Assignment onenglish for marketing analysis of trung nguyen coffee’s business stratergies

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

lOMoARcPSD|39211872 Group 3 English for Marketing THE MINISTRY OF FINANCE UNIVERSITY OF FINAN–CE - MARKETING FACULTY OF FOREIGN LANGUAGES - - ESSAY ASSIGNMENT ON ENGLISH FOR MARKETING ANALYSIS OF TRUNG NGUYEN COFFEE’S BUSINESS STRATERGIES Instructor: Mr Nguyễn Tiến Huy Course: 2022-2023 Class: English for Marketing -2221101092205 GROUP 3 Ho Chi Minh City - 2022 Downloaded by mon hon (monmon1@gmail.com) lOMoARcPSD|39211872 English for Marketing Group 3 MEMBER OF GROUP Name Student ID Nguyễn Như Quỳnh 2021002427 Ngô Thị Mỹ Quyên 2021002525 Trần Ngọc Phương Thanh 2021002562 Huỳnh Phạm Ngọc Thi 2021002478 1 Downloaded by mon hon (monmon1@gmail.com) lOMoARcPSD|39211872 English for Marketing Group 3 AKNOWLEDGEMENT First and foremost, we would like to thank our research supervisors, Mr Nguyen Tien Huy Without his assistance and dedicated involvement in every step throughout the process, this essay could have never been accomplished We are extremely grateful to you for supporting and understanding me during the past time Our team's effort and research on the subject of "Analyzing Marketing Strategy of Trung Nguyen Coffee Enterprises" was done using websites, books, and other trustworthy information sources together with additional knowledge as well as helpful for the education process Even when the theory has been implemented with a lot of work, there may still be drawbacks and inadequacies In order to advance our understanding in this field, we are eager to hear your advice and recommendations Last but not least, we'd want to wish her good health, success in her chosen career path of "developing people," and the motivation to keep imparting knowledge to the next generation We appreciate you very much! 2 Downloaded by mon hon (monmon1@gmail.com) lOMoARcPSD|39211872 English for Marketing Group 3 TEACHER COMMENT Score: 3 Downloaded by mon hon (monmon1@gmail.com) lOMoARcPSD|39211872 English for Marketing Group 3 TABLE OF CONTENT AKNOWLEDGEMENT 2 TEACHER COMMENT 3 INTRODUCTION 6 1 Reason for choosing the topic 6 2 Research Objectives and Tasks .6 3 Research objective and scope 6 4 Methodology of Research 6 5 Research results 6 6 Structure of the topic 6 CHAPTER 1: INTRODUCTION OF TRUNG NGUYEN COFFEE 8 1 History of formation and development: 8 2 Vision and mission: 8 3 Core values and beliefs 9 CHAPTER 2: ANALYSIS OF THE MARKETING ENVIRONMENT OF TRUNG NGUYEN COFFEE 9 1 Micro environment 9 1.1.Factors and forces inside the enterprise 9 1.2 Supplier 9 1.3 Competitors: There are 4 levels of competition: 10 1.4 Marketing Intermediaries 10 1.5 The public 11 1.6 Customers 11 2 Macro environment .12 2.1 International environment 12 2.2 Legal and political factors 12 2.3 Economic factors .12 2.4 Natural element 13 2.5 Technological factors 13 2.6 Sociocultural factors 13 2.7 Demographic factors 13 CHAPTER 3 THE STP STRATEGY ANALYSIS OF TRUNG NGUYEN COFFEE 14 STP in Marketing 14 1 Segmentation 14 Customer segmentation 15 1.1 Geographic Segmentation 15 1.2 Demographic Segmentation 15 1.3 Psychographic Segmentation 16 1.4 Behavioural Segmentation 16 2 Targeting 16 Targeting People 16 2.1 By age 16 2.2 By gender 17 3 Positioning 17 CHAPTER 4: ANALISIS MARKETING MIX STRATEGY 18 1 Trung Nguyen's product strategy (Product) 18 1.1 Trung Nguyen Coffee includes the following product lines: 19 1.2 Packaging 20 4 Downloaded by mon hon (monmon1@gmail.com) lOMoARcPSD|39211872 English for Marketing Group 3 1.3 Brand 21 (Source: weasel.com.vn) 21 2 Price strategy of Trung Nguyen coffee (Price) 21 3 Distribution strategy (Place) 23 3.1 Dominating the domestic market 24 3.2 Expanding the international market 24 4 Mixed promotion strategy (Promotion) .26 4.1 Advertising 26 4.2 Promotions 26 4.3 Direct marketing of Trung Nguyen brand 27 4.4 Personal selling 27 5 Downloaded by mon hon (monmon1@gmail.com) lOMoARcPSD|39211872 English for Marketing Group 3 INTRODUCTION 1 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 2 Research Objectives and Tasks The purpose of our group studying this topic is to clearly analyze the marketing strategies of Trung Nguyen Coffee enterprises 3 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 