Comparison marketing mix strategies between the coffee house and highlands how they achieve their objective by using 7ps

Pham Luu Thuy Linh_10170428_ME_A2

Phan Ngoc Hong Thao_10170479_ME_A2

Dong Tuan Trung_10170502_ME_A2

Nguyen Bich Ngoc_10170449_ME_A2

1 Compare 7Ps of TCH and Highlands 4

2 The way they achieve their objectives 17

Task 2: Evaluate TCH’s marketing plan and provide new promotion campaign 20

1) Company Overview 20

2) Evaluate the smart of objectives 21

3) Analysis current marketing plan 22

4) STP 23

5) Tactics and action 27

6) Allocation of resources (Budget and people allocation) 28

7) Evaluating and monitoring marketing plans 29

C REFERENCES LIST 36

A INTRODUCTION

In this report, our team will provide information related to The Coffee House andsplit into two tasks In task 1, our team will research on TCH then explain and analyze thedifference of its direct competitor is the chain of Highlands stores This will be reflected inthe 7Ps mixed marketing strategy in the form of a comparison table Then, the objective ofthe two-coffee shop will be compared based on the results of the marketing strategy Intask 2, our team launched a new campaign and an overview of the company's current goalsand development.

(sources: Facebook)

Food & Beverage: Diverse drinks and

food They are developing the new type of drinks such as bubble tea or ice-blender (Tomorrow Marketers, 2017).

Packaging: Changing a lot.

- Cups made of glass are served at store

- Plastic cups, bags and straws whichmore convenience is for delivery (TomorrowMarketers, 2017).

Food & Beverage: Diverse drinks and

food They concentrate on coffee and bread (BACCUC, 2018)

- Each drink has their logo.- They use the plastic cups.- Easily to take drinks away.

Strategy: Bring the diversity of drink

and food to customers Therefore, the customers of The Coffee House are usually the young people (Tomorrow Marketers, 2017).

Strategy: Direct to the normality in

service Therefore, they focus more about the type of customers (The Tran, 2017)

The Coffee HouseHighlands Coffee

Position: Located in the big cities such

as Ha Noi and Ho Chi Minh City.- All stores are built near the main road and have a large frontage.

- More convenience for theircustomers, especially young customers.

Position: Located in big buildings and

malls in Ha Noi and Ho Chi Minh City.- The space appropriate for bothentrepreneurs and normal customerswho go shopping in malls.

(Source: kenh14.vn)(source: Facebook)

- Based on Market demand - Outdoor seating brings open space,- Example: Customers live in Ha Noi connected with life

with different culture and enjoysitting outdoor, TCH built storeshave indoor space but can seeoutdoors so all store has manywindows (emanvietnam.vn)

Store type: Variety stores (FrancesStore type: Variety stores (Frances

Brassington, et al, 2013) Brassington, et al, 2013).

PRICE

The Coffee House

Average Price: From 39.000 to 55.000

Target: The coffee house primarily

targets a wide scope of audience that can spread anywhere from millennial to those of Generation X, regardless of foreigners or locals Locating near offices, The Coffee House also aims to attract white-collar workers with the tendency to drink coffee in the morning or during office hours In comparison with Highland Coffee, The Coffee House attracts and retains a younger customer base who seeks out TCH as a place to meet up with their friends and enjoy a steaming cup of coffee together.

Highlands Coffee

Average Price: From 29.000 to 59.000

Target: Highland Coffee preferred foreign

style from the harmonious taste and domestic and foreign styles Highland coffee’s customers are middle class, office workers, teenagers and foreigners in Vietnam However, the most prominent customer target for Highland, with its convenient location and flexible delivery policy for offices located near Highland, is undoubtedly office workers.

The Coffee HouseHighlands Coffee

The Coffee House delivers its brand message in a unique way compared to other brands in the F&B industry.

- TCH is focusing on products andrelies heavily on marketing its coffee storesas a kind of “home” with stories that resonateto its audience (dma.banme.com)

- “Home” where TCH’s loyalcustomers drink coffee and hangout with friends, their feelings canbe heard, and their thoughts can beshared.

Facebook Page: The Coffee House

created a page on Facebook which helpthem easier in connecting with

- Highland Coffee’s promotional

activities aim to highlight its uniquepositioning strategy among coffee chainsin Vietnam.

- The company also implements sales

promotion when introducing newproducts, urging consumers to experimentnew drinks and dishes.

Facebook Page: Highland Coffee

designed a page called “Highland Coffee Vietnam” which is used to promote their products.

- On the other hand, Highland brought

to customers lots of celebrating promotionfor national holiday in

- Facebook page also associate itselfwith customers by uploading lots of promotionsuch as “buy 2 get 1 for free” or combo ofdrinks and foods.

