Running head: STRATEGIC MARKETING PROJECT FOR TRUNG NGUYEN CAF CHAIN

Strategic Marketing Project for Trung Nguyen Caf Chain Group 6 Le Thi Hong An Nguyen Tan Tai Truong Trung Tai Nguyen Thi Phuong Tra Dinh Thi Mai Trang Nguyen Minh Thien

Marketing System / MBUS 3.2 December 24th 2012

Dr. Nigel Bairstow

STRATEGIC MARKETING PROJECT FOR TRUNG NGUYEN CAF CHAIN

Executive summary Trung Nguyen caf chain was found in 1998 which has become one of the famous brand names in Vietnam. With a rapid increase of the number of store in its chain, the channel management based on franchise system has many critical issues. Besides, with the penetration of many international famous brands in the coffee supply chain, Trung Nguyen is confronting aggressive challenges. After internal and external analyses, the strategic marketing project finds out Trung Nguyens objectives that are satisfying its current customers and increasing market share. The project suggests a marketing mix with 4 Ps which product (service) strategy is focus on to diversify the menu to meet customers' different tastes and to apply a quality standard management throughout the chain for staff training program, infrastructure and facilities; A united pricing strategy which is equal to main competitors will be applied for whole chain; For place strategy, Trung Nguyen still selects franchise channel for expanding its business; Promotion strategy will concentrate on social media and innovative promotion programs.

STRATEGIC MARKETING PROJECT FOR TRUNG NGUYEN CAF CHAIN

Strategic Marketing Project for Trung Nguyen Caf Chain Trung Nguyen, which was established in Buon Me Thuot in 1996, is a largest coffee producer and distributor in Viet Nam. Trung Nguyen owns various coffee brands such as Creative Coffee, Weasel and Legendee, Passiona, G7 instant coffee, etc Beside those brand names, Trung Nguyen also has been operating a nationwide franchise system, called Trung Nguyen coffee shop chain since 1998. After 14 years, Trung Nguyen has had more than 1,000 outlets throughout Viet Nam and other countries such as Japan, Thailand, Cambodia, Malaysia, and Germany. However, from recent year, along with the store number increasing, their market share oppositely has decreased a little. This research will investigate in analyzing Trung Nguyen coffee shop chain situation, declaring what is the reason for this slightly down market share and show some marketing suggestions for reversing this decreasing. Situation Analysis Company Analysis Trung Nguyen's resources. Production capacity demonstrated in a number of characteristics such as financial capacity, the ability to supply product, product quality, and so on. In 2005, the first Trung Nguyen Coffee factory put into use coffee processing plant roasters in Buon Ma Thuot City, with funds invested more than $ 10 million. By the end of 2012, Trung Nguyen coffee has four processing plants with a total capacity of 120,000 tons per year (Ha, 2012) Trung Nguyen coffee is also known as a business community. Currently, The Trung Nguyen Group has nearly 2000 employees. In addition, it is also indirectly created jobs for more than 15,000 employees through the franchised coffee shops across the country. Culture of Trung Nguyen coffee built on the foundation of five core values and three beliefs. This is expressed throughout its logo and slogan. The slogan is the most important of the

