Task To Design A Marketing Strategy For A Company Brand Of Your Choice For A Specific Market.pdf

Business Overview Highlands Coffee is a well-known coffee brand in Vietnam, established in 1998 by two Vietnamese-American entrepreneurs David Thai and Johnny... With the combination of

ACADEMY OF POLICY AND DEVELOPMENT

ASIGNMENT PRINCIPLES OF MARKETING Task: “To design a marketing strategy for a company/ brand of your choice for a specific market” (3500 words)

LECTURER: MRS NGUYEN THI BICH NGOC

NGUYEN THU HOAI 7123106542

PHAM TOAN DINH 7123106527

DINH LONG HAI 7123402508

CAO TUE THANH 7123106502

CLASS: PRINCIPLE OF MARKETING 02

INTERNATONAL SCHOOL OF ECONOMY AND FINANCE

HA NOI - 2023

A.Introduction 2

I Business Overview 2

III Reputation & Sucesss 3

B Pestle and Competitors analysis 3

I PESTLE ANALYSIS 3

II COMPETITORS ANALYSIS 4

C MARKET SEGMENTATION, TARGETING AND POSITIONING 5

I MARKET SEGMENTATION 5

II Target 6

III Positioning 6

D GENERAL STRATEGY & COMPETITIVE ADVANTAGE 6

I Bring the product closer to the retail market 6

II.Competitive advantage 7

E MARKETING MIX 7

I Product 7

II.Pricing 7

III.Promotion 8

IV.Places 8

F CONCLUSION 9

G REFERENCES 9

A.Introduction (Huy)

I Business Overview

Highlands Coffee is a well-known coffee brand in Vietnam, established

in 1998 by two Vietnamese-American entrepreneurs David Thai and Johnny

Adamic With the combination of the distinctive taste of Vietnamese coffee with modern Western style, Highlands Coffee has quickly become one of the most beloved and trusted coffee brands in Vietnam

Highlands Coffee serve a wide range of coffee-based beverages, promote Vietnamese coffee culture, and offer franchising opportunities Highlands Coffee focuses on social and environmental responsibility, supporting local farmers and sustainable sourcing practices

Vision: Become the most beloved coffee and tea brand in Vietnam and proudly share it with the world

Mission: The mission of Highlands Coffee is to achieve the top position

in terms of Vietnamese coffee flavors and modern café style, offering reasonable prices and being ready to serve all customers anytime, anywhere

1 Value proposition: Highland Coffee focuses on providing a high-quality coffee experience, using carefully selected Arabica coffee from renowned coffee-growing regions around the world They create a comfortable and cozy space for customers to relax and enjoy their coffee

2 Target customers: Highland Coffee targets customers who appreciate and value quality coffee This can include young customers, workers, students, or other customer groups with a desire for coffee enjoyment

3 Distribution channels: Highland Coffee has a network of coffee shops across major cities and shopping centers in Vietnam Additionally, they offer delivery services and accept online orders to reach customers conveniently

4 Customer relationships: Highland Coffee establishes customer relationships by creating a comfortable environment and delivering professional service Their staff is trained to provide the best service and foster positive communication and interaction with customers

5 Revenue sources: Highland Coffee's main revenue comes from selling coffee and other beverages, including hot coffee, iced coffee,

cappuccino, latte, and various other drinks They also offer additional products such as pastries, bread, and snacks to generate additional income

6 Cost structure: Highland Coffee considers costs related to coffee shop operations, including rent, coffee bean procurement, staff expenses, marketing, and advertising, as well as other support costs

III Reputation & Sucesss

The company has expanded its presence beyond Vietnam and has opened stores in various international locations, including Laos, Cambodia, and Singapore Highlands Coffee is the leading coffee chain in Vietnam, with over 430 outlets across the country The brand has received numerous awards and recognition for its contribution to the coffee industry in Vietnam

IV Product

B Pestle and Competitors analysis (Hoài)

I PESTLE ANALYSIS

1 Political

The legal system of our country has policies to protect legitimate rights and interests and many policies to support the development of coffee resources, creating great conditions for domestic businesses to develop

2 Economic

Vietnam's coffee market is wide, our economy has grown over the years, creating conditions for further enhancing and development

Consumers' income increases in proportion to their demands, which makes the coffee business more opportunities

3 Sociocultural

The trend of drinking coffee is becoming more and more popular, and many cafes have sprung up to serve different customers For the coffee industry, a market with a large population and a habit of drinking coffee as much as Vietnam, this is a potential market

4 Technological

National standards for coffee were fully set up to form a basis for market transactions Moreover, the technology of instant coffee is updated in Vietnam Easily access technology, import more modern equipment, improve quality and productivity

