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 (2020- 2025).
Germany leads Europe in coffee consumption, with an impressive per capita intake of approximately 6.5 kg The rising demand for freshly brewed coffee is significantly boosting sales, as market research indicates Additionally, there is a growing interest in specialty coffees, driven by enhanced consumer awareness and knowledge This trend is further supported by the proliferation of cafes, small residential brands, and local roasters, as well as bartenders innovating in coffee preparation Moreover, a new trend has emerged where consumers are embracing home roasting, reflecting their desire for quality and personalization in their coffee experience.
Trung Nguyen Enterprise is strategically exporting its premium coffee products to the German market, tapping into the growing demand for high-quality coffee in Europe With a focus on unique flavors and sustainable sourcing, Trung Nguyen aims to establish a strong presence among German consumers who appreciate specialty coffee The company's commitment to quality and innovation positions it well to compete in the vibrant German coffee industry, catering to both local cafes and retail outlets By leveraging effective international marketing strategies, Trung Nguyen seeks to enhance brand recognition and foster long-term relationships with German distributors and customers.
Growth
Coffee consumption in Germany remains stable
The specialty coffee market in Germany is experiencing significant growth, offering promising opportunities for suppliers of premium quality coffee This niche segment emphasizes the importance of high quality, which translates to high value for consumers.
Germany, Italy and France are the largest coffee consumer markets in Europe
The German coffee market represents approximately 20% of total coffee consumption in Europe, making it the largest consumer, followed by Italy at 13% Other significant coffee-consuming countries include France and Spain, each at 13% and 8%, respectively, along with the UK, which also accounts for 8% of consumption According to the International Coffee Organization (ICO), the European Union functions as a single market, making it challenging to determine the exact consumption locations of imported coffee.
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 boasts a significant coffee roasting industry, with the port of Hamburg serving as Europe's largest coffee transit hub Additionally, the port of Bremen acts as another key docking point for coffee shipments Prominent German coffee roasters include Tchibo, Melitta, Jacobs, and Dallmayr.
Market trend
Consumer trends indicate a growing preference for home-brewed coffee made from whole roasted beans, resulting in the preparation of fresh coffee batches Additionally, the popularity of coffee consumption in the workplace is notably significant in Germany.
In 2019, Germany emerged as the leader in office coffee consumption, with a market valued at EUR 725 million and an average growth rate of 3% in 2018, according to Beverage Business World The rising demand for freshly brewed coffee made from whole roasted beans, particularly in office environments, has significantly boosted sales in the roasted coffee sector.
Trung Nguyen Enterprise is strategically exporting its premium coffee products to the German market, capitalizing on the growing demand for high-quality roasted coffee By focusing on diverse market segments, Trung Nguyen aims to cater to the unique preferences of German consumers The company's commitment to quality and authenticity positions it well within the competitive landscape of the international coffee industry As Trung Nguyen continues to expand its global footprint, its efforts in the German market highlight the potential for Vietnamese coffee to gain recognition and appreciation among discerning coffee lovers.
Arabica coffee dominates the German coffee market, making Germany a key importer of green coffee German consumers favor light, high-quality roasted Arabica over robusta beans, highlighting the distinct preference for Arabica in the country.
SWOT
+ Germans love to use roasted coffee + Trung Nguyen coffee brand is international + Technology, coffee flavor of Trung Nguyen is extremely special in the market
+ The efficiency of the distribution channel in the German market has not been maximized
+ 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
Trung Nguyen Enterprise is strategically exporting its premium coffee products to the German market, capitalizing on the growing demand for high-quality coffee in Europe With a focus on international marketing, the company aims to establish a strong presence in Germany, leveraging its unique blends and rich Vietnamese coffee heritage By understanding local consumer preferences and effective distribution channels, Trung Nguyen seeks to enhance brand recognition and drive sales in this competitive market.
+ The domestic coffee market in Germany has many loopholes + Expanding the market in Germany
+ 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 has consistently ranked among the top sustainable development enterprises, excelling in business operations while generating employment and contributing to the state budget In addition, the company actively supports initiatives and programs focused on social development, environmental protection, and community advancement.
The company enhances its global image by promoting sustainable products made in Vietnam under the NESCAFÉ and MAGGI brands, aligning with its commitment to shared goals.
Trung Nguyen Enterprise is strategically exporting its premium coffee products to the German market, capitalizing on the growing demand for high-quality coffee among German consumers This initiative not only enhances the brand's international presence but also fosters cultural exchange through the appreciation of Vietnamese coffee By focusing on quality and unique flavors, Trung Nguyen aims to establish a strong foothold in Germany’s competitive coffee industry, appealing to both traditional coffee drinkers and a new generation of coffee enthusiasts.
In 2020, this highly-rated German coffee stands out for its delightful natural and sweet flavor that appeals to all coffee lovers Conveniently available in ground form, it allows for easy preparation using top-quality coffee grinders Additionally, it is offered in a six-pack, with each bag weighing 1.1 pounds, ensuring you have plenty of coffee to enjoy.
