(Tiểu luận) sales strategythe coffee house at hoan kiem district quarter 2 2021

NATIONAL ECONOMICS UNIVERSITY MARKETING FACULTY 🙟🙟🙟🙟🙟 GROUP PROJECT SUBJECT: SALES MANAGEMENT SALES STRATEGY The Coffee House at Hoan Kiem District quarter 2/2021 Class: Marketing Management AEP 60A Group members: Nguyễn Minh Đức - 11181000 Lý Thùy Linh - 11182716 Nguyễn Kim Ngân - 11183555 Trần Thị Thảo Ngân - 11183580 Nguyễn Phương Ngọc - 11183673 Phạm Anh Thư - 11184767 Mentor: Dinh Thi Van Oanh (MBA) Hanoi, March 2021 TABLE OF CONTENTS I About The Coffee House II Historical market and performance data Market trend: Price movements 7 Distributor performance 10 Market research data 11 III Key assumptions in planning Market size 11 11 Spend 11 Competitor activity 12 Government regulations 12 Socio-economic factors 12 Demographic factors 13 IV Goals and objectives 13 Quarter 2/2021: Recover 13 Pushing digital channels via The Coffee House mobile app 14 Pushing seasonal menu sales 14 Merchandise 14 V Plan strategies 15 Account targeting strategy: 15 Relationship strategy: 19 Sales channel strategies: main distribution 20 Selling strategy 22 VI Forecasts 23 Total market potential 23 Forecast 24 DETAILED CALCULATION VII Developing tactics 20/4/2021 - 27/4/2021 (1 week of sales promotion): End of term Promotion 27 31 31 29/4/2021 - 2/5/2021: Holiday 32 1/5/2021: Survey existing customers for anniversary menu 33 From 10/5/2021: Summer season: cool drinks for hot summer 34 During June: Free shipping for delivery 34 1/6/2021: A collection of bottles for summer 35 VIII Performance Monitoring Monitoring profitability of sales activity Monitoring salesperson performance 38 Plan performance – Market and competitive environment monitoring 39 Sale performance evaluations 41 CHAPTER - SALES FORCE MANAGEMENT I 37 37 Recruitment and Selection 42 42 Identify the person or vacancy 42 Prepare a job description 42 Prepare a person specification 44 Review alternative sources of candidates 44 Evaluation and Hiring II Sales training process 45 46 Assess sales training needs 46 Set training objectives 48 Evaluate training alternatives 49 Design sales training program 51 Perform sales training 52 Conduct follow-up and evaluation 52 III Motivation Rewards 52 Financial compensation 52 Non-financial compensation 53 CHAPTER - SALES PLANNING PROCESS I About The Coffee House The Coffee House is a Vietnamese coffee chain that was established in 2014 in Ho Chi Minh city Its mission is to “Deliver Happiness”, embracing the connection among people, focusing on customers, employees and the society After years since the very first store, the brand today owns 171 stores all over the country The Coffee House serves not only hand-crafted coffee but also other kinds of beverages such as fruit tea, malt drinks, together with side menus including pastries, snacks, Our sales plan focuses on the three stores in Hoan Kiem district in the first half of 2021 Overall, the three stores share some significant similarities, however, each location has its own characteristics that the sales team need to keep in mind The Coffee House 23M Hai Ba Trung, Hoan Kiem, Hanoi - - Location: Located on Hai Ba Trung street, one of the central regions, near the pedestrian streets, which is a busy and crowded place with a lot of restaurants, leisure activities nearby that attract a lot of people, especially during weekends Interior design: Using a lighter wooden-cream palette to create a welcoming, cozy and “homey” atmosphere Mostly low coffee tables arranged into groups of 4, one long refectory table with 10 seats, a balcony overlooking the lake and busy streets with private couple setting seats => A place suitable for groups and couples to hang out Customer traffic (source: Google) Weekdays: Weekends: On weekdays, the store is often busy around afternoon (2 p.m to p.m), meanwhile, it tends to get crowded during the evening towards weekends, especially around p.m Customers coming to the store often go in groups as friends or family, accounting for 40% of the store’s daily traffic, which makes the customers’ age range really broad and not focused About 20-30% are couples and the rest are customers who go alone to study or work An interesting fact about groups of customers at the store is that they tend to order as many types of drinks from the menu as possible to try different flavors Also, a lot of the guests are first-time visitors who struggle to find a suitable drink right away and would most possibly ask for recommendations to save time The Coffee House 56 Ba Trieu, Hoan Kiem, Hanoi - Location: Located on a busy commuting street with many types of business (shops, restaurants, offices, ) nearby - Interior design: A three-story coffee shop with a contrasting color palette of black, white and a little wooden Little open space and natural light Mostly high tables, seats are flexible to move Furniture and neutral colored decoration to create better concentration and a co-working space A balcony with street-facing seats, suitable for single customers or couples - Customer traffic: Weekdays: Weekends On weekdays, the Ba Trieu branch usually gets busy around noon or lunch breaks (12 p.m) while during weekends, afternoon is the most crowded time Saturday nights are also a notable time for customer visits According to statistics, an average customer spends 15 minutes - 1.5 hours at the store Customers at the Ba Trieu store are mostly one-person who come to work or study or small groups of They are already familiar with the menu, service flow, hence, the ordering process is quick as they usually choose their favourite, go-to drinks at the store (mostly fruit tea) The customers’ age range is focused on the young adults who are fast and receptive to technology, as a result, the majority are already registered members on the mobile app The Coffee House Hanoi Tower 49 Hai Ba Trung, Hoan Kiem dist., Hanoi - Location: Inside a luxurious shopping/leisure and apartment complex that is located on the busy street of Hai Ba Trung This is by far the location with the most diverse source of customers, since they can come to the building for shopping, entertainment, working offices and hotels/apartments In the nearby area, there are various multi-purpose buildings such as hospitals, government offices, restaurants which also attracts a lot of people commuting every day However, as the store is placed within the department building, it is difficult to even find the location