Trung Nguyen's Marketing Plan for Singapore Cafe

MARKETING PLAN: TRUNG NGUYEN CAFÉ IN SINGAPORE
Student name:
Student ID:
Date: Nov 24th
, 2013

TABLE OF CONTENTS
A. EXECUTIVE SUMMARY................................................................................................... 1
B. PLAN DESCRIPTION.......................................................................................................... 1
1. Objectives ............................................................................................................................ 1
2. Mission................................................................................................................................. 1
3. Uniqueness........................................................................................................................... 1
C. COMPANY OVERVIEW..................................................................................................... 2
D. MARKET OVERVIEW........................................................................................................ 3
1. Overview of Singapore ........................................................................................................ 3
1.1 Population .................................................................................................................... 3
1.2 Language and Religion................................................................................................. 3
2. Beverage industry in Singapore........................................................................................... 4
3. Market analysis .................................................................................................................... 5
E. MARKETING STRATEGY................................................................................................. 7
1. Product................................................................................................................................ 7
1.1 Kind of G7 instant coffee.............................................................................................. 7
1.2 Packaging ..................................................................................................................... 7
2. Price ..................................................................................................................................... 8
3. Place..................................................................................................................................... 9
4. Promotion........................................................................................................................... 10

4.1 Promotion................................................................................................................... 10
4.2 Advertising.................................................................................................................. 10
4.3 Public relation (PR).................................................................................................... 10
F. FIVE FORCE ANALYSIS ................................................................................................. 11
G. SWOT ANALYSIS.............................................................................................................. 12
H. BUDGET AND PROFITABILITY ANALYSIS .............................................................. 13
1. Sale forecast....................................................................................................................... 13
2. Budgets .............................................................................................................................. 14
2.1 Funding....................................................................................................................... 14
2.2 Estimation in the first year ......................................................................................... 14
2.3 Estimation of marketing expense and expense allocation in the three years ............. 16
2.4 Break Even Anlysis ..................................................................................................... 16
2.5 Payback Period........................................................................................................... 17
I. CONCLUSION.................................................................................................................... 18
J. REFERENCES .................................................................................................................... 19
APPENDIX 1: TRUNG NGUYEN’S COMPETITORS ......................................................... 21
APPENDIX 2: PRICE QUOTATION OF NESTCAFE AND SUPER GROUP.................. 23

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A. EXECUTIVE SUMMARY
Singapore is one of the countries consuming the largest amount of coffee in Southeast Asia.
However, the modern lifestyle in general and Singapore lifestyle in particular is moving at very
fast pace. Therefore, rarely can people have time to make a coffee in traditional way. Hence,
instant coffee becomes the ideal choice of many people. According to research in 2012, the
instant coffee segment led the coffee market in Singapore in 2012, with a share of 72.6%. Yet,
most of consumers do not satisfy with the quality of instant coffee due to its bad flavor.
Being aware of this fact, our company – Trung Nguyen decided to launch our new instant coffee
product in this market. Being the most popular coffee brand name in Vietnam, Trung Nguyen is
well known for our outstanding coffee quality. With the passion to serve all coffee lovers with
the best coffee, we always try to distribute our products to all over the world. In Vietnam, we
have succeeded with G7 instant coffee product line. This is the reason why we are sure our plan
to promote our new instant coffee product will achieve success in Singapore.
B. PLAN DESCRIPTION
1. Objectives
Our aims to take part in coffee market in Singapore, instant coffee market segment in detail are:
Trung Nguyen will take 10% of Singapore instant coffee market share up to 2018
By 2010, the company wants to become the one of the largest manufacturers and exporters
in coffee area.
2. Mission
With the purpose to reach Singapore coffee market, we hope to provide the highest coffee quality
to all coffee lovers. In addition, Trung Nguyen have a clear mission that reaches beyond coffee
“to connect and develop coffee lovers of the world”. We believe that coffee can make the world
more prosperous as well as is the fuel to the knowledge economy.
3. Uniqueness
The very first keys contributing to Trung Nguyen’s huge success as now is the perfect quality of
coffee products the company provides. We apply the most modern technology throughout our
manufacturing process. This key plays a vital role in attracting and maintaining our customers.

