MINISTRY OF FINANCE UNIVERSITY OF FINANCE MARKETING MARKETING MANAGEMENT MARKETING MANAGEMENT MARKETING PLAN THE COFFEE HOUSE Member of group 2021702006010 Võ Thị Hoài Thương 1921005692 Dương Nguyễn A[.]
MINISTRY OF FINANCE UNIVERSITY OF FINANCE - MARKETING MARKETING MANAGEMENT MARKETING MANAGEMENT MARKETING PLAN THE COFFEE HOUSE Member of group 2021702006010 Võ Thị Hoài Thương 1921005692 Dương Nguyễn Anh Tuấn 1921005748 Bạch Tú Uyên 1921005760 Ho Chi Minh city, 2021 MINISTRY OF FINANCE UNIVERSITY OF FINANCE - MARKETING MARKETING MANAGEMENT MARKETING MANAGEMENT MARKETING PLAN THE COFFEE HOUSE Member of group Class CLC-19DMA10 Võ Thị Hoài Thương 1921005692 Dương Nguyễn Anh Tuấn 1921005748 Bạch Tú Uyên 1921005760 Ho Chi Minh city, 2021 INDEX EXECUTIVE SUMMARY INTRODUCTION SWOT & MACRO-ENVIRONMENT ANALYSIS 3.1 SWOT Analysis 3.2 Micro-Environment Analysis 3.3 Macro-Environment Analysis .7 STP STRATEGIES MARKETING MIX STRATEGIES .10 5.1 Product strategy 10 5.2 Price strategy 13 5.3 Place strategy 14 5.4 Promotion strategy 14 5.5 People strategy 16 ACTION PLAN .16 CONCLUSION .17 EXECUTIVE SUMMARY The group's topic is to create a marketing strategy for the new product of The Coffee House brand - instant milk tea Our team has created a breakthrough and novel product for The Coffee House brand Our marketing plan will show that this will be an opportunity for The Coffee House to expand into a new market The Coffee House brand now has more than 180 stores, but due to various factors, such as the epidemic situation and new consumption trends, this is the motivation for us to propose an instant milk tea solution for The Coffee House to increase the efficiency of the brand's operation Our group's instant milk tea product, after carefully researching and analyzing all factors, is a convenient product and very different from the current market for The Coffee House today The product prioritizes convenience and focuses on product quality In addition, it is more cost-effective than existing products, predicting that this will be a new trend for the market as well as a driving force for other competitors Our team has developed a marketing strategy that helps products and brands quickly reach the consumer market and multiple customer segments, becoming the main source of supply for this market Before planning the marketing, we conducted research and analysis on the brand, the consumer market, and the competitive market, determining the coffee brand's strengths, weaknesses, opportunities, and challenges as well as a new product – instant milk tea Besides, there are micro and micro factors affecting the brand's marketing strategy For the next step, we have selected and devised an STP strategy for instant milk tea products as choosing the right customer segment, target customers and brand positioning is being studied by us very carefully The importance of plan, which combines the 5Ps (product, price, place, promotion, and people), is a critical component of that plan.Each strategy has a theme of possible options to promote the product's priorities, improve the product's competitive advantage, bring the product to market, and attract users Finally, there is a specific marketing plan, a given timeline, method of implementation of constraints, expected revenue and profit, and a budget for advertising activities to better define goals when progressing put into operation INTRODUCTION 2.1 General Introduction Officially launched in 2014 with the name THE COFFEE HOUSE, is one of the young start-ups that are evaluated quite prominently in the F&B industry "The Coffee house" said it will develop and become a 'Starbuck' in the Vietnamese market, turning the dream of drinking delicious coffee for millions of users and mentioning The coffee house is referring to a Vietnamese coffee brand The Coffee House was founded by Mr Nguyen Hai Ninh (born in 1987), Ho Chi Minh City University of Technology After accompanying the Urban Station brand, Mr Nguyen Hai Ninh continues his dream journey with The Coffee House chain As a young founder, he sees that the future of Vietnamese coffee in the market will grow stronger The birth of The Coffee House marked a milestone for the F&B industry when having a Vietnamese brand compete directly with big names such as Starbuck, Coffee Bean, e.t.c History of formation and development: 2014: Launched in the market in Ho Chi Minh City with the first store located in Cao Thang District 2015: Continue to develop and be present in Hanoi capital 2017: Developing stores in Da Nang, Bien Hoa, Vung Tau 2018: Carrying out the journey "From farm to a cup of coffee", officially operating Cau Dat Farm with more than 1650m of coffee growing land In addition, reaching the milestone of 100 stores spread across major cities after years of operation 2020: Continuing to develop and launch new product lines, more than 180 stores are expanded with the desire "Everybody has The Coffee House near home" Mission and vision Mission: The Coffee House manufactures and trades products derived from nature, protecting and improving consumers' health Vision: "Go for coffee" for a long time is not only a cup of coffee but also an opportunity to meet and chat with friends The Coffee House aims to appreciate and appreciate the connection between people and customer experience The Coffee House, I am inspired by the cups of coffee and drinks I create and strongly believe that the best quality drinks served in a friendly space by the dedicated staff at The Coffee House will bring the joys you can share with your friends and family 2.2 Values That Make The Coffee House Brand SINCERITY: The Coffee House's core brand building starts with the mission of "Deliver Happiness" - Giving happiness The company believes, in the respect and sincerity of employees towards customers Everyone who comes to The Coffee House receives a little joy, gets better, and makes others better every day Contribute good things to the community and society INTERESTED: As a brand associated with Vietnamese coffee beans, The Coffee House