vietnam's soft drink consumer behavior

Consumer Behavior Survey

SOFT DRINK MARKET

Contents

Industry overview

Survey results

Executive summary

General informationabout the survey

2

EXECUTIVE SUMMARY

3

[1] Brand awareness Coca-Cola is the brand with the highest level of brand awareness, followed by Pepsi

and Zero Degree Green tea. Coca-Cola, Pepsi and C2 Green tea are three most popular brands.

Tea brands such as Zero Degree Green tea, C2 Green tea and Dr.Thanh tea haverelatively high proportions of consumers.

Coca-Cola has the highest proportion of customers using products in the last month(34.5%), significantly higher than those of other brands.

[2] Customer satisfaction Coca-Cola has the highest level of consumer satisfaction, followed by Pepsi Zero Degree Green tea has the highest proportion of satisfied consumers among tea

brands

4

[3] Consuming habits Almost respondents prefer carbonated soft drinks, 81.9%

Buy in single bottles is the most preferred form of purchasing, 56% Plastic bottles packaging with the volume of 350 ml to under 1 liter is the

most pervasive, 45.2%

[4] Factors influencing customers’ purchase decisions Brand, habits and hobbies and products quality mainly influence customers’

purchase decisions.

Men are mainly influenced by brand and products quality.

Women are mainly influenced by habits and hobbies.

EXECUTIVE SUMMARY

5

[5] Channels to access product informationGrocery stores are the most common channel to buy products (62.7%), the

second most common channel is supermarkets, (40.3%)

Distance and location, reputation and the variety of products mainly influence consumers’ shopping location choices.

TV and word of mouth are the most popular channels to access product information

[6] Characteristics of the household members consuming soft drinks the mostMen consume soft drinks more often than Women do, 60.5%

Respondents under 30 years old consume soft drinks the most, 70%

EXECUTIVE SUMMARY

Contents

Industry overview

Survey results

Executive summary


6

135Manufacturing

enterprises

2216.13million liters

Market volume

2014

8.44%Growth

rate2015 - 2019

13.48%Growth

rate 2011 - 2014

85trillion VND

Total industry

sales2015

7

NON-ALCOHOLIC BEVERAGES INDUSTRY OVERVIEW

2020: 6.8 billion liters2025: 9.5 billion liters

Output targets

Source: Vietnam Association of Wine - Beer - BeveragesMinistry of Industry and Trade – The development plan of the beer, wine, soft drinks of Vietnam to 2025 and vision to 2035

Suntory Pepsico Vietnam Beverage(IBC)

Tan Hiep Phat Beverage group

Coca Cola beverages Vietnam ltd.

Interfood shareholding compary

Red Bull Vietnam ltd.

La Vie Co. ltd. Chuong Duong beverages joint stock company

Vinh Hao mineral water joint stock company

CKL Co. ltd

LEADING ENTERPRISES IN NON-ALCOHOLIC BEVERAGES INDUSTRY

Tribeco Co. ltd.

9

ENTERPRISES WITH THE LARGEST MARKET SHARES

Pepsico and Coca-Cola have the largest market

shares of carbonated soft drinks market.

Tan Hiep Phat has the largest market share of non-

carbonated soft drinks market.

Contents

Industry overview

Survey results

Executive summary


10

SURVEY RESULTS

• BRAND AWARENESS AND CUSTOMER SATISFACTION• CHARACTERISTICS OF HOUSEHOLD MEMBERS CONSUMING SOFT

DRINKS THE MOST• CONSUMING HABITS• FACTORS INFLUENCING CUSTOMERS’ BUYING DECISIONS• SHOPPING LOCATIONS AND FACTORS INFLUENCING CUSTOMERS’

SHOPPING LOCATION CHOICES • CHANNELS TO ACCESS PRODUCT INFORMATION• BRAND LOYALTY• PROMOTION FORMS

BRAND AWARENESS

12

Brand recall (%)

84.5 42.5 25 20.5 20 14 9.5 5.5 4.5 2 1

Brand recognition

(%)100 98.2 94 98.1 92.5 97 82.8 78.3 92.6 60.7 53.5

CocaCola and Pepsi are the carbonated beverage brands with the highest levels of brand recall and brand recognition.

C2 Green tea, Zero Degree Green tea and Dr.Thanh tea are the non-carbonated beverage brands with the highest levels of brand recognition and brand recall.