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Furthermore, we have a team of experts and experienced staffs in coffee area. This is our core
value to ensure the company’s creativity and development.
Trung Nguyen is the first company in Vietnam choosing franchise to expand to the world.
However, our process to choose franchisee is very strictly and carefully. Only those who meet all
of our principles of quality of products will be selected.
C. COMPANY OVERVIEW
Trung Nguyen is a famous instant coffee brand not only in Vietnam but also in all over the
world. Starting with a small café in Buon Me Thuot town in 1996, the company has rapidly
created their reputation and their brand due to its high coffee quality. The company specializes
in producing and trading products from coffee beans.
Trung Nguyen is a leading company in Vietnam employing the model of franchise to penetrate
in global market. Until now, Trung Nguyen has succeeded in building a network of nearly 1000
franchising café in Vietnam as well as in a number of other countries, including: the United
States, Japan, Thailand, China, Cambodia, Poland, and Ukraine. In the next years, the company
plans to expand their activity in some other main cities in Vietnam and in the world, including
Singapore.

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D. MARKET OVERVIEW
1. Overview of Singapore
1.1 Population
Total population in Singapore up to 2013 is expected to be 5.4 million people, growing by 1.6%
(Singapore Department of Statistics, 2013). Population in Singapore is aging as median age has
reached 38.9 years old in 2013 while it was 38.4 and 37.4 in 2012 and 2011 respectively.
Regarding literacy levels, majority of adults (47.8%), who are more than 25 years old, have
university qualifications, this number has increased by 21% compared to 2002 (Singapore
Department of Statistics, 2013).
In 2012, there were 13.4 – 14.5 million international visitors to Singapore, increased by 1,2
million compared to 2011 and Singapore gained 23 billion Singapore dollars from tourists,
increased by 3% vs.2011. Among receipts from tourism, food and beverage accounted for 2.3%,
turning out to 529 million Singapore dollars (Singapore Tourism Board, 2012).
As the result, it has implied potential of Singapore instant coffee market as:
- Adults consume more coffee than children and Singapore has population median age of 28.9
- Majority of the population have high literacy level and turn out to be white collar employees
who consume coffee pretty much.
Singapore is attractive destination for tourists who prefer to use instant coffee.
1.2 Language and Religion
In Singapore, English, Malay, Mandarin and Tamil are the official language. Among them,
English is the most common language of the nation and is the language of the business
(Singapore Department of Statistics, 2013). This is an advantage for foreign business like Trung
Nguyen to participate in this market.
Like Vietnam, Buddhism is the most widely practiced religion in Singapore, accounting for 33%
of the resident population, following by Christianity, Islam, Taoism and Hinduism (Singapore
Department of Statistics, 2013). In general, the demographics of Singapore is pretty similar to
Vietnam. It is a huge advantage for our company.

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2. Beverage industry in Singapore
Singapore market is among top food and beverage consumption in South East Asia with total
food consumption in 2011 reached USD 7.4 billion, accounted for 3% of national GDP
(Singapore Food and Beverage 2H11). The coffee market in Singapore has also experienced
compound annual growth rate of 4.4% during 2004 – 2009 period, in which instant coffee market
has played dominant position in driving growth as 72.6% of total sales has been from instant
coffee market.
Figure 1: Food & Beverage Industry Contribution to the National GDP in Singapore
(2008-2012)
Source: Euromonitor International
Nevertheless, in recent years, Singapore economy has experienced an uncertain development.
The uncertain global economic conditions have negative effect on the nation’s economy. The
decrease in GDP growth rate in Singapore are threat to consumer goods in general and food &
beverage in specific. The Monetary Authority of Singapore also alerts high inflation in 2014 due
to accumulated costs in enterprises, real estate bubbles (ChannelsNewAsia, 2013). These may
hinder consumer demands in next few years.

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3. Market analysis
Like other products, coffee products also have to experience four-phase life cycle, including:
introduction, growth, maturity and decline. After nearly twenty-year development in coffee
industry, Trung Nguyen is the biggest the coffee in Vietnam. In other words, Trung Nguyen’s
products is in now in the maturity phase. On the contrary, Trung Nguyen is totally a newcomer
in Singapore. Thus, the company has to pour its money as well as develop suitable strategic plan
in order to attract public awareness, which is the factors deciding the success of the products. In
short words, in Singapore, the company’s product is in the first phase – introduction. In this
phase, Trung Nguyen will have not to focus on profit, but raise the image as well as brand in the
market.
Figure 2: Life Cycle of Trung Nguyen Products
VIETNAM
SINGAPORE
Introduction Growth Maturity Decline
Source: Veron, R. (1966)
Another tool helping to analyze the market is the Boston Consulting Group matrix (BCG model)
which is developed by Bruce Henderson (1960). According to Henderson, a company can be
positioned in four celled matrix based on its market share and market growth. For Trung Nguyen
in Singapore, clearly coffee market in this nation is very developed. But the company is a newer,
hence, the market share of the company in Singapore is very low. As a result, in Singapore,
Trung Nguyen will be positioned in “Question Mark” cell where is the starting point for most
businesses.

