Executive Summary
The importance of building a business strategy
Business activities are shaped by both external and internal factors, making the development of a business strategy essential for future orientation By analyzing and forecasting the business environment, companies can create strategies that allow them to be flexible and proactive in response to market fluctuations This approach ensures that businesses operate and evolve in the right direction, ultimately enhancing their competitive position in the market.
Objectives of the report
The objective of Highlands Coffee's business strategy is to achieve global expansion, with a particular focus on the Netherlands This initiative aims to enhance brand development and increase the business scale, ultimately reaching a broader customer base to boost profitability.
Introduce
Overview of Highlands Coffee company
Highlands Coffee is a well-known brand in Vietnam, particularly popular among coffee enthusiasts and young professionals Established in 1998, it has become a go-to destination for quality coffee and fast food, appealing to a diverse audience across the country.
In 1999, David Thai, an overseas Vietnamese entrepreneur, made the heartfelt decision to leave his family in the United States and return to Vietnam to establish a business, driven by his deep love for his homeland.
Figure 1: Founder of Highlands Coffee
Highlands Coffee is poised to implement a robust international business strategy in the Netherlands from 2023 to 2025 This strategy focuses on expanding brand presence and enhancing market penetration in the Dutch coffee sector Key initiatives will include establishing strategic partnerships, optimizing supply chain operations, and tailoring marketing efforts to local preferences By leveraging innovative approaches and sustainable practices, Highlands Coffee aims to increase its customer base and drive growth in the competitive European market The emphasis on quality and customer experience will be central to their efforts, ensuring a strong foothold in the Netherlands over the next three years.
David Thai, the founder of Highlands Coffee Group, was born in Vietnam in 1972 and relocated to Seattle, USA, with his family at the age of 7 He pursued a degree in business administration at the prestigious University of Washington, one of the leading institutions in the United States.
Highlands Coffee developed in the Netherlands
The Netherlands comprises six islands in the Caribbean, including Aruba and parts of the autonomous territory of the Netherlands Antilles, all of which are part of the Kingdom of the Netherlands Geographically, the Netherlands is situated in Western Europe, bordered by Germany to the east, Belgium to the south, and the North Sea to the west and north.
The climate in the Netherlands is characterized by a temperate oceanic climate, with an average temperature of 10 degrees Celsius to
25 degrees Celsius Because of the north and west facing the Atlantic Ocean The weather in the Netherlands is very mild and pleasant.
Highlands Coffee is set to implement a comprehensive international business strategy in the Netherlands from 2023 to 2025 This strategy focuses on expanding brand presence, enhancing customer engagement, and adapting to local market preferences By leveraging innovative marketing techniques and establishing strategic partnerships, Highlands Coffee aims to increase its market share and drive sustainable growth in the competitive Dutch coffee market The plan emphasizes quality product offerings and exceptional customer service to build a loyal customer base while ensuring compliance with local regulations and cultural nuances.
Highlands Coffee is poised to implement a comprehensive international business strategy in the Netherlands from 2023 to 2025 The focus will be on expanding brand presence and market share through targeted marketing campaigns and strategic partnerships Emphasizing quality and sustainability, Highlands Coffee aims to attract local consumers and establish a loyal customer base Additionally, the strategy includes leveraging digital platforms for enhanced customer engagement and exploring innovative product offerings to meet diverse consumer preferences Overall, this three-year plan is designed to solidify Highlands Coffee's position in the competitive Dutch market.
Highlands Coffee PESTLE MODEL IN THE Netherland Market
Political problems
Dutch politics emphasizes achieving broad consensus on key issues within both the political sphere and society The monarch serves as the head of state, possessing limited constitutional powers, and has the right to receive reports and be consulted on governmental matters.
Cabinets usually comprise 13 to 16 ministers alongside a varying number of secretaries of state, with one to three serving as non-ministerial ministers The prime minister, referred to as primus inter pares, leads the cabinet but does not possess any additional authority over fellow ministers.
To ensure political stability in the Netherlands, state institutions play a crucial role The executive branch is led by the Queen, who serves as the head of state, actively participating in government alongside the Prime Minister and other ministers The Prime Minister heads the government, supported by a cabinet that includes two Deputy Prime Ministers, 14 ministers, and 9 secretaries of state The legislative branch is a bicameral National Assembly with a four-year term, comprising an upper house of 75 members elected indirectly by provincial representatives and a lower house of 150 members directly elected by the public The judiciary is anchored by the Supreme Court, where judges are appointed for life by the Queen from a list provided by the House of Commons, alongside 61 district courts that handle minor criminal and civil cases.
