brand extension strategy trung nguyen legend

Brand's market position Trung Nguyen holds an important position in Vietnam's coffee industry, with a strong presence in all three market segments: instant coffee, roasted and ground cof

VIETNAM NATIONAL UNIVERSITY-— HO CHI MINH CITY

UNIVERSITY OF ECONOMICS AND LAW

SUBJECT: BRAND MANAGEMENT

BRAND EXTENSION STRATEGY

TRUNG NGUYEN LEGEND

Class: 232152110

Lecturer: Nguyen Hong Uyen

Tong Gia Tuong Group 2 ’s members:

PART 1; BRAND OVERVIEW

Target Audience SfOUDS Hriii54ÝÃỶŸỶÝ

PA®uu on dd 2.1 Grounded coffee/drip COC ó

Ill MARKETING & DISTRIBUTION

In si án 0n 4 PNy hoc nh

IV RISK MANAGEMENT

V FINANCIAL PLANNING

VI IMPLEMENTATION ROADMAP

VIL MONITORING AND EVALUATING

Founded in the mid-1996s in Buon Me Thuot, Trung Nguyen Group has swiftly grown into a

prominent conglomerate with six member companies Renowned domestically, it's now

expanding its reach into the global market, emerging as a leading coffee brand

1 Brand's market position

Trung Nguyen holds an important position in Vietnam's coffee industry, with a strong presence

in all three market segments: instant coffee, roasted and ground coffee, and retail through chain

stores According to Kantar’’s report, Trung Nguyen is the most chosen coffee brand in Vietnam

In the roasted and ground coffee segment, Trung Nguyen accounts for 35% of the market along

with other brands

2 Brand core values

The values "Absolute Faith," "Serving the Community," "Supported by humanity," and "Strong

eco-finance" reflect a profound and multi-dimensional corporate philosophy that Trung Nguyen

upholds towards

3 Vision - Mission

The great organization serving humanity build the unified humanity under the value system of

the enlightened lifestyle for success and true happiness

4 Brand positioning

Trung Nguyen positions its coffee brand as a part of Vietnam's traditional culture They have

succeeded in imbuing national values and culture into every cup of "Ban Mé" coffee, bringing it

to friends around the world

5 Brand product lines

Premium Trung Nguyen Coffee: Weasel Coffee, Legendee Coffee, and Creative Coffee No 8

Ground Coffee: Filter Coffee No 1, 2, 3, 4, 5, and Creative Coffee No 1, 2, 3, 4, 5

Whole Bean Coffee: Espresso Beans, Success Specialty Beans, Culi Robusta Beans, etc

Instant Coffee: G7 Coffee, Trung Nguyén Legend Coffee, and Trung Nguyén Special Brew

7 Unique selling propositions

From 2018 until now, Trung Nguyen identified the USP as "Energy Coffee - Life-changing Coffee", following the philosophy of "Honoring coffee" and "Coffee is the source of energy that inspires change."

NGUYEN LEGEND

Trung Nguyen Legend is a harmonious blend of premium quality and Vietnamese coffee culture

Known for its innovative and diverse products, it reflects modernity and advancement in the

coffee industry The brand's reliability and trustworthiness, coupled with its progressive approach to product marketing, create a strong brand image Additionally, Trung Nguyen Legend is closely associated with community values and sustamability, emphasizing its role in environmental protection and community development

e) Coffee place

It’s modern and youthful ambiance, provides free Wi-Fi and power outlets so it’s very suitable for studying, working, and socializing with friends

10 Frame of references

Frame of References

a) Coffee philosophy system

Trung Nguyen Legend coffee shops serve as hubs where coffee, philosophy, art, and culture converge Each location is a distinct masterpiece, reflecting its own philosophy like "Realm of Enlightenment," "Coffee World," "Intersecting Space"

Customers don't just indulge in coffee; they come to reflect, find tranquility, and spark their creative muse

b) Strong Vietnamese cultural identity

The brand utilizes 100% Vietnamese Robusta coffee beans, carefully roasted with modern techniques, offering a rich, robust flavor cherished by Vietnamese coffee enthusiasts

