group assignment of trung nguyen coffee

In the content of this article, I want to deeply analyze and evaluate the strategies that Trung Nguyen has been using to build and develop its brand, thereby seeing the successes and fai

GROUP ASSIGNMENT

FULL NAME MATRICULATION NO

COURSEWORK

TYPE

GROUP

TABLE OF CONTENT

Foreword: 4

Request: 4

PART 1 5

A Company Introduction 5

B COMPANY STATUS 6

B1: Product Development – market 6

B2: Product diversification 6

B3: Identify the strengths, weaknesses, opportunities, and threats 6

PART 2 8

C ANALYSIS 8

C.1 Pricing Strategy 9

C.2 Promotion strategy: 10

C.3 Product distribution strategy: 12

D A great manager and a key to success: 13

PART 3 14

Conclusion. 14

Group 2 hello Teacher!

Hey Sir! After researching on the internet, at agents, through many sources of documents that the group has collected and the knowledge our group has learned in class, in groups 2 has been summarized into an introductory essay on management with the topic:

Request:

Every group will choose a company to write on one to two management issues or challenges faced by that company

From the theories acquired from this course, give your group’s

recommendations to this company for solving those issues or challenges The input for the assignment must be based on direct interviews or various method for senior managers of that company

PART 1

COMPANY OVERVIEW

A Company Introduction

Today, "brand" is no longer a strange concept to Vietnamese people; it has become a topic frequently mentioned by public opinion This has been confirmed by the company's leaders However, building and developing a brand is not a simple matter, especially for Vietnamese businesses—the concept of a brand is still very vague Trung Nguyen is one of the typical enterprises of Vietnam in building and developing brands In the process of building and developing its brand, Trung Nguyen has encountered many difficulties and challenges In order for the Trung Nguyen brand to be as strong as it is today, Trung Nguyen has used a number of strategies that can be considered very creative In the process of applying these strategies, Trung Nguyen has met with a lot of success but also many failures In the content of this article, I want to deeply analyze and evaluate the strategies that Trung Nguyen has been using to build and develop its brand, thereby seeing the successes and failures of the business in the process of implementing the strategy

of building and developing the brand Therefore, I would like to give some of my thoughts on solutions for the strategy of building and developing the brand name of Trung Nguyen coffee

B COMPANY STATUS

B1: Product Development – market

Trung Nguyen targets a diverse customer base, spanning from teenagers to the elderly Each age group has different preferences when it comes to coffee Therefore, the company has launched many products to suit the tastes of consumers

B2: Product diversification

Based on Vietnamese cultural identity, giving customers a very new experience about how to enjoy coffee that they have not known for a long time Trung Nguyen has researched and developed 30 distinct flavored blends, resulting in 9 different levels of flavor for its products Trung Nguyen's efforts have resulted in the export of premium coffee goods such as weasel coffee— the most costly coffee in the world as well as the rarest—to industrialized countries G7 instant coffee goods are carefully invested in, from naming to product packaging and promotion strategy, with the purpose of capturing the markets of seven developed countries

B3: Identify the strengths, weaknesses, opportunities, and threats

3.1 Strengths of Trung Nguyen coffee

+Because Vietnam is the world's largest coffee exporter, Trung Nguyen enjoys

a significant advantage in terms of raw materials for coffee production

+Trung Nguyen's coffee goods are well-liked by customers The G7 coffee brand, in particular, has been recognized as having great quality and an unique taste that no other coffee can match

+Trung Nguyen has a large distribution network, with over 1,000 stores around the country The Trung Nguyen brand is also seen in well-known

commercial and office buildings, increasing brand recognition

+Trung Nguyen has a lot of potential to capitalize on the market and sell coffee to other countries

3.2 Weaknesses of Trung Nguyen coffee

+Trung Nguyen's G7 coffee company has chosen Starbucks as a competitor, resulting in an unequal battle

+The Trung Nguyen Group has little experience working with overseas partners As a result, distribution channels may be wasted

3.3 Opportunity of Trung Nguyen coffee

+As Vietnam has joined the WTO, Trung Nguyen coffee will become

increasingly popular not just in Vietnam but also on the global market

+Because drinking coffee has become a habit for many people, instant coffee has become a familiar product, consumed daily by everyone As a result, the expected income of G7 instant coffee will increase in the near future

