the coffee house marketing mix 7ps strategy

INDEX OF TABLE Table 1.1 4 categories of services in VietNam 1Table 2.1 The current strengths, weaknesses and positioning strategies of competitors8Table 4.1 Core Products in The Coffee

UNIVERSITY OF FINANCE – MARKETINGHO CHI MINH CITY

The Coffee House

Marketing Mix 7P’s Strategy

JULY, 2021

INDEX

SECTION 1 INTRODUCTION……… 1

1.1 SITUATION OF THE SERVICE INDUSTRY IN THE WORLD 1

1.2 SITUATION OF THE SERVICE INDUSTRY IN VIETNAM 1

1.3 CATEGORIES OF SERVICES IN VIETNAM 1

1.4 ABOUT THE F&B IN VIET NAM 2

1.5 ABOUT THE COFFEE SHOP IN VIET NAM 3

1.6 ABOUT THE COFFEE HOUSE 5

1.7 THE COFFEE HOUSE ESSAY STRUCTURE 6

SECTION 2 MARKET & COMPETITORS ANALYSIS 72.1 MARKET ANALYSIS 7

2.2 INTERNAL CORPORATE ANALYZE 7

3.5 IDENTIFYING AND SELECTING TARGET SEGMENTS 12

3.6 POSITIONING DISTINGUISHES A BRAND FROM ITS COMPETITORS 13

SECTION 4 MARKETING MIX (7PS) STRATEGY 154.1 SERVICE PRODUCT STRATEGY 15

4.2 PRICING STRATEGY 20

4.3 DISTRIBUTION STRATEGY 22

4.4 PROMOTION STRATEGY 26

4.5 SERVICE PROCESSES MANAGEMENT 31

4.6 PHYSICAL EVIDENCE MANAGEMENT 33

INDEX OF TABLE

Table 1.1 4 categories of services in VietNam 1

Table 2.1 The current strengths, weaknesses and positioning strategies of competitors8Table 4.1 Core Products in The Coffee House 17

INDEX OF PICTURE

Picture 1.1 Some F&B brands in Vietnam2

Picture 1.2 Southeast Asia Revenue – Online Food Delivery2Picture 1.3 Channels of engagement and top sources4

Picture 3.1 The Three - Stage Model of Service Consumption9

Picture 4.1: Drinks price list 20

Picture 4.2 Price list of some cakes21

Picture 4.3 The Coffee House stores are distributed nationwide 22Picture 4.4 The Coffee House With Baemin23

Picture 4.5 The Coffee House website where to order online, blog and share exclusive recipes24Picture 4.6 The Coffee House app25

Picture 4.7 E-book: The journey to happiness is published by The Coffee House Poster27Picture 4.8 Phuong Nam – a stand-up comedian Livestream Talkshow28

Picture 4.10 Customers review about The Coffee House31

Picture 4.11 Flowchart customer service processes of The Coffee House 31Picture 4.12 Three action of blueprint service customer 32

Picture 4.13 The outside space of The Coffee House34Picture 4.14 The inside space of The Coffee House36

Picture 4.15 The inside space of The Coffee House Signature37

Picture 4.16 The Coffee House's organization model and personnel38Picture 4.17 Friendly staff 40

SECTION 1 INTRODUCTION

1.1 SITUATION OF THE SERVICE INDUSTRY IN THE WORLD

Services dominate most economies and are growing rapidly: Services account for morethan 63% of GDP worldwide, almost all economies have a substantial service sector, most newemployment is provided by service Strongest growth areas for marketing If you understand,services offer you a personal competitive advantage.

1.2 SITUATION OF THE SERVICE INDUSTRY IN VIETNAM

It can be said that the role of the service industry is extremely large in Vietnam Theservice sector helps promote and support the development of manufacturing industries, and atthe same time helps to stabilize and solidify the economic structure Above all, the serviceindustry brings benefits and strong resilience to the national economy Services account formore than 30% in Vietnam.

The service industry develops, leading to the opening of new labor sources and jobs,helping to expand the labor market quickly Besides, it also helps to exploit, utilize and enhancenatural resources, tangible and intangible cultural heritages, historical relics, and modernscientific and technical achievements.

