EXECUTIVE SUMMARY
Nescafe, a renowned coffee brand by Nestle, presents significant market development opportunities in today's fast-paced world As people face constant distractions, pressure, and stress, a cup of Nescafe can invigorate and energize them for a productive workday ahead.
Nescafe is set to launch a new instant coffee line, chocolate bubble coffee, which uniquely blends the bitterness of coffee with the sweetness of chocolate and a chewy texture This innovative product aims to compete effectively in the instant coffee market by offering a distinct taste and convenience Targeting specific consumer segments, Nescafe seeks to capitalize on the rising demand for quality yet affordable food options The primary marketing goal is to boost acceptance of chocolate bubble coffee by 25%, while financial objectives include a 5% increase in first-year sales and reduced advertising costs, all while maintaining a strong customer base.
INTRODUCTION
MISSION STATEMENT
Nescafe introduces an innovative coffee product that combines the rich flavor of coffee with a unique chocolate taste, enhanced by a delightful bubble experience This new offering is designed to inspire consumers daily, providing a delicious and enjoyable beverage for everyone.
Strategic objectives for the first year
- Wide coverage at most supermarkets and convenience stores nationwide
- Increase the first 25% awareness of the target customer's product within 1 year from 1/2022 to 12/2022, along with that will increase the awareness level by 2% every month.
Nescafe Chocolate Bubble Coffee is synonymous with innovative products that embody a vibrant and youthful image, leaving a lasting impression on customers who choose to indulge in it.
Nestlé Vietnam is launching a new product, Nescafé's Chocolate Bubble, as part of its strategic marketing planning This innovative beverage aims to capture the attention of consumers by combining the rich flavors of coffee and chocolate in a unique bubble format The marketing campaign will focus on highlighting the product's distinct taste and appealing presentation, targeting young adults and coffee enthusiasts Nestlé Vietnam's approach will include digital marketing strategies and engaging social media content to effectively reach and resonate with the target audience.
Financial Objectives
- 5% increase revenue in the first year for Nescafe
- Reduce advertising costs but still retain potential customers
SITUATION ANALYSIS
MARKET SUMMARY
In Vietnam, coffee consumption saw a notable rise from 28.8 million packages in 2018 to 30.4 million packages in 2019, according to Statista However, in 2020, the consumption decreased to 29 million packages, reflecting a decline of 1.4 million packages due to the impact of COVID-19.
To attract a diverse range of customers in Vietnam, coffee manufacturers are launching new flavors and focusing on affordability and convenience, such as offering coffee cans in convenience stores This strategy is expected to increase the number of new coffee drinkers in the future.
The coffee market is projected to experience significant growth from 2021 to 2025, with an anticipated growth rate of 8.3% Starting from a market size of 29 million in 2020, it is expected to reach 30.8 million in 2021, 31 million in 2022, and 34 million by 2023.
In 2019, Nescafe led the instant coffee market with a 46.5% share, leveraging modern technology, large-scale production, and 75 years of industry experience The market is primarily dominated by three brands: Nescafe, Trung Nguyen, and Vinacafe, which together hold a significant 75% market share Experts suggest that the competition for market share among Trung Nguyen, Nescafe, and Vinacafe is ongoing in the Vietnamese instant coffee sector.
Nestlé Vietnam is launching a new product, Nescafé Chocolate Bubble, as part of its strategic marketing planning This innovative beverage aims to capture the attention of consumers by combining the rich flavors of chocolate with the beloved taste of coffee The marketing strategy will focus on appealing to young adults and coffee enthusiasts, highlighting the unique experience of enjoying a bubble-infused drink By leveraging digital marketing channels and engaging social media campaigns, Nestlé Vietnam seeks to establish a strong brand presence and drive product awareness in a competitive market.
MACRO ENVIRONMENT
Young people today have many different interests and habits than previous generations Especially they have a preference to buy and try many trending products.
Socola coffee with bubbles has become a popular choice at milk tea shops, offering a balanced flavor that is neither too bitter nor too sweet, providing a unique twist on traditional black coffee In response to this trend, Nescafe is developing a convenient soluble product that captures the delicious essence of socola coffee found in stores.
Vietnam has long been known for its stable political and security climate, which has attracted many global investors, including Nestlé
Nestlé Vietnam is launching a new product, NESCAFÉ Chocolate Bubble, as part of its innovative marketing strategy The company aims to capture the attention of consumers by blending the rich flavors of chocolate with the beloved taste of NESCAFÉ coffee This marketing plan focuses on targeting young adults and coffee enthusiasts, leveraging social media campaigns and influencer partnerships to create buzz around the product By emphasizing the unique taste experience and convenience of NESCAFÉ Chocolate Bubble, Nestlé Vietnam seeks to establish a strong presence in the competitive beverage market.
