COCA COLA

I/ Coca Cola Vietnam Background

In 1886, Coca-Cola history began when the curiosity of an Atlanta pharmacist, Dr. John S.
Pemberton, created 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.1 Coca-cola is distributed by 14
million distributors all over the world nowadays.

In 1960, Coca-cola was the first time introduced in Vietnam. 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

II/ Vision and Mission

In the strategic management model, clear vision and mission statements are very vital for
alternative strategies to be formulated and implemented.

Vision statements have to answer the question “What do we want to become?” while a mission
statement answers the question “What is our business?” A clear business vision will help the
firm build a comprehensive mission statement and a clear mission is needed before alternative
strategies can be formulated and implemented

So developing a good vision and mission is essential for any firm and a big company like Coca
Cola is not an exception.

1. Vision

A good vision need to meet three components which are core values, core purpose and BHAG
(Big Hairy Audacious Goal). Core values and core purpose are core ideology and BHAG can be

1
Coca-cola History, https://www.worldofcoca-cola.com/coca-cola-facts/coca-cola-history/
considered as envisioned future which needs both 10-to-30-year BHAG(s) and a vivid
description

Elements of a good vision

By Dr. Hoa Thi Thu Ho, Strategic Management Lecture

“To continue to thrive dispatched in the next 10 years and beyond, we must look ahead and
understand the trends and forces will shape our business in the future and move quickly to
prepare for what is to come. We have to get ready for today and tomorrow” 2. This is Coca Cola
Vision in 2010; it creates one long-term destination for the business and provides a "roadmap"
for winning together with bottling partners. The world is changing day after day. The world and
the individual country are changing. To be suitable for the environment in each country, Coca
cola poses a vision called “2020 Vision” as an improved vision for future aims.

The current vision is: “Our vision serves as the framework for our Roadmap and guides every
aspect of our business by describing what we need to accomplish in order to continue achieving
sustainable, quality growth.” 3

No Components Identification Evidence/ Improvement

2
Coca-cola Company, Vision mission and values, http://www.coca-colacompany.com/our-
company/mission-vision-values, By Coca-cola Company website
3
Coca-cola Company, Vision mission and values, http://www.coca-colacompany.com/our-
company/mission-vision-values, By Coca-cola Company website
 Yes No
1 Core values X Evidence
2 Core purpose X Evidence
3 BHAG X Evidence
Current vision: ““Our vision serves as the framework for our Roadmap and guides every
aspect of our business by describing what we need to accomplish in order to continue achieving
sustainable, quality growth.” (http://www.coca-colacompany.com/our-company/mission-vision-
values, 21/12/2013)”

CORE VALUES

Core values are set to define the criteria, attitudes and behaviors that will be required to make the
“2020 Vision” real in Coca vision. This vision and values are made throughout the years, most
recently in 2020, also known as the “Coca Vision 2020” including:

First is Live Our Values. It serves as a compass for Coca cola company’s actions and describes
how they behave in the world. In leadership, Coca Cola encourage employers to shape a better
future by the best leading role in beverage industry. In collaboration, Coca is looking forward to
operating collective power. Coca cola is also reality in integrity of every area they are and have
responsibility for giving accountability. The passion is extremely important so that it is
committed in heart and mind of every Coca cola member and inspire to people. Coca cola
continuously support a diversity of products and it becomes a criterion inclusive as Coca Brand.
Especially in quality, Coca cola has a slogan: “What we do, we do well”. It is proved that the
quality of Coca Cola’s soft drinks is always in the best rate and favored by more people. The
program promotes the highest standards in product safety and quality, occupational safety, and
health and environmental standards across the entire Coca-Cola system. Coca-Cola does not
contain alcoholic, and company do not add alcohol as an ingredient. Any traces levels of alcohol
existing in Coke, governments and religious organizations have recognized that is a result of
natural processes, are completely normal and are acceptable in non-alcoholic foods and
beverages.4

4
Coca-cola Company, Product safety and quality, http://www.coca-
colacompany.com/sustainabilityreport/me/product-safety-and-quality.html#section-safety-and-
quality-in-every-serving, By Coca-cola Company website.
Secondly, Coca cola focuses on the Market, especially on needs of consumers, customers and
franchise partners. Getting out into the market, listen and observe helping them to learn and
understand more their business environment. They become a world view focusing on execution
in the marketplace every day. However, the curiosity is never satiable because it is the factor
stimulating the learning and development.

Thirdly, Work Smart is one of the most important core values. They always act with urgency,
remain responsive to change, have the courage to change course when needed, remain
constructively discontent, work efficiently. These are the smart way to work that brings more
success to Coke in the future.

Fourthly, Coca cola act like an owner by understanding needs and what to do well for
themselves and their customers. An owner must have a smart system to operate and must focus
on building their values, positioning in the beverage market. The action of rewarding for people
who take risks and find better way to solve problem is a good solution to increase and develop
the loyalty. Learning form the outcomes is also a qualification of an owner. Finally, Coca cola
inspire creativity, passion, optimism and fun as their brand.