Highlands Coffee is set to implement a comprehensive international business strategy in the Netherlands from 2023 to 2025 This strategy aims to enhance brand visibility and expand market share in the competitive coffee industry Key initiatives will include establishing local partnerships, optimizing supply chains, and tailoring marketing efforts to resonate with Dutch consumers By focusing on quality and sustainability, Highlands Coffee intends to position itself as a preferred choice among coffee lovers in the region The plan also emphasizes leveraging digital platforms to engage customers and drive sales growth effectively.
The District Court hears more substantial cases and 5 the Court of Appeals hears complaints from the district courts.
In recent years, political and diplomatic relations between Vietnam and the Netherlands have become increasingly robust, marked by regular bilateral visits and interactions between senior leaders This ongoing engagement at international and regional forums has significantly enhanced political trust and fostered strong cooperation across various fields.
The Netherlands has become an important leading trade partner of Vietnam in Europe with trade turnover increasing steadily over the years.
Economic problems
The Netherlands ranks among the top 10 countries globally for coffee consumption, with a total market value of approximately 3.5 billion euros annually As a significant hub for coffee importation and re-exportation in Europe, it serves as a strategic gateway for small and medium-sized manufacturing enterprises aiming to enter the European market, making it an ideal starting point for future expansion.
The Netherlands showcases significant potential for coffee consumption, with approximately 55,000 tons consumed in 2017 The majority of this coffee is imported from key producers like Brazil, Vietnam, and Honduras On average, each Dutch individual enjoys about two and a half cups of coffee daily.
Figure 5: Consumption of coffee products in EU countries in 2017 ge 9
Highlands Coffee is set to implement a comprehensive international business strategy in the Netherlands from 2023 to 2025 This strategy aims to enhance brand visibility and market penetration in the Dutch coffee market Key initiatives will include establishing partnerships with local distributors, optimizing supply chains, and tailoring product offerings to meet local consumer preferences Additionally, Highlands Coffee will focus on sustainable practices to align with global trends and consumer demands Through these efforts, the company aims to solidify its presence and drive growth in the competitive European market.
Highlands Coffee is set to implement a comprehensive international business strategy for the years 2023 to 2025, focusing on expansion into the Netherlands This strategic plan aims to enhance brand visibility and establish a strong market presence in Europe Key initiatives will include tailored marketing campaigns, partnerships with local suppliers, and the introduction of unique product offerings that cater to Dutch consumer preferences By leveraging its rich Vietnamese coffee heritage, Highlands Coffee seeks to differentiate itself in a competitive market while ensuring sustainable growth and profitability over the next three years.
Between 2017 and 2020, the Netherlands consistently ranked as the top coffee-consuming country globally, highlighting the Dutch passion for coffee This presents a significant opportunity for Highlands Coffee to enter and thrive in the Dutch coffee market.
Figure 6: Coffee consumption in EU countries in 2020
In 2020, the GDP per capita of the Netherlands was $52,304, reflecting a decline of 4.27% from the previous year, which saw a GDP per capita of $52,295 in 2019 This represents a decrease of $9 per person.
Figure 7: Dutch GDP per capita graph (1960 - 2020) Looking at the chart above, we can see that in the period 1960-2020 the GDP per capita of the Netherlands reached:
− The highest peak in 2008 with 57,880 USD/person
Highlands Coffee is set to implement a comprehensive international business strategy in the Netherlands from 2023 to 2025 This three-year plan aims to enhance brand presence and expand market share in the Dutch coffee industry Key initiatives will focus on localizing product offerings, establishing partnerships with local suppliers, and leveraging digital marketing strategies to engage consumers effectively By prioritizing sustainability and quality, Highlands Coffee seeks to build a loyal customer base while adapting to the unique preferences of the Dutch market This strategic approach will position Highlands Coffee for long-term success and growth in the competitive European coffee landscape.
− Lowest in 1960 with 1,069 USD/person
The productivity levels in this region significantly surpass those of typical countries, as evidenced by its impressive GDP of $850 billion, generated by a population of 17 million.
