Phân tích chiến lược MARKETING MIX 7P của THE COFFEE HOUSE và STARBUCK Việt Nam, Phân tích SWOT, PESTLE của Starbuck

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

I INTRODUCTION 3

II MAJOR FINDING 4

2.1 MARKETING MIX 7Ps 4

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 andcompare 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 theimprovement 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 thesecond Starbucks in Vietnam, while referencing The café is alluding to a Vietnameseespresso brand At present, The Coffee House has arrived at 80 stores, serving inexcess 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'slargest coffee company, established in 1971 in the USA Starbucks now has more than17,000 stores in more than 50 countries around the world In 2013 starbucks opened itsfirst store in Ho Chi Minh City Nowadays in Vietnam, Starbucks coffee brand hasbeen 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 7 elements: Product,

Price, Promotion, Place, People, Process, Physical evidence ( Kotler and Philip

(2012)

Product + Core product/ service

-Initially, TCH suppliedmainly coffee

The formula of roasting andblending Tica's Arabica andRobusta beans creates aoverall balance of bitterness,sweetness, sourness and itmakes coffee stronger,aromatic

+ Core product/ service-Initially, SB provided its mainproduct as coffee

There are 4 types of coffeebased on 4 different criteria:

roasted coffee;medium roastand dark roast; Normal coffee(with caffeine), etc

Currently, coffee, tea, cakes,Frappuccino drinks, smoothies

Basically, the type ofproducts of both TCHand SB are B2C(business to consumer)

In terms of productdecisions: All SBproducts are highquality (qualityconformance) SBproducts are so

services/products Apart

from popular cafe items,

TCH also develops many

other products such as tea,

macchiato, fruit drinks and

side dishes like cake, bread

and snack

+ Product / service support

Payment by card, momo, etc

if customers do not use cash

(The Coffee House, 2020)

are all main products ofStarbucks

+Additional services/products Fruit tea (Teavana iced tea- forpeople who do not drinkcoffee), seasonalproducts(Christmas BlendEspresso Roast), limited editionproducts, products for festiveseasons such as Christmas,Valentine ( Starbucks cup)

+Product/ service support

SB Vietnam launched cards andmobile application instead ofcash payment

SB Vietnam will also introducelimited designs of each season

consistent that they arewilling to give up theirproducts or productlines if those productshave a major impact ontheir key products Forexpamle, SB oncediscarded its sandwichline because itinfluenced the flavor ofthe coffee they sold.About style anddesign of TCHproducts Fordrinking waterproducts: TCH startsfrom ordinary plasticpaper cups, or glasscups shared for allproducts and next isthe cup withinsulation, Themost recent design

of TCH coffee beans

is wrapped in papermaterial -environmentallyfriendly

Price +Pricing approach:

At the beginning when enteringthe market, TCH did not paymuch attention to profit, whichhelped to attract many potentialcustomers After fullypenetrating the market, TCHgradually won over customers'hearts and profits began toincrease

+Pricing strategy:

The average price of Urbanstation, Passio ranges from VND15,000 to VND 40,000, whileTrung Nguyen and StarbuckCoffee are from VND 40,000 toVND 90,000 The gap of VND30,000 to VND 60,000 is TCH'smarket TCH has solved theproblem: customers can sit toenjoy coffee in a peaceful,luxurious space like the "big"

foreign countries such asStarbucks or The Coffee Bean at

a reasonable price

+Pricing approach:

The prices of SB products arehigher than usual ( VND80,000- VND 180,000)

+Pricing stategy:

-Multiple products: SB alsooffers savings combo productsand ancillary services like aVND 80,000 savings breakfast

These combos are aimed atcustomers who care about price

-Psychological pricing strategy:

SB applies middle price:

Starbucks products come in 3sizes: Short, Tall and Grande

After that, SB added 2 largesizes: Venti and Trenta

Immediately, Grande becamethe "most reasonable" choice inthe eyes of customers

+Factors influencing pricing

TCH applies theright marketpenetration strategy.When Vietnamesepeople areaccustomed todrinking coffee atquite expensiveprices from brandssuch as Starbucks,Coffee Bean, etc, theprice of VND30,000-60,000 withWestern style is stillbeing ignored It isthis reason that TCHhas carefullyresearched andentered the market.Conversely, SB doesnot aim at prices butfocuses on productvalue, by giving themedia message thatthey provide highvalue products tocustomers

+ Factors influencing pricing Infation, Price competitioncomes from competitors

+ Offline:

TCH uses a direct salesdistribution channel (direct toend users).In addition to the factthat it makes an impressionthrough the thick appearance insignificant urban communities,the brand likewise acquiresfocuses by picking the correctarea for the intended interestgroup The Coffee House storesare constantly situated in simpleto-discover areas, simple

Infation, Price competitioncomes from competitors andlunch new products

+ Offline:

TCH uses a direct salesdistribution channel (direct toend users) The store system isbuilt on the central roads Thereare currently 64 stores acrossVietnam

In addition, SB also cooperateswith hotels, airports and coffeeshops in the office area

Further more, due tofierce competitionfrom the Vietnamesebrand group, SBstarted runningevents ordiscounting products

to keep customers inorder to keep thegrowth pace

Basically, TCH and

SB are quite similar

in terms ofdistribution Theshops are located inthe downtown areas.However, The coffeehouse diversifiesthan SB in onlinedistribution

stopping, the front of the focalpoint of the locale, where theeye-getting road see TCH hasreached 160 stores covering 14provinces and cities which areusually big cities, of which thehighest concentration in Ho ChiMinh City, the rest scattered inthe remaining city such asHanoi, Nha Trang, etc

