Consumer Behavior - Mkt201 Highlands Coffee.pdf

The customers that Highlands Coffee is targeting are themiddle class, office workers, and the dynamic younggeneration because drinking coffee here with aprestigious coffee brand helps th

I INTRODUCTION 1.1.Short profile of that product 1.2.Target customer and target market

1.3.Aims: Do research and analyze the

current marketing strategy and some

IV REFERENCES

T A B L E O F C O N T E N T

I Introduction

1.1 Brief about that product

Highlands Coffee is a trademark of Viet ThaiInternational Joint Stock Company (VTI), established inHanoi in 1999 by Viet Kieu businessman – David Thai.Originating from the love of Vietnam and the passion forcoffee, the Highlands Coffee brand was born with theaspiration to elevate Vietnam's long-standing coffeeheritage and spread the spirit of pride, harmoniousconnection between tradition and tradition with modern.Starting with packaged coffee products in Hanoi in 2000,Highlands has quickly developed into a famous coffeeshop brand and has been constantly expanding itsoperations at home and abroad since 2002

Over a long period of time, this brand has constantlybrought delicious, consistent coffee products in acomfortable and polite space Coffee cups are not only afamiliar drink but also carry a cultural mission thatreflects a part of the modern lifestyle of Vietnamesepeople Up to now, Highlands Coffee still maintains thestage of manually sorting coffee to select the best qualitycoffee beans, roasting fresh every day and servingcustomers with a bright smile on their faces

Currently, Highlands Coffee has been present in 32provinces and cities and has more than 400 storesnationwide, a fairly high number Especially in Ho ChiMinh City or Hanoi, the frequency of Highlands Coffee isdense In the year of the pandemic 2020, this brand stillachieved more than 2100 billion VND in revenue, whileother brands are struggling because of the epidemic.

The customers that Highlands Coffee is targeting are themiddle class, office workers, and the dynamic younggeneration because drinking coffee here with aprestigious coffee brand helps them assert their position

in society Moreover, Highlands coffee always focuses oncreating a comfortable and exciting atmosphere forcustomers to enjoy coffee every day Therefore, this is theright place for office workers who want a quiet andluxurious space to discuss with friends and enjoy coffeewith Western-style pastries

In addition, Highlands also targets a group of customerswho are young businesses, who have studied abroad, sothey are familiar with the U - American style such asdrinking coffee at a luxurious restaurant with the stylewhere they used to live In addition, Highlands Coffee'scustomers are foreigners living and working in Vietnam

1.2 Targeting customers and

target markets

Highlands Coffee is known as a brand that was born toserve Vietnamese values Highlands Coffee is steadfastwith the goal of becoming the most loved coffee and teabrand, serving Vietnamese people anytime, anywhere,proudly spreading the word spread the message "Pride ofVietnam" This has become a strong inspiration for thebrand to become part of the tea and coffee enjoymentculture of millions of Vietnamese.

Coming to Highland Coffee, is the place to bring the bestcoffee experience with luxurious contemporary space,attentive service style Highlands always focuses oncreating a comfortable and exciting atmosphere forcustomers to enjoy coffee for them to experience everyday

Therefore, for this research paper, we have chosenHighlands Coffee, which is a favorite and popular product

in Vietnam So to research the Vietnamese market onconsumer behavior, how has Highlands used the 4Psmarketing strategy at the moment? The question will beanswered in the next section about the impact ofconsumer behavior on the 4Ps Marketing strategy ofHighlands Coffee brand

1.3 Aims

Motivation refers to the processes that lead people tobehave as they do Occurs when a need is aroused thatthe consumer wants to be satisfied Demand creates astate of stress that causes consumers to try to reduce oreliminate it Marketers strive to create products and toprovide desired benefits and to help consumers relievethis stress.