CORE PURPOSE

Core purpose is the organization’s for being, and it is also a part of core ideology besides core
values. With new vision, 2020 vision, Coca Cola has been set up a big aim to “continue
achieving sustainable, quality growth” in the beverage industry

BHAG

As well as a good core ideology, Coca Cola includes it’s envisioned future with BHAGs and a
vivid description below, which can conjure up pictures and images of a great leader as well as
firm in beverage industry

 People: Be a great place to work where people are inspired to be the best they can.
Attract, engage and retain the best talent by knowledge, inspiration of passion, recruiting,
developing and advancing women, achieve true diversity.
 Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and
satisfy people's desires and needs with more than double in serving to over 3 billion a
day. Coca cola accelerates growth, acts to ensure the next generation of youth fallings in
love with Coke, continues to increase the values of portfolio with many actions such as
developing the innovative premium brands, bringing this innovation to the market
quickly, satisfying needs of consumers, using updated high technology and ensure the
standard of products.
 Partners: To be the most preferred and trusted beverage partner, nurture a winning
network of customers and suppliers, together we create mutual, enduring value. Thinking
and acting like an integrated global enterprise.
 Planet: Be a responsible citizen that makes a difference by helping build and support
sustainable communities toward to not only the global leadership in sustainable water
use, the industry leadership in packaging, energy and climate protection as well.
 Profit: Maximize long-term return to shareowners while being mindful of our overall
responsibilities.
 Productivity: Be a highly effective, lean and fast-moving organization; manage people,
time and money for the greatest effectiveness.

The vision 2020 is a great direction for Coca cola’s development in beverage industry. The
company is aware of what they need to do in present and in the future. They concern not only
in their profit or productivity but also in people. This can support them to develop in both
quantity and quality.

2. Mission

Mission is also a vital part to build the image of the brand as well as vision. Mission have to
reveal what an organization wants to be and whom it wants to serve so to develop a good
mission, diverse managers need to participate to find out effectively establishing objectives
and formulation strategies.

Coca Cola need a clear mission before setting up alternative strategies to be formulated and
implemented. Mission will be analyzed based on nine main factors which are customers,
 products, markets, technology, concern for survival growth-profitability, philosophy, self-
concept, concern for public image and employee

No Components Identification Evidence/ Improvement

Yes No
1 Customers X Evidence
2 Products X Evidence
3 Markets X Evidence
4 Technology X Improvement
5 Concern for survival growth, X Improvement
profitability
6 Philosophy X Improvement
7 Self-concept X Evidence
8 Concern for public image X Evidence
9 Concern for employee X Evidence
Current mission: “Our Roadmap starts with our mission, which is enduring. It declares our
purpose as a company and serves as the standard against which we weigh our actions and
decisions.”(http://www.coca-colacompany.com/our-company/mission-vision-values,
21/12/2013)

“Our Roadmap starts with our mission, which is enduring. It declares our purpose as a
company and serves as the standard against which we weigh our actions and decisions.”

 To refresh the world...

 To inspire moments of optimism and happiness...
 To create value and make a difference. 5

Above are three main factors that is inspiration for doing with Coke’s mission from current to the
future, at least to 2020 with company’s expectation of serving people best.

Customers: Align for Coca cola’s franchise structure to create unsurpassed values for
customers. For Coca cola, customers are the ones who need to be appreciated and offered the
most quality products and the best of serving from Coca cola. The company serves the diversity
of customers including their agencies, distributors and all the Coca cola users in a large scale.

5
Coca-cola Company, Vision mission and values, http://www.coca-colacompany.com/our-
company/mission-vision-values, By Coca-cola Company website
Products: Coca cola towards to bring the safety and quality products which ensure about the
natural alcohol levels, colorings and carbon dioxide level…Diversity in kind of drinks is also a
criteria of Coca cola products. There are many kinds such as Coca-Cola Light (or Diet Coke),
Coca-Cola Cherry... However, coca and cola is the main favor in drinks. Its major products are
Coca cola soft drinks. Other kind of Coca cola products such as Diet Coke or Cherry…counts
less in market.

Market: Expand the market of Coca cola, gain the aimed point of sales. Coca cola expand their
consumption investment. They increase to participate and serve in local, provide more outlets
and to many specific shoppers. They also focus on selling and merchandising. The company has
competition with many beverage companies in the market. Pepsi Company is the most important
competitor because of large market share in beverage industry.

Public image: Mission of Coca cola is not only a leader in offering the best drinks, but also a
global leader in environment protection, in packaging and producing and disposing system.

Philosophy: Coca-Cola Enterprises provides products and services meeting the beverage and
business needs of thousands of retail customers. Opening dialogue and ongoing relationships,
Coca cola work to build mutual understanding and trust to pursuit the goals. Customer
relationships are central to Coca cola’s effort and philosophy. Coca cola has a slogan:
“Anywhere, anyone, anytime, always Coca cola”. However, this should be seen directly on the
mission because it is the inspiration to cheer people use Coca cola.

Technology: In the mission, there has not been this segment yet. The company displays their
direction of technology in the vision report as the purpose needed to achieve such as using the
advanced and modern technology which contributes to increase the productivity. Coca cola
produces the first-ever recyclable plastic bottle made from plants. In 2012, Coca cola managed
to recycle 371M pounds of recovered aluminum and PET plastic beverage containers.6 This is a
very important element which should be considered in company’s mission.

6
Coca-cola Company, Infographic: our 2020 environmental goals, http://www.coca-
colacompany.com/plantbottle-technology/, By Coca-cola Journey.
Self-concept that Coca cola is the firm which refreshes the world with the delicious and fresh
drinks, inspires the people of the Coca cola’s passion, brings people on over the world the
moments and feelings of optimism and happiness, creates the difference from other beverage in
order that customers can remember and appreciate Coca cola’s values.

Concerns for employees: increasing people’s system knowledge and cross-system movement,
inspiring employees to be passionate, recruiting, developing and advancing women, making
better conditions for all employees to devote their creative and qualification for great drinks.

Concerns for growth, profit, survival: This element is not also demanded in the mission but
generally the company displays what to do in a detail report. Coca cola boosts investment in
sales and market execution, operate the lowest cost manufacturing and logistics in every market
while maintain the quality standards; also use the size and expertise for creating the economic
scale.

