FINAL REPORT CONSUMER BEHAVIOR OF HIGHLAND COFFEE HCMC, Vietnam today stay in the second place in the ranking of top three coffee exporters and the production forecast to be growing year by year together with the exanding on coffee plantation area intil 2015. Besides, the coffee consuming in Vietnam also ranked high place in the ranking of coffee consumer in the world. Knowing the potential of Vietnamese market, coffee shop grow like mushroom after rain in Vietnam from famous brand like Starbucks, The Coffee Bean Tea Leaf to domestic brand such as Passio, Urban Station, Thuc Coffee and finally we chose Highlands Coffee for our assignment topic about Consumer Behavior. The reason why we chose this organization is that “ Highlands Coffee “ is one of the FB brand and also one of the most famous coffee chains in Vietnamese market and in the developing process.
FINAL REPORT CONSUMER BEHAVIOR OF HIGHLAND COFFEE HCMC, 23.08.2020 Instructors: Mr Nguyen Dinh Cuong Group: Dream Makers Members: Mã Các Tường Trần Thị Hồng Cẩm Nguyễn Thị Ngọc Mai Phạm Thị Mỹ Linh Phạm Ngọc Ánh Nguyễn Thị Thanh Phương Trần Trịnh Hoài Bảo Lý Bảo Thư DREAM MAKERS GROUP TABLE OF CONTENTS: I INTRODUCTION .3 A Rational B Consumer Behavior introduce .3 II BODY A Industry / Product background .4 The Coffee industry in Vietnam Brief introduction about the company Historical Development of the company .5 B Product introduction C In-depth interview D Respondents Background .6 Frist interviewer .6 Second interviewer E Key insight .7 Decision-Making perspective Product Choice: How Do We Decide? Interviewer evaluate of Highlands F Reccommend Promotion strategy Frequency promotion .9 Indication .10 III CONCLUSIONS 10 DREAM MAKERS GROUP I INTRODUCTION A Rational Vietnam today stay in the second place in the ranking of top three coffee exporters and the production forecast to be growing year by year together with the exanding on coffee plantation area intil 2015 Besides, the coffee consuming in Vietnam also ranked high place in the ranking of coffee consumer in the world Knowing the potential of Vietnamese market, coffee shop grow like mushroom after rain in Vietnam from famous brand like Starbucks, The Coffee Bean & Tea Leaf to domestic brand such as Passio, Urban Station, Thuc Coffee and finally we chose Highlands Coffee for our assignment topic about Consumer Behavior The reason why we chose this organization is that “ Highlands Coffee “ is one of the F&B brand and also one of the most famous coffee chains in Vietnamese market and in the developing process B Consumer Behavior introduce We this research with the purpose to study what the main customer of Highlands behave and thins In different process, including Decision Making process to find out what they look for at a coffee shop about the price, product, places and the spaces The next process it the produce choice: How we Decide? which study the behavior of a customer when standing in-front of a coffee shop menu to know how they choose, what they choose, what can make them notice us, … And the final stage it how the customer feedbacks on our branch to personally know what they like and don’t like about us and after three stages we going to give out recommendation promotion plan based on what we just studied from our target customers DREAM MAKERS GROUP II BODY A Industry / Product background The Coffee industry in Vietnam In Asia, Indonesia, Thailand and Vietnam are the fastest growing coffee markets in the world The boom in the Asian coffee market is fueled by innovations and innovations in coffee products Coffee exports in the first half of 2020 earned an estimated US$1.6 billion, a year-on-year rise of 2.5%, according to the Import-Export Department under the Ministry of Industry and Trade The volume shipped during the first six months of the year reached 955,000 tonnes, up 3.7% compared with the same period last year In June alone, Vietnam exported 140,000 tonnes of coffee worth US$237 million, an increase of 7.5% in volume and 7.4% in value compared to May The average export price of coffee in the January-June period was approximately US$1,685 per tonne, a year-on-year decrease of 1.2% The output volume grows accordingly, which promotes the processing, sales and export of coffee beans Coffee has formed a complete industry chain in Vietnam, which is also an important part of Vietnamese economy providing millions of job opportunities Presently, Vietnam forms strong production capacity of coffee bean rough processing and deep processing The designed rough processing capacity is 1.5 million tons/year, coffee bean baking and coffee powder processing capacity is 52,000 tons/year and instant coffee production capacity is 36,500 tons/year DREAM MAKERS GROUP Picture 1: Coffee export volumes worldwide in January 2020, by leading countries Brief introduction about the company1 Highlands Coffee is a trademark of Viet Thai International Joint Stock Company (VTI) Viet Thai International is a 100% Vietnamese joint stock company The main office is located in Hanoi and the transaction office is located in Ho Chi Minh City Founded in 1998 and focused only on packaged coffee, in 2002, the first Highlands Coffee cafe was officially launched Up to now, there have been more than 40 shops operating throughout Vietnam Highlands Coffee is confident in a sustainable future with the country's growth and growth Highlands Coffee always wants to bring customers the feeling of