Final Report Subject Marketing Management Project Highlands Coffee Premium Store.pdf

EXCLUSIVE SUMMARY: Highlands Coffee is the most well-known chain of coffee shops in Vietnam, with affordable price and suitable with Vietnamese people’s flavors.. The current target cust

Vietnam Confederation of Labor Ton Duc Thang University Faculty of Business Administration

PAI HOC TON DUC THANG TON DUC THANG UNIVERSITY FINAL REPORT Subject: MARKETING MANAGEMENT

PROJECT:

HIGHLANDS COFFEE PREMIUM STORE

Nguyen Viet Thang Nguyen Hoang Bao Tran Banh Kha Tu

Tran Bao Uyen

TEACHER’S COMMENTS

TABLE OF ASSIGNMENT

Name Student ID Pieces of work Signature

- Part 8 Nguyen Do Ha Phuong 71604254

- Power point

- Part 1, 2, 3, 4

Nguyen Viet Thang 71600133

- Edit

- Part 6

Nguyen Hoang Bao ‘Tran 71604332 -

- Presentation

- Part 5

Banh Kha Tu 71600137 -

- Presentation

- Part 7

Tran Bao Uyen 71600148

- Power point

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TABLE OF CONTENTS EXCLUSIVE SUMMARY:

CURRENT MARKETING SITUATION:

THREATS OPPOTURNITIES ANALYSIS:

OBJECTIVE AND ISSUES:

MARKETING STRATEGY: HIGHLANDS COFFEE:

ACTION PROGRAM:

BUDGET:

CONTROL

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1 EXCLUSIVE SUMMARY:

Highlands Coffee is the most well-known chain of coffee shops in Vietnam, with affordable price and suitable with Vietnamese people’s flavors The current target customers of Highlands Coffee for young and middle class with affordable price that could fit people have medium income, while other competitors opened store for high-class target customer such as Starbuck reserve, The Coffee House signature As a potential market of high-class customer, Highlands should seize the opportunity to open a store focus only high income and luxury customers

2 CURRENT MARKETING SITUATION:

Coffee shop chains are now not a strange model of business It is the reason why Highlands Coffee has more and more competitors day by day For examples, The Coffee House, Phuc Long Coffee & Tea, Starbucks Coffee, Trung Nguyen Coffee, Cong Café are now being Highlands Coffee’s trouble

‘Table 2.1: Compare between Highlands Coffee and competitors (Nationwide)

Highlands Starbucks The Coffee

Coffee Coffee House Number of shops Over 230 Nearly 40 Over 130

Coffee & Tea Phuc Long

Nearly 40

Price range

(thousand VND) 29 ~ 65 45 ~ 162 29 ~ 65 20 ~ 65 Estimated revenue

~1237 ~412 ~ 309 ~ 154 (billion VND) (2017)

Youth, Luxury, Youth, Youth, Target customers Middle class Highclass Middle class Middle class

Highlands Coffee offers 4 different product lines (coffee, freeze, tea and food) Product is one of the factors that made Highlands Coffee become more competitive against its competitor, such as Phin coffee, Phin coffee freeze, espresso coffee (Highlands, 2018) Highlands Coffee focuses on the length of product mix, for example, under the category of espresso, it is offering latte, americano, cappuccino, latte, caramel macchiato, etc Additionally, Highlands Coffee provides the beverage menu for the target audience who is non-coffee drinker, for example: golden lotus tea, peach lemongrass tea, lychee tea, peach jelly tea and especially, non-coffee freeze The variety of packaged coffee products

at Highlands Coffee will be a good suggestion for customer to make her own cup

of coffee at home with deliciously bold taste and alluring aroma or a gift attached merchandise such as Phin Inox or Mosaic Mug products for the people she cares about Highlands Coffee products are sold in three main sizes: small, medium and large

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3 THREATS OPPOTURNITIES ANALYSIS:

3.1 STRENGTH:

- The most well-known of Vietnam coffee chain

- Big market share, hold big amount of loyal customers

- Vietnamese people love drinking coffee, especially Vietnam coffee 3.2 WEAKNESS:

- Not available in small city, town

- Being the new comer of this model of business

3.3 OPPOTURNITIES:

- Highlands Coffee is a Vietnamese coffee shop chain which can encourage customers base on National pride

