REPORT MARKETING SERVICES TOPIC ANALYSE MARKETING MIX 7p’s STRATEGY OF AN EXISTING SERVICE IN VIETNAM MARKET

MINISTY OF FINANCE UNIVERSITY OF FINANCE – MARKETING - - REPORT MARKETING SERVICES TOPIC ANALYSE MARKETING MIX 7P’S STRATEGY OF AN EXISTING SERVICE IN VIETNAM MARKET MAJOR: MARKETING SPECIALITY: QUẢN TRỊ MARKETING Teacher: Dang Huynh Phuong Group: Tran Trung Vinh, Hoang Le Bao Han, Thach Thi Ngoc Han Class: CLC_20DMA02 MSSV: 2021001752 HO CHI MINH CITY – 2021 0 Introduction Coffee is a beverage that is loved by many Vietnamese people This is the basis for the birth and development of Vietnamese coffee brands Among a series of successful domestic names in this field, there is a "foreign giant" who has "risked his life" as Starbucks Starbucks is the world's leading coffee brand, owning more than 21,000 stores around 65 countries, of course, including Starbucks Vietnam With the mission of being one of the fastest growing companies and building brands in the US, Starbucks has contributed significantly to the economic development of the region each year With the expansion of the market in Asia, Vietnam is the 12th location that Starbucks targets In early February 2013, Starbucks officially opened its first store in Vietnam, with a 2-storey store in Ho Chi Minh City Starbucks has partnered with Coffee Concepts Vietnam (belonging to Hong Kong Maxim Group) to build a business model that combines globalism and local culture in Vietnam In this essay, we will learn and report information from Starbucks, market analysis, their competitors, target customers, STP strategy and Marketing Mix strategies (7Ps) From there, we will have a basis to make general assessments, conclusions and offer solutions for Starbucks Section 2: Market and competitor analysis (HÂN) 2.1 Market analysis 2.1.1 Market share  The coffee market in Vietnam is fragmented with small shops accounting for the majority of coffee sales According to data from the United States Department of Agriculture, there are more than 540,000 restaurants in Vietnam and more than 436,000 of them are street stalls  According to Euromonitor's report, the largest coffee chains in Vietnam accounted for 15.3% of the market share, led by the Highlands chain Although Starbucks holds the No position, accounting for nearly 3% of the entire coffee market in Vietnam Starbucks is a global coffee brand Vietnamese coffee with 77 stores across the country and concentrated in cities: Hanoi, Ho Chi Minh, Hai Phong and Da Nang , in Vietnam nearly 1.7 million Vietnamese will have a Starbucks store 2.2 Operation status of coffee shop chains 0  In a year the COVID-19 pandemic rattled the economy, the business results of the F&B industry were negatively affected Sales of all the largest coffee chains in Vietnam witnessed a decline The period of rapid growth that had lasted for many years came to an abrupt end and revenue rapidly declined However, the delivery segment grew many times compared to before Covid-19 Takeaway, order-to-pick up, and delivery models are generally thriving F&B's main business, thanks to its delivery business, has survived the lockdown  Specifically, Starbucks closed stores in 2021 but opened new locations In December 2021 and January 2022, more stores will be opened: stores in Hanoi and stores in Ho Chi Minh City and store in Binh Duong  In 2019, Starbucks chain's revenue reached more than VND 780 billion, up 32%, helping the world-famous coffee chain to be in the top with the highest revenue after Highlands and The Coffee House Besides, Starbucks' gross profit margin is just over 19% compared to 35% of Phuc Long, 60-70% of Highlands and The Coffee House  In 2020, Highlands Coffee will continue to hold its position as the largest coffee chain in Vietnam, with the distance from the other group not much changed Total revenue reached nearly 2,140 billion VND, only decreased slightly  The 2nd place changed, The Coffee House dropped to 3rd place Phuc Long grew slightly and rose to 2nd place These two coffee chains recorded revenue in the 700-800 range billions dong Overview of the coffee shop chain market in Vietnam 2020 (Nguồồn: Brands Việt Nam) 2.2 Competitors analysis 2.2.1 Direct competitors Trung Nguyên Strength  There is a great advantag e in the Highlands Coffee  The market share ranks 0 The Coffee PhucLong House  A polite and friendly brand  Custom ers are diverse: working source of raw materials for coffee productio n  Longstanding famous coffee brand with the taste of Vietnam first in the Vietnam ese coffee industry and is a famous longstanding coffee chain founded by someone with Vietnam ese blood and has the largest scale  Large store system and beautiful location with strong financial resource s  Actively introduc 0 image with a custom ercentric policy  The location of the store system is located in the comme rcial center and in a prime location people, tourists, students and students  The price is