Our state's rights and brands play a crucial role in preserving coffee production, supporting fair pricing, and facilitating exports, while also offering various tax and land rental incentives The establishment of the Vietnam Coffee and Cocoa Association (VICOFA) aims to enhance coffee development and enforce state policies, preventing monopolistic practices and resolving market disputes Consequently, the rights and interests of Vietnamese coffee in the market are effectively safeguarded.
Figure 2: Vietnam Coffee - Cocoa Association
Vietnam is experiencing significant growth, driven by numerous opportunities for cooperation and integration Over the past 30 years, the Vietnamese economy has shown remarkable and consistent progress, with the economic climate playing a crucial role in market development Notably, GDP per capita surged 2.7 times from 2002 to 2020, highlighting the country's economic advancement.
Vietnam has made significant progress in reducing poverty, with over 45 million people lifted out of poverty, dropping the rate from 32% in 2011 to under 2% today Despite the severe impact of the COVID-19 pandemic on its deeply integrated economy, Vietnam has shown impressive resilience However, the emergence of the Delta variant poses new challenges, leading to a GDP growth forecast of only 2-2.5 percent for 2021.
Nestlé Vietnam is set to launch a new product, NESCAFÉ Chocolate Bubble, as part of its innovative marketing strategy This product aims to attract a diverse consumer base by combining the rich flavors of coffee and chocolate in a unique bubble format The marketing plan focuses on engaging customers through targeted campaigns and promotions that highlight the product's distinct taste and convenience By leveraging social media and influencer partnerships, Nestlé Vietnam seeks to create buzz and drive brand awareness for NESCAFÉ Chocolate Bubble in the competitive beverage market.
Nescafe, which belongs to the food and beverage business and has a significant impact on people's income, is still affected by the pandemic due to shifting customer’s consumption needs.
Coffee is an integral part of daily life in Vietnam, where it has fostered a unique coffee culture The Vietnamese take pride in exploring diverse coffee-making techniques, blending both local and Western flavors Nescafe, with its longstanding presence in the coffee industry, is renowned for its quality and holds a strong reputation among consumers.
Nescafe has a good chance of breaking into the Vietnamese beverage market, especially with the debut of Chocolate Bubble Coffee.
Nestlé Vietnam operates six state-of-the-art plants, adhering to both global quality standards and local environmental regulations The company has pledged to invest $132 million to enhance high-quality coffee production at its Tri An factory in Dong Nai province, aiming to position Vietnam as a key production hub for premium coffee in both domestic and international markets.
The latest technology will be used to process coffee to produce excellent, safe, and hygienic coffee on a production line with a capacity of 20,000 tons per year.
Nestlé Vietnam is launching a new product, Nescafé's Chocolate Bubble, as part of its strategic marketing plan This innovative beverage aims to capture the attention of consumers by combining the rich flavors of chocolate with the refreshing qualities of bubble drinks The marketing strategy focuses on engaging target audiences through various channels, emphasizing the unique taste experience and the brand's commitment to quality By leveraging market research and consumer insights, Nestlé Vietnam seeks to establish Nescafé's Chocolate Bubble as a leading choice in the competitive beverage market.
Figure 4: Inside the decaffeinated instant coffee production area in Dong Nai
Nestlé prioritizes environmental sustainability by actively implementing measures to protect its operations and consistently striving for continuous improvement to align with the criteria set by the School of Systems Management Environment.
Nestlé Vietnam is committed to minimizing its environmental impact by adhering to pollution regulations, utilizing advanced production technologies, and harnessing renewable energy sources Additionally, Nescafe plays a pivotal role as a co-founder of the Vietnam Packaging Recycling Organization and actively participates in the Ministry of Natural Resources and Environment's Alliance Against Plastic Umbrellas.
=> Nescafe not only offer high-quality coffee but also made Vietnam's environment green
Currently, Phindeli Coffee and Mac Coffee are the only brands offering instant chocolate coffee in the market, positioning Phindeli as a key competitor to Nescafe's Socola Bubble Coffee.
Socola instant coffee – Mac Coffee
Strenghts - Abundant supply of - A large corporation in
Nestlé Vietnam is launching a new product, Nescafé Chocolate Bubble, as part of its strategic marketing plan This innovative beverage aims to attract consumers with its unique flavor profile and engaging experience The marketing strategy focuses on targeting young adults and coffee enthusiasts, leveraging social media and influencer partnerships to create buzz By emphasizing quality and taste, Nestlé Vietnam seeks to establish Nescafé Chocolate Bubble as a must-try product in the competitive beverage market.
SWOT
Nescafe, a renowned coffee brand from Nestle, presents a significant market development opportunity in today's fast-paced world As busy lifestyles often lead to distractions, stress, and pressure, a comforting cup of coffee can invigorate individuals and help them kickstart their workday with renewed energy and enthusiasm.
