International busniness strategy of trung nguyen coffee

On June 16, 1996, Dang Le Nguyen Vu founded Trung Nguyen in Buon Ma Thuot, Vietnam Four young entrepreneurs with a vision of creating a famous coffee trademark, established Trung Nguyen Coffee Company and introduced the authentic Vietnamese coffee to the world  

International Busniness Strategy of

Trung Nguyen Coffee

Group 3:

Vu Thi Loan Doan Duy Tien Nguyen Thi Hien Nguyen Thi Ngoc Anh

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Founding story

1 2 3

Key factors to successReflection

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3

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Involving in the production, processing and

distribution of coffee

How did the founder think of the idea?

Vietnam is one of the leading coffee producers in the world

A vision of creating a famous coffee trademark & introduced the authentic Vietnamese coffee to the world

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 How did the founder think of the idea?

 At that time, Vietnam had risen once again to be one of the

leading coffee producers in the world, but almost solely

producing "green" coffee (unroasted beans) that were sold on the commodity market This resulted in no control over the

final coffee quality or prices.

 The Highland region of Vietnam is one of the world's "top 10" best environments, combining the right altitudes, soils,

natural drying conditions, and temperatures for producing the finest of gourmet coffees Yet the region was not controlling its own destiny to produce these once sought-after coffees.

 The owners of Trung Nguyen saw that the future for

producing gourmet coffee and being reasonably independent

of the world commodity markets was to once again follow the best possible growing and processing techniques to produce a

Establishment & Vision

In 1996, Dang Le Nguyen Vu founded Trung Nguyen coffee,

with a vision of creating a famous coffee trademark & introduced the authentic Vietnamese coffee to the world

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How did the founder think of the idea?

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Vietnam is one of the leading coffee producers in the

world, but almost solely producing "green" coffee

(unroasted beans)

The Highland region of Vietnam is one of the world's "top 10" best environments

The owners of Trung Nguyen saw that the future for

producing gourmet coffee.

Legendee coffee

Fresh coffee

G7 instant coffee: Roasted and ground coffee: Filter Coffee (1,2,3,4,5), Creative Coffee

(1,2,3,4,5,8), Espresso, Blend (I, S, N,

Premium Blend, Gourmet Blend, House

Blend).

Bean coffee

Trung Nguyên coffee products use a variety

of different coffee beans, including Robusta, Arabica, and Excelsa.[5]

Key factors of success

4Ps of marketing: emphasized on Production & Place

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Differential Product

In Western’s coffee = good

material + high technology +

some opinion about cultures

In Trung Nguyen coffee = good material + high technology + Eastern’s secret + new opinion about coffee.

Differential Product

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Inimitable secret formula

- Target: to unify domestic market, to conquer

international markets, develop franchise system in Viet

Nam and foreign countries

- 1000 coffee shop franchised in Viet Nam and 8 foreign

countries

- 13.265.826.449 cups of coffee are consumed up to 2013

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Place The combination between Eastern

culture & Western culture

Trung Nguyen’s strategy

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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.

Trung Nguyen’s strategy

Select the best coffee beans mixed with the

tremendous 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

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Dominating domestic market, conquering

international markets, develop franchise system in

Viet Nam and foreign countries

Dominating domestic market, conquering

international markets, develop franchise system in

Viet Nam and foreign countries

Expand the market: Franchise

1998: Open first coffee store, in Ho Chi Minh city.

2000: in Singapore, the first Vietnamese company applied

“franchising” model domestically and internationally.

20 The combination between Eastern culture & Western culture

Requirements for franchised stores:

- Trung Nguyen wants to bring to customers not only the most delicious coffee cups but also special coffee culture, Vietnam coffee culture

- Serving highest quality coffees

- Using the modest technology and specially oriented secrets

- Serving staffs are trained and deeply understand about coffee

- The special space bring creative inspiration for customers

- Interior and decoration carry Vietnamese style that make

Franchised Stores

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Choosing international strategy

Reduce cost: low

Coffee is popular drinking in Western

Coffee is protected right and brand by Government, support product cost and give advantage to export oversea Allow establish association to develop together

Vietnam joined WTO that help Trung Nguyen become known not only in domestic but also foreign countries

well-Local responsiveness: low

 - Each country, each local has different taste about enjoying coffee.

 - Trung Nguyen have more

than 30 kinds of product which

can satisfy all type of customer

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Trung Nguyen coffee has more than 60

countries: US, the UK, Japan,

Singapore, China.etc

The main export markets:

- the center economic in the world

- the business environment is less

risky, so political stability

3 Entry Strategy

=> Consumers have the habit of using good quality products, high

The challenge

Competition:

In the world, the Trung Nguyen brand is not well-know elsewhere

Trung Nguyen has to compete with rivals of local coffee products and instant coffee brand famous

Competitors:

Nestle (Switzerland)

- leading the world with 70 years of history

- the innovative breakthrough in enjoying

MacCoffee (Singapore): is a

trademark 3 in 1 coffee with

unique blend of premium coffee

beans, sugar cream delicate

flavor, and perfect quality

Advantages and Disadvantages

Loss of flexibility

Confidentiality

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