THE STP STRATEGY ANALYSIS OF TRUNG NGUYEN COFFEE 14STP in Marketing.... In just five years,from a small factory in Buon Ma Thuot, Trung Nguyen has been present in allparts of the country
Reason for choosing the topic
With an increasingly developed era like today, the world has proven that coffee has really become an industry with a total global transaction value of $80 billion, second only to oil in value It has surpassed gold, silver, gems, and petroleum to become the most speculative commodity This industry has expanded and now includes elements of finance, trade, investment, tourism, culture, knowledge economy, ecotourism, coffee tourism, etc Trung Nguyen Coffee has been a miraculous success of branding in Vietnam in recent years In just five years, from a small factory in Buon Ma Thuot, Trung Nguyen has been present in all parts of the country Trung Nguyen has made the most spectacular market entry in the history of Vietnamese branding But to transform itself from a big "coffee pot" in the world into a Vietnamese power in the world coffee industry is still a big challenge for all What strategies has Trung Nguyen implemented to be able to compete with coffee giants in Vietnam such as Vinacafe, Nescafe, or Starbucks? Therefore, our group decided to research "Analysis of marketing strategies of Trung Nguyen Coffee Enterprises" to find out what makes this brand so popular in terms of consumption as well as marketing.
Research Objectives and Tasks
The purpose of our group studying this topic is to clearly analyze the marketing strategies of Trung Nguyen Coffee enterprises.
Research objective and scope
3.1 Research object: Marketing strategies such as Marketing Mix and STP strategies (products, prices, distribution channels, targets of Trung Nguyen), the marketing environment of Trung Nguyen coffee
3.2 Research scope: Although Trung Nguyen's long-term strategy is to reach out and cover the world, the team will condense the research by focusing on the strategies that Trung Nguyen has, is, and will aim to implement in the market market in Vietnam in the future, as well as some issues that need to be addressed to improve and help the brand grow.
Methodology of Research
In the process of researching and presenting the essay, the group used basic research methods such as systematics, generalization, analytical, and synthesis methods to clarify the problem.
Research results
The completed essay has errors in presentation, reasoning, and limitations of knowledge, but the members are still happy and proud of having completed the article according to the set goals, along with the completion of the essay They have the opportunity to learn from each other and work in groups The team would like to sincerely thank her for her dedication to imparting useful knowledge to help us complete the assignments on time and effectively.
Structure of the topic
The research topic consists of 5 chapters.
CHAPTER 1: TRUNG NGUYEN COFFEE INTRODUCTION
CHAPTER 2 : ANALYSIS OF TRUNG NGUYEN COFFEE'S MARKETING
CHAPTER 3 : ANALYSIS OF THE STP STRATEGY OF TRUNG
CHAPTER 4: ANALYSIS OF TRUNG NGUYEN COFFEE'S MARKETING MIX STRATEGY
CHAPTER 5: DIFFICULTY IN TRUNG NGUYEN'S COFFEE BRANDDEVELOPMENT AND SOLUTIONS
INTRODUCTION OF TRUNG NGUYEN COFFEE
History of formation and development
• June 16, 1996: Starting a business in Buon Ma Thuot (Producing and trading tea and coffee)
• 1998: Trung Nguyen appeared in Ho Chi Minh City with the slogan "Bringing new creative inspiration" and the number of 100 Trung Nguyen coffee shops.
• 2000: Marked the development with a presence in Hanoi and the first time at a franchise to Japan.
• 2001: Trung Nguyen was present throughout the country and continued to franchise in Singapore and followed by Cambodia, Thailand.
• 2002: Tra Tien product was born.
• 2003: Launched G7 instant coffee and exported G7 to developed countries.
• 2004: Opening more Trung Nguyen coffee shop in Japan, a network of 600 coffee shops in Vietnam, 121 distributors, 7000 points of sale and 59,000 retail stores.
• 2005: Inaugurated a roasting plant in Buon Ma Thuot and the largest instant coffee factory in Vietnam in Binh Duong with a roasting capacity of 10,000 tons/year and instant coffee of 2,000 tons/year.
• 2006: Shaping the structure of a corporation with the establishment and operation of new companies: G7 Mart, Nam Viet Media, Vietnam Global Gate Way.