is always interested in product quality and customer experiences Every product or campaign of the House always revolves around people Customers, employees, and the community are at the heart of every decision The Coffee House believes that caring about emotions as well as the smallest things will bring the power to spread the best things for young Vietnamese people CREATIVE: As a young brand, The Coffee House is constantly updating and innovating Creativity to make new coffee flavors, creating emotional and spiritual values for each customer The house wishes to bring new imprints, marking the brand itself in the Vietnamese market BRAVE: At The Coffee House, like-minded souls work together diligently and together for great goals Every day with Nha is a day of learning, experiencing new things, taking on challenges, and embarking on the road ahead On the next journey, The Coffee House wishes to accompany you to nurture your dreams and persevere to the end of your dreams Strategy objectives for the first year As a short-term goal of the company's first line of packaged products The Coffee House understands that the result that the product brings to customers is convenience and speed In the first year, after evaluating, reviewing, and measuring the company came up with the following strategic objectives: Total revenue: Striving to reach the break-even point by July 2022 and have a profit of 5% By the end of 2022, the product "packaged milk tea" will account for 8% of the market share of the company's total product value In-store: Sold 50,000 products every quarter in more than 180 stores of the company Social media and App: Reached 700,000 likes on the Facebook fan page and daily has 10,000 visits to The Coffee House's application SWOT & MACRO-ENVIRONMENT ANALYSIS 3.1 SWOT Analysis 3.1.1 The Company Strengths People-centered The Coffee House operates from understanding customers They build a polite and friendly brand image Thanks and apologies are always with them at the right time, in the right place, and very delicately Not only are customers treated like family here, but all employees are as well, with competitive salaries and benefits However, the rewards and punishments are still clear and public based on the effort spent This helps maintain employee loyalty and commitment Customer experience The menu has a variety of drinks to meet all customers' needs, in addition to more food for customers to choose from Drinks taste delicious, meticulously prepared, eye-catching The Coffee House is designed to feel like your own home with yellow lights creating a cozy feeling, spacious and airy space, many seats The design and layout are carefully calculated for every detail (eg: height distance between tables and chairs, the height of lights, music selection, etc.) of the desks to meet the working needs of the customers Strong WiFi is suitable for studying and working Toilets are always kept clean The service attitude of the staff is enthusiastic and attentive Always deliver the best customer experience Technology The Coffee House has taken a step ahead of its time, which is to design its own mobile application With this application, each customer's transaction earns points For every 20 points, customers will receive a free drink or a 10% discount This helps The Coffee House take better care of its customers and systematize the brand Weaknesses The Coffee House has an imperfect point that is the menu is diverse but still nothing really special Customers come just because they like the space in the shop Having many branches makes it difficult to manage the quality of each store If one store loses its reputation, it will affect other stores Oppotunities Became a coffee empire due to the wobble of a 20-year empire in the Trung Nguyen industry Expanding the store system to more provinces and cities increases brand awareness Increased app usage and online sales during the epidemic season In addition, The Coffee House has also launched many new products to help retain customers Through its business flexibility, The Coffee House was able to successfully turn the situation of having to close the entire store into a new business opportunity on the mobile platform Threates Protecting drinks and food ensures customer satisfaction in all stores Training employees to standards takes a lot of time and resources, but employees only stay for a short time.This makes employees a headache when they have to ensure the synchronization of tasks and skills throughout the system Warehouses and supply chains It is necessary to carefully calculate the amount of raw materials and storage time to avoid damage to the state and a lack of materials To avoid a disruption in supply, the source of goods must also be clearly identified Especially chain stores like The Coffee House An increasing number of coffee brands in the form of F & B with fierce competition.Big and powerful rivals such as Trung Nguyen, Highland, The COVID-19 epidemic affected business activities The Coffee House had to suspend some stores.e cost of opening a store is high, and the price segment is average; if customers cannot be found, there will be insufficient expenses to cover the loss 3.1.2 The Product Category Strength Utility utilities are simple to use.Preparing for it takes a long time Environmental protection, because there are no plastic cups or straws The whole packaging is made of paper, safe and environmentally friendly Because it is compact and convenient, it can be taken anywhere, including places where there is no store of The Coffee House Because of its beautiful and delicate design, it can be used as a gift for friends, colleagues, The Coffee House followers, and so on The Coffee House brand is a reputable brand with a large number of loyal customers, as well as proven product and service quality Long-term use, easy to maintain The price is suitable for all customers Weaknesses Because this is a new entrant into the school of instant milk tea, the manufacturers not have much experience Product flavors can be altered