Final Assignmentsales Management- Trung Nguyen Coffe.pdf

Untitled BỘ GIÁO DỤC VÀ ĐÀO TẠO TRƯỜNG ĐẠI HỌC KINH TẾ TÀI CHÍNH THÀNH PHỒ HỒ CHÍ MINH FINAL ASSIGNMENT Sales Management Group 7 Nguyễễn Quyễết Tiễến Đ ng Thùy Ly Băngặ Huỳnh Ng c ọ Thanh L ng Nguyễễn[.]

BỘ GIÁO DỤC VÀ ĐÀO TẠO

TRƯỜNG ĐẠI HỌC KINH TẾ - TÀI CHÍNH

Table of Contents

CHAPTER I: CORPORATE STRATEGY 3

I: OVERVIEW OF TRUNG NGUYEN COFFE COMBPANY 3

II: ENVIRONMENTAL ANALYSIS OF TRUNG NGUYEN COFFEE 5

II.I MACRO ENVIRONMENT 5

II.II: MICRO ENVIRONMENT 8

III ANALYSIS OF PESTEL MODEL OF TRUNG NGUYEN 11

IV ANALYSIS OF THE 5 FORCES OF TRUNG NGUYEN COFFEE 21

V ANALYSIS OF THE 5M MODEL OF TRUNG NGUYEN COFFEE 23

VII CANVAS ANALYSIS OF TRUNG NGUYEN COFFEE 27

VI SWOT ANALYSIS 37

CHAPTER II MARKETING STRATEGY 40

II.I S-T-P STRATEGY OF TRUNG NGUYÊN 40

II.II MARKETING-MIX STRATEGY ANALYSIS 44

CHAPTER III : SALES STRATEGY 47

1 SALE ORGANIZATION 47

1.1 Overview of Trung Nguyen's organizational structure 47

1.2 Sales organization chart of Trung Nguyen 50

2 SALE PROCESS 54

2.1 The Selling process 54

2.2 Sales script (real estate) 56

3 SALES TARGET 70

4 SALES BUDGET 72

5 Sales Staff Recrui 76

5.1 Recruitment process 76

5.2 Job requirement of Trung Nguyen 80

6 TRAINING PROGRAM 83

7 MOTIVATION 88

7.1 Sales motivational factors 88

7.2 Employee motivation programs of Trung Nguyen 91

8 EVALUATION 93

8.1 Evaluation of Trung Nguyen coffee brand 93

8.2 Trung Nguyen's sales force assessment process 95

8.3 Evaluate the positions of Trung Nguyen's sales force 97

CHAPTER I: CORPORATE STRATEGY

I: OVERVIEW OF TRUNG NGUYEN COFFE COMBPANY

1 Brief introduction of Trung Nguyen coffee company

Born in the middle of 1996 - Trung Nguyen is a fledgling coffee brand in Vietnam, but has quickly built up a reputation and become the most familiar coffee brand for both domestic and foreign consumers

In just 10 years, from a small coffee company in the middle of the coffee capital Buon

Ma Thuot, Trung Nguyen has risen to become a powerful corporation with 6 member companies: Trung Nguyen Joint Stock Company, the company Trung Nguyen Instant Coffee Joint Stock Company, Trung Nguyen Coffee Company Limited, G7 Trading and Service Joint Stock Company and Vietnam Global Gateway Joint Venture

Company (VGG) with main industries including: production, processing processing and trading tea and coffee; franchise and modern distribution and retail services In the future, Trung Nguyen Group will develop with 10 member companies, dealing in

2 Company history and development

 Dang Le Nguyen Vu is the founder, chairman and general director of Trung

Nguyen Coffee Group Vietnam; He was honored by Forbes Asia as "Vietnamese Coffee King"

 In 1990, he entered the Central Highlands Medical University, during this time he also started the process of researching about coffee

 In 1996, he and 3 other friends established "Trung Nguyen Coffee Company" with only roasting, grinding coffee and delivering it to other shops

 After 2 years with the accumulated capital, he and his friends established the first Trung Nguyen coffee shop in Ho Chi Minh

 In 2000, Trung Nguyen coffee entered Hanoi capital and implemented the

franchise model For the next 2 years, Trung Nguyen Group successfully

franchised in Japan and Singapore

 In 2008, Mrs Le Hoang Diep Thao-wife of Mr Dang Le Nguyen Vu at that time established an office in Singapore By 2010, Trung Nguyen had exported to more

than 60 countries around the globe and conquered difficult markets such as the

US, Japan, China

 In 2016, Trung Nguyen became the largest coffee shop chain in Southeast Asia

Up to now (4/2021) in Vietnam Trung Nguyen has 431 coffee shops, including 354Trung Nguyen E-Coffee and 77 Trung Nguyen Legend stores In addition, in the international market, Trung Nguyen Legend has successfully joined the system of large global supermarket chains such as Metro in Russia, Costco in Australia and Costco Business Center in the US, 7-Eleven in Thailand, Lotte and Homeplus of Korea

3 Vision and mission

- Vision: To become a corporation that promotes the rise of the Vietnamese

economy, maintains the autonomy of the national economy and arouses and proves a desire for Dai Viet to discover and conquer

- Mission: Building a leading brand by bringing coffee drinkers creative

inspiration and pride in Trung Nguyen style imbued with Vietnamese culture

4 Product lines

1 Premium Trung Nguyen Coffee

- Weasel weasel coffee

- Legendee weasel coffee

- Creative 8

2 Roasted Coffee

- Group of popular roasted and ground products

- Group of processed products 1, 2, 3, 4, 5

- Group of innovative products 1, 2, 3, 4, 5

3 Pure coffee beans

4 G7 instant coffee

5 Fresh Coffee

6 Brothers sweetened condensed cream

7 Retail Items

- Great aluminum filter

- Copper drum aluminum filter

- Trung Nguyen Legend thermos bottle - white

- Trung Nguyen Legend thermos bottle-black

- Trung Nguyen Legend thermos bottle - silver

8 Paintings and umbrellas

- Trung Nguyen E-Coffee canvas painting

- Paintings of great beauty-beauties

- E-Coffee Central Highlands

II: ENVIRONMENTAL ANALYSIS OF TRUNG NGUYEN COFFEE

II.I MACRO ENVIRONMENT

1 Economic factors

Vietnam is on the rise with many new opportunities for cooperation and integration,which has a great impact on businesses in our country and for Trung Nguyen this is anopportunity to integrate and develop into the international market

When the economy develops, income increases, demand also increases, creatingconditions for production and business to develop According to the website of theGeneral Statistics Office, in general, Vietnam's economic growth rate has grownsignificantly over the years In 2020, despite the strong impact of the Covid-19 pandemic,the scale of Vietnam's digital economy will still reach 14 billion USD, contributing about5.2% of GDP with the strong development of the digital economy informationtechnology, e-commerce; telecommunication The "e-Conomy SEA 2020" report alsoshows that Vietnam and Indonesia are the two countries with the leading digital economicgrowth rates in the ASEAN region with an average growth rate of 27% in the period2015-2020

-But now our country is still a developing country, the average income is more than 60million VND/year, with such an income level, spending for a cup of coffee costs from40000-70000 VND is the most important thing difficult

According to Euromonitor's assessment, the coffee and tea chain market in Vietnam has

an annual scale of about 1 billion USD, but no unit has yet won an overwhelming marketshare Including popular names such as Highlands Coffee, Starbucks, The Coffee House,Phuc Long and Trung Nguyen also account for less than 20% of the market share Recentresearch by the World Bank shows that Vietnam's domestic market can consume up to70,000 tons of coffee per year That is, with a coffee output of 700,000-800,000 tons/year,domestic coffee consumption reaches nearly 10% Meanwhile, according to the WorldCoffee Association, domestic consumption of Vietnamese coffee is currently only nearly3.6%, the lowest level among coffee producing countries

2 Nature

Weather and climate, soil also affect the quality of coffee beans If the weather is notfavorable, coffee cultivation is affected, the supply of coffee is not guaranteed, directlyaffecting the business of the store The weather in Vietnam in recent years has becomemore and more erratic Droughts, floods, landslides, storms and floods have complicateddevelopments, seriously affecting our country's economy which depends heavily onagricultural production

3 Politics

With a stable political environment, together with policies and decrees to supportbusinesses to develop, and protect the legitimate rights and interests of businesses in ourcountry, it has created many favorable conditions not only for Highland Coffee but alsomany other businesses have an environment for sustainable development