• 2007: Announced the coffee philosophy and launched the project "Global Coffee Capital" Buon Ma Thuot.
• 2008: Opening a new franchise system in Vietnam and inaugurating Trung Nguyen Coffee Village in Buon Ma Thuot.
• 2009: Opened Trung Nguyen Creative Club in Hanoi, invested over 40 millionUSD to build a coffee processing factory with the most modern technology in the world in Buon Ma Thuot.
Vision and mission
- Vision: To become a forum to promote the rise of Vietnam's economy, maintain the national economic autonomy and arouse and demonstrate a desire for Dai Viet to discover and conquer.
- Mission: Create 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.
Core values and beliefs
- Develop strong human resources - Take efficiency as the foundation
- Coffee makes the world a better place.
- Coffee is the energy for the knowledge economy.
Coffee brings creativity, harmony and sustainable development to mankind.
ANALYSIS OF THE MARKETING ENVIRONMENT OF TRUNG
Micro environment
1.1.Factors and forces inside the enterprise
- Currently, Trung Nguyen Group has about 2000 employees working for Trung Nguyen Joint Stock Company (HCMC), Trung Nguyen Coffee Joint Stock Company (Buon Ma Thuot), Trading & Service Joint Stock Company G7, Trung Nguyen coffee factory (Buon Ma Thuot), Trung Nguyen instant coffee factory (Binh Duong) Trung Nguyen branch in Can Tho, Buon Ma Thuot, Da Nang, Hanoi, Trung Nguyen branch in Singapore In addition, Trung Nguyen also indirectly creates jobs for more than 15,000 employees through the chain of coffee shops across the country.
- The management team of Trung Nguyen Group is mostly young people, well- trained, along with experienced consultants working in foreign corporations A team of experts, leading strategic consultants in the world, are planning with Trung Nguyen for the goal of conquering the world market Trung Nguyen Group's staffs are always given the best working conditions to be able to learn, develop their abilities and dedicate themselves with the spirit of "commitment - responsibility - honor".
- 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 two forms of purchasing, which is through private businesses, traders and directly from farmers.
1.3 Competitors: There are 4 levels of competition:
The first is desired competition
- The second is competition for utility: Including enterprises that produce different types but satisfy the same need: refreshment needs (tea, soft drinks, mineral water), entertainment needs (tea, ginseng),…
- The third is competition between brands
- Fourth is competition for the same product: Trung Nguyen's biggest competitors are Nescafe, besides Vinacafe, and Moment.
- Nestle's Nescafe (100% foreign owned enterprise): Having the advantage of a multinational corporation G7 of Trung Nguyen: Experience in the field of coffee roasting and franchise system And recently, there's also Moment of Vinamilk: With a nationwide distribution network of centipedes.
- With the main product being coffee, Trung Nguyen has taken advantage of both traditional and modern distribution methods to achieve the greatest results. a Traditional distribution system
- With the traditional distribution system, the finished product will be distributed to distributors, retail supermarkets (BigC, FiviMart, Co.op Mart, ), retailers, and then to consumers final consumption Trung Nguyen has developed a wide distribution system, making the company's products always available to customers The company has established a system of 121 distributors, 7000 sales points and 59,000 retail stores nationwide and in many countries around the world Some examples of Trung Nguyen's distributors are: Blue Way Joint Stock Company, Joint Stock Company Ngoc Ha Trade and Service,… b.Modern distribution intermediaries
- First, G7 Mart system: This is the first franchised retail system in Vietnam, with
200 suppliers for the entire G7 chain of stores across the country The most prominent feature of G7 Mart, according to Trung Nguyen's vision, is to meet the small and retail shopping habits of Vietnamese people and often buy close to home - Second, the supermarket system: Through the above analysis, we see that Trung Nguyen uses a vertical distribution channel for its distribution system.
- Third, the flow in the distribution channel: The distribution of goods will not follow the old way If before, each manufacturer had its own distribution channels, now G7 distribution centers will be the focal point to supply goods for the entire G7 Mart distribution system including standard G7 Mart stores and member stores This way will reduce costs, reduce many intermediaries and as a result, consumers will benefit because product prices will be reduced.
