Trung Nguyên Coffe Strategies for Young Consumers

Chapter I: INTRODUCTION Research Topic: Strategies to encourage young consumers in Hanoi to take an interest in Trung Nguyen Coffee (2015-2020) Background: In recent years, Hanoinians’ demand on leisure activities has increased in terms of quality and diversity The types of coffee that are on trend include: instant coffee (comes in packs), phin coffee (grinded coffee beans brewed through phin filter), mixed coffee (multiflavored) However, each type of coffee attracts a different range of customers For example: the middle-age takes an interest in phin coffee or instant coffee and have the habit of shipping a cup of coffee before going to work, whereas young customers prefer going to trendy cafés that offer a wide variety of beverages in the late afternoon or evening Specifically, young consumers in Hanoi tend to like foreign coffee brands such as Starbucks (American), the Coffee Bean & Tea Leaf® (American), Gloria Jean’s Coffee (Australia), Angel in Us (Korea) and so on It is an undeniable fact that those brands are dominating Vietnam as well as Hanoi coffee market Vietnamese coffee brands, unfortunately are at a slight disadvantage Trung Nguyen coffee is a rather strong and stable native brand, whose target customers are the middle-age who can afford a rather pricy cup of Trung Nguyen coffee Hanoi capital is a populated area with young population If Trung Nguyen manages to attract younger customers, its customer range and profit will boost considerably This study demonstrates strategies to encourage young consumers in Hanoi to take an interest in Trung Nguyen Coffee within the period from 2015 to 2020 Purposes: - The study is aimed to find the solution for promoting the drinking habit of Trung Nguyen coffee among Hanoi youngsters - The paper is hoped to broaden teenagers’ knowledge of the benefit of consuming a Vietnamese coffee brand - The research is expected to help Trung Nguyen coffee gain more popularity and interest among domestic consumers in general and Hanoi young consumers in particular Outline: Chapter I: Introduction Chapter II: Major findings The real situation of Trung Nguyen Coffee Reasons why Trung Nguyen Coffee should target young consumers in Hanoi Improvements within the brand Raising popularity Chapter III: Conclusion Chapter II: DATA ANALYSIS From 14/10/2015 to 28/10/2015, a survey was conducted in order to understand Hanoi young consumers’ opinions on Trung Nguyen Coffee The real situation of drinking Trung Nguyen Coffee from Hanoi consumers’ perspectives: Graph 1.1 – Coffee drinking frequency Graph 1.1 describes coffee drinking frequency of the participants There are five participants who “never” drink coffee; however, please note that this frequency is measured per week, so “never” implies that they rarely drink coffee Eleven participants drink coffee every day and one fourth of the participants drink coffee 3-4 times per week It can be understood that only some people drink coffee with high frequency Meanwhile, almost half of the participants enjoy a cup of coffee once per week From these figures, we understand that Trung Nguyen may serve customers who only experience drinking coffee several times per month; but Trung Nguyen will also have a small number of potential loyal customers who will come to the shop quite a few times every week Purposes for targeting young consumers: Graph 2.1 – Places of preference and Age range The graph above shows the participants’ age ranges and places where they often have coffee There are only participants above 35 years old would like to drink coffee in branded stores A small number of participants whose ages are 26 – 35 likes drinking coffee in workplace and unbranded stores The majority of the participants are from the age of 18 – 25 and they prefer drinking coffee either at home or in branded stores It can be inferred from the age range 18 – 25 that most participants are university students; and their habit of drinking coffee at home still takes up a majority That almost half of participants would rather drink in branded stores is a promising piece of information for Trung Nguyen Coffee Improvements to be made: 3.1 Improvements from within the products: The fact that Trung Nguyen Coffee is more popular among the middle-aged leads to another fact that the coffee and its ingredients are especially combined for the age group’s likes Young consumers, similarly, have their likes and dislikes distinctive from those of the middle-age These differences are reflected in the results of our survey 3.1.a Distaste flavors: Graph 3.1.a – Distaste flavors The chart above releases the dissatisfactions of the customers with Trung Nguyen Coffee’s tastes basing on four main aspects: too strong flavor, too light flavor, bad aftertastes and excess sweeteners A great number of people (about 25%) complain about