In addition, the source of raw materials of domestic coffee chains is the domestic source

of coffee, our country has many policies to support the development of both coffeeresources, thereby obtaining both quality and together raw materials resonate to developwith the coffee growing industry

- Coffee is protected by the state in terms of rights and brands, supports product pricesand facilitates exports to foreign countries, besides, the state establishes a coffeeassociation to operate and develop coffee with the purpose of thoroughly grasping thelines and policies of the State Party, protecting each other from monopolistic acts, marketdisputes that infringe upon the interests of enterprises, and protecting the interests ofVietnamese coffee in the market With the accession to WTO, Vietnam's coffee industryhas had a new transformation, especially Trung Nguyen coffee has been known not only

in the country but also in the foreign market, creating more development orientations

4 Social factors

The attraction of delicious flavors has brought coffee beyond Ethiopia, spread acrosscontinents and quickly become the most valuable agricultural commodity in global trade.The most prominent trend in 2009 was the introduction of new coffee products usinghealthful flavors for consumers

The International Coffee Organization has collaborated with many reputable researchinstitutes and universities to research and clarify the relationship between coffee andhealth Drinking coffee will help reduce the risk of hepatocellular carcinoma or livercancer for short, drinking coffee can help cure eyelid spasms, reduce the risk of bowelcancer by 25%, bile cancer by 45% , pulmonary fibrosis 80% and Parkinson's disease 50-80% Although people have mentioned the toxic effects of acrylamide and furan ascarcinogens to rodents, the levels of these substances in coffee are negligible

Thereby, showing many benefits of coffee for human health, especially anti-aging effects.Currently, consumers increasingly attach importance to the evaluation of coffee quality.Vietnam, as well as some neighboring Asian countries, have a long tradition of drinkingtea Drinking coffee is a new habit introduced to our country not long ago, except for afew people who have had the habit of drinking coffee in the style of the French before.The introduction of coffee into the culinary culture of Vietnamese people is a long-term,enduring work that cannot be overnight

Trung Nguyen has a prominent advantage, that is, it is located right in Buon Ma Thuot,the hometown of coffee Therefore, Trung Nguyen easily creates cultural similarities withcoffee material suppliers as well as easily creates the characteristics of Vietnamese coffee

in each of its coffee products This is the point Trung Nguyen's strength compared toother competitors when building trading relationships and brand image

5 Population factors

Vietnam, a country with 58 million people of actual working age (between 15 and 64years old), is in the "golden population" period: on average, two workers support onedependent there is a “golden” opportunity when employing an abundant youngworkforce

In the second quarter of 2009, the Institute of Policy and Strategy for Rural Developmentconducted a study on domestic coffee consumption in two big cities, Hanoi and Ho ChiMinh City Survey results from 540 families, 60 coffee drinkers at coffee shops and 40coffee shops in Hanoi and Ho Chi Minh City show that coffee consumption in both citieshas increased in quantity and value One of the main reasons for that is the emergence ofmany Western-style cafes and people's growing preference for high-quality coffee

This survey shows that customers in their youth and adolescence have the fastest increase

in coffee consumption, both in terms of powdered and instant coffee Young and aged groups have the highest level of coffee consumption The old age group increasedconsumption very little and only increased consumption of powdered coffee

middle-In terms of industries, those who work a lot on the mind and have professional skills,technicians consume the most coffee Consumption also increased sharply in unskilledlabor

The South has 4-5 times higher consumption than the North and Central regions Surveys

in two big cities show that, in 2008, the average family in Ho Chi Minh City consumed6.1 kg of coffee/year, 3 times higher than in Hanoi In Ho Chi Minh City, more coffee isconsumed at the cafe In contrast, Hanoi drank more at home and a significant groupdrank in the office

6 Technology infrastructure

Trung Nguyen is a large corporation with solid infrastructure that is fully qualified to perform and manage basic operations with the best efficiency: Having its headquarters and distribution center in the shopping center is Ho Chi Minh City along with branches inother major cities across the country Besides, there are 2 production factories with the most advanced technology machines, bringing unique products with Trung Nguyen's owncharacteristics

Moreover, the market for equipment and machinery for coffee production is not

diversified due to the absence of new technologies Therefore, the pressure of

technological innovation to enhance competition for Trung Nguyen is negligible

II.II: MICRO ENVIRONMENT

1 Customer

-The customers that G7 cafe in particular and Trung Nguyen Group in general aim at areall coffee enthusiasts around the world, regardless of age, gender, geographic location orwork income In Vietnam, the instant coffee market in the North has stronger growth thanother regions, because consumers here are tending to switch from the traditional drink oftea to coffee With the promotion based on the national spirit, G7 has attracted a lot ofcustomers (mostly in the North)

-Consumer market:

-Trung Nguyen's customers are quite diverse with all types of subjects: from youngpeople, traders, freelancers, unemployed to office workers, people with high incomes,and the elderly

-The largest amount and value of coffee consumed falls in the middle-aged (35-50 yearsold) and old (over 50 years old) age groups, but the young (15-35 years old) group tends

to increase consumption strong coffee

-Occupation: Technician, management leader, professional, office worker and serviceindustry worker

-The style and habits of each person when drinking coffee are not the same:

-Stay awake at work or study

-Enjoy the taste of coffee

-Come to coffee to receive partners

-Because the company's famous brand -> more stylish, more professional style,

-Weaknesses: Trung Nguyen's strategy is aimed at the majority of Vietnamese consumers,without clearly defining target customers

-Solution: Find out the market gap, market segment, target customer segment

-Institutional market

Organizations, schools, hospitals, NGOs, non-profits,

2, Supplier

• Coffee

- Because of the advantage of being located in Buon Ma Thuot area - the coffee capital, because today the intermediary companies that supply raw materials face many

difficulties, many companies default → Trung Nguyen uses direct purchasing

Direct purchasing: Invest in and manage farmers' coffee farms, turn coffee farms into a part of the business → take initiative in raw materials

• Packaging

- Phuong Nam Packaging Production Trading Co., Ltd

- Vietnam Packaging and Printing Ink Company Vinapackink

• Machinery and equipment

-Neuhaus Neotec Company - the world's leading manufacturer of coffee processing equipment in Hoykenkamp - Germany

3 Marketing intermediaries

-With the goal of its products spreading throughout Vietnam and around the world, TrungNguyen has made distribution with many different channels

- Trung Nguyen maintains a franchise system (franchised stores) including more than

1000 coffee shops throughout Vietnam and abroad such as the US, Japan, Thailand Consumers can also find G7 products in small grocery stores, meeting the needs of

convenient shopping, close to the home of Vietnamese people

-G7 mart system is also a modern and huge retail distribution system of Trung Nguyen with the selling price being the price offered by the manufacturer and agreeing on the same price nationwide

Trung Nguyen also conducts media marketing on television, advertising posters with impressive slogans to reach consumers faster,

4 Competitor

Direct:

• Nestle's Nescafe

+ Advantages:

- Is a famous and long-standing coffee brand in the world (1938)

- Diversity of coffee products

- Know how to adapt and develop products, launching products that are suitable for Vietnamese people's taste

- Distributed all over the country so consumers can buy easily

+ Disadvantages

- The price is higher than Trung Nguyen's similar products

- Because it belongs to a foreign company, it is difficult to approach customers with the idea of "Vietnamese people use Vietnamese goods"

- Not using modern distribution system yet

- Only selling packaged and ready-to-drink coffee, but no instant coffee shop system

• Vinacafé of Bien Hoa Joint Stock Company

+ Advantages:

- Is a long-standing and prestigious brand in the Vietnamese market

- Wide range of products

- Cheap price, suitable for Vietnamese consumers

- Strong distribution system makes it easy for consumers to access products

- Be the exclusive partner to supply products for all flights of Vietnam Airlines

+ Disadvantages:

- Weak facilities, outdated technology

- Roasted coffee occupies a small market

- Adventurous Marketing Strategy

And Café Vinamilk of Vietnam Dairy Products Joint Stock Company – Vinamilk,

Maccoffee of Food Empire Holdings

5 General Public

 Trung Nguyen has implemented quite successful PR plans with clear results such as:

- Trung Nguyen collaborated with Thanh Nien newspaper, Vietnam Youth Union to launch the program "Creativity for Vietnamese Brands"

Trung Nguyen and Vietnam Television established the Investment Fund "Initiating

Creativity" to finance the winners of the VTV3 Startup program -> encourage and create opportunities for the young Vietnamese generation to practice implementing innovative projects and business ideas =>> contributing to nurturing young business talents for the country Funding capital 2 billion VND

