Table of Contents

Excutive Summary....................................................................................................................................2
I- Introduction...........................................................................................................................................3
II- Company background.........................................................................................................................3
2.1 Vision statement.................................................................................................................................4
2.2 Mission statement..............................................................................................................................4
2.3 Market Analysis.................................................................................................................................4
III – Macroanalysis....................................................................................................................................4
3.1 Political factor....................................................................................................................................4
3.2 Economic factors...............................................................................................................................6
3.4 Technological Factor........................................................................................................................8
3.5 Population Factor..............................................................................................................................9
IV- Microeconomics................................................................................................................................10
4.1 The company....................................................................................................................................10
4.2 Suppliers..........................................................................................................................................11
4.3 Marketing Intermediaries................................................................................................................11
4.4 Competitors.....................................................................................................................................12
4.5 Customer.........................................................................................................................................13
4.6 Publics.............................................................................................................................................14
V- Competitive Analysis..........................................................................................................................14
VI- SWOT Analysis.................................................................................................................................15
VII- Strategic Priorities...........................................................................................................................16
7.1 TOWs matrix....................................................................................................................................16
7.2 Recommendations............................................................................................................................16
VIII- Conclusion......................................................................................................................................17
References................................................................................................................................................18
 Excutive Summary

PepsiCo Inc., headquartered in Purchase, New York, is an American multinational food and
beverage corporation. Cereal snacks, beverages, and other products are manufactured, marketed,
and distributed by the company.
The goal of this report is to gain a better understanding of PepsiCo's marketing environment. The
report's first section contains a macro analysis that was carried out to gain a better understanding
of the macro environment and the forces that affect PepsiCo's overall process. Then, internal
environmental analysis was provided under Kotler's microenvironment framework as a follow-
up to the PEST and Population analyses.
The competitive analysis shows that PepsiCo operates in a highly competitive landscape in
which the brand's focus competitor such as Coca Cola is positioned close proximity to the brand
The information gathered during the assessment was then used to conduct a SWOT analysis. The
results of the SWOT analysis and infomation in each part were used to create a general overview
of PepsiCo.

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I- Introduction
Today, as human needs rise in tandem with the global economy, companies and business
organizations are attempting to develop a series of products and services that outperform
competitors, dominate the market, and maximize profits by providing the best possible service to
customers. However, in order to do so, the company must devise the most appropriate and
optimal strategies for their business at any given time. In fact, many successful companies have
emerged in the market today as a result of effective marketing strategies and market penetration.
PepsiCo is a leader in the beverage and food industries. This marketing audit will be undertaken
to investigate and analyze PepsiCo's external and internal environments in order to assist
businesses gain a better understanding of their marketing performance.
The following marketing analysis of the Pepsico beverage brand in the Vietnamese beverage
market will be conducted. Theories, models, and frameworks will be used to provide accurate
insight into the various factors that influence or drive Pepsico's operations in the report.

II- Company background

Pepsi Corporation was founded in 1898 and is headquartered in Purchase, New York. Pepsi and
Frito-Lay Corporation merged in 1965 to form PepsiCo Corporation (About the Company, n.d.).
According to Statista (2021), PepsiCo is one of the largest food and beverage companies in the
world, with net sales was nearly $67 billion in 2019. In nearly 200 countries, PepsiCo has a well-
developed distribution and reseller sales network (PepsiCo's net revenue worldwide, 2021).

Figure 1: PepsiCo's net revenue worldwide from 2007 to 2020 (in billion U.S. dollars)
(Source: Statista, 2021)