affordab le thanks to the selfsufficien t source of raw material s  Coopera tion betwee n Phuc Long and Massan with the "Kiosk" model through a nationwi de network of 2,200 VinMart + stores e new products with diverse series of continuo us activities and organize Minigam es with many attractiv e gifts with content that attracts the most customer s on fanpage Weakne ss  No experienc e in cooperati on with foreign partners  Poor distributi on channel managem  Still using plastic to serve customer s to take away and on site, this increases the amount 0 to easily reach custome rs across the country  The store system is present in the city center and has not yet reached custom  Limit incentiv es and promoti ons on all sales platform s  Staff is not enthusia stic and ent of waste in the environ ment  The price is quite high compare d to many classes of customer s  The store system is mainly concentr ated in big cities ers in the vicinity  Difficult to manage and control each store through franchis ing  service attitude is not good 2.2.2 Indirect competitors  In addition to the three big names in the Vietnamese market, Starbucks faces a number of other formidable coffee chains that are emerging today:  Cong Coffee: This is a cafe built in pure Vietnamese style but attracts domestic and foreign customers The space is classic and evokes a feeling of nostalgia and excitement, with its continuous rise Cong Ca has begun its journey to foreign markets 0 Chain Logo Plus Coffee  Gemini Coffee: a famous brand with clean and green coffee, it quickly becomes a unique destination that attracts young people and has affordable prices for customers with average incomes in society Gemini Coffee chain logo  Ong Bau: is a popular franchise coffee chain in Ho Chi Minh City with a mobile bar model that is easy to reach consumers and the main coffee with ingredients from CADA farms with the quality of Vietnam Nutifood Company is in charge and the menu is diverse to suit many customers 0 Logo Ong Bau Cafe Section 3: Segmentation Market Segment It cannot be denied that most of the market share that Starbuck has won is thanks to its focus on its segment Starbucks focuses on two market segments: demographic and geographic segmentation In terms of demographics, which includes gender, income, age, as well as ethnic background Geographic segmentation is based on country as well as other regions of the world depending on the region and climate in that place Geographic segmentation Starbucks is present in five continents and owns a chain of stores worldwide These include the most popular places such as the Americas, Asia Pacific, the Middle East, Africa, Currently, Starbucks is very focused on the Chinese market, when it has more than 1500 stores Not stopping, the company continues to push further on the mobile ecosystem as well as loyal customers in China In Japan, Starbucks also has about 1000 stores, and promotes the development of digital systems in this market Countries like China, Japan, Korea, and Canada are Starbucks countries that operate strongly outside of the main US market Demographic Segmentation Starbucks targets people of Generation Y, the year of birth is between 1977 and 2000 There are two target groups as follows: Group 1: Customers from 25-40 years old People with good income, education level from university or higher Having a position in society and a habit of using high-quality, health-focused products This group accounts for 49% of the company's total revenue Group 2: Customers from 18-24 years old Although they have not been able to control their finances, they are from well-to-do families, studying at university or starting to work in society Having a habit of consuming coffee at the same time has a trendy and trendy taste Psychological segmentation Starbucks targets customers with high consumption power, willing to spend a certain amount of money to use a good, beautiful product, pursuing trendy coffee Capturing the mentality that they are people who are sensitive to trends and follow a middle-class, luxury style Targeting 0 The target market can be a certain market segment, but it can also be many different market segments, as long as that segment has competition and opportunity to achieve the business goals - At first, Starbucks selected the target market as coffee connoisseurs Building an open space, personal service is as good as creating the best place to work outside the home and office Therefore, customers from the beginning were well-off, professional, highly educated people in society - Currently, in the US, Starbucks sells almost all types of coffee like a store The majority of customers are in cities or upscale suburbs Starbuck's adults are between the ages of 25-40 and account for about 49% of the business's revenue + Young people aged 18-24 account for about 40% of revenue + Children and adolescents are mainly bought by their parents and about 2% of the age