The Coca cola mission has huge inspiration which spreads company’s expectation to their
employers as well as customers. Besides, Coca Cola mission statements also have some essential
characteristics such as broad in scope, less than 250 words in length, inspiring, identify the utility
of the firm’s product, enduring and include most of nine components discussed above

However, there are some important components that should be considered and put in the mission
such as technology, philosophy and its concern for survival growth and profitability. The mission
needs to be more detail, which would show the customers and employers know what Coca
Cola’s aim, targets and big picture about it in future

III- External environment factors- PESTEL

While the internal environment of an organization is factors inside its firm and affect the
organization’s performance as well as can control, the external environment factors are
something outside of the boundaries of the company which can’t be controlled or forced to
change. To be success, any company has to analyze both internal and external environment
factors to have to most appropriated strategies forward the economy. By analyzing the
internal environment, company will find out its Strengths and Weakness to change in a
 suitable way, while analyzing external environment will help the company figure out its
Opportunities and Threats in the particular market that they are investing in.

Coca Cola is a well-known multinational company, they might know their Strength and
Weakness clearly, but to have a good strategies forward Vietnam market, Coca Cola
Company needs to analyze its Opportunities and Threats by PESTEL analysis. PESTEL
analysis is a method focusing in the external factors of the business and the environment.
PESTEL stands for Political, Economic, Sociological, Technological, Legal, and
Environmental. All of those components will affect the company in a positive or negative
way is up to a good analysis and strategy forward it.

Political Analysis

As we know, the 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 reported losses in continuous
operation for 20 years in Vietnam.

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 Vietnam proves for their
losses to dodge the government policy of tax. It also makes a bad reputation for Coca cola in
Vietnam.

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.7 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 could impact on the Company’s products, image and reputation as well.

Social welfare policies

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 many regional and local
foundations, organized charity programs in local. Some reality programs such as “Vietnam
pushcarts program” – helping economically disadvantaged women build sustainable livelihoods.
In the first season, 2,000 women in Ho Chi Minh City and Hanoi are being given custom-built
pushcarts to sell a selection of ice-cold Coca-Cola beverages. This program provides all the
women with an initial quantity of discounted product and sales training to help get their new
microbusinesses. “Supporting education and youth development” with projects and scholarships

To support students in orienting and developing career in the future, The Coca - Cola Vietnam
organized the "Open Entrance To Success" for final year students at universities of HCMC.
These educational supporting activities the company held typically such as Success Skills
Workshop – to train soft skills for over 6,000 students throughout the country in the 2008 - 2010,
to help students complete the interview skills and workplace integration quickly. In addition, the
7
Mar 14, 2007, Government regulations, http://www.wikinvest.com/stock/Coca-
Cola_Bottling_Co._Consolidated_(COKE)/Government_Regulation , By Wikinvest.
workshop program in Business Skills (2010) and Class Selling Skills Training ( 2013 ) in HCMC
and Hanoi also has support for nearly 350 small business about management capacity, sales and
expand business operations in the future. In addition, Coca - Cola Vietnam has cooperated with
The newspapers of Youth to provide Nguyen Thai Binh scholarship for students who have good
academic achievements with a total value of 300 million.

The political risks are impact to change in its business. The complicated as political conflicts,
disagreements cabinet and sluggish affect the development and sales. Typically, the recent global
credit crisis and its effects on credit and equity market apparel conditions affect the Coke’s
financial performance adversely and Coca cola Vietnam as well. This reduces the consumption
of soft drinks from the stores and outlets. Departments and other sectors of society focus on
solving crisis, revive the economy. However, it takes time and efforts. Fortunately, Vietnam has
a steady political condition. However, some affairs such as economic crisis, East Sea conflicts
also affect to Coca cola Vietnam, but not too much.

Overall, the opportunities for Coca Cola are Social welfare policies and the threats are Tax
policy, government regulations and political risks

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.

Economic analysis

Economics has a huge impact to not only the business of Coca cola company but also any other
companies. The main factors include interest rates, inflation rates, tax rates or consumption
patterns ... These agents can both benefit, even difficult for company's operations.

Inflation rate affects the business, especially the prices of products. I use the chart to analyze for
inflation’s impact to the products’ prices of Coke.
 Coca-cola inflation adjusted price from 1997 to end of May - 20138

The blue line is Coke’s nominal price and the red is the inflation adjusted price. We can see the
inflation make the price increase. However, this adjusting is not equal for anytime. It is up to the
economic situation and the state’s current inflation rate forcing price of products to increase
dramatically or slightly.

Above is the total of inflation of Coca cola. In Vietnam, this condition might be worse because
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 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.

8
Coca-cola inflation adjusted chart KO, http://www.aboutinflation.com/Dow-Jones-vs-Inflation/coca-
cola-inflation-adjusted-chart-ko, By About Inflation.
Income Tax

The Company adopted the provisions of this accounting guidance and changed the accounting
policy effective January 1, 2007. As a result, they recorded an approximate $65 million increase
in accrued income taxes in consolidated balance sheet for unrecognized tax benefits. The Coca
cola’s annual tax rate is based on income, statutory tax rates and tax planning opportunities
available in the various jurisdictions in areas they operate. The Company's effective tax rate is
expected to be approximately 23.0 percent to 23.5 percent in 2010. This estimated tax rate does
not reflect the impact of any unusual or special items that may affect our tax rate in 2010.