In recent years, economic, trade, and investment cooperation between the Netherlands and Vietnam has significantly advanced The Netherlands has emerged as a key trade partner for Vietnam in Europe, with a consistent increase in trade turnover Additionally, the Netherlands remains one of the largest European investors in Vietnam, highlighting the strong investment ties between the two nations.
Social issues
Age structure: ặ 0-14 years old: 16,917.4% (1,460,2341,485,873 male / female 1,393,7661,416,999) ặ 15-64 years old: 65.5% (male 5,558,960/ female 5,500,066) ặ 65 years and older: 17.6% (1,331,258 male/ 1,633.06) female
Average life expectancy for men: 79.02 years
Average life expectancy for women: 83.34 years old
3.2 People's attitude to the product
In the Netherlands, coffee is celebrated not only as a stimulating beverage but also as a significant contributor to the national economy The country attracts numerous investors and tourists eager to experience its unique coffee culture.
Technology problem
Discover the latest market trends and future growth opportunities in the Dutch coffee industry through research conducted by Euromonitor International's local analysts Their expertise in both industry and geography equips you to make informed decisions, identify profitable opportunities, and build resilience in times of market uncertainty.
Highlands Coffee is set to implement a comprehensive international business strategy in the Netherlands from 2023 to 2025 This strategy aims to enhance brand visibility and market penetration in a competitive landscape Key initiatives will focus on local sourcing, establishing partnerships with Dutch suppliers, and adapting the menu to cater to local tastes Additionally, Highlands Coffee plans to leverage digital marketing and social media to engage with consumers effectively The goal is to create a sustainable presence in the Dutch market while maintaining the brand's unique identity and values.
Usually, intellectual property in the Netherlands refers to specific rights to use immaterial things and obtain certain benefits from this use.
TYPES OF INTELLECTUAL PROPERTY RIGHTS OF THE Netherlands:
The main intellectual property rights in the Netherlands are copyright, patent rights, proprietary rights, trademarks, designs and trade names.
Legal issue
The Dutch legal system operates under the civil law framework, commonly referred to as the continental European legal system, which encompasses the comprehensive rules applied and interpreted by magistrates.
Dutch law or at least the Dutch civil code (Burgerlijk Wetboek) also has some influence on the judiciary of other countries.
5.2 Principles of cooperation with Vietnam
The Prime Minister expressed optimism that the Netherlands would assist Vietnam in linking its ports and industrial zones with Europe He also urged the Dutch Parliament to expedite the ratification of the EU-Vietnam Investment Protection Agreement (EVIPA) to enhance trade and investment activities, fostering a faster, stronger, and more sustainable economic partnership between the two nations.
Ethical issues
The Netherlands is recognized by Transparency International as one of the countries with the lowest corruption levels globally, highlighting its strong anti-corruption measures In 2020, the country maintained a high anti-corruption rating, reflecting its commitment to transparency and integrity in governance.
82 and it tends to increase.
6.2 People's views on environmental protection
Not expensive cars, bicycles are the main means of transport are recommended to be used at Netherlands
Over the decades, wastewater treatment in the Netherlands has significantly advanced due to stringent policies and measures implemented by the government and relevant ministries, departments, and agencies.
Highlands Coffee is set to implement a robust international business strategy in the Netherlands from 2023 to 2025 This strategy aims to enhance brand recognition and expand market presence in a competitive coffee industry By focusing on local partnerships and sustainable sourcing, Highlands Coffee will cater to the preferences of Dutch consumers while maintaining its unique Vietnamese heritage Key initiatives will include targeted marketing campaigns and the introduction of innovative coffee products to attract a diverse customer base Overall, this strategic approach is designed to drive growth and establish Highlands Coffee as a leading player in the Dutch market.
AUDITING THE BUSINESS MARKET IN THE NETHERLANDS
Market potential
The Dutch market is considered as a gateway and one of the hubs for transshipment of goods into the
The European market is enhancing connectivity between ports and industrial zones across Europe Dutch agriculture is prioritizing sustainability, emphasizing healthy and safe food sources while demonstrating a strong commitment to landscape and environmental preservation.
The level of competition
It is worth mentioning that the export turnover of
Dutch agricultural products consistently rank among the best globally, showcasing exceptional efficiency and competitiveness This presents significant challenges for investors in the agricultural sector, especially in the coffee market.
