TABLE OF CONTENT

EXECUTIVE SUMMARY .......................................................................................................................... 3 INTRODUCTION ........................................................................................................................................ 4 CURRENT SITUATION.............................................................................................................................. 5 1. Access the current marketing strategy of Highlands Coffee ....................................................... 5 1.1. 1.2. 1.3. 1.4. 2. 3. 4. 5. 6. 7. Product ..................................................................................................................................... 5 Price.......................................................................................................................................... 5 Place ......................................................................................................................................... 6 Promotion ................................................................................................................................ 6

Value creation process .................................................................................................................... 7 Five Forces analysis ........................................................................................................................ 9 PESTEL analysis ........................................................................................................................... 12 SWOT analysis .............................................................................................................................. 14 Competitive overview ................................................................................................................... 15 Market trends ................................................................................................................................ 17

RECOMMENDATIONS ............................................................................................................................ 18 1. 2. 3. 4. Segmentation, Targeting and Positioning ................................................................................... 18 Growth strategy ............................................................................................................................ 18 Marketing objectives and strategies ............................................................................................ 19 Marketing mix and programmes (7Ps) ....................................................................................... 19 4.1. 4.2. 4.3. 4.4. 4.5. 4.6. 4.7. Product: ................................................................................................................................. 19 Price: ...................................................................................................................................... 20 Place: ...................................................................................................................................... 20 Promotion: ............................................................................................................................. 20 People: .................................................................................................................................... 20 Process: .................................................................................................................................. 21 Physical Evidence:................................................................................................................. 21

CONCLUSION ........................................................................................................................................... 22 APPENDIX ................................................................................................................................................. 23 1

REFERENCE.............................................................................................................................................. 28

EXECUTIVE SUMMARY

As a newly appointed marketing manager, this report provides for Highlands Coffee a full analysis about current situation of Highlands Coffee, coffee retail chain market as well as existing trends in order to develop its business and achieve the corporate strategic objectives. It also gives some important recommendations to obtain a detailed marketing strategies, programmes and marketing mix in developing a new market. With 10-year-experience and over 40 outlets, Highlands Coffee is now one of the most successful coffee retail chains in Vietnam. This brand is now operating under VTI. It is famous for the professional service and suitable coffee taste with Vietnamese. After Jollibee becomes a big shareholder of Highlands, it has a chance to expand its market through the fast food chain of this company. With a detailed marketing mix, Highlands can penetrate into this market successfully and strengthen its global image.

INTRODUCTION

Highlands Coffee is a brand of Viet Thai International Joint Stock Companies (VTI). It was established in 1998 in instant coffee field, then in 2002, the first store of the coffee retail chain was opened. Now, Highlands Coffee is the second largest coffee chain in Vietnam, below Trung Nguyen, with over 40 stores1 in prime locations.

The vision of this brand is to lead as the premier retail operator in Vietnam. Highlands Coffee provides not only Robusta coffee fit with Vietnam taste but Arabica coffee with international taste. Although there is not much promotion campaign, Highlands still attract many customers due to its professional service.

http://www.highlandscoffee.com.vn/vn/aboutus_whoweare.html

CURRENT SITUATION

1. Access the current marketing strategy of Highlands Coffee To define the current marketing strategy of Highlands, 4Ps analysis is used. 1.1. Product Vietnamese prefer coffee with strong taste and bitter. Therefore to match the taste of them, coffee of Highlands is pure coffee (which is not mixed with soy or other additives to reduce the strength of it). However, to serve foreign customers or who cannot drink espresso, Highlands also provides other kinds of coffee like steamed milk, cappuccino, latte, mocha, etc. Besides, they also have tea and juicy fruits on their menu to serve other kinds of customer. On the other hands, Highlands also provide cakes to eat with coffee or other beverage.