BRAND AWARENESS AND CUSTOMER SATISFACTION

BRAND AWARENESS – BY GENDER

13

60.7

62.5

76.8

82.1

92.8

94.6

96.4

98.2

100

100

100

51

61.4

80.7

85.5

94.5

92.4

95.2

98.6

96.5

98.6

100

Unit:%


Coca-Cola

Pepsi

Zero Degree tea

C2 Tea

Fanta

Dr.Thanh tea

7 Up

Sprite

Mirinda

Ice+

C.C Lemon

Coca-Cola

Pepsi

Zero Degree tea

C2 Tea

Fanta

Dr.Thanh tea

7 Up

Sprite

Mirinda

Ice+

C.C Lemon

BRAND POPULARITY

14

98.5

92

90

87.5

83

79.5

71.5

67.5

57

41.5

33

Unit: %

The highest proportion of

consumers have consumed

Pepsi

Coca-Cola

C2 Green tea


BRAND POPULARITY – BY GENDER

15

41.1

44.6

66.1

67.9

75.0

76.8

85.7

89.3

89.3

92.9

100.0

29.7

40.7

53.8

67.6

81.4

69.7

82.1

86.9

90.3

91.7

97.9

Unit: %


Coca-Cola

Pepsi

C2 Tea

Zero Degree tea

Fanta

Dr.Thanh tea

7 Up

Sprite

Mirinda

Ice+

C.C Lemon

Coca-Cola

Pepsi

C2 Tea

Zero Degree tea

Fanta

Dr.Thanh tea

7 Up

Sprite

Mirinda

Ice+

C.C Lemon

CURRENT CONSUMPTION

16

34.5%

11%13.3%

14.7%

17.1%

9.3%10.8%

5.7%4.5%

9.6%

17.1%

Coca-Cola is the brand with

the highest proportion of

consumers using products in the

last month


CONSUMER SATISFACTION

17

Coca-Cola is the carbonated soft drink brand with the highest level of customer satisfaction, followed by PepsiZero Degree Green tea is the non-carbonated soft drink brand with the highest level of customer satisfaction

70.359.0

48.439.7 30.9

46.3

24.638.5

48.5 41.8 42.0

23.632.0

43.249,.

