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Marketing Principles Assignment 1: A REPORT ON MARKETING STRATEGIES OF GATORADE IN VIETNAM

BANKING ACADEMY, HANOI
BTEC HND IN BUSINESS
(FINANCE)
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Trần Quyết Thắng - Joe
ITP-F05 - 194
Marketing Principles
Assignment 1
1 of 2
Doti Chee
19th November 2012

I, __________________________ hereby confirm that this assignment is my own work and not

copied or plagiarized from any source. I have referenced the sources from which information is
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Unit Outcomes
Outcome

Evidence for the
criteria

Feedback

Assessor’s decision
First
attempt

Understand
the concept
and
process of
marketing
LO1

Be able to use
the concepts
of
segmentation,
targeting
and


positioning
LO2

Explain the
various elements
of the marketing
process

1.1

Evaluate the
benefits and
costs of a
marketing
orientation for a
selected
organisation

1.2

Show macro and
micro
environmental
factors which
influence
marketing
decisions

2.1

Propose
segmentation
criteria to be
used for products
in different
markets

2.2

Choose a
targeting strategy
for a selected
product / service

2.3

Demonstrate
how buyer
behaviour affects
marketing
activities in
different buying
situations

2.4

Propose new
positioning for a
selected
product/service

2.5

Merit grades awarded

M1

M2

M3

Distinction grades awarded

D1

D2

D3

Marketing Environment Assignment 1 QCF Sept 2012

Internal
Verification

Rework

2


Outcome

Evidence for the
criteria

Feedback

Assessor’s decision
First
attempt

Internal
Verification

Rework

Assignment
( ) Well-structured; Reference is done properly / is not done properly /should be done (if any)
Overall, you’ve passed / referral………outcomes
Areas for improvement:

 To achieve a pass, you must meet all the requirements defined in the assessment criteria.
 To achieve a merit, you must identify and apply strategies to find appropriate solutions and
appropriate methods/techniques as well as to present and communicate appropriate findings.
 To achieve a distinction, you must use critical reflection to evaluate own work and justify
valid conclusions as well as to take responsibility for managing and organizing activities


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Marketing Environment Assignment 1 QCF Sept 2012

3


A REPORT ON MARKETING STRATEGIES OF GATORADE IN VIETNAM
Title Page

Prepared for: Professor Doti Chee
Marketing Principles
BTEC HND in Business (Finance)
Banking Academy, Hanoi
Submitted on November 19, 2012

Prepared by: Trần Quyết Thắng - Joe
Class: F05-B
Registration No.: ITP- F05-194

Marketing Environment Assignment 1 QCF Sept 2012

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A REPORT ON MARKETING STRATEGIES OF GATORADE IN VIETNAM
Executive summary

The report aims to find the business environment of Vietnam that affects the development of
Gatorade so that Gatorade can prepare and bring the efficient strategies and plans to introduce
and sell the products of Gatorade such as G2, G Powder, 01 Prime… in order to satisfy
Vietnam customers.
This report shows the factors which influence the marketing decisions of Gatorade in
Vietnam market. It includes several analyses about sources of PepsiCo, the competitors of
Gatorade in Vietnam market, especially Vietnam customers to find out what they want and
need in order to delight them. Additionally, this report presents some Vietnam policies,
economy, society and technologies which affect Gatorade directly. Furthermore, the
segments, targeting strategy and the new positioning of Gatorade also are introduced and
evaluated.
It is clear that Vietnam market is a potential market, especially after Vietnam joined WTO in
2007 and opens the market for foreign companies like PepsiCo. There are many attractive
policies and chances for Gatorade to grow and dominate Vietnam market.
The following recommendations have been made:


Changing the flavors of Gatorade to suit to Vietnam customers’ taste



Making the product prices become lower



Expanding the distribution network to make products always available



Creating exciting advertisements and bringing the attractive promotions to Vietnam
customers

Marketing Environment Assignment 1 QCF Sept 2012

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Marketing Environment Assignment 1 QCF Sept 2012