(Source: http://dantri.com.vn/thi-truong/banh-mi-va-ca-phe-lua-chon-moi-o-highlands-coffee646451.htm)

1.2. Price The segment customers of Highlands are middle-class customers like officers Hence, the average price of their products is about 40,000 VND, quite higher than sidewalk coffee or
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popular coffee stores. However, in compare with other coffee retail chain like Gloria Jeans Coffee or Coffee Bean, this price is similar. In addition, the cost to produce one cup of coffee and service is not cheap, so it is reasonable. On the other hand, their target customers are between 30-55 years old, and their income is enough to pay at that price. 1.3. Place Highlands has about 40 coffee stores in Vietnam (Appendix 1). All of them have nice position, mostly located in large buildings, shopping malls (Vincom, Hanoi Tower), Opera House, crowded streets, etc. It positions for a luxury brand. 1.4. Promotion Highlands Coffee seems not focus on advertising and promotion campaigns for its retail chain. In fact, most of their customers know about Highlands stores because they are in buildings where their offices located or in busy shopping malls. The others become its customers because of the reputation of Highlands. In addition, this company has an official website and a Facebook account but they promote ineffective, when the information of discount or new products does not spread widely. However, advertising of them in online news channel (VnExpress, Zingme, dantri...) and the coordination with websites that sale discount vouchers like www.nhommua.com also promote for this brand. On the other hand, Highlands Coffee has a lot of social activities, charities, sports (Appendix 2).

It can be seen that Highlands is using differentiation marketing strategy after analysing 4Ps.

(Source: http://www.mbaknol.com/strategic-management/business-level-or-generic-or-competitivestrategies/)

In fact, Highlands has made the differentiation in its products in Vietnam market to compare with its rivals products. While most of their competitors come from abroad, it means that their coffees taste is softer and do not fit with Vietnamese. They can attract the youth, who like to approach new Western culture. However, the middle-age has the habit to drink strong coffee with Vietnamese taste, so they will prefer Highlands to other coffee retail chain brands. 2. Value creation process According to the book Strategic Management: Concepts & Cases: Value chain analysis allows the firms to understand the parts of its operations that create value and those that do not. Understanding these issues is important because the firm earns above-average returns only when the value it creates is greater than the costs incurred to create the value (Hitt et al, 2009, p.84). Therefore, the value chain is used to analyze value creation progress of Highlands Coffee.

(Source: https://www.smartersolutions.com/blog/forrestbreyfogle/2010/07/31/enhancement-tomichael-porter%E2%80%99s-value-chain) Primary activities: In Vietnam coffee is grown a lot so supply of raw materials is abundance. However, due to farming practices and the selection, not all suppliers provide the high-quality coffee beans. Highlands Coffee only works with reputable suppliers for the best type A inputs. Material samples will be tested by laboratory to ensure the strict standards set by Highlands Coffee. This means that the cost will be higher. Operations This is the stage when Highlands makes coffee and cakes in their stores with quality control as well as testing and maintenance. Besides invest in machinery and control coffee-making quality, an equally important resource in the coffee retail chain is human. Highlands trained their staff to build trusted consumer relationships by the professional service. Outbound Logistics Highlands sells coffee and other drinks directly to customers through the stores open by themselves without going through intermediaries or franchise. This helps to control the process

Inbound Logistics

of the preparation and sales better. In addition, service processes are synchronized for all employees at all stores of Highlands: reception - send menu - record - serve drinks give bill when customer require clear the bill, give back spare cash see off customer (Tanbao, T, 2011). Besides, customers can call for reservation before going to outlets if they go in a group. Marketing and Sales Highlands does not use TV commercial, they use advertising on some popular online channel such as VnExpress, dantri, Zingme, nhommua, Facebook, etc and sponsoring activities to attract customers. Besides, a large amount of customers choose Highlands because of its good service, convenience place and famous brand.

Support activities: Different from popular coffee stores, Highlands Coffee uses machines to roast and make coffee to ensure hygiene and quality for each cup of coffee. Those machines and components come from world's leading brands, beside the support of a team of skilled technicians.

Technology

Human management

resource Highlands focus much on their quality services. This means that the attitude of staffs is very important. They are usually trained carefully about professional skills in serving and communicating.