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BusinessGrowthRate
Invest
Figure 3: The business portfolio or growth rate matrix
High STAR QUESTION MARK
Select a Singapore Remainder
CASH COW
Vietnam
DOG
Liquidated
Low High Low
Market Share
Source: Hedley, B. (1977, p12)

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E. MARKETING STRATEGY
1. Product
1.1 Kind of G7 instant coffee
As we have mentioned at the beginning, Singaporean demand for instant coffee is very large.
Despite of the diversity of kind of instant coffee, instant coffee in Singapore is not highly
assessed due to either its light taste or unsuitability for women. Based on this fact we are pleased
to introduce four new kinds of instant coffee products.
(1) G7 Instant 3 in 1: This product is made mainly from sugar, non-diary creamer and it is
13% of instant coffee. Therefore, it is easy to enjoy.
(2) G7 Black Instant: This is an ideal product for those who loves black coffee. This
product is also made from sugar, but the instant coffee increases into 15%. Especially,
this product does not contain any calories and it can be mixed directly into cold water for
iced coffee.
(3) G7 Instant Cappuccino: Now coffee lovers can enjoy a cup of cappuccino directly at
home with outstanding flavor which is not lower than any other coffee stores. The
product contains 30% less fat, 50% less sodium, 50% less sugar and 60% fewer calories.
Especially, it has more creamer.
(4) G7 Passiona Instant: This is our great product. In advance, in spite of their passion for
coffee, not few women were reluctant to drink a cup of coffee since they were afraid of
its adverse effect on their skin. However, this worry can be erased by our “G7 Passiona
Instant”. This product contains Collagen, Vitamin, B3 and rare oriental herbs. Therefore,
it can help the skin become more beautiful and it is good for people’s health.
It can be seen that products we plan to launch in Singapore are named after coincidentally to our
product we provide in Vietnam. The reason for it is that we want to have the consistency among
our product line. Nevertheless, it does not mean our products in Singapore is totally similar with
these in Vietnam. The four new products will be adjusted to be suited to Singaporean taste.
1.2 Packaging
For products, packaging plays a significant role. It not only protects products from damaging
during delivery but also attracts customers’ attention. When launching our product in Singapore,

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we will keep our modern and luxurious style in packaging. In detail, the packaging will be
printed in the black logo strikingly and stylized white cup of coffee. All of them is standing out
of the red, black or brown background catching the customer attention. Initially, we will provide
two kinds of packaging:
The square box of 15 sticks or sachets
The bag of 50 sachets
Since our products is totally new in Singapore market, customer will reach us only to try. Thus,
we predict the 15-sachets square box will be consumed more than the bag. Because of this
reason, in this report, we will use this kind of packaging is the unite to calculate.
2. Price
In Vietnam, Trung Nguyen is famous for its reasonable price. Due to its price, the instant coffee
products are suitable for many different customer profiles. Therefore, in Singapore, the company
will continue its current price strategy. The pricing approaches are pricing target profit pricing
and standard markup pricing. It focuses on reducing price by reducing costs and setting priority
to quality.
After calculating all related factors such as price of input material, manpower, depreciation of
equipment, we estimated the based value of each G7 product as follows:
Table 1: Based Value of Instant Coffee Product
Product (15 sachets/package) Based Value (SGD)
G7 Instant 3 in 1 Coffee 5.64
G7 Instants 2 in 1 coffee 5.38
G7 Instant Cappuccino Coffee 5.9
G7 Passiona Instant Coffee 5.12

