Consumer Behavior Survey SOFT DRINK MARKET

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1 Consumer Behavior Survey SOFT DRINK MARKET

2 Contents Executive summary Industry overview Survey results General information about the survey 2

3 EXECUTIVE SUMMARY [1] Brand awareness Coca-Cola Pepsi and C2 Green tea are three brands with the highest levels of brand awareness,. Coca-Cola, Pepsi, C2 Green tea and Zero Degree Green tea are brands with the highest proportions of consumers have consumed. [2] Customer satisfaction Coca-Cola, Pepsi and Zero Degree Green tea have the highest level of consumer satisfaction 3

4 EXECUTIVE SUMMARY [3] Consuming habits Almost respondents prefer carbonated soft drinks Buy in single bottles is the most preferred form of purchasing. [4] Factors influencing customers purchase decisions Brand, habits and hobbies and products quality mainly influence customers purchase decisions. 4

5 EXECUTIVE SUMMARY [5] Channels to access product information Grocery stores are the most common channel to buy products (62.7%), the second most common channel is supermarkets, (40.3%) Factors 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 most Gender Age 5

6 Contents Executive summary Industry overview Survey results General information about the survey 6

7 NON-ALCOHOLIC BEVERAGES INDUSTRY OVERVIEW 85 trillion VND Total industry sales % Growth rate % Growth rate million liters Market volume Manufacturing enterprises Output targets 2020: 6.8 billion liters 2025: 9.5 billion liters Source: Vietnam Association of Wine - Beer - Beverages Ministry of Industry and Trade The development plan of the beer, wine, soft drinks of Vietnam to 2025 and vision to

8 LEADING ENTERPRISES IN NON-ALCOHOLIC BEVERAGES INDUSTRY Suntory Pepsico Vietnam Beverage(IBC) Tan Hiep Phat Beverage group Coca Cola beverages Vietnam ltd. Interfood shareholding compary Tribeco Co. ltd. Red Bull Vietnam ltd. La Vie Co. ltd. Chuong Duong beverages joint stock company Vinh Hao mineral water joint stock company CKL Co. ltd 8

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 noncarbonated soft drinks market. 9

10 Contents Executive summary Industry overview Survey results General information about the survey 10

11 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 11

12 BRAND AWARENESS BRAND AWARENESS AND CUSTOMER SATISFACTION Brands with the highest levels of brand awareness 12

13 BRAND AWARENESS AND CUSTOMER SATISFACTION BRAND AWARENESS BY GENDER 13

14 BRAND AWARENESS AND CUSTOMER SATISFACTION BRAND POPULARITY Brand B Brand A Brand C The highest proportion of consumers have consumed 14

15 BRAND AWARENESS AND CUSTOMER SATISFACTION BRAND POPULARITY BY GENDER 15

16 CURRENT CONSUMPTION BRAND AWARENESS AND CUSTOMER SATISFACTION The brand with the highest proportion of consumers using products in the last month 16

17 CONSUMER SATISFACTION BRAND AWARENESS AND CUSTOMER SATISFACTION 100% 80% 60% 40% 20% 0% Hài Satisfied lòng Bình Neutral thường Không Dissatisfied hài lòng 17

18 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 18

19 GENDER AND AGE OF THE HOUSEHOLD MEMBERS CONSUMING SOFT DRINKS THE MOST 19

20 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 20

21 CONSUMING HABITS CONSUMING HABITS Carbonated soft drinks are more popular Men consume carbonated soft drinks more than Women do 21

22 CONSUMING HABITS QUANTITY Buy in bottles XX% Buy in packs XX% Buy in crates XX% 22

23 VOLUME - PACKAGING CONSUMING HABITS 1 liter and more XX% From 350ml to under 1 liter XX% Plastic bottles: XX% Aluminum cans: XX% Glass bottles: XX% Under 350 ml XX% 23

24 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 24

25 FACTORS INFLUENCING CUSTOMERS BUYING DECISIONS FACTORS INFLUENCING CUSTOMERS BUYING DECISIONS Brand Habits and hobbies Product quality Origin Price Pervasiveness of counterfeited products Popularity Design, packaging Size, capacity Easy to access Promotions 25

26 FACTORS INFLUENCING CUSTOMERS BUYING DECISIONS BY GENDER FACTORS INFLUENCING CUSTOMERS BUYING DECISIONS 26

27 FACTORS INFLUENCING CUSTOMERS BUYING DECISIONS BY INCOME FACTORS INFLUENCING CUSTOMERS BUYING DECISIONS 27

28 SURVEY RESULTS BRAND AWARENESS AND CUSTOMER SATISFACTIONS 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 28

29 SHOPPING LOCATIONS SHOPPING LOCATIONS AND FACTORS INFLUENCING CUSTOMERS SHOPPING LOCATION CHOICES Grocery stores are the most popular channel to buy products, 62.7% the second most popular channel is supermarkets 40.3% 100% 80% 60% % 20% 0% 40.3 Supermarkets Convenience Stores Markets Grocery Stores Online purchasing Ussually Sometimes Seldomly Never 29