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Pepsi Company first entered the Vietnamese market in the 1990s, and with its powerful
advantages, Pepsi launched a "big discount promotion" strategy and soft drink brands. Other
small businesses in Vietnam were thrown into disarray almost immediately. Pepsi has crushed
domestic beverage companies in less than a month, thanks to its low price and world-class
reputation.
2.1 Vision statement
The following is Pepsico's vision statement: "At PepsiCo, we strive to achieve long-term
financial success by incorporating sustainability into our business strategy and leaving a positive
social and environmental footprint. It's referred to as achieving performance with a clear goal."
(Developing Vision and Mission: Two Perspectives From Nestlé And Pepsico, 2016)
2.2 Mission statement
With the vision that "To be a leading company in the production of consumer goods, focusing
primarily on convenience foods and soft drinks." PepsiCo's mission statement is centered on
consumers and product attributes. It is “We are always on the lookout for ways to provide
healthy financial returns to our investors, as well as opportunities for growth and economic
benefits to our employees, business partners, and the communities where we live. In all of our
actions, we strive to operate on the principles of honesty, fairness, and integrity.” (Lombardo,
2017).
2.3 Market Analysis
Pepsi Max (low calories), Diet Pepsi, and Pepsi Next (60 percent less sugar) are the three brands
that make up the Pepsi brand (Pepsi, 2014). Pepsi employs a segmentation strategy of one
product and numerous market groups in this fashion. It's worth noting, though, that PepsiCo, the
parent company, has a multi-product and multi-market approach, since it owns 22 brands that
offer a variety of items, including snacks, drinks, water, and the oatmeal circuit. In 2011, f these
22 big brands had yearly retail sales of $1 billion or more (Brand Analysis: Pepsi and The Soft
Drink Industry, 2017). PepsiCo's product structure, on the other hand, has altered. As a result,
soft drinks no longer have the near-total monopolistic position in PepsiCo's goods that they
formerly had. PepsiCo paid $ 14 billion for Quaker Oats Group, one of PepsiCo's key
competitors, at the time. PepsiCo acquired an extra 8% market share in Gatorade beverage
products for athletes right away (Huyen, 2019).
Pepsico is now more popular than ever before. PepsiCo Vietnam has bought back the stakes of
the parties to become the owner of 100% capital after 15 years of operation as a joint venture
partner. The company's capital has grown 20 times since its inception, from 5 million USD to
130,000,000 USD, legal capital 90,000,000 USD, and realized investment capital 85,000,000
USD. In 2002, sales totaled $31,355 dollars (the Marketing environment of PepsiCo Vietnam
Company, 2018). The company's growth rate has exceeded 20%, more than tripling the average
growth rate of the domestic beverage industry. Pepsi became the market leader in Vietnamese
beverage marketing in 2004.

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III – Macroanalysis

3.1 Political factor

Vietnam's laws are gradually improving to create a healthy competition between domestic and
international markets by accumulating and supplementing international laws such as antitrust
laws, intellectual property rights, patents, and so on. Due to the rapid growth of consumer
protection organizations, the position of Vietnamese consumers is steadily improving. PepsiCo
and businesses in general face both opportunities and challenges as a result of the state's
investment support and encouragement policies.
According to WTO (2019), with 16 free trade agreements in place or in the works, Vietnam is
becoming a more active participant in and contributor to the international trading system .
Vietnam has established special relations as a partner, a comprehensive partner, or a strategic
partner, in about 30 different countries, including key partners such as the United States, Russia,
and Japan, the country enjoys international trade stability and convenience in addition to having
a stable institution (TTWTO VCCI - Participating in up to 16 free trade agreements, is Vietnam
too 'obsessed'?, 2019).
• Opportunities:
-With the help of state bank loans, Companies have been able to expand our production scale
across the country.
- PepsiCo easily expand the market.
-To bring their products closer to the public, many companies can use services and advertising
channels.
• Challenges:
-There is a fiece competition from other businesses.
-In the context of increased consumer status, it is necessary to ensure consumer demand for food
safety and to advertise honestly and culturally.
-With the current growth of consumer protection groups, companies will face a challenge
because consumers will have a stronger voice, forcing companies to take greater responsibility
for safety, products, honest, cultured advertising, and so on (Nguyen, 2021)

3.2 Economic factors

The year of 2020 is expected to be a difficult and challenging year for the global economy,
including Vietnam. The world economy is expected to enter its deepest recession in history, with
major economies' growth rates all plummeting as a result of the Covid-19 epidemic's negative

5
impact (Vietnam's economy 2020: a year of brave growth, 2021). However, with an estimated
GDP growth rate of 2.91 percent, Vietnam's economy has maintained its growth (Figure 2)

