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Phân tích chiến lược MARKETING MIX 7P của THE COFFEE HOUSE STARBUCK , SWOT AND PESTLE ANALYSIS, phân tích thế mạnh, điểm yếu, cơ hội và mối đe dọa của Starbuck Việt Nam, đưa ra chiến lược marketing mới cho sản phẩm của Starbuck Việt Nam
TRƯỜNG ĐẠI HỌC KINH TẾ QUỐC DÂN -o0o TOPIC: MARKETING MIX 7P OF THE COFFEE HOUSE & STARBUCK; SWOT AND PESTLE ANALYSIS NEW MARKETING PLAN FOR STARBUCK THE COFFEE HOUSE Contents I INTRODUCTION II MAJOR FINDING 2.1 MARKETING MIX 7Ps III - Develop and evaluate a basic marketing plan 16 3.1 Company Overview .16 3.2 SWOT Analysis for Starbucks 18 3.3 Marketing Objective 20 3.4 Segmentation, Targeting and Positioning (STP) 21 3.5 Tactics and Actions 23 3.6 Evaluating and Monitoring marketing plans 24 IV PESTLE Analysis for Starbucks 25 4.1 POLITICAL 25 4.2 ECONOMIC .25 4.3 SOCIAL-CULTURAL 26 4.4 TECHNOLOGICAL 26 4.5 ENVIRONMENT 27 V Conclusion 27 VI References: 27 I INTRODUCTION This assignment is reviewing all the 7Ps of The Coffee House's marketing mix and compare to Starbuck Coffee writing up a marketing plan( new service, existing market) Right off the bat, Started propelling in 2014 however with the name The café and the improvement of the brand is something that numerous new companies merit, particularly in the F&B ( food and drink) industry The café said it would turn into the second Starbucks in Vietnam, while referencing The café is alluding to a Vietnamese espresso brand At present, The Coffee House has arrived at 80 stores, serving in excess of 40,000 clients per day and it expended around 300 tons of espresso in 2018 Secondly, Starbucks is a well-known global coffee brand and is currently the world's largest coffee company, established in 1971 in the USA Starbucks now has more than 17,000 stores in more than 50 countries around the world In 2013 starbucks opened its first store in Ho Chi Minh City Nowadays in Vietnam, Starbucks coffee brand has been present and become one of the familiar destinations of many coffee lovers II MAJOR FINDING 2.1 MARKETING MIX 7Ps Marketing Mix is a combination of marketing tools used by businesses to achieve marketing goals in the market, 7P is a marketing model with elements: Product, Price, Promotion, Place, People, Process, Physical evidence ( Kotler and Philip (2012) 7Ps Product The Coffee house + Core product/ service -Initially, TCH supplied Starbuck Evaluation + Core product/ service Basically, the type of -Initially, SB provided its main products of both TCH mainly coffee product as coffee The formula of roasting and There are types of coffee (business to consumer) blending Tica's Arabica and based on different criteria: In terms of product Robusta roasted beans creates a coffee;medium and SB roast decisions: are All overall balance of bitterness, and dark roast; Normal coffee products sweetness, sourness and it (with caffeine), etc makes Currently, coffee, tea, cakes, conformance) aromatic coffee stronger, are quality Frappuccino drinks, smoothies products B2C SB high (quality are SB so are all main products of consistent that they are Starbucks willing to give up their products +Additional services/products +Additional services/products or product lines if those products Fruit tea (Teavana iced tea- for have a major impact on Apart people who not drink their key products For from popular cafe items, coffee), seasonal expamle, TCH also develops many products(Christmas other products such as tea, Espresso Roast), limited edition line macchiato, fruit drinks and products, products for festive influenced the flavor of side dishes like cake, bread seasons and snack Valentine ( Starbucks cup) such as SB once Blend discarded its sandwich because it Christmas, the coffee they sold +Product/ service support About style and design of TCH products For + Product / service support SB Vietnam launched cards and drinking water Payment by card, momo, etc mobile application instead of products: TCH starts if customers not use cash cash payment from ordinary plastic SB Vietnam will also introduce paper cups, or glass (The Coffee House, 2020) limited designs of each season cups shared for all products and next is the cup insulation, with The most recent design of TCH coffee beans is wrapped in paper material environmentally friendly - +Pricing approach: Price +Pricing approach: The prices of SB products are TCH At the beginning when entering the market, TCH did not pay higher than usual ( applies VND right 80,000- VND 180,000) the market penetration strategy much attention to profit, which When Vietnamese helped to attract many potential people are customers accustomed After fully to penetrating the market, TCH drinking coffee at gradually won over customers' quite hearts and profits began to prices from brands increase such as Starbucks, +Pricing stategy: expensive Coffee Bean, etc, the +Pricing strategy: -Multiple products: SB also price The average price of Urban offers savings combo products 30,000-60,000 with station, Passio ranges from VND and ancillary services like a Western style is still 15,000 to VND 40,000, while VND 80,000 savings breakfast being ignored It is Trung Nguyen and Starbuck These combos are aimed at this reason that TCH Coffee are from VND 40,000 to customers who care