such strong flavor due to high caffeine content in ingredients However, 8% of customers think that the flavor is not strong enough for them to stay concentrating People who think Trung Nguyen products contain excess sweeteners account for 23% Others have bad impression on aftertaste and don not want to try them again All in all, Trung Nguyen brand should develop more various tastes, lessen caffeine content and sweeteners to fulfill the customer’s requirements 3.1.b Customers’ satisfaction: Graph 3.1.b – Customers’ satisfaction In this case, there are four aspects that are rated by visitors Firstly, the factor which makes most customers feel pleased to enjoy is undoubtedly the drink, with nearly half of all the people who have done the survey claim that they find the taste of Trung Nguyen's coffee bold dandy in a positive way Secondly, the service provided by Trung Nguyen staff is also highly appreciated: 28% of the people asked ranked the attitude of the employees as very satisfied However, 18% and 10% of the customers feel unpleased to very discomfort when served by Trung Nguyen coffee's staff; which means the brand still has to focus more on training the manners of their personnel On the other hand, the price of the goods and services in Trung Nguyen stores receives many complaints from the visitors In total, 59% of them give negative feedback about the expensive cost (from 60,000 to 100,000 VNĐ) for a cup of drip Vietnamese coffee which prevents some customers, especially youngsters, from trying the traditional coffee of Vietnam Last but not least, the interior design of the stores seems not so impressive to customers in either positive or negative way, but the 30% of dissatisfaction should still be taking care of more seriously 3.1.c Price range preference Graph 3.1.c – Price range preference As it can be seen, the chart indicates the price references of most customers at the age from 18 to 25 years old in Hanoi We give three main price levels for the customers to choose Firstly, it can be seen obviously that a great number of customers (about 78%) prefer to use Trung Nguyen product at the price from 25,000VND to 45,000VND due to their medium wages Only 22% of consumers say that they can afford at the price from 50,000VND to 75,000VND as long as the standard of the product is worth it However, no customer accepts the price level of over 80,000 VND In conclusion, Trung Nguyen brand should adjust price to satisfy its customers 3.1.d Additional promotion: Graph 3.1.d – Additional promotion When asked about the kind of promotion they are fond of, 67% of the customers choose the traditional one - membership card This will provide the customers a chance to have discount or gift in special occasions and other interesting deals for the loyal members only Secondly, free vouchers are selected by a quarter of the people who did the survey Vietnamese are also keen on enjoying this kind of promotion as vouchers can offer them more than what they pay (buy one get one for example) Lastly, check-in discount has the least percentage This may due to the need for using the Internet to get online right at the stores, which is quite hard for some elders but very familiar with teenagers 3.1.e Additional features: Graph 3.1.e – Additional Features In another case, people are asked to give advice about the feature they would like to add to Trung Nguyen Bakery seems to be the most popular since it accounts for 60% of the answers As expected, youngsters always love something sugary to go along with the bold taste of the coffee Sharing the same proportion, fast food and meal sets both chosen by 20% of the customers 3.2 Raising brand popularity: In order to make young consumers buy Trung Nguyen Coffee, it is advisable to understand what attracts consumers’ attention and what drives they to buy a product 3.2.a Public awareness: Graph 3.2.a - Trung Nguyen Coffee’s popularity It can be seen from the pie chart through which means of communication participants know about Trung Nguyen Coffee Broadcast media and acquaintances take up to totally 87% of the pie, inferring Trung Nguyen has been doing a great job of advertising its name through broadcast media Moreover, the fact that 44% of participants know about the brand through friends and relatives means that young consumers value their acquaintances’ feedbacks and reviews highly Printed media and the internet take up a small percentage of the pie chart Indeed, Trung Nguyen Coffee has been neglecting its advertisement through printed media and its appearance in the virtual world is yet to project strong positive impressions towards internet users Additionally, we would like to take a closer look at the willingness to introduce Trung Nguyen coffee to other individuals of one group of participants and the results turns out quite positive Among 30 participants who know about Trung