212 7QT0130 01 Discussion Question 9 Group 01 PDF

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212_7QT0130_01 – Brand ManagementDiscussion Question 9Pick a company. As completely as possible, characterize its brand portfolio and brand hierarchy. How would you improve the company’s branding strategies?(Prescribed Textbook – Question 1, Page 423)Group 1No. Name ID Student 1 Phùng Lê Bảo Ngọc 19...

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212_7QT0130_01 – Brand Management Discussion Question 9 Pick a company. As completely as possible, characterize its brand portfolio and brand hierarchy. How would you improve the company’s branding strategies?

(Prescribed Textbook – Question 1, Page 423)

Group 1 No.

Name

ID Student

1

Phùng Lê Bảo Ngọc

197KS12636

2

Lê Huỳnh Đăng Khoa

197KS33038

3

Ngô Phạm Thụy My

197TM29455

4

Nhữ Ngọc Minh Ánh

197TC29822

Date of submission: 31st March 2022 Word count: 2857

Table of Contents Appendix ............................................................................................................................. 3 I. Introduction ...................................................................................................................... 4 II. Brand Portfolio................................................................................................................ 7 III. Brand Hierarchy .......................................................................................................... 11 IV. Improving the company branding’s strategy ............................................................... 15 V. Conclusion .................................................................................................................... 21 VI. References ................................................................................................................... 22

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Appendix Figure 1. The history of Suntory PepsiCo Vietnam Beverages Company with 8 highlights throughout its background. ................................................................................................. 4 Figure 2. Suntory PepsiCo Vietnam Beverage .................................................................... 5 Figure 3. The brand hierarchy of Suntory PepsiCo Vietnam Beverage. .......................... 12 Figure 4. The changes in packing of two products (Sting, Aquafina). .............................. 15 Figure 5. Some environmental construction was run to raise awareness......................... 16 Figure 6. Vòng Tay Nhân Ái activity. ................................................................................ 17 Figure 7. Mùa Hè Xanh, Tiếp Sức Mùa Thu activities. ..................................................... 17 Figure 8. The Water Hope - provides a clean water system for the community and protects the sea .................................................................................................................. 18 Figure 9. Join hands to clean up the coast of Vietnam. .................................................... 18 Figure 10. Lavie’s bottles are made of 50% of recycled plastics. .................................... 19 Figure 11. Coca-Cola Disrupt 2022 Competition............................................................. 20

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Suntory PepsiCo I. Introduction

Figure 1. The history of Suntory PepsiCo Vietnam Beverages Company with 8 highlights throughout its background.

On December 24, 1991, the International Beverages Company (IBC) was established. In 1994, PepsiCo officially entered the Vietnamese market when it entered into a joint venture with IBC International Beverage Company. In 2003, the company was renamed PepsiCo Vietnam International Beverage Company. In 2004 through the merger and acquisition of the Dien Ban factory, the company expanded production and business in Quang Nam. In 2007, SPVB further developed soy milk products. In February 2010, the new factory in Can Tho officially went into operation. The largest PepsiCo factory in Southeast Asia was inaugurated in Bac Ninh in October 2012. In April 2013, the strategic beverage alliance Suntory PepsiCo Vietnam Beverage (SPVB) was established between Suntory Holdings Limited and PepsiCo Inc.

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Figure 2. Suntory PepsiCo Vietnam Beverage.

Suntory PepsiCo Vietnam Beverage Company Limited (SPVB), 100% foreign capital, specializes in manufacturing non-alcoholic beverages and mineral water. The principles of quality control of input materials and processes follow the standards of Suntory Holdings Limited - one of the largest beverage groups in Japan, and PepsiCo one of the leading beverage corporations top of the world, always appreciated. The company’s mission and vision are to continue strengthening and maintaining a leading position in the beverage industry while living with the company’s values. With a passion for maintaining “Quality Commitment” and meeting the market’s increasing requirements, the company has constantly improved production processes, expanded factories, and successfully built customers’ trust for SPVB. In the future, SPVB will continue to pursue the goal of sustainable development, bringing benefits to the company’s employees and business partners and contributing to the community where the company does business.

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This assignment will initially analyze the brand portfolio and brand hierarchy of SPVB. Then, some recommendations for SPVB to improve the company’s branding strategies before concluding the study.