This coffee, made from 100% Arabica beans, is a healthy choice due to its pure and carefully crafted formulation Produced by a reputable German brand, it ensures that you can enjoy your coffee without worrying about health complications, as it contains no hidden chemicals or unnecessary ingredients.
Dallmayr Decaffeinated German Roast Coffee
Caffeine is a well-known stimulant that can have significant effects when consumed in excess To address this, Dallmayr implements careful decaffeination processes that preserve the rich flavor and aroma of their coffee Sourced from the Central Highlands Arabica tree, Dallmayr's coffee is cultivated in the world's finest farms using proprietary farming techniques, ensuring a pure and natural product.
Decaffeinated Dallmayr ground coffee stands out as the top choice for those seeking a smooth, non-bitter coffee experience Produced in Germany under strict Good Manufacturing Practices, this coffee ensures high quality and adherence to industry standards, making it a reliable option for coffee lovers.
The company strives to guarantee 100% customer satisfaction by only producing the best quality that meets
Trung Nguyen Enterprise is strategically exporting its coffee to the German market, aiming to meet the high standards of local consumers For optimal preparation, it is recommended to use 2 tablespoons of coffee per 6 ounces of water in an automatic drip coffee maker Additionally, to preserve the rich taste and flavor, avoid reheating or boiling the brewed coffee.
The company is committed to ensuring 100% customer satisfaction by delivering top-quality products that meet consumer standards For optimal coffee preparation, add 2 tablespoons of coffee to 6 oz of water in your automatic drip coffee maker Avoid reheating or boiling brewed coffee, as this can negatively impact its taste and flavor.
Founded in 1895 by Johann Jacobs, Jacobs German Instant Coffee has been a staple for high-quality coffee in Germany, renowned for its expertly roasted blends The brand is celebrated as the best coffee in Germany, and its 3in1 Classic Instant Coffee Sticks offer a convenient solution for enjoying coffee on the go, allowing you to savor a quick and delicious brew faster than other brands.
The "3in1" coffee mix combines coffee beans, sugar, and cream for a convenient and quick beverage solution Each pack contains six units, with ten servings of 18g each, making it perfect for enjoying coffee during short breaks or while on the move.
Tchibo German Roast Coffee Instant Coffee
Tchibo Gold Selection meets the high expectations of coffee consumers by brewing a premium coffee with an exceptional aroma The brand sources only the finest coffee beans from top agricultural lands, ensuring they are free from harmful ingredients Each batch is meticulously ground, freeze-dried, and roasted to perfection before being blended, preserving the natural flavor and aroma of the beans for an outstanding coffee experience.
Trung Nguyen Enterprise is strategically exporting its coffee products to the German market, aiming to enhance brand recognition and expand its international presence By leveraging Germany's growing coffee culture, Trung Nguyen seeks to introduce its unique flavors and high-quality offerings to a discerning audience The company is committed to maintaining sustainable sourcing practices while meeting the preferences of German consumers This initiative not only supports Trung Nguyen's growth objectives but also contributes to the global appreciation of Vietnamese coffee.
Coffee is imported directly from Germany and meets all safety standards for consumers They come in two pots for a total of 7oz/200grams of coffee.
The brand enjoys a strong reputation among German consumers, offering reasonable prices and a wide distribution network that makes their products easily accessible throughout Germany Additionally, their commitment to using natural ingredients ensures high quality However, the presence of many foreign brands in the market often leads to higher costs, which can make their products more expensive.
EXTERNAL ENVIRONMENT
Economic
record highs as estimated calculated at +3.8%.
Germany stands as Vietnam's largest trading partner in Europe, contributing to one-fifth of Vietnam's export turnover to the continent Despite the challenges posed by the pandemic, both nations have managed to sustain a positive growth trajectory In the initial two months of 2021, the bilateral trade turnover between Vietnam and Germany demonstrated resilience and continued to thrive.
The Vietnamese coffee market has shown promising growth, reaching $1.57 billion, which reflects an increase of over 5% compared to the same period last year This upward trend positions Vietnam as a significant player in the coffee industry, highlighting the potential for expanding its coffee products in the global market.
3 Social Germany has a population of more than 83 million people, making it the most populous country in the European Union The German people have a diverse culture and in the cuisine, coffee is considered a drink that is loved by many people Coffee was introduced to Germany in the 1670s and gradually became widespread According to data that Trung Nguyen Legend has studied, up to 86% of adults in Germany use coffee every day And on average 1 year, Germans drink up to 164 liters of coffee and this number is even greater than filtered water (https://trungnguyenlegend.com/ky-46-ca-phe-va-sach-cong-thuc-thinh) -vuong-cua-people- duc/) The Germans have an extremely developed coffee roasting industry and most of Germany's seaports are used as Europe's largest coffee transshipment points (http://thitruongnongsan.gov.vn/vn/tID25800_Nhu-cau) -ca-phe-tai-thi-truong-chau-Au.html)
Trung Nguyen Enterprise is strategically exporting its coffee products to the German market, aiming to capture the growing demand for high-quality coffee The company's commitment to excellence and unique flavor profiles positions it favorably among German consumers who appreciate premium coffee By leveraging effective international marketing strategies, Trung Nguyen seeks to enhance brand recognition and establish a strong presence in Germany's competitive coffee industry This expansion not only reflects the global appreciation for Vietnamese coffee but also opens new opportunities for growth and collaboration in the European market.