- Fourth, Trung Nguyen was the first company to apply Franchise to Vietnam since 1998, only two years after appearing on the market Currently, the Company maintains a Franchise system including more than 1,000 coffee shops throughout Vietnam and 8 stores abroad such as: USA, Japan, Singapore, Thailand, China, Cambodia, Poland, Ukraine There is no denying the benefits that franchising brings to Trung Nguyen in terms of economy as well as brand.
- With such a wide distribution system, Trung Nguyen has been present in 63 provinces and cities, over 50 countries around the world and promises to continue reaching further.
The public is a group of people who have an actual or potential interest in and influence on a company's ability to achieve its objectives Following are the public activities that Trung Nguyen coffee company has carried out:
+ Firstly, exploiting the ability to advertise on the social network Facebook, Facebook is the largest social network in the world with a huge number of users. + Second, Trung Nguyen collaborated with Thanh Nien newspaper and Vietnam Youth Union to launch the program "Creating for Vietnamese Brands".
+ Third, Trung Nguyen and Vietnam Television established the Investment Fund "Initiating Creativity" to finance the winners of the VTV3 Startup program. + Fourth, Trung Nguyen also cooperated with Thanh Nien 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.
+ Fifth, Trung Nguyen sponsored the program "Connecting big arms" for the poor organized by Hanoi Moi Newspaper, Saigon Giai Phong newspaper, and Da Nang newspaper from June to July 2004 At the same time, in the chapter In this program, Trung Nguyen donated 1 billion VND.
+ Friday, participate in supporting Vietnamese Agent Orange victims in the humanitarian program "We are not emotionless" of Vietnamese television: 10 million VND.
+ Saturday, support the charity program "Connecting the heart" to perform heart surgery for children with congenital heart disease in difficult circumstances of the
Ho Chi Minh Red Cross: 40 million VND.
- In terms of micro factors, the company needs to carefully study its customers. There are generally five types of customer markets All of these markets are presented below as brief definitions of them.
+ First, the consumer market: people and households that buy goods and services for personal use.
+ Second, the producer market: organizations that buy goods and services to use them in the production process.
+ Third, the market for intermediate wholesalers: organizations buy goods and services to then resell for a profit.
+ Fourth, the market of state agencies: organizations that buy goods and services for later use in the field of public services or deliver those goods and services to those who need them.
+ Fifth, the international market: overseas buyers include consumers,intermediaries and state agencies abroad.
Macro environment
- The political situation of most countries is stable and the world economy is increasingly developing towards cooperation, stability and mutual investment.
- However, the world demand in the past, present and future all needs high quality coffee products, coffee is processed more deeply, more diverse.
- Coffee is protected by the State's interests and trademarks, facilitated by the State to support product prices and exported to foreign countries Vietnam's political system is stable and safe, bringing peace of mind and psychological safety to foreign investors when participating in the Vietnamese market The policy of expanding the market thus creates favorable conditions for Trung Nguyen coffee to reach many customers The legal document system of Vietnam is gradually being revised and improved The State promulgates laws on copyright protection, anti-counterfeiting, imitation goods, poor quality goods, mutual protection against monopolistic behavior, disputes over the rights and interests of enterprises, and protection of Vietnamese coffee's interests in the market school.
- With the accession to WTO, Vietnamese coffee is having a remarkable transformation Trung Nguyen is no longer known only in the country but also abroad.
- Vietnam's economy is in the period of integration and development, so people have high incomes, so the demand also increases This is a condition for the company to develop, able to create many products to meet the needs of the market Joining the WTO and becoming an official member of the World Coffee Association (ICO), has created opportunities for Vietnamese businesses to approach and find coffee export business partners in the world market With the support of the government, it is easier to have a strong financial background to regulate prices and compete with competitors.
- However, in recent years, the inflation situation in our country is also a big challenge for products on the market, including coffee When the unemployment rate is high, the price of goods is escalating but the basic salary of people has not increased, the price challenge is also an important issue of the company before the strategy set on the number of products consumed.
- Advantages: The highland is large, fertile soil, especially the Central Highlands, with the advantage of three zones of red soil suitable for growing industrial crops, this is an advantage to grow coffee with high quality and output abundantly meet the production needs of the company Helps reduce product costs.