Nescafe is set to launch a new instant coffee product line, chocolate bubble coffee, which uniquely blends the bitterness of coffee with the sweetness of chocolate and the chewiness of bubbles This innovative offering positions us to effectively compete in the instant coffee market by providing a distinctive taste and convenience We aim to target specific consumer segments, capitalizing on the rising demand for quality food that remains affordable Our primary marketing goal is to boost acceptance of chocolate bubble coffee by 25%, while our financial objectives include increasing first-year sales by 5% and reducing advertising costs without sacrificing our potential customer base.
Nescafe introduces an innovative coffee product that combines the rich flavor of coffee with a unique chocolate taste, enhanced by a delightful bubble texture This refreshing beverage is designed to inspire and elevate your daily experience, making every moment more enjoyable.
2 Strategic objectives for the first year:
- Wide coverage at most supermarkets and convenience stores nationwide
- Increase the first 25% awareness of the target customer's product within 1 year from 1/2022 to 12/2022, along with that will increase the awareness level by 2% every month.
Nescafe Chocolate Bubble Coffee is synonymous with innovative products that embody a dynamic and youthful image, leaving a lasting impression on customers' personalities.
Nestlé Vietnam is launching a new product, NESCAFÉ Chocolate Bubble, as part of its innovative marketing strategy The company aims to capture the attention of consumers with this unique beverage that combines the rich flavor of chocolate with the familiar taste of coffee By focusing on market research and consumer preferences, Nestlé Vietnam plans to effectively position NESCAFÉ Chocolate Bubble in the competitive beverage market The marketing campaign will emphasize the product's unique selling points, appealing to both chocolate lovers and coffee enthusiasts.
- 5% increase revenue in the first year for Nescafe
- Reduce advertising costs but still retain potential customers
In Vietnam, coffee consumption saw significant growth, rising from 28.8 million packages in 2018 to 30.4 million packages in 2019, according to Statista However, in 2020, the consumption dropped to 29 million packages, reflecting a decrease of 1.4 million packages due to the impact of Covid-19.
To cater to the diverse consumer base in Vietnam, coffee manufacturers are launching new flavors and prioritizing affordability and convenience, such as offering coffee cans in convenience stores This strategy is expected to attract a growing population of new coffee drinkers in the future.
The coffee market is projected to experience significant growth from 2021 to 2025, with an anticipated annual growth rate of 8.3% Starting from a market size of 29 million in 2020, it is expected to reach 30.8 million in 2021, 31 million in 2022, and 34 million by 2023.
In 2019, Nescafe emerged as the leader in instant coffee consumption, commanding 46.5% of the market, bolstered by advanced technology, large-scale production, and 75 years of industry experience The Vietnamese instant coffee market is primarily dominated by three major brands: Nescafe, Trung Nguyen, and Vinacafe, which together hold a substantial 75% market share Experts suggest that the competition for market share among Trung Nguyen, Nescafe, and Vinacafe is an ongoing battle in Vietnam's instant coffee sector.
Nestlé Vietnam is launching a new product, NESCAFÉ Chocolate Bubble, as part of its strategic marketing planning This innovative beverage combines the rich flavors of chocolate with the beloved NESCAFÉ coffee experience, targeting a diverse consumer base The marketing strategy focuses on highlighting the unique taste and convenience of the product, aiming to capture the attention of young adults and coffee enthusiasts By leveraging social media and influencer partnerships, Nestlé Vietnam seeks to create buzz and drive engagement around the NESCAFÉ Chocolate Bubble, positioning it as a must-try drink in the competitive beverage market.
Figure 1: Market of instant coffe in Vietnam
Young people today have many different interests and habits than previous generations Especially they have a preference to buy and try many trending products.
Socola coffee with bubbles has become a popular choice at milk tea shops, offering a unique flavor that balances bitterness and sweetness Recognizing this trend, Nescafe is developing a convenient soluble product that aims to replicate the delicious taste of store-bought socola coffee.
Vietnam has long been known for its stable political and security climate, which has attracted many global investors, including Nestlé
Nestlé Vietnam is launching a new product, NESCAFÉ Chocolate Bubble, as part of its strategic marketing planning This innovative beverage aims to capture the growing demand for unique and flavorful coffee experiences in the Vietnamese market The marketing strategy will focus on highlighting the product's distinctive taste and appealing packaging to attract a diverse customer base By leveraging digital marketing and social media platforms, Nestlé Vietnam intends to engage consumers effectively and boost brand awareness for NESCAFÉ Chocolate Bubble.
Our state's rights and branding initiatives play a crucial role in preserving coffee quality, supporting fair product pricing, and enhancing export opportunities The government established the Vietnam Coffee and Cocoa Association (VICOFA) to promote coffee development while implementing policies that prevent monopolistic practices and resolve market disputes These measures ensure that the rights and interests of Vietnamese coffee producers are effectively safeguarded in the competitive market.