Product names like G7, Legend, symbolize Vietnamese culture, showcasing national pride and

promoting Vietnamese coffee globally

c) Creative and bold Marketing activities

Trung Neuyen Legend's bold marketing campaigns stir public interest, using compelling language to resonate emotionally It also sponsors key sports and cultural events, reinforcing its brand and Vietnamese cultural values

PART 2: CATEGORY OVERVIEW

1 Market research

The Vietnamese instant coffee market is poised for substantial growth, projected to reach

$706.06 million by 2028 with an annual growth rate of 8.13% Economic expansion, higher employment rates, and increased incomes, particularly among the younger demographic, are key drivers Evolving consumer preferences and busy lifestyles are spurring innovation and diversification in the coffee sector

As instant coffee consumption rises alongside hectic lifestyles, Trung Nguyen has an opportunity

to expand into new market segments and enhance consumption levels among potential target demographics

2 Competitors

2.1 Grounded coffee/drip coffee

emphasizes quality, eco- | advantage to business: The Coffee

from the smallest things:

High price

not high Service performance is

most loss-making brand

Strengths Have strong resources Rich, pure coffee flavor | High brand awareness

campaigns Wide distribution Product diversity

Affordable pricing to all | network

customers

Widely distributed

products

criticism from society

Controversy arose over

the nutritional quality

strategy

Competitive ability is limited

Products are not diverse

famous brands

Distribution limitations

Low quality Figure I Positioning map

3 SWOT analysis

Trung Nguyen Coffee

Weakness

Vietnamese consumers favor local

products, including coffee

Vietnam ranks as the

ensuring a stable supply of quality

beans

world's exporter,

Uses modern technology for top-

quality products with distinct

flavors

Extensive distribution, with over

1,000 stores nationwide

commercial brand

- The brand's advantages attract

capital and foreign cooperation

- Vietnam's WTO accession will

boost globally

- Instant coffee has become a daily

consumable product

- Government support

- Distinctive flavor, affordability, and

ease of processing, especially for

- Diverse substitutes available, with

foreign beverage brands gaining

traction

- Presence of counterfeit products

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PART 3: BRAND EXTENSION STRATEGY

Customer needs and desires are constantly evolving, demanding higher satisfaction levels Therefore, Trung Nguyen aims to innovate its products to fill the market gap effectively Trung Nguyen aims to strengthen its brand identity and competitive edge by focusing on a specific market segment Through a Line Extension strategy, the company introduces a range of instant cold brew coffee products tailored for the 18-28 age group This demographic, known for consuming a substantial amount of instant coffee, faces growing responsibilities and values convenience in their fast-paced lifestyles Trung Nguyen's energy-boosting products cater perfectly to their needs, aligning with their preferences and enhancing the brand's relevance in the market

- Marketing and Communication objective: Reach 3 million people, increase awareness

by 15%, and improve brand loyalty by 10%

3 Job to be done

- Get: Young, energetic, modern individuals influenced by Vietnamese culture,

specifically coffee culture

- Do: Use instant coffee more frequently, believing that instant coffee is an excellent solution in many situations

- Buy: Introduce a new product within the instant coffee line, emphasizing the existing advantages of instant coffee

4 Brand Role

Functional Benefits: Trung Nguyen provides convenient, minimalist products that can be instantly used, suitable for accompanying daily activities (studying, working, .)

Emotional/Cultural Benefits: Continues to nurture Vietnamese coffee culture freshly, allowing

it to flourish in the hearts of young individuals, fostering a sense of connection with the brand's values

I CUSTOMER PREFERENCES

Regarding the 18-28 age segment, their coffee preferences can be described as the table below:

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The Mr Caffeine The Experience Seeker The Expert

Preferring strong coffee

evokes a sense of robustness

and intensity

Preferring simple and easy-to-

drink coffee, focus on

providing energy and

convenience

Focused on flavor, high-

quality, pure and aromatic

coffees

Coffee is perceived as a

wakefulness booster, aiding in

alertness and focus on tasks

They see coffee as a companion for daily activities

(studying, working,

socializing)

Have very high standards for

beverages, instant coffee is

only a last resort option

Instant coffee may not be top

of mind when considering

strength and caffeine content

in a product

Prioritize having an available

companion, particularly

during breakthrough moments, over comparing

instant coffee with traditional brews Perceives instant coffee as

inferior in quality and flavor compared to traditional coffee, not meeting their taste preferences

e Regularly engage in outdoor activities (shopping, working in cafes, etc.)