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Introduction
1. Background
PepsiCo is the second biggest beverage company in the world and it has many wellknown brands. One of them is Gatorade that is the famous sport drink brand. Gatorade
also is the official sports drink of the NBA and WNBA, Major League Baseball,
Major League Soccer, more than 70 Division I colleges, and numerous other elite and
professional organizations and teams (Brands, n.d.). Gatorade was born in the lab to
help Gator players add the water, sugar, electrolyte… so that they can improve the
health and have good result.
Now, Gatorade is available in more than 80 countries and has many series such as G
Series 01 Prime, G Series 02 Perform, G Series 03 Cover… with various flavors like
orange, berry, etc. However, Gatorade is still a new brand in Vietnam market.
2. Aims
The purpose of this report is to find out the factors which influence marketing
decisions and bring the segment, targeting strategy and positioning strategy for
Gatorade to be able to develop in Vietnam market.
3. Scope of this report
This report finds out the advantages which Gatorade has to grow in Vietnam
especially the big cities like Hanoi, Ho Chi Minh City, and Da Nang…

Marketing Environment Assignment 1 QCF Sept 2012

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Outcome 1.1: Explain the various elements of the marketing process

1.1.1. The various elements of marketing process

S it u a ti o n
Situation
a
n a lys is
analysis
M
a rke ti n g
Marketing
st
ra te g y
strategy
M
a rke ti n g m
ix
Marketing
mix
a
nd d
icis io n
and
dicision
Im
p le m e n ta ti o n
Implementation
&
o n t ro l
& C
Control
1.1.2. Situation analysis
Situation analysis is the first step of marketing process. It is the way that company use
to find out what they do and what could make customers satisfied. Besides, based on
this analysis the companies would understand their abilities to operate. The situation
analysis focuses on the board trend, micro and macro environment.
1.1.2.1. Company
PepsiCo is the world’s second largest food and beverage business so it has
many experiences and the knowledge to prepare the marketing projects and
strategies to develop the new products in the new market like Gatorade in
Vietnam. Besides, PepsiCo has a significant scale. It means that to conduct the
marketing plans for Gatorade in Vietnam is not difficult.
PepsiCo penetrated Vietnam market early so PepsiCo can find out the flavors
of Gatorade that satisfy Vietnam customers. Additionally, PepsiCo has a huge
distribution from south to north.
PepsiCo has the firm infrastructure with six plants across Vietnam. This is an
advantage for Gatorade to manufacture products, design the styles…which suit
to Vietnam customers.

1.1.2.2. Customers
Marketing Environment Assignment 1 QCF Sept 2012

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Gatorade has to find out the hobbies, behavior, lifestyle, characters… of
Vietnam customers to design its products with different styles, flavors and
give the reasonable promotions and advertisements to them.
Vietnamese has medium income so Gatorade has to expand the distribution to
make products available and decrease the product prices.
1.1.2.3. Competitors
There are some Vietnam brands that make energy drinks like Number 1 of Tan
Hiep Phat, Rong Do of URC but Vietnam market have not has specific
products to help athletes rehydrate nutrition like Gatorade. Gatorade focuses
on advertising the functions to show people what Gatorade’s products could
help customers.
1.1.2.4. PEST analysis
Political analysis: There are many policies which impact on Gatorade like
industry policy, competition policy and welfare policy.
Economic analysis: The Vietnam economy status is high inflation. It affects
the Gatorade’s price.
Social analysis: Vietnamese life has changed and the standard of living is
higher.
Technological analysis: PepsiCo has produced the beverages for a long time so
they have high technology. Additionally, the development of internet makes
the contact to customers easily.
1.1.2.5. SWOT analysis

Strengths
Having nice styles and various flavors

Weaknesses
Vietnam customers do not know about

that customers really want
Opportunities
Vietnam joined WTO in 2007 and have

the appearance of Gatorade
Threats
Vietnam customers do not distinguish

more preference for foreign companies

sport drinks and energy drinks

running business
There is no Vietnam brands produce sport
drinks
Table 1: The SWOT analysis
1.1.3. Marketing strategy
1.1.3.1. Marketing segmentation