+Trung Nguyen may be able to attract new finance sources and strengthen cooperation with Asian countries if he has a brand advantage

3.4 The challenge of Trung Nguyen coffee

+Vietnam's economy is highly unstable, and economic growth is frequently

accompanied with inflation As a result, Trung Nguyen will have few options for offering lower prices and controlling the supply of raw materials required to create coffee

+On the Vietnamese market, there are many quick coffee competitors, such

as canned coffee or coffee from coffee cafes Furthermore, when consumers are tired, they can substitute Red Bull energy drink for coffee

+Trung Nguyen's market share is constantly threatened by the growth of foreign beverage brands

+Trung Nguyen is still struggling with product improvement, adding new tastes, and launching product lines to diversify markets

PART 2

C ANALYSIS

S1: Home field advantage,

taking advantage of the

national spirit and cultural

factors

S2: Tapping into the

customer's psychology

"Vietnamese people use

Vietnamese goods"

S3: Good quality product,

distinct taste.

S4: Good raw materials,

modern technology,

special extraction

know-how.

S5: Very strong distribution.

S6 Various models

S7 Distribution network all

over the country

S8 Adopt the first automatic

production line

S9 Brand is known by many

people

W1: Massive, inconsistent franchise system.

W2: Change the sign system, color, packaging continuously.

W3: Continuous personnel change.

W4: Having many projects and ambitions at the same time.

W5 The price is quite high compared to the domestic market W6 Less marketing activities W7 Unskilled workforce W8 Not aiming to exploit the lifetime value of customers

O1: Has a special taste, cheaper than other countries, easy

to process, especially processing instant coffee.

O2: State-backed.

O3: The world coffee demand is constantly increasing, especially the large market of Japan and China.

O4: Joining WTO helps

to enter foreign markets

T1 Inflation increases, currency depreciates, making it difficult to price products.

T2 Many competitors.

T3 Various substitute products.

T4 In recent times, there are many counterfeit products of the company's products, reducing the company's reputation.

T5: Civil War.

Opportunities

S1+S2+O1+O2= Strategies to build a foothold and capture the market.

S3+S4+O3+O4= Market expansion strategy.

W1= strengthen, tighten management W2= more effective marketing strategy, helping customers know and choose the right product, avoid being dazzled by many

products.

Threats S1+T1= pricing strategyS2+T2= competitive strategy

S3+S4+T3= marketing strategy + creativity, new product development.

W3+T2= Employee treatment and recruitment methods T4+T5= use problem solving methods.

Form S1+T1= Pricing Strategy

C.1 Pricing Strategy

For the domestic market, Trung Nguyen offers a variety of products that are suitable for many people who enjoy coffee, such as:

To create competitiveness, the price of G7 is still 3-5% lower than the price of Nescafe

The Cafe G7 Cappuccino Irish Cream 12*18g costs 36,000 VND

The G7 Instant Coffee_Sugar Coffee (15 packs x 16gr) costs 35,000 VND The G7 3-in-1 instant coffee product (20 packs x 16g) is priced at 35000 VND

G7 Instant Coffee-Cappuccino Hazelnut is priced at 36,000 VND

Trung Nguyen uses a pricing strategy that is higher than its competitors in some markets, such as Japan and England

Japan is a country famous for its traditional art of tea ceremony Besides, the Japanese also knew about coffee very early (in 1800) Therefore, Japan is a rather strict market in terms of taste However, Trung Nguyen's franchising agent in Japan sets a price for each cup of Trung Nguyen coffee that is 50% higher than Starbucks and 25% higher than other domestic coffee Trung Nguyen and Trung Nguyen achieved many successes in the capital, Tokyo, creating a miraculous leap for Trung Nguyen on the way of integration, as a lever to develop the franchise system in a series of other developed countries

The high-priced method is used in the UK because the British have a high ability to pay; as long as they demand quality products, they are prepared to

W2= more effective marketing strategy, helping customers know and choose the right product, avoid being dazzled by many products.