5 Legal

Relevant laws that Highlands Coffee needs to comply with such as Investment Law, Enterprise Law, Labor Law, Antitrust Law, Anti-Dumping Law

6 Political

Modern technological process of waste treatment meets permissible standards The production process is also strictly controlled to ensure food safety and hygiene

II COMPETITORS ANALYSIS

1 The coffee house

Taste

Both have a common element in their beverages, which is tea and coffee However, the coffee at The Coffee House is milder and less robust compared to the coffee at Hinglands Coffee

Strength and weakness

Strengths: The Coffee House targets more affordable markets, attracting

a larger customer base Weaknesses: It does not have as wide of a coverage as Highlands Coffee

2 Nescafe

Taste

With a creative blend of light brown hues, subtle aroma, slightly bitter taste, and bold flavor, this coffee line is suitable for a wide range of users, especially those who prefer a mildly bitter coffee It comes at an extremely affordable price point

Strength and Weakness

Strengths: Popular and high reputation worldwide Weaknesses:Nestle indeed has a wide range of products, and this particular product is not their main focus

3 Boss Coffee

Strengths: Popular in Japan market Weaknesses: This product is a newcomer to the market, so it is not widely known yet

C MARKET SEGMENTATION, TARGETING AND

POSITIONING (Định)

I MARKET SEGMENTATION

1 Market Segmentation

Highlands Coffee can target customers living in major urban centers such as Ha Noi, HCM city, Hai Phong, Da Nang, Can Tho, etc

These customers often have a fast-paced lifestyle and may seek take-away coffee options for convenience during their daily commutes or busy schedules

2 Demographic Segmentation

Highlands Coffee can focus on targeting young professionals and working adults (20s to 40s) who embrace a fast-paced lifestyle and seek for a quick coffee fix

This segment values the combination of convenience and a positive coffee-drinking experience while being on the move

3 Behavioral Segmentation

Offering introductory promotions, discounts, or complimentary items to incentivize trial and encourage first-time visits

Highlands Coffee can also focus on customers' digital behaviors, such

as engagement on social media, online reviews, or mobile app usage

It helps identify tech-savvy customers who are likely to respond well to digital marketing efforts, personalized mobile app experiences, or targeted social media campaigns Highlands Coffee can engage with this segment through targeted digital advertisements, exclusive app promotions, or influencer collaborations

4 Demographic Segmentation

Highlands Coffee can position itself as a brand that embraces

Vietnamese culture, offering traditional Vietnamese coffee brewing methods, cultural decor, and incorporating local ingredients in specialty drinks

Highlands Coffee can appeal to individuals who prioritize organic and sustainably sourced products Offering organic coffee options and

environmentally friendly practices can resonate with this segment

II Target

Based on the market segmentation, Highlands coffee can target young, urban, on-the-go individuals who value convenience and quality in their coffee The target market can also include frequent coffee drinkers who are looking for a more convenient way to enjoy their favorite coffee

III Positioning

Highlands coffee can position itself as a premium, convenient and quality coffee option for busy individuals who lead a fast-paced lifestyle Consider itself as an innovative and forward-thinking brand by being one of the first in the Vietnamese market to offer coffee in a can

D GENERAL STRATEGY & COMPETITIVE ADVANTAGE (Hải)

I Bring the product closer to the retail market

First up is direct distribution, highlands coffee has more than 300 stores spread around the world so we own a large number of manufacturer-owned stores that will sell directly to customers

Another Channel that calls key accounts includes restaurants, hotels, and schools, these units directly order from Highland coffee producers Next, with indirect distribution, we have 3 main channels of operation

Next, with indirect distribution, we have 3 main channels of operation The first channel is big supermarkets like big c, metro, Aeon Mall, Will order directly with Highland coffee producer

The second channel is the manufacturer's representatives or sales branches The essence of this channel is that highland coffee manages its distributors through the requirements of responsibilities and obligations of both parties

There will be a requirement for the number of points of sale and the number of sales staff, in each region the number of distributors is located

depending on the size of the customer Distributors will operate on their own scale and deliver goods to wholesalers and local convenience stores

The third channel is wholesalers will source more goods directly from highland producers and then resell them to small local grocery stores or online retailers We also sell online using e-commerce platforms such as Shopee, Lazada, and sell through the company's own website

II.Competitive advantage

Highland is a brand that has existed for a long time and has existed for more than two decades in the Vietnamese market and around the world From the first days of launch, the management stages are strictly controlled to help build a professional image in the eyes of customers

