(TIỂU LUẬN) INTERNATIONAL MARKETING theme name EXPORTING COFFEE OF TRUNG NGUYÊN ENTERPRISE TO THE GERMAN MARKET

BỘ TÀI CHÍNH TRƯỜNG ĐẠI HỌC TÀI CHÍNH – MARKETING KHOA MARKETING INTERNATIONAL MARKETING Theme name: EXPORTING COFFEE OF TRUNG NGUYÊN ENTERPRISE TO THE GERMAN MARKET 0 Hồ Chí Minh, ngày 22 tháng năm 2021 CỘNG HÒA XÃ HỘI CHỦ NGHĨA VIỆT NAM Độc Lập – Tự Do – Hạnh Phúc BIÊN BẢN HỌP ĐÁNH GIÁ MỨC ĐỘ HỒN THÀNH CƠNG VIỆC I Thời gian: 12h ngày 22 tháng 08 năm 2021 II Hình thức: Họp online III Thành viên có mặt: Đầy đủ IV Thành viên vắng mặt/Lý do: Khơng có thành viên vắng mặt V Chủ trì họp: Trương Tơn Anh Thi VI Thư ký họp: Vũ Ngọc Thái VII Kết đánh giá thông tổng hợp sau: STT Họ tên MSSV SDT MĐHĐ Trương Tôn Anh Thi 1921005673 0965295697 100% Vũ Ngọc Thái 1921005653 Đặng Văn Đăng 1921005381 Nguyễn Thanh Nguyên 1921005568 100% 0364792985 100% 100% Buổi họp đánh giá kết thúc vào lúc: 24 00 phút ngày Thư ký (ký ghi họ tên) Nhóm trưởng (ký ghi họ tên) Trương Tôn Anh Thi 0 TABLE OF CONTENT I EXCUTIVE SUMARY II SITUATION ANALYSIS Market size: 2 Growth: .2 Market trend SWOT: .4 Competitor analysis 5.1 Direct competitor .5 5.2 New competitive force .9 III EXTERNAL ENVIRONMENT Political Economic .9 IV IN ENVIRONMENT 11 Threat from new competitors: 11 Power of supplier: 11 Threats from substitute products and services: .11 Power of customers: .11 Fierce competition of competitors in the same industry: .12 V TARGET MARKET DESCRITION 12 1.International market segment 12 2.Market target 13 positioning 13 Market Entry Strategy 14 4.1 Penetration through normal export 14 4.2 Penetration through franchising 14 VI INTERNATIONAL MARKETING GOALS & OBJECTIVES 14 0 1.Marketing goals .14 International Marketing Objectives: .15 VII MARKETING PROGRAM .17 Product 17 1.1 Value Propositions 17 1.2 Branding 18 1.3 Package 18 Price: 20 Promotion 21 PLACE 23 VIII EVALUATION, MEASUREMENT AND CONTROL 23 1.Evaluation 23 Measuring marketing 24 IX ACTION PLAN 24 Conclusion 28 0 I EXCUTIVE SUMARY About Trung Nguyen company Born in mid-1996 - Trung Nguyen is a fledgling coffee brand in Vietnam, but has quickly built up a reputation and become the most familiar coffee brand for both domestic and foreign users In just 10 years, from a small coffee company located in the middle of the coffee capital Buon Ma Thuot, Trung Nguyen has risen to become a powerful corporation with member companies: Trung Nguyen Joint Stock Company, a joint stock company Trung Nguyen instant coffee, Trung Nguyen Coffee Co., Ltd., G7 Trading and Service Joint Stock Company and Vietnam Global Gateway (VGG) joint venture company with industries including: production, processing, trading tea and coffee; the per permissions and the analysis of Service, selling to resellers In the future, Trung Nguyen Group will develop with 10 member companies, dealing in a variety of industries Pioneering in applying the franchise business model in Vietnam, now, Trung Nguyen has a network of nearly 1,000 coffee shops nationwide and foreign coffee shops such as the US, Japan, Singapore, and Thailand , China, Cambodia, Poland, Ukraine Trung Nguyen coffee products and G7 instant coffee have been exported to 43 countries around the world with key markets such as the US and China Besides, Trung Nguyen has also built a system of more than 1000 convenience stores and G7Mart distribution centers nationwide Vietnam is the second largest coffee exporter in the world Particularly for Robusta coffee, Vietnam has an export output of up to 11 million tons per year, leading the international market From 2020, although the global economy is affected by the COVID-19 pandemic, the demand for coffee consumption has not decreased but is on the rise But there is a fact that Vietnam is exporting green coffee mainly This is a weakness that makes the commercial value of this item not high compared to the quantity Currently, the international market is especially fond of roasted and ground coffee, instant coffee processed coffee lines Therefore, to meet this demand, our country's coffee enterprises need to invest in processing to increase the value of coffee products Trung Nguyen's powdered coffee, instant coffee, Trung Nguyen not only dominates the domestic market but is also welcomed in many regional markets, and has initially built a Vietnamese coffee brand In addition, with the active support of ministries and branches in 0 improving processing capacity, expanding markets, reorganizing exports, etc., with the initiative and efforts of enterprises Vietnam in promotion, marketing and brand positioning will help Vietnamese coffee products increasingly assert their position in the international market