about price has VND 90,000 The gap of VND -Psychological pricing strategy: researched 30,000 to VND 60,000 is TCH's SB applies market TCH has solved the Starbucks products come in Conversely, SB does problem: customers can sit to sizes: Short, Tall and Grande not aim at prices but enjoy coffee in a peaceful, After that, SB added large focuses on product luxurious space like the "big" sizes: foreign as Immediately, Grande became media message that Starbucks or The Coffee Bean at the "most reasonable" choice in they provide high a reasonable price the eyes of customers countries such Venti of VND carefully and middle price: entered the market and Trenta value, by giving the value products customers +Factors influencing pricing to + Factors influencing pricing Infation, Infation, comes from competitors and Further more, due to lunch new products fierce Price competition comes from competitors Price competition competition from the Vietnamese brand group, SB started running events or discounting products to keep customers in order to keep the growth pace + Offline: Place + Offline: TCH uses TCH direct a direct sales sales distribution channel (direct to Basically, TCH and distribution channel (direct to end users) The store system is SB are quite similar end users).In addition to the fact built on the central roads There in that it makes an impression are currently 64 stores across distribution through the thick appearance in Vietnam significant urban communities, In addition, SB also cooperates the downtown areas the with hotels, airports and coffee However, The coffee brand a uses likewise acquires focuses by picking the correct shops in the office area terms of The shops are located in house diversifies area for the intended interest than SB in online group The Coffee House stores distribution are constantly situated in simple to-discover areas, simple stopping, the front of the focal point of the locale, where the eye-getting road see TCH has reached 160 stores covering 14 provinces and cities which are usually big cities, of which the highest concentration in Ho Chi Minh City, the rest scattered in the remaining city such as Hanoi, Nha Trang, etc + Online: + Online: Adapting to the development of TCH operates its own delivery technology, Starbucks develops team from operator to delivery an ordering application through staff Specifically, the delivery the Starbucks App, allowing service in the inner city through customers the coffeehouse.com website and anytime, anywhere to place orders the mobile phone app The Coffee House, in cooperation with food delivery applications such as Lala.vn, Grab Food and Now + Advertising Promotion + Advertising ( Mainly Digital -Facebook The way of conveying Marketing) Starbuck's fanpage has 512,000 the message of TCH is -Facebook: TCH's fanpage has 512,000 followers "strange" contrasted followers with with the shared belief of interesting posts about brands in F&B industry, promotions, new product not just concentrating on launches or special occasion advancing items on the wishes, posted on golden hours media channels From frames suitable for young people the good 'ol days, the -Youtube: 3.5 benefit of mindful and the the obligation to make creative change video has won -Website: Starbucks has an eye- the living condition of the hearts of customers catching website with all the everybody quite solid -Website: TCH has a beautifully necessary information thousand designed, With nearly subscribers, very attractive top need of TCH website moreover, using tools like Google AdWords makes it -Facebook hashtags are not very easier to reach customers reliable to everyone, but with >In October 2019 ,the straw Starbucks, they have shown a reduction quick effect for the discount campaign at The Coffee House - "Thank you for refusing to use straws" was posted on facebook, youtube and TCH's website and caught the attention of many people + Public Relation: - After a few weeks, the straw reduction campaign: TCH began reducing the disposable plastic straws at the entire system has consistently been the campaign through hashtags + Sale Promotion A new Starbucks discount +Sale Promotion: campaign for customers is that TCH discounts 20% all drinks they will get a discount in the to encourage people to support afternoon if they buy Starbucks after the launch of the campaign and have the hashtag #TreatReceipt on Facebook that morning +Process serving Process A greeting by a Starbucks +Process serving employee Starbucks is frequently Greet and invite customer to an exceptionally order bustling spot, Customers order and their employees need to serve Overall Objective The common goal of both TCH and SB is to increase market share and increase sales The elements of a marketing mix strategy play a very important role in achieving overall objective An appropriate pricing strategy helps the company to attract more customers Futher more, IMC (Integrated marketing communication) makes a substantial contribution to approach more customers by attractive promotions Besides, product quality as well as good service process won more sympathy from customers The above factors will help gradually gain the trust from customers as well as gain market share and increase revenue Infact, in 2018, TCH applied