4 Technology Germany is famous for its highly advanced industry that helps them apply many technologies to make the world's best coffee-making equipment With trinamiX Mobile Near-Infrared (NIR) Spectroscopy Solutions helps determine the caffeine content and moisture content of coffee beans, coffee roasters monitor and better control the process of purchasing and refining coffee beans (https: //www.basf.com/fi/en/media/news-releases/2020/09/p-20- 294.html)
5 Environment Due to being a country with a relatively low average annual temperature of 8.4 degrees Celsius, it is difficult for Germany to cultivate and grow coffee on its own So both Germany and Europe have to import coffee from other countries And According to the EU report on the German environment in 2019, the effects of air pollution are increasing in Germany (https://ec.europa.eu/environment/eir/pdf/report_de_en.pdf) A large part comes from the German people's overuse of one-time cups These cups are made from paper, plastic and styrofoam and after use these cups will be thrown away, lying in landfills for many years releasing toxins for the environment Under the "green initiatives" program, the German government is trying to get rid of single-use cups and replace them with reusable cups And the Freiburg Cup system has been going very well
6 Legal German Coffee Tax Law stipulates that the tax rate for coffee goods and products is2.19 Euro/1kg The high tax rate makes the coffee market in Germany not so attractive(https://www.globalregulation.com/translation/germany/387591/index.html#BJNR191900009BJNE000501140) In addition, the German government has some amendments in the law to prevent environmental pollution Therefore, it is difficult for Vietnamese coffee products packaged with single-use plastic to enter this market (https://www.thebreaker.co.uk/the- german-plastic-pollution/)
IN ENVIRONMENT
Threat from new competitors
Southeast Asian countries, particularly Indonesia and Thailand, are increasingly focusing on the German market for coffee exports This shift raises concerns about pricing, market share, and competition for Trung Nguyen coffee within the region.
Trung Nguyen Enterprise is strategically exporting its coffee products to the German market, tapping into the growing demand for high-quality coffee in Europe The company's commitment to quality and sustainability positions it well to attract German consumers who value premium coffee experiences By leveraging effective international marketing strategies, Trung Nguyen aims to enhance its brand presence and expand its market share in Germany, ultimately contributing to the global coffee trade.
Power of supplier
Trung Nguyen's coffee export output remains largely unaffected by suppliers, as the company maintains exclusive supply agreements Their integrated care and production processes in Daklak ensure consistent quality and efficiency.
Trung Nguyen coffee masterpieces are crafted from the finest global ingredients, blending traditional oriental techniques with cutting-edge roasting technology This unique fusion, fueled by the passion of expert coffee makers, results in a distinctive energy coffee that embodies the essence of three renowned coffee cultures: Ottoman, Roman, and Zen.
(Trung Nguyen Legend Energy Coffee - Trung Nguyen Legend (trungnguyenlegend.com))
Threats from substitute products and services
In Germany, consumers enjoy a variety of beverages that provide similar energy-boosting effects as coffee, including energy drinks like Monster and Red Bull, as well as ready-to-drink coffee options The competitive pricing, diverse product offerings, and convenience of these alternatives pose significant challenges to Trung Nguyen's coffee roasting business.
Power of customers
• The main concern is the taste of German people, the taste of coffee is slightly bitter, they prioritize the taste of milk coffee over pure coffee.
• Many similar products of competitors
Trung Nguyen coffee, known for its meticulous care and premium production of coffee beans, is priced higher than the average market rate in Germany, yet it remains competitively priced for customers.
Fierce competition of competitors in the same industry
Tchibo exclusively utilizes high-quality Arabica coffee beans in its blends, sourcing them from skilled roasters and quality experts This positions Tchibo as a significant competitor in the German coffee roasting market, particularly against Trung Nguyen coffee.
Brazil is a major coffee export market in the world and a major competitor in the Vietnamese coffee export market in Germany.
Trung Nguyen Enterprise is strategically exporting its premium coffee products to the German market, capitalizing on Germany's growing coffee consumption trends The company aims to introduce its unique flavors and high-quality beans, appealing to German consumers' preferences for specialty coffee By leveraging effective international marketing strategies, Trung Nguyen seeks to establish a strong brand presence in Germany, enhancing its global footprint in the competitive coffee industry This initiative not only aims to boost sales but also to foster cultural exchange through the appreciation of Vietnamese coffee craftsmanship.