1.3 CATEGORIES OF SERVICES IN VIETNAM

Picture 1.1 Some F&B brands in Vietnam

1.4 ABOUT THE F&B IN VIET NAM

The Vietnamese F&B market in 2020 and in the first quarter of 2021 is facing greatfluctuations, opportunities and challenges Looking at the food industry, in 2020, the spendinglevel of Vietnamese people on food and non-alcoholic beverages is 31.5 billion USD, up 12.6%over the previous year Due to the impact of the COVID-19 epidemic, this number is expectedto increase by 6.6% in 2021 to 33.7 billion USD, but then will gradually recover and keep theannual growth rate above 10%, reaching more than 47 billion USD by 2025 (according to theforecast of Fitch Solution) Those numbers show that the food and beverage market in generaland the restaurant / cafe business in particular still have a lot of potential for strong growth.

Picture 1.2 Southeast Asia Revenue – Online Food Delivery

According to the service model, there are two groups: dine-in restaurants and take-awayrestaurants The on-site restaurant market segment is divided into two types: full service andself-service The first type is typical restaurants, where customers are served at the table (fromluxury to affordable such as Hutong, 4P's pizza, rice shops, pho ), while the second typesuggests guests self-service , mainly bakeries, coffee shops or fast food restaurants, includingKFC, Lotteria, Starbucks, Highland, The Coffee House (except The Coffee House Signature),Tous Les Jours

The take-away restaurant market segment is mainly restaurants, small-scale cafes,kiosks or vending carts, serving online delivery and take-out customers like Viva To Go , MaHai Bread, Guta Cafe kiosks at the foot of office buildings…

In addition, one of the trends of model deployment in the Restaurant / cafe market in recentyears is that restaurant chains combine on-site service locations with kiosks, vending cartsserving take-out only Go to increase coverage, optimize costs and expand customer base, forexample, Viva Coffee has Viva Reserve and Viva Star Coffee for dine-in and take-out, whileViva To Go only serves takeout, or Hanoi Ng There are 2 on-site service shops and vendingcarts at various locations…

According to the development model, there are two groups: single restaurants and chainrestaurants, in which chain restaurants are further subdivided into self-owned chains andfranchised chains.While the single restaurant in the Restaurant / cafe market is mostly ownedand operated by business households, maintained at the scale of a shop, it may or may not havea brand name like pho, sticky rice, and single cafes are often found on the streets, restaurantchains are often operated in the form of businesses, with a clear financial system - businessstrategy - operation process - human resources, towards the development of many restaurantswith the same brand.

1.5 ABOUT THE COFFEE SHOP IN VIET NAM

The Coffee House, Phuc Long, and Highlands Coffee are the top 3 brands covered onsocial networks when holding more than 75% of the market share in discussing coffee shopchains Following are many domestic brands such as Ong Bau Coffee, Cong coffee, TrungNguyen, Milano, Passio, GUTA showing a strong wave of pure Vietnamese brands in thecurrent market The most popular international brand on social media is Starbucks ranked 4thwith 14.4% market share.

The share of discussion on social media contributes to reflecting the "active" level andcoverage of a brand on social media platforms, an environment that mainly focuses on theyoung customer segment of coffee shop chain brands The report also reveals the reasons forthe success of leading coffee shop chains such as The Coffee House, Highlands, Phuc Long,Starbucks in attracting and maintaining a large number of interested users to discuss on socialnetworks and activities their exciting content creation Thereby contributing to visualizing thecompetitive landscape of brands in this industry in the social media environment.

Picture 1.3 Channels of engagement and top sources

In addition, based on the common characteristics shown on social media of coffee shopchains in terms of main discussion platforms, buzz weight from the brand's fanpage, theresearch team divided the brands into 2 player segments:

+ Brand group is not strong enough: Communication focuses on fanpage to increase brandawareness, weight of buzz from fanpage accounts for more than 50%

+ Average brand group - pretty to good: The discussion weight on the fanpage is less than 30%,in addition, there are industry-specific channels such as food review, especially for brands thatoften carry out marketing campaigns according to Occasions always have the support fromKOLs and many creative tactics to interact with users, helping to spread new products / newflavors.

From the in-depth analysis of the two player segment groups above, the reportsummarizes the success formula on social media for coffee shop chain brands in general.

1.6 ABOUT THE COFFEE HOUSE

The Coffee House is a chain of coffee shops in Vietnam Despite being born late, it isgrowing faster than many competitors in the coffee market thanks to the company'sunderstanding of the market and good management After the Passio and Urban Station Coffeebrands, this is a successful example of a Vietnamese start-up in the competitive coffee chainmarket against the encroachment of foreign investors The success of The Coffee House todayis due to the business clearly defining a business model that focuses on high detail and findingthe gap in the red ocean.

