maker, operates in more than 200
countries around the world and owns or licenses more than 500 brands of nonalcoholic
beverages.
This paper is a marketing plan recommended for Coca Cola Company. Firstly, we are going
to analyze the Coca Cola Company (PESTLE, Marketing Mix and SWOT). Then, there are
some key issues regarding Coca Cola Company concluded after the analysis. And finally,
II. Introduction:
1. Background:
Coca-Cola (also Coke) history began in 1886 when the curiosity of an Atlanta pharmacist,
Dr. John S. Pemberton, led him to create a distinctive tasting soft drink that could be sold
at soda fountains. He created a flavored syrup, took it to his neighborhood pharmacy, where
it was mixed with carbonated water and deemed “excellent” by those who sampled it. Dr.
Pemberton’s partner and bookkeeper, Frank M. Robinson, is credited with naming the
beverage “Coca-Cola” as well as designing the trademarked, distinct script, still used today.
The first time appear of Coca Cola in Vietnam is in 1960. After that, Coca-cola Indochina
Pte Company was established officially in Vietnam on August 1995. Since then, Coca-cola
has some locations in Vietnam, which were united as one Beverage Company called Coca-
cola Vietnam with the head office located in Thu Duc District, Ho Chi Minh City.
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2. Missions:
3. Vision: To achieve above missions, Coca Cola Company has developed a set of goals,
responsibilities
o People: Being a great place to work, where people are inspired to be the best they
can be
o Portfolio: Bringing to the world a portfolio of beverage brands that anticipate and
4. Values: Coca Cola shared values that they are guided by are:
o Leadership
o Passion
o Integrity
o Accountability
o Collaboration
o Innovation
o Quality
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III. Marketing environment analysis:
1. Macro environment:
a. Political:
Government has the power to set fines for the companies not meeting their standard law
requirements. The changes in laws and regulations, such as tax policy, government
regulations, social welfare policies, political risks might affect the company as well as their
entry in foreign countries. The political conditions, even the civil conflict can impact to the
markets and other governmental changes that affect their ability to penetrate the developing
and emerging markets that involves the political and economic conditions. However, Coca
Cola continuously monitoring the policies and regulations set by the government.
Tax policy
Tax is the issue which any business operating in Vietnam is under the impact of laws and
regulations. However, the tax service has recently questioned for many large foreign
companies in Vietnam. Tax Agency has written requests for consideration local inspection
hole operations, profitability of the business to conclude if companies report losses for the
purpose of increasing costs to evade taxes or not. Among them, Coca Cola Company
The biggest difficulty is prompted many experts to be the multinational corporations often
use the " guise " of proprietary material or technology , that agency is difficult to determine
the actual cost of inputs Vietnam businesses spend. Coca Cola, according to the tax agency
costs flavorings imported from the parent company accounts for about 70-85 % of the cost
of plant in Vietnam. The data cannot be determined by the agency because of not knowing
whether the proportion of flavor additives from Coca Cola parent company in Vietnam is,
compared to other markets to put conclusions. However, this is the major reason Coca cola
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Vietnam proves for their losses to dodge the government policy of tax. It also makes a bad
Government regulations
As a famous brand, manufacturer, distributor and seller in beverage industry, the Coca-
Cola Company and other soft drink manufacturers are subject to antitrust laws of general
applicability. The Company may have an exclusive right to manufacture, distribute and sell
a soft drink product if its product is in substantial and effective competition with others of
the same general class in the market. It is the general regulation in business in every
country. However, there are some regulations strictly limited and prevent the expanding.
For example, the Coca cola has experienced public policy which challenges them about the
sale of soft drinks in elementary, middle and high schools. At January 1, 2006, a number
of states had regulations restricting the sale of soft drinks and other foods in schools. Many
of these restrictions have existed for several years in connection with subsidized meal
programs in schools.i This regulation cares about the youth’s health as well as nutrition.
This led to obesity among students and it affected directly to the business of Coke Company
in that period. Moreover, the restrictive legislation, if it enacted for a long time widely, it
Coca cola offer high-quality brands and reputation in many countries on over the world.
Company significantly understand and believe that everyone should have benefit. The
business should bring benefit and refreshment to the people, which is central to the way
The Coca cola operate in communities around the world. The company plays the role as a
good neighbor and responsible citizen by helping people. In Vietnam, the company set up
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many regional and local foundations, organized charity programs in local. Some reality
Overall, Vietnam has a steady political condition. All above pose opportunities for Coca
cola Vietnam to develop the reputation with social programs. They do these well to gain
the people support. However, political situation or state regulation is also the important
point that Coca cola Vietnam must notice. It can prevent their operation effectively in the
future.