STRATEGIC MARKETING PROJECT FOR TRUNG NGUYEN CAF CHAIN

brand is delivered to consumers, the slogan "from creative sources" of Trung Nguyen will be reflected in expectations of Trung Nguyen coffee consumers always have new ideas, ideas creativity to create success for them. Business strategy. Product strategy, product delivery, client positioning, and communication are the keys of Trung Nguyens success (Do, V.T., 2012). Trung Nguyen has created a sequence of diverse products in three distinct product lines is a universal product, intermediate and advanced. Trung Nguyen offers products to market through a franchise system of distribution channels including traditional channels, G7 Mart supermarket. In addition, TrungNguyen is interested in developing the brand Trung Nguyen Coffee franchised chain. Up to now, the Trung Nguyen coffee system development up to 1,000 coffee shops in Vietnam and franchise stores in other countries such as Japan, Singapore, Thailand, Cambodia, China, Ucarine U.S., Poland ... Trung Nguyen coffee is one of the company who has a largest franchise network of Vietnam. Strengths and weaknesses. Strengths of Trung Nguyen coffee is as much experience in producing and blending coffee. Factory is located at the position of the good material, rapidly growing franchise system, Trung Nguyen coffee brand in a distinctive ethnicity. Besides, there are some weaknesses such as inconsistent quality, pricing among franchised stores. It seems that there is no standard in chain management Market Analysis In the view of coffee houses companies, Vietnam is one of most attractive market in the world because of its potential profitability (See Appendix A for more detail about Vietnamese market). Although Vietnam is second largest coffee producer after Brazil, accounting for more than 14% in market share, its coffee consuming rate is very modest compared with other

STRATEGIC MARKETING PROJECT FOR TRUNG NGUYEN CAF CHAIN

countries. A Vietnamese person consume 1.15 kg coffee per year, still considerably lower than other countries such as Brazil 5.8 kg, Laos 1.4 kg, Philippines 1.38 and the most consuming country is Finland with 12.26 kg coffee per year (Vietnam Annual Coffee Report, May 25, 2012). One of the most popular favorites entertainment ways of Vietnamese people is going to coffee house with friends, family or with customers. This traditional culture in line with rapidly growing economy, we have witness a surge in coffee house industry. The coffee house opening in recent years has reach a very aggressive pace, this become a trend in selection of young entrepreneurs to start up their business. Among thousands of coffee houses in Vietnam, we can easily recognize there are two largest coffee house chains: Trung Nguyen and Highlands (See Appendix B for more details)

Fast food service, 384

Coffee shop /Bar, 2079.5

Street stall, 10753.7

Restaurant, 13638.7

Figure 1: Market share of Vietnam Food Service 2010 , in million USD unit. Adapted from Market Analysis Report 2012: Foodservice profile Vietnam, by International Market Bureau, Agriculture and Agri-Food Canada, 2012, p.6. In 2010, total market value of Vietnam coffee houses industry is about 2 billion US dollars and increasing with growth rate of 13% per year until 2015 with forecasted value of 3 billion US dollars. Experts in the fields say that the market has still so fresh, and other companies

STRATEGIC MARKETING PROJECT FOR TRUNG NGUYEN CAF CHAIN

have too many opportunities in Vietnam, especially some strong brand name such as Starbucks. Therefore, in next few years, we will see the competition in the market becoming more severe. This higher competitive situation will push local companies have to adapt to new situation and change their strategy as soon as possible to survive in market.
3500 3053.3 3000 2500 2079 2000 1500 1000 500 0 2005 2009 2010 2015 - forecast 965.4 1909

Figure 2. Market value of Coffee shop and bars in Vietnam, in million USD unit. Adapted from Market Analysis Report 2012: Foodservice profile Vietnam, by International Market Bureau, Agriculture and Agri-Food Canada, 2012, p.6. Competitor Analysis Consumption of a potential market of 90 million people with the habit of using coffee everyday in Vietnam has made the market attractive irresistibly. Following is an overview of competitive environment throughout the Forter Five Forces Analysis. The power of suppliers. Trung Nguyen has invested large coffee plantations to produce raw material for coffee beans production. It is one of few brands who have a completed supply chain from providing coffee beans (raw material) to cup of coffee (end-products) to the last