According to preliminary statistics of the General Department of Customs, in the first nine months of 2019, the whole country exported nearly 1.3 million tons of coffee, earning nearly $2.2 billion, down 13% in volume, down 21% in terms of turnover Import and export situation of Vietnam in December and 12 months of 2020 ThongKeHaiQuan : Vietnam Customs (customs.gov.vn) The average export price of Vietnamese coffee is $1,718/ton (equivalent to about VND 39.5 million/ton, down 9.6% in price over the same period in 2018 Notably, Vietnam's coffee exports are exported The most to the German market reached nearly 185,300 tons, equivalent to more than 289 million USD, accounting for over 14.6% of the total volume and accounting for 13.3% of the total coffee export turnover of the country Vietnamese coffee is suddenly the most consumed by Germans | Economics | PLO => Based on those advantages, we continue to export Trung Nguyen roasted coffee products to the German market to enhance the position of the coffee market in the German market, but along with that, it is a huge profit from the German market in particular and Europe in general II SITUATION ANALYSIS Market size: -The German coffee market reached a value of USD 7,744.96 million in 2019 and is expected to grow significantly in 2025, reaching a CAGR of 3.09% during the forecast period (20202025) - In Europe, Germany is the largest country in terms of coffee consumption, with per capita consumption reaching about 6.5 kg Strong demand for freshly brewed coffee is driving sales in market research Furthermore, consumer demand for specialty coffees is growing due to increasing awareness and knowledge of the product Another factor contributing to this trend is the increase in the number of cafes, small residential brands, small roasters and bartenders Furthermore, consumers have initiated a new trend of home roasting 0 Growth:  Coffee consumption in Germany remains stable  The market for specialty coffees in Germany is growing and presents opportunities for suppliers of high-quality coffee The specialty coffee segment is a niche market but requires high quality – high value  Germany, Italy and France are the largest coffee consumer markets in Europe  The German market in particular accounts for about 20% of total European coffee consumption, followed by Italy (13%) Other major coffee consumer markets are France (13%), Spain (8%) and the UK (8%) (ICO, 2016) The ICO emphasizes that the EU is a single market and cannot pinpoint exactly where imported coffee is consumed  Germany was the largest direct importer of green coffee from developing countries in 2016, accounting for 35% of total European green coffee imports (1.1 million tons)  Germany has a large coffee roasting industry and most green coffee is shipped through the port of Hamburg, the largest coffee transit point in Europe The port of Bremn is also used as a coffee docking point in Germany The major German coffee roasters are Tchibo, Melitta, Jacobs and Dallmayr Market trend  Consumer trends towards home-brewed coffee, from whole roasted beans, often lead to the preparation of fresh batches of coffee Furthermore, the trend of coffee consumption in the workplace is prominent in Germany  According to Beverage Business World in 2019, Germany is the leader in office coffee consumption It was valued at EUR 725 million, with an average growth of 3%, in 2018 Key players love to serve freshly brewed coffee, made from whole roasted beans, especially in office spaces , mainly due to the growing demand for whole roasted coffee This greatly increases the sales of roasted coffee 0 picture Sale of Roasted coffee by Segment type  Arabica Coffee is the Largest Segment in the German Coffee Market Germany is one of the main importers of green coffee German consumers prefer light, high-quality roasted Arabica coffee Arabica beans stand out to German consumers, compared to robusta SWOT: - Strength: + Germans love to use roasted coffee + Trung Nguyen coffee brand is international + Technology, coffee flavor of Trung Nguyen is extremely special in the market - Weakness: + The efficiency of the distribution channel in the German market has not been maximized - Opportunity: + According to the EVFTA agreement, exports from Vietnam to Germany will enjoy many incentives + Germany is the coffee roasting center of Europe + The German market has to import coffee, especially in Brazil and Vietnam 0 + The domestic coffee market in Germany has many loopholes + Expanding the market in Germany - Threats: + Brazil is trying to export a large amount of coffee to the German market + Indonesia is targeting the coffee export market to