3. Five Forces analysis

(Source: http://hbr.org/2008/01/the-five-competitive-forces-that-shape-strategy/ar/1) Threat of new entrants:

Starbucks is the largest brand in the coffee retail chain all over the world, with 17,800 shops in 49 countries, including 11,068 in the United States, nearly 1,000 in Canada and more than 800 in Japan (Dung, T., 2012). It is located in the top 100 world's most valuable brand according to the 2011 ranking of the two most prestigious institutions of global annual brand ranking is Interbrand and Millward Brown (Son, N.D., 2012). After gaining successful in three big ASEAN markets which are Thailand, Singapore and Malaysia (Huy, A., 2013), Starbuck is having some promotion campaigns for their entering Vietnam and preparation to open the first outlet in Ho Chi Minh City. With a major brand which has such a wide influence, Highlands needs to prepare strategies to cope with before Starbucks actually set foot in Vietnam market. Bargaining power of suppliers:

Vietnam is the second largest coffee export country in the world, so the price is not expensive, and Highlands also have many choices for the quality of the coffee beans. Arabica coffee bean is
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usually preferable to coffee connoisseurs for more flavor even it is more expensive. However in Vietnam, Robusta is grown more popular while Arabica is only grown in 32000-35000 ha, for the capacity of 48000-50000 tons per year, that is only 4% of the total Vietnam coffee production (Saigon Economic Times, 2012). The reason is the productivity of Arabica is lower. That makes the range selected Arabica of Highlands shrinking while Starbucks, Trung Nguyen and other brands also want to buy good Arabica in Vietnam (Cuong, K., 2013). Bargaining power of buyers:

Vietnam has a long coffee culture, however, the youth exposure to coffee through big foreign brands like Starbucks, Gloria's Jeans Coffee, etc and considered cappuccino as the standards of coffee instead of black coffee or steamed milk like the previous generations. Starbuck will enter Vietnam in early 2013, this receives the response of the young. Although the target customers of Highlands is the middle-class officers, they need to have new long-term strategies in order to compete with new entrants because only in the last 5-10 years, today's youth will become Highlands target audiences. On the other hand, the segment of foreign customers could be lost in other oversea coffee brands because they are more familiar with them. Threat of substitute products/service:

Beside coffee, tea is also an old culture of Vietnamese. According to the Vietnam Tea Association (Vitas), the demand for tea in Vietnam accounts for 30% of total tea production of the country, with an average increase of 3 to 5% (Vinanet, 2005). This means that tea is the biggest substitute with coffee and it could scramble customers with coffee. Highlands knows about that, so they add tea on the menu to expand their customer. Rivalry among existing competitors:
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There are many competitors of Highlands in Vietnam, most of them are foreign brands like Glorias Jeans Coffee, Coffee Bean, Twitter Coffee Bean They all have quite similar model as Highlands: nice decoration, good service and placed in crowd streets. However, their style fit with the youth more than the middle age, target customers of Highlands. However, Trung Nguyen has the same target customers, while they are very strong at marketing themselves with the reputation of their instant coffee. Although the retail chain of Trung Nguyen works less effective at that time, Highlands should wary this fellow competitor and consist some strategies. 4. PESTEL analysis
PESTEL analysis is very important techniques for assessing macro environment. It provides the information about the current situation of a market in a country, so the managers could utilize internal resources to match external conditions.

(Source: http://pmmagsmartech.blogspot.com/2011/10/pestel-analysis.html) Political & Legal:

Decree 41/2010/ND-CP of the Government on the credit policy for the development of agriculture and rural brings many advantages for coffee growers. One of the business response to
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this decree is Agribank, which is actively to solve the problem of capital for coffee by giving low-interest loan for famers. Besides, Decision 481/QD-TTg dated 13/04/2010 of the Prime Minister on buying support for temporary storage of coffee will also help to remove the difficulties in consumption of cultivators (Law Newspaper, 2012). In addition, according to the report of Vietnam Trade Office in Uk, Vietnam set high tariffs coffee import: 16-20% for fresh coffee, 35% for roasted coffee, 43% for soluble coffee and 10% VAT for unfiltered caffeine roasted coffee. This helps to protect domestic coffee production. Environment:

Vietnam is located in the tropical belt so it has favourable climate for growing coffee. In particular, agricultural land in Vietnam has highly porous structure due to high rainfall and humidity, which will cause specific coffee flavor. The central highlands are covered by fertile Bazan red soil, hot and humid tropical climate that suitable for Robusta. On the other hand, in northern, the winter cold and drizzle will facilitate with the cultivation of Arabica (National Economics University, 2011). Social:

As above, Vietnamese has a huge coffee-drinking nation among over 80 million people, so coffee retail chain model has many advantage to develop in Vietnam. A study showed that the consumers who drink most number and value of coffee fall into the middle-aged group (35-50) and elderly (over 50), but the young group (15-35) is the group tends to increase strongly the consumption of coffee. In addition, who are technicians, management leadership, professionals, officers, and service industry workers have the most coffee consumption (more than 0.5 kg/person/year). The study also showed that drinking coffee in the coffee shop is popular, in
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particular, the rate in Ho Chi Minh City is 96% of the respondents and 72.4% in Hanoi. In the main factors affecting the decision to drink coffee in the stores, 44.7% of people claimed taste (most consumers preferred the coffee has a bitter taste and smell), 39.9% of respondents choose style (the quiet, luxurious, stylish, easily gathered friends), while only 15.4% of the choice for brand (in which, Highlands Coffee is the most well known brand) (Songoku, P., 2011). Technology:

Technological advances help all fields and coffee is not an exception. They reduce the production costs and increase the quality of products. The roasting, grinding or processing are industrialization instead of manually as before. On the other hand, the development of information technology brings effective information channels and marketing channels with low price for coffee chains. Economic:

Vietnam average inflation rate in 2012 is 11.5% (Lan, T.T., 2012), decrease to compare with the previous year. In addition, the increase in average salary in Vietnam this year reaches 13.3% (Chi, L., 2012), higher than the inflation rate in 2012. This makes people's spending eased. Rather than focus only on essential items such as a few years ago, now Vietnamese can pay more for luxury items. This is a positive signal for Highlands as well as other coffee chains 5. SWOT analysis Strengths Famous for good service Stores located in convenient places Weaknesses Operates in nice places high cost The process of baking cake may be not

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Good brand recognition thanks to logo and style of store decoration

controlled tightly (scandal rat inside Highlands cake) Does not focus much on promotion campaigns Official website Facebook account work ineffective

Good reputation among their target customers

Strong finances capability Cooperate with some famous brand in Vietnam: Jolibee, Pho 24 chance to enter oversea markets with Jolibee Opportunities

Threats Many foreign rivals with same retail chain model have entered Vietnam market: Coffee Bean, Glorias Jeans Coffee, Twitter Bean Coffee Substitute products: milk tea (Feeling Tea) Increase exchange rate higher cost of imported machines and materials

Middle income people in Vietnam are increasing

Vietnamese prefer strong Vietnam coffee taste to other kinds of coffee like Cappucino, Mocha, Latte

Vietnameses habbit is drinking coffee each morning before go to work or in the evening when meeting friends

6. Competitive overview Market oriented view (MOV) Competitors: Coffee Bean, Trung Nguyen are major competitors of Highlands

Coffee. Besides, a lot of popular coffee stores or pavement coffee with low price also competes much with this brand.
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Customers: Although the youth and officers like beautiful coffee outlets like

Highlands, they still prefer oversea brands because of Vietnamese habit. If Highlands want to stimulate more customers, they could try to have more strategies such as discount, VIP card to attract them to use Highlands products. Resource based view (RBV)

According to Hollensen, S. (2003), long term competitiveness of a company depends on its resources that differentiate it from its competitors. Therefore, tangible resources and intangible resources of Highlands Coffee will be analysed. Tangible: Over 40 outlets in large cities in Vietnam Good service Impressive logo Specific style: red-black decoration, jazz music, wooden interior, white large umbrellas Intangible: Strong brand name in Vietnam Good skills and knowledge of staffs Long operation time Highlands is one of the most coffee retail chains in Vietnam till 2002, so they have time to gain their loyal customers and build awareness before other brands enter this market. This gives Highlands experience, solid customer base and reputation. The core competence of Highlands comes from the combination of all tangible and intangible resources above, so they could have a big competitive advantage in Vietnam market.

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7. Market trends The success of Starbuck all over the world is one reason for the increase of the coffee retail chain model. Vietnam is not an exception when Trung Nguyen and Highlands Coffee have opened their own outlets. Besides, the landing of foreign coffee retail chain such as Glorias Jeans Coffee, Coffee Bean, Twitter Coffee Bean, etc also makes coffee retail market more vibrant.