Nguyen coffee through acquaintances, 80% are likely or very likely to recommend Trung Nguyen Coffee to others, and only 20% not want to introduce the brand to anyone From these numbers, we can see the strong and weak points of Trung Nguyen Coffee in making its name known among young consumers, as well as the positive turnout of raising its popularity through means of communication 3.2.b Visit purpose and Location preference: Graph 3.2.b – Visiting purposes & Locations preference The graph above clearly show the customers’ purpose when visiting Trung Nguyen Coffee and places where a part of customer would like the coffee shop located It can be seen from the bigger pie chart, 17% of the customers come to Trung Nguyen Coffee to study, 22% for business purposes, whereas over 60% of the participants choose Trung Nguyen when hanging-out As a result, we would like to take a closer look at the customers with hanging-out purpose The smaller chart illustrates the options of these 60.9% people A great number of people would like to have Trung Nguyen coffee in multi-function buildings such as Vincom mall chain, Lotte departments, AEON Mall, etc Meanwhile, 26% of customers prefer to visit Trung Nguyen at university campus However, only 4% think that the coffee shop should be located in sight-seeing spots From these numbers, we can see the places that Trung Nguyen should start the business and find the solution to help Trung Nguyen serve customers with the best service Chapter III: CONCLUSION Summary: - Survey among 18 to 25 years old – young customers Half of the survey participants have the habit of drinking coffee at home; some go to branded stores to drink coffee, but only once a week They dislike too strong-flavored and light-flavored coffee Participants show positive response to the beverages but negative feedbacks towards the interior design, staff services and prices They are only willing to pay a rather low price range for a cup of coffee (25,000 – 45,000 VND) Participants also wish to have membership privileges as well as free vouchers given by Trung Nguyen Coffee They want bakery to be added as an additional feature to every store In terms of popularity, Trung Nguyen Coffee has been known through the positive recommendations of participants’ acquaintances Participants would like to see more Trung Nguyen coffee stores in multi-function buildings and school campuses – those are places they often visit Conclusion: The survey studies about Hanoi young consumers’ opinions on Trung Nguyen Coffee Based on the results, strategies to attract young consumers in Hanoi will be planned and put into action Through the survey, we concluded that: Young Hanoinians either drink coffee at home or at branded stores - They dislike overly extreme flavors in coffee - Trung Nguyen Coffee needs to improve its interior design, staff services and product prices - The young want Trung Nguyen Coffee to add bakery, membership cards and free vouchers to the store chains - Those have been to Trung Nguyen Coffee are likely to recommend the brand to others Suggestions: - Several suggestions can be drawn from the results of this survey: 3.1 Trung Nguyen Coffee needs a reform in interior design in order to refresh its image without losing the traditional image of Vietnamese coffee Organizers should also take note that 50% youngsters come here for hanging out, which means the place needs to be spacious and airy; meanwhile, those who come to relax or for study or business purpose should be given their personal quiet space 3.2 Trung Nguyen staff should be better-trained 3.3 It is advisable that Trung Nguyen extend its coffee menu Perhaps adding a new menu section for students with softer prices will attract younger customers 3.4 Opening chain stores in multi-function buildings has been a trend in recent years It catches lots of attention from building visitors but also faces fierce competition from other brands Meanwhile, opening Trung Nguyen Coffee stores in university campuses is a creative idea; of course, prices should be adjusted along with additional promotional features APPENDIX Survey questionnaires Young consumers' opinions on Trung Nguyen coffee | Khảo sát ý kiến người tiêu dùng trẻ cà phê Trung Nguyên We are a group of students from AEP (Advanced Educational Programs) of National Economic University and we are carrying out a research about Trung Nguyen coffee Here is the study about how consumers assess the products and services provided by Trung Nguyen coffee We hope that you can spend some time to complete the survey in order to support our project Your responses to these following questions will be used in our research To complete the survey, please choose the answer that you find appropriated by ticking the answer of each question and the chart * Required Which age range you belong to? * Bạn thuộc nhóm tuổi đây? o 13-17 o 