MIDTERM ASSIGNMENT topic THE PEPSI NGÕ MARKETING CAMPAIGN

FOREIGN TRADE UNIVERSITY CAMPUS IN HO CHI MINH CITY
INTERNATIONAL BUSINESS ADMINISTRATION

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MIDTERM ASSIGNMENT Topic: THE PEPSI
NGÕ MARKETING CAMPAIGN Instructor:
Dang Thi My Dung Implementation Group:
Group 2 – ML96 Member list of group 2
Trương Lê Hoàng Vân
Tạ Hoài Nam
Lê Khánh Lâm
Lâm Mộc Văn
Trần Khánh Thuận
Nguyễn Hà Bảo Trâm
Bùi Ngọc Ngân Phương
Ho Chi Minh City, September 2021

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Table of Contents
I. SOME DEFINITIONS ............................................................................................

1.What is Marketing? ...........................................................................

2.How about Customer Insight?..........................................................
3. What is Marketing Campaign? ..........................................................................

4.How about Strategic Approach? .......................................................
II. BACKGROUND BEFORE THE CAMPAIGN ......................................................

1.Overview of PepsiCo before the Campaign ......................................
1.1.History ........................................
1.2.Mission and Vision .....................

2.Beverage Overview before the Campaign ..........................................
2.1.Carbonated soft drink overview .
2.2.Vietnamese consume non-alcoh
2.3.Brand’s Carbonated soft drinks o
2.4.Trends on the carbonated soft
III. CAMPAIGN ........................................................................................................

1.Target Audience ................................................................................
1.1.Culture ........................................
1.2.Age ..............................................
1.3.Music ..........................................
1.4.Media habits ...............................

2.Insight ...............................................................................................

3.3C.......................................................................................................
3.1.Company .....................................
3.2.Category ......................................
3.3.Consumer ...................................

4.Strategic approach ............................................................................

5.Big idea .............................................................................................

6.Execution (IMC plan) ......................................................................
6.1.Packaging ................................
6.2.Teaser ........................................
6.3.TVC.............................................
6.4.Social (Fanpage, KOLs /Influe
6.5.PR ...............................................

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7. Result........................................................................................................................................ 18
IV. REFERENCES........................................................................................................................... 18

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I. SOME DEFINITIONS
1. What is Marketing?
Marketing refers to activities a company undertakes to promote the buying or
selling of a product or service. Marketing includes advertising, selling, and delivering
products to consumers or other businesses. At its most basic level, marketing seeks
to match a company's products and services to customers who want access to those
products. Matching products to customers ultimately ensures profitability.

2. How about Customer Insight?

A consumer or customer insight is an interpretation used by businesses to
gain a deeper understanding of how their audience thinks and feels. Analysing
human behaviours allows companies to really understand what their consumers
want and need, and most importantly, why they feel this way. When consumer
insight research is conducted properly, it should improve the effectiveness of how
a company communicates to its customers, which is likely to change consumer
behaviour, and therefore increase sales.

3. What is Marketing Campaign?
Marketing campaigns promote products through different types of media,
such as television, radio, print, and online platforms. Campaigns are not solely
reliant on advertising and can include demonstrations, video conferencing, and
other interactive techniques. Businesses operating in highly competitive markets
and franchisees may initiate frequent marketing campaigns and devote significant
resources to generating brand awareness and sales.

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4. How about Strategic Approach?
The key word here is “valuable.” It’s what changes this definition from one
that could describe almost any form of advertising or marketing. You can tell if a
piece of content is the sort that could be part of a content marketing campaign if
people seek it out, if people want to consume it, rather than avoiding it.

II. BACKGROUND BEFORE THE CAMPAIGN
1.Overview of PepsiCo before the Campaign
How about PepsiCo?

1.1. History
In 1965, Donald Kendall, the CEO of Pepsi-Cola, and Herman Lay, the CEO of
Frito-Lay, recognized what they called “a marriage made in heaven,” a single
company delivering perfectly-salty snacks served alongside the best cola on earth.
Their vision led to what quickly became one of the world's leading food and beverage
companies: PepsiCo.

PepsiCo products are enjoyed by consumers more than one billion times a day
in more than 200 countries and territories around the world. PepsiCo generated more
than $70 billion in net revenue in 2020, driven by a complementary food and beverage
portfolio that includes Frito-Lay, Gatorade, Pepsi-Cola, Quaker, Tropicana and
SodaStream. PepsiCo's product portfolio includes a wide range of enjoyable foods and
beverages, including 23 brands that generate more than $1 billion each in estimated
annual retail sales.
1.2. Mission and Vision

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1.2.1. Mission
PepsiCo’s missions are to “ Create More Smiles With Every Sip And Every Bite
”, with the next parts adapt to whichever subject they are working for:
-

For consumers: “By creating joyful moments through our delicious and

nourishing products and unique brand experiences”.