Figure 2: Vietnam Coffee - Cocoa Association
Vietnam is experiencing significant growth, driven by new opportunities for cooperation and integration Over the past 30 years, the Vietnamese economy has shown remarkable and consistent growth, with the economic climate playing a crucial role in market development Notably, GDP per capita surged 2.7 times from 2002 to 2020, highlighting the country's economic progress.
Vietnam's economy has shown remarkable resilience despite the heavy damage inflicted by the COVID-19 pandemic, with the poverty rate plummeting from 32% in 2011 to under 2% today, lifting over 45 million individuals out of poverty However, the emergence of the Delta variant poses significant challenges, leading to a revised GDP growth forecast of only 2-2.5 percent for 2021.
MARKETING MIX STRATEGIES
Nescafe, a renowned coffee brand by Nestle, presents a remarkable market opportunity in today's fast-paced world As people navigate busy work schedules filled with distractions, stress, and pressure, a cup of Nescafe can provide the perfect boost to kickstart a productive and exciting workday.
Nescafe is set to launch a new instant coffee product line, chocolate bubble coffee, which uniquely blends the bitterness of coffee with the sweetness of chocolate and a chewy texture This innovative offering positions us to effectively compete in the instant coffee market by providing a distinctive taste and convenience We aim to target specific consumer segments, capitalizing on the rising demand for quality yet affordable food experiences Our primary marketing goal is to boost acceptance of chocolate bubble coffee by 25%, while our financial objectives include achieving a 5% increase in first-year sales and reducing advertising costs, all while retaining our potential customer base.
Nescafe introduces an innovative coffee product that blends the rich flavors of coffee with a unique chocolate taste, complemented by a delightful bubble texture This refreshing beverage is designed to inspire and enhance your daily experience, making every moment more enjoyable.
2 Strategic objectives for the first year:
- Wide coverage at most supermarkets and convenience stores nationwide
- Increase the first 25% awareness of the target customer's product within 1 year from 1/2022 to 12/2022, along with that will increase the awareness level by 2% every month.
Nescafe Chocolate Bubble Coffee is synonymous with innovative products that embody a vibrant and youthful image, leaving a lasting impression on customers and reflecting their unique personalities.
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Product
Levels of products will be identified to satisfy customers’ needs
- Increase focus and alertness at work
- Professional attitude Professionals who have a "gout" to enjoy coffee
- Bringing people together who have similar interests and passions
Mission : "In the simplest way, bring a cup of chocolate bubbles coffee with the most real sensation."
Nestlé Vietnam is launching a new product, NESCAFÉ Chocolate Bubble, as part of its innovative marketing strategy This product aims to capture the attention of consumers by combining the rich flavors of chocolate with the beloved taste of coffee The marketing plan focuses on engaging the target audience through various channels, emphasizing the unique selling points of NESCAFÉ Chocolate Bubble By leveraging social media and promotional campaigns, Nestlé Vietnam seeks to create a buzz around this exciting new offering, enhancing brand awareness and driving sales.
Chocolate pearl coffee features 100% premium Vietnamese Robusta coffee beans, delivering a rich blend of bitterness from coffee and cocoa, complemented by the sweetness of milk and a delightful texture from the bubbles.
The danger of being substituted will be minimized because this is the first instant chocolate bubbles coffee product in Vietnam and the globe market
Nescafe's unique distinction stems from its proprietary Micronized Roasted Coffee (MRC) technology, which utilizes advanced methods to create a fine coating of roasted coffee.
Preparation is made easier with the help of suitable packing.
Style and design: a rich brown hue reminiscent of coffee beans and chocolate, with black bubbles embellishments
Nestlé Vietnam is launching a new product, NESCAFÉ Chocolate Bubble, as part of its strategic marketing plan This innovative beverage aims to cater to the growing demand for unique and flavorful coffee experiences The marketing strategy focuses on engaging the target audience through creative campaigns and promotions that highlight the product's unique features By leveraging digital marketing channels, Nestlé Vietnam seeks to enhance brand visibility and attract a younger demographic The introduction of NESCAFÉ Chocolate Bubble is expected to strengthen Nestlé's position in the competitive beverage market in Vietnam.
Figure 6: Design of Egg Coffee product
Brand mane : NesCafé is a well-known coffee brand that holds the world's top spot in instant coffee
Slogan: Nescafe is the top unit, providing "global coffee flavor" to Vietnamese people with the worldwide tagline "A New Day Begins."
Chocolate Bubbles Coffee, Nescafe's newest product, debuted with the phrase
"Chocolate Bubble Coffee – Double your sweetness" offers customers a distinctive flavor together with alertness, attention, and concentration attention, stress reduction, and increased multi-productivity at work
The Chocolate Bubbles Coffee is attractively packaged in a set of six 12g boxes, showcasing vibrant images of its pure ingredients, including rich chocolate and authentic Vietnamese coffee The design evokes the essence of Vietnam, featuring a picturesque coffee grove from the country's highlands, while the prominent Nescafe logo is displayed at the upper center of the box, enhancing its visual appeal.