a traditional and immortal value Highlands Coffee strives to bring customers a sense of a part of the modern dynamic life in parallel with the unique and long-standing cultural traditions of Vietnam All of these things are evident in: Coffee culture: We are proud to serve Robusta coffee with Vietnamese style along with Arabica products with international flavor Service culture: Enthusiastic and considerate as "guest come to play" Historical Development of the company2 2000: Producing packaged coffee 2002: First store opened in HCMC 2018: 233 stores across Vietnam B Product introduction Product lines: Product line 1: Traditional Coffee Product line 2: Espresso Coffee http://www.highlandscoffee.com.vn http://www.brandsvietnam.com/17153-Chuoi-ca-phe-Highlands-Coffee-dan-dau-thi-truong DREAM MAKERS GROUP Product line 3: Freeze Product line 4: Tea Product line 5: Other drinks Product line 6: Highlands cans Product line 7: Instant coffee Product line 8: Coffee Bean Product line 9: Break Product line 10: Other food C In-depth interview Time issue: 7:30 pm Tuesday, August 12, 2020 Location: Highland coffee republic (Lotte cinema republic) Space: Infusing, vibrant, rhythmic Temperature: 20oC - 23oC Type of issue: Interview D Respondents Background Frist interviewer Name: Le Tho Nghia Sex: Male Age: 19 Occupation: RMIT university student (freshman) Income: 3.000.000 per month (only from part-time job) National: Vietnamese (former Australian exchange students) Cities: Ho Chi Minh City Life-style: Extrovert, Out-going Self-describe: An out-going person who loved to go out-side to try new different kinds of dishes and drinks Favorite coffee brand: Highlands, The Coffee House… but more into bubble tea Highlands customer relationship: years since high school to university Highlands frequency: 3, times per month (Always goes to Highlands with family, friends, acquaintances) Favorite Drinks of Highlands: Milk Phin coffee Second interviewer Name: Tran Trung Hao Gender: Male Age: 20 Occupation: IT (Singaporean student) DREAM MAKERS GROUP Income: 10 million / month (not including family) National: Vietnamese (former Singapore exchange students) Cities: Ho Chi Minh City Lifestyle: introverted, serious at work, sociable when staying with friends Self-describe: someone who has to drink coffee every week because of his job and is a loyal customer of Highlands Favorite coffee brands: Highland Coffee, The Coffee House, Starbuck, … Highlands customer relationship: year since internship to his current job Highlands frequency: 5-6 times a week (due to work) Favorite drink: Cookies and Creams E Key insight Decision-Making perspective Le Tho Nghia After doing research we can conclude that Nghia don’t usually make a research and he just go everywhere his friends goes Price: Nghia favorite price range is from 20.000 to 40.000vnd and he will accept higher price when he goes with his friends And he also loves Vietnamese street coffee with where a cup of coffee is low price and it can make you feel Vietnamese life-style Product: He like a simple cup of coffee but the cup of coffee must be healthy and have safe ingredients But he specializes the after taste, where some street coffee can make you feel the special taste of the coffee bean afterward He hopes the menu have to be diversity and colorful People: Nghia really appreciate a friendly employee who can make you feel like home And he prefers being serve than self-serve he thinks it make his money feel worth Place: Nghia like noisy place so that he can easily communicate or having a fun time with his friends And he wants the location at near at possible to malls, workplace, all of the fun place where a group of friends would like … Tran Trung Hao Price: Hao likes the price segment from 30 to 45 thousand VND and does not really pay attention to the price when he looks at the menu and he will accept for a higher price if he like the space and service Product: Hao does not pay much attention to what he drinks, so he often chooses the same drink with his preferences and does not have the habit of changing products and Hao especially likes large cups to enjoy in the long run The menu is also diverse and does not affect his decision because Hao often repeats his choice, if they run out of his favorite he will ask staff to introduce DREAM MAKERS GROUP Service style: Hao likes self-service to create a sense of comfort And the space has to be especially quiet and has a professional feel for easy concentration And Hao wishes the staff to behave professionally and properly Place: The place must be close and convenient to be easily moved to Hao usually does not have a thorough investigation when it comes to choosing coffee brand, but he will prioritize the location near his home and office, he often looks from the outside to see the space (preferring quiet, clean space to work) Hao focuses the most on two factors are space and location With space, as an IT staff, Hao especially prefers quiet space and for location must be convenience near his office and residential areas Product Choice: How Do We Decide? Le Tho Nghia Nghia usually spent half a minute or one to decide what to order when he see the menu But he mostly just re-order previous order from the last time he go to that same coffee shop When it come to the decision whether you prioritize price or product he will prioritize the price, but he still consider taste come into the room if the drinks he