group 13-17 Section 4: Marketing Mix (7Ps) Service Starbucks planned to launch a wide range of products that were not limited to coffee and coffee-related products Specifically, the company has launched many different coffee product lines, suitable for each specific customer group At the same time, the company also expanded its product portfolio such as adding wine, cake… and providing music in stores Accumulate card points for customers 0 Each customer's spending is earned as a star, 1$ (~23,000 VND) corresponding to bonus points Customers are entitled to redeem these stars to receive free drinks and food When the members accumulate enough bonus points, the system will automatically upgrade the card and along with the member's priority policies Fast and easy payment supporting They offer their customers the most suitable payment methods This company offers the following forms of payment: cash payment, Starbucks membership card, payment by scanning code and also payment via electronic wallets, debit cards (MasterCard, Paypal, etc.) Apple Pay), Order directly on the phone interface 0  Product combos such as cost-effective breakfast,…  Launching more cheap coffee products  In the Vietnam market, the brand offers a discount policy of 10k/drink when member customers use its cups and bottles to store drinks  Promotion program on holidays, Starbucks anniversaries or customers' birthdays Place Up to now, Starbucks has been present in more than 50 countries around the world, owns more than 17,000 stores… However, it was not until 2013 that the first Starbucks store in Vietnam appeared in District , Ho Chi Minh City Understand the regular coffee usage habits of office workers Starbucks quickly teamed up with companies to set up shop in their building The same is true of convenience stores, high-end hotels and airports, all of which are heavily trafficked Thanks to that, Starbucks expanded its market share rapidly In addition to direct distribution, the company also combines with an intermediary distribution form through a direct ordering application to provide products to customers anytime and anywhere around the world This proves the brand's adaptation to the change of time and technology Starbucks implements a direct distribution strategy from the producer to the consumer Currently, Starbucks Corporation has a total of 62 stores in Vietnam  STARBUCKS STORE IN HCMC 0 Starbucks New World Starbucks Rex Starbucks Đông Du Starbucks Đềề Thám Starbucks Phan Xích Long Starbucks Panorama Starbucks Pandora Starbucks SC Vivo City Starbucks Th oả Điềền 10 Starbucks mPlaza 11 Starbucks Pearl Plaza 12 Starbucks Nguyềễn Huệ 13 Starbucks Gò Vấấp (Emart) 14 Starbucks Lakai 15 Starbucks Airport 16 Starbucks Nguyềễn Văn Trôễi 17 Starbucks Vista 18 Starbucks Leman 19 Starbucks IBIS 20 Starbucks CMT8 21 Starbucks Reserve Hàn Thuyền 22 Starbucks Crescent Strip 23 Starbucks Sư Vạn Hạnh 24 Starbucks Vincom Đôềng Khởi 25 Starbucks Landmark 81 26 Starbucks Estella 27 Starbucks Gateway 28 Starbucks Riverpark 29 Starbucks Gold View 30 Starbucks Sense City 31 Starbucks Saigon Centre 32 Starbucks Happy Residence 33 Starbucks Etown 34 Starbucks Saigon Pearl 35 Starbucks Lotte Pico  STARBUCKS STORE AT HA NOI 0 Starbucks Lan Viền Starbucks Bà Triệu Starbucks Press Club Starbucks IPH Starbucks Garden Starbucks Phạm Ngọc Thạch Starbucks Somerset Starbucks Reserve Nhà Thờ Starbucks Charmvit 10 Starbucks Duy Tấn 11 Starbucks Seasons Avenue 12 Starbucks Landmark 72 13 Starbucks Legend 14 Starbucks Sun Grand City 15 Starbucks Vincom Metropolis 16 Starbucks Sun Ancora Lương Yền 17 Starbucks Vincom Trấền Duy Hưng 18 Starbucks Times City 19 Starbucks N ội Bài Airport 20 Starbucks Royal City 21 Starbucks Aeon Hà Đông  STARBUCKS STORE AT HAI PHONG 0 Starbucks Trấền Phú Starbucks Văn Cao  STARBUCKS STORE AT DA NANG Starbucks B ch Đăềng Starbucks Bà Nà Hills Starbucks Bà Nà Hills Starbucks Vincom Ngô Quyềền Positioning 0 Positioning a product in the market requires a strategic approach involving brand marketing to create and nurture an image in the minds of customers in the target market Starbucks emphasizes the core benefit of quality Focus on the customer and provide more than what the customer needs Good coffee quality with great ambience as well as environmental protection and social commitments Starbucks shows that they have a contribution to nature as well as society in every product that the company offers Free wifi service, "drive-thru" system and including military commitment by hiring military spouses, vocational training and education of youth In terms of the environment, the company also uses recycled coffee grounds on the table and materials that contain less harmful chemicals Promotion Starbucks makes promotional combinations with forms such as advertising, promotion, public relations, media, The marketing team also regularly runs advertising programs on online advertising media such as