Labeling: ingredients, directions for use, expiration date, and manufacturing location are all included on the label.
The chemical composition of the product
Nestlé Vietnam is launching a new product, NESCAFÉ Chocolate Bubble, as part of its innovative marketing strategy This product aims to attract consumers by combining the rich flavors of chocolate with the refreshing qualities of bubble drinks The marketing plan focuses on engaging the target audience through effective promotional campaigns and leveraging social media platforms By emphasizing the unique taste experience and convenience, Nestlé Vietnam seeks to establish NESCAFÉ Chocolate Bubble as a must-try beverage in the competitive market.
Table 5: Chemical composition of Chocolate Bubble coffee
Life: 18 months from the date of production Use immediately after opening the package
Nescafe offers multi-channel support for customers with inquiries about products, health, or company-related matters, ensuring flexibility for those with busy schedules Customers can reach Nescafe through various communication platforms, including email, phone, and social media channels like their official website, Facebook, Gmail, and Twitter The dedicated Nescafe team guarantees a response within one hour, enhancing customer satisfaction and engagement.
Nestlé Vietnam is launching a new product, Nescafé's Chocolate Bubble, which aims to capture the attention of coffee and chocolate lovers alike The marketing plan for this innovative beverage focuses on engaging consumers through targeted campaigns and strategic promotions By leveraging social media and influencer partnerships, Nestlé Vietnam seeks to create buzz and excitement around the product Additionally, market research will play a crucial role in understanding consumer preferences and optimizing the product's positioning in the competitive landscape This comprehensive marketing strategy is designed to ensure a successful introduction of Nescafé's Chocolate Bubble to the Vietnamese market.
Figure 7: Fanpage of Nescafe (source: facebook.com)
Figure 8: Website of Nescafe (source: nescafe.com.vn)
Nescafe proposed the pricing objective of building a leading image in terms of quality and average price.
Nestlé Vietnam is launching a new product, Nescafé's Chocolate Bubble, as part of its strategic marketing planning This innovative beverage aims to attract a diverse consumer base by blending the rich flavors of chocolate with the beloved taste of coffee The marketing strategy will focus on engaging consumers through targeted advertising and promotional campaigns, highlighting the unique qualities of the product By leveraging market research and consumer insights, Nestlé Vietnam seeks to establish a strong presence in the competitive beverage market, ensuring the successful introduction of Nescafé's Chocolate Bubble.
Name of cost type New product rate
- Price of a box Chocolate Bubble Coffee: 49.000VNĐ / 10 packs / 20 gram
- Selling price difference: From 1.000VNĐ to 5.000VNĐ
6.2.2 Pricing method: based on production costs
Expected price = Cost per unit + Expected profit
Cost of production 1 unit = Variable costs + Total fixed costs Fixed/Total Units of Product
Expected profit is the portion of pre-taxable income
Nestlé Vietnam is launching a new product, NESCAFÉ Chocolate Bubble, as part of its strategic marketing planning This innovative beverage aims to capture the attention of consumers by combining the rich flavors of chocolate with the beloved taste of coffee The marketing strategy will focus on engaging the target audience through various channels, promoting the unique attributes of the product, and leveraging brand loyalty By emphasizing quality and taste, Nestlé Vietnam seeks to establish NESCAFÉ Chocolate Bubble as a must-try option in the competitive beverage market.
It's simple and easy to calculate Wholesalers and retailers often use this pricing model.
This approach ensures fairness for both the seller and the buyer, allowing the seller to earn a reasonable profit Buyers are more likely to accept the pricing when they understand the seller's fair profit margin Additionally, this method maintains a stable selling price, avoiding erratic fluctuations.
New product pricing strategy: Penetration strategy
Nescafe employs a market penetration pricing strategy, setting prices below the average of competing coffee brands to attract customers and maximize production capacity while minimizing costs This approach aims to encourage consumers to try their new egg coffee products, ultimately seeking to build market share and retain customers even when prices return to normal Targeting price-sensitive consumers, Nescafe leverages its strong production capabilities, accepting lower profit margins per unit in exchange for higher overall sales volume.
Psychological pricing is a strategy that targets the emotional aspects of consumer behavior rather than logical reasoning For instance, when Nescafe prices its egg coffee box at 49,000 VND instead of 50,000 VND, it attracts more customers despite the minimal difference in price This phenomenon occurs because consumers often base their purchasing decisions on the initial digits of a price Ultimately, the aim of psychological pricing is to enhance demand by creating a perception of greater value for the consumer.
Nescafe 3in1 Nescafe Café Viet Nescafe Chocolate
Nestlé Vietnam is launching a new product, NESCAFÉ Chocolate Bubble, as part of its innovative marketing strategy This product aims to capture the attention of consumers by combining the rich flavors of chocolate with the beloved taste of coffee The marketing plan focuses on engaging the target audience through various channels, emphasizing the unique experience that NESCAFÉ Chocolate Bubble offers By leveraging social media and influencer partnerships, Nestlé Vietnam intends to create buzz and drive product awareness in the competitive beverage market.