+ Online:

TCH operates its own deliveryteam from operator to deliverystaff Specifically, the deliveryservice in the inner city throughthe coffeehouse.com website andthe mobile phone app TheCoffee House, in cooperationwith food delivery applicationssuch as Lala.vn, Grab Food andNow

+ Advertising ( Mainly DigitalMarketing)

+ Advertising

-FacebookStarbuck's fanpage has 512,000

The way of conveyingthe message of TCH is

-Facebook: TCH's fanpage has

512,000 followers with

interesting posts about

promotions, new product

launches or special occasion

wishes, posted on golden hours

frames suitable for young people

-Youtube: With nearly 3.5

thousand subscribers, the

creative change video has won

the hearts of customers

-Website: TCH has a beautifully

designed, very attractive

website moreover, using tools

like Google AdWords makes it

easier to reach customers

>In October 2019 ,the straw

reduction 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

followers

-Website: Starbucks has an catching website with all thenecessary information

eye Facebook hashtags are not veryreliable to everyone, but withStarbucks, they have shown aquick effect for the discountcampaign through hashtags

"strange" contrastedwith the shared belief ofbrands in F&B industry,not just concentrating onadvancing items on themedia channels Fromthe good 'ol days, thebenefit of mindful andthe obligation to makethe living condition ofeverybody quite solidhas consistently been thetop need of TCH

+Sale Promotion:

TCH discounts 20% all drinks

to encourage people to supportafter the launch of the campaign

#TreatReceipt on Facebook thatmorning

+Process serving

A greeting by a Starbucksemployee

Customers order their

Starbucks is frequently

an exceptionallybustling spot, andemployees need to serve

Confirm order

Print the invoice and invitecustomer to choose the table

Transfer the order to the bar

Staff delivery the drink (food) tothe customer

+ Customer process

Order, payment at the counter

Get the bill

Choose a table

Receive the drinks andenjoy

drink/food

Make the payment

Staff delivery the drink (food)

to the customer

+Recruiment and selection

clients as effectively ascould be expected underthe circumstances whileTCH have moreabundant staff

+Recruiment and

determination

- Prioritize experienced staff,

great correspondence in both

English and Vietnamese

- Love the activity and want to

create themselves in the

administration business

-Recruitment and training,

employee screening monthly

+ Attitudes and behaviour of

staff:

-Friendly, enthusiastic and

always take care of customers,

(from service, cashier to

security) For example, the

glass of purified water you

drink will always be filled,

your vehicle will be taken to

your place

- Do not wait until being

reminded that employees

always meticulously observe

the activities and wishes of

customers to support at all

times

-SB is always looking forpeople who are passionateabout coffee and good atmixing techniques

-meticulous recruitmentprogram: send an experiencedmanagement team and barista

+Attitudes and behaviour ofstaff:

-Customers were welcomedwith goodwill, served aspecial cup of coffee and werelistening to the extensiveknowledge about coffee andfirsthand to see thepreparation technique Thiscontributes to customersalways eager to come backnext time

Serving clients in only

3 minutes, neverserving drinks for over

30 minutes is thedistinction that makesStarbucks effective.With just 2receptionists and 1complete staff,Starbucks can serve

220 clients/hour Interms of TCH'semployee, Person-centered ”from thesmall things but hasbrought tremendouseffect Every decisionand action at TheCoffee House beginswith the mission

"Deliver Happiness".From pleasure tostaff to customersatisfaction This hasmade them wild fans

of TCH in a verynatural way

Evidence

-TCH's space is intended tomake the "home" feeling ascould be expected under thecircumstances: yellow-tonelight to expand the comfortableinclination, skyscraper designconsolidating the utilization ofmany glass, windows, making

an open and open space, tablesand seats arranged by zone,TCH likewise has a long table

in the style of "Cooperatingspace" - an open workspace, Most of the tables here areequipped with sockets to servecustomers

-Classic architectureintermingled with modern,decorated with creativepaintings, trees opened a cooland clean space Futher more,recently released The CoffeeHouse Signature, this highlight

is the thing that attractsvisitors TCH Signature hasextremely wide glass space;

Each new and renovated storeuses one of the four designmattress concepts (StarbucksCorporation, 2020)

-Heritage Cafe with woodenfloors, stained concrete floors

or flower-tiled floors, metalchairs and factory-stylelighting Large and long tables,club chairs and wooden blindsevoke a sense of the turn of thecentury

-The Artisan Store honorssimple materials such asexposed steel beams, brickwalls, two-winged glasswindows of the factory andhand-polished woodconstructions at an innovativegathering place for culturalactivities and art

-Regional Modern uses brightspace, with lighting systems tocreate a quiet and moderngetaway after the noisy,bustling world

-The Concept Store is a unique

State of being ofStarbucks fusesanyway not obliged toits store structures,logo, coffee cups, andnapkins Starbucksoffers customers analluring atmosphere

It has gotten anotherapproach to managestore structures Thenew techniquerequires Starbucksmakers to look ateach store solely toensure that it looksespecially close by

As far as TCH, theycontinually bringclients another spaceexperience howevernatural

highlighted with 2 luxurious

orange - black colors Lots of

green trees also make this

space a truly relaxing place in

the heart of Hanoi

environment created by ourdesigners to explore theinnovations within the cafe

Overall Objective

The common goal of both TCH and SB is to increase market share and increase sales The 7 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 moresympathy 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 abig change when TCH, with a growth rate of nearly 100%, has knocked Starbucks off The TCH'srevenue 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)