Marketing Environment Assignment 1 QCF Sept 2012

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Classify the market into different groups of customers to find out what they
need and want in order to provide customers specific products and applying
particular marketing mix. The main aim of it is attracting more customers.
1.1.3.2. Target market selection
Gatorade has to choose the target marketing to focus on producing the various
products or distributing them to customers effectively such as athletes,
students, sport players…
1.1.4. Marketing mix decision
1.1.4.1. Product
Core product: Sport drinks
Actual product: flavors, styles and functions
Augmented product: transferring products to retail stores
1.1.4.2. Price
Fixed cost: building plants, purchasing equipment, salaries
Variable cost: VND 37,000/a 335ml bottle
Competitor price: VND 8 – 15,000
Customers’ perception: VND 10 – 12,000
1.1.4.3. Place
Distribute the products to retail stores, supermarkets…
1.1.4.4. Promotion
Advertising: mass media, internet, newspapers
Promotion: discount, give gifts or free equipment like shelve, fridges
1.1.5. Implementation & Control
Gatorade conducts some programs to introduce products or finance for the sport
tournaments.
Focusing on salespeople to find the demands of customers

Marketing Environment Assignment 1 QCF Sept 2012

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Outcome 1.2: Evaluate the costs and benefits of marketing
orientation of a selected organization.
1.2.1. Marketing concepts
1.2.1.1. Production: the way businesses try to make their products available and high
affordable. It focuses on price and distribution.
1.2.1.2. Product: the way businesses improve their products to supply customers the
most quality performance and innovative features.
1.2.1.3. Selling: the way businesses make customers purchase their products with large
scale selling and promotion effort.
1.2.1.4. Marketing: the way businesses try to find out what customers want and need.
It focuses on 4 Ps, namely product, price, place, promotion.
1.2.1.5. Societal marketing: the way businesses not only find out what customers want
and need but also society’s well-being.
1.2.2. Marketing orientation for PepsiCo
One of the guiding principles of PepsiCo is to care for their customers, consumers and
the world we live. PepsiCo said that “Our success depends on a thorough
understanding of our customers, consumers and communities.” (PepsiCo, n.d)
Therefore, marketing concept is chosen for analyzing for PepsiCo.

Marketing

Costs

concepts

Benefits

Evaluation

Doing a

Preparing and sending

With the new market like

Find out what

survey

surveys to customers

Vietnam, based on the result of

Vietnam

Collecting information surveys Gatorade could provide
the products which are suit and

customers want
and need

satisfy Vietnam customers
Finding out where people
usually buy drinks after playing
sports and building reasonable
distribution channels

Distribution

Contracting to retail

Make Gatorade’s products

Customers can

channels

stores

become more popular in

purchase easily

Marketing Environment Assignment 1 QCF Sept 2012

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Transferring products

Vietnam

because of the

Delivery products directly to

availability of

customers

Gatorade

Customers

Building helpdesks

Make customers become

Cut down the

loyalty

Training employees

loyalty and save the costs to

costs for

Promoting customers

attract new customers

attracting new

with gifts or

customers (high

preferential cards

7-times compare
to retain

R&D

Advertising

Training employees

Delighted customers with high

customers)
Customers will be

with different skills

quality good

delighted and

Researching new

Accommodating products of

purchase

products

Gatorade to customers such as

Gatorade

Discovering and

Vietnam like sweet drinks so

innovate new

Gatorade will supply sweeter

technologies

products in Vietnam than others

Designing the contents Make Gatorade brand more

Give customers

and hiring the well-

popular in Vietnam

the basic

known people

Introducing the functions of

information about

Introducing the

products

Gatorade to

advertisements on TV,

Attractive customers with fun,

interest its

newspapers or other

action video about products

media mass
Preparing colorful
posters with
illustrative pictures
Table 2: The marketing concepts analysis

Outcome 2.1: Show the micro and macro environment
factors that influence marketing decisions.
Marketing Environment Assignment 1 QCF Sept 2012

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2.1.1. The definition of macro and micro environment
2.1.1.1. Macro environment is concerned with broad trends and patterns in society as a
whole which may affect all markets, but will be more relevant to some than
others. (Couse book, p 83)
2.1.1.2. Micro environment includes all factors which impact directly on a firm and its
activities in relation to a particular market in which it operates, and also any
internal aspects of organization which influence the development of a
marketing strategy. (Couse book, p 83)
2.1.2. Micro environment
2.1.2.1. Factors
Internal

Managers

stakeholders

Vietnam managers will

Gatorade produces

understand the tastes, behavior,

the styles, flavors

the interest and the demands of

and colors which

vietnam customers

Vietnam customers
prefer

Employees

The salaries for vietnam

The price will be

workers are cheaper than other

decreased

countries like Europe, USA…
Connected

Customers

stakeholders

Vietnam customers like sweet

Gatorade designs

flavors and colorful bottles.