STRATEGIC MARKETING PROJECT FOR TRUNG NGUYEN CAF CHAIN

consumers. In other words Trung Nguyen is a supplier of raw materials for their production. Thus, for Trung Nguyen, there is no competitive pressure from suppliers. The power of buyers. As customers are also people using service and the value of service is not high, the power of customers is low. Threat of new entrants. With the development in main urban cities in Vietnam, caf chain is one of the most attractive industries. Besides, the globalization trade policy, Vietnam has become a potential market; as a result, Trung Nguyen has faced to new entrants. Starbucks is one of the most famous international brands in over the world with a network of 17,800 coffee shops in 49 countries. They have a long history with the first coffee shop opened 1971. And they open the first coffee shop in Vietnam at the beginning of December 2012. In the near future, Starbucks is one of the strongest competitors which Trung Nguyen will confront with. Threat of substitute products. Trung Nguyen cafs chain not only provides coffees but also an experience of enjoys coffee in special space. Hence, it may not have substitute products. However, with the popularity of coffee machine and convenience of instant coffee, people who loved coffees can enjoy cup of coffee at home. Competitive rivalry. As what we have mentioned, there is a high-level competitive in caf chain industry. This means that Trung Nguyen coffee has many direct and indirect competitors. For the project, we focus on its major competitor: Highlands caf chain.

STRATEGIC MARKETING PROJECT FOR TRUNG NGUYEN CAF CHAIN

Trung Nguyen Highlands Coffee 35.80 Gloria Jeans Coffe Beans & Tea leaf Buds caf Angel-i-us Others

56.60

6.00 0.40 0.20 0.40 0.60

Figure 3. Market share by brand - 2010. Adapted from Market Analysis Report 2012: Foodservice profile Vietnam, by International Market Bureau, Agriculture and Agri-Food Canada, 2012, p.8 Why Highland Coffee is the main rival? Highlands Coffee is a popular Vietnamese brand coffee with 60 branches in Vietnam. They have just chosen stores in the beautiful facades in the cities. This is not only show Highlands coffees level but also position Highlands Coffee is a luxury coffee brand. Besides, although they provide traditional taste, they also have a diversified menu from the world's famous coffee to Vietnamese traditional coffee dishes with competitive prices in a comparison of Trung Nguyen. With the way of business without franchise, they make sure to serve the identical quality throughout their supply chain so that they bring to customers the same experience in every Highlandss coffee shop in Vietnam.

STRATEGIC MARKETING PROJECT FOR TRUNG NGUYEN CAF CHAIN

Customer Analysis First of all, we analyze the coffee culture traits of Vietnamese people. Unlike western countries, Vietnamese love to taste real strong black coffee. Actually, they would rather drink pure coffee than coffee with milk or mixed coffee with industrial chemical. Another important characteristic of Vietnamese coffee culture is the way they taste a cup of coffee. People enjoy seating along the street, talking to friends, and waiting for caf drops. As a result, coffee shops are usually placed along the street, in the crowded residential area. The next point that we need to make clear is that what people need in a coffee shop. So the first need is drinks. It is obviously that most consumers of Trung Nguyen like a hot charming cup of coffee or a glass of coffee with ice. However, a number of consumers cannot drink coffee. They go to Trung Nguyen coffee shop is not for coffee but actually for their business and their friends. In that situation, other drinks such as fruit juice, soft drink must be served. There is no doubt that people going to the shop not only for a cup of coffee but also for a place. They also need an open environment with fresh air, beautiful view. Real life observation reveals that lots of consumers of Trung Nguyen coffee shop chain do their purchase at weekend. In working time, the number of customers is lower. They are usually white collars and entrepreneurs who need to meet their customers, visitors from other places, non-working people. The most crowded time is usually at the end of the day, especially after work. It is easy to recognize that there are many factors that affect the decision of the customer. First, price is supposed to be the first factor that affects consumer decision. When price is higher, customer will spend less time and money on coffee shop and vice versa. Second, coffee quality and taste are the most vital reason for a customer to visit a coffee shop. So a stability of quality