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II. Brand Portfolio A brand portfolio is defined as the leading brand of a company that covers all other brands or companies operated by a company. A large company usually possesses various brand names to introduce products to fulfill the requirements of different market segments. A brand portfolio also helps remove customers’ confusion about the origin of a brand by showing all the outcomes of the brand and their child brands. About Suntory PepsiCo, as a portion of the international food and beverage brand, has a portfolio of diverse types of drinks that can fulfill consumers’ different demands. Unlike their mother brand PepsiCo, Suntory PepsiCo only concentrates on developing and distributing beverages for Vietnamese markets. The portfolio comprises 12 brands divided into seven distinct categories to satisfy as many customers’ demands as possible. Hence, it enables PepsiCo’s drinks to be consumed anytime. ★ Coffee: the daily behavior of having coffee for Vietnamese people has existed for decades; however, nowadays, young people and millennials seek an alternative

product

that

they

can

purchase

at

convenience stores for a quick go. As one of the leading Ready-to-drink Coffee Brands in Japan, Boss Coffee, which expertly harnesses the ingredients from coffee beans 100% authentic, is brought to Vietnam to fulfill the need of the market. With its rich coffee taste, customized to best fit with strong Vietnamese taste, Boss coffee is a perfect go-to choice for busy Vietnamese young working adults. ★ Carbonated soft drinks: This category is the most loved and consumed product in Vietnam, led by Pepsi. This internationally renowned cola-flavored carbonated soft drink inherits numerous long-standing historical values. In addition, 7-Up, together with Pepsi, has dominated the Vietnam beverage market for a long time with fantastic lemon flavor filled in various bottle sizes from 320ml, 390 ml, 1,5l. 7

Besides, Mirinda, Mountain Dew, and Gatorade are the part of this category that account for most of the brand revenue from the Vietnam market. ★ Energy drinks: Sting is the only representative in this category; however, it has dominated other brands with its distinct flavors and design, which attract consumers and satisfy their tastes. ★ Tea: Lipton is the number one tea expert globally, with more than 100 years of experience researching and manufacturing the best tea according to the worldwide international stands, and in Vietnam, it is not exceptional. The other tea brand also well-known in Vietnam is Tea+, initially the first Suntory brand to launch in Vietnam in August 2013. With four different flavors to meet a variety of needs, this product assists in the suppression of fat absorption, offering users a healthier lifestyle.

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★ Bottled water: Aquafina and Revive are so familiar to Vietnamese people as they appear in the market for a long time and are consumed daily. The other product that is gradually spreading in the market is Good Mood, which was launched in Vietnam in April 2019, pioneering to establish of a new category of Value Added Water by optimal technology combining clear water and natural ingredients, adjusting to suit Vietnamese people’s taste. ★ Juice drink: Twister, the number one fruit juice expert globally, and was Vietnam’s No.1 brand in the juice industry in 2020 in terms of value and output. Despite having several flavors, it is mainly known for Orange Fruit Pulp which comes in convenient packs from 320ml can, 350ml pet, 455ml pet, and 1l pet. ★ Refreshing Malty Beverage: a new concept of nonalcoholic beer, which many brands pursue, and PepsiCo also developed their product, All-free, the barleyflavored beverage. First introduced in Vietnam in 2021, with the signature barley flavor, no sugar, no calories, All-free is the perfect substitute for traditional beer for those who want to experience beer but are allergic to alcohol. Usually, four types of brands make up the average brand portfolio: flanker brands, cash cow brands, low-end entry-level brands, and high-end prestige. Each category has a purpose, and in many circumstances, a company will build and sustain brands that serve different functions to complement each other. Suntory PepsiCo also has some of these types of brands: ● Flanker brand: A flanker brand is a new brand launched by a firm that already owns a well-known brand in the same product area. By targeting a distinct group 9

of consumers, the new brand can compete in the category without jeopardizing the old item’s market share. ➔ Example: All-free is a non-alcohol and beer-alternative drink from Japan (Suntory), which has just been released on April 2021, with an ultra-light, ultra-crisp, and ultra-refreshing taste. This exciting drink has 0.0% alcohol, no sugar, no calorie and is segmented in the Refreshing Malty Beverage category for people who love to drink beer but do not want to be drunk. ● Cash Cow: is a brand already strong in the market, bringing in a sustainable revenue stream without spending too much money on marketing campaigns. ➔ Example: The cash cows of Suntory PepsiCo are Aquafina, Tea+, Twister, Sting, Pepsi, and 7-Up. Six products as mentioned above are considered cash cows of the company since consumers often buy them when they are thirsty (Aquafina), when they are at the internet cafes (Sting), when they want something to refresh after work/ study (Tea+, Twister), and when they are in a party or eating fast food (Pepsi, 7-Up). ● Low-end entry-level brands: A low-end entry-level brand is added to a portfolio of brands to be supplied at a lower price than the portfolio’s other products or services. The concept behind low-cost entry-level brands is to entice buyers. ➔ Example: Among the Bottle/ Mineral Water category (Aquafina, Revive, Goodmood), Aquafina is cheaper than the other two products. So that Aquafina is the low-end entry-level brand of the company. ● High-end prestige: ➔ Example: All of the products of Suntory PepsiCo are at a reasonable price (around 7.000VN ~ 20.000 VND) depending on the capacity (330 ml ~ 1 liter). Hence, there is no product of this type.