- Disadvantages: With the climate of Vietnam, tropical humid monsoon with severe weather conditions, droughts, floods and diseases easily thrive and abnormally affect the quality of coffee unsatisfactory The demand for quality and quantity, greatly affects the coffee production process.
- The rapid development of science and technology In recent years, the State has focused on infrastructure issues, increasing construction, improvement and upgrading Trung Nguyen pays great attention to research, selects modern coffee processing technology from leading technology countries such as Germany, Denmark, Italy and combines leading international consultants to select the best technologies However, there are still technologies that cannot be applied in Vietnam due to high costs, so they must be imported from abroad, which is costly and cannot take full advantage of the abundant and capable labor resources available in Vietnam Vietnam.
- In the era of cultural integration, new trends are gradually changing some lifestyles and concepts of Vietnamese people and coffee is one of them, coffee is more and more popular and popular with Vietnamese people Therefore, this is an opportunity for the development of Trung Nguyen.
- Trung Nguyen has an outstanding position that is located right in Buon Ma Thuot, the hometown of coffee Therefore, it is easier for Trung Nguyen to create cultural similarities with coffee's raw material suppliers This is Trung Nguyen's strong point and an advantage when Trung Nguyen builds its image and brand.
- In terms of population size: Vietnam is a country with a very large population, the population as of July 2008 according to the statistics of the population department, the population of Vietnam has reached 86.5 million people and ranks first in the world 13th in the world Vietnam's population growth rate reaches over 1 million people a year The large population size and high population growth rate of Vietnam mean that the domestic market size of Trung Nguyen coffee has many opportunities to expand, the market size of many types of products also increases.
- Vietnam's population structure has changed, this is the determining factor for potential customers of businesses Vietnam has a golden population structure (the number of people of working age is more than the number of dependents.), there are 50 - 60% of the population under the age of 35 with great opportunities to increase income due to domestic economic policies and the impact of international integration In particular, young people often change their shopping habits and consumption preferences This is an important factor for Trung Nguyen coffee to be stimulated to develop more and more Not to mention that young people are people who drink coffee a lot, coffee contains caffeine to keep the mind awake and prevent drowsiness, so the meaning of the slogan "Inspire creativity" expresses the expectation: The side of the cup of coffee Trung Nguyen consumers always have many new ideas, creative ideas to create success for themselves, their families and the prosperity of the country Therefore, most of Trung Nguyen coffee's marketing decisions are targeted at young people and offices due to their high demand for coffee For coffee products, regardless of gender or education level, consumers can use them.
- The geographical issue also shows where Trung Nguyen coffee will promote its products first It is impossible to ignore the area where people use less coffee, this is a potential market that has not been exploited much, conquering this market and changing people's coffee drinking habits will create a breakthrough for the country products of Trung Nguyen.
=> Through the analysis of two factors of the marketing environment, we see that, marketing managers need to analyze groups of macro-marketing environmental factors to identify new development trends of the market,opportunities and challenges company in the product market At the same time,the combination of analysis of factors in the micro-marketing environment helps businesses assess the needs of the market, the movements of competitors to make important decisions to help businesses survive and develop in today's dynamic business environment.
THE STP STRATEGY ANALYSIS OF TRUNG NGUYEN COFFEE 14
Segmentation
Market Segmentation is the progress of dividing the Overall Market into different groups based on the demand of preferences and behaviors It is a basic first step of Target Marketing Market Segmentation creates a detailed knowledge about the market for enterprises, as well as supports them to decide their Target Market accurately and efficiently.
In the beginning of running a business, Trung Nguyen Coffee followed this step in order to select a target market and market positioning Trung Nguyen’s market is a Consumer Market which segmented according to these following criterias:
- On average, Vietnamese people consume 1.25 kg of coffee per year (9,000 VND/a cup of coffee) Several regions in Viet Nam consume coffee, but the consumption of each provinces is different The consumption of coffee in South Central Coast and Mekong River Delta reach the highest amount, contrast to the one in Northwest, Northeast and Red River Delta And only 30 grams per person per year in Northwest region In the centre areas of economy, Ha Noi and Ho Chi Minh city:
The taste of coffee in these two areas is also different While Saigonese consume 38% of powdered coffee with filter coffee, followed by filter coffee with milk added with 27% and 20% drink instant coffee; a number of people in Ha Noi drink instant coffee is 67%.