to suit an individual's preparation Oppotunities Reach more customer segments Broaden the field and increase the potential for new customers Meets the needs of the customerBecause of Covid 19, translated images are unable to leave the house and avoid contact with strangers, because such instant milk tea will be a safety and convenience trend From the very beginning, The Coffee House's goal is to bring a luxurious experience to customers at an affordable price Brand positioning The Coffee House: The Coffee House is a service brand that provides customers with quality coffee and beverage products and reputable services at a price that is suitable for the majority of customers The Coffe House gives customers the most comfortable space possible, making customers think of "home", a place not only to stop but also to rest and relax and talk MARKETING MIX STRATEGIES 5.1 Product strategy Value proposition Instant milk tea is a new product line under The Coffee House brand that was launched to meet all the criteria of young people, especially students, students, and office workers, because of its quick convenience as well as being suitable for customers Tea shopTake pleasure in your young milk tea.The Coffee House introduced three new products, all of which use tea leaves grown on The Coffee House's farm in Cau Dat, Lam Dong, to provide a rich flavor, the aroma of tea, and the fat of coffee milk.Produced on modern technical lines, selecting the best source techniques to produce quality products with the right aroma Customers can freely choose their favorite milk tea flavor, buy it and enjoy it at home The new instant milk 13 tea line at The Coffee House will answer customers' criteria: speed, quality and taste when drinking at the store In just minutes, you can have yourself a cup of delicious milk tea to enjoy at home Product attributes To compete with other branded products in the market, The Coffee House launches brand-specific products and best-selling products that are predelivered by customers to launch milk tea products Tan in accordance with the tastes of customers With the products from The Coffee House, it only takes minutes for users to have a cup of rich milk tea with The Coffee House flavor Extracted from pure tea leaves grown on The Coffee House's farm in Cau Dat, Lam Dong and through high-tech processing, careful selection of ingredients should be hygienic and safe for food used by consumers The Coffee House's instant milk tea also has a more concentrated flavor, easier to drink than other instant milk teas on the market The Coffee House's instant milk tea has a delicate, refreshing exterior and a youthful and dynamic feeling for users Each package is individually wrapped and carefully packed For only 8,500 VND - 10,000 VND per pack, users have a cup of milk tea with the flavor of The Coffee House Not only that, the compact and light packaging helps consumers to take it anywhere, or as a gift to their loved ones NAME OF WEIGHT AND PRODUCT COMPOSITION Baked OolongMilk Tea has a 200g/box Baked Oolong Milk Tea Black Bubble PRODUCT DESCRIPTION rich taste from the richly 25g/pack baked (includes milk tea background, oolong mixed tea with a powder) rich, aromatic milk flavor 200g/box Black bubble milk tea has a Milk Tea sweet taste, with the taste of 14 whole-leaf black tea and full- 25g/pack (includes milk tea powder and bubble) Latte Macchiato milk perfectly that has been balanced, with crispy white pearls added The black tea latte has a 200g/box Black Tea fat delicate 25g/pack taste, with a combination of a mild black (includes milk tea powder) tea flavor with fresh milk, with a hint of a greasy latte Brands, packaging Packaging The product is packed in a paper box, which contains many small paper packages to help protect the product from external agents, preserving the product and preventing damage during transportation.transfer as well as storage Besides, the packaging material is completely made from environmentally friendly materials The Coffee House instant milk tea boxes are packed in small, compact boxes that are easy to transport goods in, saving time and money in the process.This also facilitates sales, because the product is lightweight and easy to handle, attracting customers' eyes Designed with mainly brown, orange to beige tones, creating a rich feeling, the typical color of milk tea, bringing the color of The Coffee House It brings a fresh, youthful and dynamic look, suitable for the tastes of young people In addition, the packaging is also printed with illustrations Help customers easily visualize and choose their favorite products Label The Coffee House retains its brand name and prints its logo on new products, increasing brand recognition The names of the products will be 15 printed below the logo to help customers identify and choose products easily 16 5.2 Price strategy Pricing Strategy Because the main customers that The Coffee House targets are students and office workers, in general, the price of each product is not too high and the mid-range is not too low but not too high, from only 70,000 VND 80,000 VND, in+ line with the income level of the target customers that The Coffee House is aiming for Quality products and valuable brands are also factors that The Coffee House uses to price their products WEIGHT AND NAME OF PRODUCT PRICE COMPOSITION Baked Oolong Milk 200g/box - 25g x pack 70.000 Tea (includes milk tea powder) VND/box Black Tea Latte 200g/box - 25g x pack 75.000 Macchiato (includes milk tea powder) VND/box Black Bubble Milk Tea 200g/box - 25g x pack (includes milk tea powder and bubble) 80.000 VND/box Penetration Pricing Strategy When entering new markets, to be able to compete with other brands and promote products to consumers, the low pricing strategy will help encourage more customers to buy and increase product consumption NAME OF PRODUCT Baked Oolong Milk Tea Black Tea Latte Macchiato Black Bubble Milk COST PENETRATION PRICING 70.000 VND/box 60.000 VND/box 75.000 VND/box 65.000 VND/box 80.000 VND/box 70.000 VND/box 17