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III. Brand Hierarchy Brand hierarchy assists in displaying the number and nature of common and distinctive brand elements, featuring variations throughout the company’s product or service ranges. The brand hierarchy shows the graphic brand elements in ordering and graphically refers to the entire branding strategy of the complete portfolio. A brand may have multiple hierarchy levels, and there are four levels, respectively: Corporate or company brand, Family brand, Individual

brand, and

Modifier. ● Corporate brand: is at the highest level of the brand hierarchy. At this level, all products and sub-products are linked to one cohesive and consistent image, naming, or an identity structure. Using corporate brand equity to create brand recognition, each product’s message must express the company’s value proposition homogeneously. ● Family Brand: The company’s brand name will be linked to one or more product or service categories, and they will be marketed under that name. ● Individual Brand: At this level, the company is associated with one product category only and has its unique brand name, image, and identity. They customize and develop their separate marketing programs to build their brand equity, and if the brand fails, there will be less danger to other brands and the corporation itself. ● Modifier: is to distinguish the product, allocate a specific item, model type, version, or configuration of a product.

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Figure 3. The brand hierarchy of Suntory PepsiCo Vietnam Beverage.

Since Suntory PepsiCo Vietnam Beverage (SPVB) is a joint venture between PepsiCo Inc. (USA) and Suntory Holdings Limited (Japan) in Vietnam, the company’s product range is a combination of the two. There are four different levels in Suntory PepsiCo Vietnam Beverage hierarchy: ● Corporate Brand: PepsiCo Inc., and Suntory Holdings Limited. ● Family Brand: PepsiCo and Suntory produce and run two different kinds of beverages separately, creating a diverse product portfolio for their target customers. While Suntory Holdings Limited commits “to create harmony with people and nature” (Mizu To Ikiru), PepsiCo’s foundation is “Performance with Purpose,” - demonstrating our belief that the company’s success will always be closely linked to the sustainability of the surrounding environment. So, SPVB is pursuing the goal of sustainable development, benefiting the company’s employees and business partners, and contributing to the communities in which the company operates. ● Individual Brand: ○ Oolong TEA+ Plus ○ ALL-FREE 12

○ Good Mood ○ BOSS Coffee ○ Lipton tea ○ Aquafina ○ REVIVE Electrolyte Drink ○ Twister ○ Pepsi ○ 7-Up ○ Sting ○ Mirinda ○ Mountain Dew ○ Gatorade ● Modifier: ○ Oolong TEA+ (4): Oolong TEA+ (PET 350ml, (PET 455ml, PET 1L), Oolong TEA+ Lemon ((PET 350ml, PET 455ml), Oolong TEA+ No Sugar (PET 455ml), Oolong TEA+ Matcha (PET 455ml). ○ Good Mood (2): Good Mood Water with Yogurt taste (PET 455ml), Good Mood Water with Real Orange extract (PET 455ml). ○ BOSS Coffee (2): Black Coffee, Milk Coffee with the size of CAN 180ml. ○ Lipton tea (2): Lipton Green Tea with Honey Lemon Flavor (PET 350ML), Lipton Black Tea with Lemon Flavor (PET 455ml). ○ Aquafina (2): Aquafina pure water (PET 500ml, PET 355ml, PET 1500ml, PET 5000ml), Aquafina Soda (CAN 320ml). ○ REVIVE Electrolyte Drink (2): Revive Isotonic Original, Revive Salted Lemon in three sizes (PET 390ml, PET 500ml, CAN 330ml). ○ Twister (2): Tropicana Twister Orange Fruit, Tropicana Twister Passion Fruit in different sizes PET 350ml, PET 455ml, PET 1L, Can 320ml, RGB 240ml.

