topic propose a new product coconut milk coffee to highlands coffee and propose a plan to launch this new product

Vietnam and a strong passion forcoffee.- Originating from the desire to elevate Vietnam''''s long-standing coffee heritage,spreading the spirit of pride and harmonious connection between tr

FPT UNIVERSITY- CAMPUS CAN THO



Group Assignment [MKT101]

COFFEE TO HIGHLANDS COFFEE AND PROPOSE A PLAN TO LAUNCH THIS NEW PRODUCT.

Name of group member Contribution (%)

1 Lâm Nguyễn Thúy Vy ( 20%)

2 Hồ Hồng Bảo Ngân ( 20%)

3 Huỳnh Cao Minh Thông ( 20%)

4 Nguyễn Thành Phúc ( 20%)

5 Nhâm Hoàng Thiệu ( 20%)

Cần Thơ, 7/2022

TABLE OF CONTENTS

I INTRODUCTION 1

II METHOD AND CONCEPTUAL FRAMEWORK 1

III ANALYSIS RESULTS 1

1 Overview about the company 1

2 Analyze the current status of the company's products in the market 3

3 Target market and customer The need of target markets & customers for the company 5

4 Suggest new products, value of benefits Brand value and the positioning statement of the new product 5

5 The competitors of the company 6

6 A plan to launch this new product 7

a Objective of your marketing 7

b Target customers 8

c The communication message and content 8

d Demo Poster 9

e Total budget of the plan 9

f How to get feedback result 9

IV CONCLUSION 10

V REFERENCES 10

I INTRODUCTION

Highlands Coffee is one of the famous coffee brands in Vietnam market With the dedication in offering quality and diverse products and a quiet, polite space suitable for all ages from students, office workers, elites, Highlands receives very high rating from customers Besides these successes, the competitive market also requires Highlands to increasingly diversify products and not only satisfy the demand for newness from customers Therefore, with our knowledge, our team would like to propose to Highlands

a new product - coconut milk coffee - as well as a marketing strategy for that product

II METHOD AND CONCEPTUAL FRAMEWORK

In this new product strategy, our team uses the knowledge of marketing strategies that have been learned First of all, it is about the brand expansion strategy, we choose the product expansion strategy in a typical product portfolio of the brand, developing in the direction of adding a product with a new flavor combination to attract customers' curiosity Next is the product promotion strategy by public relations through promotional videos and videos, post reviews of famous KOLs and through the sharing of customers' own experiences at the store I hope it will be useful for this new product launch in our planning

III ANALYSIS RESULTS

1 Overview about the company

- Highlands Coffee - a famous coffee brand in Vietnam, belongs to Viet Thai International Joint Stock Company (VTI), founded in Hanoi in 1999 by David Thai - an overseas Vietnamese businessman with great love for coffee Vietnam and a strong passion for coffee

- Originating from the desire to elevate Vietnam's long-standing coffee heritage, spreading the spirit of pride and harmonious connection between tradition and modernity

- Highlands Coffee was born from the goal of becoming the most loved brand, serving Vietnamese people anytime, anywhere

- The outstanding development stages of Highlands Coffee:

+ 2000: Started with packaged coffee products in Hanoi

+ Since 2002: Quickly developing into a famous coffee shop brand and constantly expanding domestic and foreign activities

+ 2008: Served more than 4 million cups of coffee along with 2 million meals to 5 million customers (A very respectable number for established coffee and fast food brands in Vietnam)

+ 2014: Reaching 75 stores in big cities from North to South.

+ 2016: Reaching 100 stores

+ 2017: Opened more than 200 stores nationwide and won the Global Marketing Award

+ Up to now, there are more than 300 stores in 26 provinces and cities

The outstanding development stages

- For more than two decades, Highlands Coffee has always brought delicious, quality coffee with hand graded coffee, freshly roasted every day Not only coffee, other drinks

as well as food (specifically bread) are also highly appreciated for their quality and variety The space is comfortable, polite, the service attitude is warm, enthusiastic and the price is stable

* Brand positioning

- For a long time, Highlands has positioned itself very well in terms of "coffee for businessmen" and "coffee for high-income intellectuals" But later on, Highlands expanded its brand positioning in many different ages, including students and middle-income people who can enjoy products at Highlands In the long term, Highlands promises to always bring customers quality and diversified products that are suitable for many customer segments and their needs for a quality coffee brand with delicious taste Great space and great service