Google, Facebook, For each, Snapchat, Twitter, Starbucks build separate images and videos to respond to each audience in social networks Starbucks has tried to implement many promotions, especially the Starbuck loyalty card This will provide a higher chance of indirect product promotion, gift cards as well as purchase cards will attract new customers and demonstrate brand loyalty In addition, at many locations, Starbucks provides delivery service to the destination without any conditions, very few stores have this service and this makes it extremely convenient for customers to buy goods Furthermore, Starbucks attracts a diverse customer base by offering international teas and coffees, spanning many parts of the world for locals to enjoy at home, in their own country Starbucks also contributes to a number of non-profit organizations to improve its image with the local community Process Making customers wait in line for hours for a cup of coffee was the last thing Starbucks management wanted.Starbucks followed an efficient command to distribute coffee and other products products at any of their stores using the highest technology to maintain premium standards Starbucks coffee belongs to the category of the food and beverage industry Industry standards state that there are specific levels of hygiene required in retail stores and restaurants Company employees must ensure that the 0 hygiene level of Starbucks retail stores is appropriate In addition, the coffee grinder must be cleaned and maintained at all times Ground coffee should not be lying around in different stores, and once used, it should be thrown away immediately All of these aspects fall within the scope of operations management, and Starbucks management must ensure that a high level of efficiency is evident at all times Physical  Most of the Starbucks coffee shop designs in the world or in Vietnam alone have an extremely favorable and prominent location Starbucks will often be located in locations with outstanding potential, convenient traffic, wide views, and densely populated areas such as central office buildings, hotels, commercial centers, or shopping malls right at the corner of intersections, in densely populated urban areas, supermarkets, train stations,  Starbucks coffee in Vietnam or anywhere in the world follows one of four main styles, specifically as follows:  Heritage style Starbucks coffee shop design: With wooden floors, stained concrete or floral tile floors, metal chairs and factory-style lighting The large and long tables, club chairs and wooden blinds evoke a sense of the turn of the century 0 Heritage style design  The Artisan Starbucks coffee shop design celebrates simple materials such as exposed steel beams, brick walls, factory double-glazed windows and hand-polished woodwork in one creative gathering place for young people for cultural and artistic activities 0 Artisan style design  The Conceptual Starbucks Coffee Shop Design is a unique environment created by designers to explore innovations inside the cafe, known as “design sandboxes” This sense of discovery spreads to all who visit, through daily coffee and tea gatherings, art events and community gatherings 0 Design style Concept  The Starbucks Regional Modern design embodies innovative, comfortable and welcoming design We used bright spaces, with attic-like luminaires equipped with regionally inspired furnishings and culturally relevant textures to create a tranquil and contemporary retreat after the hustle and bustle of the hectic world 0 Regional Modern style design People  Personnel classification:  Leadership: setting goals for the working team, developing organizational capacity and operating the plan  The position of the general employee in a particular store doing direct service jobs at the chain stores  Admin: work in office with supported departments including: store design and development department, product marketing department, external relations department, supply chain department, after-sales department needs and quality control  Remuneration:  Each employee in the organization needs to be valued for their own values and receive financial means to support themselves All employees at Starbucks have the right to express their opinions, feelings… about services or products Starbucks will have the ground to improve the product, tailor the customer experience and business model accordingly  Starbucks focuses on pushing the positives to make it better Therefore, employees feel part of the organization and they will devote themselves to achieving the goals set by the organization, as well as in their work  Starbucks motivates employees to try and grow by creating career advancement An employee can become a shift leader, supervisor, head bar… depending on experience and working time Therefore, Starbucks employees will confidently show their abilities and be willing to learn new knowledge 0  Training and management: Starbuck