Germany + There are many domestic and imported coffee brands in the German domestic market + Entering a new market, factors such as capital, knowledge, and interests are the things that determine quite a lot in the existence of a business Competitor analysis 5.1 Direct competitor Today's coffee production and export industry has a high level of competition, from foreign competitors to domestic competitors having the ability to penetrate the market that the company is aiming for Here are some comparisons of potential industry competitors: NESCAFE Nestlé Vietnam, for many years in a row among the leading sustainable development enterprises, not only performs well in business activities, creates jobs, contributes to the state budget but also actively contributes pole for initiatives and programs for social development and environmental protection and community development As part of that common goal, the company strengthens its image and brings products of sustainable origin, made in Vietnam with the NESCAFÉ and MAGGI brands to many countries around the world Dallmayr Prodomo German Coffee 0 This is the best rated German coffee in 2020 because it retains the natural and sweet taste that anyone would love to feel It is presented in ground coffee form, so all you need is to grab some and use the best coffee grinders, your coffee will be ready Furthermore, it comes in a pack of six, with each weighing 1.1 pounds The reason why like this coffee is because it contains 100% Arabica so can be considered good for your health Produced by a trusted brand in Germany, you want to experience any health complications when drinking coffee because the coffee is pure and carefully crafted to meet everyone's needs, with no hidden chemicals or ingredients with no value Dallmayr Decaffeinated German Roast Coffee Caffeine has been known to be a quality stimulant that, at the time, can affect you when taken in large quantities As a result, Dallmayr takes extra measures to ensure their coffee is decaffeinated without losing the flavor and aroma of the original coffee Moreover, coffee is obtained from the Central Highlands Arabica tree It configures only the best farms in the world using proprietary farming methods, thus ensuring pure and natural coffee From the best coffee reviews available online By far, decaffeinated Dallmayr ground coffee is the best coffee without bitterness and irritants What's more, the coffee is produced in Germany according to Good Manufacturing Practices in the bodies that comply with the Industrial Park Barissimo German Ground Coffee The company strives to guarantee 100% customer satisfaction by only producing the best quality that meets 0 • Secondary Package: The product packages will be preserved inside and displayed in a cylindrical cardboard box, the body is white with metalize and still has the image of King Napoleon as the center Above is the logo of Trung Nguyen coffee and the words affirming the position "The No.1 Coffe!" On both sides, are the stories and philosophy of the corporation along with contact information as well as quality criteria and preparation methods The black box lid with Embossed Creative logo exudes elegance and sophistication • Shipping package: It is a carton with a weight of 6kg including 12 boxes of 500g type The front of the box is Trung Nguyen logo, the words "Creative 8" are bold with eye-catching fonts and the image of King Napoleon to attract customers Above and below are brand affirmations and definitions the group's distinctiveness In addition, there is information and barcodes to serve the transportation process 1.3 Labelling Logo: 0 The logo of Trung Nguyen Legend uses main colors including black and white to create a harmonious and static whole In particular, the circle of the logo is a creative improvised brush stroke like bringing a strong coffee soul to life In the center, is a circle drawing the sun as life, representing the supreme being with rays of light representing the basic elements of the universe: Heaven, Dam, Fire, Thunder, Wind, Water, Mountain , Soil Not only that, the light from the central sun also has the meaning of illuminating and dispelling bad gases The symbols of the sun, the moon and the heart are alternating, corresponding to the rays of the sun, symbolizing the laws of the universe and the laws of emotional movement and harmony The heart symbol represents Mind - Goodness - Goodness and the sun and moon symbol symbolizes the balance of the universe The bars in the overall circle represent the energies of Creation, Wealth, Success, Happiness and Love Below is the image of the only red arrow that makes the logo stand out, the arrow