STRATEGIC MARKETING PROJECT FOR TRUNG NGUYEN CAF CHAIN

10

will likely form the customers loyalty. Another factor is the convenience of coffee shop. In other words, customer not only enjoys the quality of drink but also they care about the service. They prefer well-equipped coffee shops with comfortable sofa, Wi-Fi, and a well-trained sale staff. The last factor that we should not ignore is place of shop. This factor is vital important to upper class, who do not care much about the price but for time and service. With premium price strategy, Trung Nguyen target market is the middle and upper class customer in society. Although there is no restriction to other class, people with high income or entrepreneurs are those who visit coffee shop more frequently. Customers, who usually enjoy coffee at Trung Nguyen coffee shop, are generation Y, generation X and baby bombers. Younger people, family with children are seldom attracted by coffee shop chain. Environmental Analysis Beside those conditions such as current market, customer, competitor, Trung Nguyen coffee shop chain also be affected by other uncontrollable factors: Political factor. Vietnam is on the way to integrate with other countries all over the world. It is the good opportunity for Vietnamese enterprises join to global market and opening their activities. With the coffee shop business plan, it is easy for foreign brands join our market. They are not only competitors, but also the motivation for each one effort to satisfied customers. Economic factor. Economic crisis is also getting influences to the coffee shop market. Customers compare and find out another way to save their money. They may have instant coffee instead of coming to coffee shop, or choosing another shop to have the comparability price. Decreasing revenues let these shops minimize their business and find out new markets. The penetration of new foreign coffee branches will be more attracted than the old domestic branch, especially to the youth.

STRATEGIC MARKETING PROJECT FOR TRUNG NGUYEN CAF CHAIN

11

Social factor. Vietnamese people have special coffee traditional and culture. Coffee shop is the common place for many activities: meeting each other, gathering people, negotiating with partners, working, and even getting pause. Therefore, coffee zone is always crowded. Besides, with the chain of a thousand coffee shops in Vietnamese territory, and many coffee shops all over the world, Trung Nguyen has a broad market. Its attractive flavor and taste satisfy many demanding customers. Focusing on coffee shops in big cities which is the most crowded like Ho Chi Minh City, Hanoi, Trung Nguyen has big potential customers with high educated and high income. Technological factor: The introduction of instant coffee and automatic coffee makers gives customers another choice for their coffee habit. They can easily serve themselves a cup of coffee inside their house or their office. Environmental factor: With tropical climate, Vietnam is the best place for coffee planting. In 2012, Vietnam is the largest coffee exporting country all over the world. That is the advantage for developing coffee business. Legal factor: In recent years, Vietnamese government has particularly focused on food safety and hygiene. Every food service including coffee shops have to has the certificate for this stuff. It makes their customers rely on what they are serving. Summary. Considering outside environment is a useful tool for any business understands the industry situation as a whole. As this time, Trung Nguyen coffee shop chain has many pro and cons also. The thing is how to balance the benefit of both businessman and customers, attract more customers even in this economic crisis and competition situation.

Running head: STRATEGIC MARKETING PROJECT FOR TRUNG NGUYEN CAF CHAIN

12

SWOT Analysis

S
Strengths
Competitive advantages based on supply chain. Large of natural coffee from big farms and collaborate with local Develop coffee resources for both export & domestic market Experiences on technology of coffee manufacturing of Robusta Local enterprises, know well local culture, habit of customer need Support from Vietnamese government Good resources of manpower and big land to develop coffee farm. Founder, Dang Le Nguyen Vu, a dedicated CEO, good passion on coffee business, Vietnam coffee King (Shmavonian, 2012) Huge market size of coffee drinking culture of Vietnamese, Rubusta with strongly taste and quite bitter (Trung Nguyen, 2012) Trung Nguyen brand name is familiar every province, cities & most of local Vietnamese.

