The new look of consumers in the twenty first century 5

The importance of production decisions and meeting market requirements: 3.1 Quicks pivots to changing needs: Manufacturers must adapt and improve their processes quickly to save money an

INTERNATIONAL SCHOOL VIETNAM NATIONAL UNIVERSITY

- BIG ASSIGNMENT-

Lecturer : Dong Van Chung

Class : INE105001

Submission date: 26/07/2024

Table of Contents

1 The new look of consumers in the twenty-first century 5

1.1 Regardless of the century, businesses and

corporations must always answer one question: What do

customers want?More importantly, how can businesses

and corporations achieve thÌS? u uc nu nnnn nnnnn n 5

1.2 Revolution DiQifal cm ng 5

1.3 Growth of E-COINmMFCC uc nu ng 5

1.4 Social Media infÏU©C©S uc em nu nu nn nhà 5

1.5 21°' CentUrV CONSUF cuc mm mm ng 6

2 Evaluation of the effects of a shift in consumption: 6

2.1., Price and SUDDV: «con n mm 6

2.2., Efficiency of Production and Distribution: 6

2.3., ReDlaC©emehnI(: cm n như HH HH BH 6

2.4., Effect on Revenue and Profitability: - ‹‹- - -«‹ 7

2.5., Impact on society and CUÏtUFC: ecennnnnneee 7

3 The importance of production decisions and meeting

market requirementS: «cm ra 7

3.1 Quicks pivots to changing needS: «co 7

3.2 Analyzing trends and staying ahead: - 7

3.3 Smart and COSt- ©GffGCÏV©: cu nu yn 7

3.4 Substitute DFOdUC: «on mm nh 8

4 Market efficiency and competition mechanisms in

4.1 How Well Markets WOrK: «cm n 8

4.2 Competition MechaniSIG: con 8

5 Case study of Coca-cola in the relationship between

consumers and pFrOdUCeYFS cm 9

5.1 Consumer belhaViOF? cu nh ng n 9

5,1 - FrEQUCNCY Of Sau een mm HH HH n HH BS 9 5.1b - Consumer trEHS,.aeea sen mm nn n n nnnn n mn BH HH n fi 5.2 Coca-Cola meets consumer nee©dS: eececee Tfí

5.2a_ History and brand can nhe eee anes 1fi 5.2b No price changes for 7Ö y©AFS à seo fi 5.2c Diversity and attraction in each product 11

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5,2d AdVertiSỈNQ c Làn nh HH Hành tu 11

G CODCÏUSÏON ngưng me 11

1 The new look of consumers in the twenty-first

century 1.1 Regardless of the century, businesses and corporations

must always answer one question: What do customers want?

More importantly, how can businesses and corporations achieve

this?

The twenty-first century has seen a huge shift in consumer

behavior; they have significantly different wants than previous

generations, spurred by global technological breakthroughs

Transformation and shifts in social dynamics Understanding

these shifts is critical for business, marketers, and politicians

Digital consumer trends, modern consumer behavior, 21st-

century consumer preferences, and shifting consumer landscapes

are all examples of how technology is influencing consumer

behavior and expectations in the digital age

1.2 Revolution Digital

The way that consumers obtain information, make decisions,

and engage with brands has been completely transformed by the

widespread use of social media, smartphones, and the internet

The growth of mobile banking apps and shopping apps like

Amazon and Lazada has been spurred by the popularity of

smartphones

Convenient shopping: Customers can quickly and simply

complete purchases using mobile applications

Payments via mobile: The payment process has been made

simpler and more secure by mobile payment technologies like

Apple Pay, Google Wallet, and digital wallets

1.3 Growth of E-Commerce

The ease of being able to buy products and services from the

comfort of one's home has made online shopping popular The

way people shop has evolved as a result of the internet's growth

and e-commerce sites like Alibaba, Shopee, and Amazon

Convenience: Consumers can shop anytime, anywhere without

having to go to a physical store

Wide selection: The online store offers a wide range of

products and services from everyday consumer goods to luxury

goods

Compare prices and product reviews: Consumers can easily

compare prices and read reviews from other buyers before

making a purchase decision

1.4, Social media influences

Platforms like Facebook, Instagram and Twitter influence

consumer choices through peer reviews, influencer marketing

and targeted advertising Social media platforms such as

Facebook, Instagram and TikTok have become important

marketing channels

Targeted advertising: These platforms use user data to create

highly targeted ads that increase conversions

Influencer Marketing: Social media influencers can

significantly influence consumer purchase decisions by sharing

experiences and product reviews

1.5, 21* century consumers

The rise of informed, empowered 21st century consumers,

consumer autonomy, consumer research habits and informed

purchasing decisions With easy access to information, today's

consumers are more informed and demand transparency from

brands Consumers compare products, prices and reviews before

making a purchase The requirement of transparency is very

important Ethical aspects such as sustainable practices and fair

trade are central to purchasing decisions

2 Evaluation of the effects of a shift in consumption:

Changes in consumer spending have a significant effect on the

economy in the microeconomy, particularly on production

We can gain a better understanding of the relationship

between producers and consumers by examining the price and

other impact factors Prior to analysis, it is important to

comprehend what "use" means in this particular context In the

microeconomy, consumption refers to how people and

households use and purchase goods and services to fulfill their

own needs At the micro level, shifts in consumption can have a

significant effect on the following aspects of the economy:

2.1, Price and supply:

The supply and demand of goods and services can fluctuate in

response to changes in consumption Changes in market

conditions or shifting consumer preferences may cause

consumers to purchase multiples of a given item, which may result in price adjustments and increased supplier competition

« During the early months of the COVID-19 pandemic, the demand for toilet paper skyrocketed This sudden increase in consumer demand led to temporary shortages and price hikes

as suppliers struggled to keep up with the increased consumption

2.2 Efficiency of Production and Distribution:

Modifications in consumption habits may also have an impact on the effectiveness of production and distribution Manufacturers may need to modify their production procedures to meet demand

if there is a notable surge in the consumption of a specific item

« The surge in demand for smartphones has_ pushed manufacturers like Apple and Samsung to optimize their production processes, including automating assembly lines and enhancing supply chain logistics, to meet the high consumer demand efficiently

2.3 Replacement:

Products that could potentially replace an existing one may receive preference from customers when there is a shift in consumption Different types of goods and services may increase

or decrease as a result of this

« The increasing preference for plant-based milk alternatives, like almond or oat milk, has led to a decline in the demand for traditional dairy milk As a result, dairy producers have seen a decrease in sales, while producers of plant-based milks have experienced growth

2.4, Effect on Revenue and Profitability:

Particularly for small and medium-sized businesses, alterations in consumer behavior can have a significant effect on the revenues and profitability of businesses They risk losing business to rivals

if they are unable to adapt to these changes.M

« Many small bookstores have struggled to maintain profitability due to the rise of e-commerce giants like Amazon Those unable to adapt to online sales have faced significant revenue losses, while those who have embraced e-commerce have managed to sustain or even grow their businesses

2.5, Impact on society and culture:

A major aspect of consumption is the evolution of society and culture norms Decisions about production and consumption may

be impacted by emerging consumer trends, which may be a reflection of shifting social values and ideals

The growing awareness and concern for environmental sustainability have driven consumers to prefer eco-friendly products, such as reusable water bottles and biodegradable packaging This shift reflects changing social values and has influenced companies to adopt more sustainable practices in response to consumer demand

3 The importance of production decisions and meeting market requirements:

3.1 Quicks pivots to changing needs:

Manufacturers must adapt and improve their processes quickly

to save money and work more efficiently.Manufacturers who are successful in deliveringM products on demand can also predict, respond, and make decisions quickly.They try to delay customization of the final product until it is closer to the end of the supply chain, the point of saleln other words, manufacturers delay the completion of the final product until they can better predict consumer demand

3.2, Analyzing trends and staying ahead:

Manufacturers must better understand where the world is going to stay ahead of the competition A manufactures that can identify a trend before its corporate customers will become

a more valued partner and have the first-mover advantage to supply that client with the relevant products and services 3.3 Smart and cost- effective:

Manufactures should return to basics by identify their greatest strengths, focus on areas to sustain their business and assemble the best technology stack to execute those fundamentals

3.4, Substitute product:

Manufacturers also need to have solid strategies and plans in place to respond to consumer changes.The manufacturer must provide an alternative product or service that can replace the original product or service, that has the same characteristics

as the original product and meets some or all of the consumer's requirements

4.Market efficiency and competition mechanisms in

microeconomics

Markets and competition are super important for keeping the economy in check and helping different industries grow in a way

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that lasts These two big things make sure businesses run and compete in a market-based system

4,1 How Well Markets Work:

Markets are like meeting spots where people who want to buy stuff meet up with people who want to sell stuff When we talk about how well markets work, we're looking at how good they are

at using what's available and making things so that everyone's happy with what they get Some key things about how well markets work include:

Resource Allocation: Markets do a good job of handing out resources through prices and how much people want or need stuff Resources get used to make things people need In markets where there's competition, prices of stuff are set by how much is available and how much people want it Take oil and gas prices around the world They're set by big producers like Saudi Arabia, the US, and Russia all competing A study from Harvard University shows that when markets work well, they waste less and make more stuff when it comes to energy and farming This means resources are used better and more gets made

Boosting Competition: When suppliers compete, it makes products better and cheaper, which is good for buyers and helps the economy grow and come up with new ideas Countries like the US and Germany have tough rules about competition, which creates places where new tech and ideas can flourish Take Apple and Samsung, for example They spend tons of money on coming up with new stuff to stay ahead in the global phone market McKinsey's studies show that smart competition rules in the US help small and medium tech companies grow fast This has led to the rise of Silicon Valley and other tech hotspots around the world

Adaptability: Markets let economic systems change when demand and tech shift Companies can tweak things to keep going and grow Watchdogs like the US Federal Trade Commission (FTC) often look into stuff to shield buyers from market shenanigans For example, they slap big fines on tech giants such as Facebook and Google to make sure online ad markets play fair and stay open This helps markets stay flexible and keeps things honest for everyone involved