the colorful plastic
bottles with many
flavors and make it
sweeter

External

Community

stakeholders

Do not allow Gatorade harm or

Gatorade uses the

damage the environment
Gatorade helps vietnam turn

recycle plastic to

over the difficulty

protect
environment

Table 3: The internal factors
2.1.2.2. SWOT analysis
Strength
 Gatorade has a lot of different flavors 
change the flavors of products in
vietnam so it can suit to customers
Marketing Environment Assignment 1 QCF Sept 2012

Weakness
 Gatorade is the not well-known brand in
vietnam market
 Gatorade needs to advertisements and
13


 PepsiCo has large distribution network

hold more promotion for customers
 The price of Gatorade is higher than

across vietnam
 delivery Gatorade to customers
directly to cut down the price
 PepsiCo has six big plants in vietnam
 create many types of Gatorade’s

other energy drinks
 using vietnam ingredients to reduce
the price
 The distribution of Gatorade is very
small

bottle and reduce price

 The price of Gatorade is very high

Table 4: The SW analysis
2.1.3. Macro environment
2.1.3.1. Factors
Customers have less money to consume
A tax increase

so Gatorade need to cut down the prices
and give more promotion to encourage
customers purchase goods
Customers will have more money to

The minimum wage increase
Political

spend so Gatorade needs to make
products available to supply the demand
of customers
With these policies, Gatorade can have
difficulty

The tight fiscal and monetary
policy

because

customers’

it

expenditure

makes

the

smaller.

Gatorade needs to give some discount,
promotion…to encourage customers buy
products

Economical

Customers do not have money to use so
High unemployment rate

Low inflation rate

the

demands

for

consuming

fall.

Gatorade could focus on promoting to
sell products
The real price will reduce and the
expenditure on consuming product will
also increase. Gatorade deliveries more

Marketing Environment Assignment 1 QCF Sept 2012

14


products
promotion

to

customers
programs

and
to

hold
interest

customers.
PepsiCo would borrow more to improve
An interest rate decrease

the product, distribution and making
advertising.
Customers care more about health so

Attitudes

Gatorade

provide

more

low

sugar

products
Vietnamese like doing outside activities
Social

Leisure interests

so Gatorade provides specific products
for different functions
Young Vietnamese prefer to eat fast food

Culture

Cost structure decrease
Recent technological
Technological

developments
Technology's impact on product
offering

and carbonated drinks, PepsiCo create
more flavor to satisfy customers
Produce more products and reduce the
costs of Gatorade in vietnam
Gatorade need to change technology to
suit to quality requirements for its
products
PepsiCo update the new technology
frequently to have healthier products for
customers

Table 4: PEST analysis

2.1.1.1. SWOT analysis
Opportunities

Threats

Vietnam joined WTO in 2007 so there are The whole economy has gone down and
several preference and supportive policies PepsiCo is no exception. Thus Gatorade has
for foreign companies like PepsiCo. These to decrease the price and promote more
could help the price lower
Vietnam market do not have the specific
products for athletes and sport players so
Gatorade could intensify advertising about

Marketing Environment Assignment 1 QCF Sept 2012

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its functions or give people trial
Vietnam has young general population with
high percentage of male from 15 to 30. This
is an active group so Gatorade needs to
focus on this group by advertising more for
it, giving the suitable promotion, distributing
products near schools, stadiums…