“Let’s go for Coffee" - A simple invitation for us to sit together and share our own story.

At The Coffee House, we always cherish stories and uphold the value of HumanConnection The Coffee House wants to become a "Coffee House", where people cometogether and find joy and intimate sharing with fragrant and quality coffee cups.

4 values that make The Coffee House are: Sincerity, Care, Creative and Brave.Impressions on the journey:

- 2014: Launching the first store at 86-88 Cao Thang After 3 years, The Coffee House hasmore than 60 stores in Ho Chi Minh City.

- 2015: The Coffee House is available in Hanoi Up to now, the house has 14 stores in thecentral areas of Hanoi capital.

- 2017: The Coffee House is available in DaNang, BienHoa, VungTau.- 2018: The Special Year.

+ OFFICIAL OPERATION OF THE FARM

After Cau Dat Farm's Coffee division is merged into The Coffee House, the 1,650m highmountain range will be the place where we sow our dream of bringing Vietnamese coffee beansto the world.

+ LAUNCHING FLAGSHIP THE COFFEE HOUSE SIGNATURE

Where The Coffee House shares the full story of coffee passion with like-minded people.+ OFFICIALLY HILLING 100 STORE

After 4 years of launching and operating in Vietnam, The Coffee House officially surpassed thethreshold of 100 stores, with the desire "Everybody has 1 The Coffee House near home".

1.7 THE COFFEE HOUSE ESSAY STRUCTURE

Section 1: Introduction

Section 2: Market & Competitors Analysis

Section 3: Target customers analysis & Positioning StrategySection 4: Analyzing the Marketing Mix (7Ps) Strategies

• Services Product strategy• Pricing strategy

• Distribution strategy• Promotion strategy

• Service processes management• Physical evidences management• People management

Section 5: Evaluation & recommendationConclusion

Reference

SECTION 2 MARKET & COMPETITORS ANALYSIS

2.1 MARKET ANALYSIS

The current business situation of The Coffee House is quite slow because the 4thoutbreak is still happening quite complicated and serious More than two-thirds of The CoffeeHouse's stores were forced to close under a government directive, meaning a decrease in storesales In addition, serving customers for on-site use is not maximum because the number ofseats and tables and chairs must be kept to the maximum limit to prevent epidemics.

However, in the context of the complicated situation of the Covid-19 epidemic, theconsumption trends of customers change rapidly, The Coffee House is making more openmoves with the third party, Loship and Beamin The Coffee House in the latest exchange saidthat it will continue to expand cooperation with the parties, in order to increase its coverage aswell as anticipate the online consumption habits of customers.

2.2 INTERNAL CORPORATE ANALYZE

Chairman Dinh Anh Huan of The Coffee House shared that from the second wave untilnow, The Coffee House is no longer as passive as before In particular, The Coffee Housealways has short-term plans to respond to Covid and is ready to adjust monthly, but still sticksto its 5-year long-term plans to continue to bring a coffee journey across the world forcustomers anywhere, at the store, at home or online.

2.3 COMPETITOR ANALYSIS

- Direct competitors: The coffee house's direct competitors come from the same brands

such as Urban Station, Starbuck, Passio, Highland Coffee, Phuc Long However, in terms ofspace standards, The Coffee House is superior to the competition because the space to enjoyand work is very airy and wide, close design and create a sense of harmony between customersand customers, customers with employees and affordable prices accompanied by diverseproducts,

- Indirect competitors: The Coffee House also has competitors from alternative products

such as famous milk tea brands such as Cong, KOI, The Alley, TocoToco, Besides, in themarket, there are a variety of beverage products rich in genres, models, taste can be mentionedas C2, green tea O degree, Nescafe, Vinacafe, G7 are strongly competitive products in theyouth segment market But with the characteristics of The Coffee House with the direction ofcoffee to enjoy, it will be less competitive with competitors in this market.

HighlandPhuc LongStarbuck

35.000 – 65.000VND

70.000 – 150.000VNDStren

- Using clean, pureVietnamese ingredients, combined with a unique recipe, rich in Vietnamesecoffee.