-Besides, Trung Nguyen also cooperated with Youth Newspaper to implement the

program: "Our country is small or not small" Launching the "war for Vietnamese brands"

by Trung Nguyen is also highly appreciated Trung Nguyen with the program Building a brand of Vietnamese agricultural products

 Trung Nguyen participates in sponsoring the following programs:

-Sponsoring the program "Connecting big arms" for the poor organized by Hanoi Moi newspaper, Sai Gon Giai Phong newspaper, Da Nang newspaper from June to July 2004 -Journalism month for the poor In this program, Trung Nguyen donated 1 billion VND -Participate in supporting Vietnam's Agent Orange victims in the humanitarian program

"We are not emotionless" of Vietnamese television: 10 million VND

-Support the charity program "Connecting the heart" to perform heart surgery for

children with congenital heart disease in difficult circumstances of the HCM Red Cross:

- Tax policies : In the context of the epidemic situation, which continues to break

out, businesses, especially small and medium enterprises, face extremely difficult difficulties Vietnam has also basically issued many policies, especially tax

solutions, to support businesses to overcome difficulties affected by the

COVID-19 epidemic

 reduce financial burden on Trung Nguyen coffee

- Level of government intervention: Level of government intervention: The State

manages the economy, orientations, regulates and promotes socio-economic

development by means of laws, strategies, master plans, plans, policies and forces.material quality, complying with the development of the market, complying with the rules of the market economy, compatible with the practices of other countries

 Trung Nguyen Coffee enjoys considerable support from the state

- Competition law: Competition Law was changed on September 13, 2018 to help

protect the competitive environment; fair competition between businesses in the market- ensures the legitimate rights and interests of Trung Nguyen coffee and Vietnamese consumers

- Regulations on safety and consumer protection:

+ Consumers are guaranteed the safety of life, health, property, other lawful rights and interests when participating in transactions, using goods and services provided

by organizations or individuals trading goods and/or services supply service Provided with accurate information

+ Selection of goods, services, business organizations and individuals

+ Give opinions to organizations and individuals trading goods and services on prices, quality of goods and services, service styles, and transaction methods

 Trung Nguyen all meet the criteria of consumer protection:

+ Trung Nguyen coffe's dishes are all researched on consumers' health

+ The production processes are also strictly controlled to ensure food safety and hygiene

+ Trung Nguyen coffe also has forums for consumers to contribute their

assessment of service quality in Trung Nguyen

 Weakness:

- - The political and legal system in Vietnam is relatively stable, creating

opportunities for coffee companies to expand production with peace of mind However, the inconsistency in some regulations of the State has created conditionsfor enterprises with 100% foreign capital (FDI) to circumvent the law and have therisk of monopolizing the raw material area of Vietnam's coffee production

- Labor Law:

Ex: working no more than 8 hours/day

Ceremonies are still paid

Trung Nguyen's stores are open for sale from 7 a.m to 10 p.m., so they have to create two streams of employees working for each shift to ensure employees' laborrights, and the number of employees to serve

 create financial pressure to train employees as well as pay employees per shift.

2 Economic

 Strength

- From 2002 to 2018, Vietnam's GDP per capita increased 2.7 times, reaching over

USD 2,700 in 2019, with more than 45 million people escaping poverty The poverty rate dropped sharply from more than 70% to less than 6% ($3.2/day at purchasing power parity) Even during the Covid epidemic, GDP growth is

estimated at 2.9% in 2020 Vietnam is one of the few countries in the world with positive economic growth during this period The economy is forecast to grow 6.6% in 2021 if Vietnam manages to control the spread of the virus well, export-oriented manufacturing industries perform well and domestic demand recovers strongly

- Gross domestic product (GDP) in 2019 achieved impressive results with an

increase of 7.02%, import and export turnover exceeded 500 billion USD

With such amazing economic development of Vietnam, people's living standards are improved, infrastructure is developed, technology is increasingly advanced,

  Trung Nguyen coffee thus has a fertile market In 2016, Trung Nguyen Group's revenue reached over 3,800 billion VND The figure increased to 3,951 billion VND in 2017 In 2018, Trung Nguyen Group's revenue increased sharply compared to the previous year, increasing by more than 400 billion VND to 4,360 billion VND

- - Inflation in Vietnam tends to increase, affecting production activities, especially

enterprises However, with the current falling Vietnamese currency, Trung Nguyen

is an opportunity to penetrate the domestic as well as international markets

because Trung Nguyen's products will be cheaper than foreign products, thus reducing the threat from foreign competitors

 Create opportunities to increase external sales

- - Vietnam is on the way of development with many opportunities for cooperation

and extensive international economic integration

 Create favorable conditions for Trung Nguyen to expand its market as well as make it easier to call for investment capital from abroad

 Weakness

- - Vietnam imposes a tax rate of 16-20% on green coffee, 35% on roasted coffee,

43% on instant coffee and 10% VAT on uncaffeinated roasted and ground coffee The same for Brazil is 10, 10, 16 and 13%; Colombia is 10-15, 15-20, 20 and

10% It can be seen that the tax on coffee in Vietnam is very high (before the covidepidemic).

 This may inhibit the development of the coffee industry in general and Trung Nguyen coffee in particular

- Price affects the revenue of the business:

+ With Brazil and Vietnam as the world's top coffee producers, the exchange rate

of the USD against the Brazilian Real and the Vietnamese Dong can have a

significant impact on coffee prices The decrease in the value of local currencies ofcoffee exporting countries will encourage farmers to increase their export output while reducing their production costs A decrease in the USD will make coffee prices go up and vice versa, when the USD increases, it will put downward

pressure on coffee prices

+ Most of the coffee groups tracked by ICOs have recorded bullish momentum since June 20201 and hit multi-year highs In which, the Colombian Arabica coffee price index reached 206.53 US cents/lb, up 3.8% month on month and 40.3% over the same period last year, which is the highest average monthly price since October 2014

Daily Coffee Price Index tracked by ICO (Source: ICO)

 With the complicated fluctuations of coffee prices, Trung Nguyen Coffee has toadjust the output of many different products, and must monitor cash flow and priceregularly to ensure the organization's revenue

- - Currently, our country is still a developing country, the average income is more

than 60 million VND/year, with such an income, it is difficult to spend on a cup of coffee priced from 40000-70000 VND

 People's income is still low, the demand for a cup of high-class coffee is not high, so it is difficult to compete with cheap street cafes

- - Currently, Vietnam's economy is quite unstable, the growth rate is increasing, but

it is accompanied by rising inflation Inflation makes the cost of space, raw

materials and labor go up very quickly The cost of coffee has increased by 25%, the premises increased by 10-20% Even cups, bags, and straws cost 10-20%

"There are materials that increase by 20-30%

 The devaluation of the currency causes many difficulties for Trung Nguyen's business activities, especially in raw material procurement

3 Social

 Strength

- Trung Nguyen has an outstanding advantage, that is, it is located right in Buon Ma

Thuot, the hometown of coffee Therefore, Trung Nguyen easily creates cultural similarities with coffee material suppliers as well as easily creates the

characteristics of Vietnamese coffee in each of its coffee products

 This is Trung Nguyen's strength compared to other competitors when it comes

to building sales relationships and brand image

- Consumers are increasingly interested in products that improve health

The International Coffee Organization has collaborated with many reputable research institutes and universities to research and clarify the relationship between coffee and health Drinking coffee will help reduce the risk of hepatocellular carcinoma or liver cancer for short, drinking coffee can help cure eyelid spasms, reduce the risk of bowel cancer by 25%, bile cancer by 45% , pulmonary fibrosis 80% and Parkinson's disease 50-80%

 The use of quality coffee shows many benefits to human health, especially anti-aging effects Therefore, consumers increasingly attach importance to the evaluation of coffee quality and that is also the strength of Trung Nguyen, a coffee company that always puts quality first

- According to IAM's study on coffee usage habits, 65% of Vietnamese coffee users

drink coffee 7 times a week, leaning towards men (59%) Particularly for instant coffee, 21% of consumers use instant coffee 3 to 4 times a week and are slightly inclined towards female consumers (52%) The rate of using coffee at home (In home) and outside (Out of home) is equal 49%/50% The most popular time to drink coffee is from 7-8 am

Coffee drinking habits: The three main factors affecting the decision to drink coffee at the shop are taste, style and brand of coffee used, 44.7% of people who drink coffee at the shop confirm that they have a good taste taste (specifically,

most consumers prefer coffee with bitter taste and aroma), 39.9% answered for style (quiet, luxurious, stylish, easy to gather friends are the characteristics drinkerattraction), and only 15.4% chose a brand Today's consumers are also more

sympathetic to coffee products made from clean ingredients

 Therefore, we can see that Vietnam is a potential market for the development

of the coffee industry and from the coffee consumption habits of Vietnamese people, Trung Nguyen can easily identify the demographics and make

recommendations product diversification strategy to meet the increasing needs

of customers

 Weakness

- Many world-famous coffees have been imported to Vietnam such as Espresso,

Cappuchino, Latte, If before, everyone could easily make a cup of traditional coffee, now making coffee is a whole thing art Not only admire the cafe space, customers also want to see the unique shape of a cup of coffee

Coffee cups with milk foam with eye-catching patterns that people can't bear to drink require baristas who are proficient in coffee machine techniques and shapingtechniques on coffee cups The concept of deliciousness with today's new culture

of enjoyment is not only delicious in quality, but also in appearance, "delicious"!