30 SHOPPING LOCATIONS AND FACTORS INFLUENCING CUSTOMERS SHOPPING LOCATION CHOICES FACTORS INFLUENCING CUSTOMERS SHOPPING LOCATION CHOICES XX% Distance and location XX% Price XX% Means of payment XX% Reputation XX% Promotions XX% Variety of products XX% Delivery service 30

31 SHOPPING LOCATIONS AND FACTORS INFLUENCING CUSTOMERS SHOPPING LOCATION CHOICES FACTORS INFLUENCING CUSTOMERS SHOPPING LOCATION CHOICES- BY GENDER 31

32 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 32

33 CHANNELS TO ACCESS PRODUCT INFORMATION CHANNELS TO ACCESS PRODUCT INFORMATION Tivi, đài TV and radio 93% Người thân, bạn bè Relatives, friends 62% Internet Salesmen Newspapers, magazines Leaflets, posters Advertisements on bus Cultural, musical event sponsorship Banners in public Advertisements in cinemas Forums 33

34 CHANNELS TO ACCESS PRODUCT INFORMATION CHANNELS TO ACCESS PRODUCT INFORMATION BY AGE 34

35 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 35

36 BRAND LOYALTY BRAND LOYALTY Given bad news about the regularly consumed products: % customers of brand A % customers of brand B % customers of brand C - Stop purchasing - Verify information 36

37 BRAND LOYALTY BRAND LOYALTY Incase a shopping location runs out of the regularly consumed products: % customers of brand A % customers of brand B % customers of brand C - Buy at other locations - Switch to other products 37

38 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 38

39 PROMOTIONS FORMS PREFERRED PROMOTION FORMS BY GENDER 43.1% 38.6% Bonus offers and Price discounts are preferred the most by both genders 7.8% 22% 25.8% 21.6% 15.7% 4.5% 11.8% 9.1% Nam Men Nữ Women Tặng sản phẩm Bonus offers Promotional gifts Tặng quà - sản phẩm khác Price discounts Giảm giá sản phẩm Lucky draw Rút thăm trúng thưởng Vouchers Tặng phiếu mua hàng 39

40 PROMOTION FORMS PREFERRED PROMOTION FORMS-BY AGE Respondents over 40 years old prefer Bonus offers Young respondents prefer promotional gifts and price discounts Promotion forms <=30 years old years old years old Over 55 years old Bonus offers Promotional gifts Price discounts Lucky draw Vouchers Unit: % 40

41 Contents Executive summary Industry overview Survey results General information about the survey 41

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 42

43 GENERAL INFORMATION ABOUT RESPONDENTS > % Gender Male 28.0% % Age % Female 72.0% % % Occupations % Household monthly income Business men Housewives, retired people retirees Officers Unskilled, freelance workers Service staffs Manufacturers Manager 0 Dưới < 5 mn 5 triệu From Từ 5 đến 5 to VND 10 dưới mn 10 VND triệu From Từ đến to 20 dưới mn 20 VND triệu Từ From 20 đến 20 to Từ >=40 triệu mn 40 dưới mn 40 VND VND trở lên triệu 43

44 CONTACT HEAD OFFICE - Hanoi BRANCH OFFICE Ho Chi Minh City Suite , 12 Trang Thi Street Hoan Kiem District, Hanoi Tel: (+84) Fax: (+84) th Floor, Unit D1502, The Manor Officetel, 91 Nguyen Huu Canh Street, Binh Thanh District, Ho Chi Minh City Tel : (84-8) Website: info@marketintello.com 44

45 MARKETINTELLO INTRODUCTION DEPOCEN DEPOCEN was founded in 2005 as an independent research organization, and has gained its reputation among the development and policy research and consultancy community with its wide range of research into socio-economic issues, sector specifics, macro-economic policies, business and investment environments, trade liberalization, governance, and the public sector. MARKETINTELLO MarketIntello was founded in 2015 as an initiative of DEPOCEN in response to the increasing requests for market studies and research from corporate clients. Strongly backed by DEPOCEN, the firm has a research team with full capacity of providing survey, comprehensive and intelligent information, analytic solutions, and industry research for both domestic and international clients Market research service MarketIntello is headquartered in Hanoi and has a branch in Ho Chi Minh City. We offer comprehensive market research packages on a national scale. MarketIntello is striving to become one of the leading research and consulting firms in Vietnam with the highest standard of market research services. 45

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