- Highlands coffeeshops are located in beautiful locations, such as shopping malls, buildings, offices

- Quality products, bold tea flavor, suitable for The Vietnamese market, which has a tradition of enjoying tea since ancient times.

- Variety of products- Location in stores across the country

- Strong brand image

- Strong financial performance.

- Expanded international supply chain

Beverage productsare not diverse

- Parking lots are limited

- Uneven service quality

- High price compared to Vietnamese income

- Some unique products that do not cons match market culture standardsCurre

nt

- Connecting traditional and modern values, spreading the spirit of Vietnamese pridein Vietnamese goods.

- Create a

Vietnamese brand with the class and quality shown in each product

- World-class, high-end coffee brand

Table 2.1 analysis of the current strengths, weaknesses and positioning strategies of competitors

3.2 SOME OF THE TARGET CUSTOMER’S RELEVANT BEHAVIOR

Picture 3.1 The Three - Stage Model of Service Consumption

3.2.1 Pre-purchase StageNeed arousal

Customers will feel "craving" for a drink to quench their thirst after lunch, after school,or simply want to drink the familiar taste of water Or customers are stimulated to eat becausethey accidentally see advertising programs, discounts of drink shops on the street or on the

Beamin, Grab Food, Delivery app Next, customers will search for information about drinks tosatisfy their needs.

Information search

* Customers will search for information and choose drink shops to satisfy their needs.

* At that time, customers will see "Evoked set" of shops that have been experienced in the pastor suggested on Facebook, Instagram, about shops such as The Coffee House, CheeseCoffee, The Alley, with a variety of drinks about coffee, tea, or milk tea to satisfy the needfor refreshment but also to chat, exchange, or study and work.

* In order to make a decision to choose drinks for themselves, customers will evaluatealternative bars

Evaluation of alternatives

* Review supplier information: Customers will evaluate the information provided byrestaurants such as on advertisements, websites, banners, or on food delivery service apps.* Review information from third parties: Experiences, reviews, reviews, comments on therestaurant's website, or drink review groups on Facebook, Instagram will have a great impacton customers' decisions because they are genuine reviews and real experiences of othercustomers.

* Perceived risk:

Customers will realize the risks when using the service:

- Financial: The financial risk that customers are concerned about can be: Will it cost me more

money to sit for a few hours at the bar? Do I have to pay extra for parking? Will my identity becompromised when paying for drinks with an ATM card?

- Temporal: Are customers worried about having to wait in line for a table when they arrive at

the restaurant? Or do customers need to spend a lot of time waiting for drinks?

- Physical: Will drinking the bar's soft drink make my stomach ache? Or is the air in the shop

disinfected clean, not harmful to health?

Psychological:Is it possible that my motorbike is properly guarded while I drink in the bar? Sensory: Will I be disturbed by the noise in the shop while studying and working? Is the

-temperature in the bar too low for me to stand?So to handle those risks, customers should:

Looking for reliable information about reputable pubs, quality drinks and good service here,suitable for students, students, working people with places to study and work, exchange suchas The Alley, The Coffee House, We's Corner, Cheese Coffee… Either go to the shops youhave experienced in the past or search for quality reviews from the internet.

Purchase Decision

After choosing a bar to drink between the list of substitute products and handling therisks that customers anticipate Next, the customer chooses a restaurant and uses the service.

3.2.2 Service Encounter Stage

A service encounter is a period of time during which a customer interacts directly with aservice provider

• Service Encounter Are “Moments of Truth”

Rochard Normann borrowed the “moment of truth” metaphor from bullfighting to showthe importance of contact points with customers When customers have chosen the shop andcome to The Coffee House, it is the place to enjoy drinking and using the service of the shop.At that time, they themselves can directly feel about the quality of drinks, the style andatmosphere of the bar, the music played in the bar and how the staff serves and communicateswith customers That helps customers eliminate the risks that they previously suspected andhelps customers experience the service at The Coffee House in the best way.

* Service Encounter Range from High Contact to Low Contact

When customers choose The Coffee House, they will use "high-contact service" Usinga high contact service entails interaction throughout service delivery between customers and theorganization When customers come to The Coffee House, customers will order directly withthe staff and choose their seats The staff will then bring the drinks directly to the customer Inthe process of using the service at The Coffee House, if there is any problem with the customerat the shop, it will be handled directly by the staff at that time.