Consumption patterns

The economy in Vietnam is growing rapidly. It is advantages for the company's operations.
Announced $ 300 million investment in Vietnam in the next 3 years, president of Coca-Cola,
Muhtar Kent said that this was still an attractive market as consumption of new people with 20%
of the average world.9

Monthly Average Consumption Expenditure per Capita at current Prices in Vietnam

Totally, 3.1% of all beverages consumed around the world are Coca-Cola products. Of the 55
billion servings of all kinds of beverages drunk each day (other than water), 1.7 billion are
Coca-Cola trademarked/licensed drinks.10 That proves the average person consuming at least
one Coca-Cola product every four days, with more than 3 percent of all beverages that are
consumed coming from the Coca-Cola firm. Here is a look at the average per capita consumption
by country of Coca-Cola drinks, including the company's bottled waters, sports drinks and
various sodas, according to the company based on a serving size of 8 ounces. Number of
servings per year: India: 12, China: 38, Kenya: 40, Russia: 73, South Korea: 84, France: 149,
Japan: 179, Germany: 190, Great Britain: 210, Brazil: 230, South Africa: 247, Canada: 259,
United States: 403, Mexico: 72811. These shows the Western countries are the big market and
Mexico is the country drinks Coke most.

9
VNexpress, Đầu tư vào Việt Nam vẫn rất hấp dẫn, http://www.thanhlapcongtytrongoi.vn/chu-tich-coca-cola-dau-
tu-vao-viet-nam-van-rat-hap-dan/. By VNexpress.
10
Coca-cola 2011 SEC filings, Jun. 9, 2011, 15 facts about coca-cola that will blow your mind,
http://www.businessinsider.com/facts-about-coca-cola-2011-6?op=1#ixzz2o42ARmARR , By Business Insider.
11
Jul. 7, 2012, Which countries drinks most coca-cola drinks?, http://bigstory.ap.org/article/which-countries-drink-
most-coca-cola-drinks, By Associated Press.
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. 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 consumption in Vietnam market.

The opportunities: consumption patterns

The threats: Inflation rate, income tax

During 20 years operating in Vietnam, Coca cola has many scandals about the taxation which get
their reputation down. The economic contribution of Coca cola Vietnam is not as much as its
leaders say. Besides, the inflation is also a threat for Coca cola Vietnam because its level and
changing in Vietnam is very complicated.

Social, demographic analysis

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. It becomes the needs which manufacturers must
notice. Some other factors are demography, income distribution, people habits, social class... In
Vietnam, young people more and more prefer to use soft drinks nowadays. Vietnam market of
drinking Coca cola is catching up with the world.

Demography is an important factor. In the international market, the population of the country
affects to the consumption for beverage. Over the next 12 years, changing demographics will
drive strong growth in the beverage industry

800 900 1

million million billion

Growth in worldwide Growth in Growth in middle-

population urbanization class population

Above are the fast-growing nonalcoholic ready-to-drink (NARTD) beverage industries. We

can see in urban, the growth of NARTD is very higher than average of the world and in the
middle-class population, the growth is dramatically rising. It is expected to continue growing
more strongly for the next 12 years for retail sales. It is believed the industry will add more than
60 billion unit cases and expand retail sales by nearly $600 billion by 2020. This growth will
increase retail sales to more than $1 trillion by 2020. This projected growth is being fueled by an
unprecedented increase in middle-class consumers and fast-growing urban societies, despite
today’s economic climate. These trends indicate that there will be more people with more
income paying ability who potentially will tap into refreshment and convenience from Coke.
Besides, the general poverty rate and food poverty rate are decreasing, which also a positive sign
for Coca Cola

Income distribution is a quite impact on business of Coke. 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. Consequently, sales of Coke
generally higher in urban areas than rural, in developed countries higher than developing and
underdeveloped countries.

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 trend to drink Coke more than the older
or the kids.

Different shopping behavior exits across categories

Source: Statistical Yearbook 2011

Increase in middle-class consumers. The Coca cola produces various kinds of products with
the suitable price for almost people in every social class. Sales of Coke concentrate on the
middle class most. However, with the suitable price, Coke supplies a suitable choice for
consumers who have ability to pay and adapt to their hobby or habits of beverage, except for
people who are too poor to think about a bottle of soft drink. The Coca cola also set up
foundations or charity program to bring fresh Coke to these people through charity programs

The rise in Vietnam middle class and its consumer segment and spending in 2011

Source: Statistical Yearbook 2011

The opportunities: Demography, Income distribution, buying habits and the middle class

The threats: Demography, income distribution (the less crowded the places are, the less products
company can sale.)
This factor generally is similar to the rest of the world about the distribution, habit,
hobby….Therefore, in Vietnam, if the company points to the opportunities and solve the
limitation, coca cola Vietnam will develop with correct direction.

Technological analysis

Technological techniques are valued. This creates opportunities for new products and advanced
products. High and modern technology will increase the company’s productivity and produces
best drinks for the market. Technology includes science research, efforts for advanced
technology, new discoveries or products, internet….

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 is required
new investments in technology, innovation, a significant amount of collaboration throughout the
Coca-Cola system. Acceleration of innovations around water, packaging, equipment, energy and
agricultural resources will enable Coca cola’s system to meet the new market demands. In 2008,
The Coca cola took many steps as a system to minimize our environmental impact. We also
introduced and started for operate a new global system sustainability targets for water
conservation and climate protection.

Vietnam has one staff eager to learn to receive advances of science and technology in production
and business where should be a potential place for Coca cola activities. To prove this, Coca-Cola
Vietnam has opened a new production line in Da Nang. The investment in infrastructure has
created a lasting positive impact through the cooperation and support of local suppliers in many
different industries such as packaging industry. In addition, to expanding activities in Da Nang,
Coca-Cola Vietnam continues to conduct investment projects in 2 factories in Hanoi and Ho Chi
Minh City from 2013 to 2015, and the company investors also focused on local projects with the
goal of developing new sustainable communities.