- Build on loyal customer base

- Upper and high class customers will bring great profits

3.4 THREATS:

- Competing with another Vietnam coffee brand and international brand such

as The Coffee House, Phuc Long, Starbucks Coffee, Trung Nguyen, Céng Café

- Being competed with another milktea, tea brands and small, local coffee shops

- Reach the new target audiences

- Big amount of investment cost

4 OBJECTIVE AND ISSUES:

4.1 ISSUE:

To be compared with competitors, it can be say that Highlands is now the strongest coffee shop chain in Viet Nam (revenue, number of coffee shops, awareness, social media ) At the present, The Coffee House and Starbucks Coffee has enhanced their business by released their luxury coffee shop — the one separated with others Hi-end customers come to a coffee shop need to be properly evaluated In order to satisfy that customer’s needs, coffee shops should be decorated and changed the serving style for “Ox ox-range, code level code” This is the reason why Highlands should release Premium store — Highlands’s luxury coffee shop

4.2 S.MLA.R.T ANALYSIS:

4.2.1 SPECIFIC:

- The target goal of Premium store is to make the revenue increase 30% per year

- Increase the awareness for the whole brand

4.2.2 MESURABLE:

- One Premium store can get from 500 to 1000 customers per day by enhancing the limit of seats and spaces more than normal Highlands’s coffee shops

- Premium store’s revenue will be about 600 ~ 800 million dong per month through loyal customers and marketing campaigns

4.2.3 ACHIEVABLE:

- With the big 2017’s revenue of Highlands (Table 2.1), Highlands surely can control the business well

- Highlands is now the strongest coffee shop chain in social media (the followers of Highlands’s fanpage is higher than The Coffee House 1.5 times and higher than Starbucks 2 times), with the suitable marketing and Management strategy, Highlands’s Premium store can get more and more customers

4.2.4 REALISTIC:

- Every business’s purpose is to bring the benefit to customers Premium store is a place that customers come and feel relax, enjoy coffee and life

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Besides that, Premium store will contribute a great deal of revenue for Highlands Coffee

In addition, this is a big chance for Highlands to get awareness from Premium store: magazines, worth of mouth

4.2.5 TIMELY:

In 5 years, Highlands’s Premium store will get the revenue increase by 50% compare with the previous years

5 MARKETING STRATEGY: HIGHLANDS COFFEE:

The target customers of Highlands Coffee for young and middle class with affordable

price that could fit people have medium income, while other competitors opened store for high-class target customer such as Starbuck reserve, The Coffee House signature As a potential market of high-class customer, Highlands should seize the opportunity to open a store focus only high income and luxury customers

5.1 TARGET MARKET:

- Age group: 18-45

- Life cycle: Young and adults

- Occupation: College students, employees, person in managerial, executive and professional positions

- Income: Middle and high income

- Social class: Middle and upper class

- Education level: Most of customers have higher education experience

5.2 POSITIONING:

Highland’s Premium store position as the place for college students and young people can hangout, study, work or meet people (friends, business partner ) For customer who wanted to enjoy the quality coffee and experience the value, the art of coffee making in fancy and unique space Vietnamese are proud of Vietnamese’s coffee

5.3 MARKETING MIX:

5.3.1 PRODUCT:

Highlands premium provide premium products to the customer with unforgettable experience Unlike other Highlands store, Highlands’s Premium serve high quality coffee, use the rarest, extraordinary, fresh and the best type of nature coffee beans, roasted coffee and premium tea leaves to offer customer This store focus on taste with quality than

quantity, so menu of drink will have espresso, cappuccino, latte, mocha using hand brew

methods and Vietnamese signature coffee phin To tea its have the best Vietnam tea leaves such as oolong tea, black tea and matcha using Vietnamese pottery teapot Beside Highlands Premium offer pastries and Vietnamese “banh mi” All of coffee and tea are contained in glass, porcelain cup and paper cup for elegant and environment protection

Focus on customer’s experimenting in coffee as an art — brewing, aging, infusing and

blending Open space where customers can watch the coffee being produced, and all sorts

of equipment for customer to share, discovery to be part of it and enjoy their beverage, coffee making process Provide to customer not just good but have to professional service, training the staff to make sure that customer have an enjoyable coffee experience

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5.3.2 PRICE:

Price is used to find out the value of a product, Highlands premium use the best quality coffee beans and training the staff efficiently and effectively Because of the quality and experience that offers, Highlands’s Premium store uses premium pricing