3.3.3 Post Encounter Stage

* Satisfaction: After meeting the service at The Coffee House and comparing it with your

expectations, If The Coffee House serves customers with a positive, polite, attentive attitude tocustomers Solve customer problems enthusiastically and quickly Besides, the space is suitablefor the purpose of customers to study and work, exchange and exchange If the actual serviceexperience is at an acceptable level or higher than the customer's expectations, the customerwill be very satisfied and may become a loyal customer later on If the service at The CoffeeHouse is very bad, the drinks are not quality compared to the price, the staff is not professional,the customers will have a bad impression and choose another shop in the future.

* Service Expectations

Before coming to The Coffee House to use the service, customers have set expectationsabout the service of the restaurant It is possible to buy good, quality drinks at a reasonableprice Sitting in a cool, comfortable luxurious space to be able to fulfill the customer's ownpurpose But if in reality, the shop could not serve the maximum service expectations ofcustomers, for example, The Coffee House that day was too crowded, the space in the noisy barcould not focus on working to the maximum, but compensated for it in there delicious drinkingwater and enthusiastic service, staff to help customers That helps not under zone tolerant ofcustomers.

* Customer Delight

Customers will be delighted if The Coffee House's service exceeds their expectations.Everything they meet at the shop is great such as The Coffee House playing the right songs ofcustomers or the quiet and cool atmosphere, comfortable working, professionally trained staff.But if The Coffee House's service goes down, customers will suffer and it will be difficult tomake them satisfied again Therefore, it is best to consistently raise your service level

3.4 POSITIONING

The Coffee House chooses Service Focused to focus on serving beverages, mainlycoffee and tea, and serving a suitable space for work and study.

Positioning of The Coffee House for:

+ Customers: The Coffee House is home, a place to relax, work and chat.

+ Products: The Coffee House produces and distributes quality coffee products and reliableservices at reasonable prices to consumers

+ Market: The Coffee House wishes to bring Vietnamese coffee products not only to competein the Asian market but also the world market, in the immediate future, the domestic andChinese markets.

3.5 IDENTIFYING AND SELECTING TARGET SEGMENTS

When the coffee market was gradually saturated, The Coffee House launched later thanother competitors in F&B To be able to make a difference in the hearts of consumers, TheCoffee House focuses on services to reach customers and has existed until now In the age oftechnology, consumers not only go to coffee shops to drink, but they spend a moderate amountof money to drink in a luxurious, professional space that is ideal for working Fully servicedwifi to use smartphone or laptop to work, listen to relaxing music at the bar, or a comfortableplace to socialize with friends.

The Coffee House's customers are office workers and students Because they are allknowledgeable people, they are very strict in the source of ingredients for drinks and productquality To achieve that, The Coffee House is committed to quality and enthusiasm in eachproduct The input ingredients are carefully selected and the bartenders are highly trained andqualified.

3.6 POSITIONING DISTINGUISHES A BRAND FROM ITS COMPETITORS

Before launching the market, The Coffee House researched the market and discoveredthat the mid-range coffee shop segment with the price of 60,000-80,000 VND is quitesurprising with the spending level of Vietnamese users Stores with high prices can only dobusiness with the trend, but it is difficult to become a long-term focus in the hearts ofconsumers, for example, The Alley black sugar pearl milk tea with the price of 65,000 - 75,000Vnd for small and large sizes The Alley rose to fame thanks to that product, but it was only hotfor a while So how do customers have both: optimal coffee enjoyment space and reasonableprices? That's why The Coffee House was born.

Determining the direction of the restaurant is to develop services and customerexperience is the guideline to operate the system The Coffee House focuses on trainingfriendly, enthusiastic staff who are always ready to chat and share with customers Besides, it isindispensable for baristas who are passionate and devoted to creating creative drinks The drinkthat has made an impression in the hearts of customers who have experienced it is the OrangeLemongrass Peach Tea, which is focused on every detail from the decoration to the banner

hanging in front of the shop that attracts the first sight of customers row The taste isenchanting, full of differences compared to other shops.