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Assumed that:
Shipping cost: 5%value based
Transportation cost: 10% value based
Distribution cost: 10% value based
SG&A: 15% value based
Markup cost: 25%. It is quite small figure as we adapt penetration pricing strategy in this
period.
So we have the cost of good sale as well as the price of products as follows:
Table 2: COGS and Prices of G7 Products
Product (15 sachets/package) COGS Price (SGD)
G7 Instant 3 in 1 Coffee 2.256 2.82
G7 Instants 2 in 1 coffee 2.152 2.69
G7 Instant Cappuccino Coffee 2.36 2.95
G7 Passiona Instant Coffee 2.048 2.56
In general, this price is quite reasonable compared to Trung Nguyen competitors such as Nestlé
Singapore Pte Ltd and Super Group1
3. Place
Trung Nguyen has one of the largest coffee shops chain in many countries. In order to penetrate
foreign market, we usually follow the franchise methods. This methods has brought us our
success. Therefore, in Singapore we will continue to apply this methods. Our Trung Nguyen’s
franchise shop will not only make G7 coffee but also sell it directly to customers. The logo and
appearance style of G7 will be the main theme of all franchise coffee shop.
1
Please see Appendix 2

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We intend to open these franchise shop, firstly, in large cities such as Singapore, Alexandra, Ah
Soo Graden. Besides, through local retailers, including supermarkets, convenience stores and
outlets, our products will also be distributed.
4. Promotion
4.1 Promotion
We will provide sample for our potential in order to encourage them to try out G7 new products
and discover the unique qualities. These sample will be used in public place such as offices,
university, supermarkets and department stores.
Trung Nguyen will also cooperate with other franchised stores so as to offer coupons and
discounts in holidays or special events, especially related to specific stores. Customers will
receive coupons for any bills that are over 6 SGD at any Trung Nguyen franchised coffee stores.
For special events or Singapore holidays, Trung Nguyen will offer chances to get surprising
prize when consumers buy G7 at any retailers’ stores.
4.2 Advertising
We will take advantage of social network such as Facebook, Twitter, LinkedIn to raise
customers’ awareness about our plan. Besides, we will also build a website that providing online-
order service in order to assure the convenience for our customers. In addition, advertisement on
television cannot be shortage. These advertisement will be made by experienced marketers in
this field.
4.3 Public relation (PR)
Like in Vietnam, Trung Nguyen will continue to response or sponsor some social and political
national or international events such as: Earth Hour, Asia Green Expo, Food and Drink Expo,
and Argo Trade Expo in Singapore.
Besides, Trung Nguyen will develop “Coffee Talk” – an activity that is held regularly to gather
Trung Nguyen coffee lovers. This events will be held at all franchised coffee shops. Topics of
these talks range from business and political issue to social and culture issues.

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F. FIVE FORCE ANALYSIS
Threat of New Entrants
Since coffee industry is not a new one. Not
mention that the entrance fee to enter the
industry is not extremely high. In addition,
the new entrants can take advantage of the
followers. Therefore, the threat of new
entrants is very high.
Determinants of Supplier
Power
Coffee industry depends
much on suppliers. If the
weather is not good, then
the supplier can increase
the price of raw material
extremely high. Thus, the
pressure form supplier is
very high
Rivalry Among Existing
Firms
As said, our products are
new. Therefore, the rivalry
among existing firms is
quite low. However, the
company should still pay
attention to large
competitors such as Super
Gorup or Nestle (Appendix
1)
Determinants of Buyer
Power
The target market of the
products is the large
cities and town in
Singapore where coffee
are consumed most.
There people have many
choice among suppliers.
Hence, the determinants
of buyer power is high
Threat of Substitute Products
Since our instant coffee products is
totally new. Therefore, we believe
no product can substitute them.