New discoveries, products to reduce the impact of our packaging, maximize the use of
renewable, reusable and recyclable resources, and recover the equivalent of 100% of our
packaging, the Coca cola produces recycled PET (polyethylene terephthalate) plastic with the
high tech

Internet contributes for operations, which 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 to use this technology so, to sell effectively its products.

However, the internet is a 2-edged knife. It may have brought the fame, and also easy to spread
quickly notoriety. Typically, Coca cola Vietnam is ostracized because of suspicion of tax evasion
during 20 years of operation in Vietnam. This goes the notoriety further thanks to the spread of
the Internet. Even on social network, there is a page of Association of boycott Coca cola
Vietnam. This shows that, in a country like Vietnam, information is very sensitive. Once
communication keep an eye, with the great help of the internet, the scandal will surely happen.

The opportunities: Researches, high technology, new discoveries/ products, internet

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
carelessly. The important is how to use it.

Environmental analysis

This is the concerning issues in the current. These factors include conditions of weather, seasons
and other natural ones. Therefore, it is relevant to products manufacturing, packaging,
disposing….. These processes affect directly to outside environment in every countries.

Waste disposal: Waste of the Coca cola is all cover, can, bottle that are metal, plastic…
Reducing landfill is a top priority. 99.5 per cent of the waste produced at our factories is now
recycled, with just 0.5 per cent going to landfill. We've also joined forces with the Waste &
Resources Action Program (WRAP) to create nationwide Recycle Zones, making it easier for
people to recycle on the go - while our online Cyclometer tool is designed to help demonstrate
the positive impact that everyday recycling can have

Waste management including the management of waste from production, post-use products,
bottles, cans ... To manage intelligently needs a smart system consists of modern equipment, a
team of professional engineers to classify and recycle waste. With the reusable is not only a
saving, but also environmental protection. Besides these most delicious products of coca cola, it
is also required a system to handle wastes from the process of making it.

Energy consumption

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 fuels for plastics.12

Recycling aims to the most efficient use of limited natural resources available, while at the same
time aims to reduce the solid waste produced, which is a by-product of all industrial processes.
To achieve this objective, the Company collaborates with licensed recycling organizations and
governmental institutions. In 2008, the total quantity of solid waste created in the bottling
factories was 22,677 tons. This represents an increase of 25% compared to the previous year,
contrary to the reduction of 2% we aimed for. Most part of this increase, is attributed to
restructurings of factories and renewal of equipment for reused glass bottles , and was balanced
by the increase of the materials recycled, as described below.13

Solid waste disposal and recycling from 2006 to 200814

In a country like Vietnam, Coca cola must notice the situation, the law and the viewpoint of
Vietnamese. In certain issues, especially in food and drinks, they are quite difficult to choose the
good brands. Therefore, unsafe environment and product are threats for Coca cola Vietnam for
operation.

Legal analysis
These factors include discrimination law, competitive law, environmental protection laws,
product and health safety…The Coca cola business is subjected to many laws in different
countries they have entry.

12
Coca-cola Company, What is coca-cola doing to reduce energy use waste packaging?, http://www.coca-
cola.co.uk/faq/environment/what-is-coca-cola-doing-to-reduce-energy-use-waste-packaging.html , By Coca-cola
Company UK website.
13
Coca-cola Company, Raw materials and solid wastes, http://en.coca-
colahellenic.gr/Towardssustainabilit/environment2/Packagingandrecycl/ , By Coca-cola Tria Epsilon.
14
Coca-cola Company, Raw materials and solid wastes, http://en.coca-
colahellenic.gr/Towardssustainabilit/environment2/Packagingandrecycl/ , By Coca-cola Tria Epsilon.
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 role
around the advertisements, unhealthy competition or limit of competition… However, it more
perfect day by day. Government has built a system of legal to solve these problems. Equally
exacting was the need to adhere to Coke's design guidelines – after all, this is one of the best
protected brands in the world. Meeting these challenges, The Coca cola designed and printed a
36 page perfect-bound booklet which succeeds in engaging the reader; bringing the text to life
through a consistent layout and bold use of vibrant color throughout.

Environmental protection laws are a mandatory rule for manufacturing enterprises, 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. Especially, it is very important in a crowded country like
Vietnam. 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 prevention (TCCSMS).
TCCSMS defines the systematic approach to managing 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 and establishes the Safety Board of the
Company as a body authorized to solve and cares about health and working conditions of
employees.

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 applicable regulations
and standards.

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.
There are many scandals about product safety not only domestic company but also the foreign
ones. Coca cola also has this. In details, 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.15 This is unreasonable.

All above is to link to the success of The Company 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 brings the best products and services, especially in a sensitive market like Vietnam.

The opportunities: Competitive laws, Product safety

The threats: Environmental protection laws, health and safety concern

The law system in Vietnam may not be completed like other developed country. This may be a
chance for some company. However, this system is more and more perfect. Moreover, the
citizen, government and the press’s concern is the help to treat the violation. Therefore, this
factor is both opportunity and threat.