has inspired employees by introducing the "immutable" principles that make Starbucks special and the brand's success  The first principle is “Make the customer experience your own”, always customize the customer experience through the experience of the staff, flexibly according to different situations  “Everything is important” refers to the spirit of focused work in all aspects Thanks to the focus and thinking on everything that matters, the staff working at Starbuck will observe the customer experience, can be ready to help them and understand the customer  To create an unforgettable impression in the hearts of new and old customers, that is the principle of "joy of surprise" Small surprises, sincere feelings will create memories or imprints when customers come to Starbucks  Especially "always persevere" is the principle that helps employees avoid mistakes and can learn lessons from those mistakes Because of this, Starbucks is growing stronger Section 5: Evaluation and Recommendation Evaluate Service Starbucks planned to launch a wide range of products that were not limited to coffee and coffee-related products Specifically, the company has launched many different coffee product lines, suitable for each specific customer group At the same time, the company also expanded its product portfolio such as adding wine, cake… and providing music in stores However, in Vietnam, Starbucks has been complained by customers about wifi interruptions, making it difficult for them to connect, and it is difficult for Starbucks to convey the value of "connection" to customers The quality of service staff is heavily complained about on social networking sites Product Products are the core value of Starbucks Therefore, the company pays great attention to the research stage to find the most aromatic - delicious - standard coffee beans With each specific period, Starbucks always has innovations in the menu, launches limited edition products, etc to create scarcity, attract and retain more customers The coffees offered by Starbucks are divided into different segment groups To be able to meet the entire needs of consumers around the world 0 Price Through the pricing of high-end products, the brand hits trends in user behavior The expensive high-value products of the Starbucks brand maintain the image of a premium beverage brand and of extreme quality In addition, Starbucks members will enjoy many preferential policies on drinks and prices on holidays, birthdays or brand anniversary Place Starbucks has a pretty clear vision, which is to build a direct and personalized relationship with customers This vision led to the company distributing its products at Starbucks coffee shops, online stores, through the Starbucks App, and through retailers They also link with hotels, airports, coffee shops for office workers This makes it easy and fast for Starbucks to expand its market and maximize sales profits Promotion Starbuck's encroachment into Vietnam has faced many difficulties when Vietnam is the second coffee producing country in the world, as well as Vietnam's coffee culture has become accustomed to sidewalk shops, and the type of coffee that Vietnam favors is also different from the type of coffee Starbucks sells The Promotion strategy is still effective but not high, because most of Starbucks in Vietnam are not used by ordinary customers but mainly by working customers, business people, Starbuck should change the design cups, coffee flavors and story sharing programs, etc on social networking platforms Customers will prefer a purer, more classic coffee and with each coffee a sentiment is placed in it Process Starbuck's standards are very high, so Starbucks' process is strict and goes through many steps This leads to high costs leading to a high value of each cup of coffee Coffee consumers in Vietnam are largely not so demanding, and focus most on taste and emotion instead of quality Therefore, Starbucks processes should be shortened, reducing costs and providing more coffee Physical  Starbucks facilities not only include store designs, coffee, logos and napkins, the brand also creates a relaxed atmosphere for customers Take a whole new approach to store design to suit each store location  Brand uniformity is also a help Its use of the logo and its signature green color boosted Starbucks' brand recognition Although the logo has 0 undergone a few changes throughout its life, its application has remained the same People  Starbucks is always looking for and attracting diverse candidates where Starbucks is present The company always focuses on investing in employee development through attractive training and talent attraction policies  Starbucks built its business by connecting with humanity, engaging the community, and emphasizing the cultures in which Starbucks is located  Starbucks always has a worthy bonus scheme for employees, which is not only a good income but also professional