Introduce the company / Trung Nguyen Coffee Group's full name is Trung Áo Group Joint Stock Company, officially established on June 16, 1996, by Mr.. Dang Le Nguyen Vu in Buon Ma Thuot C
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NGUYEN TAT THANH UNIVERSITY NTT INSTITUTE OF INTERNATIONAL EDUCATION
FINAL EXAMINATION MODULE: BRAND MANAGEMENT
Research topic: Trung Nguyen Legend’s brand positioning analysis
TEACHER INSTRUCT : Mr Andre Dreyer STUDENT : Pham Anh Tai STUDENT CODE : 2000000132
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THANK YOU
Foreword, I would like to send our sincere thanks to Mr Andre Dreyer - lecturer of the subject "Brand management", for all the dedication he has given me throughout the study process He has constantly imparted knowledge, guided and created the best conditions for me
to have the opportunity to approach new and complex concepts about brand management Thanks to that, I have enough knowledge and the nght direction to complete this final report His comments are the motivation for me to complete their project
During the implementation process, I tried to learn and apply the knowledge they had learned
to complete the project best However, there may still be errors I would like to receive your feedback to make the assignment more complete
After studying her subject, I have accumulated extremely useful and efficient knowledge to help us better visualize Brand management in today's companies Besides, he also creates an effective, comfortable, and dynamic learning environment for us
Once again, I sincerely thank you!
Pham Anh Tai made the report
Ho Chi Minh City, December 23
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TABLE OF CONTENT
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2.1 Positioning by product characteristics
2.2 Positioning by benefits
2.3, Positioning using -
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INTRODUCTION ˆ >
1 Background /
In today's context, when the market 1s becoming increasingly competitive and diverse,
understanding brand management strategies has become an important factor in ensuring
success and sustainability One of the famous brands in the coffee sector in Vietnam, Cafe
Trung Nguyen Legend, not only defeated challenges from competitors but also created a
strong position in the minds of consumers
\
‘
We will study together Trung Nguyen Legend Group as well as its brand management from
branding to how they reach and retain customers, from applying communication strategies to
meeting challenges Knowledge and opportunities in a volatile and risky business
environment
Researching and analyzing Trung Nguyen Legend's brand management will help us better
understand the important factors that help a successful coffee brand Lessons learned from
Trung Nguyen Legend's brand management will be a useful reference for other businesses in
the coffee business The goal of this essay is to analyze the brand management of Trung
Nguyen Legend Cafe, thereby drawing lessons for other businesses
Finally, I hope that this essay will bring a more intuitive view of Trung Nguyen Legend's
brand management As well as offering effective solutions for Trung Nguyen Legend in
particular and for businesses in related fields in general
2 Aims
Analyzing Trung Nguyen's brand positioning in the et Evaluate the effectiveness of the
brand positioning strategy and evaluate the brand's difi ces compared to competitors
3 Methods
Theoretical analysis and synthesis method: analyze theoreticfl texts and documents on the
same topic into parts and aspects to understand them comprehensively; Arrange scientific
documents into a logical, coherent system
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CHAPTER 1: OVERVIEW OF TRUNG CO BRAND 1.1 Introduce the company /
Trung Nguyen Coffee Group's full name is Trung Áo Group Joint Stock Company,
officially established on June 16, 1996, by Mr Dang Le Nguyen Vu in Buon Ma Thuot City,
currently headquartered Mainly in Ho Chi Minh City, Trung Nguyen Group includes 5
member companies: Trung Nguyen Joint Stock Company, Trung Nguyen Instant Coffee Joint
Stock Company, Trung Nguyen Coffee Company Limited, G7 Trading and Services Joint
Stock Company, Trung Nguyen Coffee Joint Stock Company Vietnam Global Gateway
(VGG) joint venture company Trung Nguyen Group's member companies operate mainly in
the same fields of coffee production, processing, and trading; franchise; Modern distribution,
and retail services
As a pioneer enterprise in applying the franchise business model in Vietnam, Trung Nguyen Group currently has a network of nearly 1,000 franchised cafes across Vietnam and 8
overseas cafes in other countries such as the USA, Japan, Singapore, Thailand, China,
Cambodia, Poland, and Ukraine Trung Nguyen coffee products are distributed to 63
provinces and cities across Vietnam and are currently present in more than 60 countries
around the world with major key markets such as the US and China
1.2 Market position
In recent years, Trung Nguyen Legend Group has affirmed its position in the domestic market
and at the same time focused on expanding its international business scale, mainly focusing
on more than 80 countries and territories , especially important markets such as China, the
US, Korea, Russia, and Europe
In China, after more than 2 years of opening a representative office in Shanghai, Trung
Nguyen Legend has invested heavily in building a pr ional distribution network With 20
importers and more than 100 distribution agents, nergy coffee products are widely
distributed at more than 29,000 points of sale, incliding supermarkets such as Walmart
