THE ADVANTAGES AND CHALLENGES OF EXPANDING TO DEVELOPED ASIAN COUNTRIES FOR CONG CAPHE

The purpose of the thesis is to identify problems pertinent to relatively lower quality of customer service at Cong Caphe in the Korean market. The study is carried out by colleting and analyzing evaluations from customer service providers, customers or service users and the researcher’s observations. In the final sections, thorough recommendations are provided with the aim of improving customer service quality and increasing the positive perception of the Cong Caphe brand. This study is divided into three parts. The first part – Introduction - contains overall information about the research: rational, aims, the scope, methods and organization of the study. The second part includes three chapters. Chapter One is the review of literature review on different theories of branding, brand strategies and the role of customer service in building a brand strategy. Chapter Two – named The Study - consists of basic information about Cong Caphe Company Limited, its customer service providers, data collection instruments, data collection procedures, and the findings of the study. Chapter Three is dedicated to the researcher’s recommendations, providing and supporting suggestions made to improve the quality of customer service at Cong Caphe in the Korean market. The final part is Conclusion. This section provided the final overview of and concluded the study.

MINISTRY OF FINANCE ACADEMY OF FINANCE FACULTY OF FOREIGN LANGUAGES - - Student : Nguyen Thu Uyen Group : CQ54/51.04 GRADUATION THESIS TOPIC: THE ADVANTAGES AND CHALLENGES OF EXPANDING TO DEVELOPED ASIAN COUNTRIES FOR CONG CAPHE Major : English for Finance and Accounting Student code : 165D2202010143 Hanoi – 2020 1|NGUYEN THU UYEN – CQ54/51.04 MINISTRY OF FINANCE ACADEMY OF FINANCE FACULTY OF FOREIGN LANGUAGES - - Student : Nguyen Thu Uyen Group : CQ54/51.04 GRADUATION THESIS TOPIC: THE ADVANTAGES AND CHALLENGES OF EXPANDING TO DEVELOPED ASIAN COUNTRIES FOR CONG CAPHE Major : English for Finance and Accounting Student code : 165D2202010143 Supervisor : MA Pham Thi Lan Phuong Hanoi – 2020 2|NGUYEN THU UYEN – CQ54/51.04 DECLARATION I, Nguyen Thu Uyen, being a student of Faculty of Foreign Languages, hereby certify my authorship of the thesis submitted today entitled: “The advantages and challenges of expanding to developed Asian countries of Cong Caphe.” I declare that the thesis and the study presented in it are my own and have been generated by me as the result of my own original research Hanoi, May, 2020 Student Nguyen Thu Uyen 3|NGUYEN THU UYEN – CQ54/51.04 ABSTRACT The purpose of the thesis is to identify problems pertinent to relatively lower quality of customer service at Cong Caphe in the Korean market The study is carried out by colleting and analyzing evaluations from customer service providers, customers or service users and the researcher’s observations In the final sections, thorough recommendations are provided with the aim of improving customer service quality and increasing the positive perception of the Cong Caphe brand This study is divided into three parts The first part – Introduction - contains overall information about the research: rational, aims, the scope, methods and organization of the study The second part includes three chapters Chapter One is the review of literature review on different theories of branding, brand strategies and the role of customer service in building a brand strategy Chapter Two – named The Study consists of basic information about Cong Caphe Company Limited, its customer service providers, data collection instruments, data collection procedures, and the findings of the study Chapter Three is dedicated to the researcher’s recommendations, providing and supporting suggestions made to improve the quality of customer service at Cong Caphe in the Korean market The final part is Conclusion This section provided the final overview of and concluded the study 4|NGUYEN THU UYEN – CQ54/51.04 ACKNOWLEDGEMENTS This thesis would not have been finished without the suppport from many individuals that in one way or another contributed and extended their valuable assistance in the preparation and completion of this study First and foremost, I would like to express my deepest gratitude to Ms Pham Thi Lan Phuong, my supervisor and also a professional interpreter who teaches translating and interpreting lectures at Faculty of Foreign Languages for her guidance, patience and advices It was my honor to have a oppotunity to finish my Graduation Thesis under the guidance of an enthusiatic, emphathetic and motivative mentor as Ms Phuong I also would like to offer my sincere thanks to Ms Linh Dung, Ms Dang Huong Giang and all the staff working at Cong Caphe Company Limited for