TARGET MARKET DESCRITION
positioning
To successfully establish and grow a Vietnamese coffee brand in the German market, Trung Nguyen will prioritize innovative product designs and a refreshed corporate image This strategy aims to secure a unique and valuable position in the minds of German consumers, guiding all marketing efforts in this competitive landscape.
=> The question here is: "How can consumers distinguish Trung Nguyen coffee brand from a series of long-standing brands from Germany?"
Trung Nguyen aims to captivate the German market with vibrant advertisements featuring the striking title "Coffee of Vietnam." By highlighting the unique values and benefits of their brand, Trung Nguyen seeks to create a lasting impression that sets it apart from other coffee brands in Germany.
Trung Nguyen proudly upholds its well-known slogan, "Inspire creativity," inviting coffee lovers to enjoy their beverages in a way that resonates with their personal tastes The unique flavors of Trung Nguyen coffee are crafted to satisfy even the most discerning palates, showcasing the essence of Vietnamese coffee made by Vietnamese hands.
Trung Nguyen positions its coffee products under the "GU" brand to emphasize its commitment to delivering authentic and rich coffee flavors When consumers think of robust coffee, Trung Nguyen coffee from Vietnam comes to mind as a top choice.
Market Entry Strategy
Trung Nguyen coffee brand has crossed the border of Vietnam and received the support of the overseas Vietnamese community as well as the loving attention of international friends.
Exporting coffee to the German market and distributing it at retail locations generates substantial profits for businesses, enabling them to earn foreign currency This income can be reinvested in machinery and equipment, facilitating company expansion and enhancing coffee production quality, ultimately boosting overall business efficiency.
Engaging in coffee export enhances Trung Nguyen's brand reputation globally, fostering competitive advantages that facilitate market expansion, increased market share, and higher profits.
Trung Nguyen Enterprise is strategically exporting its coffee products to the German market, aiming to tap into the growing demand for high-quality coffee among German consumers The company emphasizes its unique blends and rich flavors, which are representative of Vietnamese coffee culture By leveraging effective international marketing strategies, Trung Nguyen seeks to establish a strong brand presence in Germany, catering to both local preferences and expanding its global reach This initiative not only enhances the company's visibility but also promotes the richness of Vietnamese coffee on an international scale.
The export is also supported by the state through preferential policies such as investment credit, export credit, trade promotion as well as research and development support policies.
Trung Nguyen is set to enter the German market by expanding its export operations through business franchising The company has previously achieved success with its G7 - Mart model, which operates within the EMart retail system and is associated with the global corporation Costco This innovative G7 - Mart model is recognized as a significant advancement in franchising, enabling Trung Nguyen to effectively compete with various distributors in the retail sector.
Trung Nguyen coffee products, originating from the highlands of Buon Ma Thuot, are crafted using a blend of traditional methods and modern technology, making them accessible to consumers worldwide through franchising.
INTERNATIONAL MARKETING GOALS & OBJECTIVES
International Marketing Objectives
• Specific: Concrete, detailed, and well defined so that you know where you are going and what to expect when you arrive
• Measureable: Numbers and quantities provide means of measurement and comparison
• Achievable: feasible and easy to put into action
• Relevant: Considers constraints such as resources, personnel, cost, and time frame
• Time-Bound: A time frame helps to set boundaries around the objective
Trung Nguyen Enterprise is strategically exporting its premium coffee products to the German market, aiming to capture the growing demand for high-quality coffee among German consumers The company focuses on leveraging its unique Vietnamese coffee culture and flavors to differentiate itself in this competitive market By implementing effective international marketing strategies, Trung Nguyen seeks to establish a strong brand presence and build lasting relationships with local distributors and retailers in Germany This expansion not only enhances the company's global footprint but also promotes Vietnamese coffee on an international scale.
SMART OBJECTIVES OF TRUNG NGUYEN CAFE:
To establish a strong presence in the German coffee market, Trung Nguyen is prioritizing the development of brand awareness for its new product, Creative 8 By the end of 2021, the company aims to achieve an 18% increase in brand recognition among customers using Creative 8 products.
Increase sales: Increase 20% (M, A, R) by the end of 2021 (T), revenue from our Creative
Eight roasted and ground coffee products aim to enhance distribution channels and develop engaging content for special occasions such as Christmas, Mother's Day, and Easter By leveraging our website and blog, we strive to attract 40% more potential customers.
To enhance market distribution and increase market share, our goal is to capture an additional 5% of the market share or 7% of the population, focusing primarily on individuals aged 18-35, particularly office workers who prefer roasted and ground coffee in the German market We aim to maintain steady growth through strategic partnerships with distributors and effective sales promotions This objective is set to be achieved by the end of 2022.
