(Tiểu luận) topic marketing plan for highlands coffee to penetrate the market

TRƯỜNG ĐẠI HỌC KINH TẾ QUỐC DÂN VIỆN ĐÀO TẠO TIÊN TIẾN CHẤT LƯỢNG CAO VÀ POHE _*** _ INTERNATIONAL MARKET SELECTION & ENTRY MODES h Topic: Marketing plan for Highlands Coffee to penetrate the market Team members of group : Nguyen Viet Hoa - 11212290 Ngo Quang Phuc - 11214695 Pham Khanh Linh – 11219190 Nguyen Thi Huyen Trang - 11215845 Nguyen Dieu Huong – 11212525 Class : Quản trị Marketing CLC 63B Teacher : Tran Viet An Hanoi, 3/10/2023 Contents About the environment of home country: Viet Nam 1.1 Geographic 1.2 Political 1.3 Economy 1.4 Religion About Highlands Coffee International market selection 3.1 Compare countries: Malaysia, Indonesia, Singapore 3.2 Market attractiveness evaluation 11 3.3 Value chain analysis 13 3.3.1 Product benefits for customer .13 3.3.2 Service benefits for customer 16 3.3.3 Direct (monetary) costs for customer 17 3.3.4 Indirect costs for customers (customer participation in achieving the benefits) .18 Entry modes 19 4.1 Reasons for choosing a franchise business form to enter the Malaysian market: 19 h 4.1.1 Internal factors .19 4.1.2 External factors 22 4.1.3 Desire mode characteristic 25 4.1.4 Transaction-specific factors 25 4.2 Building a franchise system for Highlands Coffee in the Malaysian market 25 4.2.1 Franchise form: 25 4.2.2 How to find a franchisor for Highlands in Malaysia 26 4.2.3 Franchise agreement content 26 SWOT Analysis of Highlands Coffee in the Malaysian Market .27 5.1 Strengths 27 5.2 Weaknesses 29 5.3 Opportunities 30 5.4 Threats 32 About the environment of home country: Viet Nam 1.1 Geographic Vietnam has a geographical advantage in terms of exporting and trading with ASEAN countries Our country's location at the crossroads of international maritime and air routes, coupled with extensive road and rail networks across Asia, facilitates connectivity with nations in the region and the world Vietnam's strategically favorable geographical position holds significant importance in developing economic sectors, regional territories, and creating conditions for implementing open-door policies, integration, and attracting foreign investment Furthermore, Vietnam's climate, geography, and suitable soil conditions have contributed to the distinctive and unique flavor of Vietnamese coffee Situated in the tropical belt, Vietnam experiences abundant sunshine and rainfall, particularly during the coffee growing months The country has a clear division in climate between the southern region with a hot and humid tropical climate suitable for Robusta coffee and the northern region with a cold winter and misty rain, ideal for Arabica coffee Vietnam's basaltic red soil is well-suited for coffee cultivation, distributed across the country but concentrated in two main regions: the Central Highlands and the Southeast, covering millions of hectares h With its geographical advantages, Vietnam produces high-quality coffee beans that are highly regarded Vietnam has consistently maintained its position as the world's second-largest exporter of coffee and the top exporter of robusta coffee According to Vicofa, in recent years, Vietnamese coffee has been exported to over 85 countries and territories worldwide In 2022, coffee exports exceeded $4 billion, accounting for more than 15% of the world's coffee export market 1.2 Political Vietnam has been a member of ASEAN for 28 years (as of 2023) Consequently, its policies and directions for ASEAN cooperation have become a crucial component of Vietnam's new-era foreign policy, representing a strategic focus of Vietnam's multilateral diplomacy Throughout the process of joining and participating in ASEAN, Vietnam has made significant strides in foreign policy innovation, transitioning from the principle of 'more friends, fewer enemies' to diversifying and multilateralizing international relations Vietnam has evolved into an 'active, positive, and responsible member' within ASEAN, embodying the philosophy of 'proactive, positive, and responsible collaboration with ASEAN countries to build a robust community.' In recent years, Vietnam has achieved noteworthy results in foreign affairs Economic integration has deepened across various levels, from regional to global, taking diverse forms with active participation in various international organizations, forums, and multilateral