Table 7: Product’s price of Nescafe
Firstly, we will employ mass distribution channels for chocolate bubbles coffee, focusing on contemporary and traditional channels, because it is an FMCG product.
We will deal with channel partners in the first year until we have covered all Vietnamese markets.
The 2020 Vietnam retail industry trends report highlights the growing popularity of convenience stores, supermarkets, and small retail models due to their diverse product offerings and high-quality options These stores are increasingly favored by consumers for their integration of modern payment methods, including QR codes and card transactions, which appeal particularly to younger shoppers.
CONTROLS
- 5% increase revenue in the first year for Nescafe
- Reduce advertising costs but still retain potential customers
In Vietnam, coffee consumption saw significant growth, rising from 28.8 million packages in 2018 to 30.4 million packages in 2019, according to Statista However, in 2020, consumption decreased to 29 million packages, reflecting a decline of 1.4 million packages due to the impact of COVID-19.
To cater to the diverse consumer base in Vietnam, coffee manufacturers are launching new flavors and focusing on affordability and convenience, such as offering coffee cans in convenience stores This strategy is expected to attract a growing population of new coffee drinkers in the future.
The coffee market is expected to experience significant growth from 2021 to 2025, with a projected annual growth rate of 8.3% Starting from a market size of 29 million in 2020, it is anticipated to reach 30.8 million in 2021, 31 million in 2022, and 34 million by 2023.
In 2019, Nescafe emerged as the leading brand in Vietnam's instant coffee market, capturing 46.5% of the market share, bolstered by advanced technology, large-scale production, and 75 years of industry experience The market is dominated by three key players: Nescafe, Trung Nguyen, and Vinacafe, which together hold a substantial 75% share Experts suggest that the competition for market dominance among Trung Nguyen, Nescafe, and Vinacafe is an ongoing battle in Vietnam's instant coffee sector.
vii
Nestlé Vietnam is launching a new product, NESCAFÉ Chocolate Bubble, as part of its innovative marketing strategy This new offering combines the rich flavors of coffee and chocolate, catering to the evolving tastes of consumers The marketing plan focuses on engaging target audiences through digital campaigns and in-store promotions, aiming to create a buzz around the product By leveraging social media and influencer partnerships, Nestlé Vietnam seeks to enhance brand visibility and drive consumer interest in NESCAFÉ Chocolate Bubble.
Figure 1: Market of instant coffe in Vietnam
Young people today have many different interests and habits than previous generations Especially they have a preference to buy and try many trending products.
Socola coffee with bubbles has become a trendy beverage at milk tea shops, offering a perfect balance of flavors that is neither too bitter nor too sweet Recognizing this growing popularity, Nescafe is set to launch a convenient soluble product that captures the delicious essence of socola coffee found in stores.
Vietnam has long been known for its stable political and security climate, which has attracted many global investors, including Nestlé.
viii
Nestlé Vietnam is set to launch its innovative product, NESCAFÉ Chocolate Bubble, as part of a comprehensive marketing strategy This new offering aims to attract consumers with its unique flavor profile and engaging experience The marketing plan focuses on targeting young adults and coffee enthusiasts, utilizing social media and influencer partnerships to generate buzz By emphasizing the product's distinctiveness and quality, Nestlé Vietnam seeks to establish NESCAFÉ Chocolate Bubble as a must-try beverage in the competitive market.
Our state's rights and brands play a crucial role in preserving coffee quality, supporting fair pricing, and enhancing exports The government established the Vietnam Coffee and Cocoa Association (VICOFA) to oversee the development of the coffee sector and implement policies that prevent monopolies and market disputes, ensuring the protection of Vietnamese coffee's rights and interests Additionally, various tax and land rental incentives are provided to foster growth in the industry.
Figure 2: Vietnam Coffee - Cocoa Association
Vietnam is experiencing significant growth and new opportunities for collaboration and integration Over the past 30 years, the Vietnamese economy has shown remarkable and consistent growth, with a substantial impact from the prevailing economic climate Notably, GDP per capita surged 2.7 times from 2002 to 2020, highlighting the country's economic advancement.
Vietnam has seen a significant reduction in poverty, with the rate dropping from 32% in 2011 to under 2% now, lifting over 45 million people out of poverty Despite the severe impact of the COVID-19 pandemic on its deeply integrated economy, Vietnam has shown remarkable resilience However, the emergence of the Delta variant poses new challenges, leading to GDP growth projections of only 2-2.5% for 2021.
ix
Nestlé Vietnam is launching a new product, NESCAFÉ Chocolate Bubble, as part of its strategic marketing planning This innovative beverage combines the rich flavors of chocolate with the beloved taste of coffee, targeting a diverse consumer base The marketing strategy will focus on engaging potential customers through digital platforms and social media campaigns, emphasizing the unique experience of enjoying NESCAFÉ Chocolate Bubble By leveraging market research and consumer insights, Nestlé aims to position this product effectively in the competitive beverage market, ensuring brand visibility and customer loyalty.