The Netherlands offers favorable tax and business policies to attract foreign investors, making it easy to establish and maintain a business With minimal formalities required, the country also provides dedicated government organizations to assist foreign companies in setting up operations and adapting to the local market.
The Netherlands actively engages in numerous bilateral and multilateral agreements while participating in various organizations, ensuring cohesive policies and a fair legal system This robust legal framework fosters an environment of fair competition among businesses, contributing to a stable and equitable market landscape.
Highlands Coffee is set to implement a comprehensive international business strategy in the Netherlands for the years 2023 to 2025 This strategy focuses on expanding brand presence, enhancing customer engagement, and leveraging local market trends By prioritizing quality and sustainability, Highlands Coffee aims to establish a strong foothold in the competitive Dutch coffee market The plan includes targeted marketing campaigns and collaborations with local suppliers to ensure authenticity and relevance Overall, this strategic approach is designed to drive growth and foster long-term success in the Netherlands.
Social and cultural influences
The Netherlands ranks among the leading countries globally in English proficiency, yet many e-commerce websites still utilize local languages This highlights the importance for businesses to consider language preferences when engaging with the Dutch market.
When first interacting with Dutch people, foreigners will have a general impression that they are quite cold Dutch people usually won't start a conversation with strangers.
However, if you are proactive in starting a conversation, the
Dutch people will be more friendly.
Consumers in this country prioritize product quality over the origin of manufacture, whether domestic or foreign They are willing to invest in higher-priced items, especially if those products align with their hobbies and interests.
With government backing, businesses and scientists in the Netherlands are pioneering innovative ways to recover valuable resources from waste, such as filtering phosphorus and nitrogen from urine for use as fertilizer, repurposing old fishing nets into floor mats, and transforming plastic bottles into bicycle paths and cement bricks This technology not only enables companies like Highlands Coffee to significantly cut waste treatment costs by recycling materials into products like water cups and trays, but also fosters consumer trust through demonstrated professional ethics.
Highlands Coffee is set to implement a comprehensive international business strategy in the Netherlands for the years 2023 to 2025 This strategy aims to enhance brand visibility and market penetration in the Dutch coffee market Key initiatives will focus on local partnerships, sustainable sourcing, and adapting product offerings to meet local tastes The plan also includes leveraging digital marketing and social media to engage with consumers effectively By prioritizing quality and customer experience, Highlands Coffee aims to establish a strong foothold and drive growth in this competitive landscape.
YEARS (2023 - 2025)
SWOT matrix analysis of Highlands Coffee in the Netherlands
2 Applying many convenient means of support for the process of payment and service at the shop.
4 Active financial resources at branches
5 Diverse products, suitable for many customer groups
1 The price is not really suitable for all classes of customers
2 There is heterogeneity across stores
3 Rarely appear in remote rural areas
4 No feedback corner for customers yet Chance (O)
2 Top coffee consuming country in the world
1 Economic pressure after the Covid-19 pandemic
S(2,3,5) & T(2,3): Horizontal diversification strategy W(3,4) & T(1): Forward integration strategy
Highlands Coffee is set to implement a robust international business strategy in the Netherlands from 2023 to 2025 This strategic plan aims to enhance brand visibility and expand market presence in the competitive Dutch coffee market Focusing on local partnerships and sustainable sourcing, Highlands Coffee will cater to the preferences of Dutch consumers while promoting its unique Vietnamese coffee culture The initiative will also leverage digital marketing and e-commerce platforms to reach a wider audience, ensuring a significant growth trajectory in the coming years.
Table 1: Highlands Coffee's SWOT model
Highlands Coffee is set to implement an international business strategy from 2023 to 2025, focusing on expanding its presence in the Netherlands This strategic plan aims to enhance brand recognition and market share in a competitive landscape By leveraging local partnerships and adapting to consumer preferences, Highlands Coffee seeks to establish a strong foothold in the Dutch market The company's commitment to quality and sustainability will be central to its growth strategy, ensuring alignment with local values Overall, Highlands Coffee's approach will prioritize innovation and customer engagement to drive success in this new market.
Formulate a strategy within 3 years (2023 - 2025)
In order for Highlands Coffee to appear on the coffee market in the Netherlands, businesses need to implement a few appropriate strategies to develop their brand.