 The demand of coffee users is increasing due to the unique appearance of competitors from abroad This forced Trung Nguyen to improve its products to maintain its position in Vietnam

- The culture of drinking street coffee in Vietnam is difficult to change, psychology

and culture are obstacles for high-end coffee chains

- Impacts of migration to the Central Highlands in recent years.

In relation to the whole country, basically, the Central Highlands is still a large andsparsely populated land, with a population of approximately 1.0 million people, belonging to about 20 different ethnic groups, of which more than half are the population and local ethnic minorities Experiencing natural and mechanical population growth after 1975, especially after 1990, the population of the Central Highlands increased rapidly and abnormally (about 5 million people), belonging to

47 ethnic groups, divided into 2 parts are local ethnic minorities (13 ethnic groups)and new arrivals (34 ethnic groups) It can be said that nowhere in our country andother countries in the region has the mechanical population growth rate as rapid and strong as in the Central Highlands in the past 20 years The process of mass migration, mostly spontaneous migration of the Kinh and northern ethnic

minorities in recent years, has strongly affected the multi-faceted life of the

Central Highlands in general and of the ethnic minorities ethnic minorities in the Central Highlands in particular

In addition, the above also greatly affects the level of people's knowledge as well as the ability to intensively cultivate coffee in this area For example, at the end of 2010, in Hoa Dong commune - Krong district - Pak - one of the key input areas of Trung Nguyen coffee company, because people lacked

knowledge about selecting varieties that are not only delicious but also must

be selected healthy, good drought tolerance caused a serious crop failure, greatly affecting the input material for Trung Nguyen coffee.

 Trung Nguyen needs to come up with solutions to help improve knowledge on cultivation as well as awareness on coffee selection to improve the source of raw materials and avoid risks

4 Technological

 Strength

- Trung Nguyen coffee processing factory is invested with a total investment of more than 40 million USD, built on an area of 27,000m2 and divided into 2

phases In the first phase, nearly 20 million USD will be invested in the

construction of infrastructure and basic operating systems Phase 2, will continue

to invest the remaining investment capital for the procurement of operating

equipment systems, machinery and technology according to the world's most modern standards, and at the same time building and expanding the building machine add 50,000m2 It is expected that the factory design capacity will reach more than 60,000 tons of processed coffee per year and as planned

Along with a closed roasting-grinding-packing line according to German

technology, Trung Nguyen has pioneered in investing in an instant coffee

production line with modern cold-drying technology - this is the most advanced technology in the world The first world to be invested in Vietnam With this technology,

 Trung Nguyen will contribute to affirming its pioneering position in the field ofconvenient coffee in Vietnam and prepare Trung Nguyen in a direct

competition with global coffee brands and demonstrate its determination to make The goal is to conquer the world

- The market for equipment and machinery for coffee production is not diversified

due to the low appearance of new technologies

 Therefore, the pressure of technological innovation to enhance competition for Trung Nguyen is negligible

- - Despite facing difficulties due to the impact of the Covid-19 pandemic, Trung

Nguyen E-Coffee still maintains a strong growth rate in store coverage

nationwide, affirming its position as a retail store system The world's number 1 coffee retailer in Vietnam In order to adapt to the "new normal" business

conditions, Trung Nguyen E-Coffee's model has quickly transformed into new business methods, applying technology on online purchase platforms such as:

Grab, Now, Go Food, Loship applications, promote cooperation with online

payment partners, combine door-to-door delivery when ordering via hotline

 Help optimize the customer experience

- - In an effort to bring energy coffee products closer to every customer in the

context of online shopping being a trend, Trung Nguyen has built a different energy coffee space, especially on the basis of online platform, called Coffee Hypermarket This is where coffee enthusiasts can: shop for excellent quality coffee products; search for equipment and preparation tools; study the secret of effective business

 Expansion of new business model

 Weakness

- - Although there is a convenient online platform for Trung Nguyen's business such

as Coffee Hypermarket, the old system interface does not bring the best user experience

 Make it difficult to expand the customer base and operate new business models

- - In the midst of the current growing era, it is inevitable that new technologies

from developed countries are imported into Vietnam, causing competitive

pressure, causing businesses to innovate in technology and business Coffee is no exception Recently, on social networking sites, a type of Chinese compressed coffee is being imported into Vietnam, and the online community named this coffee "Instant Coffee 4.0" because of its convenience Using, unique technology and good for health, users just need to press the button at the other end of the coffee stick compressed into a glass of water to have a cup of coffee of the same quality as a coffee shop

 This more or less also causes competitive pressure on the Vietnamese coffee market

5 Environmental

 Strength

- - Trung Nguyen's raw materials are purchased from Gia Lai, Dak Lak, Buon Ma

Thuot and Lam Dong, so the supply depends greatly on the natural conditions here:

Basalt red soil: The soil in the Central Highlands is more than 80% fertile basalt

soil with high porosity, suitable for industrial crops to grow, especially coffee Coffee farmers do not need to invest as much fertilizer as other areas, taking time

to take care of fresh pepper, so coffee trees produce better yields

The altitude is about 1300 - 1500m above sea level:This is the ideal height to get

the best quality coffee beans and the Tay Nguyen area meets this standard The cold, foggy climate creates favorable conditions for coffee trees to grow

High day and night temperature difference:The weather in the Central

Highlands is quite pleasant, the day is sunny but the night is cold The large

weather difference is one of the main factors that make the quality of coffee in thisarea better

High air humidity:The weather in the Central Highlands, especially Da Lat, is

lying around, the humidity is high to meet the humidity requirement of over 70% for the whole coffee tree to grow well High air humidity reduces plant water loss through transpiration However, this area does not rain much, so pests and diseases

do not have many opportunities to thrive

 The above factors have helped the Vietnamese coffee industry in general and Trung Nguyen coffee in particular have a rich and abundant supply of raw materials

 Weakness

- - Climate change can have a very noticeable impact on coffee production in many

aspects such as quality, yield, disease, watering and global coffee production:+ As the temperature increases, the coffee ripens faster leading to a decrease inquality

+ Increased temperature affects many aspects of the metabolism of coffee plantssuch as flowering, photosynthesis, respiration and material synthesis, which willaffect coffee yield

+ Rising temperatures will promote the proliferation of certain diseases as well asallow distribution to areas that were previously absent

 As a result of all the environmental variation, it is likely that the area suitable for growing high-quality coffee will be smaller Trung Nguyen Coffee as well

as the coffee industry has to face climate change

- Currently, the demand of customers is increasingly directed to products that are

not only good for health but also have to protect the environment

 Therefore, Trung Nguyen needs to focus on sustainable projects to protect the environment as well as diversify the needs of customers

- - The processing of coffee can seriously affect the environment Through review

by specialized agencies, one of the causes leading to environmental pollution fromcoffee processing is spontaneous, small, scattered, unskilled coffee production andprocessing establishments waste and wastewater treatment technology according

to regulations; awareness of environmental protection of households, coffee

production and processing establishments is still limited, often discharging wastes directly into the environment, polluting water, soil, air Up to the present time , the waste treatment system of household-scale coffee processing establishments is not secure; Specialized agencies have not yet received the application for

registration of an environmental protection plan for household-scale coffee

processing activities, because the investment cost to build a waste treatment

system exceeds their capacity family capacity

 Trung Nguyen Coffee's coffee supply partly comes from households As such, the company's reputation will be severely affected Therefore, Trung Nguyen needs to promote environmental protection to ensure the company's image

- Statistics show that every year, 2.5 billion disposable coffee cups are released into the environment, but only 25% of them are recycled It is estimated that for every

