groupassignment integrated marketing communications circle ks imc campaign launch of the coffee brand koffee

In recent years, Vietnam''''s coffee has beenexported to more than 70 countries and has 14 leading markets accounting for 80% ofthe total export turnover of the country.Coffee is also one o

FPT UNIVERSITY- CAMPUS HO CHI MINH

GROUP ASSIGNMENT Integrated Marketing Communications

Circle K's IMC CampaignLaunch of the coffee brand KOFFEE Course: MKT304

Lecturer: Dư Tiểu Dương Class: MKT1710 Group: 3

Name of group memberStudentID

4 Trần Thị Thùy Dương SS160395

8

Coffee is a popular drink in Vietnam In recent years, Vietnam's coffee has beenexported to more than 70 countries and has 14 leading markets accounting for 80% ofthe total export turnover of the country.

Coffee is also one of the popular drinks of many convenience stores and Circle K isone of the convenience stores with the highest sales of milk coffee Based onpublished reports on the Coffee market, it can be seen that coffee is one of theindispensable drinks in today's growing life Our report will analyse the coffee marketin Vietnam as well as its strengths and weaknesses of the coffee market From ouranalysis of the coffee market, we will come up with the most suitable strategies topromote the coffee brand in the Circle K convenience store and boost the conveniencestore revenue.

1 Business information

Red Circle currently operates 16,000 outlets throughout the world In 2008, thischain of businesses began operating formally in Vietnam Circle K is theconvenience store chain with the most locations with more than 400 locationsthroughout 10 provinces in Hanoi, Ha Long, Ho Chi Minh City, Vung Tau, CanTho, Binh Duong, Hai Phong, Long Xuyen, Bien Hoa and will continue to grow toserve the needs of customers and cities in Vietnam.

2.Circle K's position in the market

Circle K is always in the top of the most favorite convenience stores in Vietnambecause of its convenience and completeness Occupying the "heart" of youngpeople, Circle is not popular with young people because of its youthful style, acool place to sit, and a variety of fast food suitable for young Vietnamese people.

In all surveys, Circle K ranks high in the ranking of favorite convenience stores.For example, Circle K ranks first in the top of mind when it comes to conveniencestores.

Source: Q&Me Vietnam Market research, 2017.

Besides, Circle K is also the most mentioned brand on social media That partlyproves that circle k is a real giant in convenience stores, asserting its position inthe market

Source: Buzzmetrics, 2016.

The income of Circle K has also ranked first in recent years compared to otherconvenience stores Circle K is really a very popular convenience store in themarket.

 Circle K brand is a great advantage because it is the first brand to appear inVietnam, so it is known by many consumers.

 Products at Circle K are diverse and suitable for consumers' needs

 There are many incentives and combos on eating and drinking as well as attractiveredemption programs

 Stores are concentrated in densely populated areas in large cities

Weakness

 The products are diverse, but the prices are often higher than in supermarkets orregular grocery stores Besides, the pressure of space as well as personnel makesthis company need to optimize costs quite a lot The service quality assurance ofthe whole system is not uniform Some establishments also complained about foodhygiene and safety.

 Because convenience stores are springing up more and more and the space isshrinking, only a small space can be rented, so many places have small spaces, sothey can't sell many items as well as have no parking space for customers.customers, forcing customers to maintain their own cars.

 Although the training process is done carefully, there are still a few indifferent andunprofessional employees

 There are no fresh products such as meat, fish, vegetables, etc.

 The Vietnamese market is a market with a young population This audience oftenhas a hobby of discovering new things, is not afraid to change, and is quick torespond to new trends in the market The most important thing is that this group ofcustomers love convenience Grocery version with investment in space, serviceand listing price The market is still very potential for Circle K to show itsstrengths.

 There are many new residential areas opening such as Vinhome grand park thatwill be a good place for circle K to develop.

 Many customers are interested in launching new programs because it satisfies theirneeds as well as their psychology.

 Besides Circle K, several convenience store business models are also developingtheir systems in some densely populated areas Although it is not an expensivelocation, it is extremely convenient for consumers to shop.

 Challenges to compete with other domestic brands such as Win-mart, 7-eleven,Family Mart, GS25,

 Must find new business strategies, new marketing strategies to attract morecustomers and retain old customers.