Vietnam will uploaded most in Page.

Main Website: Coffee House builds aMain Website: Highland Coffee has set

main website which have a clear up its own website to let customers knowcatalog and clients can find easy on about basic information their brand.

information about TCH such ashistory, menu or recruitment.

(https://www.thecoffeehouse.com/)

Sales Promotion

The Coffee House uses lots of

promotion such as 25% off for deliveryorder, cheaper price for a combo of drinks and cakes, buy 2 get 1 for free, buy 3 get 3 for free for delivery order, 20% off for paying through zalopay

Highland promote their products by using lots of sales off event such as change to bigger size for free or in lots of Vietnam’snational holiday.

About event and charity sponsorship Past events sponsored by Highland Coffee include:

- American Independence Day- Australia Day

- International School Charity

PEOPLE

The Coffee House

Human resource

Recruitment: They employ the most

suitable people depending on the specific requirements and standards post in main website.

- Candidates need to response allfunctions of positions set by the director

and management support team.Example: Store Manager

Highlands Coffee

Recruitment: They also post

recruitment information on the homepage in brief form.

- HC requires employees to have a

high school diploma or higher.

- Age: 22 – 28 years old

- Experience: Above 6 months

- Ability lead a team, more 10 people

- Good communication and can speakdifference languages

(https://www.highlandscoffee.com.vn/vn/nghe-Training courses: They focus on training

and improving soft skills for staff.Including always smiling, friendly orenthusiastic and must be ready to talk,

Example: Store Manager

Training courses: After recruiting,

staff will have to participate in theinternship for 2 days For seniormanagement, it will take 3 to 7 days.

listen and share stories with costumers.

and attractive salary - Full – time and part – time

the vision and accomplishments they salary of 17,000 dong/hour.contribute (brandvietnam.com) (highlandcoffeecareercenter fb)

training in the first month received will be in accordance with the100% of salary Then, if they quit, the agreement.

company will donate 1 million.(cafef.vn, 2017)

Based on Ybox.vn:

Position Salary(dong)1 Full – time 5-7 millions

16,000 –18,000 / hour +bonus

(discount 30%)

High position like managers: 9 – 11 million

implemented by a detailed and clear as the way to inspire theirpolicy, which was applied for the first employees

time in 2015.

- In the charter, the company will share 15% of the company's shares for employeesfrom store level (Bich Nguyen, 2017)

PHYSICAL EVEDIENCE

Decoration: Modern decoration withDecoration: The decoration of HC is

yellow and white tones, warm yellow also oriented to the warmness butlights system and clean airy space with slightly Western direction as in Italy ormany glass windows, divided into areas France with two main colors red andsuch as round tables to meet friends, black, along with wooden tables and

13

long tables to study and work, entering chairs or large sofa.the coffee shop is the aroma of coffee,

play music softly, smoothly.

(source: thietkequancafedep.com.vn)

(source: kenh14.vn)

Service: The staff always available to

welcome guests, recommend drinks andserve enthusiastically and politely Staffuniform is black shirt and apron Thewebsite and fan page are constantlyupdated with many incentive programs.

Service: staffs are young, always

smiling and quite near to customers and willing to help Their uniform is red clothes and black apron Do not regularly update the activities on the website that promote as well as give vouchers to customers directly as

Brand and logo: simple logo with 3

colors: orange, white or black Target customers are young people who meet with friends or study groups, work and products at average prices.

TCH is geared towards young people

- Modern style of decorating, serving drinks trend youth.

- Located in large streets with beautiful views.

- The design of the space is cozy andcomfortable as at home (Tomorrow Marketer,2017)

- Creating a sense of friendliness andcloseness, making customers want to return.

Brand and logo: oval shape which

following Western style with 2

recognizable red and white colors and a little brown-the color of coffee Target customers are office workers, family, middle-income people

HC attract many kind of customers.

- They create a luxurious spacewhich becomes an ideal place to relax formodern consumers while stillcommunicating traditional cultural values:community and friendly cohesion (PhanHoang Yen, 2014).

15

First, at each store the security guards prompted the customer to park the vehicle When they leave the security guards will take the vehicle out for customers.

Next, customers order drinks at the counter and pay, where they will be advised to order drinks and pastries then staff will bring drinks to the table for customers TCH serves drinks along with a glass of water, when customers run out of water, they will be refilled by the staff.

Drinks are stored in glass cups, after the customers leave, the staff will clean the table The staff regularly clean and check if the customer has any requirements.

Customers come to coffee shop not onlyto drink coffee, but also to find a spaceto meet, work, where they feel

HC also has security guards for

customers at both when they come and leave.