400 cups of coffee, 1 cup of coffee is recycled So where will the rest go? The question has made researchers wonder about the level of pollution that the

environment suffers

Besides, the volume of coffee grounds is also gradually increased, but the

treatment method for both cups and coffee grounds is still at a rudimentary level, which is landfilling or burning That inadvertently causes the environment to reachalarming levels of pollution

 The coffee industry in Vietnam in general as well as Trung Nguyen coffee in particular should consider to bring recycling solutions to protect the

environment

IV ANALYSIS OF THE 5 FORCES OF TRUNG NGUYEN COFFEE

Industry competitors

- There are many competitors in the industry of Trung Nguyen coffee:

+ Chain of coffee shops: Starbucks, Highlands Coffee, Phuc Long, The Coffee House, GutaCafe, Milano Coffee, Cong Cafe, Passio Coffee

+ Particularly for instant coffee products: Trung Nguyen has to compete with two big companies, VinaCafe and Nestle

- Great exit barrier

- The product is no different, easy to replace

- The competitors are "equal" with each other, each competitor has its own strengths and has great potential in the market

Threat from substitute products

- The beverage market with a variety of products for customers to choose from has created

a great threat to Trung Nguyen coffee Products roasted and ground coffee, instant coffee faced with soft drinks, other soft drinks, alcoholic beverages or tea bags

- Coffee shops have to face milk tea shops, eateries, and restaurants with spaces that match the needs of customers in the current 4.0 era: beautifully decorated, modern, catering

- The bargaining power of suppliers in the coffee industry is high due to the limited number

of producers of high quality coffee beans For example, Arabica coffee beans,

considered by many to be the highest quality coffee beans, are mainly grown in a smallnumber of countries, such as Colombia, Brazil and Ethiopia

- Suppliers have the right to force the company to buy raw materials and services at high prices

- When switching from one supplier to another is very expensive

- The more supplier options a company has, the easier it is to switch to a cheaper supplier Conversely, if there are fewer suppliers and their power is large, the company has to rely on them, leading to increased costs

- Suppliers, if they have the advantage of negotiating power, can have important effects on the manufacturing industry, such as forcing prices of raw materials Managers need to know in the industry, whether suppliers are powerful or less powerful

- Suppliers are the first important link in the supply chain of each business, they provide input materials for the production process, thereby affecting the quality and price of output products

- The company has two forms of purchasing, which is through private enterprises, traders and directly from farmers With the first form, when private businesses or purchasing agents face many difficulties, many agents default, directly affecting the supply that is not enough in both quantity and quality Therefore, Trung Nguyen restricts the use of this supplier

Power of the customer

- Customers have many coffee brands to choose from and can switch to competitors to purchase if they are not satisfied with the services at Trung Nguyen coffee or buy at a cheaper price

- Each customer also tends to be loyal to their own coffee brand, to retain their customers and attract other potential customers.

- Trung Nguyen Coffee can increase its bargaining power by building strong relationships with customers through personalized marketing and promotions In addition, Trung Nguyen coffee can differentiate its products by offering unique flavors or blends that other brands do not have, making it difficult for customers to switch to another brand

- Pressure from potential customers will affect the pricing of these affordable products more Trung Nguyen also needs to focus more resources on this segment to maintain market share

Threat from new entrants

- Trung Nguyen may be affected by the ability of new competitors to enter the market

- Barriers to entry into the coffee industry in Vietnam are low, the industry is easy to

penetrate with little resources but brings great benefits, competitors easily enter the market and compete with established companies like Trung Nguyen Coffee

- Long-standing companies like Trung Nguyen Coffee may have the advantage of brand recognition and customer loyalty, but they must constantly innovate and differentiate their products to stay ahead new opponents – opponents with a new and modern breath

- The threat of new entrants to Trung Nguyen is moderate Barriers to market entry are not high and the initial investment to start building a coffee brand is not high either

Industry saturation is moderately high New entrants can compete with brands like Trung Nguyen at the local level

V ANALYSIS OF THE 5M MODEL OF TRUNG NGUYEN COFFEE

Manpower

 Currently, Trung Nguyen Group has about 2000 employees working for Trung Nguyen Joint Stock Company, G7 Trading & Service Joint Stock Company at 3 offices, 2 factories and 5 branches nationwide together with the company VGG joint venture operates in Singapore In addition, Trung Nguyen also indirectly creates jobs for more than 15,000 employees through a system of 1,000 franchisedcafes across the country

 The management team of Trung Nguyen Group are mostly young, well-trained people, along with experienced consultants working in foreign corporations

 With the strategy of becoming an economic group consisting of 10 member

companies operating in many fields: planting, processing, exporting, breeding,

media, real estate , Trung Nguyen Group always needs added a team of young, energetic, enthusiastic and creative human resources, ready to join us in building Trung Nguyen into a powerful economic group of Vietnam.

 Trung Nguyen Group's employees are always given the best working conditions tolearn, develop their abilities and dedicate themselves with the spirit of

"Commitment - Responsibility - Honor"

 Vision: To become a corporation that promotes the rise of Vietnam's economy, maintains national economic autonomy, and arouses and proves a desire for Dai Viet to discover and conquer

 Mission: Building a leading brand by bringing coffee drinkers creative inspiration and pride in Trung Nguyen style imbued with Vietnamese culture Connect and grow coffee lovers and enthusiasts around the world

Methods

 Limit the growth rate of franchises in the Vietnamese market because at the current rate, Trung Nguyen cannot control the whole thing For example, a province should only have 2-3 franchised branches, which can be easily and conveniently controlled by the superiors

 Build stricter transfer contracts, with strict regulations plus consistent profit margins This will stimulate franchise owners to strictly abide by the provisions

of the contract

 Training more knowledge and experience for managers as well as employees Build a good image for the brand Because just one branch changes employees with a bad service attitude, it will be equated that Trung Nguyen also has a bad service attitude towards customers

 In addition, as a solution in the stage of product purchasing to purchase quality products, Trung Nguyen needs to build a model of close cooperation between businesses and farmers to be able to create a good mentality and peace

high-of mind for farmers

 In addition, it is necessary to strengthen the promotion of the brand on

television, newspapers, magazines, so that the brand is not gradually

forgotten in the minds of customers

 It is necessary to choose a spearhead in the customer segment, in order to

develop and affirm and emphasize the brand, as well as to have a focused, deep, and not spread policy

 In terms of production scale, the Group currently has 3 factories: 1 coffee factory

in Saigon, 2 Trung Nguyen instant coffee factories in Binh Duong and Bac Giang along with modern equipment and machinery can provide the market with the bestquality and most delicious coffee products, worthy of the Vietnamese coffee brand name

 Factory in Tan Dong Hiep A Industrial Park, Binh Duong Province: with a

capacity of 3,000 tons/year and total investment capital of over 10 million USD

 Factory in Buon Ma Thuot City, Dak Lak: with a capacity of 60,000 tons /year, with an investment of 711.72 billion VND (40 million USD)

 Coffee processing factory in Buon Ma Thuot, Dak Lak: with a capacity of 10,000 tons/year This is the largest factory in the Central Highlands, 80% of output is for export

 Saigon Coffee Factory: acquired by Trung Nguyen from Vietnam Dairy Products Joint Stock Company Vinamilk in 2010

 Bac Giang factory with total investment capital of 22,000 billion VND; In the first phase, focus on processing and packaging finished products for instant coffee products G7 Trung Nguyen Legend is the world's leading corporation in

transferring environmentally friendly technology Trung Nguyen coffee products meet the strict standards of the FDA to export coffee to the My, Japanese and European markets

Material

 Suppliers are the first important link in the supply chain of each enterprise, they provide input materials for the production process, thereby affecting the quality and price of output products

 For Trung Nguyen, coffee beans are the main raw material Trung Nguyen selects from 4 regions with the best ingredients:

Robusta coffee beans Buon Ma Thuot

Jamaican Arabica beans

Coffee from the original homeland of Ethiopian coffee

Brazilian coffee

 With the advantage of being located right on the coffee capital of Vietnam, Trung Nguyen has many advantages in purchasing raw coffee The company has two

forms of purchasing, which is through private businesses, traders and directly fromfarmers.