III.RETAIL MARKET IN VIETNAM

According to Babuki, 2021:

Vietnam's retail market is booming In 2018, Vietnam ranked 11th (50.2 points) in theworld on the Global Retail Development Index (GRDI), in the ASEAN region, Vietnamis the market with the third highest index (after Malaysia) 61.9) and Indonesia (58.7).Given its relatively small size and retail market attractiveness index of 25.1, Vietnam isconsidered an important market with low saturation.

The value of Vietnam's retail and service market in 2020 reached VND 5,060 trillion, up2.6% over the previous year (GSO VN) In which, the retail sales of goods nationwide in2020 is estimated at 3,997 trillion VND (equivalent to 172.8 billion USD), up 6.8%compared to 2019; market size increased by 11 billion USD.

The figure of 172.8 billion USD is very impressive in the context that the whole world issuffering from many difficulties and challenges due to the Covid-19 pandemic, the retailmarket of other countries has suffered a sharp decline difficulties, bankruptcy, job loss,etc The above-mentioned turnover is also the highest revenue in a year of the Vietnameseretail market.

The retail market is bustling again in the second half of 2020, partly because businessesare more active towards the end of the year in implementing trade promotion activitiesand stimulating consumer demand, partly due to gradual consumer demand recovery inthe context that Vietnam has well controlled the epidemic situation.

Source: Babuki, 2021.

Multinational retailers such as Lotte, Big C, Aeon, Circle K and 7-Eleven are takingadvantage and have established their footprints in Vietnam's emerging retail market Theirpresence in Vietnam creates more competition for local retailers, while diversifying theiroffering to Vietnamese consumers with growing disposable income and growing interest.to foreign brands.

1 Coffee consumption

Source: Statista Research Department, 2022.

Vietnam's coffee consumption is increasing year by year, which means that the coffeeconsumption of Vietnamese people is quite high Coffee consumption per capita reaches4.7 kg/year Last year, Vietnamese people spent about 53 trillion dong on tea and coffee, agrowth rate of about 10% annually.

Thanks to Vietnam's growing middle class, Euromonitor Worldwide has valued thedomestic coffee and tea retail market at more than $1 billion

Vietnam was consumed over 3.1 million 60kg bags of coffee during the 2020–21 year.The country was expected to consume 40 thousand more bags of coffee in the upcomingyear (Statistics, 2022).

Vietnamese farmers cultivate both Arabica and Robusta beans, however Robustaaccounts for the majority of the country's total coffee production In Vietnam, 28.05million 60-kg bags of Robusta coffee were produced during the 2020–2021 year,compared to little under one million 60-kg bags of Arabica coffee (Statistics, 2022).

2 Circle K's rival in the coffee market

Strengths of Circle K: Koffee is an independent brand that Circle K is about to launch, sobrand awareness is higher than other convenience stores Besides, Koffee also launchedCafe X Secret product line with a new product name, creating curiosity of customerswhen hearing the product name In addition, Koffee also has iced black coffee, iced milkcoffee, walnut coffee, chocolate coffee with extremely beautiful and unique layout.Surely these will be delicious, unique and eye-catching drinks because the product alsohits the customer segment by age with different caffeine concentrations, the reason fordoing so is to preserve protect the health of consumers as well as meet the needs ofcustomers.

Weaknesses of Circle K: Koffee is a new product on the market, so it will be somewhatdifficult to reach customers, old customers already have places to drink that they like Soturning around customers' drinking behavior is also a challenge for Circle K with othercoffee shops in the long-standing market In addition, customers will often be less likelyto visit shops that are not convenient to the road, and take time to wait instead of roadside

The first Circle K's competitors are other retail stores such as Ministop, B's Mart, FamilyMart or 7-eleven: The coffee products here are rated by customers as having no specialtaste, and not yet available variety of unique coffees The reason they mainly sell coversall necessary items such as food and necessities, rather than hitting hard on any particularcoffee brand.

Coffee trolleys on the street - cafes: Today's young trend often goes to cafes withbeautiful views and delicious drinks, to be able to sit and chat and chill with friends afterhard working days and watch the hustle and bustle of life go by But besides that,roadside drinks may not guarantee hygienic quality, which is also a concern for manymid-range customers.

V.CAMPAIGN OBJECTIVE

Because coffee in convenience stores is not known to many people, especially amongmiddle-aged people because they prefer traditional coffee to coffee in convenience stores.So, our first goal is:

According to Q&Me, 2017: Age with frequent convenience store purchases is (every dayor 5-6 days a week): 16-24 years old.