Also, it is clear that the proportion of buying this product in Ho Chi Minh city is higher than in Ha Noi (12% and 0,6% per week respectively).
However, the figure of consumption of coffee in Ho Chi Minh city is 21% which is lower than in Ha Noi 25% due to the season of the year For example, the number of consumption coffee in Ha Noi reach the peak on winter season and Tet holiday (31% and 62%) Meanwhile, 84% only happened when people in Ho Chi
Minh city drink coffee on Tet holiday and no difference in other season.
- Regarding to income: Viet Nam is a developing country with a low income compared to other countries Trung Nguyen coffee focuses on people who have high salary and stable income One interesting thing is that people in Saigon consume more or less coffee not because their income is high or low, but in Hanoi, the higher the income, the more they drink People with a high salary or low income can also become customers of Trung Nguyen Coffee, but the level of low income consume its product may not be regular.
- Regarding to profession: Ho Chi Minh people drink coffee at all levels While business people drink the most with 26.3%, retirees drink the least.
- Coffee consumption in Vietnam is very diverse The taste of Vietnamese coffee is especially strong, comparable, and fragrant.
- While a number of people in Ha Noi drink instant coffee is 67%, Saigonese consume 38% of powdered coffee with filter coffee, followed by filter coffee with milk added with 27% and 20% drink instant coffee.
In the household: Coffee is purchased for household consumption and a special gift for others
Outside households: Agencies and businesses usually buy coffee for the purpose of serving the work or daily needs of employees
- Seeking benefits: Coffee has become the most popular drink in the world after ordinary drinking water, it shows the positive and comprehensive effects on human health such as limiting diseases: Cardiovascular disease, cancer, gastric and duodenal ulcers, osteoporosis, gallstone disease, asthma, reduced risk of Parkinson's disease, etc.
- Usage habits: 65% of Vietnamese coffee users drink coffee 7 times a week, learning towards men 59% Speaking of instant coffee, 21% of consumers use it
3 to 4 times a week and it slightly lean towards female consumers (52%) The rate of using coffee at home and outside is equal 49-50% And the most popular time to drink coffee is from 7-8 am.
Targeting
- After segmenting the above market, Trung Nguyen Coffee chooses the target market to specialize according to the strengths and potentials of the business. Trung Nguyen Coffee specializes in coffee production and now holds a large share of the market (about 30.8%).
-Adolescent age: has the fastest increase in coffee consumption in both powdered and instant coffee.
- Young and middle-aged: has the highest consumption They use instant coffee and even premium coffee.
- Old age group (>65): the consumption of coffee increased very little, mainly powdered coffee.
- Men: usually use aromatic coffees, so, there are some products for men such as strong, delicious black coffee which should be quick and convenient.
- Women: they love coffees with aroma, bitter taste, strong, compare, help with light aroma, slightly bitter taste or refreshing and sober spirit used with milk, so there are products for women: caffeine content suitable to meet the taste of light coffee, with collagen, vitamins, herbs,…
Positioning
- To begin, Trung Nguyen has tocreat a specific image for products and brands in the minds of customers Trung Nguyen Coffee was established in 1996, and was th3e first company to do franchise business with hundreds of thousands of coffee shops spread across the land Trung Nguyen has brought to coffee lovers a very unique style of enjoying coffee, bearing the Vietnamese cultural identity, the quintessence of humanity with the slogan "inspired creativity”.
- Next, choosing the position of products and businesses in the target market.
When entering the Vietnamese market, Trung Nguyen Coffee has to face some traditional products such as: Nescafe (55.95% market share), Vinacafé (38.45%), the remaining 5.6% goes to other coffee brands.
- Last but not least, create a difference for products and brands in marketing activities is an extremely important step for any company, especially Trung Nguyen Here are some recommendations that a company should do to make differences:
Create a difference for physical products
Make a difference for the service
ANALISIS MARKETING MIX STRATEGY
Trung Nguyen's product strategy (Product)
To become a leading coffee brand is a difficult thing, but it is extremely difficult to maintain that brand in the market while competing with many other famous brands difficulties and challenges As we all know, Trung Nguyen was born based on the recklessness and daring of a young dare to think and do And now to be able to stay firmly in the market with the product I have created, Trung Nguyen once again boldly accepted the challenge, ready to face his strong competitors By properly handling the strength of the competition and finding strengths and differences to create an advantage for yourself Trung Nguyen has constantly developed as well as updated the trend of offering a series of products that are suitable and meet the needs of consumers.