their support and assistance during my internship Additionally, I want to express my appreciation for customer service providers for giving me advices and helping me while I was doing my thesis Last but not least, I could never feel grateful enough to have my beloved family beside, who is always there for me no matter what happens They are my motivation to get through all the hard time with support, ecouragement and endless love 5|NGUYEN THU UYEN – CQ54/51.04 LIST OF FIGURES AND TABLES Table 1: Customers’ satisfaction measurement Table 2: Observation Schedule Table 3: Online questionnaire results Table 4: A collection of feedback response from customers on Cong Caphe customer service Table 5: Steps to open a new store Figure 1: Areas of improvements from customer service providers (based on online questionnaires) Figure 2: Percentage of feedback response from customers on Cong Caphe customer service 6|NGUYEN THU UYEN – CQ54/51.04 TABLE OF CONTENTS 7|NGUYEN THU UYEN – CQ54/51.04 INTRODUCTION Rationale of the study Vietnam is among the countries with the fastest developing pace, attracting attention of many tourists and investors from developed countries Korea is one of them According to the Representative of Korean Tourism Bureau in Vietnam, the number of Korean tourists in 2019 is million, 21.3% higher than that in 2018 Korea is one of major countries who invests in various industries of Vietnam including mechanical engineering, cosmetics products, and furniture Notable Korean conglomerates in Vietnam include Samsung, Hyundai, Daewoo, etc Vietnam is the second biggest exporter of coffee, behind only Brazil However, the Robusta coffee beans produced and used daily in Vietnam are different from the Arabica coffee beans preferred by other countries, especially Korea Not just the coffee itself, the Vietnamese coffee culture is also different from that of the Korean people Koreans tend to drink coffee in a more “commercial” manner, quickly drinking a take-away cup of coffee before work They also mostly use coffee made with a coffee machine Unlike Koreans, Vietnamese tend to enjoy a cup of coffee at a slower pace Vietnamese love to socialize and chat with a group of friends while watching coffee dripping down from the coffee filter Franchising Cong Caphe abroad and telling its story is one unique way to bring Vietnamese culture to the Korean people To expand the brand, especially abroad, it is important to have a solid brand strategy and effectively communicate to inspire employees for applying the core value of the brand to every activity and interaction with customers The aim of satisfying customers is prior for all customer services industry, Cong Caphe is not an exception Becoming an influential brand with unique culture inspired by Vietnam society in the subsidy period, Cong Caphe already has a clear marketing 8|NGUYEN THU UYEN – CQ54/51.04 strategy, but expanding abroad is not the same because of different customer targets, cultures, languages, and lifestyles Therefore, the researcher decided to carry out a research on “The advantages and challenges of expanding to developed Asian countries for Cong Caphe” The researcher truly hopes that the study can be able to improve the quality of customer service at Cong Caphe café chain abroad Aims of the study The thesis has main aims First, the study provides general information about Cong Caphe Company Limited and its advantages when expanding to Korea Second, it is aims to show a part of the process which providing customer service to abroad Cong Caphe stores Lastly, the researcher gives some solutions and recommendations to improve customer services quality at Cong Caphe in Korea and other foreign markets Scope of the study Due to limited time and real global-business experience of the researcher, the scope of the study will focus on the Korean market instead of all developed Asian countries Additionally, this study will put more emphasis upon further practical analysis on customer service as a part of a branding strategy in place of online marketing via social media such as pictures, videos, and email Methods of the study Three data collection instruments as following are used in order to collect data for the study Online questionnaires are conducted to collect customer service providers’ experiences in building a branding strategy for Cong Caphe in Korea Document review of Cong Caphe’s customer satisfaction measurement is carried out to study further the efficiency of the above brand strategy The last instrument, 9|NGUYEN THU UYEN – CQ54/51.04 observations, is used to get objective opinions by observing the working process of expanding the Cong Caphe brand and proving excellent customer service in the Korean market Organization of the study CHAPTER 1: LITERATURE REVIEW 1.1 Brand Strategy 