Direct competitors to The Coffee House come from brands in the same industry such asUrban Station, Starbuck, Passio, Highland Coffee, Phuc Long, etc However, in terms of spacestandards, The Coffee House is superior to its competitors by the space to enjoy and work isvery comfortable, airy and spacious, designed to be close and create a comfortable feeling ofharmony between customers and employees, the price must be taken care of with a variety ofproducts

Every employee in the Coffee House knows what their role is to be able to provide thebest service to customers Helping customers feel when coming to The Coffee House is their"third home", coming to experience, exchange, relieve stress and work

Picture 3.2 Competitors map of The Coffee House

SECTION 4 MARKETING MIX (7PS) STRATEGY

4.1 SERVICE PRODUCT STRATEGY

1 Core Product

Coffee:

+ Americano+ White Coffee+ Black Coffee+ Milk Coffee+ Cappuccino+ Caramel Macchiato+ Cold Brew Phuc Bon Tu+ Cold Brew Fresh Milk+ Cold Brew

+ Express+ Milk+ Mocha.

Package, Instant Coffee:

+ Soluble Iced Milk Coffee+ Rich Finish Coffee+ Peak Flavor Coffee+ Phin Coffee+ Arabica Coffee

Fruit Tea – Milk Tea:

+ Chia Seeds Long Label Tea+ Lotus Seed Tea

+ Macchiato Matcha Tea+ Lemongrass Peach Tea

+ Pearl Milk Tea+ Phuc Bon Tu Tea+ Macchiato Black Tea+ Pink Tea Latte Macchiato+ Pearl Milk Tea Pink.

Ice Grinder Matcha Chocolate:

+ Ground Lemongrass+ Iced Coffee

+ Ground Blueberrry peach + Phuc Bon Cam Ice Grinder+ Blueberry Smoothie+ Ground Ice Cookies+ Matcha Ice Grinder+ Matcha Latte+ Chocolate+ Yogurt Melons

Cake & Snack:

+ Quail Egg Dumplings+ Cheese Scrub Bread+ Bread Sticks+ Salted Egg Orchid+ Freshly Dried Orange+ Cotton Elder Rice+ Croissant Salted Egg+ Garlic Chili Peanuts+ Golden Thing Honey+ Chicken Shredded Lemon Leaves

+ Smoked Dried Pork+ Dried Jackfruit

+ Chocolate Ice Cream Mochi+ Mochi Coconut Ice Cream+ Matcha Cream Mochi+ Mochi Cream Phuc Bon Tu+ Mochi Ice Cream Mango+ Mochi Kim Blueberry+ Chocolate Bear Mousse

+ Mousse Matcha+ Mousse Passion Cheese+ Mousse red Velvet+ Mousse Tiramisu+ Ginger Chocolate

Merchandis:

+ Boat Stainless Stell Heat Retainer+ 500 ml Stainless Steel Heat Retainer

+ Pineapple Stainless Steel Heat Retainer

+ Black And White Stainless Steel Heat Retainer 500ml

+ Orange Stainless Steel Heat Retainer 473ml

+ Stainless Steel Straw Set+ Porcelain Cup The Coffee House Danang

+ Porcelain Cup The Coffee House Ripple

+ Porcelain Cup The Coffee House Hanoi

+ Porcelain Cup The Coffee House Hortizontal Stripe

+ Porcelain Cup The Coffee House HCM City

+ Ly from Fram To Cup 300ml+ Cup Form Farm To Cup 400ml+ Stainless Steel Glass Black Straws+ Stainless Steel Glass Green Straws+ Stainless Steel Glass Blue Straws+ Plastic Glass 2 Layers Boat, Plastic Glass 2 Layers Pineapple+ Canvas Bags DaNang+ Hanoi Canvas Bag+ SaiGon Canvas Bag+ Sung Tuc House Canvas Bag

Table 4.1 Core Products in The Coffee House

New Product: Cans of iced milk coffee.

2 Supplementary Services (The Flower of Service)+ Facilitating Supplementary Services:

- Information: The Coffee House is public information on site, and the informationabout service hours, prices, warnings, conditions of sale, notification of changes,documentation.

- Order Taking: The Coffee House has an app for loyal customers, and we can havememberships and subscription services In Order Entry, the Coffee House has 2 options Option1 is on-site order fulfillment to the staff Option 2 is telephone, web order or app such as Grab,Baemin The Reservations and Check-in isn’t in a normal store But in The Coffee HouseSignature, we can book rooms for the meeting, professional appointments.

- Billing: We always have a bill for individual transactions And we need this bill toreceive the product If we order by app, we can help the e-invoice.

- Payment: The coffee house has payment services to support customers such as cardpayment, momo, if customers do not use cash Direct to Staff for Cash handling and changegiving + Check Handling, Credit/ Charge/Debit Card Handling + Coupon redemption.Moreover, the customer can sign-in this account in a mobile App to payment by AutomatedSystems.