54.5

43.9

50.8

48.739.8

42.4 44.2

6.2 9.0 8.4 10.7 14.5 9.824.6

12.8 11.7 15.8 13.8

0%

20%

40%

60%

80%

100%

CocaCola Pepsi 7 Up Sprite Mirinda Fanta C.CLemon

Ice+ Trà xanh 0 độ

Trà C2 TràDr.Thanh

Hài lòng Bình thường Không hài lòng


Zero Degree Green tea

C2 Greentea

Dr.Thanhtea

Satisfied Neutral Dissatisfied

SURVEY RESULTS




GENDER AND AGE OF THE HOUSEHOLD MEMBERS CONSUMING SOFT DRINKS THE MOST

19

30.5%

60.5%

Men consume soft drinks more often

Respondents under 30 years old consume soft drinks the most

17.8%12%

Under 15 years old

15 – 30 years old

30 – 45 years old

Over 45 years old

31.4%

38.6%

SURVEY RESULTS




CONSUMING HABITS

21

Carbonated, 77,6% Non-carbonated, 22,4%

carbonated, 85,6%

Men consume carbonated soft drinks more than

Women do

Carbonated

81.9%

Non-carbonated

17.6%

Carbonated soft

drinks are more popular

CONSUMING HABITS

Non-carbonated, 14,4%

QUANTITY

Buy in packs35%

Buy in bottles

56%

Buy in crates9%

22

CONSUMING HABITS

Most of the respondents buy in bottles

VOLUME - PACKAGING

23

Plastic bottles: 76.4%

Aluminum cans: 20.6%

Glass bottles: 2%

1 liter and more

28.6%

Under 350 ml

26.1%

From 350ml to under 1 liter

45.2%

CONSUMING HABITS

SURVEY RESULTS




FACTORS INFLUENCING CUSTOMERS’ BUYING DECISIONS

25

Brand

55.4%Habits and hobbies

48.8%Product quality

47.3%

Price

21.4%

Pervasiveness of counterfeited products

17.4%

Popularity

13.4%

Design, packaging

11.9%

Easy to access

5.0%

Promotions

2.0%

Origin

38.3%

Size, capacity

6.0%


FACTORS INFLUENCING CUSTOMERS’ BUYING DECISIONS – BY GENDER

26

1. Brand2. Product

quality

1. Habits and hobbies

2. Brand3. Product

quality


3,6

3,6

7,1

10,7

16,1

25,0

28,6

33,9

37,5

50,0

55,4

Promotions

Easy to access

Size, capacity

Popularity

Design, packaging

Price

Pervasiveness of counterfeited

Habits and hobbies

Origin

Product quality

Brand

1,4

5,5

5,5

10,3

13,1

14,5

20,0

38,6

46,2

49,0

54,5

Promotions

Size, capacity

Easy to access

Design, packaging


Popularity

Price

Origin

Product quality

Brand

Habits and hobbies

Respondents with income under 10 million VND are often influenced by habits and hobbies and product quality

Respondents with income equal to 10 million VND or more are mainly influenced by brand

27

Factors <= 10 million VND (%) 10 - 20 million VND (%) >= 20 million VND (%)

Habits and hobbies 54.4 47.9 42.5

Product quality 52.6 46.9 45.0

Brand 38.6 52.1 62.5

Origin 31.6 40.6 42.5

Price 19.3 25.0 20.0


products

15.8 18.8 17.5

Design, packaging 14.0 8.3 17.5

Popularity 12.3 14.6 15.0

Easy to access 12.3 2.1 2.5

Size, capacity 3.5 5.2 12.5

Promotions 0.0 3.1 2.5

FACTORS INFLUENCING CUSTOMERS’ BUYING DECISIONS– BY INCOME


SURVEY RESULTS

• BRAND AWARENESS AND CUSTOMER SATISFACTIONS• CHARACTERISTICS OF HOUSEHOLD MEMBERS CONSUMING SOFT



Grocery stores are the most popular channel to buy products, 62.7%

the second most popular channel is supermarkets 40.3%

29

SHOPPING LOCATIONS

SHOPPING LOCATIONS AND FACTORS INFLUENCING CUSTOMERS’ SHOPPING LOCATION CHOICES

40,325,4

4,5

62,7

36,8

27,8

7,9

22,9

14,4

15,9

22,9

7,4

5,0

8,5

30,9

64,7

7,0

94,0

0%

20%

40%

60%

80%

100%

Supermarkets ConvenienceStores

Markets Grocery Stores Online purchasing

Ussually Sometimes Seldomly Never

FACTORS INFLUENCING CUSTOMERS’ SHOPPING LOCATION CHOICES

30

77.1%71.1%

48.8%

25.4%

15.9% 13.9%6.5%

Địa điểm, khoảng cách

thuận tiện khi mua

Uy tín nơi bán Sự đa dạng về sản phẩm

Giá thấp Phương thức thanh toán tiện

lợi

Các chương trình khuyến

mại

Dịch vụ vận chuyển tiện lợi

Distance and location

Reputation Variety of products

Price Means of payment

Promotion Delivery service

Distance and location, reputation and variety of products mainly influence consumers’