The store will offer 1 size only but larger than normal, one cup of coffee or tea may higher than normal stores, each cup could from 70.000VND to 150.000VND cause if the consumers get premium products they wouldn’t mind paying a little more So for them quality is the key

5.3.3 PLACE:

This store will located in central district in city center (district 1, 3 in Ho Chi Minh city), that have a lots parking lot, especially cars Customers belonging to the higher social class pay more importance in furniture design than do those coming from lower social class, Highlands premium store use modern architecture with woods like wooden chair,

bar, table and cover the store through glasses, with brown and red is the main color

The smell of fresh and roasted coffee through the space will awake customer’s olfactory The sound of coffee process, coffee making using brew, spoiling water pour into coffee in front of customer eyes in the Highlands premium store with high-quality furniture, decoration, unique design will give the best experience and satisfy to all human five sense

5.3.4 PROMOTION:

The promotional message directed to upper class have to stress status, style, taste, sophistication and what one can do with the product to express customer themselves

As such, visual social network like Facebook/Instagram represent a huge opportunity for Highlands to raise and use the national pride of Vietnamese as a brand’s awareness to target audience (concept: Vietnamese coffee and lifestyle, taste of Vietnamese coffee, )

6 ACTION PROGRAM:

6.1 CUSTOMER’S BEHAVIOR:

According to a research, Gen Z (1995 — 2000) has become trendsetters in everything from entertainment, fashion, food and drink to FMCG, even has been influencing Millennial (1980-1995) Along with the big idea “Gen Z — set the trend”, we will make a plan to promote for launching new Highlands premium store as well as reach out to young consumers as much as possible

Young customers, in general, have these characteristics:

- 6 hours and 53 minutes to browse the Web using PC and Tablet; 2 hours 33 minutes if using a mobile phone

- 2hours 39 minutes for social network

- Check email, visit social networks, use search engines (Google, Coccoc, ), find product information and listen to music, video

- Use social networks like Facebook, Youtube, FB Messenger, Google+, Zalo, Instagram, Twitter, Viber, Kakao, etc

- Tend to follow the crowd and want to express themselves, share beautiful photos, like share and comment

O Insight: “I want to enjoy the art of Vietnamese coffee culture As young generation, I’m caring and willing to pay more for café that are contributing socially and environmentally”

6.2 CAMPAIGN OBJECTIVE:

Firstly, build interest of target audiences to come to Highlands premium store whenever working or hanging out pop-up in their minds, then, attract more young people and prospects, last but not least, brand lover for Highlands Coffee 6.3 CAMPAIGN MESSAGE:

“The journey of honor the Vietnamese culture”

Highlands Coffee not only respects but also promotes traditional values of Vietnamese culture by modernizing them in many ways (using Phin, mixed traditional and modern decoration, Dong Ho art modernization campaign )

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Table 6.1: Deployment plan:

Phase Trigger Engage Amplify

Experience the

Increase the level of Understand Vietnamese culture

Objectives

awareness of preserving

Vietnamese Culture Vietnamese cultural values, sympathize in modern way at Highlands’s ( Dong Ho Painting, the difficulties that Premium store and bamboo, Tuong, Ao Dai, _ traditional crafts is spread positive lotus ) experiencing messages to the

people around Highligh ghlight Viral Clip, Magazines, i i Microsite Website ¬ Offline event, i key Microsite Website

Social network Social network,

Mobile App, KOLs Social network, E- com site, Mobile Channels ( Facebook, Youtube), Website, Search app, WOM, POS,

Website, KOLs, Viral Clip (SEO, SEM) Banner, Offline

event, KOLs Duration 4 weeks 3 weeks 2 months 2 weeks

Step 1: Let youngster curious about the campaign in order to share the viral clip ( My Tam as an brand ambassador on video ) on social network

- Cooperate with Zing.vn ( according to the ComScore's e-newspaper and website Statistics, Zing.vn has become the largest e-newspaper in Vietnam with 14.632

million visitors, accounting for 33% of the total number of regular e-readers.) to

make a platform aka microsite website for customers in order to spread the key message Customers can play online Vietnamese traditional games like O An

Quan (Mandarin square capturing), tug of war, hide and seek, blind man’s stuff

- Trend of accessing to information: online channel (social media), traditional

channel (lifestyle, business magazine)

Step 2:

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