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Cross Cultural Issues In Aquafina

Decent Essays

4.1. Cross- cultural risk
The situation/ event where cultural misunderstanding puts some human value at stake.
 The problem
In VN, In the case of PepsiCo, Aquafina is a popular product of PepsiCo, manufactured in accordance with American standards. Aquafina has so far earned good reputation in consumers’ mind.
Nevertheless, in 2015, PepsiCo officially recognized that the water used for Aquafina is treated public water (water from tap). Because of misunderstanding of some definitions, Vietnamese people assume that Aquafina is unqualified. The differences in mind-sets, culture makes the problems become bigger.
In America, the entire tap water system can be drunk directly from the tap. However, it is very risky if someone drinks water from …show more content…

At the time of 5-7 years ago, Coca-Cola persisted in its aggressive market share strategy with its retail strategy. In addition, Coca Cola compete by monopoly strategy in caferias, fast food chains, cinema theaters. With Coca Cola, there will be without PepsiCo and vice versa.
In 2012, when Pepsi co-operated with Suntory, Coca-Cola announced an additional $ 300 million in Vietnam to compete with each other.
However, lately, with content-rich marketing strategies, bringing meaningful messages, Coca Cola has captured the majority of consumer sentiment. In the middle of the year 2016, Coca Cola accounted for 41% of the beverage market while Pepsi only 22.7%.
- Tan Hiep Phat: When Vietnamese soft drink brands like Chuong Duong, Tribeco gradually fallen by the opponent's take over, Tan Hiep Phat became the only Vietnamese brand that stands steadily in the competition. In the middle of 2016, Tan Hiep Phat holds 25.5% of soft drink market.
"The only reason is that Tan Hiep Phat became alone in the fight with foreign brands to develop the national products, because other domestic enterprises do not have enough financial resources, technology to catch up with the market. While the competition is getting harder, "said one industry

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