shopping location choices


FACTORS INFLUENCING CUSTOMERS’ SHOPPING LOCATION CHOICES- BY GENDER

31

8.9

12.5

19.6

26.8

51.8

71.4

75

15.9

4.1

14.5

24.8

47.6

79.3

69.7

0 20 40 60 80 100

Các chương trình khuyến mại

Dịch vụ vận chuyển tiện lợi

Phương thức thanh toán tiện lợi

Giá thấp

Sự đa dạng về sản phẩm

Địa điểm, khoảng cách thuận tiện khi mua

Uy tín nơi bán

%

Nữ

Nam

Distance and location mainly

influence women’s shopping location

choices

Reputation mainly influences men’s shopping location

choices


Reputation

Distance and location

Variety of products

Price

Means of payment

Delivery service

Promotions

Women

Men

SURVEY RESULTS



SHOPPING LOCATION CHOICES• CHANNELS TO ACCESS PRODUCT INFORMATION• BRAND LOYALTY• PROMOTION FORMS

CHANNELS TO ACCESS PRODUCT INFORMATION

33

Tivi, đài93%

Người thân, bạn bè62%

Internet

53.7%

Salesmen

36.3%Newspapers, magazines

35.8%

Leaflets, posters22.9%

Advertisements on bus22.4%

Banners in public18.4%

Forums 11.4%

Cultural, musical event sponsorship

18.9%

TV and radio

93%Relatives, friends

62%

Advertisements in cinemas12.9%

TV and radio is the most popular channel to access product information

Word of mouth is a relatively popular channel


CHANNELS TO ACCESS PRODUCT INFORMATION – BY AGE

34

Channels<=30

years old31-40

years old41-55

years oldOver 55

years old

TV and radio 92.3 92.9 92.9 94.1

Internet 63.5 64.3 42.9 41.2

Relatives, friends 62.7 58.9 66.7 60.8

Salesmen 28.8 32.1 42.9 43.1

Newspapers, magazines 26.9 44.6 31.0 39.2

Banners in public 25.0 12.5 23.8 13.7

Leaflets and posters 23.1 16.1 28.6 25.5

Cultural, musical event sponsorship 21.2 17.9 19.0 17.6

Advertisements on bus 21.2 25.0 31.0 13.7

Advertisements in cinemas 19.2 19.6 11.9 0.0

Forums 11.5 10.7 9.5 13.7

Unit: %


SURVEY RESULTS




BRAND LOYALTY

36

Given bad news about the regularly consumed

products:

47%: verify information

4.5%: continue purchasing

Verify information

47%Stop

purchasing,

48.5%

Continue purchasing,

4.5%

BRAND LOYALTY

BRAND LOYALTY

37

Incase a shopping location runs out of the

regularly consumed products:

47.6%: buy at other locations

17.1% : wait until the products are available

Switch to other

products,

35.7%

Shop at other

locations,

47.6%

Wait until the products are

available,

17.1%

BRAND LOYALTY

38

C2 Green tea customers are the most loyal compared to other brands’ customersPepsi customers switch to other brands the most often compared to other brands’ customers

BRAND LOYALTY

BRAND LOYALTY

38,7

44,5

33,3

30,1

38,7

34,9

46,7

39,6

22,6

20,6

20,0

30,2

0% 20% 40% 60% 80% 100%

Switch to other brands Buy at other locations Wait until the product are available

SURVEY RESULTS



SHOPPING LOCATION CHOICES• CHANNELS TO ACCESS PRODUCT INFORMATION• BRAND LOYALTY• PROMOTION FORMS

PREFERRED PROMOTION FORMS – BY GENDER

40

43.1%

7.8%

21.6%

15.7%

11.8%

38.6%

22%25.8%

4.5%

9.1%

Tặng sản phẩm Tặng quà - sản phẩm khác

Giảm giá sản phẩm

Rút thăm trúng thưởng

Tặng phiếu mua hàng

Nam

Nữ

Bonus offers and Price discounts are preferred the

most by both genders

PROMOTIONS FORMS

Bonus offers Promotional gifts

Price discounts

Lucky draw Vouchers

Men

Women

PREFERRED PROMOTION FORMS-BY AGE

41

Promotion forms<=30

years old31-40

years old41-55

years oldOver 55

years old

Bonus offers 27.5 37.7 51.3 47.5

Promotional gifts 19.6 20.8 7.7 22.5

Price discounts 27.5 24.5 25.6 20

Lucky draw 17.6 9.4 0 0

Vouchers 7.8 7.6 15.4 10

Respondents over 40 years old prefer Bonus offers

Young respondents prefer promotional gifts and price discounts

Unit: %

PROMOTION FORMS

Contents

Industry overview

Survey results

Executive summary


42

GENERAL INFORMATION ABOUT THE SURVEY

Study sites: Hanoi

Survey period: July 2016

Sample size: 170 households

Sampling method: random sampling

Survey method: face to face interviews

43

Male28.0%

Female72.0%

Gender

16-3026.0%

31-40 28.0%

41-50 21.0%

51-60 16.0%

> 609.0%

Age

Occupations

GENERAL INFORMATION ABOUT RESPONDENTS

4.2

25

50

16.1

4.7

0

10

20

30

40

50

60

Dưới 5 triệu Từ 5 đến dưới 10

triệu

Từ 10 đến dưới 20

triệu

Từ 20 đến dưới 40

triệu

Từ 40 triệu trở lên

%Household monthly income

< 5 mnVND

From 20 to 40 mn VND

From 10 to 20 mnVND

From 5 to 10 mnVND

>=40 mnVND

44

25,5

22

19

16,5

10

4,52,5

Business men Housewives,retired people

Officers Unskilled,freelanceworkers

Service staffs Manufacturers Manager

retirees

45

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