Trung Nguyen coffee – Truong Van Hung Page 1 TRUNG NGUYEN COFFEE THE BEST COFFEE IN VIETNAM 1.. Trung Nguyên is the leading domestic coffee brand within Vietnam, and e xports its produc
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TRUNG NGUYEN COFFEE THE BEST COFFEE IN VIETNAM
1 Founding story
Intr oduc tion: Trung Nguyên involves in the production,
processing and distribution of coffee Trung Nguyên is
the leading domestic coffee brand within Vietnam, and
e xports its products to more than 60 countries like : USA,
EU, China, etc
Idea for business: In 1996, Vietna m was one of the
leading coffee producers in the world, but almost solely
producing "green" coffee (unroasted beans) This resulted
in no control over the fina l coffee quality or prices The
Highland region of Vietna m is one of the world's "top
10" best environments The owners of Trung Nguyen
saw that the future for producing gourmet coffee and
being reasonably independent of the world co mmodity
ma rkets was to once again follo w the best possible
growing and processing techniques to produce a world
-class coffee, and carry it through all the way to the
packaged product
Ke y pl ayers: On June 16, 1996, Dang Le Nguyen Vu
founded Trung Nguyen The initial cap ital investments
consisted of only an old bike, unwavering faith and
strong will o f youth as well as a genuine desire to build a
fa mous coffee brand, bringing the flavor of Vietna mese
coffee to all corners of the world
2 Key factors of success
Marketing strateg y: 4Ps of ma rket ing, e mphasized on
Production and Place (franchised store) Trung Nguyen
coffee is a co mb ination of good materia ls, high
technologies, Eastern’s secrets and new opinion about
coffee, ma king inimitable secret formu la and unique
flavor Trung Nguyen has been giving its coffee-lovers a
unique environment to experience Vietnamese coffee
culture through its gourmet coffee cup
A coffee philosophy transcends language and culture
“Coffee is not just a simp le drin k, but an inspiration to
human creat ivity” This philosophy has been the
guideline in co mpany’s franchising system development
strategy
Uni que know-how: Trung Nguyen coffee is co mbined
and refined fro m 5 fa mous kinds of coffee in the world
including Vietna m, Ethiopia, Ja ma ica, Brazil and
Colu mb ia to achieve the most special ingredients &
flavors by the latest technology Through the careful
selection of Vietna mese Highland’s finest coffee beans
and the application of Trung Nguyen’s unique know –
how in roasting and brewing, a gourmet coffee brought to
customers with variant of flavors and aromas
With a wide product portfolio ranging fro m ground
coffee, espresso to whole beans categories, Trung
Nguyen proudly satisfies the mutable needs of its coffee-
Company’s strateg y: “In Trung Nguyen, we select the
best coffee beans mixed with the tre mendous passion to create perfect energy source for brain, to assist creativeness and success , to connect and develop a community of loving coffee for the prosperous and sustainable world.”
Target market: Do minating domestic market, conquering international markets, develop franchise system in Viet Na m and fore ign countries as well The
e xpansion of the ma rket based on both national network
& international network d istributors National network includes a nationwide network of distributors, superma rkets, resorts, bookstores and thousands of retail shops & coffee shops In international network, Trung Nguyen has distributors in more than 40 countries like
US, Canada, Australia, EU, Japan, Ch ina, etc The ma in
e xport markets are the center economic in the world, the stable business environment, polit ical stability Consumers have the habit of using good quality products, high prices, the co mpany will not under pressure to reduce costs
Ke y factors for success (5 key factors): Firstly, the
Co mpany has a competitive advantage of perfect geographical conditions for growing and develop ing coffee market Secondly, Trung Nguyen was one of the pioneers of roasting coffee in Vietna m at that time when there were not so many co mpetitors, so the Co mpany seized a great opportunity to expand the ma rket and position its brand Thirdly, the Co mpany has well-managed system and advanced technology (Eurep GAP, HACCP ce rtificates) Ne xt , Trung Nguyen developed the unique know-how of coffee selecting, roasting and brewing procedures Finally, the co mpany set up a clea r and effective marketing as well as company strategy
3 Reflection Conclusion: Trung Nguyen coffee still has great
potential to develop & e xpand the ma rket Trung Nguyen brand becomes more & more similar with coffee lovers around the world However, the co mpany is also in strong competition with international coffee brand s such
as Nestle, Maccoffee, Starbucks coffee, etc
Lessons: 1) Good businesses usually come up with a
great idea beyond money 2) Clearly understanding your local potentials & loca l cultures is one of the keys to succeed in business 3) Ma rket ing strategy is always important for business