4. ABOUT US
• Highlands Coffee is a Vietnamese brand under
profession:
– Coffee shop chain
– Producer and distributor of coffee products
• Known since 1998, owned by Việt kiều David Thai
under Viet Thai International Joint Stock Company.
• Highlands Coffee first opens in Metropolitan tower
in 2000, quickly, brings a fresh style to Vietnam
coffee shop business.
5. SUMMARY
• Until 2009, the company operated 80 coffee
shops in six cities and provinces across VN
– Hanoi, Hai Phong, Saigon, Danang, Vung Tau, Dong
Nai.
• At present, Saigon has 53 brands in every district
• Seeing the strengths and potentials of coffee
consummation, VTI decide to launch a brand
new Highlands Coffee on 220 Cao Thang that
600m away from cross Ba Thang Hai.
11. Industry PEST Analysis
• Political stability
mostly in agriculture
• However in
merchandising and
enterprise industry
still fixing
• Government
encouragement for
foreign investments
• Tax policy for
investors
POLITICAL ECONOMICAL SOCIAL/CULTURE
• Development of FTA
(free trade agree) in
Vietnam
• High inflation 4.1%
(2014 est.) and
change in VN Dong
value every year
• GDP growth of 6.0%
(2014 est.)
• Positive economic
reforms since 2012
• Coffee centered
culture
• Coffee takeaway
culture only
popular in main
cities
• Young people
quickly absorbing
modern trends
Western
standards
12. Industry PEST Analysis
• Use of Internet and
Smartphone industry
(Around 5 million in
2014)
• Increasing use if
Social media
networks
TECHNOLOGY ENVIRONMENT LEGAL
• Tropical rainy climate
with varying
temperatures
• Having a heavy
polluted
environment that
affectedly harm to
the material supply
• Medium labor
policies
• Food safety
regulations
• Advertising
regulations
• Bribery and
Corruption
13. SWOT
• Strong brand equity
• Quick service
• Use material coffee in Vietnam
• Good location with beautiful view
• New style of mixed culture between the West and the East
• Consistency in Western identical decoration and delivery service
• Highlands Coffee shops located at central of city or trade centers
• It looks so premium that many customers seem reluctant to
enter while they can afford
• Western style need time to be suitable for Vietnamese lifestyle
• Highlands coffee is rather expensive due to high cost in materials
and operating system.
• Highlands café does not focus much on promotion campaign.
14. SWOT
• There are not many cafe stores professional in style and
service
• Vietnamese people habit is to go to cafeteria for their
business
• Coffee market is now matured and fiercely competitive
• Most buildings in cities have already had at least one
cafeteria inside, it’s difficult for Highlands to jump in and
replace
• It’s difficult for outdoor cafe store like Highlands to attract
customers in cold winter
• There are many competitors with Highlands Coffee, such
as: The Coffee House, Paris Baguette, and other
competitors
22. 2. Other espresso coffee
Vanilla latte
Caramel Macchiato
Drip Special
PRODUCT
23. 3. “Freeze” coffee slushie
• Caramel Phin Freeze
Elegant combine between
traditional coffee and jelly with a
little bit caramel on top.
• Freeze Green tea
Green milk tea added with espresso
drop and jelly.
PRODUCT
24. 4. Tea, fruit juice
• Lists of tea: lotus roasted tea,
light peach tea, peach jelly,
rose jelly, mango tea.
5. Banh mi, cake
PRODUCT
25. 6. Beverages & Consumable
Highlands Coffee now
introduces express coffee
(can), also roasted coffee
(package) sell at retailer
PRODUCT
26. PRODUCT & SERVICE
Service process:
- dynamic & willing
Booking & order:
- website, phone call, takeaway
29. PRICE
Why high price positioning?
Based on customer’s feeling, brand positioning
Business environment, high quality = high price
30. PLACE
Overview of the distribution strategy of the Highlands Coffee
2002
2006
2011
2015
2016
100 stores
on 6 cities,
provinces
75 stores
50 stores
25 stores
First ever
store in
HCM city.
1 week
later in
Hanoi
31. PLACE
The Store system is set at prime locations such as:
• Concentration of targeted customers of Highlands
• Brand-oriented always races with country’s latest
development and investment
• Navigate to central location of big cities: population density,
rising living-standards
• Franchising
33. PLACE
Distribution Strategy
• Location at a corner of intersection, convenient for business
• Nice view, high population, office accommodation
Disadvantages
Compete with numbers of café and catering shop
Small, cramped parking lot
41. PROMOTION
• “Đánh thức ngày mới!” – Buy a combo of Banh mi and coffee with only
39.000 VND. Event estimated sell out 3 million cups of traditional coffee
across the country in 2 months.