The opportunities for Coca Cola are Social welfare policies to improve their image.
The threats are Tax policy, government regulations to disclose negative information and
labels.
b. Economic:
The economy in Vietnam is growing rapidly. It is advantages for the company's operations.
Cola, Muhtar Kent said that this was still an attractive market as consumption of new people
In Vietnam, the amount of Coca cola users is competitive with many other beverage
companies. Vietnam is a attractive market for domestic and foreign beverage companies.
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Internal company operating in this industry such as Tan Hiep Phat is very successful in
touching consumers. The competitor, PepsiCo always plays important role in sharing the
marketing with Coca cola Vietnam. There are both opportunities and challenges in
The predicted GDP of Vietnam in 2014 will increase to ~ 6%. Growth of economy will
directly effect on the purchasing power of consumers. This growth will rise prices of goods
Vietnam has a high inflation rate per year. It is also control by the government but its level
still impact to the company’s operation, and particularly affects to the price of Coca Cola’s
products. In addition, the inflation rate of Vietnam economy also has been fluctuating for
years, which also affect directly to Coca Cola consumption in an unexpected way.
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The threats: Inflation rate require to increase the price of products. So the price
c. Social, demographic:
Healthier lifestyles has strongly influenced the sales of non-alcoholic beverage sector for
many customers desiring to bottled water and diet colas like Coca-Cola Light or Zero,
instead of beer or other beverages. Most of the population is within the youth. Many
customers are more concerned about their health in a long term. In Vietnam, young people
Besides the young population factor, income distribution also is the impact on business
of Coca Cola. The ability of paying for beverage depends on income. People who have a
high income are willing to pay for beverage more usual. Income distribution is not equal
among all people. However, in urban and industrial areas, where has economic
development capita income is higher than other places. In Vietnam, HCMC, Hanoi and
other big cities have more amounts of people using Coca cola.
Additionally, another factor is the buying habits. Retailers can use consumer buying habits
to facilitate their own product placement and retail strategy. Buying habits can be
understood with the mean of the buying habits of different people. Coke’s price is not
expensive which adapt to most of people in every class. However, people who have ability
to pay have more chance to choose Coke for their beverage than someone who can’t afford
and do not want to spend their money for entertainment beverage. Otherwise, the youth
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The opportunities:
consumption
The threats: Demography, income distribution (the less crowded the places are,
d. Technological:
Technological techniques are valued. This creates opportunities for new products and
advanced products. High and modern technology will increase the company’s productivity
Researches are necessary for the understanding customers and create the new products.
Coca Cola company always observe and update information from their customers. This
aims to satisfy customers. The studies were conducted to investigate the habits or income,
ability to pay, including taste and health needs. From the study of mass, Coca Cola launched
products and services best suited to the age and needs of the customer. Diet Coke is an
example.
High technology offers many advantages for producing, packaging. In order to continually
grow the business, The Company need to be increasingly efficient in use of resources. This
packaging, equipment, energy and agricultural resources will enable Coca cola’s system to
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Internet leads to the efficiency of company's advertising, marketing and promotional
programs. The new technology advances of television and internet that use incomparable
effects for advertising through the use of media. Those advances make the products seem
attractive. This supports the selling promotion of the products. Coca-Cola in media tends
The threats: Internet have a bad sight also (any scandals can spread widely and
quickly)
Technology is good and bad too. It can contribute to the improvement but getting down if
e. Environmental:
The Coca cola work for low carbon products, zero waste business, and inspire and lead
change for a more sustainable future. Coca Cola worked with the Carbon Trust to calculate
the carbon footprint to make the business more environmentally responsible. Since 1994,
the Company has managed to reduce the weight of our plastic bottles by 38.5%. At the
same time, Coke’s glass bottles are already 37% recycled and cans are 50% recycled
aluminum. The Company also introduced Plant Bottle packaging in 2011, which is 100%
recyclable and made partly from sustainable plant materials, reducing the reliance on fossil
Season factor also is an important factor. Products of coke are mentioned as beverages,
which help people to slake. It’s most suitable for summer when the weather is hot.