C.2 Promotion strategy:

The main tools of the promotion strategy:

1 Advertisement

2 Public relations

3 Promotion

4 Direct Marketing

1 Advertisement:

Contract of service advertisements on virtual social networks such as Facebook and YouTube

Print advertising, such as posters and banners, is readily available on the market, as is contact advertising in supermarkets and shopping malls Sponsor product promotion contests and conferences

Advertise in national and international media such as Marketing and Family, Television Magazine, Vietnamese Beauty, and so on Participate in trade fairs

2 Public relations :

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

Trung Nguyen launched the program "Creativity for Vietnamese Brands" in cooperation with Thanh Nien newspaper and the Vietnam Youth Union Furthermore, Trung Nguyen worked with Thanh Nien Newspaper to carry out the program "Our Country is Small or Not Small." Trung Nguyen's launch of the "battle for Vietnamese brands" is also highly respected Trung Nguyen's program, "Building the Brand of Vietnamese Agricultural Products,"

Trung Nguyen participates in sponsoring the following programs: Sponsoring the program "Connecting big arms" for the poor organized

by Hanoi Moi newspaper, Saigon Giai Phong newspaper, and Da Nang

newspaper from June to July 2004 - Journalism Month for the Poor In this program, Trung Nguyen donated 1 billion VND

Participated in supporting Vietnamese Agent Orange victims in the humanitarian program "We are not emotionless" of Vietnamese TV station: 10 million VND

Supporting the charity program "Connecting the heart beat" to perform heart surgery for children with congenital heart disease in difficult circumstances of the HCM Red Cross: 40 million VND

Trung Nguyen also organized the program "G7 Ultimate Festival" to promote the brand with 35000 people who participated in this festival

3 Promotion

Trung Nguyen has promotions that are appropriate for each season as well

as long-term efforts

4 Direct Marketing

Benefits of direct marketing:

1 Aim for the right target

2 Personalize the buying and selling relationship

3 Create action

4 “Stealth” strategy

5 Measurable results

Today, direct marketing mostly use media tools such as:

If traditional marketing depends heavily on newspapers, radio, and television, direct marketing relies heavily on direct mail, phone calls, and information technology There is now email and the internet

C.3 Product distribution strategy:

Distribution channels:

The company's distribution channel system is mainly done through intermediaries Therefore, establishing a good relationship and at the same time controlling the flow in the channel is very important in the company's distribution channel Because of this, we have built a distribution channel system and have good plans to implement it to bring maximum efficiency as follows:

Diagram of the company's distribution channel system

Distribution channel diagram of the company

Trung Nguyen has made reasonable distribution of products for each channel, for each product, for each different market

The coordination and interlacing of channels to distribute maximum products to each market

S3+S4+O3+O4= Market expansion strategy.

D A great manager and a key to success:

Dang Le Nguyen Vu is a Vietnamese businessman He is the founder,

chairman and CEO of Trung Nguyen Group, Vietnam He was honored by National Geographic Traveler and Forbes Asia as "Vietnamese Coffee King"

( tầm nhìn chưa đủ rộng , không dám đối đầu thử thách)-> Xác định năng lực sở trường đam mê VIDEO

In this clip, Mr Nguyen Vu talks about determining the capacity and forte of passion

PART 3

Conclusion.

With continuous efforts and efforts in production and business, Trung Nguyen Joint Stock Company in recent years has achieved many achievements, creating significant growth in revenue and profit, affirming its product position in the market Initially, Trung Nguyen was just a fledgling coffee brand in Vietnam, but quickly became a familiar coffee brand with domestic and foreign consumers Thanks to pioneering in applying the franchise business model in Vietnam, in just ten years from a small coffee company located in the coffee capital of Buon Ma Thuot, Trung Nguyen has emerged as a powerful corporation with six companies Trung Nguyen Joint Stock Company, Trung Nguyen Instant Coffee Joint Stock Company, Trung Nguyen Coffee Company Limited, G7 Trading and Service Joint Stock Company, Vietnam Global Gateway Joint Venture Company (VGG) with the following main businesses: tea and coffee production, processing, and trading; franchising and distribution services; modern retail In the future, Trung Nguyen Group will develop with ten member companies and concurrently operate in many industries diverse professions.