Marketing the coffee house edited

PART A ANALYSIS OF MARKETING MIX STRATEGY OF THE COFFEE HOUSE Product The Coffee House's essential products: Initially, The Coffee House provided coffee products Because at first, The Coffee House only offers coffee drinks to satisfy the core needs of customers when they come to the cafe: they enjoy coffee The Coffee House Blend is a separate blend of coffee served at The Coffee House chain The roasted and blended formula of The Coffee House's Arabica and Robusta beans creates a balanced whole of bitter, sweet, and sour taste, which makes the coffee strong and aromatic ARABICA seeds come from The Coffee House farm in Cau Dat, the soil to grow the best Arabica coffee beans in Vietnam ROBUSTA seeds of The Coffee House are selected from the most reputable Robusta suppliers in Vietnam from the Central Highlands (Dak Lak, Gia Lai, Lam Dong) However, in their brand development roadmap, The Coffee House realized that they could also attract a large number of customers who not love coffee but want to experience and stick with The Coffee space House, The Coffee House created the motto: "Go to coffee but not necessarily to drink coffee" F&B is a very competitive industry due to a wide range of substitutes Therefore, it is common for stores to improve their menu continually The Coffee House is no exception In addition to the famous coffee, the brand also develops many other products, tea & macchiato, ice-blended drinks, fruit drinks In Starbucks' marketing mix strategy - the P for the product Starbucks continually innovates its products to match the unique and creative needs of customers in different countries Starbucks coffee types will be divided into groups with different criteria, including: Sort by coffee beans: whole coffee beans, roasted coffee beans Sort by roasting: roasted coffee (blonde), medium roasted coffee (medium), carefully roasted coffee (dark) Sort by caffeine level: regular coffee (containing caffeine), and decaf coffee (caffeine removed) Sort by taste: flavoured coffee and flavourless coffee In addition to the above criteria, Starbucks also develops other product lines suitable for a large number of customers who are not connoisseurs of coffee or who prefer not to drink coffee but wish to experience Starbucks's coffee space Additional development products such as fruit tea - Teavana iced tea and seasonal product lines, limited edition, and festive occasions like Christmas and Valentine With the strategy of developing creative and flexible product lines, Starbucks always brings fantastic products, which customers are eagerly waiting Thereby we see both brands of The Coffee house and Starbucks though different product criteria but the same goal to satisfy the needs of every customer whether or not they love coffee or not when coming to the brand Price Price list of some products at The Coffee House: Product Price (VND) Caffè Americano 39,000 Cappuccino 45,000 Milk coffee 29,000 Mocha 49,000 Macchiato Roasted Rice Tea 48,000 Macchiato matcha tea 45,000 Lemongrass lemon juice 49,000 Peach blueberry ice blended 59,000 Mango orange smoothie 59,000 Salted egg sponge cake 29,000 Tiramisu Cake 29,000 It can be said that Vietnam's coffee market is divided into many clear segments, and every sector has large businesses involved Accordingly, the office segment has Highlands Coffee and Trung Nguyen and foreign brands such as Starbucks Coffee The youth or teen segment is the presence of Urban Station and Passio According to Hai Ninh - Founder of The Coffee House brand: although jointly pursuing each other in terms of the number of stores, the brands are far apart in price The average price of Urban Station and Passio ranges from VND 15,000 to VND 40,000: from Trung Nguyen and Starbucks Coffee, from VND 40,000 to over VND 90,000 The price gap from 30,000 to under 60,000 VND, this is the market of The Coffee House In terms of customers, The Coffee House is a combination of Highlands Coffee and Starbucks Accordingly, The Coffee House is aimed at customers who have gone to work, have travelled, like to experience luxury cafes at localized prices One of the most successful strategies of The Coffee House is the Launching strategy of joining exactly, "the right person at the right time" Back then, Vietnamese people were accustomed to sitting on coffee, but at a high price from brands like Starbuck, the price range of 30,000 - 60,000 VND with a "Western" style restaurant is still open It is for this reason that the strategy of market penetration has been carefully studied by globalization to fill that gap The price strategy used by TCH is entirely correct; customers can experience a spacious, comfortable and sophisticated space - not inferior to foreign giants such as Starbucks for only 30,000 - 60,000 VND It is one reason why many young people become loyal fans of this store chain For Starbucks, the price of each product is