4.2 Competition Mechanisms:

In microeconomics, competition mechanisms have a_ big impact on how businesses work and how resources get shared This key part of economic policy helps to keep competition healthy, which makes sure markets stay open and fair Here are some important things to know about competition mechanisms in microeconomics:

Changing and Coming Up with New Ideas: Companies in microeconomics need to always come up with new stuff and change how they do things as business situations shift When companies compete, it makes them spend money on figuring out how to make their products and services better Take big tech companies like Apple and Microsoft - they're always showing off new products and making their old ones better so they can keep or get more customers

Good Stuff for People to Buy: When companies fight for customers, it pushes them to make things that are better quality and work more When people have more choices about what to buy, it leads to companies making things that are higher quality and cost less This is great for people who buy stuff because they get to choose from better products and their lives get easier

Prices that Beat Others and Help Buyers: When companies fight for customers, it keeps prices down Lots of businesses trying to get people to buy from them means they'll cut prices This gives buyers more options and saves them money

Stopping One Company from Running Everything: Rules about competition make sure no single business gets too big This helps new smaller companies grow and come up with fresh ideas These rules also look out for startups, which leads

to new stuff being made

Making Sure Everything's Clear and Fair: Laws about competition make companies play nice and be open about what they're doing This makes people trust businesses more, which helps the economy stay strong and grow for a long time

To wrap up, market forces and how companies fight for customers are key to making businesses last and get more done

in the world's economy We need to keep these things strong to make sure businesses can do well and help everyone move forward, both in money and life in general It's not just about cash

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- it's about making life better for people too These ideas aren't new, but they're super important for how things work today and will work tomorrow

5 Case study of Coca-cola in the relationship between consumers and producers

5.1 Consumer behavior:

5.1a - Frequency of use

« According to Vinaresearch's results, up to 57.2% of people need to use carbonated water 3-4 times a week, and the number 1-2 times a week accounts for a fairly high rate of 28.6% The proportion of men who need to use it is higher than that of women

5.1b - Consumer trends

Quench the thirst

« According to research published by Vinaresearch, the criteria affecting the reason for using carbonated water is to quench thirst by up to 86.0%

Feeling refreshed after drinking:

« The feeling after drinking is also extremely important, up to 59.5% of consumers have the habit of buying to enjoy the refreshing feeling after drinking

Creates a delicious feeling when eating

« Not only to quench thirst and create a refreshing feeling after drinking, according to IASMS, 49.7% of consumers use it to help create a more delicious feeling when eating

Trusted and unique brand

« Consumers are becoming more and more demanding with information about the products and beverage brands they are consuming Also according to the IASMS report in April 2018,

up to 88% of Vietnamese consumers read the information on product packaging very carefully before buying, and 76% demand to know everything about the product: ingredient information Nutrition, additives, shelf life, production technology

Diverse and attractive products

« By 2026, the scale of Vietnam's GDP (PPP) is forecast by the IMF to reach about 1,833 billion USD The middle and affluent income segment is expected to double from 13% to 26% in

2026 Options in the beverage market are also growing exponentially According to Michael Solomon, increased income also causes consumer demand to increase Therefore, the need to use a variety of soft drinks and search for "new

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flavors" will always be in the psychology of Vietnamese consumers

Price Consumers are increasingly demanding, they not only require brand and origin, but also the price that matches the market is extremely important According to FPT, nearly 20% of consumers use carbonated water with the need for price

5.2, Coca-Cola meets consumer needs:

5.2a History and brand

With a history of more than 100 years, Coca-Cola has become

a brand deeply embedded in the minds of users around the world According to FPT published, Coca-Cola is the leading drink in Vietnam, with about 78.7% of people using Coca-Cola soft drinks

In Vietnam, according to Vietdata, Coca-Cola's average revenue always remains at 8,000 billion VND per year.M

5.2b No price changes for 70 years

From the 1800s to 1900s, just 5 cents could buy a bottle of Coke in the US Coca-Cola has not changed its price for many years despite market fluctuations Although this is not a beneficial strategy for the company, it has brought great results For 70 years without changing prices, Coca-Cola quickly dominated the market, creating good brand recognition in the US and dominating the market when many other manufacturers continuously increased prices

5.2c Diversity and attraction in each product

Over the years, with diverse design changes from using glass bottles, the act of opening the cap and shooting it up the nose has created interesting characteristics of the Coca-Cola brand In recent years, Coca has promoted the production of aluminum can packaging with the utmost lightness and convenience for customers According to Vinaresearch's survey, the use of aluminum cans is very popular with consumers and is rated highest at 3.86 points

5.2d Advertising

For many years, Pepsi and Coca-Cola have been engaged ina fierce rivalry for market dominance The most famous advertising battle between the two companies is known as the "Cola Wars." It occurred during the 1980s and 1990s and involved a series of competitive and often controversial advertising campaigns The competitor used controversial advertising campaigns, such as the Pepsi Challenge and "New Coke," to challenge their enemy's popularity The competition also extends to sports, with Pepsi sponsoring major events and Coca-Cola partnering with major sports The Cola Wars ended in 2000, demonstrating the power of

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