W
Weaknesses
Focus on both export market and local market Cannot focus quality to chain store well. Gap in customer service at store chain Menu of Food & Drinking not diversified and not available. Clients feel not satisfy when visiting Lack of key staffs or key manager at store Keeping quality commitment with customers Still not a global brand name Take time to develop brand name

O
Opportunities
Strategic alliances with retailers to wholesaler in local Large market size at some potential provinces: mid-scale to upscale Become a merchandiser of coffee bean to over the world. Vietnam is recognized as one of biggest country to export coffee bean Export market is still big but still not explore at all Apply new technology of product development for new taste coffee Potential market for foreigner live in Vietnam or oversea consumer market

T
Threats
Loss of alliance partnership
Price affected by inflation and economic crisis Strong competitors entrance: Starbucks, High Land coffee, Gloria Jean, Coffee Bean, NYDC Competitors have good management system and can convince Trung Nguyen key staffs to join Will leave government support on roadmap WTO, AFTA Competitors with new products and more innovation to acquire new customer or existing customers as well

Running head: STRATEGIC MARKETING PROJECT FOR TRUNG NGUYEN CAF CHAIN

13

Summary. Trung Nguyen has competitive advantages based on supply chain from coffee bean manufacturing to coffee shop supply. Trung Nguyen, a familiar name with local persons, Vietnamese government support. With local persons habit with strongly taste matching with Robusta coffee (Thomasson, 2012) is core competencies product. Beside Trung Nguyens strengths, Trung Nguyen still has potential market in domestic and oversea that have not discovered. Especially, Vietnam is recognized one of the biggest exporting of coffee bean in over the world. That is good condition for Trung Nguyen build global brand name go further comparing currently. However, Trung Nguyen needs to improve customer service, quality management and manage franchise system better. Many potential direct competitor entrance existing market, they can acquire existing Trung Nguyens customers and manpower as well. Trung Nguyen needs move faster and having strategic long- term business as economic still not good in next time. On other hands, Trung Nguyen may be acquired by rival in near future. Critical Issues Inconsistent quality throughout the chain The consequence of a massively franchising campaign is that Trung Nguyen can not control the quality consistency of their store from quality of coffee cups through the customer services. In terms of shop decoration, most of franchisee in the chain do not see a clear impression of the appeal, on the special care little for details and professionalism of the employee's service style. On the odor, Trung Nguyen coffee should determine the correct identity of their coffee taste, at least to show the difference with other products about the smell. Trung Nguyen has lost customers loyalty is in recent years because of their inconsistency in quality control across franchising stores. This problem considerably impact

STRATEGIC MARKETING PROJECT FOR TRUNG NGUYEN CAF CHAIN

14

image of Trung Nguyen coffee houses in Vietnam, and it is hard to pull back the customers who have been unsatisfied. Market Facing A Fierce Competition The second issue comes from the strong competitors. As we are mentioned, Trung Nguyen has faced many direct and indirect competitors who are international famous brands all over the world. Currently, beside Highlands coffee, Gloria Jeans, Coffee Beans & Tea Leaf, Buds, Stabucks has just joined into Vietnam market. This is really a challenge for Trung Nguyen to become more adaptable in new environment, which other rivals will have more worldwide experience. Marketing Objectives Customer is the most important object of any business. Trung Nguyen coffee shop chain also should focus on customer to make their success. Satisfying Current Customers. With Trung Nguyen coffee tasty, it is not too hard to let customer think about it as a best coffee branch. If they love its kind of coffee shop, they will come back eventually. The think is what Trung Nguyen should do to attract customer come more frequently. It depends on how they satisfied with its services, coffee environment and the quality consolidation. Increasing Market Share. Trung Nguyen has planned to increase to 70% of market share in the next year 2013. At this time, Trung Nguyens coffee shop market share is slightly decreased, and there are many competitors always threaten their survival. They should focus on their service quality, not quantity, to attract more potential customers, then increasing market share.