conferences, particularly within ASEAN, the United Nations, and the Asia-Pacific Economic Cooperation (APEC) Vietnam has actively signed numerous new-generation bilateral and multilateral free trade agreements Vietnam's foreign relations and international integration continue to expand and deepen, establishing a framework for stable and sustainable relationships with its partners Vietnam's stable political situation with ASEAN acts as a bridge, and collaborative development policies create favorable conditions for Vietnamese businesses to penetrate foreign markets, particularly in Asia 1.3 Economy Vietnam has a dynamic business sector and a growing start-up ecosystem, which fosters innovation and entrepreneurship and has attracted investment from multinational enterprises, which bring technology and expertise to the local market These factors can help Vietnam increase its innovation output and export competitiveness, as well as create new markets and opportunities for trade h Vietnam has increased its attention to environmental and social issues, which require technological solutions Vietnam has faced negative impacts of rapid growth and industrialization, such as greenhouse gas emissions, water pollution, waste management, and marine plastics Vietnam has committed to reducing its emissions to net zero by 2050 at the UN Climate Change Conference in Glasgow in 20213 According to the report of the General Statistics Office, Vietnam’s inflation in 2021 fluctuated from - 2.5%, and in 2022 it could reach 4%1 This is a high increase compared to the average of 1.84% in 20202 High inflation can reduce the value of the currency, increase the cost of living, and weaken the competitiveness of the economy For Highlands Coffee, inflation can increase the cost of raw materials, labor, rent, and advertising In 2022, due to the high pressure of economic inflation, the Highlands Coffee chain announced a 10-15% increase in prices, equivalent to 4,000-10,000 VND per product, with the reason of maintaining product quality, and service “in the situation of market fluctuations” Some products increase up to 18% 1.4 Religion On the morning of March 9, 2023, in Hanoi, the Ministry of Information and Communications and the Government Committee for Religious Affairs officially introduced the White Paper titled 'Religion and Religious Policies in Vietnam.' The White Paper begins by affirming that there is no discrimination or conflict between beliefs and religions in Vietnam Currently, there are 67 concentrated religious activity points for foreigners in Vietnam, primarily located in Ho Chi Minh City and Hanoi, representing various nationalities such as South Korea, the Philippines, Singapore, Malaysia, Russia, the United States, France, and more The White Paper also emphasizes that the State respects and ensures the freedom of belief and religion for legally residing foreigners in Vietnam In conclusion, Vietnam and Vietnamese businesses consistently maintain good cooperative relationships with religions worldwide, providing favorable conditions for religions to access high-quality products and services, including coffee This also contributes to the development of Vietnamese coffee-related products in various religious contexts About Highlands Coffee h ● Branding Regarding the message: "Proud of Vietnamese coffee" and recently, Highlands has introduced the message: "Highlands Coffee® Belongs to Us." Highlands Coffee now goes beyond spreading the coffee culture story and aims to strengthen the connection among people, becoming a community hub consistent with the founder's vision since the early days of building the brand With its brand, Highlands Coffee consistently embodies simplicity, modernity, while preserving the Vietnamese identity, reaching international standards yet always focusing on the community ● Space The main color is the brand’s distinctive mark Each outlet within the Highlands Coffee chain will have its own decor style, but the commonality is maintaining the primary color – a warm and familiar shade of red This red tone creates a sense of luxury and coziness for customers, making it an ideal place for work, study, relaxation, or socializing with family and friends In terms of furniture, Highlands Coffee mainly features traditional Vietnamesestyle wooden tables and chairs Some Highlands cafes also decorate with handwoven