Table 5: OT analysis

Marketing Environment Assignment 1 QCF Sept 2012

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Appendices – Micro and macro environment
1. Managers
95% of management positions are held by Vietnamese employees (PepsiCo, 2011).
Vietnam managers can understand what Vietnam customers want and need wieldier
than other types of managers. As the result, Vietnam customers can be easy to satisfy
with the styles, flavors … of Gatorade.
2. Employees
From October 1 to the end of December 31, 2012, minimum wage rises to VND 1.4-2
million (approximately $70-100) (anon, 2012). Although it increases, it is very small
compare to other countries. This is the reason explain why PepsiCo invests more to
Vietnam to build strong infrastructures in Vietnam to manufacture. If Gatorade can
take advantage of this chance, it can improve the productivity and reduce the price.
3. Community
In 2010, PepsiCo invested $250 million in Vietnam over the next three years to create
jobs (PepsiCo, 2010). This helps Vietnam decrease the unemployment rate.
4. Gatorade has many kinds of flavors like lemon, orange, berry… It makes Gatorade
become various and give customers a lot of choices.
5. PepsiCo appeared in Vietnam early in 1994 so they built the distribution network
across Vietnam so Gatorade can use this distribution to delivery its products to
customers and make it is always available in Vietnam market.
6. PepsiCo has 6 plants in Vietnam with high capacity and Gatorade can apply this to
produce products in Vietnam. It is easier for Gatorade to have more kinds and transfer
to the retail stores. Besides, Gatorade cut down the product prices because of import
tax.
7. Gatorade has been in Vietnam market but it is still a new name. Vietnamese customers
seem not to realize the existence of Gatorade. It means that the chances for Vietnam
customers purchase Gatorade is very low. To solute this problem, Gatorade has to
expand the distribution networks for its products lager and make customers have the
information about Gatorade.
8. Gatorade has a high price than other energy companies. One bottle/ 335ml has the
price is VND 37,000 (nearly $2) while others fluctuates from VND 8-10,000
(approximately $0.5). It is nearly one-fourth. Additionally, the average income per
person is not high; it is only about 3.2 million ($150) so it is very difficult for them to
purchase a high price product like Gatorade. Gatorade needs to find the ways to cut
down the price and promote more to attract the customers.
Marketing Environment Assignment 1 QCF Sept 2012

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9. In the last five years, Vietnam has the highest ratios of tax revenue to GDP in the
region and in comparison with other emerging Asian countries at 20% while in China
they are 17.3%, 15.5% Thailand and Malaysia, Indonesia 12.1% and India just 7.8%.
In 2010 and 2011, Vietnam’s tax rate continued to rise from 22.6% to 24.4% (Bich
Diep, 2012). The tax increase means that a part of money that employees earned has
to pay tax. The money used to consume will decrease so people will not buy high
price products like Gatorade. Thus, Gatorade needs to give more strategies to satisfy
and encourage customers expenditure on consume products.
10. Vietnam uses the tightened fiscal and monetary so there are many troubles happening.
These policies have huge impact on interest rate make it higher. It means that it is
very difficult for Gatorade to develop. To make it become easier, Gatorade has to
prepare reasonable strategies to attract customers.
11. The unemployment rate intends to increase significantly and centre in the urban areas.
The unemployment rate was 4.1% in 2009 and increased to 5.2% in 2010.
Furthermore, this rate in urban areas was 7.8%; nearly 2 two-times in rural areas
(4.3%) (Dang & Pham, 2012). The distribution focuses on the big cities but there are
many people who are unemployment so they do not have much money to use.
Gatorade needs to reduce the price and make it suitable to customers.
12.

Vietnam’s inflation slowed to 17.27% for a fifth month in January, giving Central
Bank more room to cut interest rates. Central bank cut its repurchase rate to 14
percent from 15 percent in July last year after a series of increases to tackle inflation.
Additionally, Consumer-price growth in 2012 may be less than 12 percent at worst
and 8.5 percent to 9 percent in a “good” scenario (Bloomberg News, 2012). It is a
good view for Gatorade to attract customers and sell more products.

Marketing Environment Assignment 1 QCF Sept 2012

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Outcome 2.2: Propose segmentation criteria to be used for
products in different markets
2.2.1. The definition of segmentation
The process of defining and subdividing a large homogenous market into clearly
identifiable segments having
Its objective is

similar needs, wants,

to design a marketing

or demand characteristics.