Nescafe, which belongs to the food and beverage business and has a significant impact on people's income, is still affected by the pandemic due to shifting customer’s consumption needs.
Coffee is an integral part of daily life in Vietnam, deeply embedded in the country's culture The Vietnamese have developed a unique coffee culture, actively sharing and exploring various brewing techniques to enjoy both local and Western flavors Nescafe, with its long-standing history in the coffee industry, is renowned for its quality and has established a strong reputation among consumers.
Nescafe has a good chance of breaking into the Vietnamese beverage market, especially with the debut of Chocolate Bubble Coffee.
Nestlé Vietnam operates six state-of-the-art plants that meet stringent quality standards and adhere to local environmental regulations The company is investing US$132 million to enhance high-quality coffee production at its Tri An factory in Dong Nai province, aiming to position Vietnam as a key production hub for premium coffee for both domestic and international markets.
The latest technology will be used to process coffee to produce excellent, safe, and hygienic coffee on a production line with a capacity of 20,000 tons per year.
Nestlé Vietnam is launching a new product, Nescafé Chocolate Bubble, as part of its strategic marketing planning This innovative beverage aims to combine the rich flavors of chocolate and coffee, appealing to a diverse consumer base The marketing strategy focuses on engaging younger audiences through digital platforms and vibrant advertising campaigns By emphasizing quality and unique taste, Nestlé Vietnam seeks to position Nescafé Chocolate Bubble as a must-try drink in the competitive beverage market.
Figure 4: Inside the decaffeinated instant coffee production area in Dong Nai
Nestlé prioritizes environmental sustainability by actively implementing practices that safeguard its operations The company is dedicated to continuous improvement, ensuring compliance with the standards set by the School of Systems Management Environment.
Nestlé servers in Vietnam adhere to environmental pollution regulations, utilizing advanced technology in production and operations while relying on renewable energy sources Additionally, Nescafe plays a pivotal role as a co-founder of the Vietnam Packaging Recycling Organization and actively participates in the Ministry of Natural Resources and Environment's Alliance Against Plastic Umbrellas, demonstrating its commitment to sustainability.
=> Nescafe not only offer high-quality coffee but also made Vietnam's environment green
Currently, Phindeli Coffee and Mac Coffee are the only brands offering instant chocolate coffee in the market, positioning Phindeli as a significant competitor to Nescafe's Socola Bubble Coffee.
Socola instant coffee – Mac Coffee
Strenghts - Abundant supply of - A large corporation in
Nestlé Vietnam is launching a new product, NESCAFÉ Chocolate Bubble, as part of its strategic marketing planning This innovative beverage combines the rich flavors of coffee and chocolate, targeting consumers seeking unique taste experiences The marketing strategy focuses on appealing to the growing demand for creative and indulgent drink options in the Vietnamese market Through effective branding and promotional campaigns, Nestlé aims to position NESCAFÉ Chocolate Bubble as a must-try product for coffee enthusiasts and casual drinkers alike.
- Having a good reputation in the US, creating an advantage to impress customers.
- Top quality coffee the world
- Technology and capital are strongly supported
- There is no place in the hearts of customers because the price is a bit expensive
- Not much experience in doing business in Vietnam market
- The consumption habits of customers are becoming more and more modern and demanding.
- Many strong competitors in the market
Besides, there is competition from famous coffee shop chains such as Phuc Long, Starbuck, The coffe house.
S T R E N G - Vinacafe is the most chosen by
- Trung Nguyen's instant coffee products are ranked first in t f di it
WE A K N - The product line is not diverse
- The packaging is not eye-
- The constant change of signs, colors, packaging, and designs k it i ibl f t
Table 2: Nescafe's competitors in terms of brand
Competitors in the same industry: all manufacturers of instant beverage products such as Milo, Dutch Lady instant milk powder, Cozy….
The beverage market is highly competitive, featuring a diverse range of products including LaVie, C2, Sting, and Red Bull, along with various caffeinated options such as green tea, black tea, espresso, cappuccino, and macchiato.
Nestlé Vietnam has launched a new product called NESCAFÉ Chocolate Bubble, showcasing its innovative marketing strategy This product aims to capture the attention of young consumers by blending the rich flavors of chocolate and coffee The marketing plan emphasizes engaging promotional campaigns and social media outreach to create buzz and drive sales By leveraging consumer insights and market trends, Nestlé Vietnam seeks to establish NESCAFÉ Chocolate Bubble as a go-to beverage for chocolate and coffee lovers alike.