2 Analyze the current status of the company's products in the market

Highlands Coffee is trading mainly 2 main product groups: Food and Drinks

- About Food, Highlands Coffee has cakes and breads Bread is one of the products that receive positive feedback from customers because it is a popular dish for Vietnamese cuisine, famous in the international market Moreover, bread is suitable for all customers

of all ages, can be eaten anytime and anywhere

- About Drink, Highlands Coffee is divided into 3 main groups: Tea (the representative of yellow lotus tea), coffee (the representative of iced milk filter), and freeze (the representative of freeze green tea) These are products that are considered “Best sellers”, highly appreciated by customers for their quality and taste In addition to products served on-site, Highlands also trades in many other products such as packaged roasted coffee, canned coffee, fashion mugs, water bottles, etc

Drink and Food

- Highlands Coffee products are sold at different prices ranging from 29,000 to 75,000 VND In addition to direct selling, Highlands also implements take away form through cooperation with delivery units such as Grab, Baemin, Shopee food, Gojek,,… so that customers can easily buy products wherever they are In addition, the company always has special promotions for customers who order takeout Even customers who order on the app have a better price than when buying at the shop Moreover, Highlands' packaged products are also sold in supermarkets and convenience stores nationwide

Menu of Highlands

Products os Highlands Coffee

- However, due to "market volatility", Highlands Coffee recently announced an increase

in product prices Immediately after the announcement was made, many followers of Highlands Coffee expressed dissatisfaction, even saying "break up" with the brand Some customers sympathize with the brand Despite the difficulty of making the decision to raise prices, Highlands Coffee always seeks to affirm and preserve the value of Vietnamese coffee beans with a unique filter-making culture, wherever the brand's footprint is located

3 Target market and customer The need of target markets & customers for the company

* Market and customers

- Customers in Highlands are mostly teenagers and adults, office and young consumers, middle-income and even upper-class people Highlands stores always create a relaxing, modern and quiet space suitable for lifestyles of all ages and activities for working, studying in groups and gathering with friends

- Highlands stores are spread from North to South and are located in prime locations in the city center Concentrated mainly in economic center areas such as Hanoi and Ho Chi Minh City Open at any time frame both during the day and at night (usually from 8:00 to 22:00) even on holidays, Tet and often crowded at peak hours All of this helps Highlands

to have a diverse target market with customers from middle to high income workers, foreign tourists and even students to expand its market share more

* The need of target markets and customers

- Choosing a reputable coffee brand helps customers affirm their social status as well as feel appreciated Besides quality, customers also pay attention to the variety of products,

so Highlands needs to have more new products to suit the needs of customers

- At the same time, with the current fiercely competitive market, Highland is required to have more innovation, originality, creativity or to have more new and diverse dishes in the menu to be able to compete with other brands other

4 Suggest new products, value of benefits Brand value and the positioning statement

of the new product

- With a competitive market, Highlands Coffee is required to diversify its products but still retain its characteristics, so the group has a new product proposal that is "coconut milk coffee" This is a drink that combines the characteristics of Highlands as coffee and adds a new fatty aroma from coconut milk, both combined will create a boom Not only that, the product also has high health value, it provides energy and is especially low in calories.This boom is sure to generate high profits

- As a famous Vietnamese brand, the design ideas of Highlands Coffee are inspired by coffee beans imbued with national values Highlands sells quality products, building core values associated with coffee beans and tradition Each product is carefully designed, focusing on quality and taste

- New product positioning: Coffee with coconut milk is a new combination, instead of coffee combined with fresh milk, it is now combined with the fatty aroma of coconut milk Targeted to be sold to all ages but mainly focused on those who like low-calorie foods or people who are losing weight but still want to enjoy coffee at Highlands

Besides, it also sells to office workers, students - who go to work early in the morning and need an energy product - and coffee enthusiasts

5 The competitors of the company

- As a company with extensive experience and success in other countries, it is easy to see that when returning to Vietnam, Starbucks is completely a big competitor

* Strength:

- Brand influence: Starbucks is now a famous beverage brand around the world, so when returning to Vietnam, the level of curiosity and customer attraction is higher Especially because this is an American brand, a global economic power known for the quality of its products

- Coffee standards: Even in different countries, they maintain the brand's standard quality and distinctive coffee taste Offering the best coffee experience for those who enjoy strong flavored coffee