mix that

precisely

matches

the expectations of customers in the targeted segment (BusinessDictionary.com, n.d.).
2.2.2. The marketing segmentation for Gatorade in Vietnam market
Marketing segmentations play an important role in the marketing strategies. Gatorade
needs to divide the demands of various types of customers into segments and
Gatorade chooses a segment that it has the most strengths. The segmentation is based
on geographic, demographic, psychographic and behavioral and two types which are
benefit and usage.
2.2.3. The customer market
Recently, Gatorade is a strange brand in Vietnam. To develop it, Gatorade needs to
segment the market to take more effort, resources, and campaigns in order to have
better matching of customers need, enhance profits, retain more customers, etc.
Gatorade is a new brand in Vietnam so the cost of it is very high – VND 37,000/a
335ml bottle (nearly $1.5). To supply the Gatorade’s products to Vietnam customers
effectively, Gatorade could focus on high income group people at the age 23-35 in the
big cities like Hanoi, Da Nang, Ho Chi Minh City...
According to World Bank, Vietnam transformed from one of the poorest countries in
the world to a lower middle income country within a quarter of a century with per
capita income of $1,130 (approximately 24 million VND) by the end of 2010.
However it was separated to over 80 million Vietnamese so people who had more
than $1,130 are also distributed in the big cities. Besides, with higher income, people
really care about health and they would do more exercise, have more outdoor
activities to become stronger so they tend to purchase the healthier products like
Gatorade.
This group are people who use internet frequently so it is easy for Gatorade to make
the online advertisement and online services to receive orders or give customers
information.
The size of this segment is not too small or too large for Gatorade develops products
and sport drinks are new things in Vietnam market. Therefore, Gatorade could have
Marketing Environment Assignment 1 QCF Sept 2012

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marketing campaigns to introduce and make customers with high income purchase its
high quality merchandises with high price.
Furthermore, this segment has distinct characteristics like employees, sport players,
etc. these makes Gatorade become easier to prepare the marketing campaigns to
introduce products.
There are many advantages from focusing this segment. This group is people who
have high knowledge so they can understand the different quality between Gatorade
and other Vietnam brand drinks so they can purchase it. Moreover, they seem not to
think too much about Gatorade’s price, they only concern on the functions of its.
Gatorade provides customers with bottles or cans to make them easy to use because
they are very busy working. Besides, the distribution channels like retail stores could
set near the gyms, sport centres so Gatorade is always available for customers.
Additionally, Gatorade can give the customers preference cards with various levels
which suit to the high income people.
2.2.4. The organizational market
Besides supplying products to individual customers, Gatorade also provides them to
organizations. Therefore, to make marketing become efficient, Gatorade needs
segment the organizational market. The specific characteristic of Gatorade is the sport
drinks so it should focus on geographic segmentation. It means Gatorade could take
more effort about the chains of retail stores near sport centres such as stadiums,
gyms…
There are many small or large sport centres and numerous stadiums in Vietnam and
attaching to these is retail stores which selling drinks to help people quench and
compensate for losing water, sugar or salt. After doing activities, Gatorade gives
customers more options with the different functions. Thus customers would choose
Gatorade’s products to use.
Furthermore, Gatorade can prepare posters with active images of famous Vietnam
sport players to introduce various products in stores and sport centres. People can
easily be attracted and remember this brand. As a result, they can try it at retail stores
immediately to find out its flavour and its influence.
This is a potential segment for Gatorade in the organizational market because the
main function of Gatorade’s products is to improve the healthier for sport players to
help them have a high performance. To make products become more popular,
Gatorade could give the discount for retail stores or provide them some free coolingequipment.
Marketing Environment Assignment 1 QCF Sept 2012

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Outcome 2.3: Choose a targeting strategy for a selected
product / service
2.3.1. The definition of targeting strategy
The targeting strategy is evaluation and selection of appropriate segments and
development of appropriate offers (Sensacom, n.d.)
There are three types of targeting strategy. They are:


Undifferent marketing



Concentrate marketing



Different marketing

2.3.2. The targeting strategy for Gatorade
Before engaging in marketing campaigns and promotions Gatorade need to decide
who they would like to supply its products. This involves analysing and segmenting
Vietnam market into different parts. After that, Gatorade can adopt the strategies to
target customers and with Gatorade could use concentrated marketing for both
customer market and organizational market. It means that Gatorade focuses on one
segment of market and develops a product that satisfies for the needs of individuals or
groups. To using strategies efficiently, Gatorade need to consider some factors about
company, competitors… carefully.
Gatorade is the new sport drink in Vietnam and it now is in the introduction stage so
Gatorade focuses on a segment of customer-high income group and organization- the
retail stores near gyms, sport centres…to make Gatorade become the well-known
brand. Besides, Gatorade has specific functions to help athletes or people who are
active. This is an important factor which Gatorade can take advantage of it to supply
the demands of customers.
PepsiCo has 6 plants in Vietnam with high capacity. This is a good condition for
Gatorade to produce products which are suitable to high income customer segment
and supply and support the retail stores.
Gatorade has more than 50 flavors around the world and each flavour suits to the taste
of specific area. It seems to be not difficult for Gatorade to make new flavors for
Vietnam customers like combining with tea. Besides, Gatorade has specific products
with particular function to improve the health.
Gatorade is in the first stage of product’s life cycle so it does not really care about the
profit because in this stage, Gatorade has to invest more for advertising and promotion
to attract customers.
Marketing Environment Assignment 1 QCF Sept 2012