a better marketing mix strategy than CB 2018 is the rise of TCH, usurping SB to occupy the second position in revenue The second position in the ranking has had a big change when TCH, with a growth rate of nearly 100%, has knocked Starbucks off The TCH's revenue in 2018 reached nearly 670 billion VND, while SB only reached less than 600 billion VND, although before that in 2017, SB's revenue was higher than TCH by more than 100 billion VND (Tuyet Lan, 2019) III - Develop and evaluate a basic marketing plan In this part, I would like to write up a marketing plan for a new service to an existing market 3.1 Company Overview + Brief Starbucks history According to Starbucks coffee company (2020) The first Starbucks store was opened in Seattle, Washington, on March 30, 1971 1982, Howard Schultz joins Starbucks as executive of retail tasks and marketing Starbucks starts giving espresso to fine cafés and coffee bars 1998, Starbucks had more than 1,500 stores in North America and the Pacific Rim February 2013, Starbucks officially launched in Vietnam with the first store opening in Ho Chi Minh City + Mision Inspire and nurture the human spirit - one person, one cup of coffee and one neighborhood at a time (Starbucks coffee company, 2019) Besides, Starbucks also made statements about environmental mission (Strive to buy, sell and use eco-friendly products; Develop innovative and flexible solutions to bring about change, etc) + Vision Embrace local and global markets, inspiring a new cup of premium coffee everyday + Core values Starbucks is returning to its core values - luxury cafes The space of Starbucks cafes both brings the taste of modern life and gives customers the classic beauty 3.2 SWOT Analysis for Starbucks From the analysis of external environment, inside Starbucks when entering Vietnam market as above, we can create a SWOT model to analyze its strengths, weaknesses, opportunities and threats as follows: STRENGTH -As a famous global brand, having WEEKNESSES -High price ( compared to other coffee successful experience in Asian market brands in Vietnam) and known by many Vietnamese people -Products can be imitated and lack of -Good product quality, professional products too unique service -Business approach towards people and the environment -The problem of raw materials, while Starbucks mainly imports coffee from the outside OPPORTUNITIES -Expanding markets outside the US, THREATS -Compete with some famous coffee especially potential as Viet Nam- brands in Vietnam ( Trung Nguyen, The young and open market Coffee House, etc) and companies that sell cheap coffee -Concerns about food safety and -Coffee drinking habit with strong and hygiene in Vietnam This is the bitter taste of Vietnamese people motivation for consumers to find new options -The average income of Vietnamese people is increasing As a matter of first importance, Starbucks is the most celebrated and amazing brand in the food and refreshment industry Its size, volume and number of steadfast clients has expanded after some time and that has a solid fascination for Vietnam advertise Starbucks items are astounding quality, appear to be earth cordial and generally appropriate across areas Therefore, they can bear to charge clients at a significant expense, which a great many people are eager to pay In addition to the fact that this means incredible benefits, however it is additionally all around perceived as a standout amongst other bistro chains Further more, regarding quality, flavor and normalization - because of its high mix of and delectable espresso, Starbucks has extended all around It offers fantastic quality and steady standard items at all areas Starbucks offers a high offering cost to amplify benefits, yet this makes it harder to sell This interior vital factor is a shortcoming since it confines the organization's piece of the pie, particularly to generally low-pay buyers While Starbucks might be known for its smoothies, pumpkin zest nets and huge chocolate bread rolls, they don't generally have the most one of a kind market Loads of cafés, chains or something else, offer comparable items and are simply behind the enormous names of Starbucks Besides, Starbucks items are anything but difficult to duplicate For instance, littler nearby contenders can create drinks that are not actually the equivalent yet are fundamentally the same as the organization's items Indeed, even the inside plan and space at Starbucks stores are anything but difficult to reproduce This business condition has reinforced the opposition Extending in creating markets - Starbucks has a bistro essentially in the US Worldwide development in certain territories of Vietnam can give an extraordinary chance to the organization Concerns about food safety and hygiene in Vietnam This is the motivation for consumers to find new options like Starbucks products Additionally, the average income of Vietnamese people is increasing, the more demands In terms of threat, Starbucks has to compete with some famous coffee brands in Vietnam ( Trung Nguyen, The Coffee House, etc) and companies that sell cheap coffee Further more, coffee drinking habit with strong and bitter taste of Vietnamese people is an unfavourable for Starbucks 3.3 Marketing Objective A good marketing objective is