pointing up represents Trung Nguyen's will to conquer the top and aspiration to develop and rise The white lines on the logo represent the entrance to the stilt house with bold cultural identity of the Central Highlands Finally, there is the text of the group's name and the affirmation of Trung Nguyen's first-class positionProduct’s support services With a new product entering the German coffee market, Trung Nguyen Legend can provide a number of support services such as: • Set up an additional German language or create a country-specific website domain to be able to assist with your product inquiries • Taking advantage of coffee exhibitions of the German Coffee Association, Trung Nguyen can attend and support customers to enjoy and taste coffee from Creative products Price: When launching Trung Nguyen's Creative Coffee (Box 250gr, 500gr) into the German market, phase 1: we implemented a market penetration pricing strategy in the first months of the first year; Phase 2: we use skimming pricing strategy 0 Timeline: September 1, 2021 - March 1, 2022: Market penetration pricing strategy - After March 1, 2022: Market skimming pricing strategy When we first entered the German market, we found that the brand awareness of consumers in Germany was still quite weak, so we used the market penetration pricing strategy to increase the brand awareness of Coffee Trung Nguyen coffee After seeing the increase in brand familiarity among consumers in Germany, after months, we applied a market skimming strategy because Creative 8's target audience is the civilized people The room has a hobby of drinking roasted and ground coffee, so most of them have a stable income => Through extremely good product quality and suitable for German coffee taste, they will be willing to pay these prices State 1: -The initial price when bringing Creative (box of 5000gr) to the German market is 17 Euros equivalent to 459,000 (VND) -The initial price when bringing Creative (250g box) to the German market is Euros equivalent to 240,000 (VND) Phase 2: -With the initial price when bringing Creative product (box of 5000gr) to the German market is 20 Euro equivalent to 544,000 (VND) -The initial price when bringing Creative (250g box) to the German market is 12 Euros equivalent to 330,000 (VND) Table 1: Staged Pricing Strategy 250 ( gr) Giai đoạn Giai đoạn (11/9/2021 - 1/3/2022) ( Sau 1/3/2022) Euro 12 Euro 0 500 ( gr) 17 Euro 20 Euro FIGURE 1: Creative Product (500gr) FIGURE 2: Creative Product (250gr) Promotion For Trung Nguyen coffee, the taste of coffee that is perceived by users is very focused and has been loved by many people Therefore, Trung Nguyen's advertising strategy needs to highlight this characteristic in all types of advertising Besides, Trung Nguyen's slogan "Creativity" is engraved in the hearts of those who enjoy Trung Nguyen coffee Advertising through the media Internet advertising is considered the most effective marketing tool We all know: the amount of people interacting on the Internet is huge Every minute that passes, thousands of people access the Internet Why don't you take advantage of this opportunity Businesses can 0 advertise their coffee on Youtube, Facebook, Zalo, Google, etc What the business needs to is: find a reputable unit in the field of Online Marketing, then propose a marketing plan for the product Marketing experts will help you implement this option Direct advertising Let your customers try it right at crowded places such as shopping malls, parks, etc At the same time, distribute product information leaflets Distributing flyers is the simplest and cheapest form of advertising today It works in the case of: a new coffee brand opening, or running a promotion This helps customers feel the taste when using right at the advertising point Promotion: Buy get free Coffee products "creative 8" when buying more than packages will be given a cup with Trung Nguyen logo This program will apply to most retail stores in Germany In order to stimulate the purchase of customers to use Trung Nguyen coffee products Next, promote Trung Nguyen image through the cup, although it is small, it is quite a necessary item in every house At the same time, I can see Trung Nguyen's care for his customers In addition, Trung Nguyen Coffee will sell a ceramic filter for customers who buy boxes (500gr) or boxes (250gr) at the same time with a preferential price of 4.5 Euro (120,000 VND), giving a feeling of ownership Own a special item of Trung Nguyen Brand PR activities: 0 Trung Nguyen will coordinate with a number of media companies to organize activities to continuously transmit information about the business's coffee production, which