NGUYỄN MINH NGUYÊN

VŨ LÊ NGUYÊN

TRẦN THỊ THANH TÂM

ĐÀO THÚY TIÊN

BÙI TRẦN QUỐC VIỆT

QUÁCH TIỂU YẾN

GROUP 4

TABLE OF CONTENTS

Part 1: Introduce about the new giant competitor

• Brand (History, Stores, Form, …)

• Customers

• Mission statement

Part 2: Identify problems and find out solution

• R&D development

• SWOT analysis

• Short term and Long term Goals

Part 3: Enter upon a campaign

• Segmentation

• PR strategy

• Mission statement

COMPARATIVE

Information Starbucks Trung Nguyen Coffee

Nationality

Date

Boss

Rank

HQ

Profit in 2011

Staffs

Stores

Available at

USA

1971

Howard Schultz

Top of the world

Seattle, Washington

11.7 billions USD

37,000 people

19,555 shops

58 nations

Viet Nam

1996

Nguyen Vu Le Dang

Number one in VN

Bui Thi Xuan district 1

100 milions USD

3,000 people

1000 shops

Viet Nam and Singapore

PENETRATING TO VIET NAM

In additional, Starbuck applies 3 terms to enter different markets:

1. Licensing2. Joint venture3. Whole own subsidiary

In Viet Nam, Starbuck gets licensing form Coffee Concepts Co (from Hong

Kong)

THEIR STORES

• Total stores: 17,651 (as of July 1, 2012)

• Now, being served in Viet Nam

• Location: 76 Lê Lai street, district 1, Hồ Chí Minh City

THEIR COFFEE

• Specialty for Asia: Asian Dolce Latte

• Beside 5 kinds of black coffees :Espresso Cafe, Americano, Espresso Con Panna, Espresso Macchiato

• Others are coffee with cream, and Frappuccino® Blended Coffee which are sweet, fat and flat.

• Those are hard to satisfy the tastes of heavy coffee drinker and hard to make people stay awake but expensive (more than 70.000 VND )

THEIR MISSION STATEMENT

Their mission: to inspire and nurture the human spirit

“One person, One cup and One neighborhood at a time.”

Their Coffee

• Sources the finest coffee beans.

• Roasts them with great care.

• Improve the lives of people who grow them.

Their Partners

• Creates a place where each of us can be ourselves.

• Treats each other with respect and dignity.

Their Customers

• Connect with, laugh with, and uplift the lives of our customers.

• Starts with the promise of a perfectly made beverage.

Their Stores

• Makes customers feel this sense of belonging

• Our stores become a haven

• A break from the worries outside

• A place where you can meet with friends.

Their Neighborhood

• Take our responsibility to be good neighbors seriously.

• Want to be invited in wherever we do business.

• Can be a force for positive action – bringing together our partners, customers, and the community to contribute every day.

• See that their responsibility – and their potential for good – is even larger.

• The world is looking to Starbucks to set the new standard, yet again. They will lead.

THEIR MISSION STATEMENT

BASE ON THE GRAPH WE HAVE SURE ABOUT THAT VIET NAM IS THE ONE HAVE LOWEST GDP. IN INDONESIA, PEOPLE BUY 1 CUP OF COFFEE FOR 4$. THE AMOUNT OF MONEY IS MORE THAN SALARY PER DAY IN VIET NAM.

Viet Nam GDP

TARGET CONSUMER:High income

people

The first reason is people in HCM have average wage is 3000USD per person (the same with GDP of Indonesia). Most of people in HCM are adult and office worker so they can be the main customer of Starbuck.

In Viet Nam, Starbucks coffee is a stand-out brand, new trend to catch, but quite luxury, very confined class to enjoy, …

+Teenagers: prove and feel proud of themselves

+Young adult: widen knowledge, experience and evaluate international brand

+Foreigners: look for local home tastes and enviroment.

_Menu: abundant in drinks and foods

_Taste: insipid, greasy

_Environment: spacious, luxury, friendly, professional

_Price: high, unreasonable.

In Vietnam, Trung Nguyen coffee is popular, trust worthy, suitable for most classes,…

_Taste: Strong – suitable for Vietnamese people, fragrant, sebaceous.

_Enviroment: friendly, tradition, uncreative, applicance.

_Price: considerable, payable.

SWOT ANALYSIS

The first Vietnamese franchise of coffee houses.

Has wide distribution channels.

PR strategy.

Remains on the list of leading coffee companies in Vietnam.

Become the international brand.

Lost market share, loss of orientation.

Confusion of policy and strategy as well as management.

S

W

O

T

STRENGTHS

Trung Nguyen

• The first Vietnamese franchise of coffeehouses, built a franchise network of morethan 10,000 cafés in the country.

• Franchised in Singapore, Cambodia,Ukraine, Japan, German, Thailand, andChina .

• Wide distribution channels.

• Have coffee shops inside famousbuildings and malls which have largeamount of employees and people.

• High potential to improve in world’smarket.

• Easy to penetrate Asia coffee’s market.

• Expand brand.

• Good quality products such as CreativeCoffee no. 1, 2, 3, 4, 5, Legendee,Passiona and Weasel.

• Captured and successfully launched aseries of consistent youthful style.

Starbucks

• High visibility locations to attractcustomers.

• Established logo, developed brand,copyrights, trademarks, websiteand patents.

• Company operated retail stores,International stores (nofranchises).

• Valued and motivated employees,good work environment.

• Good relationships with suppliersIndustry market leader with aglobally renowned brand.

• Customer base loyalty.

• Product is the last socially acceptedaddiction.

• Widespread and consistentKnowledge based.