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Therefore, the consumption is effected on season. In summer, the demand of beverages is
f. Legal:
Competitive laws are the important laws for business and their same sector companies for
a healthy market. However, competitive in Vietnam has not developed completely. The
it more perfect day by day. Government has built a system of legal to solve these problems.
especially the production of food and drinking water. The fuel, chemicals, gases released
from the manufacturing process can negatively pollute the environment of land, water, air
... The law stipulates the allowed level of the toxic wastes into the environment. If exceeded,
these businesses can be fined, or suspended business if toxic levels harm to environment
unacceptably. Vietnam put a great concern in these issues nowadays. There are many
company violated this law of environment protection. Aware of this issue, Coca cola
usually organize program for environmental protection such as the Happy Recycling which
is supported by people.
Health and safety: The Coca cola are committed to conducting business in ways that
provide all personnel with a safe and healthy work environment. Coke’s Safety
Management System Standards and supporting requirements are for worker safety and loss
occupational safety and health and loss prevention. The system globally operates under the
same standards and requirements. The Company also has a statement of occupational safety
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and establishes the Safety Board of the Company as a body authorized to solve and cares
Product safety is the most concerned issues of consumers. The Coca cola always cares
about the safety and quality in every parts from products to services. The core criteria of
Coke are to ensure safety and quality through strong governance and compliance with
In Vietnam, the problem of product safety is extremely important. There are so much food
poisoning in current time that make people worry and not believe in undefined drinks and
foods. Coca-Cola Vietnam customers accused of being "prime" the bottle mold Minute
Maid Teppy (fresh orange juice) type of 240ml, affecting the health of consumers. In the
document dated October 29, Coca-Cola unexplained mold floating on the water bottle
containing anything, whether hazardous or not, which shows that the two bottles of orange
juice Minute Maid Teppy client was found Long An is only present in the "isolated
incident" occurred in manufacturing shipment. This document is for that reason "error" in
the bottle is due to the can "no longer make bottle cap security tightness. This is
unreasonable.
All above is to link to the success of Coca Cola so that they surely keeps the promise of
quality products and services. Documents of laws or regulation, statements help The Coca
cola maintain and improve their reputation. However, it also requires the continuous efforts
to adapt these laws to bring the best products and services, especially in a sensitive market
like Vietnam.
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2. Micro Environment: Porter’s Five Forces Model:
Finance
To enter the soft drink industry, it requires high fixed costs for production, warehouses,
trucks, labor and marketing activities. As there are limited bottlers, new entrants may need
to build their bottling plants. It requires large amount of capital. This makes it extremely
difficult for an entrant to compete with the incumbents and gain any visibility.
Coke has a long history of heavy advertising. This makes them dominate with their strong
brand name and loyal customers all over the world. This makes it virtually impossible for
Fear of Retaliation
It is very difficult to enter into a market place where already well-established players are
present such as Coke and Pepsi in this industry. So these players will not allow any new
entrants to easily enter the market. They will give a tough time to new entrants which could
result into price wars, new product line, etc in order to influences the new comers.
This industry is enriched with enormous statistics of substitutes such as: water, tea, beer,
juices, coffee, etc presented to the end-consumers. As consumers concern more about
health, bottled water and sport drinks are increasingly popular. This trend is epitomized in
the beverage consumption pattern of the ageing baby boomers. But all the suppliers of these
substitutes need massive advertising, brand equity, brand loyalty and making sure that their
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brands are effortlessly accessible to the consumers. Most of the substitutes cannot
counterpart the existing players' offers or diversify business by offering new product lines
Soft drink industry companies spend huge amount of money on advertisement and
marketing to differentiate their products from others and also create brand equity, base of
Switching cost
Switching cost of the substitute products is very low so consumers can easily shift towards
Perceived price/ value in this industry is very low because all products are comparatively
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c. Bargaining power of Suppliers – Low
The Coca Cola Company is the largest beverage producer in the world and exerts
significant power over its suppliers to receive the lowest price available from them.
Most of the raw materials desirable to manufacture soft drink are basic merchandise such
as flavor, color, caffeine, sugar, and packaging etc. The suppliers of these commodities
have no bargaining power over the pricing due to which the suppliers in soft drink industry
Raw materials for soft drink are basic commodities which are easily available to every
producer and have low cost which makes no difference for any supplier.
Switching cost
All the raw material ingredients are basic merchandize and easily accessible to
manufacturer. Switching cost to the suppliers is very low; manufactures can easily shift
Availability of substitutes
Soft drink products have standard raw material ingredients which could not have any
Threat of forward integration is very low in this industry because manufactures of the soft
drinks need huge manufacturing plants, bottling network, strong distribution network and
best shelf space. Suppliers could not afford such kink of well-established network.
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Importance of buyer industry to suppliers
Soft drink industry is very important to the suppliers because buyers purchase larger
amount of raw material. This encourages suppliers to remain in good contact with buyers.