can be mentioned in a number of events such as: Marathon, tourist car, charity surgery split … Each event will contribute to the environment, besides, the image enhancement in the eyes of customers will be enhanced A friendly image also brings a lot of success to the business Trung Nguyen coffee products at Trung Nguyen retail points will be discounted 2-5%/product before launching to increase traffic and attract potential customers At the same time, to gain market share in the German market easily compete with other products PLACE Two locations Trung Nguyen coffee aims to: - Two target supermarket chains for Trung Nguyen Coffee • Edeka: Edeka is Germany's largest supermarket chain and has about 4000 stores nationwide It is similar to Rewe in offering a wide range of products on a daily basis Like fresh fruits, vegetables, bread, milk and some other canned goods Larger branches also provide essential household items Such as soap, towels, personal items and even stationery, kitchenware • Rewe: Also one of the largest supermarket chains in Germany with about 3300 stores in the country It offers a wide range of good quality products Covers most branded products in Germany Rewe offers a wide range of products, especially food groups Includes fresh, dry and canned, ready-to-eat foods (The experience of going to a supermarket in Germany is "good" like a local « AMEC) - The second is to provide roasted and ground coffee ingredients for take away coffee shops => In a position of quality products, ensuring safety, Trung Nguyen coffee needs to create a position, a foothold in the German market, ensuring it is sold on the shelves of all large supermarkets to show brand value and product quality That is the reason that Trung Nguyen coffee does not provide a large number of products at cheap prices VIII EVALUATION, MEASUREMENT AND CONTROL 1.Evaluation Through Trung Nguyen coffee's strategy to penetrate the German coffee market, we can evaluate the factors that need to be promoted and improved: - Regarding products, it is necessary to improve the quality, improve and develop the process of processing coffee beans in a modern way, more in line with the criteria of the consumer market in Germany 0 - The price of the product is reasonable and suitable to the standard of living and the value of the product If there is a change, it is necessary to raise the price to confirm the quality of coffee products and at the same time position the brand for Trung Nguyen coffee on the world market in general and the German market in particular - Promotion needs to implement many programs to spread with the community, focusing on communicating the message and product value to the target customer segment in the best way - Place needs to expand its marketing market over time, evenly distributed in developed regions in Germany2.Measurement Measuring marketing effectiveness is the key to optimizing all processes, and especially in marketing campaigns When you can define and measure KPIs for your marketing campaigns, you can see what works and what doesn't From there, businesses can distribute their budget in the most efficient way and achieve success Metrics to be taken into account: In the first year: #1 ROI – Return on Investment: Roi = Sales revenue - Budget spent)/Budget spent = 7,190,000-5,550,000/5,550,000 = 0.29 - Through the ROI ratio Trung Nguyen Coffee needs to cut a few more budgets to be able to increase the ROI rate so that the investment through sales is highly profitable #2 CPW – Cost per order: CFW = Budget spent / orders = 5,550,000 / 370,000 = 15 (Euro) - Through the cost per order, the cost per order is still high, compared to the selling price of the product, so we need to cut down the unnecessary spending budget and try to optimize the channels distribute and advertise products to increase the number of orders in the near future To optimize profits Control To stick to and pursue the goals set out when bringing innovative products to the German market TrungNguyenLegend uses the company's resources to control specific issues such as Sales, Market share, Marketing expense to sales and finance, which will be summarized by the finance and accounting departments after each year of operation and submitted to them 0 presented to the board of directors for consideration Then, we will compare the results with the target expectation to see the difference and then find solutions to shorten this difference IX ACTION PLAN Timeline Program September - “We’re November Nguyen” (2021) “Hello December (2021) - Friends” March (2022) Activities Budget Trung -Participated in the seminar “IT'S € STARTING AGAIN! COFFEE MEETS 30.000 