Customers order drinks and food at the counter, then the customer is given a machine, when the drink is finished the machine will vibrate and customers have to go to the counter to take their drinks

Drink are stored in plastic cups and staffwill come clean when customers leave Staff will also appear immediately whenthe customer requests.

HC brings a self-service process,ordering and payment process is faster,

comfortable and served with dedication(Nguyen Hai Ninh, 2018) TCH wants tobring the best quality of service, givingcustomers the feeling of caring in afriendly environment.

cutting staff costs, reducingovercrowding, serving the wrong order(Pham Dac Viet, 2017).

2.The way they achieve their objectives

1 PRODUCT

from packaging toinsulation for paperhas brought a good image,take care of clients.

which helps TCHapproach more types ofcustomers and ages better.

2 PLACE

easy-to-park locations,downtown facades, streetview, TCH become the

- Drinks of HC help them

attract not only local peoplebut also foreigners live inVietnam.

- Also select the convenient

location, high populationdensity help HC's customerseasily find the

top-of-mind of thecustomers.

come to stores regularly.

4 PROMOTION

TCH follow the word"house" and insight fromtheir target clients Notonly the customers butalso the staff also see eachstore is HOME.

- High salaries will attract5 PEOPLE

more new and talentedemployees.

- This helps company build

- Convenient for delivery.

- For HC, high price is

equivalent to high quality So,they can keep the fastidiouscustomer.

- Because of focusing oncoffee, HC has succeeded

in attracting large

numbers of businessman.

- Many promotions and

combos help reduce the priceas a customer gratitude Theycontinue to be loyalcustomers.

- Not public wages will help

the company avoidcompetitors.

- They still provide basic

a culture of ownership and salaries to attract employee loyalty They time employees.

part-maintain dedication,enthusiasm, sincerity inservice as well as ensureconsistent.

6 PHYSICAL

EVIDENCE and based on customer's colors are not indoors andcriteria, TCH has more outdoors based on eachsmall and large groups of individual preferences It

increase the number of space.customers and sales

costs.

TIEU LUAN MOI download : skknchat@gmail.com

Task 2: Evaluate TCH’s marketing plan and provide new promotion campaign

1) Company Overview

The Coffee House (TCH) is the coffee company with 62 coffee shops includes 49shops in Ho Chi Minh City, 10 shops in Ha Noi City and 3 shops in Da Nang City.According to TCH’s CEO, “House” is not just a coffee shop where people come and drinkcoffee or tea, it also a “home” where nourish conversation and connect people, bring to

them comfortable moment (camnangsinhvien.com, 2018) With picturesque view,

professional employees and respectable service, TCH become more and more popular withVietnamese people especially with teenagers With the objective which is become one ofthe 3 coffee chain in Vietnam, TCH use different marketing strategy to attract people.Thus, TCH has set its core values and missions as high-quality and environmentalproducts, respectable service and friendly, professional employees.

The Coffee House is famous all over Vietnam with their classic products such as Caramel Macchiato, Peach Orange Tea, Mocha, with a lot of delicious deserts.

2) Evaluate the smart of objectives.

They instituted the objectives and know exactly the wayto achieve those objectives For example, they had set objectivesto open total 18 coffee shops all over Vietnam at the end of

bring to the company the profit that they had 10,000 customerseach day and they have total 62 coffee shops by now-

day Specially, they are improving their brand by protecting theenvironment by using paper cup and bamboo straw.Consequently, they can attract more people with their ownspecific characteristics, to be 1 of 3 most coffee chains in VietNam

The FINANCIAL STATEMENT of The Coffee House

isn’t promulgated yet

Time They are going to achieve their objectives from now.

The objectives of The Coffee House can be saying SMART

3)Analysis current marketing plan

- Popular brand with young - The price is quite high compared

- Diverse menu including coffee, economically independent.tea, ice blended, etc And - Older customers feel unfit forlocation on big streets with thinking that TCH is only for

- Modern decoration, clean and dedicated service.- Self-supplying materials (coffee

- The policy facilitates the - Strong direct and indirect

- The rate of young population is alternative products.

22

high along with the economy is - Healthy living tendencies and

- The development of social networking makes products easy to approachcustomers.

(More detailed in appendix part)

4) STP

a Segmentation

Segmentation is the way to find different types of customers with different needs.After that, they will divide them into specific and potential groups Based on provenexperience, most companies will focus primarily on a group of customers who are moreprofitable than others (consumerpsychologist.com).

TCH also relies on prominent ways to segment the customer market for them:

age groups Mainly from15 to 35.

University) and Officers.

Geographic Region Both international anddomestic.

Population density High population densitysuch as provinces andcities.

Psychographic Lifestyle Able to go out both groupor individual.

coffee or macchiato andcozy space.