• Combo Freeze: Caramel Phin and Green Tea are applied at 49.000 VND
42. PROMOTION
WELCOME
• First 50 customers come to
grand opening day will receive
any drink for FREE.
• Next 100 will buy traditional
coffee for 20% off when
purchase along with any Banh
mi type (19,000 VND.)
*Require: Check-in on FB*
43. PROMOTION
Buy 1 get 1 Free
• Buy 1 medium Caramel Phin
Freeze get 1 small size for free
of the same type
• Buy 1 medium Freeze Green
Tea get 1 small size for free of
any drink you choose
• Available with voucher
44. PROMOTION
Mini Game
“Mê Cung Bí Ẩn”
• Create funny mini game on
Facebook, that attract customer to
win small prize or award.
• Receive voucher and discount
for new product
45. PROMOTION
Campaign
“Mỗi Tuần Cuốn Sách”
• Perceive card and start
stamping your point off every time
you buy drink.
• Enough stamp receive voucher
and discount on purchasing book
at certain bookstores.
48. (PEOPLE)
Store Manager 1
District Manager
(Highlands Coffee Shop)
Store Manager 2 Store Manager 3
Store Manager
Assistant
WaiterBarista Cashier Shipper Security
Organizational Structure
49. (PEOPLE)
Recruitment and Training
– 2 days training employers, 3-7 day training manager (high school degree, higher)
– Sponsor, support entry to several contests in exchange skilled preparation
50. Compensation
– Wages increased in every 3 months (depends on experience and dedication)
– Received tip from the customers
(PEOPLE)
51. FINANCE
No. Items Year
0 1 2 3
I TOTAL REVENUE 3,456,000,000 5,184,000,000 6,336,000,000
Expected Operating Capacity 30% 45% 55%
Consumption rate 86,400 129,600 158,400
Price of product and service 40,000 40,000 40,000
II TOTAL COST 2,142,480,000 2,380,080,000 2,538,480,000
1 Variable cost 475,200,000 712,800,000 871,200,000
Raw material 475,200,000 712,800,000 871,200,000
Insurance 0 0 0
Management 0 0 0
Cost of sales 0 0 0
Expenditure 0 0 0
Interest of Working Capital 0 0 0
2 Fixed cost 1,667,280,000 1,667,280,000 1,667,280,000
Electricity 36,000,000 36,000,000 36,000,000
Water & Internet 36,000,000 36,000,000 36,000,000
Wages 335,280,000 335,280,000 335,280,000
Management 270,000,000 270,000,000 270,000,000
Costs of sales 0 0 0
Leasing 960,000,000 960,000,000 960,000,000
Others 30,000,000 30,000,000 30,000,000
Capital Depreciation 0 0 0
III Profit before Tax 1,788,720,000 3,516,720,000 4,668,720,000
Long-term Interest 75,369,002 50,246,002 25,123,001
Income Tax 500,841,600 984,681,600 1,307,241,600
IV Profit after Tax 1,212,509,398 2,481,792,398 3,336,355,399
52. FINANCE
Target Year 1 Year 2 Year 3
Total table in store 20 tables 20 tables 20 tables
Total drink on table/ day 4 cups per table/ day 4 cups per table/ day 4 cups per table/ day
Total time daily operation 10 hours/ day 10 hours/ day 10 hours/ day
Total time usage for 1 table 1 hour 1 hour 1 hour
Total drink sold on 1 day 800 cups/ day 800 cups/ day 800 cups/ day
Capacity avaragely a day 30% 45% 55%
Average drink sold a day 240 cups/ day 360 cups/ day 440 cups/ day
Average price per drink 40.000 VND/ drink 40.000 VND/ drink 40.000 VND/ drink
Total income/ day 9.600.000 VND/ day 14.400.000 VND/ day 17.600.000 VND/ day
TOTAL REVENUE = 288.000.000/ MONTH
TOTAL COST = 178.540.000/MONTH
TOTAL INCOME =
54. RECOMMENDATION
Beside positive feedbacks from the customer,
negativities exist:
– 41% complaint feedback come from inexperienced services
– 9% unsatisfied with lack of privacy and space for business talks
– 24% think our promotion is less creative and not very attracting
– 5% hate to wait for the delivery come on time
– The rest want an upgrade in wireless service provided in shop
62. LETTER FROM TEAM
Highlands Coffee always look forward to
bring their customers the feel of a traditional
and modern values . As a famous brand, we
put trust in bringing customers the most
sophisticated experience of coffee.