beneficial to accomplish what a business wants from its marketing activities and it is significant that marketing objectives and marketing plans support the general destinations of the business (Jim, 2017) In terms of Starbuck, there are main marketing objectives for a new product ( existing market) 1st MO : Raise awareness of targeted customers about new products With new product, Starbucks wants 90% of its targeted customers to know the product within months, 65% of which love the product and 75% of which use the product 2nd MO : Increase market share and sale after launching new products Starbucks needs to release a new product into the market to add at least 7% to overall market share and increase sales of new products 5% over each month 3.4 Segmentation, Targeting and Positioning (STP) + Segmentation According to Mike (2018), market segmentation helps businesses save time and money Moreover, it helps businesses identify strengths, weaknesses and opportunities for their brands Starbucks classifies based on criteria: Geographic, Demographic and Psychographic -Geographic: Starbucks focuses only on two big cities, Hanoi and Ho Chi Minh Hanoi and Ho Chi Minh defined as a national central cities to become potential places for selling new products Especially, HCM city is the largest city in Vietnam in terms of population and economy - Demographic Starbucks' new products are aimed at young people with middle-income -Psychographic Starbucks' new products are aimed at young people with healthy lifestyles who prefer healthy drinks + Targeting Starbucks applies focus strategy : Targeted clients of Starbucks go from the age of 18 to 22 in the two females and guys however female clients represent most of deals customets Starbucks centers around understudies who need to appreciate the beverages with free-associated wifi in loosening up climate, visit with companions Following The Central Intelligence Agency (CIA, 2018), the population of Vietnam from the age of 18 to 22 is: Age 18-22 Hanoi Ho Chi Minh Total 0,8 million city 0,6 million 1,4 million This is a decent number for Starbucks to approach Futher more, this section likewise has diverse tastes and interests and they are very much aware of their needs Quality Price Based on perceptual maps, we can see the position of products : Starbucks, Lofia and Fresh Saigon All companies sell healthy drinks The reason why customers buy products based on price and quality is that targeted customers who care about their health will naturally demand high quality products Moreover, the right price is always one of the top priorities for consumers in any product In tems of Starbuck, they have a competitive advantage that is the famous brand available The launch of new products will make many consumers curious and want to experience Starbuck's new products are priced and quality between Fresh Saigon and Lofita 3.5 Tactics and Actions In this situation, I would like to change elements of marketing mix of Starbucks: Product, Price and Promotion + Product: Core products are juice and Detox with no sugar + Price startegies Starbucks applies new product pricing stategies -Market penestration strategy : Low price at first (35-45 VND) and encouraging trials After gaining market share, pushing prices up to the most reasonable + Promotion Starbucks will apply IMC strategy -Advertising: Attractive articles and promotions about new products are posted on social networking sites such as Facebook, Youtube and Website during golden hours - Direct marketing Starbuck will applies couponing: use printed media to get feedback from readers with cut-out coupons in exchange for a discount +Sales promotion Providing discount, voucher to encourage potential customers to use the new product 3.6 Evaluating and Monitoring marketing plans Starbuck applies the strategy of giving 20% discount vouchers for each customer when buying the next product on the condition that: Invite new users of Starbucks products Therefore, Starbucks will monitor the progress of the marketing plan through the number of vouchers that customers give them when they buy new products IV PESTLE Analysis for Starbucks According to Will (2020), PEST analysis studies the effects of factors in the macro environment, including political, economic, social, environment, technological and legal factors.These factors are external factors of the business and industry 4.1 POLITICAL First of all, political factors unequivocally influence the misuse of business openings and the accomplishment of the business objectives (Julian and Campisi, 2016) Vietnam is one of the countries with the most stable politics in Southeast Asia The Government issued Resolution No 13 / NQ-CP of May 10, 2012 on a number of solutions to remove difficulties for production and business, supporting the market Restructuring of state-owned corporations and enterprises so that manufacturing enterprises have competitiveness, advanced technology and skilled labor - this is a long-term solution that the State is particularly interested in 4.2 ECONOMIC Economic factors affecting purchasing power, changing consumer demand or the development trend of industries (Swan and Trevor, 2014) Vietnam is one of the Southest Asia's quickest developing economies and has a plan to be a created