- Solid economic foundation: In 2019, Starbucks achieved revenue of about $26.5 billion and profit of $3.6 billion This is really a record business result, a favorable situation for Starbucks to grow faster

- Policy and strategy: They have successfully completed the task of determining market share of customers and characteristics of Vietnamese people Moreover, they have a policy of balancing profit - culture, with environmentally friendly production processes, and good staff policies

* Weaknesses:

- High price: because Vietnam is a developing country As a result, the middle income market share is still larger than other countries, making Starbucks less attractive at the high end

- Lack of variety: despite its success in product quality and environmental friendliness, people will remember Starbucks as a beverage and fast food outlet rather than a branded product

- The taste of the locals: Starbucks has the same drink menu in each country, which is beneficial for production, but the big downside is that it doesn't suit the taste of the locals, especially is the Hanoi area, where there is tradition and strict coffee

6 A plan to launch this new product

a Objective of your marketing

* Marketing plan:

- Play promotional videos on Facebook of Highlands and Youtube

- Let customers try the product for 1 week.

- Through well-known and trusted KOLs to test the product and provide feedback to attract customers more interested in the actual use and experience of the product The spillover to customers will increase thanks to these objective views

- Display posters at stores and large banners at crossroads to attract the attention of many customers

- Search Engine Optimization (SEO) Users will love your brand more if it performs well

in Google searches for related keywords, customers have more opportunities to interact with the brand The popularity and trust level of customers will quickly increase Many consumers who have never used it will garner interest, laying the foundation for word of mouth marketing, a tactic that never goes out of style and goes viral with a high level of customer trust

* Objective of marketing plan

- Revenue: for a branch in 1 month (30 days), plan to sell about 500 cups of product for each size in a day, the price will be divided by size

+ Small size: 39.000 VND

+ Medium size: 48.000 VND

+ Large size: 54.000 VND

Total expected revenue: 70.500.000 VND

- Evolution:

+ Attraction: achieved more than 100.000 interactions on social network accounts of KOLs Reached more than 1.000.000 searches

+ Retain 70% of customers who buy the product again after a 1-week trial campaign + The share of customers who have tried it reaches 80%

+ Market share: about 0.7% for coffee categories at coffee brands

- Brand awareness: When mentioning Highlands, it is impossible not to mention coffee and especially the fresh and fatty taste of new products Leave a unique experience, remember in the hearts of customers

b Target customers

- Coconut milk coffee is a drink that is not too strange for coffee enthusiasts This is a drink suitable for all ages From the elderly to the young, everyone can enjoy a cup of coffee with a fresh taste, which will help you full of energy for a working day We may be too bored with regular coffee, we want to change the taste a bit, coconut milk coffee is not a bad choice Coconut milk is described as an “energy” food, meaning that when it

enters your body – it burns more fat Every day you drink coffee, mixed with coconut oil, burns 120 Calories in the body In addition to the direct calorie-burning energy, coconut milk coffee can also help you feel full, so weight loss will be effective Weight loss people still want to enjoy a delicious drink but also want it to not contain too many calories This shows that coconut milk coffee is also very suitable for customers who are losing weight, they can use it comfortably without worrying about gaining weight Coconut milk coffee is recommended as a good drink when going to work in the morning, because it has the effect of improving work productivity, suitable for office workers or people who often go to work early (students) every morning Office workers and students early in the morning are the ones who need a delicious drink and give them enough energy for a working day The upper and middle classes can both enjoy this novel flavor without worrying about the price

c The communication message and content

- Promoting program: “Cà phê cốt dừa - thơm béo - đậm vị Việt Nam”

- Message: Coffee with coconut milk - a delicious, special drink that brings out the characteristics of Vietnam The combination of greasy coconut milk with a bit of bitterness of coffee brings something special to this drink This is a drink for those who love coffee but like the creamy taste With an exclusive formula, a high quality coconut milk coffee will satisfy the most fastidious customers

- Form of promotion:

+ Poster and TVC advertise new dr on the main fanpage and branch fan pages of Highland on Facebook, Instagram, In the ad, mention the taste of coconut milk coffee - a special combination

+ Advertising banner and poster for a new drink – coconut milk coffee - Vietnamese flavor At the same time, customers can trial new drink at a promotional price when buying combos of 2 drinks or 1 drinks and 1 cake