G. SWOT ANALYSIS
Strengths:
Company’s Products has unique flaver
Company has a lot of experience in not
only coffee industry but also marketing
Company has a large franchise coffee
shops
Opportunities:
Singapore is a huge coffee market,
especially in instant coffee segment
People are willing to try new products
Weakness:
Newcomer in Singapore
In Singapore, brand is still weak
Product is easily copycat
Threats:
Threats derive from new entrants,
current competitors.
Global crisis can affect the company’s
performance
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H. BUDGET AND PROFITABILITY ANALYSIS
Marketing Budget will be calculated based on these key assumption:
Sales and net profit after tax are expected to go up by 1.5% per year
Fee for building Trung Nguyen coffee will be reduced in the next two years since in these
years, we have to bear only fee to maintain and SEO
Fee for advertisement will account for 5% of total sales
Every budget is expected to raise 5% every year, except for television as well as leaflets
which will decrease in the second and third year of the plan. Budget for celebrating
public event will remain unchanged in the second year but increase in the third year.
1. Sale forecast
Based on the analysis of Singapore population as well as beverage consumption in this nation
that were shown in part C, it is possible to believe that growth market in Singapore will be huge.
Therefore, we estimate the number of instant coffee packages can be consumed in the next three
years in Singapore is as following:
Table 3: Expected Number of Good Sales
Number of coffee package sold FY 1 FY 2 FY 3
G7 Instant 3 in 1 Coffee 590,000 598,850 607,833
G7 Instants 2 in 1 coffee 360,000 365,400 370,881
G7 Instant Cappuccino Coffee 410,000 416,150 422,392
G7 Passiona Instant Coffee 320,000 324,800 329,672
Total 1,680,000 1,705,200 1,730,778
Based on the unit price of each kind of instant coffee product that are quoted in section D, part 2,
we can predict the sale of the products:

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Table 4: Sale Forecast
Sales (SGD) FY 1 FY 2 FY 3
G7 Instant 3 in 1 Coffee 1,663,800 1,688,757 1,714,088
G7 Instant Cappuccino Coffee 1,209,500 1,227,643 1,246,057
Total Sales 4,660,900 4,730,814 4,801,776
2. Budgets
2.1Funding
Table 5: List of Investors
Investors SGD
Trung Nguyen Company 400,000
Investor 1 150,000
Investor 2 150,000
Bank loan 300,000
Total 1,000,000
2.2Estimation in the first year
Expense

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Table 6: Marketing Expense Allocation in the first year
Item FY 1 Measurement
Renting fee 10,800
Building a website 10,000 First location in all search engine + 3,000 visitors
Leaflets, Brochures 5,500 Distribute 800,000 leaflets
Advertisement 233,045 Reach 5,000,000 watchers
Public events 50,000
Total 309,345
Profitability
Table 7: Profitability in the first year
Items FY 1 Total
Product lines (1) (2) (3) (4)
Sales Volume 590,000 360,000 410,000 320,000 1,680,000
Revenue 1,663,800 968,400 1,209,500 819,200 4,660,900
COGS 1,331,040 774,720 967,600 655,360 3,728,720
Gross Margin 332,760 193,680 241,900 163,840 932,180
SG&A expense 290,140 150,520 192,850 155,760 789,270
Profit before tax 42,620 43,160 49,050 8,080 142,910
Note:
(1): G7 Instant 3 in 1 Coffee (3): G7 Instant Cappuccino Coffee
(2): G7 Instant 2 in 1 Coffee (4): G7 Passiona Instant Coffee

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2.3Estimation of marketing expense and expense allocation in the three years
Table 8: Marketing Expense Allocation in three years
Item FY 1 FY2 FY3 Total
Renting fee 10,800 11,340 11,907 34,047
Building a website 10,000 8,000 8,000 26,000
Leaflets, Brochures 5,500 5,225 4,964 15,689
Advertisement 233,045 236,541 240,089 709,674
Public events 50,000 50,000 100,000 200,000
Total 309,345 311,106 364,960 985,410
So, the initial investment needed for advertising activity is 985,410 SGD
Note:
Renting fee is 900 SGD per month. Therefore, in the first year, it will cost us 10,800
SGD
Fee for building website includes:
o Domain: 10 SGD
o Hosting: 100 SGD
o Maintenance: 500 SGD
o Search Engine Optimization: 750 SGD
2.4Break Even Anlysis
We have the break even table as follow:

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Table 9: Break Even Analysis
Number of coffee package sold Break Even Point (Unit: Package)
G7 Instant 3 in 1 Coffee 1,747,181
G7 Instants 2 in 1 coffee 1,831,617
G7 Instant Cappuccino Coffee 1,670,186
G7 Passiona Instant Coffee 1,924,629
2.5Payback Period
With the assumption that COGS accounts for 65% of the total revenue each year and Selling &
Administration cost increase in the same line with the growth rate of revenue by 1.5%/year. We
have cash flow of the project as follows:
Table 10: Cash Flow
Year
Cash flow
(SGD)
Cumulative Cash Inlow
(SGD)
Year 0 (985,410) (985,410)
Year 1 4,660,900 3,675,490
Year 2 4,730,814 8,406,304
Year 3 4,801,776 13,208,080
( )