“Green consumption” is an extremely prominent trend in recent years in Vietnam Thistopic is getting the most attention because people now have a sense of need to protect theenvironment, the trend of using "sustainable" and "green" items is always attractingattention certain to the consumer According to the research results of Nielsen VietnamCompany, the profit for clean brands and companies devoted to creating green and cleanproducts is more than four times greater than that of equivalent companies Growth rate

in beverage sector from 2-11% (“Impacts of green consumption on Vietnameseenterprises”, 2018) Therefore, product development associated with green or sustainable

trends will bring attention to Circle K's customer group.

2 Core values of customer segments

Most are students, can have income from part-time jobs.They prefer to choose items with reasonable prices.They are a group of people who love convenience, attracted to strange and beautiful things.In the age group with the highest frequency of shopping at convenience stores.

Love the experience.There is a need to use coffee to stay awake in studying but

Most of them are employed.

They prefer to choose items with reasonable prices.

Busy, convenient, attracted to beautiful things.

Love the experience.High demand in coffee use especially from 25-34 years old (maybe more than 2 cups a day).There is a certain concern for the environment.

Most of them are employed

They prefer to choose items with reasonable prices.

They are easily attracted togifts.

The demand for coffee is atthe second level, only lower than that of the 25-34 age group

the frequency of drinking is not too high (most).There is a certain concern for the environment.

VIII.CREATIVE MARKETING STRATEGY FOR KOFFEE1 4P Marketing

To compete with other convenience stores, the following pricing strategy will be adopted:Circle K's iced milk coffee products are priced at 15k for each product Besides, the priceof Café X Secret products will cost more than 20 thousand VND per cup The price ofCafé X Secret is 5k higher than the price of a regular cup because it is a line of walnuticed milk coffee Circle K wants to bring to consumers that the combination of coffee andwalnuts will make your mind much clearer And yet, with that price, although it is high, itstimulates customers to think "What product has such a high price".

Product

 The product line is called "Koffee".

 Meaning: As Circle K's name has the letter K, we changed the C in "coffee" to theletter K as a play on words, so the name also has the Circle K brand and also tellswhat the product is.

 Product lines: there are 2 types, usually Iced Black Coffee and Iced Milk Coffee.There is also a special version called "Café X Secret".

 USP: 3 levels of caffeine concentration for all 3 product lines of "Koffee". Product concept idea: Products are people's companions in life With 3 caffeine

concentrations representing the weight of life pressure at three life stages from 24, 25-34 and 35-44 Koffee will always be by your side to help you gain sanity,

18-so that you can be strong to overcome difficulties and pursue your own gloriouslife.

 Café X Secret: Flavors include coffee, walnut milk, and chocolate Liquidchocolate will be rimmed inside the cup, when customers use it, they will shake itslowly so that the chocolate blends with the coffee The idea of creating a newcoffee flavour with nut milk is from walnuts combined with coffee to help increasealertness and clarity, in addition, it is suitable for customers who do not drinkcow's milk This is a special product intended to intrigue customers Hit the humancuriosity and want to explore Stimulate the psychology of wanting to buy to trynew things.

 Packaging And Design

In this age period, life pressure comes from studying, peer pressure A cup of coffee with moderate caffeine concentration 150mg will help you stay awake to cope with difficulties.

At this stage, you are probably facing the greatest life pressure Worry about career, family, economic burden.Then Koffee can share and accompany you witha strong caffeine concentration 225 mg, awaken all your senses, ready to overcome all difficulties

This is the stage you want to enjoy, reflecting on what you've been through With a mild caffeine concentration of 75mg, reminding you of the hardships you went through to achieve the life you are today.

"Koffee" will be sold under 2 means including Online and Offline:

 For the Offline form, all products will be sold at all Circle K selling points and runthe same program everywhere.

 For the Online form, products are sold through platforms such as Foody or Shopeefoods or Gojek, Grab, etc When buying online, they will also receive preferentialprograms like offline but the online purchase price will be more expensive.

2 Digital MarketingFacebook

 Television Video Commercials (TVC)

Koffee – Front sideLogoCafé X Secret – Back side

Iced Black Coffee & Iced Milk Coffee – Back side

 10% discount for customers TikTok videorecording with hashtag

#Koffee #CircleK.

 Free eye patch when buying 1 cups of coffeein the first month.