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RECOMMENDATIONS

1. Segmentation, Targeting and Positioning Based on the analysis above, STP model are summarized for helping Highlands easier to imagine their potential market, thereby shaping an appropriate marketing mix. Segmentation:

Highlands serve all male and female customers had middle income, even the youth or the elderly, who want to drink coffee in a formal and professional coffee shop. Their customers mostly comes from big cities like Hanoi, Ho Chi Minh City, Da Nang, etc. Nowadays, the living standard is increased, so the demand for coffee is enhanced when people do not have to tighten spending. Therefore segmentation of Highlands will be extended. Targeting:

As concerned above, the targeting of Highlands is the middle age with middle income, such as office employees or business men/women. The youth seems not the potential audiences because of the unsuitable style of outlets. However, in 3-5 years later, they will become the target customers of Highlands when this formal style more suitable with their age. Positioning:

Highlands now is known as one of the most famous and success coffee retail chains in Vietnam. They have current perceived products: luxury, affordable price, contemporary lifestyles and authorized high quality product with professional service. 2. Growth strategy
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Ansoffs matrix (Source: http://taydeaburto.com/ansoff-matrix-for-marketing-objective/) Highlands still has a lot of outlets in large cities in Vietnam and gain successful. When Jollibee become a large shareholder of Highlands (see Appendix 3), it provides a chance to penetrate new market in Philippines through the net of retail of Jollibee. This will help Highlands build awareness, expand reputation and gain more customers in abroad. 3. Marketing objectives and strategies Objective: Become one of the best coffee retail chains in Philippines in 2018. Goals: Open new retail chain in Manila, Philippines in 2013 Gain 15% market share at the end of 2016

The detail plan would be present at Appendix 4. 4. Marketing mix and programmes (7Ps) 4.1. Product:

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Highlands has added other beverage like tea, cream or juicy fruits in their menu, and there is a fact that more and more people go to Highlands and order a not-coffee-beverage. This could make this brand become a famous integrated beverage brand, not famous coffee brand. Highlands should have tactics to solve this problem, for example invest new flavour coffee. 4.2. Price: Price is not a problem with Highlands targeting. The same price in all outlets helps to manage and develop integrated system. However, if this brand wants to expand its segmentation, price needs to be adjusted to be fit with condition of each are. Unfortunately, this could break the synchronization of retail chain. 4.3. Place: With the agility, Highlands acquired almost all of good location to open its outlets. This not only shows the level of a luxury brand, but gives a declaration of war with rivals. Keep maintaining this advantage is what Highlands should do. 4.4. Promotion: It is a weak point of Highlands. Their website is miserable and lack of official information. Highlands needs to focus more on multi marketing channel like advertisement on TV, magazines, promotion campaign in shopping malls or big supermarket like sample for new product, discount or games They also have to reform their Facebook for more logical and amount of information to promote more effective. 4.5. People:

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Highlands provide not only coffee but service. Therefore people are one of the most important elements to the success of this brand. Their direct connection with customer will build image of Highlands in customers mind. Therefore, training staffs every month is important mission with Highlands to ensure their skill, knowledge and communicate. A clearly reward-punishment policy also helps to encourage employees morale. 4.6. Process: To make sure about the needs and feedbacks of customer, R&D needs to be worked. Hence, Highlands can fix problem immediately and satisfy customers. Customers can call for book before go to Highlands outlets. They can pay the bill by cash or by ATM. All of those make convenience for customers. 4.7. Physical Evidence: All stores are always clean, luxury and comfortable with customers. The wooden furniture and Jazz music make warm and bookplate feeling. In addition, staffs wear uniform which create professional and trustful image of Highlands.