1.2 Customer service as a part of Branding strategy CHAPTER 2: THE STUDY 2.1 Objects of the study 2.2 Data collection instruments 2.3 Data collection procedure 2.4 The findings CHAPTER 3: RECOMMENTDATIONS Suggestions to improve quality of customer services at Cong Caphe in the Korean market 10 | N G U Y E N T H U U Y E N – C Q / in this matter Most Korean customers considered Cong Caphe store to be “pretty”, “vintage”, and unique However, small seating space makes many Korean customers feel bothered Many express their concern that they feel little privacy when two tables are too close to each other At the same time, such small space also makes them feel constrained when walking and moving around Cong Caphe needs to optimize its seat spacing while allowing customers to have their own unique coffee space Another problem with store design and set up is that furniture such as chairs need to be enlarged Through the researcher observation, Korean people tend to have a bigger frame and heavier body than most Vietnamese To improve this issue, chairs and tables used in Cong Caphe stores in Korea need to be made in bigger size Most customers when going to coffee shop need a comfortable place to either work or enjoy their time with friends Bigger furniture can allow them to enjoy their seating more with enough perception of privacy against other tables Such changes should be made for stores in different countries as well 2.4.3 Findings from observations Based on Table 1: The schedule for providing service for Korean customers, the researcher sums up required actions into three major deadlines, in which each new store opening demands being taken as follows: Table 5: Steps to open a new store No Major deadline Preparation steps Initial product and service offerings Initial evaluation of products and services Explanation Preparing ingredients and equipments for store set-up and training activities for Cong Caphe Korea staff in Vietnam Taking place in the first months and being monitored and evaluated closely Proving feedback after evaluating store operations and customer satisfaction as well as profitability assessment 39 | N G U Y E N T H U U Y E N – C Q / 2.4.3.1 Preparation steps The first step of preparation for new store opening is the model operations taking place in Vietnam for Cong Caphe Korea staff to observe and learn During the period weeks before grand opening, store managers and assistant managers in a new Cong Caphe store in Korea come to Vietnam to undergo training and take part in some in-store operations Right after this training period, they will return to Korea and re-train store staff in Cong Caphe Korea The agenda for training includes waiting, cashier, barista modules It is important for them to pay close attention to the given recipe for drinks, staff shift management, and the handling of real-life customer issues After putting enough hours on the training, such managers are assigned to a specific store in Vietnam to direct observe and take part in serving Vietnamese customers After this period of intense training and operations, managers will return to Korea along with a set-up and training team of Cong Caphe Vietnam Due to a unique store design, the Vietnam team help Korea staff to setup new store, including the barista area Though with an approved design from the CEO of Cong Caphe Vietnam, the design team still must be flexible to solve real-time issues relating to store set up During this period, operations team also helps the new Korean store to test functionality and appropriate position for bar equipment under the observation of store staff During this whole duration, the researcher observes that time spent on training Korean managers last longer than that spent on training in-store Korean staff While the former lasts for weeks, the latter lasts for only week Additionally, managers not seem to fully understand everything from the training in Cong Caphe Vietnam This might be due to interpretation issues and operations 40 | N G U Y E N T H U U Y E N – C Q / differences between the two countries More importantly, the method of brewing coffee by Cong Caphe Vietnam is too unique, thus creating confusions among Cong Caphe Korea staff These might be major reasons why the speed of making drinks in Korea is too slow for many customers 2.4.3.2 Initial product and service offering This period starts from the date of grand opening of a new store All staff from Cong Caphe Vietnam, including the set-up team and the operation team will stay for a period of days to take part in serving customers and evaluating store operations By doing so, Cong Caphe Vietnam has a better understand of a new store and assists the Korean team in promptly solving any issues that come up during the period The promotion programs after grand opening