Topic choose one brand (productproduct lineserviceidea) of your choice in one country to analyze the impact of culture on consumer behaviour

MKT 201 – INDIVIDUAL ASSIGNMENT
CONSUMER BEHAVIOUR

Lecturer:

Trần Tuyết Minh

Name :

Nguyễn Quang Anh

Class :

MKT1614

Student ID:HS160018
Subject

:MKT201

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Topic: Choose one brand (product/product line/service/idea) of your choice in one country to
analyze the impact of culture on consumer behaviour.
All assignments should be typed and double-spaced with 11-point font, and must be submitted in both
soft and hard copies. A deduction of 10% of the assignment mark will be applied for each day of late
submission.
Table of content

Structure guideline:
1. Introduction
1.1. Overview of the brand/product/service/idea)
1.2. STP Strategy
1.3. Aims: Analyse the impact of culture on consumer behaviour
2. Body part
2.1 Definition of culture and related factors
2.2 Definition of consumer behaviour
2.3 Culture of the country (That you chose to analyse)
2.4 Consumer behaviour in purchasing that product in that country
2.5 Analyse the impact of culture on consumer behaviour in that country
3. Conclusion
4. References

Assignment:
1.Introduction
1.1 Overview of the Coca-Cola
The Coca-Cola Company, headquartered in Atlanta, Georgia, incorporated in Wilmington, Delaware, is a
beverage company and multinational manufacturer, retailer, and promoter of non-alcoholic beverages and
syrups. USA. This company is best known for its leading and most famous product in the world CocaCola.
Main product:Coca-Cola (often abbreviated as Coca) is a brand of carbonated soft drinks containing
saturated carbon dioxide water produced by The Coca-Cola Company. Coca-Cola was developed by
pharmacist John Pemberton in the late 19th century with the original purpose of being a medicine against
headaches and fatigue. However, then an American businessman, Asa Griggs Candler bought the formula
for this oral drug, and with clever marketing tactics, he made Coca-Cola one of the leading products in
the market. carbonated soft drinks market in the twentieth century. Coca-Cola's name is derived from the
drink's two original ingredients: cola seeds (high in caffeine) and coca leaves. Today, the original CocaCola recipe remains a trade secret, and is known to only a handful of workers. Despite this, various
experimental formulations have been widely published.

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In addition to providing the main product is the carbonated drink Coke is also known for a series of
famous campaigns around this infamous drink. For example: Love story, Taste the Feeling, Super Bowl
2012, Share A Coke,…
Behind the success of Coke they have a method of marketing usually Coca-Cola for their product. Most
companies usually categorize their marketing strategies into different categories. For Coca-Cola, market
segmentation, targeting, and positioning are the three essential elements that help the company effectively
serve its target customers.

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1.2 STP strategy
Is a famous marketing model applied by leading companies around the world and Coca-Cola is no
exception.
STP marketing strategy consists of 3 stages:
_S (Market Segmentation) market segmentation:
Demographic segmentation: Their customer segmentation is from 10 to 50 years old, mainly and young
people between the ages of 15 and 35 are supported by both men and women according to the survey. Due
to its low cost, easy access and popularity, it is suitable for most students, students, office workers and
workers.
Psychographic segmentation: The product is customer-oriented and positioned as a refreshment product,
customers come to the product to seek refreshment, satisfy their thirst, sometimes it is a soft drink, etc.
Their affirmation of life style. Coke chose the red color associated with their brand to attract the attention
of users who often use it to convey messages about happiness, family and life experiences. Their products