Product of the suppliers is very important input for the manufacturers in this industry
The buyers of Coca-Cola and other soft drinks are mainly large grocers, convenience stores,
supermarkets, and restaurants. The soft drink companies distribute the beverages to them
for resale to the consumer. The bargaining power of the buyers is strong. Large grocers,
convenience stores, supermarkets and fast food restaurants buy large volumes of the soft
Besides, with end-user, they have many choices because of diversity in beverage’s
providers. Moreover, in the currently, healthy drinks are more concerned. Therefore, buyers
The industry is almost dominated by the Coke and Pepsi. This industry is well known as a
doupoly with Coke and Pepsi as the companies competing. These both players have the
majority of the market share and rest of the players have very low market share. Otherwise;
The competitive pressure from rival sellers is the greatest challenging faced by Coca-Cola.
PepsiCo is the main competitor for Coca-Cola and these two brands have been in a power
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struggle for more than a century. PepsiCo is fiercely competing with Coca Cola over market
share. Coke and Pepsi primarily are competing on advertising and differentiation rather
than on pricing. This resulted in higher profits and disallowed a decline in profits. Pricing
war is nevertheless experienced in their global expansion strategies. Moreover, there are
some rivals of Coca Cola in Vietnam market, such as Wonder Farm, Tribeco, Tân Hiệp
Phát,… Although Coke goes behind in the beverage field in the world, it is a pioneer in the
Vietnam market
Composition of competitors
Except the Coke and Pepsi, other competitors are of unequal size especially in local
markets. Coke and Pepsi both players have the majority of the market share and rest of the
This industry needs huge manufacturing plants and contracts with bottling network
companies. These contracts make sure that bottler's must have standard manufacturing
Degree of differentiation
Marketing and product differentiation have become more significant. Coke and Pepsi
mainly are competing on advertising and differentiation rather than on pricing. Coke has
bet-know brand name in the globe. More prominetly, its consumers would not do without
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Strategic Stake
Coke's core operation is the manufacturing and distribution both for itself and beneath
franchise, of non-alcoholic beverages and related products. Because of the strategic stake
the main brands of the Coke has been around for a lot of years
3. Internal:
Coca Cola has strong brand recognition across the globe. The company has a leading brand
value and strong brand porfolio. According to Business Insider, approximately 94% of the
world population aware of the red and white logo of Coca Cola, and “Coca Cola” is the 2nd
understandable word in English. There are nearly 10,450 Coca-Cola products are consumed
in the world in each second. Interbrand, a branding consultancy, ranks Coca Cola the top
leading brands in their best global brands ranking in 2009 and 2010. In 2013, it valued Coca
Besides, Coca Cola owns a large porfolio of product brands: more than 500 brands, with a
profolio of more than 3,500 beverages; product lines include diet and regular sparkling
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beverages, 100% fruit juices, fruit drinks, waters, sports and energy drinks, teas and coffees,
and milk. It owns and markets four of the world’s top five soft drink brands: Cocacol, Diet
Coke, Sprite, and Fanta. The fact show that Coca Cola now significant focus on carbonated
The best global brand in the world is strength of Coca Cola, it helps company
b. Resources:
Tangible
located in Ho Chi Minh city, Hanoi, and Da Nang. In 2011, this three factories were
merged under centralize management structure, the factory in Ho Chi Minh city
plays the key roles, and the two others became subsidiaries of the Coca Cola
With three direct manufacturers in Vietnam, Coca Cola makes sure about their
number of products provided, saves both time and money instead of importing from
- Materials
+ Raw materials: carbonated water, high fructose corn syrup, caramel color,
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- Distribution chanel: Coca Cola uses parallel distribution system, include 1 level
+ 2 levels chanel: Coca Cola uses sole distributors, wholesalers and retailers to
expand their products coverage. In 2009, Coca Cola has 56 sole distributors and 48
Cola
Intangible
- Technological resources: Coca Cola owns numerous patents, copyrights and trade
relates to the products and the processes for production; the packages; the design
and operation of various processes and equipment used in business; and certain
other parties.
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- Intellectual property: Coca Cola own numerous trademarks that are very important.