+ Enhancing Supplementary Services:

- Consultation:The staff in The Coffee House always do personal counseling becausethey are trained very well.

- Hospitality: When you start to order, the staff is always greeting you In food andbeverages quality is good Toilets and washrooms are clean Waiting facilities are very close,make you feel at home, very comfortable.

- Safekeeping: The security personnel in The Coffee House are very friendly, makingyou feel good when you make contact with the first person Parking for vehicles and valetparking is very good too.

- Exceptions: Customer reviews or feedback through the app, The Coffee House callsdirectly to apologize to the customer.

3 Branding Service Product & Experience

The Coffee House is built to Single brand to cover all products and services.

4 A Hierarchy Of New Service Categories

a) Style changes: The Coffee House's removal process makes the customer self service.

And comeback the old process is the staff will bring the product to the customer Bringingwater to the table for customers makes it more difficult to train staff and requires more staff toserve, but this makes customers feel more comfortable and saves more time than self service.

b) Service improvements: Place the straw in the plastic case Still serving straws for

customers However, if the customer does not use it, it can still be kept for the next time Thiswill satisfy customers who need to use straws And at the same time make customers who wantto protect the environment satisfied.

c) Supplementary service innovations: The staff will have the additional task of

suggesting customers about the items that are sold regularly as well as instructing how to payand receive products These are issues that are loved by customers In addition, place filteredwater in a convenient location so that customers can conveniently get filtered water by self-service.

d) Process-line extensions: Regarding packaging, The Coffee House has changed its

packaging many times for the convenience of customers The Coffee House is a regular papercup with a plastic lid, shared for all items Next, is a cup with a heat guide, combined with a

special plastic lid for hot products Currently, the most popular is a large-capacity plastic cupwith a heart lid, suitable for customers using the Macchiato line.

e) Product-line extensions: In addition to the popular coffee product, the brand also

develops a variety of different products, such as milk tea, ice-blended The Coffee House hasdiversified Macchiato versions for users to have more choices, especially young people Inaddition, there are accompanying fast food products such as bread As well as souvenirs fortourists This has brought many alternatives for customers, when coming to The Coffee House,greatly contributing to customer retention.

f) Major process innovations: Due to Covid-19, The Coffee House has added the

delivery service by the employees themselves, not through third-party channels as before Thishelps the brand to be more marked In addition, the content of the Coffee House always takesthe customer's story as the center, instead of focusing on the product, not all of it revolvesaround: orange lemongrass peach tea, milk coffee, but besides Those are the first thoughtsrecorded “Home” is not a place to come and go, “Home” is a place where you are heard andshared "Home" is also a place to capture the emotions of you and your loved ones Therefore,the images and posts of the sharing and confiding columns, "Humans of The Coffee House" arevery interested in the investment brand All activities in The Coffee House's Marketingcommunication strategy are closely aligned with the "Home" positioning and insight from itstarget audience.

g) Major Service Innovations: I think the new product - Cans of iced milk coffee will

be changed a little to The Coffee House Someone thinks the product of The Coffee House isn’tspecial, but the new product can help people to reserve the drink for more time In addition,The Coffee House broke the way with "Fried fish skin" and "Dried chicken", these snacks werea breakthrough and very attracted young people to The Coffee House.

4.2 PRICING STRATEGY

Like product value, the value inherent in payments is central to marketing's role infacilitating a value exchange between the firm and its customers For suppliers, pricing strategyis the financial mechanism through which income is generated to offset the costs of providingservice and to create a surplus for profits Pricing strategy often is highly dynamic, with pricelevels adjusted over time according to such factors as type of customer, time and place ofdelivery, level of demand, and available capacity.

Customers, by contrast, see price as a key part of the costs they must incur to obtain desiredbenefits To calculate whether a particular service is "worth it," they may go beyond just moneyand assess the outlays of their time and effort Service marketers, therefore, must not only setprices that target customers are willing and able to pay, but also understand-and seek tominimize, where possible other burdensome outlays that customers incur in using the service.These outlays may include additional monetary costs (such as travel expenses to a servicelocation), time expenditures, unwanted mental and physical effort, and exposure to negativesensory experiences.