The Netherlands ranks among the highest coffee-consuming countries globally, primarily importing its coffee from Brazil, Vietnam, and Honduras Dutch coffee culture uniquely pairs coffee with snacks, presenting a significant opportunity for Highlands Coffee to leverage its strengths and successfully enter the Dutch coffee market.
Franchising is an emerging strategy for market development in the Netherlands, presenting significant potential for growth Simultaneously, the Highlands Coffee brand is poised to gain rapid recognition among the local population.
Highlands Coffee can fully apply this strategy to develop its business in the international market in general and the Netherlands in particular.
Highlands Coffee divides the menu of the restaurant into 2 main groups: Beverages and FOODS
Regarding the analysis of the beverage group:
Beverage group: Highlands Coffee is divided into six groups: Café, Phindi, Café Espresso, Tea, Freeze and other beverages But there are really only three main groups:
- Group 1: CAFÉ (Café, Phindi and Café Espresso)
- Group 2: TEA (Lotus tea, fruit tea and green tea)
Highlands Coffee's success can be attributed to the significant revenue generated by these three drink groups, which have become the cornerstone of its business.
Highlands Coffee strategically focuses on two primary food offerings: fast food and cakes, catering to the Dutch preference for enjoying cake with their coffee This choice reflects a deep understanding of local tastes, ensuring that the cake flavors resonate with the community, allowing everyone to indulge comfortably.
Highlands Coffee is set to implement a comprehensive international business strategy for the years 2023 to 2025, focusing on expanding its presence in the Netherlands The strategy aims to enhance brand recognition, adapt to local market preferences, and establish strategic partnerships to drive growth By leveraging innovative marketing techniques and optimizing supply chain operations, Highlands Coffee intends to increase its market share and strengthen customer loyalty in this competitive landscape The plan emphasizes sustainability and quality, aligning with consumer trends in the Netherlands, ultimately positioning Highlands Coffee as a leading player in the coffee industry.
Choose the method of market entry
To minimize risks when entering a significant market like the Netherlands, selecting an appropriate market penetration strategy is crucial Franchising stands out as one of the most prudent and reliable investment options, particularly in the food and beverage sector This approach allows companies to enter international markets cost-effectively while safeguarding their brand presence abroad.
The franchise agreement typically includes training, provision of management services, and activities carried out under the franchisor's instructions.
− Expand your business model and distribution system of products and services as quickly as possible.
− Get more stable income from franchise fees from franchisees.
− Minimize risks and costs when developing in new markets.
− Increase brand reputation for the company
Franchisees can successfully operate a franchise without prior business experience, as they receive comprehensive support and training programs These resources cover essential aspects such as employee training, financial planning, and the franchise's business model, including store layout and even the design of staff uniforms.
− Inherit the franchisor's proven reputation and image, management and working practices.
− Increase the likelihood that customers know about the products/services you sell and buy more.
− Significant savings in advertising costs and ongoing support.
− Higher success rate than startups
Franchising plays a crucial role in expanding a brand across a region, ensuring uniformity in sales approach, brand identity, and service quality When a business becomes a franchisee, it typically pays a one-time entry fee, followed by ongoing service fees that are generally linked to the franchisee's sales performance.
Highlands Coffee's available product lines
Highlands Coffee is set to implement a comprehensive international business strategy in the Netherlands from 2023 to 2025, focusing on expanding its market presence The brand aims to leverage the growing global appreciation for Vietnamese coffee, emphasizing its unique flavors and quality By integrating innovative marketing techniques and local partnerships, Highlands Coffee seeks to attract a diverse customer base, fostering a strong community connection This strategic plan not only highlights the brand's commitment to sustainability but also aims to enhance customer engagement through unique coffee experiences.
Espresso cups are bursting with flavor, thanks to a meticulous blend of premium Arabica and Robusta coffee The expertise of trained baristas enhances this experience, ensuring customers enjoy a unique and memorable coffee journey.
The new and sophisticated taste of ground coffee combined with the cool green tea flavor will create a unique flavor, enough to impress all classes of Dutch people.