4 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 5 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 6 Structure of the topic 6 Downloaded by mon hon (monmon1@gmail.com) lOMoARcPSD|39211872 English for Marketing Group 3 The research topic consists of 5 chapters CHAPTER 1: TRUNG NGUYEN COFFEE INTRODUCTION CHAPTER 2: ANALYSIS OF TRUNG NGUYEN COFFEE'S MARKETING ENVIRONMENT CHAPTER 3: ANALYSIS OF THE STP STRATEGY OF TRUNG NGUYEN COFFEE CHAPTER 4: ANALYSIS OF TRUNG NGUYEN COFFEE'S MARKETING MIX STRATEGY CHAPTER 5: DIFFICULTY IN TRUNG NGUYEN'S COFFEE BRAND DEVELOPMENT AND SOLUTIONS 7 Downloaded by mon hon (monmon1@gmail.com) lOMoARcPSD|39211872 English for Marketing Group 3 CHAPTER 1: INTRODUCTION OF TRUNG NGUYEN COFFEE Born in the middle of 1996 - Trung Nguyen is a fledgling coffee brand of Vietnam, but has quickly built up a reputation and become the most familiar coffee brand for consumers both at home and abroad In just 10 years, from a small coffee company located 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 a variety of industries 1 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 million USD to build a coffee processing factory with the most modern technology in the world in Buon Ma Thuot 2 Vision and mission: 8 Downloaded by mon hon (monmon1@gmail.com) lOMoARcPSD|39211872 English for Marketing Group 3 - 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 3 Core values and beliefs *Core values - Big ambition - Inspired creativity - Brand development and protection - Focus on consumers - Building success with partners - Develop strong human resources - Take efficiency as the foundation * Belief value - Coffee makes the world a better place - Coffee is the energy for the knowledge economy Coffee brings creativity, harmony and sustainable development to mankind CHAPTER 2: ANALYSIS OF THE MARKETING ENVIRONMENT OF TRUNG NGUYEN COFFEE 1 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" 1.2 Supplier 9 Downloaded by mon hon (monmon1@gmail.com) lOMoARcPSD|39211872 Group 3 English for Marketing Customer segmentation 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: 1.1 Geographic Segmentation - 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 1.2 Demographic Segmentation - 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 15 Downloaded by mon hon (monmon1@gmail.com) lOMoARcPSD|39211872 English for Marketing Group 3 1.3 Psychographic Segmentation - 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 1.4 Behavioural Segmentation - Reason for purchase:  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 2 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%) Targeting People 2.1 By age - Adolescent age: has the fastest increase in coffee consumption in both powdered and instant coffee 16 Downloaded by mon hon (monmon1@gmail.com) lOMoARcPSD|39211872 English for Marketing Group 3 - 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 2.2 By gender - 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,… 3 Positioning Brand positioning - To begin, Trung Nguyen has to creat 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  Make a difference in personnel  Make a difference in images 17 Downloaded by mon hon (monmon1@gmail.com) lOMoARcPSD|39211872 English for Marketing Group 3 CHAPTER 4: ANALYSIS OF TRUNG NGUYEN COFFEE'S MARKETING MIX STRATEGY Marketing Mix is the coordination and placement of marketing tools that use to impact the demand for their products in the target market Marketing Mix (4P): Product – Price – Place – Promotion (Source: chienluocmarketingso1.blogspot.com) 1 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, (Source: bancaphetrungnguyen.com) 18 Downloaded by mon hon (monmon1@gmail.com) lOMoARcPSD|39211872 English for Marketing Group 3 1.1 Trung Nguyen Coffee includes the following product lines: a Premium Trung Nguyen Coffee: - Premium Weasel Weasel Coffee - Trung Nguyen Legend Weasel Coffee - Creative Coffee 8 Trung Nguyen - Legend Revived Premium 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: - Filter processing: 1, 2, 3, 4, 5 - Creation: 1, 2, 3, 4, 5 - 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 are Che 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 19 Downloaded by mon hon (monmon1@gmail.com)