4.2.1 Price list of some products at The Coffee House:

Picture 4.1 Drinks price list

Picture 4.2 Price list of some cakes

4.2.2 The Coffee House's pricing strategy

At The Coffee House, when entering the Vietnamese coffee industry, the marketpenetration pricing strategy was applied At first when entering the market, The Coffee Housedid not matter at first, but this helped to attract many potential customers After fullypenetrating the market, The Coffee House gradually won the hearts of customers and profitsbegan to increase.

Coffee House's pricing strategy is given when putting yourself in the role of thecustomer Businesses have raised many questions: How much should customers pay toexperience at a cafe like this? Is the amount of money the customer spends reasonable? Is thecost commensurate with what customers enjoy in terms of beverage quality and serviceexperience? Can they afford to go to that cafe often ?

Today, the Vietnamese coffee market is divided into many clear segments and eachsegment has large enterprises participating The segment for office workers includes: HighlandsCoffee, Trung Nguyen, Starbucks Coffee, The Coffee Bean, The youth segment includes:Urban Station and Passio, Although the above coffee brands are almost the same number ofstores, they have different prices The average price of Urban Station, Passio Coffee rangesfrom 15,000 to 40,000 VND The price of HighLands Coffee, Starbucks Coffee, is from40,000 to more than 90,000 VND The Coffee House is aimed at customers who are working,traveling, and students who like to experience luxury coffee shops with localized prices rangingfrom 30,000 to 60,000 VND, which is reasonable enough to attract customers keep customerscoming back often.

The Coffee House uses a very precise entry Launching strategy This can be seen as a"right person at the right time" strategy Customers do not need to spend expensive prices to sitand drink coffee at Starbucks, just go to The Coffee House with an extremely affordable pricefor all customers from 30,000 to 60,000 VND to still experience the coffee shop Western,modern way to meet young people's experience It is for this reason that the market penetrationstrategy has been carefully researched by The Coffee House.

The Coffee House uses a completely right pricing strategy Customers can experience aspacious, comfortable and sophisticated space - not inferior to foreign "big men" like Starbucksor The Coffee Bean with only the price of 30,000 - 60,000 VND This is one reason why manyyoung people become loyal "fans" of this chain of stores.

4.3 DISTRIBUTION STRATEGY

4.3.1 Distribution in a service’s context

The Coffee House uses a direct sales distribution channel Customers come directly tothe shop to use products and services In addition to providing core products of coffee and tea,The Coffee House's services focus on satisfying customers in the best way Staff are ready toprovide payment and billing information, are always friendly and keep customers safe whencoming to The Coffee House.

4.3.2 Place and Time Decision

A mark of love deeply in the minds of customers, and a curious feature is thecontinuous concentration of The Coffee House, appearing densely in big cities Up to now,there have been 183 stores spread across the country and are most concentrated in Ho ChiMinh City and Hanoi Not only impressive with its dense presence in major cities, the brandalso earns points thanks to choosing a location that is very suitable for target customers Thestores of The Coffee House are always located in a location that is easy to find, easy to park,front of the center of the districts and customers can enjoy the eye-catching outside view.

Picture 4.3 The Coffee House stores are distributed nationwide

Besides, The Coffee House serves customers from 7.00 - 21.00 every day, even on NewYear's Day and festivals, they focus on serving customers In addition, The Coffee House alsooperates its own professional delivery team from the Hotline operator to the inner city deliverystaff via thecoffeehouse.com website and hotline.

Besides, currently due to the fourth wave of Covid 19 epidemic, The Coffee House iscooperating with intermediaries, Loship and Baemin, to expand coverage This policy is verywell implemented, adapting very quickly to the current situation of the market and the tendencyof customers to gradually switch to buying more online.

Picture 4.4 The Coffee House With Baemin

4.3.3 Delivering Service in Cyberspace

The Coffee House also owns a website thecoffeehouse.com full of information forcustomers The website is built extremely well with full menus, product images, prices andcustomers can order through that website Besides, The Coffee House's website also has a blogin which sharing about the journey of coffee beans from farm to cup, ways to prepare coffeefilter, latte, capuchino, cold brew of the coffee house get high.

Picture 4.5 The Coffee House website where to order online, blog and share exclusive recipes

To be able to serve customers thoughtfully and leave an impression in the hearts ofcustomers The Coffee House always builds 4 values that are what makes its name: Sinceritywith the "Delivering Happiness" campaign, Caring for customers with the philosophy of