lasts for days, so the marketing team from Vietnam also joins the new store evaluation during this period The marketing team, arriving at the new store on the grand opening day, helps the Korean team in their marketing efforts Simultaneously, the marketing team also assess the quality and profitability of these initial promotion programs Any marketing material such as photos and other material is also collected to update Cong Caphe’s website and other social media channels Since Cong Caphe has a unique decoration style, thus appealing to young Koreans, the virality of Cong Caphe is high in this country This is amplified by the fact that mostly coffee shops in Korea follow the trend of Starbucks, decorating their stores in a modern and sleek design This uniqueness adds effect to the 3-day promotion programs, attracting a large number of new customers to any newly opened store The researcher can see that under-trained staff with a high number of customers result in negative attitude from store staff and lower speed of fulfilling orders 41 | N G U Y E N T H U U Y E N – C Q / 2.4.3.3 Initial evaluation of products and services After the periods of preparation and initial observation of initial product and service offering, all the teams from Cong Caphe Vietnam fly back home After coming back to Vietnam, they continue to follow up with the Korea team on daily profitability, promotion programs’ efficiency, and customer satisfaction After the first month of opening, operations and marketing team from both sides meet up to evaluate the new store, discuss any rising issues, and provide solutions together to minimize damages After three months of operations, the two teams hold online conferences to further assess the situation of the new store They continue to go over past issues, discuss new problems, and change any course of actions if they cannot solve existing problems Together, they decide whether the store is operating efficiently and profitably enough They also review many customer feedbacks and come up with appropriate solutions so that the store will be more appealing to customers in the future In conclusion, the researcher observes that two biggest issues that both Korean customers and Cong Caphe service providers find troublesome are (1) the souvenir counter does not work as expected to boost sales and increase the curiosity of Korean customers and (2) the time to fulfill an order is too slow, thus putting off customers and reducing their loyalty Other problems that need to be improved are (1) staff attitude is not up to Cong Caphe’s standard, (2) new product offering is too infrequent to attract new Korean customers, and (3) store designers need to pay more attention to seating space and overall store traffic flow 42 | N G U Y E N T H U U Y E N – C Q / CHAPTER 3: RECOMMENTDATIONS As mentioned in the sections above and backed up by the data collected, the researcher provides a few suggestions to improve the quality of customer service in Cong Caphe Korea stores as follows: 3.1 Improvements in the design and use of souvenir counters The souvenir counter is stated by many customers and assessed by many service providers that there should be a story for each souvenir to lure customers in Understanding this, the researcher suggests that the souvenir counter should include a catalogue, which has the story and meaning of each souvenir item Another suggestion is that each item has a small information tag, which briefly explains its story and meanings These stories help customers understand the cultural significance of these items, assisting them in creating an excitement and an emotional attachment and increasing the chance of purchasing them In addition, the position of the souvenir counter is also a topic of complaints of many customers and service providers A souvenir counter at a noticeable spot inside a store can make a huge impression for customers as they walk in ready to be served While waiting to be served their drinks, customers could curiously look through souvenirs The designer, as a result, should pay more attention to the souvenir counter It is best to have the counter in a place that is easy to see, eyecatching, and convenient for cashiers to introduce items on sales to customers while taking orders The training team could put forth further skill training on selling souvenir items to cross sell brand products, thus increase brand image 3.2 Improvements in seating space and traffic flow of a store Seating space and traffic flow is another issue related to store design Improving these aspects can significantly enhance Cong Caphe customer service 43 | N G U Y E N T H U U Y E N – C Q / quality In countries, where people tend to be of bigger frame than Vietnamese, it is more proper to design wider furniture and more space to