STRATEGIC MARKETING PROJECT FOR TRUNG NGUYEN CAF CHAIN

15

Marketing Strategies Depending on Trung Nguyens SWOT analysis, key issues identified and objectives, the project propses a marketing strategy which focuses on 4Ps. Service (Product): Product strategy applied to the Trung Nguyen coffee chain is consolidating and improving the quality of whole of the chain. For coffee chains, there are many factors involved to create a service to meet the needs of customers, including product quality, service quality, and space of a coffee shop. Therefore Trung Nguyen needs: - To diversify the menu to meet customers' different tastes - To apply a quality standard management throughout the chain for staff training program, infrastructure and facilities. Price Price is not the leading factor in competitive but has always been considered an important factor in customers purchase decision. For the caf chain industry, the price will be considered in the interrelation with quality of received service, the comfort when they use the service. Trung Nguyen caf chain has applied the same price strategy as its competitors in the market segment. This is appropriate to its target customers (white collar). However, if we put the price in the interrelation with quality of received service, customer commended that the price is high (according to our mini interview). Furthermore, the inconsistent pricing policy among its stores has not satisfied its customers. Thus, to meet the expectations of its target customers, a united pricing strategy which is equal to main competitors will be applied for whole chain.

STRATEGIC MARKETING PROJECT FOR TRUNG NGUYEN CAF CHAIN

16

Channel Management Strategy Currently, Trung Nguyen coffee chain stores appeared whole Vietnam country, located from North to South of Vietnam. And following SWOT analysis, channel management based on franchise system has many critical issues and Trung Nguyen need to take action to improve continuously. Trung Nguyen still select franchise channel for expanding business as this business model has perform the successful business and profitable business in over the world like chain coffee shop: Starbucks or Gloria Jeans or Buds or NYDC However, Trung Nguyen should improve performance of franchise system, quality management and improving standard franchise system. Especially, building training programs of employee competencies, focus more on customer service and giving excellent customers satisfactions. In further details, auditing franchise system or all Trung Nguyen coffee stores chain frequently is very necessary. This process will help Trung Nguyen manage quality management well and keep commitment with existing customers or potential customers and also interact with customers comment or complaint or feedback effectively (Thomas, 2012). Communication Strategy In the present, Trung Nguyen operates business model based on direct sales at every coffee chain store. And Trung Nguyen should be active to build loyalty program to maintain existing customers and implement more promotion program to acquire new customers. Typically, social media selection is right decision. Trung Nguyen has showed very poor social media programs at Vietnam market now. While Vietnam has young population, it will benefit from the energy and entrepreneurial spirit of its youth as well as strong domestic demand (HSBC, 2011). Almost of them are very familiar with social media. Some popular social media

STRATEGIC MARKETING PROJECT FOR TRUNG NGUYEN CAF CHAIN

17

in Vietnam, for example: Facebook, Zing, LinkedIn, or You Tube may be considered for making decision. As customers participate social networking, they has general feeling 76% positive, 24% neutral, and 21% negative (Nielsen, 2012). These statistic numbers quite convince marketers. And above social media will help Trung Nguyen optimize operation cost and easy engage with potential customers. Beside, this communication strategy, Trung Nguyen should select more promotion program through some contest program or challenge program or innovation program that convince more customer segments such: white collar and students and mid-scale to up-scale and especially young people. These programs also matching with Trung Nguyens message to coffee drinking community is active and innovation. When Trung Nguyen implements this strategy well, Trung Nguyen can increase its image, also increasing revenue and can compete with strong rivals now in Vietnam. Conclusion and recommendations for change Trung Nguyen has strong competitive advantages based on supply chain, Trung Nguyen manufacture coffee bean; focus both exporting market of domestic and oversea. Beside, Trung Nguyen coffee chain operate for many years in Vietnam market. Most of Vietnamese people are familiar with Trung Nguyen brand name. Trung Nguyen needs to take time and invest more to build global brand name in order to compete with strong rival. Trung Nguyen should to improve franchise system, quality management. Focus on product quality, diversified menu to satisfy clients. Trung Nguyen should identify separate customer segments and keep reasonable price for customer willing purchase or increasing more repeat purchaser. Typically, it should build training program for employee competency and give improvement continuously for internal process. Trung Nguyen should focus on taking care

STRATEGIC MARKETING PROJECT FOR TRUNG NGUYEN CAF CHAIN

18

existing customers and acquire new customers. Building social networking, joining popular social media in Vietnam like: Facebook, Zing, LinkedIn, or Youtube, this strategy will help Trung Nguyen to engage with customers and meet customers expectation and increasing more revenue, profitability and Trung Nguyen image as well.