development opportunities Always interested in creating a workplace with different cultures and allowing employees to their best work Starbucks always encourages the unique combination of talents, experiences and perspectives of each member to create the success of the team Recommendation Service Starbucks needs to set up a more effective customer feedback system Besides, it is necessary to encourage service staff to communicate with customers in sync with the brand's culture, to directly listen and sincerely solve problems that customers encounter Product For young customers with good income: Starbucks Coffee needs to bring a strong coffee flavor, imbued with Vietnamese culture and a little modern style, then leave a deep impression in the minds of customers this object For teenage customers: With this audience who likes to experience the novelty of foreign coffee flavors, Starbucks Coffee still retains the typical style of Starbucks' traditional flavors and diversified products for this segment Price For young customers with good income: Starbucks Coffee should set prices at the same level as competitors, so that customers not feel too expensive when using products of world famous brands For teen customers: Starbucks also assumes the same customers, besides there are also promotions for these teenage customers Place Starbucks introduces new products right inside its stores, so in the near future Starbucks needs to expand its chain of stores to other districts in Ho Chi Minh 0 City and Hanoi so that customers can experience new flavors from famous American brands Promotion Starbucks should change about cup design, coffee flavor and story sharing programs, etc on social networking platforms Customers will prefer a purer, more classic coffee and with each coffee a sentiment is placed in it Physical Starbucks also knows that going to Starbucks is more than just buying a cup of coffee That's the atmosphere in that place and it's something that other people can hardly copy It is necessary to promote the idea of designing space elements that are customized according to the individual opinions of customers to help the brand distinguish itself from the competition People - Is a company that operates with a focus on detail and replicates a consistent customer experience across all of its stores and products In addition, Starbucks will develop many brand responsibilities for the social sector, namely supporting loans in rural areas, green forest protection program, support for education in disadvantaged areas and many other programs the process of minimizing the impact on the environment through the brand's products Section 6: Conclusion Starbucks has proven that it is the number brand in the world with very "bold" marketing strategies Starbucks' marketing art is famous because it knows how to turn the simplest things into the most effective with the lowest cost - Advantages of marketing strategies of Starbucks coffee brand: + Starbucks builds and implements its brand strategy very well through its brand expansion strategies in breadth and depth, brand promotion and protection strategies to building corporate culture Karma All of the above strategies are closely related to each other and complement each other + Positioning the brand image of Starbucks Coffee as a business for the community through policies with employees + High speed of popularity and globalization With continuous brand expansion through product expansion and especially through market expansion campaigns, Starbucks Coffee brand has become one of the most valuable and best known global brands - Disadvantages of the marketing strategies of Starbucks coffee brand: 0 + Sometimes this brand has diverged and lost the core brand values and the "commodity" in the Starbucks brand Starbucks used to stand out for being modern, comfortable and unique in different markets But when Starbuck focused on plans to improve profits and expand store chains, the once prominent factors were no longer clear + Starbucks is rigid in entering new markets Products introduced in new markets are no different from products in the United States This results in a Starbucks that doesn't fit the local culture and habits PREFERENCES [ CITATION Cườ \l 1066 ] [ CITATION HEA19 \l 1066 ] [ CITATION Won \l 1066 ] [ CITATION MKT \l 1066 ] 0 ... focused on innovating its product mix to dominate the food and beverage market The company adds as well as modifies product lines with the aim of expanding market reach and increasing market share... stores in Hanoi and stores in Ho Chi Minh City and store in Binh Duong  In 2019, Starbucks chain's revenue reached more than VND 780 billion, up 32%, helping the world-famous coffee chain to be in. .. diversification strategy, while focusing on improving and innovating product quality to bring better experiences to customers Price Starbucks uses a premium pricing strategy In the marketing mix, this pricing