IV- EFE Matrix

No. Factors Weight Rating Evidence for rating Weighted

score
Opportunities
1 Consumption 0.9 4 Increasing purchasing 0.36
Expenditure Increase ability among customers
2 Increase in middle- 0.8 4 Increasing number of 0.32
class consumers customers in Coca Cola’s
strategic segment
3 High Technology in 0.7 3 0.21
the system of
producing and
packaging
15
Quang Minh, Rùng mình sản phẩm của Coca cola bị nấm mốc, November 12, 2013,
http://www.kinhtenongthon.com.vn/Story/bandoc/2013/11/44447.html By countryside economy.
4 Wide-spreading 0.6 3 0.18
internet and gadgets
5 Political stability 0.9 4 Widen market through 0.36
most of the provinces in
Vietnam
6 Widen market 0.8 4 Use the widen market 0.32
effectively to distribute
products
7 Vietnamese labor is 0.9 4 Use Vietnamese labor to 0.36
cheap in large scale reduce manufacturing
cost
8 Changing taste among 0.7 3 0.21
youth
9 Health conscious 0.9 3 0.27
consumers
Threats
1 Tax policy for foreign 0.8 3 0.24
companies
2 Inflation rate 0.7 3 0.21
3 Economic crisis 0.8 3 0.24
4 Intense competition 0.8 4 Effective Marketing 0.32
such as Pepsi strategies forward
5 Low-skilled labor 0.7 4 High skill training 0.28
6 Increasing demand for 0.7 4 Develop more non- 0.28
non-carbonated carbonated products
products e.g juices
7 Increasing price of 0.8 3
raw material such as
sugar and metals
8 Many smaller players 0.6 3
are furious
competitors
V- Used Strategies

1. Price strategy toward integration

 During the long time, the price of Coke always pursues 3A and 3P aimed at achieving
the main market in Viet Nam. In the 3P strategy, it consists of Price to value, Pervasiveness and
Preference. Firstly, Price to value means that customers not only buy the Coke with the suitable
price but also gain the real value from it. Secondly, throughout the Pervasiveness, Coke makes
sure that the customers can find and buy it every time at any places. They want to supply and
deliver Coke in every store, supermarkets. Finally, they want customers not only to accept and
enjoy coke but also choose Coke as a first choice. Moreover, in the 3A strategy, it is illustrated
by affordability, availability and acceptability. The company want to sell the coke with a suitable
price which everyone can afford buying it. Besides, Coke company also deliveries their products
in everywhere for the customer to satisfy their demand. In particular, the company enjoys the
feeling which everyone can have a wonderful drink, means that the customer can be happy with
each Coke product. In Vietnam, Coca- cola Company have a creative mixture in the marketing
mix. Furthermore, Coca- cola Company has still formed the strategies by many ways. It surveys
the customer attitude and demand, so the price strategy based on the customers psychology. For
example, the housewives also prefer to buy the cheaper products, so they produce the big PET is
more economic than others. Coke Company has the price according to the price of counter
partner, especially Pepsi Company. Although Coke goes behind in the beverage field in the
world, it is a pioneer in the Vietnam market. And up to now, coca- cola has much success in Viet
Nam.

 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
products and customers. They would exchange information about each product by
themself, creating an effect to clients. Vertical integration which company select is
bringing the price to the customer directly, the product is reduced, everything based on
customer review and respond to the essential needs of customers and then make them
feel good about their choice.

2. Marketing and local strategy in Viet Nam

Part of the success of any company can most likely be attributed to its marketing strategies.
Coca-Cola has successful marketing techniques over the time, but has also scratched a few
marketing techniques. Customers respond to marketing techniques and Coca-Cola has learned to
recognize what they should work or and not work. This has no doubt partially contributed to the
success of Coca-Cola.

Coca cola logo is one of the top favorite logo because of its classical nature both in terms of
design and the taste of the product. International marketing: the way companies get out the world
and targeting audiences who may not be local to the United States. When marketing outside of
the US, your company needs to think outside of the box. There’s a difference between marketing
nationally and marketing to a specific country or region, and Coca-Cola’s about to show some of
the reasons for their success. Coca - Cola will add $ 300 million poured into Vietnam in the
period 2013-2015, bringing the total investment to $ 500 million commitment to improve the
investment performance of the plant in Vietnam, found brand and market development , as well
as human resource development and reseller support. With new investments of Coca – Cola, the
market once again shows the comparison between the two embankments giant Coke - Pepsi.
Because, previously, Pepsi also announced formation of a strategic alliance with Suntory (Japan)
in Vietnam, through the agreement, Suntory will hold 51 % stake in Vietnam Pepsi and Pepsi
hold 49 % remaining stake in the project. Previously, Pepsi plant opened with a total investment
of $ 73 million in VSIP Bac Ninh. The move this capital increase of Coca - Cola is causing much
buzz in the context of ongoing Coca-Cola reported losses in Vietnam market.

According to the HCM City Department of Taxation, the losses of Coca - Cola stood at around
100 billion / year in the past 10 years, nearly five third turnovers. According to the specialized
magazine Digest Beverage, the market share of the carbonated beverage Coca - Cola is 52 % of
PepsiCo . Although Pepsi lead on the global market, but in Vietnam market, due to later extend
the system to the distribution of Coca - Cola showed weaker . After it is slow in supermarkets
and restaurants to hold the position, Coca- Cola has developed distribution channels tactically
"guerrilla" hit retail around alleys and side streets, constant encouragement sales discounts,
dealer incentives... For fast product supply strategies in the market , especially transport costs ,
price competition , Coca - Cola was quick to invest in the construction of the plant is the key area
of HCMC , Da Nang , Ha Noi .
Coca Cola has attempted to enhance production capacity and distribution by adding modern
production lines, providing new refrigeration equipment for consumers and support local
businesses increase sales product which product extensions focus on areas such as leisure and
sports, fast food restaurants and chain restaurants... The location has good impact and fastest to
promote the brand new product. According to the Association of Beer - Alcohol and Beverages
Vietnam , total 2010 sales of PepsiCo and Coca - Cola account for over 80% of the beverage
market in Vietnam, with roughly equal market share . Up to the present time , Coca - Cola
Vietnam has achieved over 25 % growth compared to the plan . However, to date, Pepsi has a
better advantage than proactive Coca - Cola in developing distributed system

Coca - Cola has penetrated the international market that is very unique, they invest into the
Vietnamese market, increasing investment in factories and services, then they develop market
and product quickly. Investment in human resources is to create good quality products, then
distribute the agents have created good effects to customers about business.