Increas e brand awareness because this is a new product in the market, so it needs to be consumed by customers
Increase 18% in brand awareness development of Trung Nguyen
Cafe of customers using Creative products 8
The greater the brand awareness, the more favorable the business orientations of the business will be
This is an important factor to evaluate the product life cycle stage and developme
Selling 20% more high- quality Creative
2020, making good use of it
20% increase in revenue from the sale of Creative coffee products 8
Improve and improve the distribution system to create content on special days on websites and blogs in
Trung Nguyen Enterprise is strategically focused on exporting its premium coffee to the German market, capitalizing on the growing demand for high-quality coffee among German consumers The company aims to enhance its shipping capabilities to ensure timely delivery and maintain product freshness, which is crucial for customer satisfaction By leveraging effective marketing strategies and understanding local consumer preferences, Trung Nguyen intends to boost its sales and establish a strong presence in Germany's competitive coffee industry.
Extend market distribution and market share
In the German market, because this age group who often enjoys roasted coffee is 18-35, they are office workers.
Conquer an additional 5% market share or 7% of the population in which mainly people aged 18-
55, mainly office workers who like roasted and ground coffee in the German market
Improve the marketing of products to consumers in shopping centers, supermarkets
MARKETING PROGRAM
Product
For Trung Nguyen to create a masterpiece of coffee, it must originate from the careful and rigorous selection of the main raw materials Creative Product 8 is a delicate combination of
3 unique and best quality coffee beans: Arabica, Robusta and Excelsa.
Arabica coffee beans, sourced from the finest original varieties in Brazil and the highlands of Ethiopia—recognized as the birthplace of Arabica coffee—are known for their unique flavor profile These beans offer a mild balance of sour and bitter notes, complemented by subtle fruity undertones and a sweet aftertaste Additionally, Arabica coffee contains a moderate caffeine level, ranging from 1% to 2%.
Experience the unique blend of Arabica and Robusta coffee beans, featuring the robust flavors of Vietnamese coffee sourced from the Central Highlands Renowned for producing the world's finest Robusta beans, this region offers a coffee experience with a less sour taste compared to Arabica, highlighting a bold, bitter profile enriched with double the caffeine content, ranging from 3-4%.
Excelsa coffee beans from the Philippines offer a unique flavor profile characterized by the taste of ripe fruit and a fragrant aroma of wood and flowers Notably, these beans have a low caffeine content, averaging around 1%.
By choosing coffee beans without pesticides, without mixing impurities and additives Plus its own roasting and roasting know-how and using modern production lines that meet FDA
Trung Nguyen Enterprise is strategically exporting its unique Creative 8 coffee to the German market, adhering to international and European standards Known for its distinctive flavor profile, Creative 8 features a captivating aroma and a mild bitterness that appeals to a diverse audience, making it suitable for coffee lovers of all ages and genders.
With the 3S formula, Trung Nguyen creates CREATIVE 8 super clean, delicious coffee for coffee connoisseurs, specializing in creative brain activity.
Besides, Creation 8 especially has very good health benefits such as:
• Helps to refresh the mind
• Beneficial for the liver and heart
• Helps anti-oxidant, prevent cancer and aging process 1.2 Branding
Trung Nguyen is recognized as one of Vietnam's leading coffee groups, renowned for its unique and exceptional products Under the guidance of Chairman Dang Le Nguyen Vu, Trung Nguyen Coffee transcends ordinary offerings, promoting energy coffee that embodies the philosophy of "The Energy Coffee That Changes Life." This commitment has significantly enhanced both the Vietnamese and international coffee markets, fostering a growing appreciation for coffee The Creative 8 product, positioned as "International Quality - National Brand," serves not only everyday consumers but also as a prestigious gift for Heads of State and Diplomats, highlighting Trung Nguyen Group's dedication to excellence in coffee production.
The packaging of the Creative 8 product consists of 3 layers:
• Primary package: The product will be wrapped in plastic packaging with black and white tones, above it is the word Special showing special properties with the product name
"Creative 8" features a striking image of King Napoleon of France in stylized gold against a sleek black background, accompanied by a notable quote from the king and product volume details The standout phrase "Energy Coffee - Life-changing Coffee" is prominently displayed to emphasize the product's appeal What sets Creative 8 apart is its innovative vacuum-sealed packaging, designed to conserve space, maintain freshness, and preserve the original moisture of the coffee.
Trung Nguyen Enterprise is strategically expanding its coffee exports to the German market, capitalizing on Germany's growing demand for high-quality coffee products By leveraging its unique blends and robust flavors, Trung Nguyen aims to establish a strong presence in this competitive market The company's commitment to quality and sustainability aligns with the preferences of German consumers, positioning it favorably for long-term success Through targeted marketing strategies and partnerships, Trung Nguyen seeks to enhance brand recognition and foster a loyal customer base in Germany.
The product is elegantly packaged in a cylindrical cardboard box featuring a white body with metallic accents and a prominent image of King Napoleon at the center The Trung Nguyen coffee logo and the slogan "The No.1 Coffee!" are displayed prominently, while the sides of the box share the corporation's stories, philosophy, contact information, quality criteria, and preparation methods The black embossed lid, adorned with the Creative 8 logo, adds a touch of sophistication to the overall design.