Figure 2: GDP growth in Viet Nam from 2010 to 2020

(Source: Vietnam's economy 2020: a year of brave growth, 2021)
According to the Political Report (2020) which was submitted to the 13th Party Congress. GDP
growth is expected to be around 5.9% per year for the entire period of the 2011-2020 Strategy,
placing the country in the group of high-growth countries in the region and around the world.
From 116 billion USD in 2010 to 268.4 billion USD in 2020, the GDP scale has increased 2.4
times (Nguyen and Nguyen, 2021). This economic growth helps to raise people's living
standards, which leads to more spending, making Asia and Latin America a promising and
appealing market for PepsiCo.
The macro-economy is more stable, inflation is under control, and the economy's major balances
have significantly improved. While COVID-19 had a significant influence on the global
economy, Vietnam's economic growth in the fourth quarter of 2020 was 4.48 percent (Vietnam
Quarterly Macroeconomic Report, 2021).
To sum up, economic growth is based on the gradual application of science, technology, and
innovation, as well as resource exploitation and credit expansion. The currency and foreign
exchange markets are essentially stable; ensure credit capital for the economy, with a focus on
manufacturing, particularly priority sectors. As the economy grows, so will material life and
consumer demand, which will be a great motivator for PepsiCo's growth because PepsiCo's
products already have a large market share and a strong foothold in the market. According to
Anh (2020), in recent years, PepsiCo has made trillions of dollars in profits. The company
reported a net profit of more than VND 1,639 billion in 2018, up 15% from the same period the
previous year. PepsiCo Vietnam's accumulated loss came to an end at the end of 2016. The
company made a total profit of more than VND3,200 billion at the end of 2018. PepsiCo
announced in 2019 that the factory in Bac Ninh would be upgraded, bringing the total investment
capital to 93 million USD. PepsiCo is very active in its sustainable development and

6
environmental protection strategy, in addition to its investment activities. PepsiCo reduced water
consumption by 70% and electricity consumption by 42% between 2006 and 2018, saving over
8,000 tons of plastic (Anh, 2020).

3.3 Social Factor

Vietnamese consumers, in particular, are becoming more health-conscious. Aside from eating
well, Vietnamese consumers want to eat in order to stay healthy. This social changes, like
technological changes, create both opportunities and threats. 2018 marks a year in which the
world is not only more "mature" in terms of health-care concepts, but also has many
breakthroughs in health-protection technology (People's view of health has changed in 2018,
2019). This shift had a wide-ranging impact, and companies that recognized the opportunities
early on profited handsomely. Pepsi increased its market share by introducing a diet cola and
juice drink based on the original soft drink. At the same time, health trends are posing a threat to
a variety of industries.
Vietnamese customers are young, healthy, and eager to express themselves through unique
personalities. Furthermore, the majority of young people are interested in Kpop. Recognizing
this trend, Pepsi Vietnam collaborated with the Korean girl group - BlackPink - to launch a
product set featuring each member's photo (Nguyen, 2020). The slogan for this campaign is "stay
young, stay cool, stay Pepsi" (Picture 1). Furthermore, Blackpink has a large number of fans and
followers, so the company also has a large number of customers who are fans of the brand's
representative face.

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 Picture 1: Limited products of Pepsi – Blackpink
(Source: Pepsi Vietnam on Facebook, 2021)
In society, there is a clear class divide; the rich and the poor have different needs and desires for
products and services. As a result, PepsiCo Vietnam always develops products with the customer
in mind. Instead of massive promotions, Pepsico sponsors charity funds and the national team.
PepsiCo Vietnam recently donated more than 13 billion VND to support Vietnam's response to
the COVID-19 pandemic (PepsiCo supports more than 13 billion VND for the program "Million
meals" to support difficult situations during the Covid-19 epidemic season, 2020)
People in a developed economy tend to save time for housework and family, which provides an
opportunity to promote the food and beverage industry's strong growth. European and American
countries, in particular, have an industrial working style, they value time and find that quick
meals, delicious drinks, and nutrition are the best solutions (McDonough, 2019).
3.4 Technological Factor