UNIVERSE - DATA, TRENDS & REUNION” and “UPDATE SUSTAINABILITY: NEW DATA, NEW PROJECTS, NEW FINDINGS” organized by Germany Coffee Association to understand the German coffee market in 2021-2022 and analyze the market New -After the market report is available, € during this period Trung Nguyen Legend 250.000 will start a campaign to bring Creative products into Germany and distribute them in large supermarkets -Accompanied by "self-introduction" activities by marketing on social networking platforms Facebook, Twitter, Instagram, and promotions, gifts in sales April (2022) July (2022)  “Together With Us” - In this campaign, with the aim of € increasing brand awareness Trung Nguyen 350.000 Legend will focus on marketing by sponsoring programs in Germany such as "X Factor (Germany)", "Sharktank Germany", "League of Legends" Tournament” And other social activities such as “Marathon Germany” and 0  “Creative Beginnings” “DMEXCO” - Creating with Trung Nguyen must be a campaign that has resonated both at home and abroad This activity is intended to increase the brand awareness of Trung Nguyen roasted coffee “Developing - Capturing” August (2022) October (2022) and After the campaigns have been € implemented, this period Trung Nguyen 300.000 Legend will focus on growing revenue and market share in the whole German coffee market Below is the sale forecast from 09/2021 to 10/2022 is based on TrungNguyen’s revenue growth in 2019 to 2020 Product unit: box (500gr) It’s revenue and profit of the first year with an expectation of 10% annual growth revenue and 5% profit, we estimate revenue and profit for the next years Sale forcast table in 1st year 09 - 11/2021 12/2021 03/2022 - 04 - 07/2022 08 - 10/2022 Sales Revenue Forecast Number sold of product 20.000 50.000 100.000 200.000 Price per unit (500gr) 17 EUR 17 EUR 20 EUR 20 EUR Total Sales 340.000 EUR 850.000 EUR 2.000.000 EUR 4.000.000 EUR 11 EUR 11 EUR 11 EUR 11 EUR Cost Of Sales Cost per unit 0 Unit sold 20.000 50.000 100.000 200.000 Total Cost 220.000 EUR 550.000 EUR 1.100.000 EUR 2.200.000 EUR Engine 25.000 EUR 35.000 EUR 35.000 EUR 35.000 EUR Event, Pr 30.000 EUR 50.000 EUR 200.000 EUR 100.000 EUR Promotion 50.000 EUR 200.000 EUR 120.000 EUR 150.000 EUR Total 105.000 EUR 285.000 EUR 355.000 EUR 285.000 EUR 30.000 EUR 60.000 EUR 120.000 EUR 240.000 EUR (15.000 EUR) (45.000 EUR) 425.000 EUR 1.845.000 EUR Expense Marketing Search Marketing Cost Of Importing & Exporting Total Profit Total Estimate Revenue and profit in next years 1st year 2nd year 3rd year 4th year 5th year Revenue 7.190.000 EUR 7.909.000 EUR 8.670.000 EUR 9.570.000 EUR 10.527.000 EUR Profit 2.436.500 2.558.000 2.686.000 2.820.600 2.320.500 0 EUR EUR EUR 0 EUR EUR Conclusion During the process of researching and researching about the German market to export Trung Nguyen coffee products, the writer learned more about the practical knowledge in the business activities of Trung Nguyen coffee producers in particular and the coffee export industry in general In the increasingly competitive production business situation, Trung Nguyen has and is having problems that need to be resolved In which, the marketing strategy is the top issue Proper strategic planning is essential in a fiercely competitive environment Through the above analysis of the topic, the author wants to bring a more in-depth look at marketing strategies, export strategies of enterprises, macroeconomic and micro-economic situation; From there, give clear strategies to contribute to business development in exporting to foreign countries Although the proposed solutions have data deviations due to the subjective nature of the topic, it is hoped that the topic will bring a lot of practical value to the company and bring many desired effects, complete more than marketing strategy to achieve more business achievements, improve overall quality 0 REFERENCES 1) https://baodautu.vn/gan-300-tan-ca-phe-viet-len-duong-sang-chau-au-huong-thue-0d129678.html 2)http://connectviet.moit.gov.vn/default.aspx? page=news&do=detail&category_id=66&id=5559 0 DRAWING TEST 0 0 ... competitor in the roasting coffee market for Trung Nguyen coffee in the German market Brazil is a major coffee export market in the world and a major competitor in the Vietnamese coffee export market. .. Nguyen roasted coffee products to the German market to enhance the position of the coffee market in the German market, but along with that, it is a huge profit from the German market in particular... Expanding the market in Germany - Threats: + Brazil is trying to export a large amount of coffee to the German market + Indonesia is targeting the coffee export market to Germany + There are