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CONCLUSION

After analyzing currently situation and recommended marketing strategies for Highlands Coffee, this brand now has strong foothold in the retail coffee market Vietnam and keeps growing sustainably. In addition, Highlands has a high opportunity to launch its coffee retail chain into Philippines market to expand the customers through the fast-food chain of Jollibee. By employing its internal resource-based values, Highlands could alter marketing mix, appropriate with potential customers and minimize weaknesses as well as avoid threats (Word count: 3445 words)

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APPENDIX

Appendix 1: List of store location off Highlands Coffee2 Ho Chi Minh City - General Library. Add: 96B Le Thanh Ton street, Distrisct 1 - Parkson, 3rd Floor. Add: 35 Bis - 45 Le Thanh Ton street, Distrisct 1 - Opera. Add: 7 Lam Son Square, Distrisct 1 - Saigon Center. Add: 65 Le Loi street, Ben Distrisct 1 - Vincom, Basement 3. Add: 70 - 72 Le Thanh Ton street, Distrisct 1 - Nguyen Du. Add: 75 Nguyen Du street, Distrisct 1 - Saigon Trade Centre. Add: 37 Ton Duc Thang street, Distrisct 1 - Saigon Tower. Add: 29 Le Duan street, Distrisct 1 - Ham Nghi. Add: 181 Ham Nghi, Distrisct 1 - Mac Dinh Chi. Add: 39 Mac Dinh Chi street, Distrisct 1 - Somerset. Add: 21-23 Nguyen Thi Minh Khai street, Distrisct 1 - Diamond Plaza, Ground Floor. Add: 34 Le Duan street, Distrisct 1 - Tax Centre, Ground Floor. Add: 135 Nguyen Hue street, Distrisct 1 - Tax Centre, Level 2. Add: 135 Nguyen Hue street, Distrisct 1 - Tax Centre, Level 3. Add: 135 Nguyen Hue street, Distrisct 1 - Tax Centre, Level 4. Add: 135 Nguyen Hue street, Distrisct 1 - Liberty. Add: 187 Pham Ngu Lao street, Distrisct 1

http://www.highlandscoffee.com.vn/aboutus_shoplocations.html
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- Vincom Eden. Add: B3 Floor. 171 ong Khoi street, Distrisct 1 - Parkson Hung Vuong Megastar. Add: 126 Hung Vuong, District 5 - Parkson Hung Vuong Ground Floor. Add: 126 Hung Vuong, District 5 - Parkson Hung Vuong 4th Floor. Add: 126 Hung Vuong, District 5 - An Dong Plaza. Add: 18 An Duong Vuong street, District 5 - Lottemart, 3rd Floor. Add: 469 Nguyen Huu Tho street, District 7 - Saigon South. Add: 152 Nguyen Luong Bang street, District 7 - Garden Plaza. Add: SB-01, Garden Plaza 1, 22 Ton Dat Tien street, District 7 - Parkson Paragon, Megastar. Add: 3 Nguyen Luong Bang street, District 7 - RMIT. Add: 702 Nguyen Van Linh street, District 7 - Intel. Add: Lot I1 - I2a - I2b D1 street, Saigon Hi - Tech Park, District 9 - Maximark. Add: 3C 3 Thang 2 street, District 10 - Etown 2. Add: 364 Cong Hoa street, Tan Binh District - CT Plaza 4th Floor. Add: 60A Truong Son street, Tan Binh District - CT Plaza, Ground Floor. Add: 60A Truong Son street, Tan Binh District - CT Plaza, Megastar. Add: 60A Truong Son street, Tan Binh District - Big C Hoang Van Thu. Add: 202B Hoang Van Thu street, Phu Nhuan District - Manor. Add: 91 Nguyen Huu Canh street, Binh Thanh District Hanoi - Opera. Add: 1A Trang Tien street, Hoan Kiem District - Hanoi Tower. Add: 49 Hai Ba Trung street, Hoan Kiem District - Pacific Place. Add: 83B Ly Thuong Kiet street, Hoan Kiem District - Asia Tower. Add: 6 Nha Tho street, Hoan Kiem District - Ho Guom. Add: 1- 3 - 5 Dinh Tien Hoang street, Hoan Kiem District
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- Hng Da Gallery. Add: Hang Da Galleria Center, Hoan Kiem District - Flag Tower. Add: 28A Dien Bien Phu street, Da Dinh District - Big C Hanoi. Add: 222 Tran Duy Hung street, Cau Giay District - Somerset. Add: 106 Hoang Quoc Viet street, Cau Giay District - Indochina Hanoi. Add: 241 Xuan Thuy street, Cau Giay District - Vincom, Ground Floor. Add: 191 Ba Trieu street, Hai Ba Trung District - Vincom, Megastar. Add: 191 Ba Trieu street, Hai Ba Trung District - VTV. Add: 43 Nguyen Chi Thanh, Dong Da District - Syrena. Add: 51B Xuan Dieu street, Tay Ho District - Manor. Add: My Dinh Tenement, Tu Liem District Da Nang - Big C Danang. Add: 255 - 257 Hung Vuong street, Thanh Khe District. - Indochina Danang. Add: 74 Bach Dang street, Hai Chau District. - Megastar Danang. Add: 255 - 257 Hung Vuong street, Thanh Khe District. Hai Phong - Big C Hai Phong. Add: 1/20A Le Hong Phong street, New Area, Cat Bi airport Intersection, Dang Giang Ward, Ngo Quyen District. - Parkson TD Plaza, Ground Floor. Add: New Area, Cat Bi airport Intersection, Dong Khe Ward, Ngo Quyen District. - Parkson TD Plaza, Megastar. Add: New Area, Cat Bi airport Intersection, Dong Khe Ward, Ngo Quyen District. Bien Hoa - Megastar Bien Hoa. Add: 121 Highway 15, Bien Hoa City.