move round for customers Arranging tables and chairs to close should be avoided Since customers need space to move and enjoy their privacy, the design must be to satisfy their needs Moreover, Cong Caphe should conduct more surveys on customers in potential markets on these aspects to develop the appropriate design While bringing about comfort for customers emotionally and physically, the brand of Cong Caphe can be more welcomed and appreciated in foreign markets 3.3 Improvements in speed of fulfilling orders Speed of fulfilling order is also of top concerns The researcher suggests that store staff should have more time and opportunities to practice before officially taking a position in a store Since barista skills are different in foreign countries due to cultural and equipment discrepancies, more training can help staff become familiar and influent with Cong Caphe’s way Just as crucial, arrangement of in-bar equipment should be calculated to be the most efficient for better usage by staff 3.4 Improvements in attitudes of customer service providers The complaints about service providers’ negative attitude might not be rare but should be of top priority for a brand focusing on good services such as Cong Caphe Nevertheless, the researcher is certain that this problem can be easily solved through training Though training at Cong Caphe is not done with little care, it is more important to improve staff’s awareness of the brand and its vision It is essential to emphasize on professionalism and brand identity during training for instore staff Once they understand that they are the face of the Cong Caphe brand and that they are important in the existence and development of the brand, staff can be act more responsibly towards customers Cong Caphe can also have a reward and punishment for excellent and bad service using ‘staff of the month’ reward 44 | N G U Y E N T H U U Y E N – C Q / 3.5 Improvements in frequency of annual product offering Not only in Korea, service brands all over the world are emphasizing on improving their brands through launching new products on a regular basis Some brands focus on healthy products, while other focus on seasonally appropriate ones As Korean culture is known for beauty-focused, Cong Caphe should associate its brand with natural and organic products This is easy to since Cong Caphe is currently using mostly fresh fruits to make its drinks To conclude, Cong Caphe could more research, follow up with new trends, and develop appropriate products By doing so, it could attract more customers while maintaining the loyalty of existing ones 3.6 Improvements in the quantity of promotion programs The final suggestion is to improve the quality of promotion programs through gifts and vouchers These programs could make the brand go viral while improve its image After fixing the problems and maintaining the strengths of appealing vintage design, good customer service, and frequent launch of new products, good promotion programs are the final key to bring about success With more promotions, customers can feel more curious and excited to come to the store to enjoy new gifts and discounts 45 | N G U Y E N T H U U Y E N – C Q / CONCLUSIONS This paper aims to analyze difficulties faced by Cong Caphe brand abroad and provide suggestions to solve such issues For better focus, it is limited in customer service of Cong Caphe in the Korean market – top developed economy in Asia To have the most well-rounded analysis, the researcher utilizes three data collection methods which are online questionnaire, document review of customer satisfaction feedbacks and her own real-life observation With the highest efforts, the paper faces certain limitations due to geographical and data availability constraints First, the researcher focuses only on customer service to improve Cong Caphe brand strategy There are many aspects of a strategy to enhance brand image Second, the researcher bases her observation on a few days spent on observing operations at a Cong Caphe store in Korea This might create biases due to limited time However, months of working in Cong Vietnam partially makes up for this limitation Even with such limitations, the researcher believes that this paper lays a good foundation for further expansion in Asia as well as other international markets Cong Caphe and other F&B companies could use this paper to focus strongly on customer service to improve their brand image and awareness To conclude, Korea is the gateway for global expansion of Cong Caphe As its first foreign market, the brand still faces many difficulties due to limited experience Nevertheless, it can learn a lot about cultural differences and customers’ preferences To expand further outwards, it needs to continuously adjust itself through better research and