and Carrefour, as well as on commercial sites leading Welectronics such as Alibaba,
Taobao.com, Tmall.com, Yihaodian.com, and JD.com 2019 Was an important development
in China, when Trung Nguyen Legend expanded a d sified its sales channels In this
way, they have gained trust from partners and ¢ rs, as Ms Li Jing - a representative of
one of their important partners in China, shared
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In 2020, Trung Nguyen Legend Group invested in —- Trung Nguyen Legend flagship store coffee space in Shanghai - China's leading economic center This will be the place to introduce delicious energy coffees, especially the famous Vietnamese iced milk coffee, as well as all the excellent coffee products Trung Nguyen Legend, G7, Trung Nguyen
to consumers China Trung Nguyen Legend also achieved a growth rate of nearly 200% in the Asian market, covering supermarkets, shopping centers, convenience store chains, e- commerce channels, pharmacy systems, etc notably at the leading supermarket chains in
Based on Kantar's announcement in June 2023, strongly affirming the leading position of Trung Nguyen Legend Group in the journey to bring Vietnamese coffee to conquer the globe Trung Nguyen Coffee has been the most chosen for 10 consecutive years This result is compiled from the "Home consumer behavior research program" by the Worldpanel division
of Kantar - the world's leading multinational market research company, with a reputable working network in more than 100 countries 100 countries globally, implemented TT January 2013 to December 2022 with more than 130 fast-moving consumer goods industries, including the roasted coffee industry
Accordingly, among the 30.2% of households in urban and rural areas who choose to buy coffee, the rate of choosing to buy Trung Nguyen coffee is the highest at 14.1% This is equivalent to 46/100 households choosing to buy Trung Nguyen coffee products By 2022, Trung Nguyen's market share in the roasted coffee industry in urban areas is 35.1% and in tural areas is 11% This is the result officially announced by Kantar at the 25t2-anniversary event of the Trung Nguyen Legend space system last June This announcement continues to affirm Trung Nguyen Legend's number-one position in the market, as well as in the minds and hearts of consumers Trung Nguyen Legend is the number | brand in roasted and ground coffee with traditional roasted and ground coffee cts of excellent quality and diverse
flavors such as Creative 1-8, I, S, Brown, Filtered is also the top choice product of
1
many individuals and business units in the F&B s icular, Trung Nguyen's Legend coffee products have become diplomatic gifts ch
Vietnamese coffee culture and spirits such as Gourmet Bl@nd and House Blend Trung Nguyen Legend's Gourmet Blend and House Blend, wi j iue flavors from Buon Ma Thuot
tt P Ốper" cup of Vietnamese filter coffee
Robusta coffee, are indispensable ingredients for
Their creativity is expressed through new
civilizations Masterpieces suchas instant poasted coffee, Success, Dnp Coffee,
Americano quickly w e hearts of domestic and foreign custo
»
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coffee, bringing the Vietnamese brand to the world's leading yarkets such as the US, China,
Korea, Japan, Canada, Russia, and European countries g Nguyen Legend's booth on
Amazon, Trung Nguyen Legend's official store on Amazon - where global coffee lovers can
find and buy the full range of Trung Nguyen Le = roasted and ground energy
coffee products
^ COFFEE _
: £ "s4
es ®=- ¬ - CSCS
ek :
Trung Nguyen Legend booth on Amazon
The vibrant development of Vietnam's coffee industry over the past decade recognizes the
efforts of domestic coffee production and trading enterprises, including Trung Nguyen
Legend With the desire to enhance the value of Vietnamese coffee, from the early days,
Trung Nguyen Legend Group has inherited and promoted the heritage values of traditional
Vietnamese coffee, creating coffee products Excellent quality under the brands Trung
Nguyen, G7, and Trung Nguyen Legend for domestic coffee lovers, as well as exports to
more than 100 countries and territories, affirming its position as a leading Robusta coffee
powerhouse world
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CHAPTER 2: BRAND POSITIONING STRATEGY 2.1 Positioning by product characteristics
Trung Nguyen is one of the largest coffee brands in Vietnam with many product lines from roasted and ground coffee, instant coffee to the highest quality coffees
Trung Nguyen's instant coffee line includes G7, Wake-up and Pho coffee, all of which have a rich coffee flavor
8 Trung Nguyen creative coffee is delicately mixed to create a very special coffee flavor Coffee water has a rich color, mellow and long-lasting taste Creative coffee aroma 8 is very special, caffeme content 2.2% The creative coffee flavor 8 Trung Nguyen brings is hard to find in any other coffee product
In addition to the luxurious high-end product le, Trung Nguyen also has a line of roasted and ground coffee products that retain the purest flavor of natural coffee Trung Nguyen's roasted and ground coffee lines all have a gentle, lingering aroma and a rich taste that delights the taste buds
2.2 Positioning by benefits
Coffee is really good for your health Coffee contains antioxidants and beneficial nutrients to improve health Studies have shown that people who drnk coffee have a lower risk of dangerous diseases than people who do not drink coffee
Coffee drinkers have a 23% - 50% lower risk of diabetes than people who do not drink coffee Some scientific studies show that drinking coffee helps reduce the risk of Alzheimer's disease