 Trung Nguyen said that the coffee beans used by this company are purchased fromsmall coffee farmers who have certificates of sustainable farming practices and thecompany buys at preferential prices from these households

 Trung Nguyen's supply chain is considered to be a successful supply chain, from proactively purchasing raw materials, investing and controlling production

activities effectively to widespread distribution to customers

Management

 For the creation and development of products that lead to success like G7,

Chairman of Trung Nguyen Group - Mr Dang Le Nguyen Vu and a team of

experts research and in-depth study the influencing factors, physical properties The psychology of coffee beans and its impact on the brain to be able to develop and create the best products for the brain, great coffee products with the ability to control “understanding core competencies and focus on exploiting core

competencies”

 Trung Nguyen has studied and researched basalt soil and Robusta coffee of Buon

Ma Thuot land The success of the G7 product is the quintessential combination, selected from the best ingredients, extracted from the most quintessential part of the coffee bean, combined with the most modern technology and the know-how ofpreparation Eastern mystery to create a perfect coffee product that is dense, seductive, different from other types of coffee, not only healthy for the mind but also helps to create the capacity for the user

 At work, he is a very enthusiastic and decisive person: He constantly tosses about

a powerful, great and influential Vietnam”… He can talk for hours on end, raving about coffee coffee, about the "black gold" that he vowed to live and die for all his life, about the cause of national salvation, about the great youth class

 He is a leader with a new way of seeing and thinking:

Inspired creativity

Brand development and protection

focus on consumers

efficiency as the foundation

 He always appreciates and builds solidarity within the company

 He is a leader with "heart" and "vision".

 He always appreciates risk management

 He is a good time manager He is a busy person, but he also participates in many experience-sharing seminars, doing charity work

VII CANVAS ANALYSIS OF TRUNG NGUYEN COFFEE

According to usage habits: Hanoi people prefer instant coffee, while Saigon people preferfilter coffee

Based on the segmentation of the Vietnamese coffee market, Trung Nguyen has aimed to serve customers ranging in age from young to middle-aged This is the age where the need for meetings and group conversations is very high for a multitude of reasons such asgroup meetings, business discussions with partners, etc Right from the early days of establishment, Trung Nguyen coffee has appeared throughout the world nationwide in the form of franchised coffee shops Compared to other brands, each cup of Vietnamese coffee is sold at a relatively cheap price, ranging from 20-40,000 VND/cup, compared to 40-65,000 VND at brands like Starbuck, Highland

It is thanks to the selection of the main target market, and a reasonable business strategy, that Trung Nguyen coffee has brought this luxury drink in the West into a daily drink, cheap price, easy to access close, well known Thereby helping Trung Nguyen own a network of nearly 1,000 franchised cafes across the country.

2 Value Propositions

2018 marks a big transformation of Trung Nguyen coffee Under the situation that the brand name is showing signs of being overshadowed by the image of Trung Nguyen being abused by coffee dealers, Trung Nguyen Group has determined to change itself, taking the brand name Trung Nguyen Legend The Group has comprehensively

repositioned from organization, product, model to form a global brand

Products are classified into 3 types, serving 3 customer segments Trung Nguyen coffee target market towards:

High-end products: weasel coffee, Legend coffee, targeting the luxury segment market

Mid-end products: products from the G7 brand and the traditional coffee lines of Trung Nguyen continue to be sold and aimed at the middle-class customer market

Conventional products: G7 instant coffee products, aimed at the general consumer

market

Under the leadership of Dang Le Nguyen Vu, Trung Nguyen Legend became the only brand that she filtered the coffee culture of the 3 Ottoman - Roman - Zen civilizations, expressing her global vision Trung Nguyen Legend aims at the cultural market, towards in-depth enjoyment, beyond the boundaries of just a drink The high-end product

segments of Trung Nguyen Legend are now valued as a luxury gift, used in international events and large meetings

Trung Nguyen Legend Group has been implementing overall strategies, forming a

comprehensive and sustainable coffee ecosystem from physical coffee - spiritual coffee - social coffee

3 Channels

3.1 : Trung Nguyen distributes coffee by franchising

- Trung Nguyen is the first enterprise to apply the franchise business model by building a nationwide franchise system and in major markets such as the US, Japan, Singapore, Thailand, China, and Cambodia , Poland, Ukraine With the form of

franchising, Trung Nguyen offers coffee lovers a unique style of enjoyment, imbued with Vietnamese cultural identity with the quintessence of humanity

At Trung Nguyen coffee franchises, coffee lovers everywhere will feel the unique coffee culture of Vietnam Since its inception and development, so far Trung Nguyen owns about 1,000 franchised cafes The operating guideline of franchise establishments is to bring people to enjoy cups of coffee with delicious, traditional flavors only available in Vietnam

In September 2008, at Singapore Changi Airport, Trung Nguyen launched a new coffee model, completely different from previous franchises but still inheriting cultural

characteristics This is the premise for Trung Nguyen's next series of franchises to be born and create a new wave

The franchise coffee shop space is creatively designed to bring coffee lovers comfort and

a sense of sublimation when experiencing The franchise facility is not only for coffee enthusiasts but also a place to meet and share the joys and sorrows in life of people from all over the world No matter who they are, they all enjoy the warm coffee taste together

in a close space towards a more positive and joyful life

3.2 Traditional distribution intermediaries

- With a traditional distribution channel, Trung Nguyen coffee mainly focuses on

distributing mid-range and mass-market coffee at low prices Because these product lines are easy to consume and reach the majority of customers, they are welcomed and trusted

by many users

To deliver products to consumers, Trung Nguyen has cooperated with 3 levels of

distribution: wholesalers (distributors, system of large and small supermarkets), retailers (small selling points, shops selling goods) retailers, grocers) and finally consumers.According to updated statistics in 2010, Trung Nguyen currently owns 4 roasting coffee factories, 2 instant coffee processing factories across Vietnam, a network of 600 coffee shops in Vietnam, and 121 distributors exclusive distribution, 7,000 points of sale and 59,000 retail stores

3.3 Trung Nguyen Cafe distributed through G7 Mart

Besides the two distribution methods mentioned above, Trung Nguyen's distribution strategy is G7 Mart - the first franchised retail system in Vietnam According to Trung

Nguyen, the G7 Mart system was born to meet the habits of Vietnamese consumers who prefer shopping at small stores, shopping close to home.

Therefore, G7 Mart is usually a small-scale store such as a grocery store or a chain of convenience stores that creeps into crowded alleys However, G7 Mart has overcome the disadvantages of traditional distribution methods such as low selling prices, uniformity, ensuring to operate like a supermarket and applying technologies to the management process

After expanding this system, Trung Nguyen has distributed all existing coffee products,

in addition to distributing other products in business Moreover, G7 Mart currently has more than 200 suppliers for the entire chain of stores across the country The birth of this chain of systems has demonstrated the strategic vision and ambition to dominate the domestic market and reach out to the world of Trung Nguyen Group

Since its establishment and development, the G7 Mart system has had more than 10,000 retail stores and grocery stores participating in the G7 Mart project and transformed into modern retail stores This is a huge distribution network that Trung Nguyen has

successfully exploited

Trung Nguyen's G7 Mart project is considered as a solution to the domestic distribution problem and a mechanism to gather Vietnamese manufacturers to serve the nationwide distribution network, in order to solve difficulties of small manufacturers when bringing goods and brands closer to consumers

3.4 Trung Nguyen coffee distributed via e-commerce channel

- With a prominent trend in recent years is to do online business and put products on commerce sites, Trung Nguyen Legend has officially launched "Trung Nguyen Legend Coffee Brand Booth" on Amazon This is a milestone marking an important step for the Group on the journey of coffee export by leveraging the cross-border e-commerce

e-platform

The variety and quality of products, along with the strong development of e-commerce, have helped Trung Nguyen Legend coffee conquer the coffee lover community and resonate in the international market Selling on Amazon is Trung Nguyen Legend's wise direction to exploit a potential and sustainable new sales distribution channel in the direction of current and future development activities

The wise distribution strategy has helped Trung Nguyen coffee brand increasingly

dominate the Vietnamese domestic market, creating a springboard for the brand to expandand develop more in the international market In addition, Trung Nguyen also uses an

online Store with the name: "Trung Nguyen Coffee store" - a form especially suitable for the consumption behavior of young people today.