Trademarks are valid as long as they are in use and their registrations are properly
maintained. Besides, Coca Cola is a very powerful brand with strong identity and
huge value (according to the Annual report 2013 of Interbrand consultant company)
In 2012, Coca Cola gained US$48 billion in revenue equal to the 70th largest economy in
the world. When Coca Cola penetrated in Vietnam market, they invested US$163 million
approximate US$38,500 million. In 2012, Coca Cola announced a new investments worth
US$300 million in Vietnamin the next three years, and the total investment during the
period from 2010 to 2015 up to US$500 million. This new investments will be used to build
new infrastructures, branding, create more new jobs, and implement sustainable
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IV. Marketing Analysis:
1. Positioning:
Coca Cola's brand positioning to consumers as carbonated soft drink No. 1 in the world
- a No.1 trademark product of world. Currently, Coca-Cola still place at the third
position in the list of top brands with a value of U.S. $79.2 billion in 2013. Coca Cola
is a global brand and 98% people in the world knew Coca Cola.
The table below shows the brand’s value of top 10 leading brand in the world from
2009 to 2013:
As a beverage product makes people awake and strong to back, bring amazing pleasure.
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The promise of Coca-Cola: "Bring benefits and enjoyable for all those who are served
by us", the company strives to make "fresh new "market, enriching the workplace,
environmental protection and strengthening public media. Through its activities and the
first step on the path of different development the benevolent efforts of the company's
Slogan: "All our customers in the world are people who deserve to enjoy the best quality
beverage".
Coca Cola lead far away Pepsi in the beverage market in the world, but the various
sectors of the Pepsi business helped it earn more money. Specifically, the market share
of Coke drinks is 42% compared to 31% of Pepsi, but Coke's annual revenue reached
only 35.2 billion compared with 57.8 billion figure of Pepsi. Each year, Coke spent $ 2
billion on advertising, while Pepsi only $ 1.1 billion loss for this activity.
In the context of social networks becoming more powerful today, Coca-Cola and Pepsi
both use social network to serve for branding. It looks like Coke leads on the social
network. Coke has 139 600 employees, compared with 294,000 staff working for Pepsi.
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However, on Twitter, Coke has 391 248 followers, compared with some 142 766 people
watched Pepsi. On Facebook, Coke has over 80 million fans, compared to 31 million
of Pepsi.
2. Marketing Mix:
a. Products:
Coca-Cola is the most popular and biggest-selling soft drink in history, as well as the
Coca-Cola might owe its origins to the United States, but its popularity has made it
truly universal. Today, you can find Coca-Cola in virtually every part of the world.
Nowadays, Coca-Cola Company has given many kinds of Coca-Cola products, such as:
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o Coca-Cola Classic
o Diet Coke: also known as Coca-Cola light, is a sugar- and calorie-free soft drink
with a deliciously crisp taste that gives you a light boost in your busy day. Today,
Diet Coke/Coca-Cola light is one of the largest and most successful brands of The
o Coca-Cola Zero: was created with young adults in mind and offers great Coke
In Vietnam market, Coca-Cola Classic and Diet Coke (Coca-Cola light) is popular
o Fanta: with Orange, Strawberry and Fruit taste. Fanta is the second oldest brand of
The Coca-Cola Company and our second largest brand outside the US. Fanta
Orange is the leading flavor but almost every fruit grown is available as a Fanta
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flavor somewhere. Consumed more than 130 million times every day around the
o Sprite: Sprite is the world's leading lemon-lime flavored soft drink. Sprite is sold
in more than 190 countries and ranks as the No. 3 soft drink worldwide, with a
strong appeal to young people. Millions of people enjoy Sprite because of its crisp,
clean taste that really quenches your thirst. But Sprite also has an honest,
straightforward attitude that sets it apart from other soft drinks. Sprite encourages
o Dasani water
o Others
diverse market, so Coca-Cola was oriented its products into the youth segment (with
sophisticated style, youthfulness and enthusiasm). That was the right direction of Coca-
Cola when it was successful and well received by the youth a lot. Besides, Coca-Cola
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b. Packaging:
- Can: 330mL
- Glass bottle
design, this company recently provided the new PET plastic bottle
hands and help to increase the ease of using product. For instance,
Company give the design of “Fanta Fun”, this type of bottle with
Coca-Cola Vietnam always change the image in package depend on seasons or events,
such as in Tet Holiday, it uses the image of swallow bird (the symbol of Spring) in all
designs – can, bottles, boxes. Or in some special events like World Cup, Coca-Cola
products use colorful images of soccer players and some countries’ flag.
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Note: about the materials of all packs:
- Glass bottles are 100% recyclable and contain an average of 30% recycled
materials
- Plastic bottles are made from PET (polyethylene terephthalate) and are 100%
recyclable
- All cans are made from 100% recyclable aluminum and contain around 50%
recycled aluminum
c. Price:
Coca-Cola Company set price for products based on the value received of
customers. It realized that the buyer’s value perception is more important than the
spending cost of sellers, so this company built the prices depend on the customer’s
perceived value.