often emphasize the emotions of viewers with family images around, people from all over the world
regardless of ethnicity and color together drink Coke.
Geographic segmentation: Because it is a cheap product and a popular product in the market, Coke has a
large network all over the world, so the product is distributed and directed to all countries, big cities,
where the focus is. There are many residential areas, restaurants, restaurants, tourist areas, water vending
machines, etc. because of its popularity, with reasonable prices for most consumers.
Behavioral segmentation: This is the last element, but the company's marketers consider it the starting
point to form this market segment. Because it focuses on the knowledge, reactions, and attitudes of
customers towards customers. their products.
_T (Marketing Targeting) choose the target market:
With a presence in the entire market worldwide, the company's goal is to satisfy the basic needs of
customers, from young to old, from ordinary people to those who care about safety. food safety and
related health problems.
Their main target market is young customers 10-25 years old and a secondary market is 25-40 years old.
The company positions their product as a product with a delicious, rich, refreshing taste, and at the same
time they focus on health-conscious customers with variations such as: Coca ko calories.
Or another product that focuses mainly on youth and students with a more active product is Sprite.
_P (Positioning) positioning the product towards the target market:
With Coca-Cola, they position their product as the world's leading beverage product associated with the
image of gathering and being happy with family and friends when enjoying moments and meals together.
In addition, they also position themselves as a product of high quality, safe for the health of consumers.
They position customers when they want to find a high quality carbonated beverage product, they have to
think of Coca. They position themselves as a brand that brings satisfaction and positivity to customers,
meeting the needs and preferences of global customers.
In a market with many products and strong competitors like Pepsi, an effective positioning strategy will
make the product stand out from other competitors' products and create curiosity from customers row.
1.3 Aims: Analyse the impact of culture on consumer behaviour
The objective of this report is to analyze the impact of cultural factors in Vietnam on consumer behavior
when using Coca-Cola products.

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Hofstede's cultural dimensions assess how culture in Vietnam affects consumers' purchasing decisions.
Coca-Cola's strategies have positioned its image in the eyes of Vietnamese consumers to maintain its
simplicity and core values.

2.Body part
2.1 Definition of culture and related factors
Culture is one of the most important factors that directly affects businesses in general and marketing
activities and strategies in particular. Some of the key cultural factors that influence marketing include:
_Language: Language directly affects the way sellers and customers communicate, affecting the way they
communicate for each country, territory, and geographical region because it is impossible to use a
different language. to market to a market with no knowledge of that language. It directly affects the way a
company conveys and interprets its message to its customers.
_Personal Values - Culture has a big impact on the values people hold. Not everyone has the same style,
role model, idol, etc. Each individual is a separate being.
This directly affects product design, placement, advertising, etc.
_Customs – Each country and region has its own unique and distinct cultures, customs and traditions. A
smart marketing strategy must consider these factors when determining the products to introduce, how to
introduce them, and how to promote them to suit the customs of each different region.
_Diversion (food, art, value): Marketers often promote their products based on the need, desire to
experience that product. But this factor directly affects the development of a marketing strategy.
2.2 Definition of consumer behaviour
Consumer behavior is the study of how individual customers, groups or organizations select, buy, use, and
dispose ideas, goods, and services to satisfy their needs and wants.
The study of consumer behavior is very important, it helps marketers know what influences consumer
buying factors. At the same time, it helps marketers figure out how to influence consumers in the most

optimal way leading to customers' purchasing decisions. Make it easier for marketers to plan their
marketing.
The buying behavior of customers is often influenced by four main factors: cultural, social, personal, and
psychological. Buying behavior revolves around these 4 factors mainly to base on to know how to
approach and serve customers more effectively. Marketers must grasp the trend, use each strategy and
factor suitable for each different customer to achieve the most optimal effect. To market in the best way,
we must understand our customers, understand the market to discover the latest trends and seize
opportunities to give the business an advantage.
_Cultural factor: This is the first and basic factor to consider when a business wants to penetrate this
market because each country and territory has its own culture and characteristics. Marketers need to
design marketing and advertising strategies suitable to the culture of each place, carrying the message and
national identity. In addition, social class is also influenced by cultural factors, this class is not only based
on personal income but also the difference by education and education level, but they will have a different
view of products. Marketers need to pay attention to this to have a separate treatment to suit each class.