4: Customer Relationships

1/ Customer Positioning

Positioning refers to the position the brand occupies in the mind of the customer and how

it differentiates the brand from the products of its competitors To position products or brands, companies may emphasize the distinguishing features of the brand (what it is, what it does and how, etc.) or they may try to create an image appropriate (cheap or premium, convenience or luxury, mid-range or high-end, etc.) through the marketing mix.Once a brand has gained a solid footing, repositioning it can become difficult

According to the most widely used demographic classification in the world, we have three generations that make up the majority of the world's population today

Generation X

Those born before 1981 (from 35 to 50 years old), most have families and stable income Generation X people are especially concerned about food quality and good health for themselves and their families

With Generation X having children, it's always a top priority, and some of their decisions are also influenced by their children's preferences For example, many parents do not like coffee with young children but still go to a coffee shop with a large space because

children like to play

Generation X is not too picky about technology, so cafes that create a sense of idyllic, close and traditional will attract them more Due to limited exposure to digital media, they often rely on the advice of friends and are quite loyal to familiar eateries

The focus of Generation X is often on food quality and service style

For people with high incomes, the problem of serving customers in the restaurant is even more stringent

Generation Y

Generation Y is the people born between 1981 - 1994, is the main target group that most restaurants and cafes This is a group of working age, with a moderate to high income andable to start earning

The personality traits of Generation Y have both traditional and modern values They value family values but also integrate into the community and friends They choose to eatout with family or work with partners, happily gather with friends.

Born in a more developed country, Generation Y is not afraid to try new things and they are open to embrace new trends For them, work is not necessarily in the office but in the coffee shop

Criteria for evaluating restaurants and eateries belonging to Generation Y often focus on service experience, quality and price

Generation Z

Born from 1995 to 2000, Generation Z is the customer group that many modern food service business models are targeting This is the generation born in the digital age and has access to a wide range of information and trends They often choose restaurants and cafes to meet friends more than at home or school

Generation Z loves to experiment with new foods, especially fast food and bubble tea In addition, these young people also like shops with foreign elements

The ability to adapt and change quickly makes Generation Z less loyal and stick with a particular brand for a while They are easily influenced by trends and trends from the community and friends For Generation Z, price and experience are two of the top

priorities

Mobile is a “distraction” for them, so this is where brands should focus They also love experimenting with new technologies such as discount codes or online ordering

Looking at the above labor statistics in terms of population, age, and gender is an analysis

of Vietnamese coffee tastes It can be seen that the object that Trung Nguyen wants to target is:

The working class is 25-64 years old

Have a stable source of income

Good knowledge of coffee and traditional taste

Quiet space, beautiful view and long-standing brand

A good place to discuss with your partner or meet family

2/ Brand positioning

Regardless of domestic giants or global brands, Trung Nguyen has surpassed and

maintained the number one position in the market for many years with an average growthrate of 200%/year and set a target of 1 billion USD in 2016 To do that, Trung Nguyen is involved in all aspects of the global coffee value chain and focuses solely on coffee's coredevelopment However, the real strength of "Trung Nguyen" stems from the first four strategic factors

No.1 Roasted Coffee – Trung Nguyen

This is the leading brand in the coffee roasting segment with 10 million / 17 million Vietnamese households choosing to use Trung Nguyen

On average, each household has 2 adults using coffee, the number of consumers drinking Trung Nguyen ground coffee at home is 20 million people, accounting for about a quarter

of Vietnam's population

The number 1 coffee shop chain

With more than 2,500 Trung Nguyen coffee shops and 10,000 coffee shops selling Trung Nguyen coffee, no brand surpasses Trung Nguyen on the chain In addition, Trung

Nguyen is shaped as a space promoting creative power, different from Starbucks the Highland or other coffee chains consider coffee as a stopover, coffee as a drink With Book Coffee Space, Saturday Coffee or Creative Youth Association, Coffee Village… Trung Nguyen is loved by intellectuals and creative lovers and chosen as a destination

No 1 instant coffee – G7 instant coffee brand

After the event was chosen by 89% of customers compared to 11% of Nescafe selected inthe blind test on the first day of launch, quickly from a new player to the No 1 position inthe North market and No 1 in Vietnam since 2012 Up to now, Nescafe, the world's No 1global brand, only ranked 3rd in Vietnam, has to constantly change its product

localization strategy, messages and means

No.1 Leadership Coffee

Not only focusing on developing product brands, Trung Nguyen is known as the leading enterprise in projects and plans to develop Vietnam's coffee industry, proposing 4

principles of multilateral cooperation and 7 initiatives for global coffee industry

partners coffee mix The group operates the Trung Nguyen Legend coffee chain in the mid- and high-end segment, currently has 80 locations (60% self-operated and 40% franchised) and an existing E-Coffee retail system in the low-end segment with 800 existing locations points (95% according to the 0 dong franchise model)

In order to continue to promote the idea of making coffee a "philosophy", Trung Nguyen Legend develops a model of the Coffee World flagship store, where customers can learn about the Trung Nguyen coffee ecosystem, in which There are new product lines,

carrying messages promoting "a mindful lifestyle" such as zen coffee, with spaces and tools dedicated to meditation In addition to the three domestic locations, next September will have one more location in Shanghai

Trung Nguyen Legend is one of the rare Vietnamese businesses that builds a brand

through many enduring activities, with stories revolving around products and culture, creating a community that believes in business values industry is aiming for From the very beginning, Trung Nguyen (the name before it was transformed into Trung Nguyen Legend in 2015) has been associated with the spirit of entrepreneurship, with events that enhance the image and value of Vietnamese coffee - the exporting country The second largest Robusta coffee exporter in the world, after Brazil

6 Key Resources

Suppliers are the first important link in the supply chain of each business, they provide input materials for the production process, thereby affecting the quality and price of output products For Trung Nguyen, coffee beans are the main raw material Trung

Nguyen selects from 4 areas of the best ingredients: Robusta coffee beans from Buon Ma Thuot, Arabica beans from Jamaica, coffee from the original homeland of Ethiopian coffee, Brazil With the advantage of being located right on the coffee capital of Vietnam,Trung Nguyen has many advantages in purchasing raw coffee The company has 2 forms

of purchasing, namely purchasing through private enterprises, traders and purchasing directly from farmers

the company has found a new direction for input materials, which is to invest and directlymanage the farmers' coffee farms, turning coffee farms into a part of the business, therebyhelping the company to be proactive in strategic raw materials, contributing to

strengthening the relationship between businesses and coffee farmers

Trung Nguyen Company also has packaging suppliers such as Phuong Nam Packaging Trading Production Co., Ltd., Vietnam Packaging and Ink Company Vinapackink

Company provides machinery and equipment for Trung Nguyen: Neuhaus Neotec

company - the world's leading coffee processing equipment manufacturer in

Hoykenkamp - Germany

7 Key Activities

7.1 Coffee processing of Trung Nguyen

Trung Nguyen's business activities have 3 main segments including Business - coffee processing, retail and franchising

Trung Nguyen Coffee Company in Dak Lak has a charter capital of 500 billion VND, manages Buon Ma Thuot Coffee Factory specializing in processing coffee beans, roasted coffee beans

Trung Nguyen's G7 instant coffee products are produced in one of three factories,

including the factory in Di An (Binh Duong) and Bac Giang under the management of Trung Nguyen Instant Coffee JSC and the Coffee factory Saigon Coffee in My Phuoc (Binh Duong) is owned by Trung Nguyen Group Joint Stock Company

Saigon Coffee Factory was acquired by Trung Nguyen from Vinamilk in 2010 and is currently Trung Nguyen's main factory

Besides the production and trading of instant coffee and green coffee, Trung Nguyen has another big business, which is franchising

Trung Nguyen Franchising Joint Stock Company with charter capital of 100 billion VND and also managed by Mr Dang Le Nguyen Vu Trung Nguyen Franchising has the role ofmanaging franchise operations of Trung Nguyen coffee shop chain

According to Trung Nguyen's website, the franchise system currently includes more than

50 stores in 7 provinces and cities across the country and 1 store in Singapore

7.2 Difficulty with the retail sector

In addition to the main areas directly related to coffee, Trung Nguyen also has a number

of investments in other areas such as retail, tourism

Trung Nguyen has tried many times in the retail sector but has not achieved satisfactory results In 2006, Trung Nguyen launched the G7 Mart retail system with 500 stores Dang

Le Nguyen Vu's goal is to attach the G7 Mart brand to 10,000 stores - making Trung Nguyen the biggest force in the retail industry

However, the surrounding difficulties made G7 Mart almost "missing" from the market After realizing that G7 Mart could hardly compete in the market, in 2010, Trung Nguyen cooperated with Ministop (a member of Aeon-Japan) to establish G7-Ministop Trading and Service Joint Stock Company with the goal of opening 500 store for 5 years

However, the outcome in this cooperation is still a failure Recently, Ministop terminated the cooperation contract with Trung Nguyen, and shook hands with Sojitz, raising the target to 800 retail stores within the next 10 years