-

For customers: “By being the best possible partner, driving game-

changing innovation, and delivering a level of growth unmatched in our
industry”.
-

For

associates

and

communities:

“By

creating

meaningful

opportunities to work, gain new skills and build successful careers, and a diverse
and inclusive workplace”.
-

For the planet: “By conserving nature’s precious resources and

fostering a more sustainable planet for our children and grandchildren”.
-

For shareholders: “By delivering sustainable top-tier TSR and

embracing best-in-class corporate governance”.
1.2.2. Vision
With all the smiles they have created, are creating and will create, PepsiCo
envisions it’s future self as the one who will “Be The Global Leader In Convenient Foods
And Beverages By Winning With Purpose”. This emphasizes the firm’s ambition as a

winner in the market sustainably while making the world a better place.
So as to make this “dream” come true, PepsiCo defines a set of
aspirations, which are to become Faster, Stronger, and Better.

2. Beverage Overview before the Campaign
2.1. Carbonated soft drink overview


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The average Vietnamese consumes around 23 liters of soft drinks per person
per year. These product categories account for up to 85% of the country's production
and consumption, according to the Association of Beer, Alcohol, and Beverages. The
beverage business expanded by 6.3% year over year in the first half of 2015. By
2020, this figure will have risen to approximately 8.3-9.2 billion liters per year.

Fact:
With a revenue of more over 5 billion dollars in 2020, Vietnam placed 24th
in the world in terms of US beverage consumption, down 1.7% from 2019.

Despite the COVID-19 pandemic and a minor drop in sales compared to
2019, non-alcoholic beverage giants from the United States, as well as
some homegrown products, continue to occupy a significant share of the
Vietnamese market.

The existence of over 1,800 beverage production facilities demonstrates
Vietnam's strong appeal in the beverage business.
The non-alcoholic beverage business in Vietnam is attracting a lot of interest from
investors. The reason for this is that the internal growth rate remains impressive at 67% per year, whilst France and Japan are only predicted to increase at 2% per year.

2.2. Vietnamese consume non-alcoholic drinks
Non-alcoholic beverages, which come in a variety of flavors, have also
seen consistent development.
Both indoors and out
In Vietnam, non-alcoholic beverage consumption outside the home is
more common, although the value of the shopping cart for home consumption is
three times higher.

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The amount of money spent on indoor and outdoor drinking water differs
as well


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Demand for drinks

According to a 2019 Worldpanel Division analysis, Vietnamese consumers
have seven primary needs when it comes to drinking water. In which the most
basic desire for refreshment still reigns supreme, accounting for 25% of all
drinking occasions. They also drink for various reasons, such as:
Drink with your meals (11% )
Supplementary energy (16% )
Begin a fresh day (15% )
Promotion of health (11% )
Family get-togethers (14% )

Chat with your pals (8% )
2.3. Brand’s Carbonated soft drinks on social media

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Soft drinks and energy drinks (5.4 million discussions) and beer (4.7 million
discussions) are the most popular FMCG products on Facebook. Beverage firms are
holding many of the most notable promotions on Social Media (64% of discussion
content), mobilizing a huge number of celebrities, with the benefit of youthful and
countrywide users, as well as “hot profiles” on Facebook to join.

Pepsi was the most talked about brand on social media in 2020, with

approximately 1.7 million mentions. "Reunited New Year Givers" during the Lunar
New Year time, a cover contest for high school students in May 2020, and a duet
app with idol Kara are just a few of Pepsi's notable projects this year. Pepsi
frequently came in contact with a variety of musicians, including Monstar, Jang
Mi, Isaac, and others, in order to reach out to youthful music fans. Furthermore,
arguments regarding Pepsi frequently arise in the content of fast food chains like
KFC, Lotteria, or theatres like Lotte Cinema…

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2.4. Trends on the carbonated soft drinks market
The growing desire for healthy and sustainable products is one of the most
important trends in the carbonated soft drink market. Consumer preferences have
evolved toward more natural, "clean label" items, such as fermented drinks, teas, lower
sugar beverages, and fortified drinks with health claims. In fact, carbonated beverages
are becoming more popular, but because high-sugar drinks are seen as an indulgence,
they are consumed only on occasion rather than on a daily basis. Furthermore, the
number of people who are concerned about labeling is growing. In order to acquire
customers' trust, businesses must also focus on information transparency and simplicity.