priced based on the value of the product Starbucks said that they provide high value to customers, both tangible and intangible.t Tangible value is the quality of the product, from carefully selected and rigorous coffee beans by a well-trained staff Intangible values are the experiences and emotions that customers are immersed in an authentic coffee space Starbucks' marketing mix in Vietnam is based on consumer behaviour Customers always tend to think that: Expensive products have a higher value; high-end brands will be reputable and create more quality products Place The Coffee House uses a direct sales distribution channel model A stamp imprinted on the minds of customers, also a trait that makes people curious, is the continuous opening of The Coffee House, appearing dense in big cities, considering the location that is always located at easy-to-find location, central facade, possesses eye-catching street view to create convenient comfort for customers Up to now, The Coffee House has reached 160 stores covering 14 provinces and cities which are usually big cities, most of which are concentrated in Ho Chi Minh City and scattered in other provinces such as Hanoi and Nha Trang Trang, Vung Tau In addition, The Coffee House operates its delivery team from the call centre staff to the specific delivery staff who are deploying delivery services in the city via the Website thecoffeehouse.com and the phone app The Coffee House, in cooperation with the only food delivery app, Lala, and appear only on the Now app but only in places with a small order flow like Da Nang and Can Tho Place in Starbucks' marketing mix in Vietnam is a story about where customers can own and enjoy its products Building direct and personalized relationships is a guide in Starbucks' distribution strategy With this criterion, Starbucks developed cafes with beautiful coffee space, through Starbucks App and retailers Adapting to the development of technology, Starbucks develops an ordering application through the Starbucks App, allowing customers to place orders anytime, anywhere In addition, this brand also cooperates with hotels, airports and coffee shops in areas for office workers Only that much, we can see that Starbucks coverage is enormous, customers can easily own Starbucks products and help Starbucks maximize profits Thereby we see that Starbucks owns a more diverse distribution channel system than TCH, so the ability to reach and make a mark in the minds of customers is also better Promotion * Marketing online Advertising (mostly digital marketing): • Facebook marketing: The fan page of TCH has nearly 500,000 followers with exciting and interesting posts about promotions, articles about new product launches, or individual occasion wishes posted in Golden hour frames suitable for young people • Youtube: With more than 2.87 thousand subscribers, and videos of creative change that have captured the hearts of customers • Website: TCH has a beautifully designed, beautiful website Besides, the use of tools like Google AdWords makes it easier for TCH to reach customers * PR activities TCH has a lot of community activities that contribute to society and help businesses bring their brand to customers Some specific activities are as follows: + The Coffee House X Library Project: Library of children books + The Coffee House X To he project: Helping needy children + The Coffee House Sticker Project: Greening Cau Dat + The Coffee House Vulcan Project: Nurturing the dream of people with disabilities + The Coffee House accompanies UPRACE - Steps to run for the community + The straw reduction campaign at The Coffee House - "Thank you for refusing to use straws" * Promotion activities and customer appreciation - Promotion activities: Many attractive promotions, vouchers are valid for the frequency of thick - Customer Gratitude - Bean Accumulation: BEAN - a brand new unit for accumulating points at The Coffee House Rewards 3.0 -Keep membership - New benefits While TCH's competitors, Starbucks is one of the most innovative and innovative brands for media, advertising, promotion, event organization The most seasonal activities of Starbucks include events, special promotions, logo printing on beverages, fish utensils, drinking glasses, thermos and collaborating with brands and influencers Limited editions One of the most innovative forms of Starbucks promotion is Gift Card, to attract customers who have never used the service This program is for friends of former customers, and the company uses the same customers to advertise for free With over 27 million fans on Facebook alone, and more than million followers on Twitter have proven how Starbucks has a large number of customers, brand power at the top of the F&B industry worldwide The human factor in service - People The Coffee House CEO Nguyen Hai Ninh said that the first customer he met was not the CEO, but the salesperson, the number of