Trung Nguyen always focuses on the quality and taste of coffee Starting with a
"free coffee" shop in Ho Chi Minh, Trung Nguyen has applied the tactic of
"personalization" by letting customers learn about the difference of different types of coffee: Robusta coffee, Arabica coffee, Weasel coffee,
1.1 Trung Nguyen Coffee includes the following product lines: a Premium Trung Nguyen Coffee:
- Trung Nguyen Legend Weasel Coffee
- The high-end product line of Trung Nguyen coffee is very popular In which, creative Trung Nguyen coffee 8 is a breakthrough product This product is the only coffee roaster that stimulates creativity, stimulates brain activity This is a masterpiece selected from premium Robusta and Arabica coffee beans From the world's best ingredients from Brazil, Jamaica, Ethiopia and Vietnam Creative Coffee 8 is an unprecedented combination of the past, between the top production technology of the West and the mystery of the mysterious East.
(Source: trungnguyencoffeevn.com) b Coffee Roasters:
- Besides the luxury product line, Trung Nguyen also has a line of roasted and ground coffee products that retain the purest flavor of natural coffee Roasted and ground coffee is processed from Culi beans of 4 types of best Robusta, Arabica, Catimor, Excelsa coffee of Buon Ma Thuot coffee land and in the world Roasted Trung Nguyen coffee is produced by the world's most modern technology and its own secret cannot be copied, bringing an interesting business secret in the coffee business Trung Nguyen's line of roasted and ground coffee has a gentle aroma, rich taste, and is specialized for coffee connoisseurs and coffee shops who want to own a unique coffee taste.
- Trung Nguyen has separate products of roasted and ground coffee, which areChe filter 1, 2, 3, 4, 5 and Creative 1, 2, 3, 4, 5 with common roasting, all with different delicious flavors, but they are all full of charm and fascination for the beholder
(Source: trungnguyencoffeevn.com) c Popular roasting:
- Trung Nguyen has gradually entered the field of instant coffee (3 in 1) with the product G7 has chosen to face directly with strong brands already in the country. This choice has its basis, when Trung Nguyen analyzed the opponent's weakness, which was to disperse resources for many products and be subjective, disregarding the opponent.
- Includes internal, external packaging, transportation, labels stated on the packaging, information on the packaging.
- With diverse designs both in terms of materials and forms of expression, today's packaging no longer provides more information, beyond that, it also creates motivation for consumers to choose products Mr Dang Le Nguyen Vu, boss of Trung Nguyen once said: "packaging is a silent but effective seller" Nowadays, businesses pay great attention to product packaging design, which is an important factor to attract consumers In order to create a breakthrough in packaging image and once again affirm the value of the brand, Trung Nguyen coffee implemented a strategy of launching new packaging products in 2007.
- Trung Nguyen's products all have impressive names according to the operating motto "Inspire creativity", both showing the class of each type of coffee, while expressing creativity and bold character Traditional: Weasel – The King of Coffee, Passiona – Coffee for women, Legendee – Bao sword for heroes, Creative coffee, 2-in-1 coffee – Not strong enough, must be right, G7 3-in-1 – Real instant coffee, Fresh coffee – Coffee juice… are easy to remember, easy to associate and meaningful names In addition to the unique slogans, there are also appropriate illustrations, meaningful and rich in maxims: Weasel coffee – Coffee legend with a stylized image of a weasel, G7 coffee with an image of a weasel fragrant cup of coffee is smoking,
Price strategy of Trung Nguyen coffee (Price)
- Price is an important factor in the Marketing Mix strategy model, especially in developing countries like Vietnam, where people are still very price sensitive. Being aware of that, Trung Nguyen always focuses on keeping the average price in order to have a competitive advantage in the market.