Vietnam market to hope that it will attract a large number of customers and gain the
market share.
Pricing by products: Coca-Cola Company has given many products, so they are
different in form, size, materials … then they are priced at different scales
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Here are the numbers of comparing a kind of product in Vietnam market. Currently,
the price of Coke products in Vietnam market is higher than the corresponding
products of the same type, but the difference in price is not high. It is possible to
look through the price list is updated recently between Coca-Cola and Pepsi:
d. Promotion:
To get the great success in Vietnam market, Coca-Cola Company’s marketers have
consumers, and realize that promotion activity is one of the best tools to promote
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the image of any products. Coca-Cola Company has launched many promotions to
attract buyers, gain the market share and even get the concurring from customers in
social responsibility part. For example, in 2013 and early 2014, Company has
o “Flip Coca-Cola, Find the Lucky” from June 10th to September 7th in 2013.
Samurai, both plastic bottles and glass bottles). Person can flip the bottle
caps and find the lucky code under caps to have a chance getting the prize
o “Happy New Year with Coca-Cola” from 11th to 19th of January in 2014.
across the country in order to contribute a cozy New Year and convey the
good wishes for people having difficult circumstances. That was the 8th year
organizing this activity to give gifts into poor families and union members.
Many Coca-Cola red trucks and volunteers directly brought 2,500 gifts to
each person at Thuong Tin (HN), Dong Anh (HN), Hoa Vang (DN), Lien
Chieu (DN), Thu Duc (HCMC), Can Gio (HCMC), Cu Chi (HCMC). The
total amount given included 50 tons of rice, 7,500 bottles of soft drinks,
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o In Tet Holiday of 2014, Coca-Cola has launched 3 impressive programs:
e. Place:
Chi Minh City. In 2001, Vietnam Government agreed to merge these manufactories
under centralized management structure, with the main manager role of CCBV in Ho
Chi Minh City. Three manufactories in three parts of Vietnam (Northern, Central and
Southern) help Coca-Cola Company expand the distribution network, which is the
most important part for the sales of company - in region and always provide products
enough for the retailers (supermarket, minimart, cafes, restaurants …) in those areas.
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Because Pepsi – biggest rival of Coca-Cola – entered into Vietnam market before, so
Pepsi has reached more retailers than Coca-Cola. So company often focus on expand
and attract more retailers by providing support activities such as gifting, support for
3. SWOT:
a. Strengths:
The best global brand in the world in terms of value: According to Interbrand, The
Coca Cola
World’s largest market share in beverage: Coca Cola holds the largest beverage
Strong marketing and advertising: Coca Cola’ advertising expenses accounted for
more than $3 billion in 2012 and increased firm’s sales and brand recognition. Coca
Cola organized so many interesting and attractive events. Besides, Coca Cola also
invests strongly in ads on television. These ads are so effective in popularity image
Coca Cola.
Suitable price with almost social class: Coca Cola is very popular beverage in the
world and their price is also cheap. In Vietnam, Coca Cola is suitable with every class
Most extensive beverage distribution channel: Coca Cola serves more than 200
countries and more than 1.7 billion servings a day. In Vietnam, two main distribution
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channels of Coca Cola are very effective:
Customer loyalty: The firm enjoys having one of the most loyal consumer groups.
Bargaining power over suppliers: The Coca Cola Company is the largest beverage
producer in the world and exerts significant power over its suppliers to receive the
healthy living, water stewardship and many others, which boosts company’s social
b. Opportunities:
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Increasing demand for healthy food and beverages: Due to many programs to fight
obesity, demand for healthy food and beverages has increased drastically. The Coca
Cola Company has an opportunity to further expand its product range with drinks that
packaging. Technologies are developing day by day, this is a great opportunity for Coca
Coca Cola could increase and maintain its beverages market share.
c. Weaknesses:
Coke, Fanta, Sprite and other carbonated drinks. This strategy works in short term as
consumption of carbonated drinks will grow in emerging economies but it will prove
weak as the world is fighting obesity and is moving towards consuming healthier food
and drinks.
still focusing only on selling beverage, which puts the firm at disadvantage. The overall
consumption of soft drinks is stagnating and Coca Cola Company will find it hard to
penetrate to other markets (selling food or snacks) when it will have to sustain current
level of growth.
High debt level due to acquisitions: Nearly $8 billion of debt acquired from CCE’s
acquisition significantly increased Coca Cola's debt level, interest rates and borrowing
costs.