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The appearance of a series of products increases the level of competition in the market, thanks to
the rapid development of science and technology, the digital age. Technology is becoming a
more important factor in determining whether a company succeeds or fails (Hinde, 2013) . For
this reason, PepsiCo is always looking for new ways to provide high-quality and efficient
services and information, by lowering the cost of delivering products to customers while also
improving service, which is one of the company's top priorities. "PepsiCo is always looking for
ways to deliver services and information with high quality and efficiency," says Marie Quintana
Cummiskey. According to her, the scale of technology used at Pepsi is enormous and constantly
evolving. The company is one of the few that has a laptop-equipped sales team and is now
looking into RFID technology.
According to Hinde (2013), a significant shift in the pace of technological advancements over
the past decades has created new opportunities for firms in the sector. In 2011, PepsiCo Inc.
announced that they had succeeded in creating a bottle made entirely of plants that was identical
to the shell models in terms of shape, feel, and ability to protect the drink inside. right now
(Pepsi introduces a bottle made entirely from plants - Protect the environment, 2011). This puts
them ahead of Coca-Cola in terms of using environmentally friendly materials.
According to Truong (n.d), a PepsiCo Vietnam’s distributer director, Pepsi has used technology
software in its sales and marketing activities. PepsiCo Vietnam Beverage signing a contract with
FPT Software Ho Chi Minh for the DMS-Lite (Distributor Management System) project since
2013. This has yielded outstanding results, such as assisting Pepsico in deploying to 50% of its
distributors, who account for 70% of the company's revenue (Pepsi's DMS Lite solution
increases business efficiency, 2021).
3.5 Population Factor
According to Tran (2018), despite the fact that Vietnam used to be a country with a young
population structure, it is no longer the case. According to data from the General Statistics
Office, the youth population has been steadily declining from 2015 to 2019, accounting for 26.5
percent of the population in 2015 and only 23.8% in 2019. Despite "population aging," young
people aged 25-30 years old continue to make up the largest proportion of the population and are
growing at the fastest rate (41.4 percent in 2015 to 45 percent in 2018) (Nguyen, 2020). This is a
one of some advantages of Pepsico, young people, understandably, have a high demand for soft
drinks because bottled beverages are convenient and quick, whereas older people prefer to make
their own hot tea and coffee. Furthermore, the group of young people tends to eat outside of the
store or participate in entertainment activities such as dancing and singing, where soft drinks are
consumed in large quantities (Nguyen,2014).
Vietnam's population will gradually age to 2049 (General Statistics Office, 2021); Vietnam's
population began to age in 2011, but it is aging at one of the fastest rates in the world, and the
average life expectancy is increasing as the birth rate falls (Quan, 2020). As a result, Pepsi
Vietnam requires changes. policy changes, such as reaching out to more target groups, such as
the middle-aged and elderly. Ads that are more focused on elderly people or products that are
suitable for the elderly should be implemented.

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 Figure 4: The population pyramid medium variant 2014 and 2024
(Source: General Statistics Office, 2021)

IV- Microeconomics
4.1 The company
PepsiCo America Beverage, PepsiCo Americas Foods, and PepsiCo International are the three
main divisions of PepsiCo. North American and Latin American beverage businesses are part of
PepsiCo America Beverage. PepsiCo brands are sold in more than 200 countries, generating
more than $100 billion in retail sales (Pepsico, 2008). Moreover, PepsiCo has established a new
global management structure, which includes the appointment of a new CEO for Pepsi Americas
Foods. This shift in the food and beverage industry is intended to boost the company's market
share price (Goldberg, 2012)
Pepsi Vietnam's journey to becoming a beverage behemoth in Vietnam has not been easy, as the
company is constantly pitted against "old rival" Coca-Cola and Tan Hiep Phat. As a result of this
fierce battle, the beverage industry's "big guys" waste a lot of money. Pepsi must compete with
Coca-Cola to reduce prices while increasing costs. As a result, over time, both of them have
consistently reported massive losses (Tu, 2012). Pepsi has consistently reported losses from its
inception until 2007. The company had still lost 122 billion dong by the first months of 2006.
The loss dates back to 1991, so the total loss on Pepsi's balance sheet as of December 31, 2010
was VND 1,206 billion. Total revenue tripled between the end of 2006 and 2011, according to
Pepsico figures, rising from $8 billion to $22 billion (Fiure 5).