customers he met and talked to the CEO with his fingers Therefore, The Coffee House always pays attention to the quality of employees when recruiting The training of a good salesman is one of the keys to retaining customers, not just quality and price Customers are an indispensable element in helping to spread the brand of the business The target customers of The Coffee House are students and working, travelling They use coffee not only for drinking, but they also enjoy, socialize, network, network, work And Starbucks has built a platform to foster relationships, always putting employees first, encouraging employees to form close relationships Considered a "partner" rather than an employee, even part-time employees (in the United States) receive stock options and health insurance Former company president Howard Behar believes that employees who feel cared for will care for their customers Process Welcome customers • • • Take orders Make beverages • Complete and display Payment Customer serving • Bring beverages, bread / pastries to guests Get the orders Different stores will have different sizes, so the service process, as well as the number of employees in each shift, is also different The above is the general process at The Coffee House stores that customers experience Online ordering process: With just a few simple steps, you can enjoy the delicious and delicious drinks of The Coffee House Fill in the receiving Up to 30 minutes you information (name, Take your favourite phone number, shipping address) will have your Payment after favorite drink right receiving the drink away When customers call, Delivery Service - Delivery of The Coffee House will serve customers: The employee confirms the The staff will pick up the phone order and requests the receiving You should confirm the Up to 30 minutes you will have Payment after receiving the to receive the request information (name, phone information again your favorite drink right away drink number and receiving address) For Starbuck, the service process at the store is almost similar to The coffee house Service process in distribution channels of sales through Starbuck App As follows: Sign up for a Starbuck App Log in to your Starbuck App account Choose your Complete the favorite food order Receive Through comparison of service processes, we see in the current context and the trend of consumer behaviour, the brands have a direct service process in stores quite similar The physical element of service marketing - Physical Evidence • External factors: - Design: From the outside looking at any store of The Coffee House, the front of the shop is using glass, striking with the orange-black tone typical of the shop - Signboard: The name of the restaurant 'THE COFFEE HOUSE' is large and bright, clearly located - Logo: designed prominently by white letters on an orange background; this is also the dominant colour tone of this store chain • Internal factors: - Design: creating a "home" feeling as possible, making you feel like you belong here no matter who you are - Devices: Dispensers are located in the area behind the order counter TCH uses glass for guests to drink on the spot All customer service items have the name of the restaurant, 'THE COFFEE HOUSE', which is exclusively designed from cup holders, plates to pads Not only serving individual drinks but also cakes and bread to eat should have a cake display cabinet for guests to choose easily • Other factors: School uniform: Shirts and pants are the primary colour black, the left chest has the name of the white 'THE COFFEE HOUSE', uniformed from a waitress, bartender to security guard Brochure: designed to introduce new products or all items in the menu of the restaurant Starbucks offers a combination of product and service and I think it really does a good job in giving customers the best experience, so that they want to try it again and again Customers pay not just for cup of coffee or tea, but for overall enjoying their time When you enter the café you see clean, friendly environment, with cozy chairs, sofas, tables, book shelves, bright and “tasty” show case with those alluring pastries, menu with tempting coffee pictures… you see smiling welcoming staff in those green uniforms with Starbucks logo, you hear nice music which complements the atmosphere of the “place to be” ... delivery services in the city via the Website thecoffeehouse.com and the phone app The Coffee House, in cooperation with the only food delivery app, Lala, and appear only on the Now app but only... The price gap from 30,000 to under 60,000 VND, this is the market of The Coffee House In terms of customers, The Coffee House is a combination of Highlands Coffee and Starbucks Accordingly, The. .. Helping needy children + The Coffee House Sticker Project: Greening Cau Dat + The Coffee House Vulcan Project: Nurturing the dream of people with disabilities + The Coffee House accompanies UPRACE