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Negative publicity: The firm is often criticized for high water consumption in water
Brand failures or many brands with insignificant amount of revenues: Coca Cola
currently sells more than 500 brands but only few of the brands result in more than $1
billion sales. Plus, the firm’s success of introducing new drinks is weak. Many of its
d. Threats:
Changes in consumer tastes: Consumers around the world become more health
conscious and reduce their consumption of carbonated drinks, drinks that have large
amounts of sugar, calories and fat. This is the most serious threat as Coca Cola is mainly
Water scarcity: Water is becoming scarcer around the world and increases both in cost
and criticism for Coca Cola over the large amounts of water used in production.
Cola’s carbonated drinks have adverse health consequences. For this reason, many
product labels. Products containing such information may be perceived negatively and
Decreasing gross profit and net profit margins: Coca Cola’s gross profit and net
profit margin was decreasing over the past few years and may continue to decrease due
Competition from PepsiCo: PepsiCo is fiercely competing with Coca Cola over
market share in BRIC countries. Although in Vietnam, Coca Cola still leads the
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Saturated carbonated drinks market: The business significantly relies on the
carbonated drinks sales, which is a threat for the Coca Cola as the market of carbonated
4. SWOT Analysis:
SO STRATEGIES
($77,839 billion)
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O1. Bottled water consumption S2+S3 vs O1+O4:
food and beverage. Research and develop products which are good for
WO STRATEGIES
amount of revenues
O2: High technology the healthy consumers with amazing advertising programs.
healthy food and beverage. Products made from healthy materials (related diversification)
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O4: Growing beverages
consumption in emerging
markets
ST STRATEGIES
($77,839 billion)
T4. Competition from PepsiCo Buy with the suitable price to compete with Pepsi Co (market
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T6. Saturated carbonated
drinks market
From these above SWOT, we are going to conclude following issues regarding to Coca Cola
Company.
V. Key Issues:
Meanwhile, as we mentioned above, consumers have become more health conscious and
reduce their consumption of carbonated drinks, drinks that have large amounts of sugar,
calories and fat. If Coca Cola still not develop their products, their sale could be decrease
fast.
2. Brand failures or many brands with insignificant amount of revenues: Coca Cola currently
sells more than 500 brands but only few of the brands result in more than $1 billion sales.
Plus, the firm’s success of introducing new drink is weak. Many of its introduction result
in failures.
3. Competitor Pepsi: Pepsi is a very strong competitor of Coca Cola. If Coca Cola does not
keep the development, it is completely possible that Pepsi can be exceeding Coca Cola.
A. Objectives:
To make solutions for above issues regarding Coca Cola, we are going to set following
objectives:
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2. Bringing images of new products popular to customers in an effective way through
marketing strategy.
B. Marketing Strategy:
Coca-Cola is one of the leading manufacturer in beverage industry in the world. Coca-
Cola offers variety of brands such as Coca-Cola Classic, Diet Coke, Fanta, Sprite,
Dasani water, etc. The Coca-Cola brand has been adopted the strategy of global brand.
They are considering the world market as single market place and use consistency
marketing strategy for many years. However, now the trend is differencing marketing
Product go through a series of distinct stages: Introduction, growth, shake out, maturity
and decline. In the world market, Coca-Cola is defined as a dominant player in United
States, Europe and Asia, Africa. In U.S.A & Europe it has reached maturity stage where
it can’t expand its market more but if we consider Asia, it is still in the growth phase.
Coca-Cola is currently going through the maturity stage in Western countries. This
maturity stage lasts longer than all other stages. Management has to pay special
attention to products during this stage of the product life-cycle. During the maturity
compared with the same period the previous year, from $ 11.47 billion the same period
a year earlier to 11.04 billion U.S. dollars. Meanwhile, in the fourth quarter (2013) profit
fell 8.5%, from $ 1.87 billion the same period a year earlier to 1.71 billion U.S. dollars.
During the third quarter, Coca-Cola's profit fell 24% over the same period the previous
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Specializing in Vietnam, Coca-Cola is concerning as a growth stage. Although
declaring loss in many years but the revenue of Coke is not stop increase in many years.
According to statistic of Ho Chi Minh City tax department, the revenue of Coke in 2010
(http://kinhtedautu.vn/news/detail/1538/dau-tu-nuoc-ngoai-va-doanh-nghiep-dan-
toc.cnv)
So the strategic market objective of Coca- Cola in Vietnam should increase competitive
Business Strategy:
When investigating Miles and Snow's four strategies, defenders, prospectors, analyzers
and reactors, we define that Coca-Cola act as an analyzer. We think this strategy suitable
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and continue research and develop to expand new product that regarding to exist
product line.