VI- SWOT

STRENGHTS

1) The best global brand in the world in terms of value.  The Coca Cola Company is the
most valued ($77,839 billion) brand in the world16.
2) World’s largest market share in beverage. Coca Cola holds the largest beverage
market share in the world (about 40%).17
3) Strong marketing and advertising. Coca Cola’ advertising expenses accounted for
more than $3 billion in 2012 and increased firm’s sales and brand recognition.
4) Suitable price with almost social class. Vietnamese buy Coke regularly as their habits.
Moreover, Coke is bought with the suitable price in Vietnamese Market, just 7 thousand
dong for a small 500ml Coke.

16
Solitary, March 3rd, Coca Cola essay, http://www.studymode.com/essays/Chibinh-
1541347.html
17
Solitary, March 3rd, Coca Cola essay, http://www.studymode.com/essays/Chibinh-
1541347.html
 5) Customer loyalty, especially it enjoys having one of the most loyal consumer groups. It
has also many fanpages in social network such as facebook, twitter…
6) 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 lowest
price available from them.
7) Corporate Social Responsibility (CSR). Coca Cola is increasingly focusing on CSR
programs, such as recycling/packaging, energy conservation/climate change, active
healthy living, water stewardship and many others, which boosts company’s social image
and result in competitive advantage over competitors. In Viet Nam, it conducts a lot of
social programs for children with many gifts for Tet holiday…

Weaknesses

1) Significantly focus on carbonated drinks. The business is still focusing on selling

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.
2) Undiversified product portfolio. Unlike most company’s competitors, Coca Cola is 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.
3) High debt level due to acquisitions. Nearly $8 billion of debt18 acquired from CCE’s
acquisition significantly increased Coca Cola's debt level, interest rates and borrowing
costs.
4) 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 to
higher water and other raw material costs.

18
Diego Fastal, 08-Oct-2009, Coca cola Company,
http://www.standardandpoors.com/ratings/articles/en/us/?
assetID=1245184788910
OPPORTUNITIES

1) 13rd population country in the world. It is big market for Coca cola to take advantages
from the local labors and the customers.
2) 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 is required new investments in technology, innovation, a significant
amount of collaboration throughout the Coca-Cola system.
3) Growing beverages consumption in emerging markets. Consumption of soft drinks is
still significantly growing in emerging markets, where Coca Cola could increase and
maintain its beverages market share. In Viet Nam, a majority of youth really like Coke
because of its taste and the suitable price.

THREATS

1) Changes in consumer tastes. Consumers in Vietnam become more healthy concern and

reduce their consumption of carbonated drinks that have large amounts of sugar, calories
and fat. This is the most serious threat as Coca Cola is mainly serving carbonated drinks.
2) Waste disposal: Waste of the Coca cola is all cover, can, bottle that are metal, plastic…
Reducing landfill is a top priority. 99.5 per cent of the waste produced at our factories is
now recycled, with just 0.5 per cent going to landfill.
3) Legal requirements to disclose negative information on product labels. Some Coca
Cola’s carbonated drinks have adverse health consequences. There many negative
information about Coke qualification. Legal requirements to disclose negative
information on product labels. Some Coca Cola’s carbonated drinks have adverse health
consequences. There many negative information about Coke qualification. 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. This regulation cares about the youth’s health, nutrition. This led to obesity in
business of Coke Company in that period
4) Competition from PepsiCo. PepsiCo is fiercely competing with Coca Cola over market
share. Although Coke goes behind in the beverage field in the world, it is a pioneer in the
Vietnam market. And up to now, coca- cola has so much success in Viet Nam.
5) Negative publicity. The firm is often criticized for high water consumption in water
scarce regions and using harmful ingredients to produce its drink.

SO STRATEGIES

S1. The best global brand in the world in terms of value

($77,839 billion)
S2. World’s largest market share in beverage
Use Strengths to take S3. Strong marketing and advertising
advantages of Opportunities S4. Most extensive beverage distribution channel
S5. Customer loyalty
S6. Bargaining power over suppliers

O1. 13rd populated country. S1S6O1

O2: High technology Expand many retail channel through store or shop. (Market
O3. Bottled water penetration)
consumption growth Build the Coca cola retail outlets (Forward Integration)
S2S3O3
Provide the products with high qualification (product
development)
S5S6O1O3:
Develop new functional products which have potential growth
(related diversification)
Enhance new beverage following the healthy trendy (unrelated
diversification)
WO STRATEGIES

W1. Significant focus on carbonated drinks

Improve weaknesses by W2. Undiversified product portfolio
taking advantages of W3. High debt level due to acquisitions
Opportunities W4. Decrease gross profit and net profit margins.