Highlands Coffee is set to implement a comprehensive international business strategy in the Netherlands from 2023 to 2025 This strategy focuses on expanding brand presence and increasing market share within the Dutch coffee market Key initiatives will include enhancing product offerings, leveraging local partnerships, and utilizing targeted marketing campaigns to attract a diverse customer base Additionally, the company aims to prioritize sustainability and ethical sourcing to resonate with environmentally conscious consumers By executing this strategic plan, Highlands Coffee seeks to establish itself as a leading coffee brand in the Netherlands over the next three years.
The typical deliciousness of tea flavor is reproduced by Highlands Coffee in iced tea dishes With a diverse and rich flavor combination, tea is the ideal refreshment on hot days
Handcrafted in Higlands' kitchen, our traditional flavored cakes guarantee quality and food safety These light cakes pair perfectly with drinks, making them an ideal choice for a delightful bar experience.
Highlands Coffee is poised to implement a comprehensive international business strategy in the Netherlands from 2023 to 2025 This strategy focuses on expanding brand presence, enhancing customer engagement, and optimizing supply chain operations By leveraging local partnerships and adapting to market trends, Highlands Coffee aims to establish a strong foothold in the Dutch coffee market Key initiatives will include targeted marketing campaigns, menu localization, and sustainable sourcing practices Overall, this strategic plan is designed to drive growth and increase market share within the competitive landscape of the Netherlands.
Product pricing of Highland Coffe in the Netherlands
Highlands Coffee is always aiming for long-term profit after entering the market, the valuation method is calculated as follows:
Selling price = Import price of raw materials + Other business expenses + Profit
Normally, businesses will apply an average profit of about 10-20%, to bring stable profits and growth for the company.
The company prioritizes offering competitive prices while ensuring that its products remain of high quality, safe, and hygienic, ultimately enhancing customer satisfaction and loyalty.
Highlands Coffee is set to implement a comprehensive international business strategy in the Netherlands from 2023 to 2025 This strategy focuses on expanding brand presence, enhancing customer engagement, and adapting to local market preferences Key initiatives will include establishing new outlets, leveraging digital marketing, and fostering partnerships with local suppliers By prioritizing sustainability and quality, Highlands Coffee aims to resonate with Dutch consumers while driving growth and profitability in the competitive coffee market.
Figure 13: Price list of some cafes in the Netherlands
As we can see in the picture, Dutch cafes all sell products in the range of 4 € - 20 € (about 100,000
VND - 500,000 VND) which is almost similar to foreign competitors like STARBUCKS with prices around 5 € - 10 € (about 125,000 VND -
250,000 VND) or other domestic coffee brands.
From there, we can determine that the average price of Highlands Coffee will be around 4 € - 8 €
(about 100,000 VND - 200,000 VND) The price of Highlands Coffee's cakes will also be around 3
With such an average price, it will be very suitable for all age groups of customers That will become a strong point for the long-term profitability of the business
Highlands Coffee is set to implement a comprehensive international business strategy in the Netherlands from 2023 to 2025 This strategy aims to enhance brand presence and expand market share in the European coffee industry Key initiatives will focus on localizing product offerings, leveraging digital marketing, and establishing strategic partnerships with local distributors By prioritizing sustainability and quality, Highlands Coffee seeks to attract a diverse customer base while fostering a strong community connection The plan also includes targeted marketing campaigns to raise brand awareness and drive customer engagement throughout the region.
Distribution method of Highlands Coffee in the Netherlands
Highlands Coffee plans to establish its presence in the Dutch market by selecting locations near businesses, offices, and schools that offer mid-range rental prices, ensuring easy access to its target customers The primary audience includes students, professionals, and individuals with moderate to high incomes, with a focus on those aged 18 to 50 years.
After building a brand, Highlands Coffee will proceed to expand its network in the centers of major cities such as Amsterdam , Rotterdam , The Hague,
The Highlands Coffee brand will become a high-quality brand in the Dutch market.
Targeting young individuals, business professionals, and office workers with moderate to good incomes, the company aims to offer products at lower prices than existing competitors in the Dutch market, while maintaining quality that is comparable to premium coffee.
Highlands Coffee plans to enter the Netherlands market by establishing two key distribution channels: direct and indirect The direct distribution channel will enable the company to sell products straight to customers through partnerships with major retailers such as Ahold, Schuitema, and Sperwer Holding.