Pepsi- the main competitor of Coca- Cola has the number of beverage product
equivalent to Coca in Vietnam. Coca-Cola core product is Coca-Cola and it has many
products such as Fanta, Sprite, Samurai … that developed from carbonated products.
They develop their added product in each brand such as Strawberry Fanta, Forest Fruit
From objectives mentioned above, we are going to offer some solutions for improving
1. Product Strategy:
Research and development new beverage packaging and product portfolio of Coca-Cola
is one of the solution for Coca- Cola to expand competition. It can help gain brand value
R&D products which are good for health of customers, made from healthy materials
can change the negative image of Coca with difficult people and expand market share.
Improve packaging by beautiful and creative design, useful to create new feeling for
Besides good design, the beverage container is unique in the way the consumer is
encouraged to re-use it. The material to produce beverage is friendly with environment
(eco- friendly). Increase brand value for Coca- Cola. This product can satisfying
customers.
2. Price Strategy:
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Price strategy of coca in order to provide appropriate price to consumers and make them
comfortable about price and product quality, short the distance between introduce
Coca-Cola have a high market share, competitor pressure has forced customer
sensitivity to price to be fairly high, sales volume is of course high and profit margin is
fairly low as the Coca-Cola products are fast moving consumer goods. The price
strategy based on the customers’ psychology. For example, the housewives also prefer
to buy the cheaper products. This points to penetration strategy. Penetration pricing
means the setting of lower rather than high prices to achieve potentially dominant
market share.
This can only be done where demand for the product is believed to be highly flexible,
basically demand is price sensitive and either new consumers will be attracted, or
existing consumers will buy more of the product because of a low price.
A good penetration strategy may lead to large amount of sales and large market shares.
The main product may be priced low to attract sales, customers are then sold
accessories. This strategy will work nicely in promoting re-use of Coca-Cola packaging
The product that achieves high market penetration often becomes the industry standard,
of how consumers use the beverage container. Currently, the price of Coke products in
VN market is higher than the respective products of the same type, but the difference in
3. Advertising:
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Advertising is very important with any brands and products, especially with new
products. There are Advertising Forms that Coca Cola Company can apply:
by 2015.
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products being advertised, like
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• Weaknesses: Email’s from users on the social networking
advertising.
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Besides, in Vietnam, there is just one official website of Coca Cola Company, but that
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Introduction about Coca Cola Company: this helps breading the image of company
more popular.
News: providing customers last new information regarding to Coca Cola Company
Company.
Interactive activities: Improve the interaction between customers and website. For
example, website can provide some interesting games regarding products of Coca
Cola Company. It should also provide online support tools for customers.
4. Personal selling:
The sales force needs to communicate with current distribution channels for Coca-Cola.
The instant Personal selling of Coca Cola Company in Vietnam is quiet good. But in
Vietnam, Coca Cola should open more vending machines which can serve customers
24/7.
5. Sales promotion:
Now, Sale promotion is the well way to impact on consumer behavior, stimulate sales.
The promotion program must match lifestyle, psychology and personality of customer,
such as winning promotion program on Coke products with attractive prizes (travel,
dinning out with idol, smart phones, music concert tickets for Kpop, US-UK, etc.)
customer, Coke should not make "addiction", especially with targets customer is
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We find some types of sales promotion and analyze strength and weakness, tactics and
requirements.
companies, such as
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the event by purchasing the Weaknesses: Large brands competitions for
winning is lower.
6. Public relation:
The PR activity bring a new positive image, creative, energetic, familiar and close to
Press release can increase brand image appeal, show socially responsible of company.
Coca Cola can often focus on activities for young people such as organize or sponsor a
number of sports activities, trips, adventure, and singing contest ...to increase its level
7. Direct marketing:
Direct marketing’s effectiveness can be measured directly. If Coca Cola Company sent
out one million mail advertisements/promotions, and ten thousand customers can be
tracked as having responded to the promotion, Coca Cola can see the campaign led
Besides email, Coca Cola should also take full advantages of social networks such as
Facebook, Youtube, etc. Customers can respond directly through these channels.
C. Action Plan:
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reaction of customers
to product.
social responsibility.
Bread image of
TV Advertising After Press Release 6 months
product to customers
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VII. Controls:
Control market testing Collect feedback from customers to After finish Market
Control Sales Promotions Evaluate from the Sales Report and have 2 months after
Promotions
VIII. References:
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