O1. 13th populated country W1W2O1O2:

O2. High technology Diversified product portfolio, besides carbonated drinks to care
O3.Growing beverages the healthy consumers with amazing advertising programs.
consumption. (related diversification).
Products made from healthy materials (related diversification)
W3W4O1:
Bargaining with the suppliers with suitable price (backward
integration)

ST STRATEGIES

S1. The best global brand in the world in terms of value

($77,839 billion)
Use the Strengths to S2. World’s largest market share in beverage
reduce/avoid the impact of S3. Strong marketing and advertising
Threats S4. Most extensive beverage distribution channel
S5. Customer loyalty
S6. Bargaining power over suppliers

T1. Changes in consumer S3S5 T1:

preferences Provide many thank you programs or build up the customer
T2. Waste disposal service well. (unrelated diversification)
T3. Legal requirements to Create a fan page in social network (forward integration)
disclose negative information S4S6T5:
on product labels Take advantages of bargaining suppliers to enhance products
T4. Competition from PepsiCo for folio. (related diversification)
T5. Negative publicity. Buy with the suitable price to compete with Pepsi Co (market
development)

WT STRATEGIES

W1. Significantly focus on carbonated drinks

Reduce weaknesses and avoid W2. Undiversified product portfolio
threat’s impacts W3. High debt level due to acquisitions
W4. Decrease gross profit and net profit margins.

T1. Changes in consumer W1W2T2T5

preferences - Diversified with a lot of kinds products (product
T2. Waste disposal development)
T3. Legal requirements to - Protect the environment, especially the water resources.
disclose negative information
on product labels
T4. Competition from PepsiCo
T5. Negative publicity.

An appropriate Strategy

WO Strategy W1W2O1O2:

W1. Significantly focus on carbonated drinks

W2. Undiversified product portfolio

O1. 13th populated country

O2. High technology

Coke Company offers many advantages for producing, packaging. In order to continually
grow the business, the Company needs to be increasingly efficient in use of resources. This is
required new investments in technology, innovation, a significant amount of collaboration
throughout the Coca-Cola system. With the high technology available, Coca-Cola uses subtle yet
effective online advertising to make customers in Viet Nam enjoy and desire to buy its products.
Targeted advertisements on websites mean that Coca-Cola has greater control over who sees
their ads and when they see them. For instance, when you're perusing the online menu of a local
eatery, Coke ads may appear, making you associate that restaurant with a tall, icy glass. Or,
when you're researching local beaches, you may see an ad for Coca-Cola products, thereby
associating heat with the refreshment of Coke. It is really suitable for Coke Company because
Coca-Cola plans to make a system investment of $300 million in Vietnam over the next three
years to build new infrastructure, create jobs, develop strong partnerships and build its brands in
the country. With this additional investment, which will begin in 2013, Coca-Cola and its
bottling partners’ total investment in Vietnam will shoot up to $500 million between 2010 and
2015. With this investment, Coke should invest in the online advertising for the effective brand
in Viet Nam. Besides, Coke needs to diversify product portfolio, besides carbonated drinks, to
care the healthy consumers. Now, the Vietnamese concern more about their health, so it is high
time to think about the healthy products to meet the Vietnamese market where has many people
with their loyalty to Coke.

No Alternative Strategies Suitability Feasibility Acceptabilit Ave Explanation

y score
1 Expand many retail 4 4 4 4.00 Reduce the
channel through store or cost as well
shop. as price of
Build the Coca cola retail products
outlets
2 Provide the new products 4 3 4 3,67
 with high qualification
3 Develop new functional 4 3 4 3.67
products which have
potential growth.
Enhance new beverage
following the healthy
trendy
4 Diversified product 4 3 4 3.67
portfolio, besides
carbonated drinks to care
the healthy consumers
with amazing advertising
programs.
Products made from
healthy materials
5 Bargaining with the 4 3 3 3,33
suppliers with suitable
price
6 Provide many thank you 4 4 4 4.00 Great
programs or build up the number of
customer service well. people using
Create a fan page in internet to be
social network advertised,
which is
cheaper ad
cost
7 Take advantages of 4 3 3 3.33
bargaining suppliers to
enhance products for
folio.
Buy with the suitable
price to compete with
Pepsi Co
8 Diversified with a lot of 4 4 4 4.00 Meet
kinds products diversity of
needs, which
increases the
competitive
ability
9 Protect the environment, 3 2 4 3.00 High cost
especially the water
resources

Appropriate strategies

No Alternative Strategles Suitability Feasibility Acceptability Ave Explanation

score
1 Expand many retail 4 4 4 4.00 Save cost of
channel through store or delivering
shop. and reduce
Build the Coca cola retail the price of
outlets products
6 Provide many thank you 4 4 4 4.00 Great
programs or build up the number of
customer service well. people using
Create a fan page in internet to be
social network advertised,
which is
cheaper ad
cost
8 Diversified with a lot of 4 4 4 4.00 Meet
kinds products diversity of
needs, which
increases the
competitive
ability
Conclusion and Recommendation

The strategy in Coca cola Company used effectively is marketing and advertising strategy, so I
strongly believe in the future the company continuously conducts such more effective strategy.
However, it knows how to control the negative publicity through the social network. Moreover,
although development is always higher, it makes a big concern in terms of environment and
social activities.

I am encouraged by the company’s global reach, strong brand power, expanding presence
outside the U.S. and its solid cash position. Moreover, the company’s acquisition of Coca-Cola
Enterprises bottling business and its productivity initiatives are expected to result in significant
cost savings. In particular, in the Viet Nam market, Coke Company plays an important role in the
beverage field. The customer really love their advertisings which is meaningful and colorful, it
also attracts with the lively music. In the future, I think Coca cola Company should create much
more advertisings to meet the Vietnamese customer demand. However, Coca-Cola needs to ramp
up its advertising spending to match arch competitor PepsiCo Inc.

REFERENCE