The shipping package consists of a 6kg carton containing 12 boxes, each weighing 500g The front features the Trung Nguyen logo prominently, with "Creative 8" displayed in bold, eye-catching fonts alongside an image of King Napoleon to captivate customers Additionally, the packaging includes brand affirmations and definitions that highlight the group's distinctiveness, as well as essential information and barcodes to facilitate the transportation process.
Trung Nguyen Enterprise is strategically exporting its premium coffee products to the German market, aiming to capture the growing demand for quality coffee among German consumers By leveraging its unique blends and rich flavor profiles, Trung Nguyen seeks to establish a strong presence in Germany's competitive coffee industry The company is focused on enhancing brand awareness and building customer loyalty through targeted marketing initiatives and partnerships As a result, Trung Nguyen is poised to become a key player in the European coffee market, promoting Vietnamese coffee culture on an international stage.
The Trung Nguyen Legend logo features a harmonious black and white design, highlighted by a creative brush stroke that embodies the essence of strong coffee At its center, a sun symbol represents life and the supreme being, with eight rays signifying the fundamental elements of the universe: Heaven, Earth, Fire, Thunder, Wind, Water, Mountain, and Soil This central sun not only illuminates but also dispels negativity The interplay of sun, moon, and heart symbols reflects the universal laws and emotional balance, with the heart representing Mind, Goodness, and Virtue, while the sun and moon symbolize the equilibrium of the universe.
The 5 bars in the overall circle represent the 5 energies of Creation, Wealth, Success, Happiness and Love.
The logo of Trung Nguyen features a distinctive red arrow pointing upwards, symbolizing the brand's ambition to reach new heights and its aspiration for growth The three white lines represent the entrance to a stilt house, reflecting the rich cultural identity of the Central Highlands Accompanying these elements is the group's name, reinforcing Trung Nguyen's status as a leading brand in the industry.
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 8 products.
Price
In the initial phase of launching Trung Nguyen's Creative Coffee 8 (available in 250g and 500g) in the German market, we adopted a market penetration pricing strategy for the first six months Following this, we transitioned to a skimming pricing strategy in the second phase to maximize profits.
Trung Nguyen Enterprise is strategically exporting its premium coffee products to the German market, capitalizing on Germany's growing coffee consumption The company's commitment to quality and authenticity sets it apart in the competitive landscape, appealing to German consumers who value unique flavors and sustainable sourcing By leveraging effective international marketing strategies, Trung Nguyen aims to enhance brand visibility and establish a strong presence in Germany, fostering long-term relationships with local distributors and coffee enthusiasts alike.
September 1, 2021 - March 1, 2022: Market penetration pricing strategy
- After March 1, 2022: Market skimming pricing strategy
Upon entering the German market, we discovered that consumer brand awareness for Trung Nguyen coffee was relatively low To address this challenge, we implemented a market penetration pricing strategy aimed at boosting brand visibility and recognition among German consumers.
After observing a rise in brand recognition among German consumers over a six-month period, we implemented a market skimming strategy Creative 8 targets an affluent audience that enjoys the hobby of drinking roasted and ground coffee, indicating a demographic with stable incomes.
=> Through extremely good product quality and suitable for German coffee taste, they will be willing to pay these prices.
-The initial price when bringing Creative 8 (box of 5000gr) to the German market is 17 Euros equivalent to 459,000 (VND)
-The initial price when bringing Creative 8 (250g box) to the German market is 9 Euros equivalent to 240,000 (VND)
-With the initial price when bringing Creative 8 product (box of 5000gr) to the German market is 20 Euro equivalent to 544,000 (VND)
-The initial price when bringing Creative 8 (250g box) to the German market is 12 Euros equivalent to 330,000 (VND)
Trung Nguyen Enterprise is strategically exporting its coffee products to the German market, aiming to enhance brand recognition and capture a share of the European coffee industry The company focuses on delivering high-quality coffee, leveraging its unique Vietnamese flavors to appeal to German consumers By implementing effective international marketing strategies, Trung Nguyen seeks to establish a strong presence in Germany, catering to the growing demand for specialty coffee This expansion not only promotes Vietnamese coffee culture but also contributes to the company's global growth objectives.
Promotion
"Creativity" is engraved in the hearts of those who enjoy Trung Nguyen coffee.
Internet advertising is one of the most powerful marketing tools available today, capitalizing on the vast number of users online With thousands of individuals accessing the Internet every minute, businesses have a unique opportunity to engage with a massive audience Embracing this digital landscape can lead to significant growth and increased visibility for brands.
Trung Nguyen Enterprise aims to expand its coffee exports to the German market by leveraging various online platforms such as YouTube, Facebook, Zalo, and Google for advertising To effectively promote their products, the company should collaborate with a reputable online marketing agency to develop a comprehensive marketing strategy Engaging marketing experts will facilitate the implementation of this plan, ensuring a successful entry into the competitive German coffee market.