Appendix 2:

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The list of activities that Highlands Coffee sponsors (Songoku, P, 2011): American Independence Day Australia Day Canada Day Terry Fox Run Fun Run for Charity International School Charity French Dinner Charity Soccer for the Streets Saigon Cyclo Challenge Saigon Ultimate Frisbee Tournament

Appendix 3: Highlands and Jollibee Jollibee is a group from Philippines. According to Bridge Investment (2012), In September 2012, it spent $25 million to buy back 49% of the business unit in Vietnam and 60% of Hong Kong's business department of VTI Corporation. This is a deal is Jollibee appreciated, because right before signing with VTI, they decided to sell the Korea coffee chain Ti-Amo, which only owns more than a year. In the acquisition of shares of VTI, next to Highlands Coffee, Jollibee also grasp the franchise of Hard Rock Caf chain in Vietnam, Macau and Hong Kong (a brand under VTI). In return for becoming a major shareholder of VTI, Jollibee has agreed to lend to this group an additional $35 million at an interest rate of only 5%. According to representatives of Jollibee, this money will be used for VTI to invest in the future.
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However, in fact, Starbuck will enter Vietnam market in the future, which is indeed a major obstacle to Highlands. It will be a real competitor in the business segment that Highlands Coffee is dominant. In this context, Jollibee approach and ask to participate in VTI seems quite timely. This is because, in addition to continuing to develop this coffee chain in Vietnam, they will take the product of Highlands Coffee in other system's restaurant of Jollibee all over Asia. This will be a significant added value for Highlands Coffee, because Jollibee now has presence in 12 major Asian markets and the United States. Thus Highlands will have the opportunity to expand their market abroad without costly. Appendix 4: Marketing plan for Highlands Goals Strategy Open new retail Set operation chain in Manila Philippines in Set operation 2013 Quezon Tactic Time Measurement in Set operation in By August Number of operation Manila 2013 in Philippines market in Set operation in By Quezon December 2013 Gain 15% Create competitive Add some coffee By with Philippines January Customer feedback market share at advantage taste 2014 the end of 2016 Add traditional fast food of Philippines By May 2014