- The prices of Trung Nguyen's products are also very diverse, depending on the type of product and market segment and target customer of that product Besides, Trung Nguyen also has preferential price policies, distinguishing each customer group.
- In the process of Japanese advancement, Trung Nguyen has carefully studied the psychology and tastes of the Japanese In fact, Japan is inherently famous for its traditional art of tea ceremony The Japanese knew about coffee very early (around the beginning of the 19th century), but selling coffee to the Japanese was not easy The Japanese market is a market where consumers demand high standards of product quality (taste, handling, ingredients, ) Trung Nguyen does business in Japan in the direction of franchising Trung Nguyen's franchise agent in Japan has priced each cup of Trung Nguyen coffee 50% higher than Starbucks, 25% higher than domestic products This pricing strategy has helped Trung Nguyen achieve success right in Tokyo on the way to penetrate the international market and is a lever for the development of the franchise system in a series of other countries around the world gender.
- Trung Nguyen still has product lines with outstanding prices, creating a unique position for its brand Specialized coffee is a premium product line with limited production each year, a special gift for true coffee connoisseurs, leaders, ;Therefore, in terms of cost, it is many times higher than other products.
Distribution strategy (Place)
- Distribution is the activities related to the organization, operation and transportation of products, goods and services from the producer to the final consumer, in order to consume quickly and at the lowest cost.
- When it comes to the distribution system of Trung Nguyen coffee, it is impossible not to mention “ franchise ” Marketing Mix strategy of Trung Nguyen coffee has greatly contributed to the success of Trung Nguyen's distribution network In 2006, Trung Nguyen built 500 mini supermarkets named G7 Mart and 70 distribution centers across the country, further contributing to the development of the distribution system Since then, it has developed into a commercial center and a hypermarket Mr Dang Le Nguyen Vu, Chairman of the Board of Directors of G7 Mart Company said: “The goal of the store system is to strongly support the strategy of developing Vietnamese brands and becoming a local distribution system to counterbalance foreign distribution groups” Specific activities towards this goal are:
+ Double the coverage of points of sale: Updated to 2010, Trung Nguyen has
4 roasting coffee factories, 2 instant coffee processing factories across Vietnam, a network of 600 shops coffee in Vietnam, 121 exclusive distributors, 7,000 points of sale, 59,000 product retail stores, 35,000 grocery stores and member stores participating in the G7 Mart project Built 200 distribution centers, 7 trade centers and 7 hypermarkets G7 accounted for 38% of Vietnam's market in 2011, showing the effective level of market control and quality of Marketing activities of Trung Nguyen.
+ Professionalize the quality of customer service to expand the market strongly.
+ Establishing a corporation and expanding into the distribution field to compete with foreign giants in the domestic market: Trung Nguyen has become a group of 10 member companies operating in the field of planting, processing Coffee producers and exporters are: Bac Giang factory, Trung Nguyen Coffee Joint Stock Company, Coffee factory Trung Nguyen,…
+ Besides, Trung Nguyen will develop a domestic distribution channel on the basis of linking wholesalers, including about 100 leading domestic distributors in
- Trung Nguyen is the only Vietnamese coffee brand present on Vietnam Airlines flights, selected to serve in APEC, ASEM, ASEAN Summits, Global Women's Summit, and Miss Earth Land, Miss World, Vietnam - Belgium Association exchange 2009, ASEAN Open Food Day 2010, are popular in more than 53 countries: USA, UK, Germany, Canada, Russia, Paris, Tokyo, Syney, Moscow.
- In 2002, Trung Nguyen Coffee appeared in Japan next to 400 stores out of 6000 stores of Starbucks - America's largest coffee corporation Trung Nguyen roasted coffee is also available in supermarkets and shops in the US, Germany, Eastern
Europe, France and Russia Currently, Mr Dang Le Nguyen Vu is implementing contracts to seek market share for Trung Nguyen Coffee in 15 countries such as Germany, Australia, Canada, Taiwan, Malaysia and the Philippines.
- Franchise system (franchise stores): This is a vertical distribution channel. Trung Nguyen Coffee is the first Vietnamese company to apply the domestic and international franchise business model In just a short time, Trung Nguyen has about 1,000 franchised coffee shops across the country and 8 overseas such as: USA, Japan, Singapore, Thailand, China, Cambodia, Poland, Ukraine. c) Trung Nguyen online store
+ A form of consumption that is very suitable for today's young people: Online sales website - Coffee social network - "Trung Nguyen Coffee store".