II Analysis consumer's behaviour

2.1 Motivation

To study motivation, marketers will apply A.H Maslow'smost famous theory of personal motivation called thehierarchy of needs, which classifies human needs into 5levels:

- The first level in Maslow's hierarchy is physiologicalneeds, which include hunger, thirst, and other basicmotivations that make humans exist This is the mostbasic and most powerful human need, for example: ForHIghland to meet the customer's needs for the rightdrinks, making fast food and delicious drinks

- The second level is the need for safety and security,people need protection and safety from threats anddangers For example: Customers choose to use drinkswith clear brands such as Highlands Coffee

- Love and belonging are the third level of Maslow'shierarchy, they include the need for belonging, friendship,closeness, and family They relate to one's interaction withothers and the perceived need to be accepted by socialgroups, large or small Example: Customers chooseHighlands Coffee as a place to meet friends, family and arelative

- The fourth level is self-esteem, The urge to feel goodabout oneself, to be respected and respected by others,and to have a positive self-image is part of self-esteem

Customers choose Highlands Coffee because it is afamous brand, different from the popular brands in thepast They have a need to show off their own image andwant to receive positive reviews from others )

- Self-actualization is the fifth and highest level ofMaslow's hierarchy of needs and refers to people's desire

to realize their maximum potential and do everything theycan with their skills and abilities their force Example: Inthis case, customers who choose Highlands Coffee's drinks

no longer have to switch but simply because it suits them

2.2 Awareness

Customer actions are influenced by perception.Sensation refers to the immediate response of humansensory receptors (eyes, ears, nose, mouth, fingers, skin)

to basic stimuli such as light, color, sound, smell, etc andtexture Perception is the process by which people select,organize, and interpret these feelings

In general, at highlands coffee, customers all say thatusing Highlands coffee because it is delicious, suitable fortheir preferences and among them also think that theattitude of the service staff is good from the equipment,facilities, menus, costumes, diverse service staff, etc All ofthem have an impact on the customer's perception

Experience causes some permanent change in behavior, called learning However, learners do not need to havedirect experience; We can also learn by watching eventsthat affect others Even when we don't try, we still learn.Even for things we don't use, we recognize lots of brandnames and hum a lot of jingle products This unintendedacquisition of knowledge is called stochastic learning.

Behavioral learning theories suggest that learning occurs

in response to external events This view is expressed bytwo main approaches to learning: Classical conditioningand Instrumental conditioning, but in this case we willfocus on instrumental conditioning When we learn toperform behaviors that lead to positive outcomes andavoid those that lead to negative outcomes, we areengaging in instrumental conditioning (or operationalconditioning)

2.3 Learning

For example, when a customer chooses a drink fromHighlands Coffee Suppose a customer is consideringbuying frozen green tea when they have never tried it.When this guest tasted it and discovered that they didn'tlike the taste of frozen green tea, it meant that the personhad learned that they didn't like the taste of frozen greentea On the contrary, if this guest likes the taste of frozengreen tea, he is more likely to continue using this productnext time.

Self-concept summarizes a person's beliefs about one'sown attributes and how he or she evaluates himself interms of these qualities While your overall self-conceptmay be positive, there are definitely parts you appreciatethat are more positive than others

Gender identity is an important component ofconsumers' self-concept People often conform to theirculture's expectations of how people of their gendershould act, dress, or speak; We call these sets ofexpectations gender roles Of course, these guidelineschange over time, and they are completely differentbetween societies

Highlands Coffee's high-end brand association forbusinessmen and intellectuals has previously been

2.4 The sefl

"popularized", in order to serve a wider audience As can

be seen, the customer's gender does not affect theirpurchase, but their occupational position has moreinfluence

The customers that Highlands Coffee has been servingare middle-class consumers, office workers and youngpeople Drinking coffee here also makes customers feellike they belong to the upper class When they have theseemotions, they cannot drink coffee at any normal shopwithout a brand, but must drink at Highlands Coffeewhere the brand is located, partly to affirm their level