WEAKNESSES

Trung Nguyen

• Apply price discrimination.

• Cannot control all the partners.

• Missing a top leader in the field ofcreative and innovative style tokeep the system consistent.

• Focus too much on widedevelopment of the brand andforget to develop image and style,design furniture, etc.

• = > lose unique advantages thathave helped them leveled up .

• PR strategies.

Starbucks• High pricing which cost not all kind

of market could buy Starbucks’products.

• Starbucks considered ‘AmericanGlobal’ which cost sentimental issuefor customers in some countries.

• Lack of internal focus (too muchfocus on expansion).

• Self cannibalization.

• Cross functional management.

• Starbucks refuses to guarantee thatmilk, beverages, chocolate, icecream, and baked goods sold in thecompany’s stores are free ofgenetically-modified ingredients.

• Because of its perfectness ofemployees service, some employeescomplaint about the managementwhich pushes them to always beperfect. That is why they makeStarbucks Workers Union.

OPPORTUNITIES

Trung Nguyen

• Remains on the list of leading

coffee companies in Vietnam.

• Become the International brand.

• Trung Nguyen also has many

opportunities and advantages

among foreign comers to attract

capital and better cooperation with

Asian countries.

• Create and improve images of

stores.

• Improve franchises in Asia.

Starbucks

• Expansion into retail operations.

• Technological advances

New distribution channels

(delivery).

• New products.

• Distribution agreements.

• Brand extension.

• Emerging international markets.

• Continued domestic

expansion/domination of segment.

THREATS

Trung Nguyen

• Lost market share, loss of orientation.

• Confusion of policy and strategy as well as management.

• Lost market share, loss of orientation and confusion of policy and strategy as well as management.

• Compete in price

• Improve quality and create new flavors

• After a few years being used to Vietnam market, foreign comers will be more powerful

Starbucks

• Increased competition from coffeeshops and others (restaurants, streetcarts, supermarkets)

• US market saturation

• Coffee price volatility in developingcountries

• Negative publicity from poorlytreated farmers in supplyingcountries

• Consumer trends toward morehealthy ways and away from caffeine

• Fragile state of worldwide productionof specialty coffees

• Alienation of younger, domesticmarket segments

• Corporate behemoth image

• Cultural and Political issues inforeign countries

HOW TO BECOME THE BEST

GOALS

In short-term:

Dominate domestic market.

• Improve images of stores.

• Rebuild the brand personality.

• Update menu with new flavors.

In long-term:

Conquer the world market.

• Expand revenue.

• Improve the quality of coffee bean.

• Improve PR strategy.

CONSUMERS

Lifestyle:

• Drink coffee regularly in any period of day.

• High evaluation in coffee’s taste and efficiency.

• Enjoy the professional and peaceful environment.

• Concern about healthy and environment issues.

• Price is important.

Segmentation:

• Class: Middle and Upper class

• Age: over 25

• Job: Businessman and Employees

• Group: Believers

=> Have job, income and high need and high estimate in coffee

Slogan: “One cup for one opportunity of your future”

• Our coffee can make you stay awake

• Make you more creative and flexible

• Keep healthier by containing non-toxic

Create a brand new outlook and new level of quality and brand.

• Expand spaces and markets.

• Design new and convenient tables, new cups, carpets….

Improve our brand.

• Bring new environment.

• Create new flavors.

• Improve skills in growing and frosting coffee beans.

C

A

M

P

A

I

G

N

DECORATION

Space

_ Cool, fresh, lots of trees and

flowers.

_ Quiet, clean and clear.

_ Luxury, elegant and

professional.

_ 2 kinds of space:

+ Cooling chamber

+ Open-air space

Design

_ Luxury, elegant and

professional.

_Use simple and luxury colors:

white, black, brown, …

_ Table and chair made from

wood with foam rubber.

_ Use good quality coffee cup set.

DRAFT OF DESIGN

DECORATION

OUR BRAND PERSONALITY

Sophisticated

• High price but reasonable for middle and upper class.

• Space and design are elegant, spacious and luxury.

Luxurious

• Professional environment.

• High- grade furniture.

Gastronomic

• High quality of coffee beans.

• Tasty drinks.

Reliable

• Famous and long-standing brand.

• Used by many experts.

Adaptable• Many branches in

and out side Viet Nam.

• Many kinds of coffee.

PRODUCTS

ADD

ACTIVITIES

Organize a reference group of people enjoying coffee habits

• Experiencing kinds of coffee

• Capture information, current affairs and exchange their own experiences

• Many people, whether previously knew each other or not, become friendly, and can be attached to work together

Sponsor for variety show ( Dancing celebrities, Inside VN, FBNC, Giving strength to exam seasons – Tiep sucmua thi…)

• Broadcast weekly on TVs

• Promote products

• Brand recognition

Capture the tastes of consumer, produce the product aims to please the average taste of undifferentiated audience

Upgrade positions – become the 3rd home ( besides consumers’ house and company) to help customers feel themselves at home, relaxed and comfortable.

MISSION

Bring satisfaction to consumers.

• Provide high quality and hygiene drinks

• Create friendly and professional environment

• Acquire question, feedbacks

Nurture the next generation and develop national economic.

• Scholarships

• Training courses

• Recruitment

• Take part in annual Vietnamese high quality product festival

Keep our position.

• Continue to operate our own distinguished way.

• Value good relationships with consumers and partners

Justify Vietnamese coffee brand to the world.

• Establish an international channel providing a close view to the process of growing, harvesting, selecting and selling coffee.

• Run several kinds of coffee to adapt the foreigners but still keeping our unique taste