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In Vietnam, there are only some energy brands but they do not focus on the drinks for
sport players like Gatorade so this is a potential market. Moreover, the direct
competitor of Gatorade is PowerAde of Coca-Cola has not arrived in Vietnam.
However, it could be difficult for Gatorade to find the reasonable suppliers.

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Outcome 2.4: Demonstrate how buyer behaviour affects
marketing activities in different buying situations
2.4.1. The different between organizational and consumer buying behaviour
The basic different thing between organizational and consumer buying behaviour is
the decision making unit. It means that in consumer market the decisions are made
individually based on the hobbies, lifestyle,… while in the organization the decisions
are made by the numerous people from various functional areas.
2.4.2. The consumer market
In the low involvement purchase, customers do not have more recognition about
Gatorade; they only purchase it like other drinks. This is the main reason why
customers also do not need find out the information about the functions, taste or style
before buying. Therefore, Gatorade could introduce products though different ways to
make customers purchase its products regularly.
In the high involve purchase, customers realize that Gatorade is a famous brand in the
world and are the official sport drinks of NBA and WNBA so they buy it to try.
Before that, customers would find out about the styles, tastes, the prices of Gatorade
in the Vietnam market through mass media. When having the basic information about
Gatorade, customers could compare it to the other energy drinks to find the difference
between various products. However, customers’ decisions could be changed if they
see the Gatorade price is much higher than other drinks. Finally, if customers feel
delighted, they will purchase Gatorade frequently. It means that Gatorade could hold
customers’ service.
In limited problem solving, customers have several experiences about Gatorade so
they do not need to do many things before purchasing. Gatorade could give more
promotion to attract customers.
All of customer buying behaviour can be affected by culture, social, personal and
psychological.
2.4.3. Organizational market
In low involvement purchase, some retailers want to distribute Gatorade so this is a
challenge to them because Gatorade is a new brand and do not have several Vietnam
customers. Retailers need to evaluate the cost of Gatorade with other drinks carefully.
To help these retailers, Gatorade would provide them free fridges and selves to exhibit
products.

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In high involvement purchase, the organizations especially the retail stores, they need
to find out problems which can happen when distributing Gatorade. After that, the
organizations could search information about Gatorade’s products to have an effective
way to solve these problems. An important stage is evaluation the advantages and
disadvantages when supplying Gatorade or other brands. If organizations realize the
benefit to gain profit they will chose Gatorade.
In limited problem solving, the organizations know exactly what they have to deal so
they do not need to research too much. It means that Gatorade could some discount to
encourage them.
There are many influences from environmental, organizational, interpersonal and
individual to organizational market.
To sum up, buying behaviour has a huge impact on marketing decisions. However
there are many internal and external affect both customer buying behaviour and
organizational buying behaviour.

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Appendices - The buyer behaviour
1. The customer market
The customers’ buying behaviour is affected by different factors. For example, people
have high income; they will know the benefit of Gatorade and purchase it. Vietnamese
people like using sweet taste so they do not tend to purchase if the products are not
sweet. Additionally, in a family if the parents do not like doing exercise, their
children could like them and they do not need Gatorade to improve the health when
acting. Moreover, people have high statuses in the society seem not to use the low
price products. Personal factors also have huge influence to buyer behaviour. For
instance, an office employee do not act to much so they do need the products to
recover the loss of sugar, salt… in the body oppose to teenager, they really like drink
the energy drinks.
2. The organizational market
The same as customer’s buying behaviour; the organization also is influence by
various factors such as business environment, organization, interpersonal, individual.
For example, if Vietnam government bans using any additives that Gatorade has, it
will be meet difficulty to change ingredient, flavour of products. Besides, if Gatorade
does not have right vision, mission or objective they can provide the efficient
strategies to develop products.

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