According to experts, the beer business could take up to two years to recover to
its pre-Covid-19 and pre-Government Decree 100 state. The amount of alcoholic
beverage consumption is expected to reach almost 300 billion VND by 2024, with a
CAGR of 9.5% over the period 2020-2024. With the majority of consumption, the beer
industry will continue its leading position in the alcoholic beverage sector. Furthermore,
by 2024, sales of non-alcoholic beverages and nutritional drinks are predicted to increase
by 10.5%. Carbonated drinks will also see substantial sales growth, with an average

annual growth rate of 11.9% in the medium term, up from 14% in 2020.

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III. CAMPAIGN
The Ngõ Pepsi version was produced in July, 2020, exclusively for the Northern
market. With each beautiful text that can be displayed on cans, Pepsi and creator Viet
Max wish to reproduce the product of a Northern Alley with strong cultural values for
young people, anyone of any age is more receptive to the investment capital that is
considered "traditional".
1. Target Audience

1.1. Culture
Accepting the invitation to cooperate with Pepsi brand to honor the special
culture of the North, Viet Max was inspired by the alley where he was born and raised to
create artwork printed on its cans. At the same time, Pepsi also breathed the soul of
young life with the music video "Small Alley, Yes Pepsi!" To inspire a more complete
culture with young audiences.The footage with the image of skateboards, Hiphop Dance
and the collaboration with famous rapper Mr T helps Pepsi affirm its determination to
cover the market share for the world.

1.2. Age
Young Vietnamese people in 18-35 year old

1.3. Music
Almost all young Vietnamese people like music. Music is a magical tool for any
advertisement attracting customers effectively. So “Pepsi Ngõ” takes advantage of

music, especially rap, to release a music video for the campaign - “Small alley, there is
Pepsi Ngõ”. The MV showcased the big world in the small alleys, creating a unique

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harmony and young culture. Then they created opportunities for the North Youngers and
local brands to tell their stories of Ngõ.

1.4. Media habits
There’s no escape from YouTube in Vietnam, whether you’re on a bus, in the gym,

or just trying to get the receptionist’s attention as you check in to a hotel - YouTube
is everywhere. The Google-owned video search engine listed Vietnam as one of its five
largest markets in the world. Between 2018 and 2019, viewability for Youtube ads
reached 97% in Vietnam. Based on the results, Pepsi could see how effective its digital
ads—especially on YouTube—were in reaching younger consumers.

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2. Insight
I enjoy exploring and always want to join the fun, but everything around me is
becoming monotonous (getting familiar and boring). I want to discover new interesting
things and enjoy my youth.

3. 3C
3.1. Company
Pepsi is always present in interesting places, turning on emotions for users.

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3.2. Category
Refreshments in the fun.

3.3. Consumer
Young people always like to roam and look for interesting places to enjoy their youth.

4. Strategic approach

Renewing the image of Hanoi's alleys not only keeping the tradition but also reaching
young people in a modern style that attracts them to explore and discover.
5. Big idea

Pepsi ngõ : On the streets of Hanoi, there are alleys that are small but full of
energy and full of interesting colours that need someone to explore. Pepsi accompanies
interesting places to help young people quench their thirst, unleash their emotions, and
stir up the fun.
6. Execution (IMC plan)
It is the very first time ever culturally localized pack produced by Pepsi
designed by one of the cultural icons in Vietnam, artist Viet Max.
The whole campaign, consisting of two main parts, was started in July 2020:

Releasing teaser Pepsi Ngõ
Revealing and clarifying the message through TVC

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6.1. Packaging
Accepting an offer to collaborate with the Pepsi in order to celebrate the unique
culture of the North, Viet Max was inspired by the alley where he was born and
reared to produce artwork printed on its cans.The new sized Pepsi is 75% smaller
and cheaper but is 100% bigger with the values of Northern Alley life.

6.2. Teaser
On July 14, 2020, a teaser was uploaded on Facebook. Young
people have shown a lot of interest in the brief teaser.
6.3. TVC
All attention was on Pepsi's TVC "NGÕ NHỎ, CÓ PEPSI!" with a duration of
one minute was launched on YouTube and Facebook on July 15, 2020. The music
video showcased the big world in the small alleys, creating unique harmony of
traditional and young culture. The scenes were shot in Hanoi, which has numerous
alleys with traditional Northern activities but is entirely decorated with the colors of
young culture during the integration period. Even more notable, the primary media
edition this time is designed by Viet Max. These factors make it simple to envision a
product geared towards young people. Footage of skateboards, Hiphop Dance, and
a cooperation with famous rapper Mr T help Pepsi demonstrate the brand's ambition
to capture this age group's market share everywhere they go.