not like have low price he will looks for the new drinks Tran Trung Hao Hao does not spend a lot of time when stand in front of the menu he will often re-choose the usual Hao doesn't pay much attention to the order, but Hao thinks that if there are desserts on display next to the Hao counter, he will tend to order dessert Interviewer evaluate of Highlands Le Tho Nghia Highland coffee employee is really friendly, professional and they make he felt welcome But most importance they don’t created pressure of ordering like other places Highlands price is worth for it product Highlands drinks is really unique and have quite good taste Smart location always appears around hotspot But Highlands can-not created the after taste that he wanted as he expected Nghia said that Highland have really good original product Rated: 9/10 Ranking: 2/5 Why Nghia choose Highlands is because Nghia really like Highlands reasonable price, service and space of Highlands brand The drinks are good have the right price with university students and a fun space to easily communicate with DREAM MAKERS GROUP friends What Nghia unhappy about Highland: Highland haven’t used any environment friendly product Tran Trung Hao Price: The price is moderate, but Large size cup is too expensive for its size Product: Very satisfied with the taste and prepare time of Highlands (Cookies and Cream here are very delicious) Service: Professional staff, are up to his expectations of a national brands Space: Quiet and gives a professional feeling The reason for choosing Highlands: Hao appreciated High land's tactics of geographic segmentation and space arrangement The places that Hao used to work and practice have had Highland shops within a walking radius of 500m) Unsatisfied point: The price of a large size glass is too expensive compared to its size Rank (Lose a local brand right at the same house with the company) Appreciation in a coffee shop: Staff, Space and Geography Rate 8.5 / 10 F Reccommend Promotion strategy Customers tend to go out for coffee when invited by their friends, based on the psychology of going in large groups with friends, customers often want to focus on choosing to get a more economical and beneficial price rather than a bonus Therefore, Highland Coffee can provide promotion strategíe for group buying to motivate customers The Highlands Coffee proposal can apply programs such as group discounts, gifts for customers when buying more than 200.000d/ bill, buy get free,… In addition, Highland Coffee can create short-term campaigns to attract groups when there is a need to go to coffee such as: shaping packaging for products to checkin, creating photobooth check-in, check-in program to be get discounts for groups Frequency promotion Hao usually go to coffee to work regularly 5-6 times/week Therefore, it is very important that Highland Coffee has programs to promote and attract customers to come back Suggesting Highland Coffee can develop a point-of-sale application for customers, promotions if customers use Highland Coffee continuously for days, give Highland Coffee-branded gifts to remind customers of the brand row DREAM MAKERS GROUP Hao can work from morning to noon, to facilitate lunch, Highland Coffee can have Happy Lunch combos to serve customers Normally, Hao will sit at the coffee shop to work 3-4 hours, morning / afternoon Therefore, the Highland needs to pay attention to the position of the tables and chairs to create a comfortable feeling, quiet space, suitable music in the morning and afternoon, and add power outlets for the convenience of workers who need charging laptop or phone battery Working 3-4 hours, Hao will drink all the water he ordered and may need more water or order more Therefore, Highland Coffee should refill fresh water for free service or they can discount strategy when customers order a second drink of the day Indication Hao usually will not spend too much time on choosing dishes, so Highland should highlights for some special dishes on the menu, it avoids the case of customers being overwhelmed by too many items, and highlighting one number of items will help increase their favorite drinks and brand love of customers when coming to Highland The Highland proposal should eye-catching the menu design and include high recommend icons for customers, such as: best, new, must try, Hao also tends to order more when seeing desserts introduced or advertised by the staff at the cashier, customers will be forced to look at the cashier at checkout, that's when Highland Coffee banners to introduce new products/discounts/events that Highland wants to customers are impressed Recommended Highland to advertise banner at the cashier, mini banner on each table, login wifi Hao tends to find cafes near their location, therefore, Highland Coffee should combine running social advertising in around buildings, co-working space, schools, along with the posters advertising on elevators or certain locations in the above locations III CONCLUSIONS Through Hao and Nghia's interviews we discover the needs behind the customer choices The buying trend, the motivation when they go to drink coffee is not only because they have a need to drink coffee, but it can be influenced by friends, or the need to go to cafes to work Through qualitative interviews, we have drawn a number of key insights to help Highland Coffee make more effective marketing decisions and improve product quality DREAM MAKERS GROUP