nation in 2020 As per the Word Bank, the gross dosmetic produtct (GDP) in Vietnam is expanding In addition, per capita pay additionally increments Likewise, Vietnam consumer pricce Index (CPI) additionally ascends as of late As indicated by the report of General Statistics Office of Vietnam, just in 2016, CPI expanded from 100.17 Index focuses in January to 103.31 Index focuses in September From these information, it is protected to state that Vietnam is a likely market for any business The economy is developing which is a perfect pattern that makes Vietnam turns into a decent goal for Starbucks to broaden their business 4.3 SOCIAL-CULTURAL Social elements affect clients just as business exercises of the business, which structure the brain science and tastes of buyers (Umar, 2016) Vietnam has a populace of in excess of 90 million and a fourth of those are under 35 years of age 65% of Vietnamese espresso customers drink espresso times each week, preferring men (59%) With respect to espresso, 21% of customers utilize moment espresso to times each week and are marginally disposed to female purchasers (52%) Level of espresso use at home (In home) and outside (Out of home) is equivalent to 49%/half The most well-known opportunity to drink espresso is from 78 am Espresso drinking propensities: The three principle factors that impact the choice to savor espresso the bistro are the taste, style and brand of espresso utilized, 44.7% of individuals drink espresso At the eatery, it is affirmed that the preference for (specific, most purchasers lean toward espresso with an unpleasant taste and fragrance), 39.9% addressed the style of the shop (peaceful, rich, polished, simple to accumulate) making companions are the attributes that draw in individuals to drink), and just 15.4% pick a brand 4.4 TECHNOLOGICAL Technology innovation greatly affects the development of the business (Borgmann and Albert, 2006) The data innovation in Vietnam is growing quickly In 2012, there were around million work stations and PCs were utilized which methods for each 100 occupants, there were around 7.86 PCs In 2013, the quantities of cell phone endorsers were around 124 million and in excess of 33 million individuals which was around 37% of populace is associated with the web In 2014, Vietnam positioned twentieth in the word for the quantity of web clients and 20% of the all out web clients have just made buys on the web As indicated by this information, unmistakably the innovation in Vietnam improved improve It very well may be a decent apparatus that causes Starbucks to promote, circulate and expend their items 4.5 ENVIRONMENT Infrastructure system, road transport in Vietnam is quite low It will be difficult to find a suitable business premises Natural disasters and some unpredictable fluctuations from the weather can affect the material coffee growing areas V Conclusion By analyzing the marketing mix strategy, we can see how The Coffee House and Starbucks apply the strategy to achieve the overall goals of the business As well as SWOT, PESTLE analysis to see the strengths, weaknesses or opportunities or threats for businesses Moreover, a business needs to have the right marketing strategy to boost sales VI References: Kotler, Philip (2012) Marketing Management Pearson Education p 25 Will, K (2020) PEST Analysis [online] Investopedia https://www.investopedia.com/terms/p/pest-analysis.asp Julian M Campisi (2016) “Re-considering Political Risk in Developed Economies” Journal of Political Risk (8) (August); http://www.jpolrisk.com/re-considering-political-risk-analysis-in-developed-economies/ Swan, Trevor W (2014) "Economic Growth and Capital Accumulation'" Economic Record 32 (2): 334–61 doi:10.1111/j.1475-4932.1956.tb00434.x Umar, F (2016) "How Social Factors Affect Business Environment" [online] Forbes Borgmann, Albert (2006) "Technology as a Cultural Force: For Alena and Griffin" (fee required) The Canadian Journal of Sociology 31 (3): 351–60 Retrieved 22 June 2020 Starbucks Corporation (2020) Our Heritage, available at: https://www.starbucks.co.uk/about-us/our-heritage (Accessed 23 June 2020) The Coffee House (2020) Collection Menu , available at: https://www.thecoffeehouse.com/collections/menu The Coffee House (2019) Chiến dịch giảm ống hút The Coffee House - "Cảm ơn bạn từ chối dùng ống hút, available at: https://www.thecoffeehouse.com/blogs/news/go-green 10 Tuyet Lan, (2019) "Đại chiến" chuỗi cà phê: Highlands quy mô áp đảo, The Coffee House tăng trưởng gấp đôi để vượt mặt Starbucks, available at: https://cafef.vn/dai-chien-chuoi-ca-phe-highlands-quy-mo-ap-dao-the-coffee-house-tangtruong-gap-doi-de-vuot-mat-starbucks-20190612110847722.chn ... from the weather can affect the material coffee growing areas V Conclusion By analyzing the marketing mix strategy, we can see how The Coffee House and Starbucks apply the strategy to achieve the. .. 23 June 2020) The Coffee House (2020) Collection Menu , available at: https://www.thecoffeehouse.com/collections/menu The Coffee House (2019) Chiến dịch giảm ống hút The Coffee House - "Cảm ơn... Specifically, the delivery the Starbucks App, allowing service in the inner city through customers the coffeehouse.com website and anytime, anywhere to place orders the mobile phone app The Coffee House,