understanding of foreign customers 46 | N G U Y E N T H U U Y E N – C Q / REFERENCES 2011 Customer Experience Impact Report USA: Oracle, 2012 Print Amaresan, S "10 Undeniable Reasons Customer Service is Important to Your Business." HubSpot, Dec 20, 2019 2019, Print Asher, Dean "Brand-Building in Essential Steps." Foreword Online, Aug 13, 2015 2015, Print Baumeister, Roy F., and Mark R Leary "The Need to Belong: Desire for Interpersonal Attachments as a Fundamental Human Motivation." Psychological Bulletin 117.3 (1995): 497-529 Print Bernazzani, S "Customer Service 101: The Ultimate Guide." HubSpot, Sep 19, 2019 2019, Print Budelmann, Kevin, Yang Kim, and Curt Wozniak Brand Identity Essentials: 100 Principles for Designing Logos and Building Brands Kindle Edition 1st ed USA: Rockport Publishers, 2010 Print Davis, M The Fundamental of Branding 1st ed ed AVA Publishing, 2009 Print Decker, A "The Ultimate Guide to Branding in 2020." HubSpot, Dec 16, 2019 2019, Print Grant, M "Customer Service." Investopedia, Sep 10, 2019 2019, Print Kasza, A "What is Brand Strategy?" Study, June 6, 2015 2015, Print Kimbarovsky, Ross "what is Brand Identity and how to Create a Unique and Memorable One in 2020." 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Harvard Business Review, sec Apr 06, 2009 2009, Print Wagner, R., & Stern, A Employee Motivation in the United States USA: BiWorldWide, 2016 Print "World's largest coffee producing countries in 2018.” (2019, January 2019) Statista Retrieved from Statista: The Statistics Portal for Market Data Jan 2019 2019 Web 48 | N G U Y E N T H U U Y E N – C Q / APPENDIX Survey Qquestionnaires for customer service providers This questionnaire is carried out to investigate personal opinions of customer service providers at Cong Caphe about efficiency of customer service in the Korean market after an period of operations The data collected is used only in this research paper and not for any other purposes Your completion of this survey is extremely important for this research Personal information: Full name: Position in company: Please choose Yes or No for each question below and give reason (if any)! Question 1: Satiric and humorous skit written in Cong Caphe stores in Korea – they bring about expected results in improving brand image as well as Vietnamese culture in Korea? Yes No Why? (If any): Question 2: Is customer service team’ attitude considered up to par with your expectations? Yes No Why? (If any): Question 3: Speed of order – Does it need to be improved for better services? Yes 49 | N G U Y E N T H U U Y E N – C Q / No Why? (If any): Question 4: Souvenir counters – they contribute much to the store revenues? Yes No Why? (If any): Question 5: Food and beverage quality – is it up to the standard set forth by Cong Caphe? Yes No Why? (If any): Question 6: Frequency of new beverages and food – does it need to increase on an annual basis? Yes No Why? (If any): Question 7: Gift and promotion programs – they need to increase on an annual basis? Yes No Why? (If any): Thanh you so much for your help! 50 | N G U Y E N T H U U Y E N – C Q / NH ẬN XÉT C ỦA ĐƠ N V Ị TH ỰC T ẬP Họ tên người nhận xét: Nguyễn Thị Kim Dung Chức vụ: Giám đốc Điều hành Cơng ty TNHH Cộng Cà phê Nhận xét q trình thực tập tốt nghiệp Sinh viên: Nguyễn Thu Uyên Khóa: CQ54 Lớp: 51.04 Đề tài: “The advantages and challenges of expanding to developed Asian countries for Cong Caphe” Nội dung nhận xét: Về tinh thần, thái độ thực tập sinh viên: Về ý thức kỷ luật, tuân thủ quy định đơn vị thực tập: Về kỹ giao tiếp, kỹ mềm: Về kiến thức chuyên môn: Người nhận xét (ký tên, đóng dấu) 51 | N G U Y E N T H U U Y E N – C Q / SUPERVISOR’S JUDGEMENT Supervisor: Pham Thi Lan Phuong Student: Nguyen Thu Uyen Group: 51.04 Intake: CQ54 Topic: “The advantages and challenges of expanding to developed Asian countries for Cong Caphe” Mark: • - In number: • - In word: Supervisor 52 | N G U Y E N T H U U Y E N – C Q / CRITIC’S JUDGEMENT Critic: Student: Nguyen Thu Uyen Group: 51.04 Intake: CQ54 Topic: “The advantages and challenges of expanding to developed Asian countries for Cong Caphe” Mark: • - In number: • - In word: Critic 53 | N G U Y E N T H U U Y E N – C Q / ... student of Faculty of Foreign Languages, hereby certify my authorship of the thesis submitted today entitled: ? ?The advantages and challenges of expanding to developed Asian countries of Cong Caphe. ”... cultures, languages, and lifestyles Therefore, the researcher decided to carry out a research on ? ?The advantages and challenges of expanding to developed Asian countries for Cong Caphe? ?? The researcher... identity during training for instore staff Once they understand that they are the face of the Cong Caphe brand and that they are important in the existence and development of the brand, staff can be