from the outside and customers may feel the inconvenience of parking, traveling to and inside the building Another point is that the brand is not the only cafe in the building, as a result, it has to compete with other names with slightly better location, different types of drinks within the complex tower Document continues below Discover more Sales from: Management Đại học Kinh tế… 91 documents Go to course [123doc] - phan19 tich-hoat-dong-… Sales Management None 8.Sales Management 23 Analysis and… Sales Management None Đề kỳ - cô oanh Sales Management None 4-Relationship3 10 Stategy Sales Management None Midterm TEST Sale Mana - nature of… Sales Management - - None 5.Sales Interior design: Due to being inside a department store, the store cannot get a decent amount of space but the capacity is rather decent Oganziation.Sales… with up to 40 seats on two 25 theme like the 23M Hai Ba floors The decoration is focused on the cozy, homey Sales Trung store with low coffee tables None Management Customer traffic (at Hanoi tower in general): Weekdays: Weekends: As seen from the charts, weekdays are the busiest days, especially during lunch time from 11 a.m and gradually decrease throughout working hours, meanwhile, the overall weekend traffic is not as much as working days This is totally explicable due to the fact that the building itself is an multi-company office and apartment, where people commute the most during weekdays to work Its main customer group is office workers around the area who come to grab a drink to freshen up after lunch or to have quick business meetings It is noticeable that such type of customers does not stay at the store for long, some even come only to pick up drinks then get back to their office As a matter of fact, the store has a separate corner for pickup orders and one for in-store orders Frequent comers as these customers will have the tendency to choose their same favourite drink (mostly coffee and tea) On weekends there are also customers who come to the building to go shopping or hangout II Historical market and performance data Market trend According to Statista, Vietnam’s 2020 revenue in the Food and Beverage segment is $488 millions, with a revenue growth rate of 53.6%, compared to last year’s number In terms of users, the segment also saw a rise to 10.1 millions and is expected to amount to 17.1 millions in 2025 According to research, conducted by the International Coffee Organization, despite the pandemic striking the economy during the first months, the demand for coffee consumption in VietNam witnessed an upward trend to 3,2% at the end of the harsh year of 2020 With the whole industry’s promising numbers, it is predicted that the F&B segment will keep thriving, hence, the competition keeps getting tougher However, like other Asian countries, the market of Vietnam has a special feature, which is the emergence of individual-owned street businesses that have always been a part of Vietnamese’s culture In particular, in 2018, Vietnam has 540,000 large and small restaurants and up to 430,000 of them are street stalls Even the largest coffee chains in Vietnam only hold 15.3% of the market; of which, Highlands Coffee ranked first with 7.2%, Starbucks accounted for 2.9% of the market share, TCH 3% of the market share The overall Vietnamese coffee market is worth about $1 billion Apart from competing with bigger coffee chains, The Coffee House also needs to keep up with other small-butimportant businesses To talk even further about coffee, Vietnam is also penetrating the third-wave-coffee culture from other countries, which is an important clue that drops a hint about the appearance of the new, potential competitors who created an even more niche market In short, first wave coffee is generally the time when large companies (such as Nescafe) exported commodity coffee to the masses (1800s to modern era), while the second wave (e.g Starbucks) started to emphasize enjoyment of coffee They were still pretty large suppliers, but the taste became more important Last came the third wave, who controls everything around the final products (generally) in four steps, namely planting, processing, roasting, and brewing Popular names among this wave are Black Bird, Allday from Hanoi or Là Việt from Ho Chi Minh City The Coffee House can categorize itself into the transition between the second and third wave, in which case, it is still a rather nation-wide big supplier of coffee and focused on the social scene, however, it also works with big coffee farms to have its own source of authentic, home-made ingredients The wave separation gives managers a viewpoint of the way the industry is shifting towards and how marketing is setting up new trends and shaping consumers’ behaviors In terms of distribution, the trend is to focus on in-store purchases and partnering up with third-party applications People care about in-store experiences more than ever, and although the implementation of online retail in Food & Beverages has been lagging for two decades, it has finally taken off now, becoming the fastest-growing product category in eCommerce Large coffee chains (e.g Starbucks, Phuc Long, Highlands) are working with food delivery companies (Now, Baemin, Grabfood, Gofood) as a source of product distribution and e-wallets (Momo, VNPay, Moca, ) to provide a cashless payment method In addition, Highlands and other small businesses in HCM City are experimenting coffee stalls to increase the convenience, as instead of travelling to the store to grab coffee, the brand will bring coffee to a place nearby for closer distance takeaway Price movements According to Statista, Vietnam’s inflation rate in 2019 is around 2.8%, which is at an acceptable level However, with the pandemic of Covid-19 in 2020, the nation’s inflation rate rose to 3.77%, and is predicted to continue to increase in the next year of 2021 As at a macro-level as it is, the most basic effect that the rate has on the economy is the way it erodes the value of cash, which in other words, erodes the buying power, hence, people have the tendency to spend less and keep more money to themselves As for our company, since fewer product units can be bought with a single amount of money, inflation leads to the increase in the price of input materials (coffee beans, ice, milk, ) and the product cost However, while people are buying less, the company also faces difficulties in pricing strategies and price adjustment