Trung Nguyen Corporation is Vietnam's leading coffee brand, established in 1996, with over 1,000 cafes worldwide and exports to over 40 countries. The company's mission focuses on enriching Vietnamese culture through coffee and fostering creativity, while its innovative market strategies include extensive franchising and diverse product development. The SWOT analysis highlights strengths in distribution and management but warns of threats from rising competition and the need for standardized franchising.

1. L o g o
Successful Strategy of
Trung Nguyen corporation
Final Presentation
1
BUI QUANG NHA
D9905803
Human resource
management

2. L o g o
Contents
2
Introduction
1
Mission and Core values
2
Analysis of Core values
3
Evaluation & Recommendation
4
Conclusion
5

3. L o g o
Introduce about Trung Nguyen corporation
 Trung Nguyen corp. was
established in Buon Me
Thuot, central coffee
plantation in Vietnam
 Trung Nguyen is
Vietnamese No 1 coffee
Brand with over 1,000
cafes world-wide, and
coffee exports to over 40
countries.
General Director of Trung Nguyen corporation
1

4. L o g o
1996: Trung Nguyen start operation in Dak Lak province, the largest coffee
plantation in Vietnam
1998: First coffee outlet in Ho Chi Minh City, marking it first presence in Vietnam .
2000 The first coffeehouse introduced in Hanoi, Trung Nguyen franchise
coffeehouses set up
2002: Franchised successfully in Thailand, Cambodia, Japan
2003: G7 instant coffee mix was introduced, started the combat with Nescafe &
other brands
2006: Opened coffee shop in Germany, New York, Malaysia, China
Launch G7Mart chain in Vietnam, G7 products appeared in over 43 countries
2008: Launched new franchise coffeehouse system in Vietnam and other countries.
Launched Coffee Village in BMT and aims to become Coffee Metropolis in Vietnam
Trung Nguyen Milestone
2005: received EUREPGAP certificate with international recognition
1

5. L o g o
Vietnam coffee market
 Vietnam is the country of coffee, but before 1996 most
of coffee shops were no brand name
 Brand name for instant coffee:
5
Vinacafe (1983)
Trung Nguyen
(1996)
Nescafe from
Nestle (1995)
1

6. L o g o
Mission and Values
6
Slogan “Creative Inspiration”
Trung Nguyen Mission
Create a leading coffee branch enriched by Vietnamese culture.
Brining to everyone a source of creative inspiration
and enjoy by their own styles
Develop and
protect Brand
Strong human
resource asset
Promote social
responsibilities and
community
development
Inspire the source
of creativity
Market
strategy
Midterm Presentation
Competitive
strategy
Final Presentation
2

7. L o g o
7
Inspire the source of creativity
 With 170,000 hectares of
coffee, Dak Lak is strong
basement for Trung Nguyen
ambition
 With European advanced
technology and Trung
Nguyen’s unique know-how
formula for brewing coffee
 And the trump card-General
Director Dang Le Nguyen
Vu who can raise the love
for drinking coffee
3
Inspire the source
of creativity

8. L o g o
Market strategy
8
Sustain success
Diversification
Development
Expansion
penetration
3
Market
strategy

9. L o g o
Market penetration
Enter market with its own style:
 Drinking coffee for free in 10 days
 And many others activities
Maintain by its strategic triangular:
 1+2
9
Market
strategy
3

10. L o g o
Market strategy
10
Sustain success
Diversification
Development
Expansion
penetration
Market
strategy
3

11. L o g o
Market expansion
Oversea market expansion with flexible
franchising system:
 First franchised in Singapore market
 The Brand appeared in Japan, Thailand,
Singapore, China and Czech Rep.
Also appeared in supermarket in
US, EU, Russia.etc
11
400 café in Japan
Clark, Singapore
Market
strategy
3

12. L o g o
Market strategy
12
Sustain success
Diversification
Development
Expansion
penetration
Market
strategy
3

13. L o g o
Product development
13
Creative 2
Creative 1
Creative 5
Creative 4
Creative 3
Creative
Invest in deep for Product
Development
Enjoy coffee with your own styl
Market
strategy
3

14. L o g o
Market strategy
14
Sustain success
Diversification
Development
Expansion
penetration
3
Market
strategy

15. L o g o
Diversification (1/4)
Trung Nguyen has created more than 30 coffee
products, each with unique aroma
Create specific products for different market
segments
Create 9 levels of aroma for each product and
make it as the unique style of Trung Nguyen
coffeehouse
15
3
Market
strategy

16. L o g o
Diversification (2/4)
Premium
16
Diamond (1-5) Legendee Weasel kopi luwak
3
Market
strategy

17. L o g o
Diversification (3/4)
Mid-level Products
17
Creative (1-5) Passiona:
low coffein coffee
Gourmet Blend
Mix coffee
3
Market
strategy

18. L o g o
Diversification (4/4)
18
0
20
40
60
80
100
A type B type
T.Nguyen Vinacafe Nescafe cafe Long
cafe BMT Me Trang Khac
Distribution of popularity of coffee brands by coffee types (%) in Vietnam
3
Market
strategy