Highland Coffee's drinks are suitable for Vietnamese tastes, especially coffee Unlike other coffee brands in the world (such as Starbucks), Highland's coffee has a rich flavor The coffee beans are also carefully selected by hand,

so the quality is always guaranteed

Compared with canned coffee brands on the market such as Nestcafe, Birdy, The coffee house Highland Caffee is more familiar to young people and office workers Creating such a brand image makes choosing to buy coffee from Highlands coffee make me feel more young and energetic than buying coffee from other brands

E MARKETING MIX (Quý)

I Product

Highland Coffee’s milk coffee can is a refreshing beverage that brings energy to the consumers to stay awake and focused during the day The product

is packed in a small box with a volume of 185ml and large cans of 235ml 6 cans of 1 batch The unique thing about this product is made from selected coffee beans, blended with milk and heavy cream Unlike other coffee brands, Highland's coffee has been mixed between 2 types of coffee beans: arabica and robusta, which creates a gentle taste, leave a mark but is also not picky about drinkers

With a compact, ergonomic design, the consumers will not have to spend too much time making a cup of coffee themselves The brand name has been promoting it as a product to be used at any time, anywhere including during school, work, sports, or community activities

In Vietnam, Highland's canned milk coffee is sold with prices ranging from 76000 VND This is a mid-range price, suitable for the spending level of employees, students, and students This price is also not too expensive or too cheap compared to canned coffee products on the market such as Birdy and Nestle Highland also regularly has preferential sales seasons with attractive prices or maybe lower than the market price to attract customers when they want to enjoy a delicious and convenient cup of coffee

This price is also not too expensive or too cheap compared to canned coffee products on the market such as Birdy and Nestle Highland also regularly has preferential sales seasons with attractive prices or maybe lower than the market price to attract customers when they want to enjoy a delicious and convenient cup of coffee

III.Promotion

Canned milk coffee is suitable for everyone, from middle-aged to young adults, public employees to students and students For the product to reach a wide range of users, Highland has displayed signs and posters advertising products directly at the store, across systems and retailers The brand has also used social platforms (Instagram, YouTube, etc.), especially Facebook with more than 1.1 million people to be able to promote products in the widest way Recently, Highland also launched a new campaign called

"#breakfastwithhighsland "How complete is the morning without a rich glass

of Iced Milk Coffee?" The brand wants to target the habit of consuming coffee for breakfast of customers In addition, Highland also attracts customers to its products by inviting KOLs, and celebrities to promote its products

As a big brand, however, Highland cannot ignore promotions, on the contrary, it also launches attractive promotions such as buy 3 get 1 free, buy 1 get 2, or the company's preferential deals combined with e-commerce platforms such as shoppee, lazada, TikTok shop, etc

IV.Places

Highland now has more than 300 stores covering 24 provinces in Vietnam The brand is mainly concentrated in big cities and central districts – where there is a high population density and convenient transportation system Highlands pays great attention to the quality of the premises.Often Highland's premises meet the criteria: have space, beautiful viewing angles,

near famous gatherings, in malls, near the crossroads, population density and convenient transportation system

In addition to the fact that consumers can easily buy products in Convenience stores (Circle K), Supermarkets (Winmart), Hypermarkets (BigC), vending machines, and retail locations near schools, offices, or tourist areas They can also find products through beverage shipping agencies such as Baemin, Grab,

F CONCLUSION (Thanh)

Highlands Coffee is doing well on its mission in the Vietnamese market However, the potential drawbacks or negative aspects of drinking coffee include caffeine dependency, sleep disruption, potential health concerns with excessive consumption, tooth discoloration and staining, acidity-related digestive discomfort, and dietary considerations due to additives It's important

to be aware of these factors and practice moderation when consuming coffee to promote a healthier relationship with the beverage

The provision of plastic utensils and nylon bags has caused controversy and impacted the company's brand image The business activities of its parent company, Viet Thai, have also had a significant influence on Highland Coffee However, the company has started to stabilize its revenue and make efforts to address these weaknesses

In conclusion, a strong marketing strategy is crucial for the success of Highlands Coffee It involves understanding the target audience, emphasizing unique selling points, and utilizing both traditional and digital marketing channels Key elements include a compelling brand story, highlighting quality and flavors, and showcasing sustainability Building customer relationships, monitoring effectiveness, and staying adaptable are also important A well-crafted strategy drives brand awareness, customer acquisition, and long-term loyalty in the competitive coffee industry

G REFERENCES

"Highlands Coffee và hành trình 20 năm để niểm tự hào đất Việt vươn xa" retrieve from https://vnexpress.net/highlands-coffee-va-hanh-trinh-20-nam-de-niem-tu-hao-dat-viet-vuon-xa-4025338.html

"Highlands Coffee tự hào sinh ra từ đất Việt, 1999" retrieve from