Engage your customers by offering product samples in high-traffic locations like shopping malls and parks, while simultaneously distributing informative leaflets This cost-effective advertising strategy, particularly effective for new coffee brands or promotional events, allows customers to experience the product firsthand, enhancing their connection to your brand.
Coffee products "creative 8" when buying more than 2 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's coffee cup, though small, is an essential item in every household, reflecting the brand's commitment to quality and customer care.
Trung Nguyen Coffee is offering a special promotion where customers who purchase three boxes (500g) or five boxes (250g) can buy a ceramic filter at a discounted price of 4.5 Euro (120,000 VND) This exclusive offer allows customers to own a unique item from the Trung Nguyen brand, enhancing their coffee experience.
Trung Nguyen Enterprise is expanding its reach by exporting high-quality coffee to the German market With a focus on premium coffee products, the company aims to cater to the growing demand for specialty coffee in Germany By leveraging its strong brand reputation and unique product offerings, Trung Nguyen seeks to establish a significant presence in this competitive market The company’s commitment to quality and sustainability will resonate with German consumers, enhancing its market position and driving growth in the international coffee sector.
Trung Nguyen is set to collaborate with various media companies to promote its coffee production through a series of events, including marathons, tourist car rallies, and charity surgeries These initiatives not only contribute positively to the environment but also enhance the brand's image in the eyes of customers By fostering a friendly and community-oriented image, Trung Nguyen aims to achieve greater success in the competitive coffee market.
Trung Nguyen coffee will offer a 2-5% discount on products at retail locations prior to launch, aiming to boost customer traffic and attract potential buyers This strategy is designed to enhance market share in Germany and effectively compete with other coffee brands.
PLACE
- Two target supermarket chains for Trung Nguyen Coffee
Edeka, Germany's largest supermarket chain with approximately 4,000 stores nationwide, offers a diverse selection of daily essentials Similar to Rewe, Edeka provides fresh fruits, vegetables, bread, milk, and canned goods Additionally, larger branches stock essential household items, including soap, towels, personal care products, stationery, and kitchenware.
Rewe is one of Germany's largest supermarket chains, boasting approximately 3,300 stores nationwide Known for its extensive selection of high-quality products, Rewe features a diverse array of branded items The supermarket specializes in a wide variety of food categories, including fresh, dry, and canned goods, as well as ready-to-eat meals.
(The experience of going to a supermarket in Germany is "good" like a local ô AMEC)
- The second is to provide roasted and ground coffee ingredients for take away coffee shops
To establish a strong presence in the German market, Trung Nguyen coffee must focus on positioning its high-quality products in major supermarkets, thereby enhancing brand value and demonstrating product excellence This strategic approach explains why Trung Nguyen does not prioritize offering a wide range of inexpensive products.
EVALUATION, MEASUREMENT AND CONTROL
Measuring marketing
Effectiveness is crucial for optimizing processes, particularly in marketing campaigns By defining and measuring key performance indicators (KPIs), businesses can identify successful strategies and areas for improvement This insight allows for more efficient budget allocation, ultimately leading to greater success in marketing efforts.
Metrics to be taken into account:
Roi = Sales revenue - Budget spent)/Budget spent
To enhance profitability, Trung Nguyen Coffee should consider reducing certain budgets to improve its ROI ratio, thereby ensuring that investments through sales yield higher returns.
CFW = Budget spent / orders = 5,550,000 / 370,000 = 15 (Euro)
To improve profitability, it's essential to reduce unnecessary expenses and optimize distribution and advertising channels, as the current cost per order remains high relative to the product's selling price Increasing the number of orders in the near future is crucial for enhancing overall efficiency and revenue.
TrungNguyenLegend focuses on achieving its innovative product goals in the German market by effectively managing resources across key areas such as sales, market share, and marketing expenses The finance and accounting departments summarize these metrics annually to ensure comprehensive oversight and strategic alignment.
Trung Nguyen Enterprise is strategically focusing on exporting its coffee products to the German market This initiative aims to enhance brand visibility and capture a significant share in the competitive European coffee sector The board of directors will review the export plan, comparing actual outcomes with target expectations to identify gaps By analyzing these discrepancies, the company seeks effective solutions to optimize its market entry strategy and improve overall performance in Germany.
ACTION PLAN
Nguyen” -Participated in the seminar “IT'S
STARTING AGAIN! COFFEE MEETS UNIVERSE - DATA, TRENDS &
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
Friends” -After the market report is available, during this period Trung Nguyen Legend will start a campaign to bring Creative 8 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
“Together With Us” - In this campaign, with the aim of increasing brand awareness Trung Nguyen 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
Trung Nguyen Enterprise is strategically exporting its coffee products to the German market, focusing on enhancing brand visibility and market penetration The company aims to leverage Germany's growing coffee consumption trends by introducing high-quality Vietnamese coffee Through effective international marketing strategies, Trung Nguyen seeks to establish a strong presence in Germany, catering to local preferences while promoting the unique flavors of Vietnamese coffee The export initiative not only enhances the company's global footprint but also contributes to the appreciation of Vietnamese coffee culture in Europe.