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REFERENCE

Books and Articles Hitt, MA, Ireland, RD & Hoskisson, RE, 2009, Strategic Management: Concepts & Cases, Cengage Learning Hollensen, S., 2003, Marketing strategy, London: Prentice Hall Vietnam Trade Office in Uk, 2011, The impact of the tax on coffee business Internet Bridge Investment, 2012, Reason for Highlands Coffee on hand of Jollibee, [online] (cited 31 December 2012) <http://taichinh.vnexpress.net/tin-tuc/the-gioi/2012/09/ly-do-highlands-coffee-ve-tay-jollibee20931/> Chi, L., 2012, Wages rising faster than inflation, [online] (cited 31 December 2012) < http://vnexpress.net/gl/kinh-doanh/2012/10/luong-tang-nhanh-hon-lam-phat/> Cuong, K., 2013, Starbucks coming in Vietnam, [online] (cited 31 December 2012) <http://vnexpress.net/gl/kinh-doanh/2013/01/starbucks-sap-co-mat-o-viet-nam/> Dantri, 2012, Bread and Coffee, new options in Highlands Coffee, [online] (cited 31 December 2012) <http://dantri.com.vn/thi-truong/banh-mi-va-ca-phe-lua-chon-moi-o-highlands-coffee646451.htm> Dung, T.,2012, The Future of Starbucks in Vietnam?, [online] (cited 31 December 2012) <http://sinhvienngoaithuong.com/news/Kinh-te/Tuong-lai-cua-Starbucks-tai-Viet-Nam-1/> Forrest, B, 2010, Enhancement to Michael Porters value chain, [online] (cited 31 December 2012) <https://www.smartersolutions.com/blog/forrestbreyfogle/2010/07/31/enhancement-to-michaelporter%E2%80%99s-value-chain> Highlands Coffee, Who we are, [online] (cited 31 December 2012) <http://www.highlandscoffee.com.vn/vn/aboutus_whoweare.html>
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Highlands Coffee, Store Location, [online] (cited 31 December 2012) <http://www.highlandscoffee.com.vn/aboutus_shoplocations.html> Huy, A., 2013, First Starbucks outlet will open next month in Vietnam, [online] (cited 31 December 2012) <http://vneconomy.vn/2013010310551580P0C19/cua-hieu-starbucks-dau-tien-tai-viet-nam-mocua-thang-toi.htm> Lan, T.T., 2012, Ernst & Young: Inflation in 2012 is about 11.5%, [online] (cited 31 December 2012) < http://taichinh.vnexpress.net/tin-tuc/song-tai-chinh/chi-so-vi-mo/2012/02/ernst-young-lamphat-nam-2012-khoang-11-5-5853/> Law Newspaper, 2012, Support for coffee growers over 11,000 billion VND, [online] (cited 31 December 2012) <http://www.y5cafe.vn/29/ho-tro-nguo-i-tro-ng-ca-phe-hon-11-000-ty-dong/> MBA Knowledge Base, Business level or generic or competitive strategies, [online] (cited 31 December 2012) <http://www.mbaknol.com/strategic-management/business-level-or-generic-or-competitivestrategies/> Michael, E.P., 2008, The Five Competitive Forces That Shape Strategy, [online] (cited 31 December 2012) <http://hbr.org/2008/01/the-five-competitive-forces-that-shape-strategy/ar/1> National Economics University, 2011, Analysis of the business environment of the Vietnamese coffee industry, [online] (cited 31 December 2012) <http://www.doko.vn/luan-van/Phan-tich-moi-truong-kinh-doanh-cua-nganh-ca-phe-Viet-nam20089> Ricardo, O, 2011, PESTEL Analysis, [online] (cited 31 December 2012) <http://pmmagsmartech.blogspot.com/2011/10/pestel-analysis.html> Saigon Economic Times, 2012, Arabica coffee: prices higher but difficult plant, [online] (cited 31 December 2012) <http://taichinh.vnexpress.net/tin-tuc/hang-hoa/2012/08/ca-phe-arabica-gia-cao-nhung-khotrong-19479/>
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Son, N.D., 2012, Starbucks: Songs not only notes, [online] (cited 31 December 2012) <http://branddance.vn/2012/07/26/thuong-hieu-starbucks-bai-hat-khong-chi-la-not-nhac.html> Songoku, P, 2011, Highlands Coffee - Marketing service, [online] (cited 31 December 2012) <http://vi.scribd.com/doc/80890990/Highlands-Coffee-hoan-ch%E1%BB%89nh-Mard%E1%BB%8Bch-v%E1%BB%A5> Tanbao, T., 2011, Highlands Coffee, [online] (cited 31 December 2012) <http://vi.scribd.com/doc/75872466/Highland-Coffee> Tayde, A, 2010, Ansoffs Matrix For Marketing Objectives, [online] (cited 31 December 2012) <http://taydeaburto.com/ansoff-matrix-for-marketing-objective> Vinanet, 2005, Domestic tea consumption tends to increase, [online] (cited 31 December 2012) <http://bannhanong.vietnetnam.net/home.php?cat_id=14&id=622&kh=>

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