VietNam Business: Coca Cola

Showing posts with label Coca Cola. Show all posts

Tuesday, February 15, 2011

More Coca-Cola imported for profits boosting

Photo: Reuters

The US-based soft drink maker Coca-Cola in Vietnam and other retailers have spent around US$894,000 since the beginning of this year to import the drink to Vietnam to increase profits.

The imported soft drink, mostly Cambodian-made 1.5-liter PET bottles, is much cheaper than local products since the after-tax cost of each imported box of Coca-Cola is around VND80,000 ($4), half the retail price in the domestic market.

Although has three plants in the country, Coca-Cola Beverages Vietnam Co has spent over $99,500 on import 404,000 boxes of the soft drink this year, according to the Ho Chi Minh City Customs Department.

No Coca-Cola products were imported into Vietnam last year, according to Vietnam News Agency.

Since the consumption of the products in the local market was growing faster than expected, so several firms chose to import some to meet demand, said Martin Gil, general director of Indochina Coca-Cola.

The three Coca-Cola plants in the country produce a total of 608 million liters and the company is installing two more production chains in its factories in Hanoi, and upgrading facilities in HCMC and Danang.

“The imports will be fully stopped at the end of next year when we complete the upgrade of our production capacity,” Gil told Tuoi Tre.

Apart from Coca-Cola, the soft drink Red Bull is also imported from Thailand, despite the fact that it is also produced in Vietnam.

Soft drinks imported despite local products

Soft drink maker Coca-Cola has three factories in the country, but
around 900,000 USD has been spent since the beginning of this year to
import the drink, according to the HCM City Customs Department.

No Coca-Cola products were imported into Vietnam last year.

Martin Gil, general director of Indochina Coca-Cola and chief
representative of the brandname in Vietnam , said consumption of
their products in the local market was growing faster than expected, so
several firms chose to import some to meet demand.

The
three Coca-Cola plants in the country produce a total of 608 million
litres and the company is installing two more production chains in its
factories in Hanoi , and upgrading facilities in HCM City and Da
Nang .

"The imports will be fully stopped at the end of
next year when we complete improvement of our production capacity," Gil
told the Tuoi Tre (Youth) newspaper.

In fact, imported
soft drink is much cheaper than local products. Each imported box of
Coca-Cola costs around 80,000 VND (4USD) (after taxes), half the retail
price in the domestic market.

Apart from Coca-Cola, the
Red Bull energy drink is also imported from Thailand , despite the fact
that it is also produced in Vietnam./.

Saturday, September 11, 2010

Brand buzz secured by breakthrough ideas

Breakthrough creative ideas are more important in securing brand buzz than official sponsorship during an event like the football World Cup, according to a recent report by Cimigo, an independent team of marketing and brand research specialists.

Being an official sponsor of the World Cup was not necessarily sufficient to secure brand recognition, the 2010 Football World Cup Communication Landscape survey found.

Cimigo interviewed 1,000 Vietnamese in Ho Chi Minh City and Hanoi about what they saw, heard, felt, bought and consumed during the 19th FIFA World Cup in June and July. Cimigo engaged a community of 50 fans to understand the World Cup brand buzz.

"Many brands seek to be associated with the Football World Cup and tap into the extreme emotions and sense of belonging with fans, teams, nations and the world," Tom Skilbeck, director at Cimigo, said.

However, official sponsorship does not always guarantee that a brand will get all the buzz and association with the sport, the event or the fans.

"Among the top 10 brands creating a buzz and association with the World Cup, only four were official sponsors," he said.

The brands that created the most buzz around the Football World Cup included Coca-Cola, Pepsi, Tiger, Sony, Samsung, Heineken, Castrol, Nokia, Adidas and The Gioi Di Dong.

Of these, Coca-Cola, Sony, Castrol and Adidas were the only official sponsors.

"Advertising proved critical," Skilbeck said.

True buzz was generated by exciting live events, World Cup-related promotions and online contests.

For example, Pepsi's TV commercial propelled the association of the World Cup with Pepsi to second place behind Coca-Cola.

The Pepsi advert used a football star line-up, including Vietnam's first and third favorite players, Lionel Messi and Ricardo Izecson dos Santos Leite (Kaka), along with other stars including Thierry Henry, Frank Lampard and Didier Drogba.

Pepsi paid large endorsement fees to these celebrities, and most people in Viet Nam assumed that the company was an official sponsor. Coca-Cola was the most associated brand with the World Cup.

Skilbeck said the company "did a fantastic all-round marketing effort" including strong TV advertising supported by the World Cup Trophy Event, under-the-bottle cap promotion and online contests.

The Mobile World Handset retail chain, or The Gioi Di Dong, with 56 branches nationwide cut through with compelling promotions, according to the survey.

Brand buzz secured by breakthrough ideas