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6.4. Social (Fanpage, KOLs /Influencers)
Pepsi took advantage of most digital forms, such as building interest through.

KOLs on Facebook, Viral clips, PR, and so on, as well as TVC and packaging.
Fanpage
Pepsi has released material as well as a TV commercial on Fanpage to
enhance the campaign to reach young people more quickly and effectively.
KOLs
Invite a lot of KOLs to check-in at familiar alleys throughout the North with
the hashtag #PepsiNgo.

The invitation of KOLs to engage in the media has attracted a
significant number of young people to Hanoi to check in at these allleys.

6.5. PR
Pepsi and BWild collaborated to produce new tunes and dancing
movements that drew in more and more young people to support the campaign.

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Throughout the project, the various articles published increased the
campaign's popularity. Such as Kenh14, Zingnews, etc.
7. Result

At the MMA Smarties award 2020- adwarding innovation and creative
effectiveness marketing award, “Pepsi Ngõ” won bronze in the category “Brand
Awareness”. Campaign developed to promote brand growth, development, and
enrichment, as well as to generate brand awareness and familiarity among targeted
customers. Demonstrate how the campaign met any or all of these criteria.(Bronze)
Pepsi Ngõ created an impactful launch for total CSD in the North, great
performance in media
45% VTR , an unprecedented VTR across big platforms like kenh14, the
entire Zing ecosystem, etc.
Pepsi gained 0.4 point share in just 45 days, won 11.5k exclusive outlets
from key competition, which had never had any clear progress in the past.
Pepsi was the brand of substance that went beyond coolness for the
youngsters from the North.
Pepsi Ngõ has created a powerful platform for the long running battle
against coca-cola.
Pepsi won the hearts of locals by embracing the spirit of Northern life and
their unique Culture.

IV. REFERENCES
1. Investopedia.com, Marketing [Online]
Available from: < [Accessed 21 September 2021].

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2. Business.trustpilot.com, What are customer insights and how do I use them? [Online]
Available from: < > [Accessed 21 September 2021].

3. Wikipedia.org, Customer insight [Online]

Available from: < [Accessed 21 September 2021].

3. Investopedia.com, Marketing Campaign [Online]
Available from: < [Accessed 21 September 2021].
4. Forbes.com, What is content marketing? [Online]
Available from: < [Accessed 21 September 2021].
5.

Theleader.vn, Lợi nhuận nghìn tỷ của PepsiCo tạ i Việt Nam (2020) [Online]

Available from: < [Accessed 21 September 2021].
6. Suntorypepsico.vn, Suntory PepsiCo Vietnam’s 3rd Year in a Row Being the
Most

Trustworthy Non-alcoholic Beverage Company in Vietnam in 2019 (2019) [Online]
Available from:< [Accessed 21 September 2021].
7. Sunstorypepsico.vn, Suntory PepsiCo giữ vững vị thế hàng đầu trong linh vực nước
giải khát bằng cú đúp giải thưởng danh giá công ty đồ uống khơng cồn uy tín nhất VN
(2020) [Online]

Available from: < [Accessed 21 September 2021].

8. Konvoi.vn, Báo cáo các ngành hàng và thương hiệu trên MXH năm 2020
(2021)
[Online]
Available from: < [Accessed 21 September 2021].
9.

Vietstock.vn, Ngành thực phẩm đồ uống (2021) [Online]

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Available from: < [Accessed 21 September 2021].
10. Aimacademy.vn, Giải mã hành vi tiêu dùng trong thị trường nước uống Việt
Nam

(2020) [Online]
Available from: < [Accessed 21 September 2021].

11. Viracresearch.com, How Viet Nam Beverage Industry react to Pandemic in 2021
(2021)
Available from: < [Accessed 21 September 2021].
12.Kenh14.vn, Hành trình sáng tạo của Việt Max lấy cảm hứng từ văn hoá ngõ Bắc
Bộ

(2020) [Online]
Available from: < [Accessed 21 September 2021].
13. Theinfluencer.vn, Case study: Cùng mang văn hoá đường phố Việt kết
hợp với Hiphop, Biti’s hay Pepsi thành công hơn? [Online]
Available from: < [Accessed 21 September 2021].
14. Kenh14.vn, Hậu trường 48h khám phá văn hoá ngõ Bắc Bộ (2020) [Online]
Available from: < [Accessed 21 September 2021].


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