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I. CONCLUSION
In conclusion, Singapore instant coffee market is very potential with large consumption trend in
coffee. Majority of coffee consumers are white collar, expat and tourists. New consumption
trends include: quality but convenient coffee, healthy-friendly product, environmental and ethical
focus. Trung Nguyen is a famous Vietnamese coffee maker. It has outstanding coffee quality
with great flavor and smell. Its vision is to become a worldwide coffee maker and franchising in
many countries. Gradual expansion is its approach in which Vietnam will expand to the South
East Asia first with Singapore is its initiation. Trung Nguyen will face many challenges when
they expand to Singapore. This study has provided overview about Singapore instant coffee
market, customer behaviors, new trends as well as identified key strengths of Trung Nguyen.
From those, detailed marketing plan is set up for Trung Nguyen to penetrate Singapore market.

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J. REFERENCES
Bloomberg (2013) Super plans deal to rival Nestle among Asia coffee drinkers,
http://www.bloomberg.com/news/2013-07-25/super-plans-deal-to-rival-nestle-among-asia-
coffee-drinkers-2-.html
Channels NewsAsia (2013). Singapore economy should grow modestly into 2014 amid domestic
inflation says MAS, http://www.channelnewsasia.com/news/business/singapore/singapore-
economy-should/846434.html
Marketinfoguide (2012). Market trends of Singapore’s food and beverage industry 2012,
http://www.marketinfoguide.com/2012/05/02/market-trends-singapores-food-beverage-industry-
2012/
Nestle (2013). Nestlé expands research and development facilities in Singapore,
http://www.nestle.com/media/newsandfeatures/nestle-expands-research-and-development-
facilities-in-singapore
Nielson (2012). Vietnam instant coffee market, http://en.stockbiz.vn/News/2012/7/4/307534/ac-
nielsen-kantar-worldpanel-g7-leads-vietnam-instant-coffee-market.aspx
Singapore Department of Statistics (2013) Population trends,
http://www.singstat.gov.sg/Publications/publications_and_papers/population_and_population_str
ucture/population2013.pdf
Singapore Food and Beverage 2H11, http://www.cri-report.com/food/1120-singapore-food-and-
beverage-industry-2h11.html
Singapore Tourism Board, Singapore’s Tourism Sector Performance for 2012,
https://app.stb.gov.sg/Data/news/3/6aa3f7e91ef087b5e9f647e25241745f/tourism%202012%20ro
undup%20presentation%20(27%20mar)_3.pdf
Super Group (2013). Smile with new super coffee, http://www.supergroupltd.com/wp-
content/uploads/2013/04/Press-Release_-Smile-With-The-New-Super-Coffee_18Mar13.pdf
TED Case Studies, Coffee and Environment, http://www1.american.edu/TED/coffee.htm

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The Coffee Locator, 4 hot coffee trends rocking the world,
http://thecoffeelocator.com/trending/around-the-world/coffee-trends-rocking-the-world
World Bank Data

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APPENDIX 1: TRUNG NGUYEN’S COMPETITORS
Singapore’s industry in general and coffee area in particular has developed for many years.
Therefore, Trung Nguyen will have to face a number of competitors. Among them, Nestlé
Singapore Pte Ltd and Super Group is the two main largest instant coffee competitors in this
market.
1. Nestlé Singapore Pte Ltd
The leading player in coffee market in Singapore is
Nestle S.A. In 2012 Nestlé Singapore Pte Ltd is
reigning the Singapore’s coffee market with a 40%
retail value share.
Nestle is a large multinational corporation with
representatives all over the world. Instant coffee is its
key product and revenue driver as the result this MNC will attempt their best effort to maintain
market share in Singapore. In recent, Nestle has just invested CHF 4 million, equivalent to 5.5
million Singapore dollars to expand research and development facilities in Singapore.
According to Mr Johannes, Nestle Global Head of Research and Development, “with this
investment, our research and development centre in Singapore becomes our leading global R&D
centre for Nescafe Coffee Mixes and Milo”. The purpose of this R&D is to “ensure nutrition and
health is integral considerations in new product development. This will include new
formulations and formats, as well as reducing sugar, salt and fat in our products, without
compromising taste.” (Nestle, 2013). Nestle also aims to be more localized in terms of flavor to
Singaporean. Competitive advantages of Nestle base on strong R&D arm, financial capability
and worldwide brand name.