2.5 Lifestyles

A person's lifestyle is defined as a consumption patternthat reflects how they spend their time and money Thelifestyle marketing perspective is divided into threecategories: what they like to do, how they spend their freetime, and how they spend their disposable income

Vietnam is a country that loves coffee We can seeVietnamese people drinking coffee anywhere, from luxuryrestaurants to sidewalk plastic chairs Also from here,there are hundreds of Vietnamese coffee brandsappearing as well as world famous brands choosingVietnam as a development destination

Therefore, Highlands Coffee must always have a way to

attract customers' attention The design of the shop issimple with ordinary wooden tables and chairs, the space

is covered with warm yellow lights and appropriatedecorations, in accordance with the preferences of thecompany's target customers

Today, many office workers consider a coffee shop theirsecond office Or a gathering place for young people tomeet each other The space at Highland is alwaysdesigned in an open, spacious and airy space, the color ofHighlands Coffee is not too bright, overall bringingcomfort to customers Besides, the design of HighlandsCoffee follows a modern style, the decoration is youthfuland modern but still retains the traditional features ofVietnam This space always creates customer friendliness

influence on people's attitudes and behaviors The firstreference group (which has a direct influence onattitudes) includes: family, close friends, friendlyneighbors, colleagues Marketers often call thesereference groups A reference group can be formal orinformal in nature Individuals can be created by groups

to which they belong They will set the tone, and others willimitate their actions

For example: View reviews on social media platformstiktok, facebook Or friends drink highlands, feel it, thentell everyone, everyone will consult and buy products Onthe other hand, if the highland has a bad drink quality,people won't drink it anymore

2.7 The role of sub-culture and

culture

Vietnam is the second largest coffee exporter in theworld, so it is understandable that the consumption anddemand for coffee of Vietnamese people are not small

However, it is also coffee, but the taste of each region isdiverse into many different types For example, Saigonpeople like black coffee, iced milk coffee for refreshment.While people in the Central or the North prefer acompletely different taste with a stronger taste They

prefer hot drinks to cold drinks And often sip early in themorning to start a new day.

Besides, according to Hofstede's theory of culture,Vietnam is considered a feminine country, people areoften emotional, or want to get everyone's consensus Inthe current time when countless foreign coffee shopspenetrate the Vietnamese market, Highlands is stillemerging as a Vietnamese coffee shop Besides,Vietnamese customers especially like to drink strongcoffee In the Highlands, the brewing method and type ofcoffee are also considered by the shop to match theVietnamese coffee drinking culture Therefore, Highlands

is favored by domestic customers more than ever

2.8 Trend

Generation: GenZ has more demand for coffee shops,while older generations prefer to make coffee at home

Gender: In general, men and women are equally likely to

go to a coffee shop Women tend to spend more money,women often spend several hours, often several times aweek, in a coffee shop While men can visit daily Womenare also more likely to try new drinks or foods, while mentend to enjoy their favorite drinks that they order over andover again

III Analysis about

Regarding the product development strategy of HighlandCoffee, it can be clearly seen that this brand divides themenu into two distinct parts: Drinks and food

It can be said that Highlands Coffee is a very successfulbrand in using sensory marketing based on multi-sensory,which is shown through:

- Colors show product quality: On the logo of HighlandsCoffee, red, brown and white are used It is no coincidence

that Highlands Coffee chooses three main colors thatrepresent the value of a big brand The red colorsymbolizes the explosive passion that stimulates the tastebuds, the brown color is the characteristic color ofdelicious coffee beans that have been processed to thehighest standard, and the white color is the color of purity,bringing a sense of freshness subtle in feel.

- And next is the image of Highlands Coffee's logo, which

is delicately and meticulously designed with theappearance of mountains, land and flow in the middle.The brand has deftly asserted the natural origin of thecoffee they are using to serve customers

- At Highlands Coffee Coffee, the unique smell of coffeewill always waft in the air combined with melodious music

to make customers feel relaxed and light