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 Figure 5: PepsiCo revenue from 2006 to 2011
(Source: macrotrend, 2021)
4.2 Suppliers
Pepsico expects the same level of honesty from its suppliers. They pointout out that a supplier's
unethical or illegal behavior could damage PepsiCo's reputation as a world-class company and
result in a loss of goodwill in the communities they serve. As a condition of doing business with
PepsiCo, all suppliers must adhere to the company's Supplier Code of Conduct, as well as
relevant policies and commitments (PepsiCo, Inc. Code of Ethics for Global Suppliers, 2018).
This mean, suppliers must enter into contracts and fulfill required purchase orders in order to do
business with PepsiCo, and they must follow the Supplier Code. PepsiCo sees supplier diversity
as a real competitive advantage because it fosters minority community development and
generates economic wealth through a variety of business activities. PepsiCo's Sustainable and
Responsible Sourcing strategy aims to: Drive positive business value and ensure PepsiCo
maintains a competitive advantage.
Moreover, PepsiCo, the food and beverage conglomerate that has risen three places in the
Gartner rankings, has announced plans to improve supply chain efficiency and effectiveness by
taking a more technology-focused approach (Top 10 supply chain companies in the world,
2019).
4.3 Marketing Intermediaries

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Direct store delivery (DSD), customer warehouses, and third-party distributor networks are the
three channels through which the company's products reach the market (Bailey, 2014). The
channel selection is based on customers' needs, product characteristics, and local trade practices.
 Direct store delivery (DSD)
Pepsi not only can deliver items directly to retail stores using the Direct-Store-Delivery (DSD)
framework, but also can sell with maximum visibility thanks to DSD. It is better suited to
products that are frequently replenished and is susceptible to promotions and marketing. DSD is
the channel where Pepsi gets the most recognition out of the three.
 Customer warehouse
Customer warehouse system can help Pepsi to save the cost for distribution. It's best for goodss
that aren't as perishable, have a lower turnover, and aren't bought on impulse.
 Third- party distributor networks
PepsiCo uses third-party food service and vending operators and distributors to deliver food and
beverage products to restaurants, businesses, schools.
Pepsi have acquired exclusive distribution contracts at small dealers through incentive programs
such as supplying lockers, tables and chairs, umbrellas, glasses, or services, in addition to the
supermarket system. Repair and maintenance of refrigerators are provided at no cost.
4.4 Competitors
Coca-Cola products have been always "better" than Pepsico in the global consumption market. In
Vietnam, however, the situation appears to be the polar opposite, particularly in the Ho Chi Minh
City area (Vu, 2019). One of the things Pepsi has always done is figure out where they are, set
goals, and work hard to achieve them. As a result, PepsiCo requires a highly focused orientation
in order to focus its financial strength even more in order to compete with Coca-Cola in the
markets. Tan Hiep Phat, a domestic food company, has become a heavy competitor of PepsiCo
with the impressive net profit (Figure7). After a period of intense competition, the bottled
beverage market in Vietnam has clearly shaped a group of dominant enterprises, including three
FDI companies, Suntory Pepsi, Coca-Cola, and URC, as well as two domestic companies. Masan
and Tan Hiep Phat (Nhip Song Kinh Te, 2021).

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 Figure 7: Tan Hiep Phat annual report 2019
(Source: viracresearch, 2021)
Many companies have spent a lot of money on advertising to build a brand. Because Pepsico has
been present in the market for a long time, it has a significant competitive advantage in all
aspects of the production process, from the main factors to the inputs. Materials, labor,
equipment, and skills, among other things, are all used in the manufacturing process. As a result,
PepsiCo can be confident in its advantage. PepsiCo, on the other hand, is always concerned with
improving its services in order to retain customers (PepsiCo, 2008).
4.5 Customer
Recognizing that the environment is a major global issue that is also receiving a lot of attention
in Vietnam. Pepsico promotes environmentally friendly brand promotion, which draws the
attention and enthusiastic response of customers, particularly young people, who are Pepsico's
primary target market.
Customers are the most important actors in an organization's microenvironment (Kotler,2013).
Wholesalers and distributors, food service customers, grocery stores, pharmacies, convenience
stores, e-commerce retailers, and others are among Pepsi-customers. PepsiCo distributes and
promotes its brands in a defined geographic area, and offers financial incentives to customers to
help with distribution and promotion. Discounts, product placement fees, promotions, and
displays are are just a few of the perks available to their independent distributors and retailers.
Pepsico provides incentive funds known as bottlers, which negotiate with each bottler annually
to support various deals for independent bottlers.
Vietnam's demographic and population structure are also rapidly changing. In 2018, the
population of Vietnam was 97 million people, and it is expected to reach 120 million by 2050.