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2. Super Group
Super group is another strong competitive brand just shown up to buy
other coffee brands like Owl Coffee to fight against Nestle. Along with
Owl, the company’s Super Coffeemix brand competes with Nestle in
eight Asian countries including Singapore, Malaysia and Thailand
(Bloomberg, 2013).
Super Group has grown fast and day by day taken Nestle’s market share in Singapore and other
South East Asian countries as well. One key competitive advantage of Super Group is it has
provided a mix that has totally fit in Singaporean tastes in specific and Asian countries which
prefer thick and aromatic coffee (Super Group). It has price advantage compared to Nestle.
However, with the current trend in customer behaviors in Singapore as above, Super Group
seems to tap out of this market soon and will expand to other les developed countries in the
region like Vietnam, Philippines and Myanmar.

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APPENDIX 2: PRICE QUOTATION OF NESTCAFE AND SUPER GROUP
Product Line Price (SGD)
Nescafe (15 sachets/ box)
Nescafe 3 in 1 2.78
Nescafe Café Viet 2.84
Nescafe Red Cup 5.86
Super Group (15 sachets/ box)
Coffee Mix 3 in 1 7.73
2 in 1 Kopi-O 6.11
Source:
http://www.fairprice.com.sg/webapp/wcs/stores/servlet/CategoryDisplay?catalogId=10051&sto
reId=90001&categoryId=13979

TRUNG NGUYEN LAUNCHS NEW G7 INSTANT COFFEE PRODUCTS
IN SINGAPORE
Marketing Plan

OUTLINE
Company Review
Objectives, Mission, Keys to Success
Marketing Overview
Marketing Strategy
Budgets & Profit Analysis

tem in
COMPANY OVERVIEW
Established in 1996
Having the largest franchise coffee shop sys
Vietnam
Doing business globally

OBJECTIVES & MISSION
OBJECTIVES:
Take 10% of Singapore instant coffee market share up to 2018
Become the one of the largest manufacturers and exporters in
coffee area by 2010
MISSION:
“connect and develop coffee lovers of the world”

KEYS TO SUCCESS
High
quality
input
Man
Power
Expand
Opeartion Success

MARKET OVERVIEW
Singapore
Population
Language Religion
Buddhism
Christianity
Islam
Taoism
Hindism

Singapore Beverage
Industry
MARKET OVERVIEW
Source: Euromonitor International

Product Line Price (SGD)
Nescafe (15 sachets/ box)
Nescafe 3 in 1
Nescafe Café Viet
Nescafe Red Cup
Super Group (15 sachets/ box)
Coffee Mix 3 in 1
2 in 1 Kopi-O
2.78
2.84
5.86
7.73
6.11
MARKET OVERVIEW
Competitors

MARKET OVERVIEW
Market Analysis The business portfolio or growth rate matrix
Source: Hedley, B. (1977, p12)

VIETNAM
SINGAPORE
MARKET OVERVIEW
Market Analysis
Life Cycle of Trung Nguyen Products
In Vietnam: Trung Nguyen is the biggest
the coffee in Vietnam. In other words,
Trung Nguyen’s products is in now in the
maturity phase
Introduction Growth Maturity Decline
In Singapore: Trung Nguyen is totally a
newcomer in Singapore. the company’s
product is in the first phase –
introduction

MARKET STRATEGY
PRODUCT STRATEGIES
G7 Instant 3 in 1 Coffee G7 Instant 2 in 1 Coffee G7 Instant Cappuccino
Coffee
G7 Passiona Instant
Coffee
- Sugar
- Non-diary
- Instant coffee 13%
- Sugar
- No calories
- Instant coffee 15%
- 30% less fat
- 50% less sugar
- 60% fewer calories
- More creamer
- Collagen
- Vitamin B3
- Rare oriental herbs

MARKET STRATEGY
PRICE STRATEGIES
COGS and Prices of G7 Products
Product (15 sachets/package) COGS Price (SGD)
Key Assumption
Shipping cost: 5%value based
Transportation cost: 10% value based
Distribution cost: 10% value based
G7 Instant 3 in 1 Coffee
G7 Instants 2 in 1 coffee
G7 Instant Cappuccino Coffee
G7 Passiona Instant Coffee
2.256
2.152
2.36
2.048
2.82
2.69
2.95
2.56
SG&A: 15% value based
Markup cost: 25%. It is quite small
figure as we adapt penetration pricing
strategy in this period.