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_Social factors: Buying behavior is sometimes also influenced by factors such as family, social status, ....
To achieve high effectiveness, marketers must identify the right audience and family members. Families,
groups have decision-making power, have great influence on the purchase of different products and
services. In addition, buyers often choose products that speak to social status, and marketers need to
clearly define the product lines and brands that do that.
_Personal factors: These factors include demographic factors such as age, gender, income,
occupation,...depending on the views and preferences of each person. Each person, each profession, each
lifestyle, each economic situation will have different shopping needs. Marketers often select groups of
customers according to their life cycle and life circumstances as their target market.
_Psychological factors: Customers may have many different needs at different points in their lives. Some

needs may stem from fatigue, stress, hunger, thirst, etc. Others may stem from a need for recognition and
esteem. In addition, the urge is also a motivating factor to stimulate buying behavior.
In addition, the surrounding factors at the time of purchase, the time factor and the perception of the
product and the evaluation after use are also important factors affecting consumer behavior. Consumer
behavior always changes with time, surroundings, income level. Consumers can make a decision to buy a
product based on different buying motives. Therefore, marketers need to influence consumer behavior to
increase customer purchases.
2.3 Culture of the country (That you chose to analyse)
The Coca-Cola Company often has their campaigns and strategies in place to better respond to local ideas
and cultures.
The Hofstede model of national culture helps Coca-Cola companies better understand the culture of a
particular country. The Hofstede model focuses attention on six specific elements of culture that help
companies make important strategic decisions and design optimal marketing plans and activities.

Hofstede cultural dimensions

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Vietnamese culture in the direction of Hofstede is measured in 6 dimensions including:
_Power distance index (PDI): This aspect refers to the ranks of individuals in unequal society. Power
distance is the degree to which less powerful members of organizations accept that power is distributed
unequal. In Vietnam people accept this system, which reflects inherent inequality, subordinates expect to
be told what to do, and the ideal boss is a benevolent autocrat. The fact that lower-level employees do not
comply with their superiors is not supported in Vietnam. This is very evident in the environment around
us such as in the family, school, classroom, ...
The Coca-Cola Company has a very well organized, hierarchical system. This helps employees feel
trusted, motivated to strive in the company to be able to achieve higher ranks at work, and at the same

time helps them optimize work performance in the most optimal way.
_Individualism vs. collectivism (IDV): this aspect is the degree of interdependence that a society
maintains between its members. In Vietnam is a collectivist society. This is shown by the close connection
between family members and clans. In Vietnam, everyone in a collective must always be closely
associated with the collective or family if they are one of its members and they must be responsible for
the collective. That helps to improve the responsibility, the relationship between the team members.
The Coca-Cola Company maintains a combination of both individualism and collectivism in their
corporate culture despite being part of a collectivist society in Vietnam, which helps to maximize
efficiency. Employee productivity helps drive business performance in a reasonable way. At the same
time, individuals and groups who have achieved and are highly appreciated are honored and rewarded
accordingly.
_Masculinity vs femininity (MAS): In this respect “Masculinity” is defined as the result, material reward,
success that the individual achieves. On the contrary, "Feminity" is about cooperation, caring about other
struggling individuals. In a country where there is a tendency to masculinity, women are often not
respected in society, their work is often associated with the images of cooking, housework, and taking
care of children while men have to do big things and have a career. have a voice in society.
In Vietnam as a country with a focus on working to live, people value equality, solidarity and high quality
in their life and work. Vietnam has long been considered a country that respects gender equality, they are
challenged in many different fields from education, health, culture, science and technology,....
_Uncertainty avoidance (UAI): This high index indicates the degree to which members of the community
adhere to a common rule, rule or rule that everyone is aware of. At low levels, they often see openness, no
rules, many conflicting opinions and often controversy, tend to develop freely, have little tutoring, are
willing to take risks.
In Vietnam, people are often not afraid of challenges and failures, they see those failures as lessons to
overcome and do better next time. That is a very positive point, Vietnamese people are often quite quick
to adapt to other environments. For example, a lot of young people of student age are always trying to
start a career by themselves with all kinds of jobs such as selling clothes, cafes, fashion shops, etc. They
want to try themselves to gain experience. , take risks, fail, and be willing to redo and learn from previous
mistakes.
_Long-term orientation vs. short-term orientation(LTO): In this aspect describes the association related

from the past to the future. When this index is low, it shows that the society preserves the old traditions
and is a highly stable society, but this society will find it very difficult to develop economically and vice
versa. , a society with this high index means that this society is interested in the long-term process,
adapting quickly, focusing on problem solving.
In Vietnam, belongs to the group of pragmatic culture, we always direct the country to develop in the
future as the top goal. Vietnam has long-term policies in intervals of 3-5 years 5-10 years. Vietnamese
people often value results, and they only focus on achieving the best results. In family culture, parents
always invest as much in their children's future.