13
PepsiCo's target market is the under 35-year-old population, especially teenagers, which
accounts for 70% of the population (Suntory PepsiCo predicts that the culinary trend of
Vietnamese people will be greatly influenced by social networks, 2020). Vietnam is clearly a
very appealing market, particularly for FMCG companies such as PepsiCo.
4.6 Publics
According to Kotler (2013), many different publics are involved in an organization's
microenvironment. Any group with a vested interest in or responsibility for achieving a
particular organization's strategic goals. Syringes were discovered in Diet Pepsi cans in the 1993
incident. Pepsi's public relations team focused on both internal and external audiences while
dealing with the crisis.
Pepsi's internal publics included executives, managers, stakeholders, and anyone else involved in
the production of Pepsi's products, while the external publics included the entire American
population, competitors, the FDA, and the media. Internal public communication was strong, and
the company ordered an immediate disclosure of all facts (Anton, 2011). Pepsi then took a
different approach to reaching out to the general public, focusing on television as a medium.
Furthermore, they are unyielding in their opposition to product recalls. One of the outside publics
involved in the crisis was Alpac Bottling Company, the local distributor and canner of Diet
Pepsi, and Pepsi allowed the company to explain to the media that product tampering was
unacceptable (Organizational Communication in Crisis of Diet Pepsi Syringe Scare -
PHDessay.com, 2020). The public was not convinced that the case was closed, so a video
documentary was made. Pepsi invited the press to visit the factory and film the production
process. The soda production process is then shown in this video, and the finished product is
virtually tamper-proof (Pepsi case, n. d. ). Following that, videotapes, memos, and surveillance
footage were sent, all of which reaffirmed Pepsi's innocence. The third video bulletin aired by
Mr. Weatherup as the syringe scare hoax continued shows a surveillance camera from a shop
convincingly showing a woman buying the product, opening it, and then placing a syringe
undetected. Later, FDA Commissioner Kessler assisted with a press release on June 17, 1993,
informing the public that the syringe scare allegations were false (Yaxaira, 2011).
During the crisis, it became clear that Pepsi's internal and external communication was very
effective, as the PR department released all relevant information to the public as needed. They
also persuade the general public that the matter is under control on a daily basis while conducting
their investigation.

V- Competitive Analysis
Today's Vietnamese market is characterized by severe competition; a variety of tactics used by
domestic soft drink makers to gain market dominance. PepsiCo competes in a very crowded
market. On the basis of price, volume, product variety, and distribution, they compete with
global, regional, local, and private label manufacturers. In Vietnam, the Coca-Cola Company is a
major competitor of PepsiCo Beverages. In detail, Coca-Cola has a bigger market share in
Vietnam in terms of carbonated soft drinks (CSD) consumption.Coca-Cola is also placed first in
the Top 12 most popular beverage brands in Vietnam in 2020, while Pepsi is ranked second (Top

14
12 most popular beverage brands in Vietnam in 2020, 2020). Pepsi, on the other hand,
consistently places in the top five in television advertising competitions, while Coca-Cola comes
in eighth (Dam, 2015). Other beverage firms like Dr. Pepper Snapple Group, Nestle Corporation,
and Danone, as well as food companies like Kraft Foods and Unilever, compete with PepsiCo
Inc.
According to Nguyen Quang Anh (2017), Customer Director of NEO Advertising Company, the
market is like a battleground, therefore it's understandable that beverage businesses strive for
exclusive rights through agents. The lack of prominent domestic brands in the beverage market
in Vietnam, according to this expert, is mostly attributable to the human and financial capability
of domestic beverage companies. "In order for Vietnamese businesses to make a name for
themselves in the beverage market, they need to identify a different category while also having
the correct brand strategy," Mr. Quang Anh stated.
Nowadays, thanks to the high saturation of the beverage and food industries , new entrants face
few obstacles. PepsiCo has a good relationship with retail channels due to their strong market
presence. This has allowed them to solidify their market position, erecting barriers to entry for
newcomers. Furthermore, In this industry, PepsiCo has an intense monopoly. The claim to be the
market leader or to have a significant market share results in fierce competition between PepsiCo
and Coca Cola titans. Weaker companies have lost market share to these two companies as a
result of increased competition for market share and increased cost pressures.