Laurus, etc.) Indirect distribution channel, Highlands Coffee will establish with intermediary partners such as coffee agents in the Netherlands, coffee shops to conduct trade in goods
Highlands Coffee aims to enhance brand awareness by encouraging customers to use their coffee while retaining the company's distinctive packaging and logo This strategy seeks to elevate the product's prestige and familiarize the Dutch market with the high-quality coffee offerings from the highlands of Vietnam.
Promotional activities may apply
Highlands has effectively utilized online channels to promote promotions and vouchers, capturing the attention of consumers, particularly office workers who prefer staying in These enticing offers not only attract a younger demographic but also enhance brand visibility, establishing a strong connection with a wider audience.
The brand offers enticing promotions, including special days for discounted coffee prices, such as "buy 2, get 1 free" and 20% off when purchasing two filter coffees Additionally, they host unique events like free coffee giveaways and special upsizing fees for women on March 8th Customers can also enjoy afternoon tea and cake combos, and by collecting three stamps, they can earn a complimentary iced milk filter.
Highlands Coffee is set to implement an international business strategy from 2023 to 2025, focusing on expanding its presence in the Netherlands This three-year plan aims to enhance brand recognition and market share in the competitive coffee industry By leveraging local partnerships and adapting to consumer preferences, Highlands Coffee will seek to establish a strong foothold in the Dutch market The strategy includes targeted marketing campaigns and product offerings that resonate with local tastes, ensuring sustainable growth and profitability in this new territory.
Estimate the budget needed for the plan
In a market economy, businesses must possess financial resources to thrive, as economic potential is crucial for company growth Adequate financial resources ensure stability in production and business operations, enabling companies to navigate challenges effectively.
Table 2: Budget table for a cafe within 1 year
CONCLUSION
Dutch consumers prioritize health and increasingly favor black coffee for its health benefits, leading to a decline in instant coffee consumption However, decaffeinated coffee remains unpopular in the Netherlands, despite its preference among some Dutch coffee drinkers.
Our team has developed strategic management measures to enhance Highlands Coffee's brand presence both nationally and internationally By promoting Vietnam's cultural identity on a global scale, we aim to solidify its position in the international market.
2 Living expenses (electricity, water, repair, ) 1 month 2,000 euros 24,000 euros
TOTAL COST OF THE STORE/YEAR 357,000 €
Highlands Coffee is set to implement an international business strategy in the Netherlands from 2023 to 2025 This strategy focuses on expanding brand presence and increasing market share in the Dutch coffee industry Key initiatives will include enhancing product offerings, leveraging local partnerships, and utilizing digital marketing to engage consumers The goal is to establish Highlands Coffee as a leading player in the Netherlands while maintaining its commitment to quality and sustainability Through these efforts, the company aims to create a strong foothold in the European market.
Opportunities and challenges when exporting coffee to Netherlands
− Korean coffee market depends entirely on imports
− Vietnam is known as an exporter of high quality coffee
− Low import tax and excise tax exemption
− Consumers also love bold flavors, cafes in Korea boast that their coffees have the strongest flavors in the world.
− Taste and price are two points Korean consumers are very interested in when choosing to buy coffee.
− Korean consumers are also quite loyal to their chosen brand.
− The coffee market is quite competitive.
Vietnamese coffee brands, especially Highlands Coffee, have the potential to captivate discerning consumers worldwide by focusing on quality, implementing a clear international marketing strategy, and adopting the right mindset.
REFERENCES
1 An, H (2020) Highlands Coffee, Starbucks, Phuc Long and The Coffee House - how is the
2 Dung, TM (2021) Highlands Coffee's target market Taken from https://tranminhdung.vn/thi- truong-muc-tieu-cua-Highlands Coffee-coffee/
3 https://doanhnghieptiepthi.vn/thi-truong-ca-phe-quy-3-2020-san-luong-ca-phetoan-cau-giam- nhe-trong-nien-vu-2019-2020-161201023154536962.htm
Highlands Coffee is set to implement a comprehensive international business strategy in the Netherlands from 2023 to 2025 This strategy focuses on expanding brand presence and increasing market share in the Dutch coffee sector Key initiatives will include enhancing product offerings, leveraging digital marketing, and establishing strong partnerships with local distributors By prioritizing customer engagement and sustainability, Highlands Coffee aims to differentiate itself in a competitive market Overall, the strategic plan emphasizes growth, innovation, and adaptability to local consumer preferences.