m
MARKET STRATEGY
PLACE STRATEGIES
Franchise Syste
Retailers
Store Convenience Coffee Machine

MARKET STRATEGY
PROMOTION STRATEGIES
Promotion Advertisement
Providing Sample
On Television
Offering Discount & Coupon On Radio
Rewarding Surprising Price On Social Network

MARKET STRATEGY
PROMOTION STRATEGIES
Public Relation
Earth Hour
Food & Drink Expo
Asian Green Expo
Argo Trade Expo

SWOT ANALYSIS
- Company’s Products has unique flavor
- Company has a lot of experience in not only
coffee industry but also marketing
- Company has a large franchise coffee shops
- Singapore is a huge coffee market,
especially in instant coffee segment
- People are willing to try new products
- Newcomer in Singapore
- In Singapore, brand is still weak
- Product is easily copycat
- Threats derive from new entrants, current
competitors.
- Global crisis can affect the company’s
performance

Number of coffee package FY 1 FY 2 FY 3
sold
G7 Instant 3 in 1 Coffee 590,000 598,850 607,833
G7 Instant Cappuccino
Coffee 410,000 416,150 422,392
Total 1,680,000 1,705,200 1,730,778
Sales (SGD) FY 1 FY 2 FY 3
Total Sales
1,663,800 1,688,757 1,714,088
968,400 982,926 997,670
1,209,500 1,227,643 1,246,057
819,200 831,488 843,960
4,660,900 4,730,814 4,801,776
SALES FORECAST
1,800,000
Sales Forecast
1,600,000
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
0
FY 1 FY 2 FY 3
G7 Instant 3 in 1 G7 Instant 2 in 1
G7 Instant Cappuccino G7 Passiona Instant

Items FY 1 Total
Product lines (1) (2) (3) (4)
Sales Volume 590,000 360,000 410,000 320,000 1,680,000
Revenue 1,663,800 968,400 1,209,500 819,200 4,660,900
COGS 1,331,040 774,720 967,600 655,360 3,728,720
Gross Margin 332,760 193,680 241,900 163,840 932,180
SG&A expense 290,140 150,520 192,850 155,760 789,270
Profit before tax 42,620 43,160 49,050 8,080 142,910
SALES FORECAST
Assumption:
Sales: go up by 1.5% per year
Fee for building website: reduces in the next two years since in these years
Fee for advertisement will account for 5% of total sales
Every budget is expected to raise 5% every year, except for television as well as leaflets
Budget for celebrating public event will remain unchanged in the second year but increase in the third year.
Allocation of the Budget in the first year Estimation of Profitability in the first year
Item FY 1 Measurement
Renting fee
Building a website
Leaflets, Brochures
Advertisement
Public events
Total
10,800
First location in all search engine + 3,000
10,000 visitors
5,500 Distribute 800,000 leaflets
233,045 Reach 5,000,000 watchers
50,000
309,345

Item FY 1 FY2 FY3 Total
Renting fee
Building a website
Leaflets, Brochures
Advertisement
Public events
Total
10,800 11,340 11,907 34,047
10,000 8,000 8,000 26,000
5,500 5,225 4,964 15,689
233,045 236,541 240,089 709,674
50,000 50,000 100,000 200,000
309,345 311,106 364,960 985,410
Number of coffee package sold Break Even Point (Unit: Package)
1,747,181
1,831,617
1,670,186
1,924,629
Market Expense Allocation
SALES FORECAST
��𝐯��𝐚��=
𝐅𝐢��
𝐏�𝐢��𝐏�� 𝐔�𝐢�− ��𝐒��

Cash flow Cumulative Cash
Year Inlow (SGD)
(SGD)
Year 0 (985,410) (985,410)
Year 1 4,660,900 3,675,490
Year 2 4,730,814 8,406,304
Year 3 4,801,776 13,208,080
Payback Period
SALES FORECAST
985 , 410
𝑃�𝑦��𝑘 ��= 1 +
4,660,900
= 1,21 𝑦��𝑟
Payback Period = 1 year 2 months

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