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○ Pepsi (3): Pepsi, Pepsi No Calorie, Pepsi No Calorie with Lemon Flavor in different sizes PET 330ml, PET 390ml, PET 1,5L, CAN 320ml, RGB 300ml. ○ Sting (3): Sting Energy Drink (PET 330ml, CAN 320ml, RGB 240ml), Sting Energy Drink with Red Strawberry Flavor (PET 330ml, CAN 320ml, RGB 240ml), Sting Energy Drink with Coffee Flavor (PET 330ml). ○ Mirinda (4): Orange, Sarsi, Soda Cream, and Iced Tamarind flavors in different sizes (PET 330ml, PET 390ml, PET 1,5L, CAN 320ml, RGB 240ml). ○ Gatorade (2): Gatorade rehydrating, Gatorade Lemon Flavor with the size of PET 500ml.

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IV. Improving the company branding’s strategy Besides the ordinary marketing strategies such as product advertisement, TVC, social media marketing…, Suntory PepsiCo’s branding strategy also focuses on Sustainable Development with three main activities: Sustainable packaging, Giving back to society, Protecting water resources and the environment. ● Sustainable packaging: In 2018, Suntory PepsiCo launched a new design of Aquafina mineral water bottles to reduce plastic waste and reduce the weight of Sting’s packaging and a few other bottles to save plastic in the production process.

Figure 4. The changes in packing of two products (Sting, Aquafina).

They also collaborated with the Vietnam Student Association (Hội Sinh viên Việt Nam) to recycle plastic bottles… into brick. There were nine toilet constructions from plastic-bottled brick, which helped reduce 25% of the construction costs, reduce 4300 wasted bottles and 25 kilograms of shredded plastics, and ensure water sanitation for the children.

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Figure 5. Some environmental construction was run to raise awareness.

● Giving back to society: During the process of formation and development, Suntory PepsiCo has brought a lot of value to the community through activities such as loving arms (2012 - 2020), offering policies to support the young generation through social activities and events such as Vòng Tay Nhân Ái, Mùa Hè Xanh, Tiếp Sức Mùa Thi…

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Figure 6. Vòng Tay Nhân Ái activity.

Figure 7. Mùa Hè Xanh, Tiếp Sức Mùa Thu activities.

● Protecting water resources and the environment: They conduct education on water resource conservation and protection through the “Mizuiku” program to propagate the awareness of water resource protection among elementary school students. In addition, Suntory PepsiCo provides clean water to the community in Quang Nam province, organizes campaigns to clean up Vietnam’s coastline, save energy, and treat water in its production process. 17

Figure 8. The Water Hope - provides a clean water system for the community and protects the sea

Figure 9. Join hands to clean up the coast of Vietnam.

It cannot be denied that Suntory PepsiCo’s strategy branding activities recently achieved impressive results. However, to help their campaigns and follow-up activities work better, more effectively, and have broader brand awareness, Suntory PepsiCo needs to improve the following points: ● Produce/ Recycle more sustainable products: Sustainable packaging development is to use recycled plastic, reduce virgin plastic, and use plastic replacement materials to move towards a future without plastic waste. Lavie (belonging to Nestlé Group) is one of the pioneer beverage companies applying this campaign to mass production lines.

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Figure 10. Lavie’s bottles are made of 50% of recycled plastics.

Although Suntory PepsiCo is also gradually using sustainable packaging since 2018 and has made significant contributions to environmental protection, some of its products still do not minimize the risk of plastic waste. Not to mention some of Suntory PepsiCo’s drinks such as 7-Up, Revive,... Those products are plastic bottles that are still quite dark in color, and the shrink film around the bottle has not been minimized, causing waste of plastic and difficult to recycle. Suntory PepsiCo needs to pay more attention to plastic saving solutions through the appropriate bottle design to attract environmental consumers but still retain its brand identity. ● Organize competitions: Suntory PepsiCo’s arch-rival, Coca Cola hosts the Coca-Cola Disrupt 2022 contest. Coca-Cola Disrupt 2022 is a contest to find creative ideas organized by Coca-Cola Vietnam to create an exciting and 19

realistic playground for dynamic students who desire to innovate to create new things and miracles for the fast-moving consumer goods (FMCG) industry. This contest is not only looking for talent for Coca-Cola but also an opportunity to promote the brand widely among student consumers.

Figure 11. Coca-Cola Disrupt 2022 Competition.

Suntory PepsiCo should also have similar contests to find young talents and exploit the new creative thinking of Gen Z. Besides, primary research and creative contests are a method for brand positioning and effective communication. That...