STRATEGIC MARKETING PROJECT FOR TRUNG NGUYEN CAF CHAIN

19

Bibliography Peter, J. P., Donnelly, J. H. Jr. (2010).Preface to Marketing Management (12th edition). New York: McGraw-Hill/Irwin

STRATEGIC MARKETING PROJECT FOR TRUNG NGUYEN CAF CHAIN

20

References Han Ni (2012, November 24). Trung Nguyens big rival reveal ways to convince Vietnamese customers. Vietnam Education Association. Retrieved from http://giaoduc.net.vn/NTD-thongthai/Thi-truong/Doi-thu-lon-cua-Trung-Nguyen-tiet-lo-cach-chinh-phuc-khach-hangViet/252956.gd Highlands Coffee (2012, December 20). Retrieved from: http://www.highlandscoffee.com.vn/vn/index.html HSBC, B. (2011, November 22). Vietnam growth rate remains impressive. Retrieved from http://www.hsbc.com/1/2/emerging-markets/gbm/stories/vietnam-growth-rate Minister of Agriculture and Agri-Food Canada (2012, July). Foodservice Profile Vietnam. International Markets Bureau. Retrieved from http://publications.gc.ca/collections/collection_2012/agr/A74-2-2012-10-eng.pdf Nielsen, A. (2012, December 02). Nielsen social media report 2012. Retrieved from http://www.nielsen.com/intl/vn/news-insights/reports/2012/nielsen-social-media-report2012.html Nguyen T.H, Tran Q.Q (2012, May 24). Vietnam Annual Coffee Report 2012. USDA Foreign Agriculture Service. Retrieved from http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Coffee%20Annual_Hanoi_Vietnam_ 5-24-2012.pdf Quang T., (2012, March 26). Fierce coffee market. Dak Lak Coffee Network. Retrieved from http://www.caphedaklak.com/khoc-liet-thi-truong-ca-phe/2922/ Shmavonian, K. (2012, July 25). Chairman vu, vietnam's coffee king. Retrieved from http://www.forbes.com/sites/forbesasia/2012/07/25/vietnams-coffee-king-dang-le-nguyen-vu/ Thomasson, E. (2012, November 08). Vietnam's coffee plan: the next prestige global brand. Retrieved from http://www.cnbc.com/id/100106306 Thuy D. (2012, October 04). Vietnams coffee export turnover sets new record. In Social Republic of Vietnam Government Web Portal. Retrieved from http://news.gov.vn/Home/VNscoffee-export-turnover-sets-new-record/201210/15861.vgp Trung Nguyen (2012, July 11). Trung Nguyen the most beloved coffee brand chosen by vietnamese consumers. Retrieved from http://www.trungnguyen.com.vn/en/2222/pressrelease.cafe Thomas, C. (2012, November 15). Starbucks in pr fail as angry customers take to its comments board . Retrieved from http://www.huffingtonpost.co.uk/2012/11/15/starbucks-in-pr-fail-ascustomers-angrily-take-to-its-comments-board_n_2135438.html

STRATEGIC MARKETING PROJECT FOR TRUNG NGUYEN CAF CHAIN

21

Appendix A: Vietnamese consumer characteristics

Source: Datamonitor, January 2012

Source: Coffee Annual Report, USDA Foreign Service, 2012

STRATEGIC MARKETING PROJECT FOR TRUNG NGUYEN CAF CHAIN

22

Appendix B: Vietnam Food and Drink market

Source: Datamonitor, January 2012

Source: Euromonitor, January 2012

Source: Euromonitor, January 2012