As a brand of Nestle, it also has strong financial backing and available resources.
Highly invested in advertising and marketing
Diverse product portfolio This gives them a large variety of products to suit the different tastes of their customers.
Having a nationwide distribution channel system
Abundant coffee sources with reputable suppliers - quality and available in the country
Striving for a green industry (using recycled materials and choosing materials from renewable sources whenever possible)
Experience in the coffee industry
Products have so many types that it is difficult for first-time consumers to choose.
Nescafe is a brand originating from abroad, so it is not possible to deeply understand the coffee taste of Vietnamese people.
Marketing efforts have not yielded high results.
There is no experience in combining coffee with socola and bubble.
Cooperation: It can link up with various companies, educational institutes, and other public enterprises to gain market share and drive profits.
Consumers who are more concerned about their health tend to stay away from beverages with caffeine content.
In fact, recently, the area of aging
Nestlé Vietnam is launching a new product, Nescafé's Chocolate Bubble, as part of its innovative marketing strategy This product aims to attract a diverse consumer base by combining the beloved flavors of chocolate and coffee The marketing plan focuses on engaging potential customers through targeted campaigns and promotions, highlighting the unique taste experience offered by Nescafé's Chocolate Bubble By leveraging social media and digital marketing, Nestlé Vietnam seeks to create buzz and drive sales for this exciting new addition to their product line.
As society becomes more modern and the pace of life accelerates, instant coffee and canned coffee have gained popularity for their convenience Consumers are increasingly open to unique and innovative beverages, such as fresh instant socola bubble coffee, which cater to their busy lifestyles.
The market growth rate and the growing demand for coffee create profitable opportunities for Nestle to market a more ready-to-drink coffee market.
Vietnam is a potential market and Vietnam joins the WTO to ensure product quality
The instant coffee market is saturated, lack difference in taste
Nescafe has introduced new products to strengthen its competitive edge in the coffee market In the Central Highlands provinces, coffee yields have plummeted by as much as 50%, adversely impacting both the output and quality of coffee beans available for domestic consumption and export.
The impact of covid 19 has led to an increase in the price of raw materials, leading to difficulties in the production
There are many competitors, from big manufacturers: Trung
Nguyen, Vinacafe, to coffee shop chains such as Phuc Long, Starbuck, The Coffee House, etc.
Customer needs are complex and affected by many factors
A wide variety of alternative products are increasingly gaining the trust of customers
7 SEGMENTATION - TARGET - POSITIONING STRATEGY 5.1 Segmentation
Nestlé Vietnam is launching a new product, NESCAFÉ Chocolate Bubble, as part of its strategic marketing planning This innovative beverage aims to capture the attention of consumers by blending the rich flavors of coffee and chocolate with a unique bubble texture The marketing strategy will focus on engaging the target audience through various channels, emphasizing the product's novelty and indulgent experience By leveraging market research and consumer insights, Nestlé aims to position NESCAFÉ Chocolate Bubble as a must-try product in the competitive beverage market.
Region : focus on big cities, near buildings, downtown, etc.
Region : focus on big cities, near buildings, downtown, etc.
Family life cycle: independence, coupling stage
Occupation: College students, part-time employees, employees,
Income: low to medium income or only pocket money
Social class: low to middle.
Family life cycle: independence, coupling stage, newly married couple
Income: medium to high income
Social class : middle to upper.
Psychographic Personality attributes : busy, ambitious, hustle and bustle, time and sanity needed.
Personality attributes : busy, stable, responsible, hustle and bustle, coffee drinking habit
Nestlé Vietnam is set to launch a new product, NESCAFÉ Chocolate Bubble, as part of its strategic marketing planning This innovative beverage aims to cater to the growing demand for unique and indulgent coffee experiences in the Vietnamese market By leveraging its strong brand presence and understanding of consumer preferences, Nestlé plans to effectively position NESCAFÉ Chocolate Bubble to attract a diverse audience The marketing strategy will focus on engaging promotional campaigns and collaborations to enhance brand visibility and drive consumer interest.
Lifestyles : Sensitive to technology, advertising, youthful, pursue new trends, experiences Ask for friend's advice convenience, habit
Lifestyles : hard working, gourmet coffee drinkers, pursue new trends, experiences selectively, personal opinions Ask for friend's advice
Usage rate : low to heavy product users
Benefit expectation: coffee product that suits their taste, convenient, helps them stay awake
Price sensitive : growing money awareness, limited budget.
Loyalty status : low loyalty, always look for new things.
Usage rate : medium to heavy product users
Benefit expectation: convenience, sanity, tasty coffee budget
Price sensitive: management for other purposes like family, etc medium
Loyalty status: loyalty, may consider other
Nescafe will focus on two main customer groups including 18-22, 23-30 because Nescafe's Chocolate Bubble Coffee meets most of the needs for taste, convenience, and mental alertness…