Soft Drink essay

In addition, there are other companies as Trisect and Tan Hip Path; the names have become more familiar to consumers. For example of the Coca Cola’s products have been sold in Vietnam market in 1960 and Pepsi were present at Vietnam in 1 991, products of the two companies had been supported by most of the customers. Due to the peculiarities of Vietnam, Coca-cola Vietnam found that the market is very diverse so it has towards the young and dynamic.

In fact, the brand is not directly market Segments that the process of market segmentation requires a suitable brand for each segment to determine the value of a certain individual consumer.Coca-cola segment focuses on two main criteria that are the geographical characteristics and demographic characteristics. Geography: Coca-Cola Vietnam has tried to distribute with the dense network from rural to urban, from the plains to the mountains, from south to north. But the main focus remains concentrated in densely populated places. The Coca-cola products appear everywhere, from restaurants, lard and small beverage stores, from the streets to the alleys. Demographic characteristics: As mentioned above,Coca-cola Vietnam focus on youth with youthful dynamic style, here is coca- cola successful. According to the survey, the coca-cola has been welcome from the youth. Coca cola – the largest beverage manufacturing corporation of the world was successful in many countries around the world.

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So when Coca-Cola penetrates the Vietnam market, they have chosen a strategy to serve the entire market. Coca-Cola initially focuses on the market demand as well as the characteristics of population density high rate.While the period penetrate deep into the Vietnam market, Coca-Cola places in turn offices at Roth (Hanoi), central (Dad Nag), South (Ho Chi Mini City) and gradually expanded to the neighboring cities. After researching Vietnam market, Coca- Cola identified the cities where have the ability to very high consumption products.

Overall, the beverage market of Vietnam is considered potential. So Coca-Cola began penetration from 1960 to February 1994 and then returned to continue. It is expected the market which will continue to grow significantly in the next year (in 2012 increased 47% compared to 2007).In Vietnam, the assessment of Coca-Cola will grow dramatically in the next 10 years, maybe in he top 25 markets most of its potential. Coca-Cola executes segment primarily by geography (focusing on the big cities where the population density and the high frequency of use) and demographic (mostly dynamic young – subjects that need the high use).

This is the target market of Coca- Cola. The beverage market has long been considered a fertility ground for other giants to act freely in Vietnam. Some well-known brands are Coca Cola, Pepsi, Trisect, Tan Hip Path, ORCA, and Wonderful.However, now in Vietnam, Pepsi and Coca Cola are gradually dominate over the domestic average market because of the available renowned brand and long-standing tradition. According to Vietnam Beer ? Alcohol – Beverage Association, the Coca-Cola and Pepsi occupy 80 percent of beverage market in Vietnam. In Vietnam, the balance among domestic companies and multinational corporations is more and more disproportionate. The investment, the long- term strategies of multinational corporations, the backing of aged-old brand name and strong finance have made many Vietnam companies departing from the beverage market.

These are the reason that the beverage market of Vietnam becomes monopolistic competition market. In Ha Non, some surveys Of eating places where Pepsi is present, Coca-Cola surely absent and vice versa. National Cinema Center only offers the products of Pepsi, meanwhile, Megastar cinema is the almost exclusively of Coca Cola, from regional nameplates to desks and chairs having its logo. Not only are the movie theaters where vie between the јo big companies, but also the fast-food outlets have become “place” for the exclusive racing.

The people who like Coca Cola, certainly never find products of this brand in the chain store of Lotteries and KEF. According to Tara Guan Hip – Commercial Corporation Director of Southern Airlines (Stats), in 2009, the Ministry of Health issued regulations of safety food. Then the small and unknown production units of bottled water were shrinking. However, the situation is recently easing the productions back to expansion.

In parallel, the foreign labels, more recently Japan, have penetrated in turn the Vietnam market.Forecast will have more intense competition in the beverage market. Previously, when Vietnam opened the market, with great power, Pepsi dominated the beverage market of Vietnam from South to North. Tactics of the label apply cheap, plus restive and high quality; Pepsi crushed most local competitors within no more than a month. It freshwater Trisect have to stop short heyday to switch soy milk production.

Not only Coke – Pepsi, Vietnam market is also witnessing a fierce competition, the domestic soft drink companies accompanied by tactics to gain more market share.In 2001, the Number 1 which is product of Tan Hip Path, attacked energy drink market. At that time, Red Bull, Rhino and Lilliputian prevailed on this segment.

With cheap policy than all other competitors and marketing strategies, Number 1 had earned more than 30% arrest share after only 3 months. The competition becomes tenser when the two “giants” Coca Cola and Pepsi also in turn introduce Samurai and Sting. However, gold Sting of Pepsi has failed even then, nondisclosure, this company continued to hit strawberry Sting and quickly led the market of young consumers.Mr.. Unguent Quant Ann. – Account Executive of NEO advertising company, appraise the beverage market in Vietnam not having many local firms emerged, largely due to human and financial capacity is weak.

As we know, the beverage market Vietnam has long been confirmed by two big names in the world: Coca-cola and Pepsi. Besides, there are other beverages such as Trisect and Tan Hip Path. These names have become so familiar to consumers, such as Coca-cola products already were on the Vietnam market in 1960 and Pepsi which presented in 1991 supported by most customers.Under the intense competition between the two major companies, and the firms in the industry, it creates a barrier to entry for potential competitors which are very high. However, this is an attractive industry, diverse demand, so the risk of taking part is relatively high. In the Vietnam market, refreshments branch include: Pepsi, Coca-Cola, Trisect, Tan Hip Path, Wonderful and etc. The outstanding two biggest giants in the industry are Coca-cola and Pepsi. Because there are many choices for customers in the selection of products, so the competition between firms of the industry is very high.

The companies have been continuously improving production, strengthen communication activities, and promote their brand, diversification of products to attract customers. In short, the industry is highly competitive so it requires the efforts of the company to its operations to ensure not only the competition but also expand markets in Vietnam. The service sector for entire customers, this is the industry which has many customers and supplier’s beverage on the market today, and the beverage forms are diversified.The buyers are more and more choices between firms within the industry. The advent of organizations and associations to protect consumers, the bargaining power of buyers are more advanced than before. Customers will be required to provide products with better quality, completely safe, ensure no harm to health.

There are some ingredients in beverage processing unavailable, they must be imported from abroad, so the awe material foreign suppliers can make it very difficult for companies in the industry.But the beverage industry has long-standing, especially the famous brand cooperation, the relationship between the suppliers has established for a long and fairly durable. Moreover, in the beverage industry, companies buy raw materials from different sources in order to avoid risks. So the bargaining power of suppliers is not high. Primary pressure of substitute products is the ability to meet demand from products in the industry. Additionally the factor of price, quality, and environmental factors such as culture, society, genealogy can affect the threat of substitute products.These are adverse conditions for the industry.

Currently, the products can be replaced in that industry: beverage drinks process in the beverage stores such as lemon juice, tea, milk, juice, coffee. This affects bottled drinks tray market industry. Coca- cola is only active in the beverage field, including drinking water, soft drinks and soda. The company has created a lot of beverages with flavors, different models to meet the diverse demand, such as: less gas coke, sprite, fantasy, vanilla coke, coke, juice etc. In recent times, the company has researched and plopped constantly to add new products for consumers in Vietnam.

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