VI- SWOT Analysis

 Strengths  Weak
- Long-standing, prestigious, and well-known - Advertising costs are very high
global brand. - A strong main competitor
- Strong market position and market share. - A rush to differentiate
- Good product quality, reasonable price, - A latecomer
attractive and eye-catching packaging, and a
wide range of types and models.
- Customers value the convenience and
dynamism of the service.
-Pepsi is associated with a youthful,
groundbreaking style - a product for
teenagers.
- The taste is appropriate for consumers.
 Opportunities  Threat
- Modern consumer preferences and trends - Several alternatives are available.
are becoming increasingly diverse. - Customers are becoming more demanding in
- A sizable market, both now and in the terms of product quality and design
future. - Big competitors are exerting pressure
- The climate in Vietnam is conducive to the - Price sensitivity
development of beverage products. - Unfair competition
- In comparison to other competitors,

15
 technology advances faster and is easier to
obtain.
- A reputable and large supplier.
- High-grade raw materials

VII- Strategic Priorities

7.1 TOWs matrix
SO WO

- Pepsi has a stronghold in the hearts of - Developing new worldwide distribution

customers due to its seniority in the networks and forming strategic alliances
beverage industry. Furthermore, due to its
significant financial resources, the - Brand expansion will be aided by
corporation has great marketing capabilities, partnerships, acquisitions, and e-commerce
which will aid Pepsico in developing and expansion.
expanding the market in Vietnam to other
segments.

- Launching low-cost options for its

products (which can be accomplished by
reducing the volume of water in each
product to meet the demand for less
carbonated water) can aid the brand's
growth.

ST WT

- Pepsi has to focus more on marketing - Pepsico needs to increase its online
initiatives like product innovation and presence. This not only assists Pepsico in
maximizing its digital marketing skills. This reducing losses caused by the Covid-19
will minimize competitive pressure on the outbreak, but it also assists them in reducing
brand, lowering the competitive threat in the a portion of their marketing costs (because
long run. most e-commerce platforms focus on
marketing for the site itself or for products
- The threat of a stronger dollar and higher by category, especially household, fashion,
currency conversion rates can be mitigated food and beverage). Prices will become
by forming partnerships with other relevant more competitive as a result, allowing
businesses and acquiring smaller consumers to make faster purchasing
enterprises. decisions.

7.2 Recommendations

16
Market trends are shifting, and companies are working to offer better products for their target
audiences. PepsiCo's marketing strategy in Vietnam needs to be adjusted to incorporate "no
longer young" people in its media operations, as these people are frequently left out of their
marketing materials. PepsiCo will also have a better understanding of current and potential
customers by regularly analyzing these group of customers, as well as reviewing the success of
marketing initiatives for this set of customers. Moreover, in order to maintain customer loyalty,
Pepsi must constantly engage in innovative and creative activities in order to create a large
number of playgrounds for young people. Consumers in the Vietnamese market are increasingly
concerned about health issues and low-sugar beverages. To adapt, Pepsi must develop ads
relating to zero-calorie items in addition to classic ones. Thingking of some marketing content
that aimed at young people who enjoy getting out with friends, parties but are still concerned
about their health.
Pepsi should also introduce consumers to new drinks by offering free trial items at large and
local shops to promote new products. Advertising activities must also be deployed on a regular
basis to serve as a reminder of the company's products to customers .In the face of the current
trend of switching from carbonated water to fruit juice as a beverage, protect your health and
provide vitamins, to maintain its market share, PepsiCo must employ appropriate strategies and
see this as an opportunity to develop new product lines.
Furthermore, in the midst of the Covid-19 crisis, Pepsi's most accessible and cost-effective
promotional channel is online marketing. Indeed, social media is becoming increasingly crucial
in people's lives. PepsiCo needs to improve its social media presence, particularly on Facebook
and Instagram.

VIII- Conclusion
Pepsi has been and continues to be a popular carbonated beverage among consumers; however,
because customers are young, loyalty is easily swayed, so fewer promotional activities will
easily cause children to switch to better products. PepsiCo Vietnam's strong promotional
activities for the Pepsi brand have resulted in the majority of young people knowing about the
Pepsi beverage. Pepsi will gradually lose market share to other brands if it does not have the
resources to advertise, open activities to retain and find new customers, given the intensity of the
volume of advertising information that consumers currently have to "suffer."

17
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