lights made from materials like rattan and bamboo, providing a rustic feel The soft light from these handwoven lanterns enhances the cozy and relaxed ambiance of the café h ● Product Service: Highlands Coffee is consistently praised by its customers for its attentive and friendly service From the moment customers step into the store, they are warmly welcomed by the staff Customers then place their orders at the counter, where the staff introduces the menu and assists customers in making the most suitable choices After ordering and making payment at the counter, the staff provides a receipt and a calling card for customers to collect their drinks when their order is ready During the waiting period, customers can help themselves to chilled, purified water Once an order is placed, the staff promptly receives it and begins the preparation process to serve customers as quickly as possible Drinks: Highlands Coffee, renowned for its unwavering commitment to using clean, high-quality ingredients, has maintained its artisanal approach to coffee bean selection This meticulous process ensures that Highlands Coffee consistently delivers top-notch coffee beans, combined with unique brewing techniques, resulting in a diverse and enticing menu catering to a wide range of customers Highlands Coffee blends the finest Robusta and Arabica coffee beans, cultivated in the lush highlands of Vietnam, using distinctive roasting and grinding techniques This meticulous process guarantees the delivery of exceptional coffee products to customers This commitment to quality begins with the careful selection of coffee beans, as Highlands Coffee exclusively collaborates with reputable suppliers to source the finest coffee beans Additionally, their other beverages, such as Freezes and teas, are steeped in Vietnamese culture, using locally sourced ingredients that showcase the distinctive flavors of Vietnam Document continues below Discover more from: International Marketing Đại học Kinh tế Quốc dân 70 documents Go to course 18 De cuong on tap hoc ki lop global success nam hoc 2022 International Marketing 100% (5) [123doc] - bo-cau-hoi-trac-nghiem-marketing-co-dap-an 15 International Marketing 100% (5) h UK Pestle Analysis 68 International Marketing 100% (2) MKT asm - Individual assignment for Fentimans case 11 International Marketing 100% (2) Discuss the market segmentation of Samsung 18 120 International Marketing 100% (2) 123doc xay dung chien luoc tham nhap thi truong eu cho cong ty hai san 404 pdf International Marketing 100% (2) h International market selection 3.1 Compare countries: Malaysia, Indonesia, Singapore Malaysia Indonesia Singapore Market share Revenue in the Coffee market amounts to US$210.6m in 2023 Revenue in the Coffee market amounts to US$2.7bn in 2023 Revenue in the Coffee market amounts to US$160.6m in 2023 Market growth A statistical analysis on coffee consumption in Malaysia shows that coffee consumption has increased from 20.69 million kg in 2020 to 35.82 million kg in 2021 and 2022 (Statista, 2021) Indonesia’s 2022/23 coffee production is forecast to increase by percent from the previous year to 11.35 million (60 kilogram) bags on favorable weather in southern Sumatra Improved demand following the easing of pandemic-related Singapore's coffee sales are set to increase steadily by 3.2% value compound annual growth rate (CAGR) over 2022–27, according to GlobalData In 2022, the retail sales value of cafes and bars in Malaysia amounted to around 1.25 billion U.S dollars, an increase compared to the previous year restrictions is expected to raise domestic coffee consumption to 4.8 million bags in 2022/23 Prices According to data from 2020, the average price of a cup of coffee in Malaysia is approximately $1.20 1.70 The average price of a cup of coffee in Indonesia varies depending on the location and type of establishment In major cities like Jakarta and Surabaya, a cup of coffee at a café or restaurant can cost approximately $1.40 - 2.10 At a street vendor or small café, a cup of coffee may only cost approximately $0.70 1.05 The average price of a Coffee/Tea Without Milk (Per Cup) was reported at approximately $0.9/Cup in July 2023 Buying power Purchasing power of Malaysia is 65.7 in 2023 Purchasing power of Indonesia is 27.5 in 2023 Purchasing power of Singapore is 95.6 in 2023 In 2022, the sales value of independent cafés