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_Indulgence vs restraint (IND): In this respect, the degree of social integration of young children, defined
as the extent to which people try to control their desires and impulses based on the way in which they
have been taught . Vietnamese culture is said to be restrained, customers tend to be skeptical and
pessimistic about everything. They do not focus much on leisure time, well control the satisfaction of
their own desires. They are limited by social norms, they feel that it is wrong to satisfy their own needs.

2.4 Consumer behaviour in purchasing that product in VietNam
The buying behavior of customers when using Coca-Cola products in Vietnam is influenced by many
factors. With extensive operations in many countries in Asia such as in China, India, Japan, Philippines,
Korea, Southeast Asia, Coca-Cola company needs the right strategies, touching close with customers to
create optimal sales, promote customer buying behavior. We will focus on analyzing the factors affecting
the buying behavior of Coca-Cola of customers in Vietnam.
_Social factor: Coca_Cola is considered a popular item with all walks of life with an extremely cheap
price and is suitable for students, workers ~8000VND~12000VND for 1 can of Coca to Refreshing and
energizing for work and study. With a variety of program activities to attract customers, such as the
program "Dua tai am thuc" with many activities, providing information about knowledge about food and

health to consumers. In addition, in 2014, a campaign that caused fever at that time that no soft drink
company had used before was Printing usernames on Coca-Cola cans. This campaign is also widely
known as “Share a Coke”. This is also considered the most successful campaign of Coca-Cola. This
campaign created a strong movement among young people in just a short time. With the help of today's
technology and communication, Coca has achieved a lot of success and better positioned its products.
themselves in the eyes of Vietnamese consumers. The idea of this campaign helps family members have
more family reunion moments, share memorable moments with Coca. With the image of a Coke can with
the name of a relative, a friend you haven't seen for a long time, give him/her a Coca can with their name
on it, it will make the relationship of both of you better.

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During this campaign, the content of this campaign is always changed to suit more consumers.
And not only in Vietnam, this campaign has achieved global success with 378,000 coke bottles produced
with their own names printed on the bottles, 76,000 models of bottles created and shared on facebook.
This has made the traffic to the fanpage of coca-cola increase by 87%.
In addition, with a retail strategy in each grocery store, water store, convenience store, restaurant, cinema,
etc. Or with the message "Coca-Cola ket noi nha nha, Tet them ron ra" and always present in traditional
holidays and major holidays of Vietnam, making the image of Coca cans closer to each Vietnamese
person.

_Psychological factors: Coca-Cola Company has smart strategies to capture the psychology of
Vietnamese customers. They build their brand by continuous interaction with customers in the
community, They promote the buying motivation of each specific individual such as stress, fatigue, thirst
are unsatisfied individual needs , that drives customers to think of Coca as a beverage through campaigns
and they position their products in the minds of customers. The campaign "Trao Coca, ket noi ban be" has
generated more than 400,000 conversations around the above topic with more than 548,000 search results

for the "Share a Coke" campaign. In addition, Coca-Cola always leaves a mark in customers' minds with
some images such as fonts, exclusive water bottle shapes, and retail prices that are always unchanged.

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_Personal factors: With the main target of Coca products in Vietnam is from under 18~65 years old, with
cheap price suitable for the salary of the majority of Vietnamese workers (~6.5 million VND-7 million
VND). VND) is loved by both genders, Coca always gives users the most comfortable feeling. With its
convenience and compactness, you can easily carry it around or with its variety, you can buy it anywhere,
for example, grocery store, water bar, restaurant, etc. you quench thirst, refresh, create a sense of appetite
and excitement when used in meals, rehydrate after sports activities.
When making a decision to buy Coca-Cola products, consumers need to go through a 5-step buying
process:
The first is the need of customers to find a product that can quench their thirst with good quality and
cheap price (7000-10000VND) then how to let consumers know about the product, receive information
that Coca can meet their needs through many different communication channels. After that, the customer
will make choices, attributes that Coca has such as price, customer service, ... and then the customer
makes a decision to buy the product. And there will be negative or positive reactions from customers and
the way the company reacts then will determine the total number of future customers.