19. L o g o
3.3 Branding strategy
19
Sub-brands:
 G7 for instant coffee
 Weasel kopi luwak
and Legendee
Passiona
Creative
Branding strategy
Franchise:
Building success
upon partner’s
success.
3
Develop and
protect Brand

20. L o g o
3.3 G7: successful sub-brand
20
Convenient Shop system
3
Develop and
protect Brand

21. L o g o
market expansion by franchise strategy
21
3
Develop and
protect Brand

22. L o g o
II. Mission and Values
22
Slogan “Creative Inspiration”
Trung Nguyen Mission
Create a leading coffee branch enriched by Vietnamese culture.
Brining to everyone a source of creative inspiration
and enjoy by their own styles
Develop and
protect Brand
Strong human
resource asset
Promote social
responsibilities and
community
development
Inspire the source
of creativity
Market
strategy
Midterm Presentation
Competitive
strategy
Final Presentation
3

23. L o g o
Competitor analysis
Competitor
analysis
Industry
rivalry is
high
The threat
of
substitutes
power of
consumers
is high
threat of
new
entrants is
high
the
bargaining
power of
suppliers is
low
23
Competitive
strategy
3

24. L o g o
Positioning strategy of Trung Nguyen Corp.
24
Competitive
strategy
Trung Nguyen
Nescafe
Vinacafe
MacAfee
Price
Benefit
3

25. L o g o
Competition strategy
25
Innovation as key point to compete
With the motto: “to defeat the foreign brand
in Viet Nam before go to the world”. Trung
Nguyen has changed the face of the market
share of soluble coffee in short time: Nescafe
reduce market share of 45%, accounting for
21% G7, the rest belong to others. This is
result of product innovation strategy of
Trung Nguyen at the strongest time.
Weasel Coffee
US$ 3,000 per kilo
Passiona
coffee for women
Clubhouse
top of famous mountain
Competitive
strategy
3
Leader portrait
made by coffee bean

26. L o g o
Competition strategy
26
Widening its vertical chain:
 Opening it’s own distribution channel: G7 mart
 Investment in developing and growing coffee
plantation
Competitive
strategy
3

27. L o g o
Trung Nguyen organizational structure
27
Strong human
resource asset
3

28. L o g o
Human resources
Name Position % stock share
Shareholders
1 Mr. Đặng Lê Nguyên Vũ Chairman 23.89%
2 Ms. Nguyễn Thị Thu Trang Committee member 0.05%
3 Mr. Nguyễn Văn Hoàn Committee member 23.77%
4 Mr. Hoàng Nguyên Học Committee member 8.6915%
5 Ms. Nguyễn Thị Hồng Committee member 10.0598%
Executive Board
1 Mr. Đặng Lê Nguyên Vũ CEO 23.89%
2 Ms. Nguyễn Thị Thu Trang CFO 0.05%
3 Mr. Nguyễn Văn Hoàn Chief Logistic Director 23.77%
4 Mr. Hoàng Nguyên Học Executive Director of
Material Development
8.6915%
5 Ms. Nguyễn Thị Hồng Project Manager 10.0598%
28
3
Strong human
resource asset

29. L o g o
Social activity
29
Social responsibilities
and community
development
3
 Corporate with Thanh Nien Newspaper to launch
"Innovation for Vietnam Trademark" program
 found the investment fund "Creative inspiration" which
financing for the winning contestants on the
show's Business Start VTV3
 Support the charity program "Connect the heart rate" to
perform heart surgery for children with congenital heart
disease
 Trung Nguyen always the important sponsor for any
summit in Vietnam and provide the official coffee drink to
those summit.

30. L o g o
Analysis
Strong (S):
• Factory located at coffee center
• Widespread distribution channels
• Pioneer in franchising in VN
• PR activity is advantage
• Management team is young and support
innovation
Weakness (W):
• Franchise system lacks of consistency
• There are too many projects and
ambition at the same times
• Frequent change of logo and color
Opportunities (O):
• Coffee is protected by
state and support costs and
facilitate exports to foreign countries
• Vietnam join WTO
• Barriers preventing enterprises from
the sectors low
• There are others market segment still
available for Trung Nguyen
Threats(T):
• High inflation rate
• Alternative product is various
• Competition increases with the present
of big players such Starbuck, Dunkin
Donut,… in Vietnam
30
SWOT analysis
4

31. L o g o
Recommendation
31
Expand in new market segment: canned coffee
Concentrate on main product line instead of too
diversify: G7mart, etc.
Standardize franchising system
4

32. L o g o
Conclusion
Create more value to
customers by:
 Provide customers with a lot of
choices with good quality
 Provide each customer unique
style of drinking coffee
 Trung Nguyen café is not only
the place to drink, but also
sharing the way to taste coffee
 Raising Vietnam Coffee Value
32
B
C
Control reasonable cost
by :
 Take advantage of abundant
coffee raw material in Dak Lak
 Franchise helps Trung Nguyen
expand its system with low
cost
 Strong human asset and
creation also help Trung
Nguyen lower the cost
4

33. L o g o
THANK YOU