18-25 o 26-35 o above 35 (trên 35 tuổi) How often you drink coffee every week ? * Bạn uống cà phê lần tuần? o once a week (một lần tuần) o 3-4 times a week (3-4 lần tuần) o everyday (hàng ngày) o never (không bao giờ) Where you often drink coffee ? * Bạn thường uống cà phê đâu? o Home (ở nhà) 10 o Branded stores (ở cửa hàng có thương hiệu) o Unbranded stores (ở quán vỉa hè thương hiệu) o Workplace (ở nơi làm việc) How you know about Trung Nguyen coffee ? * Bạn biết đến cà phê Trung Nguyên qua đâu? o Internet (mạng internet) o Friends and relatives (bạn bè người thân) o Broadcast media (truyền thông kĩ thuật số) o Printed media (truyền thông in ấn) Which kind of Trung Nguyen beverage you find unpleasant ? * Loại nước uống Trung Nguyên làm bạn cảm tình? o Too strong-flavored (vị đậm) o Too light-flavored (vị nhạt) o Excess sweetener (có nhiều chất tạo ngọt) o Aftertaste (dư vị khó chịu) How satisfied are you with Trung Nguyen coffee brand ? * Mức độ hài lòng bạn với cà phê Trung Nguyên: Very dissatisfied (Rất không hài lòng) Drinks (Đồ uống) Interior Design 11 Dissatisfied (Không hài lòng) Neutral (Trung lập) Satisfied (Hài lòng) Very satisfied (Rất hài lòng) Very dissatisfied (Rất không hài lòng) Dissatisfied (Không hài lòng) Neutral (Trung lập) Satisfied (Hài lòng) Very satisfied (Rất hài lòng) (Thiết kế nội thất) Service (Dịch vụ) Price (Giá tiền) How would you like to improve the brand ? * Bạn muốn có thay đổi phía cà phê Trung Nguyên? At what price range are you willing to pay for a cup of Trung Nguyen coffee ? * Bạn sẵn sàng trả tiền cho cốc cà phê Trung Nguyên với tầm giá nào? o 25k-45k o 50k-75k o 80k and above What purpose you visit Trung Nguyen coffee for ? * Bạn đến uống cà phê Trung Nguyên với mục đích gì? o Hangout (đi chơi với bạn bè) o Study (học hành) o Business (lí công việc) What kind of promotion from Trung Nguyen coffee would you like to have ? * Bạn mong chờ hình thức ưu đãi sau cà phê Trung Nguyên? o Membership cards (thẻ thành viên) o 12 Check-in discount (check-in để nhận giảm giá) o Free vouchers (voucher miễn phí) o Other: What features you like to add to Trung Nguyen coffee? You may choose more than one answers * Bạn muốn thêm đặc điểm cho cửa hàng cà phê Trung Nguyên? Bạn chọn nhiều câu trả lời o Bakery (bánh ngọt) o Fast-food (đồ ăn nhanh) o Meal sets (ăn theo suất) o Other: Where would you like to have Trung Nguyen coffee store located ? * Bạn muốn có cửa hàng cà phê Trung Nguyên nơi nào? o University campus (khuôn viên trường đại học) o Multi-function buildings (tòa nhà đa chức năng) o Sight-seeing spots (những điểm du lịch) o Other: How likely would you recommend Trung Nguyen coffee to others ? * Bạn có muốn giới thiệu cà phê Trung Nguyên tới người khác không? o Very likely (rất muốn) o Likely (muốn) o Unlikely (không muốn) Submit 13 100%: You made it 14 [...]... improve the brand ? * Bạn muốn có những thay đổi gì về phía cà phê Trung Nguyên? At what price range are you willing to pay for a cup of Trung Nguyen coffee ? * Bạn sẵn sàng trả tiền cho một cốc cà phê Trung Nguyên với tầm giá nào? o 25k-45k o 50k-75k o 80k and above What purpose do you visit Trung Nguyen coffee for ? * Bạn đến uống cà phê Trung Nguyên với mục đích gì? o Hangout (đi chơi với bạn bè) o Study... from Trung Nguyen coffee would you like to have ? * Bạn mong chờ hình thức ưu đãi nào sau đây của cà phê Trung Nguyên? o Membership cards (thẻ thành viên) o 12 Check-in discount (check-in để nhận giảm giá) o Free vouchers (voucher miễn phí) o Other: What features do you like to add to Trung Nguyen coffee? You may choose more than one answers * Bạn muốn thêm đặc điểm nào cho một cửa hàng cà phê Trung Nguyên? ... Where would you like to have Trung Nguyen coffee store located ? * Bạn muốn có cửa hàng cà phê Trung Nguyên ở nơi như thế nào? o University campus (khuôn viên trường đại học) o Multi-function buildings (tòa nhà đa chức năng) o Sight-seeing spots (những điểm du lịch) o Other: How likely would you recommend Trung Nguyen coffee to others ? * Bạn có muốn giới thiệu cà phê Trung Nguyên tới những người khác... (ở nơi làm việc) How do you know about Trung Nguyen coffee ? * Bạn biết đến cà phê Trung Nguyên qua đâu? o Internet (mạng internet) o Friends and relatives (bạn bè và người thân) o Broadcast media (truyền thông kĩ thuật số) o Printed media (truyền thông in ấn) Which kind of Trung Nguyen beverage do you find unpleasant ? * Loại nước uống như thế nào của Trung Nguyên làm bạn không có cảm tình? o Too... khó chịu) How satisfied are you with Trung Nguyen coffee brand ? * Mức độ hài lòng của bạn với cà phê Trung Nguyên: Very dissatisfied (Rất không hài lòng) Drinks (Đồ uống) Interior Design 11 Dissatisfied (Không hài lòng) Neutral (Trung lập) Satisfied (Hài lòng) Very satisfied (Rất hài lòng) Very dissatisfied (Rất không hài lòng) Dissatisfied (Không hài lòng) Neutral (Trung lập) Satisfied (Hài lòng) Very