and bars in Indonesia amounted to approximately 1.3 billion U.S dollars h Cost of living in Indonesia is, on average, 10.3% lower than in Vietnam Kopitiam is a type of coffee shop mostly found in parts of Indonesia, Malaysia, Competitive Singapore In Malaysia, Singapore and Indonesia, Kopitiams are found almost intensity everywhere There are no less than 100 brand names of modern kopitiam operating in various part of Malaysia As of 2021, Kopi Janji Jiwa has the largest number of outlets among other coffee shops in Indonesia, with 920 outlets spread across Indonesia Kopitiam in Singapore are commonly found in almost all residential areas as well as some industrial and business districts in the country, numbering about 2,000 in total The expansive popularity of tea is currently posing a challenge to the coffee market's growth Highlands Coffee not only competes with specialty coffee shops in Malaysia but also faces competition from Vietnamese counterparts such as Cộng Cà Phê,Trung Nguyên and Kee Nguyễn, a coffee startup in Malaysia that has now expanded to 40 outlets Additionally The number of Vietnamese residents living and working in Malaysia is significant, and the opening of Vietnamese restaurants and eateries has become an effective channel for promoting culture and cuisine in the host country Malaysia is a diverse, multi-ethnic Muslim nation, with approximately 30% of its population being of Chinese and Indian descent As a result, the overall food market and specifically the coffee market are highly varied and rich In 2021, there were approximately eight thousand cafés and bars in Indonesia, an increase compared to the previous year The number of cafés and bars in the country continued to increase over the observed period The Vietnamese community in Indonesia currently consists of approximately 500 individuals, including around 150 permanent residents who live and work long-term Despite its modest population size, there is a significant number of Vietnamese restaurants in major cities across Indonesia These Vietnamese eateries attract considerable attention, owing to the rising trend of consuming healthy food h Market access With a Muslim-majority population, coffee shops became the go-to hangout spot instead of bars In the past few years, local coffee chains have overtaken global brands in terms of market presence Coffee consumption in Indonesia, especially Sumatran Arabica coffee The coffee market in Singapore is poised for increased competition as Luckin Coffee and Tim Hortons announce plans for outlet expansion In Singapore there are an estimated 322 coffee shops and hundreds of them are found in the HDB estates In Singapore, the competitor of Highlands Coffee, Trung Nguyen Coffee, is expanding and gaining popularity As of now, Trung Nguyen Coffee has successfully established branches in Singapore In Singapore, there's a community of around 10,000 Vietnamese individuals who both work and reside in the country This community is primarily composed of young people, many of whom are highly educated and involved in labor activities With 38% of the population being foreigners, Singapore's culture is incredibly diverse and vibrant Vietnamese culture is warmly welcomed here, and it's now quite easy to locate Vietnamese restaurants throughout the country Highlands Coffee focuses on the “customer-centric” working style so the company is ready to answer and support customers for free Indirect costs for the customers Bad Good Conversion/ negotiation with the supplier (transaction costs) ● Internal costs ● Long lead time ● Service costs ● Total 16 CPV = ⇒ CPV is more than 1, the better the perceived value for the customer and the better the competitiveness h Entry modes 4.1 Reasons for choosing a franchise business form to enter the Malaysian market: 4.1.1 Internal factors ● Supported by Jollibee JC Highlands coffee is owned by Jollibee JC Group (51% shares) and Viet Thai International (49% shares) Jollibee JC owns a fast food restaurant chain called Jollibee covering 24 countries and territories As of the end of January 2023, Jollibee Foods Corp said its network was 6,481 stores globally In fiscal 2022, Jollibee Foods Corp recorded revenue growth of 38% year-on-year, reaching 211.9 billion Philippine pesos ($3.8 billion) According to Forbes, JFC is one of the fastest growing Asian restaurant chains in the world 19