Vietnam is an emerging market with a population of over 97 million and a rapidly growing middle class. The country has attracted a lot of foreign investment in recent years, with international brands flocking to set up shops in the country. In this context, it is important to consider the marketing aspects that come into play when international brands do business in Vietnam. This article aims to explore 3 successful global brands and their marketing strategies, which will provide insight into how other brands can navigate the Vietnamese market.
1. Coca-Cola
Coca-Cola is one of the leading beverage brands in Vietnam, with a long history in the country dating back to the 1960s. However, Coca-Cola did not make its official business launch until 1994, after the US lifted the trade embargo against Vietnam. Since then, the company has implemented a range of strategies to increase its market share and appeal to Vietnamese consumers. According to Vietnam Beverage Industry Report 2020 by Vietnam Credit, Coca-Cola dominated the market of non-alcoholic beverages with more than 64% market share. A report published in 2021 by Statista showed that Coca-Cola was a top-selling FMCG brand in Vietnam of that year with a penetration rate 66%.
Most chosen FMCG brands in beverages category in urban areas in Vietnam in 2021, by penetration rate
Localize products
One of Coca-Cola’s key strategies in Vietnam has been to localize its products. The company has launched a range of flavors that cater to local tastes, including coconut, lemon, and green tea. This approach has helped Coca-Cola to differentiate itself from other beverage brands in the country and appeal to Vietnamese consumers’ preferences.
When it comes to marketing strategies, Coca-Cola has also invested heavily in advertising and marketing campaigns in Vietnam. The company has launched campaigns that feature popular Vietnamese celebrities, including singers and actors, to increase brand awareness and appeal to younger audiences. Coca-Cola has also leveraged a range of channels such as TV, billboards, and social media platforms to reach consumers.
Employ Social media
Social media has been an important aspect of Coca-Cola’s marketing strategy in Vietnam. The company has a strong presence on Facebook, with over 109 million followers on its official page. Coca-Cola uses Facebook to share content, such as videos and images, that promote its brand and products. The company also uses Facebook to engage with consumers and respond to their comments and inquiries. Any marketing campaigns launched by this brand are also widely promoted on this platform. For instance, Coca-Cola is currently launching its music series featuring famous producers and songwriters Onionn and Grey-D on Youtube. By leveraging its power on Facebook, the brand made a huge announcement and attracted the attention of the audience to the first episode, which will be aired soon.
In addition to Facebook, Coca-Cola has also established a presence on TikTok in Vietnam. On the global TikTok channel, the company has launched several campaigns on TikTok that feature popular influencers and encourage user-generated content. For example, recently Coca-Cola launched a TikTok campaign that encouraged users to create videos of themselves dancing with the background music Open by Khalid feat Majid Jordan while enjoying Coca-Cola with the hashtag #ShareTheMagic. Coca-Cola then re-uploaded these videos and gained up to millions of views per video.
However, Coca-Cola’s TikTok account in Vietnam has not yet developed to the same level as its global TikTok account. With more than 30,000 followers, this Vietnamese Tiktok account isn’t active frequently and the latest video was approximately 2 years ago.
Strongly sell on E-commerce
E-commerce has also been an important aspect of Coca-Cola’s marketing strategy in Vietnam. The company has partnered with various e-commerce platforms, such as Lazada and Shopee, to sell its products online. For instance, Coca-Cola’s e-commerce store on Shopee Mall allows consumers to purchase Coca-Cola products online and have them delivered to their doorstep.
Extensive Offline Distribution
Distribution channels have also been a critical aspect of Coca-Cola’s marketing strategy in Vietnam. The company has established a strong distribution network, most of which are retailers, supermarkets and convenience stores all across the country, making its products easily available to consumers in both urban and rural areas. Coca-Cola has also worked to improve its distribution channels by investing in technology, such as GPS tracking and inventory management systems, to ensure timely and efficient deliveries.
2. Samsung
Samsung Vietnam is a subsidiary of Samsung Group, a South Korean multinational conglomerate. Samsung Vietnam was established in 2008 and has since then become one of the largest foreign mobile vendors in Vietnam. Over the years, Samsung Vietnam has experienced tremendous growth, expanding its operations and increasing its market share. According to a report by Statista, Samsung held over 29% market share in the smartphone market in Vietnam in the first quarter of 2021. This brand also holds a significant share in the home appliance, TV, and laptop markets in the country.
Samsung Vietnam’s success can be attributed to its focus on innovation, quality, and customer satisfaction. The company has invested heavily in research and development, and its products are known for their high quality and reliability. Additionally, Samsung Vietnam has established a strong distribution network, making its products easily accessible to consumers across the country.
It is also worth noting that the strong presence of Samsung in Vietnam’s electronics market is by implementing effective marketing strategies that appeal to Vietnamese consumers. The company has utilized a variety of marketing channels, including social media platforms such as Facebook and Tiktok, e-commerce, and an extensive distribution network to reach and engage with its target audience.