2.5 Analyse the impact of culture on consumer behaviour in VietNam.
Like many other companies, the cultural factor is the most important factor for the company to come up
with marketing strategies that best suit the culture of Vietnam. With a strong competitor like Pepsi, when
the taste of food in the South and the North is different. In the South, their taste is usually stronger, more
sweet, they will prefer Pepsi, and in the North, they will prefer Coca. So how can Coca regain market
share and become the number 1 favorite soft drink name in Vietnam? In Vietnam, Tet is considered the
most precious holiday of the whole nation, they believe that on this day is the day of harmony between

heaven and earth, people and gods, also the first occasion of the year to welcome everyone's luck. gather
together. Knowing that, many media campaigns are launched on the occasion of Tet, but Coca-Cola is still
a brand that retains an unmistakable distinction through each campaign. Keeping the original core values,
Coca-Cola constantly brings the image of a new Tet, filled with laughter and happiness. Coca-Cola with
TVC advertises "For Tet with love" />
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_According to Hofstede's theory, Vietnam is a society with gender equality, everyone from men and
women, young and old, is eager to prepare and edit everything to match the Tet theme. Men and women
exchange Coca-Cola bottles to show their affection for each other.
With a simple image, everyday life is close but with a warm and happy atmosphere that makes customers
feel when using the product with their loved ones, they will see the love that needs to be cherished and
shared. And right after TVC was launched, it received positive responses from consumers. The image of
simple moments when family gathers, friends who haven't seen each other for a long time have the
opportunity to sit together and chat, making viewers feel close, seeing that they are being reminded of
their own stories arrive. Coca-Cola's advertisements always carry an image with a bright smile and a
happy face, expressing the joyful atmosphere of the traditional Tet holiday in Vietnam.
In addition, Coca-Cola also encourages people to store and share Tet images and moments with their
family through the contest "Bat khoanh khac, Tet yeu thuong" at Coca-Cola's fanpage in Vietnam with
each photo with the rope that tightens people closer together, creating a wonderful and meaningful Tet
picture. Not only that, Coca-Cola has also expanded the campaign "Chuyen xe yeu thuong" to be able to
roll all over the road in Vietnam so that it can capture every moment on every road it passes through,
contributing to the Busier, more engaged and happier. Coca-Cola has shown interest in understanding its
customers with creative images and videos that still retain the beauty of Vietnamese culture.
The success of this campaign has been voted by everyone for Coca-Cola as one of the two most
impressive advertising brands at Millward Brown Vietnam. This is perhaps the clearest proof that CocaCola has really succeeded in building advertising campaigns about cultural elements that go into the
hearts of consumers in Vietnam.

It shows that Coca-Cola's development potential in Vietnam is still great, but they will never forget the
core value of their products.
The success of Coca-Cola shows that cultural factors are really important in stimulating consumer buying
behavior.
Coca-Cola is a company that is very careful, detailed in each of their marketing campaigns, but there are
still mistakes in their campaigns due to misunderstanding the local culture. 1972 when Coca-Cola started
selling in the Chinese market with their product name read as "Coca-Cola". But their mistake not to

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mention that the Chinese pronunciation is "Kekoukela"' which means "Bite the Wax Tadpole" or "female
horse stuffed with wax", which caused a wave of protests from the Chinese. . Realizing their mistake, the
company's experts had to find more than 40,000 homonyms to come up with a new name with the
pronunciation "Kokoukole" which means "Happiness in the mounth".
=> This shows that Vietnamese society is a collective society, living according to the theory of Hofstede.
Coca captures the Vietnamese market, they build the image of their products attached and friendly to the
image of Vietnamese people every Tet to spring. Positioning in the minds of consumers all important
events, this Tet holiday of Vietnamese people cannot lack the image of Coca-Cola.

3. Conclusion
In general, there are many factors affecting the buying behavior of consumers, it is important for
marketers to bring positive satisfaction to existing customers by maintaining stability in quality and
service. , price, etc. Also, try to attract new buyers by offering new features and features of the product.
An effective positioning strategy will make the product stand out from other competitors' products and
create curiosity from customers. From there, position your image in the mind of the customer.
At the same time, carefully study the market, customers, and factors affecting customer shopping

behavior to come up with the best marketing strategies for the company to bring in optimal sales.

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