+ As the owner of a coffee processing business, Mr Vu has improved and improved product quality, but an effective distribution network is a difficult problem Trung Nguyen's answer to this is to set up a chain of coffee shops, similar to part of Starbucks' model, which provides consumers with coffee products to use at home Trung Nguyen's branding strategy is carefully planned.
To compete with multinational coffee companies specializing in coffee chains or multinational brands like Nescafé, Mr Vu positions the Trung Nguyen brand as part of Vietnamese tradition A world coffee museum in Vietnam demonstrates the development history of Vietnam's coffee industry.
Trung Nguyen Coffee at Marina
Trung Nguyen Legend - CulturalDiplomacy Coffee at Japan(Source: trungnguyenlegend.com
Mixed promotion strategy (Promotion)
- It can be said that the success of Trung Nguyen coffee is due to a large part of
"communication and promotion" Advertising activities of Trung Nguyen coffee are not many, the real effect that Trung Nguyen achieved is thanks to PR - public relations based on the core values that the company aims at Trung Nguyen has breathed the national soul into its logo and slogan, promoting national pride in each product.
(Source: maketingai.admicro.com ) (Source: intphcm.com)
- Trung Nguyen has many promotional policies on holidays, also a gratitude and gift for women who love Trung Nguyen coffee such as the program
"Passiona - Coffee for beautiful people" In addition, Trung Nguyen also organized the promotion program "Drink high-class coffee, have great luck withTrung Nguyen" at the end of 2011.
PASSIONAL – COFFEE OF LADIES (Source: According to Vietnam Charming Magazine – December 2011)
4.3 Direct marketing of Trung Nguyen brand
- The program "Entrepreneur Coffee", theme "Becoming an Entrepreneur - Then and Now" at Trung Nguyen Creative Space in March 2011 Following that success, the program "Entrepreneur Coffee" of the first month of 2012 at Trung Nguyen Creative Space, Hanoi, will focus on the topic of "Year-end evaluation and reward distribution" for previous employees Lunar New Year is always a feature of Vietnamese businesses Coming to the program, there is a sharing and multi-dimensional exchange between business owners and human resource directors.
+ Trung Nguyen Coffee Company cooperates with Dang Le Nguyen Vu Tourism Investment Company Limited of Trung Nguyen Coffee Group to organize a special "Coffee Tour" program - an opportunity for tourists Come to learn, discover and experience interesting coffee Tourists can feel the passionate taste of coffee in the highlands and explore the land of Buon Ma Thuot with festivals of the Central Highlands people, with discount programs up to 45% on group purchases client In addition, there are many other travel packages, suitable for the needs of individuals, families, groups of friends, passionate about coffee.
Trung Nguyen Legend – The space connecting the coffee loving community
(Source: According to trungnguyenlegend.com
Trung Nguyen Coffee knows how to skillfully take advantage of delicate PR tools, which, in addition to promoting the brand, also contributes to tightening the cohesion of employees in the same company The program "Sales Day" is a form of drawing office staff closer to sales staff, so that they can understand their thoughts and aspirations The "Sales Day" program will become an annual activity of Trung Nguyen so that all employees of the company have the opportunity to examine the market and understand customers better, thereby, also gain more empirical information to redesign policies, mechanisms, products, etc. to best suit reality Trung Nguyen is always loyal to its customers and believes that: "A cup of coffee besides the criteria must be Clean and Delicious, it must also help the drinker to awaken responsibility and conscience to the community".
=> Lessons from Trung Nguyen coffee's Marketing Mix strategy: Building a classy brand in an emerging market seems contradictory But this case has shown that it can be done with Trung Nguyen's Marketing Mix strategy which is worth learning By combining elements of national culture, values and creating an aspirational brand through which the young intelligentsia see themselves and aspire to affirm, Trung Nguyen changes the market Vietnamese coffee and will change the world in the future However, Trung Nguyen must also recognize that the development and expansion of the brand in foreign countries will take a long time, and require a lot of flexible adjustments for each separate international market.