7.3 Hidden Number Trung Nguyen Investment

In addition to failed investments in the retail sector, Trung Nguyen also expanded into thetourism sector when establishing Dang Le Tourism Investment Company with a charter capital of VND 98 billion This company operates in the field of tourism and travel and currently owns the first 3-star Coffee Tour Resort in Buon Ma Thuot

The main shareholder of Dang Le company is Trung Nguyen Investment Joint Stock Company, an enterprise with a capital scale of nearly 3,200 billion VND According to the data we have, all over 3,200 billion dong of Trung Nguyen Investment's assets are invested in its subsidiaries

And it is not excluded that Trung Nguyen Investment was established to become the parent company of Trung Nguyen Group

8 Key Partnerships

Mass Design Group and Trung Nguyen Legend have come up with an appropriate school architectural design plan with educational methods filtered from the best educational backgrounds in the world The two school facilities in Coffee City are the first works of aprivate corporation agreed to design by Mass Design Group, all other works this

organization work with the government and Foundation organizations world such as the Bill & Melinda Gates Foundation

In addition to Mass Design Group, Trung Nguyen Legend also introduced and announcedmany other partners such as: OSHO living belongs to OSHO Group, is the construction unit of high-class works & is the exclusive distributor of Sonder Living - the brand

luxury furniture brand from the United States, famous for its designer names, chosen by top stars in the world such as Elton Johns, Lady Gaga, David Beckham ; Viettel - a

partner to deploy and build telecommunications technology infrastructure with the goal

of building the first smart city of the Central Highlands; Duravit - a unit with a history and prestigious brand name of more than 200 years from Germany, providing sanitary equipment and bathrooms; CBRE is the management and operation unit… All for the purpose of creating a city of a lifetime, of international stature

9 Cost structure

The cost structure of Trung Nguyen Cafe mainly includes fixed costs such as

management costs, storage costs and store operations There are also the costs of

marketing distribution facilities Another major cost is usage cost, which is variable costTrung Nguyen cafe has been interested in reducing costs associated with coffee bean handling as well as its operations in its stores around the world In an effort to curb the increasing price of coffee in the market Trung Nguyen has adopted contracts and

hedging to achieve the set targets The purchase contract is the most important aspect as

it ensures the coffee from the suppliers gets into their retail stores under the fixed price commitment That means Trung Nguyen will not feel short-term price fluctuations due to fixed prices in the market

Trung Nguyen is a large enterprise and this makes them incur high costs to meet a large number of employees to serve the market, the cost of salaries is huge In addition, they use a variety of resources to train and guide their employees to acquire the skills and expertise needed to provide professional services to their clients

VI SWOT ANALYSIS

Strength

1) Having the advantage of home turf and being able to touch consumption habits (drinkingcoffee in the morning, in meetings…), culture and national spirit, the mentality of

“Vietnamese people use Vietnamese goods”

2) Trung Nguyen has a great advantage in terms of raw materials for coffee production because Vietnam is the world's largest coffee exporter

3) Modern technology, separate production lines, good products, and typical flavors, highlyappreciated by consumers

4) Trung Nguyen has a wide distribution network with more than 1,000 stores across the country Trung Nguyen brand is also present in famous commercial buildings and office buildings, increasing brand recognition

5) Strong financial resources help Trung Nguyen firmly pursue long-term business

strategies to overcome competitors

1) Not much experience in foreign cooperation Franchising rushed, inconsistent

2) Trung Nguyen has not spent a lot of budget on advertising as well as promoting the brand

3) The price is not really affordable and suitable for all classes of customers

4) The constant change in the system of signs, colors, designs, and packaging makes it difficult for consumers to recognize the brand

5) Market expansion in some areas is still limited

Opportunity

1) Increasing demand for coffee at home and abroad (Japan, China, etc.)

2) Nowadays, consumers are more and more interested in products that are both healthy and environmentally friendly

3) Vietnam is on the way to developing deep international economic integration, which is a condition for businesses to develop and improve technology and technology

4) The support from the government, contributing to increasing the value of coffee beans helps to improve people's lives as well as protect the interests of coffee businesses.5) With the brand advantage, Trung Nguyen may have the ability and opportunity to attract more capital, strengthen cooperation with countries in Asia, especially Japan and China

Threats

1) Vietnam's economy is quite unstable and economic growth is often accompanied by inflation Therefore, Trung Nguyen can hardly have options to adjust prices, as well as control the source of raw materials needed to produce coffee

2) Operating in an integrated economic environment, Trung Nguyen coffee is facing stiffer competition from domestic coffee brands such as Vinacafe, Highlands Coffee, and The Coffee House to foreign countries such as Starbucks, Nestle,

3) A part of Trung Nguyen's coffee supply also comes from spontaneous and small coffee production and processing establishments and from households, so the price of raw materials is unstable

4) Street coffee culture in Vietnam is difficult to change, psychology and culture are

obstacles for high-end coffee chains

5) Currently, consumers prefer ready-to-drink cans because of their convenience

Strategic analysis

Trategy S-O

-S(1,4,5) và O (1,5): Market development strategy

Expand or open more branches in good locations, develop brand identity with many activities to attract domestic and foreign customers

-S(2,3) và O(1,2) : Product Development Strategy

Develop new products to protect the environment and invest in sustainable

development projects to diversify customers In addition, Trung Nguyen needs to remove saturated products along with researching exclusive products or seasonal products to increase customer experience

Trategy W-O

-W(2,4) và O(1,3,5) : Effective marketing strategy, helping domestic and foreign

customers to recognize and choose suitable products

-W(1) và O(1,3,5) : Market development strategy

-Concretize franchising activities, disclose details, set uniform standards, tighten

management to attract more investment sources from abroad

-W(3) và O(3,5) : Product diversification strategy

Calling for investment capital from abroad to improve and create low-cost product lines with low production costs in line with the needs of consumers who care about prices and are more suitable to the average income of people in Vietnam

-S(1,2,3) và T(5): Product diversification strategy

Trung Nguyen is able to compete with Nestle, Birdy, and VIP brands if it launches a new line of ready-to-drink coffee The product diversification strategy is also a way

to expand the market for the Trung Nguyen brand

-S(1) và T(2): Price discrimination strategy

Trung Nguyen can use this strategy to set a price for each time

Trategy W-T

-W(3) và T(2): Backward integration strategy

Merge or create a separate supply chain for coffee cultivation to ensure stable and balanced raw material costs, to save costs and add costs to marketing

CHAPTER II MARKETING STRATEGY

II.I S-T-P STRATEGY OF TRUNG NGUYÊN

1 Segmenting

Market segmentation by geographical location

On average, Vietnamese people consume 1.25 kilograms of coffee per year and the

amount of money people in the country spend on a cup of coffee is about 9,000

VND/person/year Most regions in Vietnam consume coffee, but the difference is huge between regions While the South Central Coast and the Mekong Delta are major coffee consuming areas, the Northwest, Northeast and Red River Delta consume very little, eventhe Northwest region consumes almost insignificantly with 30 grams/person/year

Between the two main central areas are Hanoi and Ho Chi Minh City:

+ The taste of coffee is also different between the two cities: Saigon people drink the most powdered coffee with 38%, followed by filter coffee with milk added with 27% and20% drink instant coffee In Hanoi, up to 67% drink instant coffee

+ The number of times people buy coffee in Ho Chi Minh City is also higher than in Hanoi Up to 12% of people in Ho Chi Minh City buy coffee to drink several times a week and 40% buy and drink several times a month, while in Hanoi, only 0.6% of coffee buyers drink it several times a week Coffee consumption in Ho Chi Minh City increased

by 21%, lower than Hanoi with 25%

Urban people buy coffee to drink up to 2.4 kilograms/year, 2.72 times more than rural people, and the amount that urban residents spend for a cup of coffee every morning is up

to 20,280 VND / year year, 3.5 times higher than in rural areas

Hanoians drink according to the season, during Tet, they drink more According to

statistics: Hanoi consumes mainly in winter (31%) and Tet holiday (62%) and Ho Chi Minh City consumes mainly on Tet holiday (84%), but most of them do not consume differently according to Seasonal and almost year-round drinking (only 16% of seasonal difference in consumption)

Trung Nguyen Coffee mainly focuses its store system on big cities with densely

populated areas such as Ho Chi Minh City, Hanoi, Hai Phong, Da Nang In which Trung Nguyen Coffee has 1 cup choose for themselves two key markets: Hanoi and Ho Chi Minh City This market segmentation represents the overall view of Trung Nguyen