- 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
After the campaigns have been implemented, this period Trung Nguyen Legend will focus on growing revenue and market share in the whole German coffee market.
The sales forecast for TrungNguyen from September 2021 to October 2022 is derived from the company's revenue growth observed between 2019 and 2020 Each unit sold is a box containing 500 grams The projections anticipate a 10% annual revenue growth and a 5% profit margin, allowing us to estimate revenue and profit for the next five years based on the performance of the first year.
Sale forcast table in 1st year
Price per unit (500gr) 17 EUR 17 EUR 20 EUR 20 EUR
Cost per unit 11 EUR 11 EUR 11 EUR 11 EUR
Trung Nguyen Enterprise is expanding its coffee exports to the German market, aiming to introduce its unique Vietnamese coffee culture to German consumers The company focuses on high-quality coffee products, leveraging its strong brand presence in Asia to capture the interest of European coffee lovers By understanding the preferences of the German market, Trung Nguyen is strategically positioning itself to meet the growing demand for specialty coffee This initiative not only enhances the company's global footprint but also promotes Vietnamese coffee on an international scale.
Marketing 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 30.000 EUR 60.000 EUR 120.000 EUR 240.000 EUR
Estimate Revenue and profit in next 5 years
1st year 2nd year 3rd year 4th year 5th year
Trung Nguyen Enterprise is strategically exporting its coffee products to the German market, aiming to establish a strong presence in Europe The company focuses on leveraging its unique coffee blends and high-quality standards to attract German consumers By understanding local preferences and market trends, Trung Nguyen is poised to enhance its brand recognition and expand its customer base in Germany The export initiative reflects the company's commitment to international growth and the promotion of Vietnamese coffee on a global scale.
EUR EUR EUR EUR EUR
Trung Nguyen Enterprise is poised to expand its coffee exports to the German market, leveraging its rich heritage and quality products With a focus on international marketing strategies, the company aims to capture the growing demand for premium coffee in Germany By emphasizing the unique flavors and sustainable sourcing of its coffee beans, Trung Nguyen seeks to establish a strong presence in this competitive market The initiative not only highlights the brand's commitment to quality but also aims to enhance its global footprint in the coffee industry.
In researching the German market for exporting Trung Nguyen coffee products, valuable insights were gained into the business practices of Trung Nguyen and the coffee export industry as a whole Amidst the growing competition in production, Trung Nguyen faces several challenges, particularly regarding its marketing strategy Effective strategic planning is crucial for success in this highly competitive landscape.
This article provides an in-depth analysis of marketing and export strategies for businesses, considering both macroeconomic and microeconomic factors It aims to present clear strategies that can enhance business growth in international markets.
Despite some data inconsistencies stemming from the subjective nature of the topic, it is anticipated that the insights gained will provide significant practical value to the company This approach aims to enhance marketing strategies, drive business success, and improve overall quality.
Trung Nguyen Enterprise is expanding its reach by exporting high-quality coffee to the German market This strategic move aims to tap into Germany's growing demand for premium coffee products By leveraging its unique blends and rich flavors, Trung Nguyen seeks to establish a strong presence among German coffee enthusiasts The company is committed to maintaining sustainable practices while ensuring that its products meet the preferences of German consumers Through targeted marketing efforts and partnerships, Trung Nguyen Enterprise is poised to enhance its brand visibility and drive sales in this competitive market.
1) https://baodautu.vn/gan-300-tan-ca-phe-viet-len-duong-sang-chau-au-huong-thue-0- d129678.html
2) http://connectviet.moit.gov.vn/default.aspx? page=news&doail&category_idf&idU59
Trung Nguyen Enterprise is strategically exporting its coffee products to the German market, aiming to capture the growing demand for high-quality coffee in Europe With a focus on maintaining the unique flavor profiles and quality that the brand is known for, Trung Nguyen is positioning itself as a premium coffee choice for German consumers The company is leveraging international marketing strategies to enhance brand visibility and establish a strong presence in Germany, which is recognized for its sophisticated coffee culture By understanding local preferences and trends, Trung Nguyen aims to effectively penetrate the German market and expand its global footprint.
Trung Nguyen Enterprise is strategically expanding its coffee exports to the German market, tapping into the growing demand for high-quality coffee products With a focus on unique flavors and sustainable sourcing, Trung Nguyen aims to establish a strong brand presence in Germany The company’s commitment to quality and innovation positions it well to compete in the European coffee industry, catering to the preferences of German consumers who value premium coffee experiences By leveraging effective international marketing strategies, Trung Nguyen is poised to enhance its global footprint and drive sales in this lucrative market.