® View beverages as companions, enhancing experiences and facilitating breakthroughs

e Concerned about environmental issues, sustainability, and deeply value cultural heritage c) Psychology

e Seek meaningful and adventurous experiences, striving for breakthroughs

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e Not particularly attached to any specific beverage, always willing to explore but prioritize

familiar, safe, and convenient choices

Motivation | Coffee helps youngsters become more alert, accompanying them in their

explorations and breakthrough experiences

Tension Despite being a top convenient product in the beverage industry, instant coffee

loses its convenience advantage when customers leave home

coffee, providing a diverse array of flavors tailored to coffee connoisseurs, particularly the younger demographic

Milk Coffee with the creamy richness of fresh milk

rich bitterness

z t Ideal for dieters or those watching sugar intake while savoring the rich taste

Black Coffee 0 % Organic Arabica coffee

The bold coffee flavor melds perfectly with creamy whipped cream,

Ice Creamy delivering a delightful taste experience -

Coffee

1.2 Actual product

a) Trung Nguyen Cold Brew "Fold" Coffee Collection

Trung Nguyen Legend emphasizes innovation and creativity, showcased through unique flavor profiles and blends in the cold brew lineup With the big idea: “Coffee for dynamic lifestyles - The energy of breakthrough!”, Café Gap hopes to elevate the inherent convenience and immediacy of instant coffee to new heights, and aims to be the most convenient cold brew instant coffee for every energizing and breakthrough moment

"Folded cup" coffee: Introducing a novel packaging method, each serving is in a folded paper cup instead of a conventional package Simply unfold the paper cup, add water directly, and enjoy a delicious cup of coffee instantly

Cold Brew "Fold" coffee: Utilizing the latest dissolving technology, no need for boiling water

like traditional instant coffee; users can now mix coffee with room temperature or cold water for

a flavorful, residue-free cup of coffee

Material: By utilizing paper packaging, we minimize plastic waste, fulfilling Trung Neuyen's commitment to environmental conservation and resonating with consumer trends, especially among the younger generation

We Dien VI

CA PHE GAP af CA PHE GAP

80g ( 10 gói x 8g) NĂNG LƯỢNG CỦA SỰ BỨT PHÁ 80g ( 10 gói x 8g) NĂNG LƯỢNG CỦA SỰ BỨT PHÁ

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KHOI LUONG TINH: 5 i KHOI LUONG TINH ị ` 4

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- Eco-friendly packaging: Uses paper material to minimize plastic waste

c) Price

Current premium instant coffee products are priced between 4,900 - 6,300 VND The proposed price for this product is 8,000 VND/pack This price is not excessively high, creating a barrier for target customers, and it is suitable when considering the wider coffee/beverage industry

Phase 2: Engage & Amplify

accompanying, Café Gap appears,

taking only 3 seconds to brew a cup

of coffee, immediately transmitting

energy to fuel and spark creative

inspiration

Motivation | They recognize that Café Gap is an After experiencing, Café Gap

instant coffee product with superior | becomes their top choice whenever

convenience, offering them more they're out Additionally, they also options when they're on the go share with friends and family

Key hook | Hero video: Activities that would Activation'Feeling a little empty?

Here comes the Café Gap": Set up booths, encouraging everyone to try and enjoy ongoing activities

- At frequented locations where young people gather but beverages are not readily

available, such as libraries,

classrooms etc

- In the cafeteria spaces of

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Supporting | Seeding, Bumper ad, Social posts, Seeding, Bumper ads, KOLs, Social

At Trung Nguyen's

franchised coffee

stores, the new

paper cup product line is displayed, utilizing paper cups for customers ordering Cold

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shopping

enjoy coffee while

Purpose | Engage customers directly, reinforce brand messaging, grab attention, showcase

innovative products, and reinforce brand loyalty

1 Low audience reach Promote advertising and PR activities to reach TA Add

additional supporting tactics

Offer discounts, rewards, or gifts for booth users and

purchasers Implement a loyalty program to boost customer

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