by 65% and Parkinson's disease by 60%
Coffee also helps increase energy and make you smarter, helps burn fat, improves physical activity, and can prolong the life of the user
2.3 Positioning using
Trung Nguyen Coffee is the number | coffee brand in Vietnam, Trung Nguyen coffee experts constantly research and strive to develop the most delicious and special coffee masterpieces in the world to maximize their operations Brainstorm and develop creative power Trung Nguyen Coffee emphasizes factors such as: coffee watercolor, coffee aroma, strong/bitter taste of coffee, and must have a sour taste In order for the product to be enjoyed by consumers in the most delicious way, Trung Nguyen asked the question: "How to make your own cup of coffee?" Since then, content and instructional videos for making Trung Nguyen coffee have been released by the company Trung Nguyen coffee is truly delicious and can be prepared in many personal ways That is true to the slogan that Trung Nguyen brings to us
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2.4, Positioning according to user object
Trung Nguyen coffee types all have different characteristics, serving the preferences of each separate customer group It is from the development of diverse products that Trung Nguyen has quickly dominated the country's coffee market Trung Nguyen brand enters consumers’ subconscious about genuine coffee products From high-end lines to popular lines, from the purpose of enjoying yourself sipping a cup of morning coffee to giving each other boxes of quality coffee Trung Nguyen Coffee meets all users' needs
2.5 Positioning against competitors
In recent years, Vietnam's coffee industry has really prospered when coffee products of
Vietnamese businesses such as G7, Vinacafé, Nescafé were present and affirmed their
position in many markets around the world However, the Vietnamese coffee market has also become an attractive piece of cake for domestic and foreign F&B businesses
To lead in that market, Trung Nguyen Legend Group - Vietnam's No | coffee brand has chosen a new path in a different direction, more unique and different than any other brand - becoming "Trung Nguyen" Legend — Group Specializing in Energy Coffee — Life-Changing Coffee” with the Mindset Book “Different — Special — Unique” led by Founder — Chairman —
General Director Dang Le Nguyen Vu
In terms of products, Trung Nguyen Coffee has a high level of diversity with many types, from instant to roasted, mink coffee, etc Meanwhile, Nescafé provides many types of mineral water and food for children , coffee and dairy products Meanwhile, Vinacafé only focuses on products made from coffee, diversifying flavors so that users can choose accordingly Trung Nguyen is famous as a brand with agents in 60 countries around the world and serves
global conferences such as ASEM, APEC, WEF, ASEAN, ODA, and is a meaningful
diplomatic gift for heads of state countries visitng Vietnam Trung Nguyen also surpasses the two brands Vinacafé and Nescafé in the coffee shop system and the franchising strategy of 10,000 points of sale, it can be seen that Trung Neuyen's brand coverage is very strong
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In the competitive pressure model, the pressure from Trung Nguyen's competitors is extremely large The pressure that Trung Nguyen faces from competitors in the coffee industry is relatively high Regarding instant coffee products, Trung Nguyen has to compete with two giants, Vinacafé and Nescafe
Vinacafé is a long-standing, famous brand in Vietnam, accounting for the majority of the domestic instant coffee market share, and has exported to Russia and Eastern European countries Nescafe is a coffee brand produced by Nestlé - the world's largest food and beverage company
Despite having to face two world-class opponents, Trung Nguyen does not appear to be inferior A deep understanding of coffee has helped Trung Nguyen from a small brand in Buon Ma Thuot to become the leading brand in Vietnam, with enough potential to compete with big competitors to bring products into retail chains across the world world world According to a report by Vinaresearch, Vinacafé, Nestlé, and Trung Nguyen are the three giants dominating the Vietnamese coffee retail market with nearly 75% market share According to that, Nestlé's Nescafé brand, Trung Nguyen's G7, and Vinacafé's Wake Up are the top 3 instant coffee brands with the highest level of awareness
Trung Nguyen focuses on developing product quality and personalizing customer experience
so that they always feel cared for and satisfy their needs to improve competitiveness in the market
The core strength of a roasting coffee factory, new technology, and a closed process combined with an understanding of coffee has helped Trung Nguyen produce instant coffee products that retain flavor delicious aroma of roasted and ground coffee Thanks to that, Trung Nguyen's products always stand out on retailers' shelves compared to competitors
In addition, appropriate product lines that meet the needs of each target group are regularly developed and added to its portfolio by Trung Nguyen such as G7 Passiona, with low caffeine content, collagen supplementation, and the same product line Some Oriental herbs prevent aging specifically for women
At the same time, to reduce competitive pressure from competitors, Trung Nguyen has also proactively developed business on e-commerce sites In 2020, G7 coffee held the 2nd largest market share in the Chinese e-commerce market, becoming the most popular Asian instant
coffee brand here