Amazing campaigns on Social media
One of Samsung Vietnam’s key marketing strategies is leveraging social media platforms to build brand awareness and connect with consumers. The company has a significant amount of page likes and followers on Facebook, with over 162 million followers on its official page. Besides, Samsung Vietnam regularly posts engaging content on Facebook, including product updates, promotions, and user-generated content to keep its audience informed and engaged. Additionally, the company has invested in Facebook advertising to target specific audiences and increase its reach. Most recently, Samsung Vietnam has collaborated with a famous model and actress Thanh Hang to promote its new product – Galazay S23 Ultra via appealing photos on Facebook. The post has gained a lot of reacts and comments from the audience within a short period of time.
Samsung Vietnam has also recently started to incorporate Tiktok as a part of its marketing strategy. With more than 3 millions like on Tiktok, the company has launched a number of series which featured short videos of both celebrities and other TikTokusers showcasing Samsung’s products and services. These campaigns have helped to increase brand awareness among younger consumers who are more likely to use Tiktok as their preferred social media platform.
Big revenues from E-commerce
Another key element of Samsung Vietnam’s marketing strategy is e-commerce. The company has invested in its online presence, with an official website and e-commerce platforms on major Vietnamese e-commerce sites such as Shopee, Tiki, and Lazada. By offering online shopping options, Samsung Vietnam is able to reach consumers across the country who may not have access to physical retail stores. The company has also implemented various online promotions and discounts to incentivize consumers to purchase Samsung products online.
Distribute across largest retailers
Finally, Samsung Vietnam has established an extensive distribution network to ensure its products are easily accessible to consumers. The company has a wide range of official retail stores and service centers across Vietnam, as well as partnerships with major electronics retailers such as Nguyen Kim and Dien May Xanh. This extensive distribution network ensures that Samsung products are available in both urban and rural areas, making them accessible to a wide range of consumers.
3. McDonald’s
McDonald’s entered the Vietnamese market in February 2014 with its first restaurant in Ho Chi Minh City. Since then, the company has expanded its presence in the country, opening new restaurants in major cities such as Hanoi and Danang. The growth of McDonald’s in Vietnam has been relatively slow compared to other markets due to strong competition from local fast food chains and the popularity of traditional Vietnamese cuisine. However, the company has continued to invest in its operations in Vietnam and has seen steady growth in recent years.
Make it fun on Social media
McDonald’s Vietnam has a strong presence on Facebook with over 82 million followers on its official page. This brand takes great advantage of Facebook to engage with customers, promote their menu items, and share information about their brand.
McDonald’s Vietnam also uses targeted advertising on Facebook to reach specific demographics, such as young adults and families with children. They create custom audiences based on user data, such as interests, behaviors, and demographics, to ensure that their ads are seen by the right people.
In addition to advertising, McDonald’s Vietnam uses Facebook to share regular updates and promotions, such as new menu items, special deals, and charity campaigns. They also use the platform to run contests and interactive campaigns, such as asking customers to share photos or videos of themselves enjoying McDonald’s food. Recently, when organizing a huge event in Ha Noi, the brand posted several engaging posts on this social media platform to promote the event and encourage people to take part in the event by playing games to receive free tickets.
Besides Facebook, McDonald’s Vietnam’s TikTok presence has been very popular among Vietnamese customers, especially younger generations who are active on social media. One of the most successful videos that McDonald’s Vietnam launched on TikTok was the BTS meal, which featured the world-famous music band – the BTS.
Apart from the collaboration, McDonald’s Vietnam has also used TikTok to launch other promotions and deliver information to users. They regularly post content, such as behind-the-scenes footage of their restaurants, special deals and promotions, and customer testimonials, to keep their audience engaged.
Deliver food fast and conveniently
McDonald’s Vietnam has been using e-commerce to make it more convenient for customers to order their food. They have partnered with popular delivery apps like Grab and Gojek to offer delivery services to customers in Vietnam.
Customers can also order food directly from McDonald’s Vietnam’s website or through their mobile app. The mobile app allows customers to browse the menu, place orders, and track their delivery status. Additionally, the app offers exclusive deals and promotions to customers, such as free delivery for orders over a certain amount.
McDonald’s Vietnam has also expanded their physical footprint by opening new restaurants in various areas, including shopping centers and airports. This has helped to make their food more accessible to customers and increase their market share in Vietnam.
Through their e-commerce initiatives, McDonald’s Vietnam has been able to offer more convenience to their customers and increase their revenue streams. As the use of e-commerce continues to grow in Vietnam, McDonald’s is well positioned to take advantage of this trend and drive further growth in the country.
Localize ingredients to ensure freshness
McDonald’s Vietnam sources its food ingredients locally from various suppliers across the country. They work with local suppliers from nearby provinces to ensure that their menu items are made with fresh and high-quality ingredients that meet McDonald’s global standards.
Some of the local food ingredients that McDonald’s Vietnam sources include meat, vegetables, bread, and dairy products. They have also introduced menu items that incorporate local flavors and ingredients, such as the McPork and the Burger Pho.
Conclusion
In conclusion, Vietnam presents a wealth of opportunities for international brands looking to expand their business. However, to be successful in this market, it is crucial for brands to take into account the unique cultural and marketing nuances that exist in the country. By understanding the local market and tailoring their marketing strategies to suit Vietnamese consumers, international brands can build a strong presence in the country and tap into the significant potential that Vietnam offers.
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