The document discusses Starbucks entering the Vietnamese coffee market dominated by Trung Nguyen Coffee. It provides background information on both companies and analyzes their strengths, weaknesses, opportunities, and threats. It then outlines goals and strategies for Trung Nguyen to maintain market leadership, including improving store images, rebuilding their brand personality, updating menus, and expanding internationally.

1. GROUP 4
NGUYỄN MINH NGUYÊN
VŨ LÊ NGUYÊN
TRẦN THỊ THANH TÂM
ĐÀO THÚY TIÊN
BÙI TRẦN QUỐC VIỆT
QUÁCH TIỂU YẾN

2.  Part 1: Introduce about the new giant competitor
• Brand (History, Stores, Form, …)
• Customers
• Mission statement
 Part 2: Identify problems and find out solution
• R&D development
• SWOT analysis
• Short term and Long term Goals
 Part 3: Enter upon a campaign
• Segmentation
• PR strategy
• Mission statement
TABLE OF CONTENTS

3. Information Starbucks Trung Nguyen Coffee
Nationality
COMPARATIVE
Date
Boss
Rank
HQ
Profit in 2011
Staffs
Stores
Available at
USA
1971
Howard Schultz
Top of the world
Seattle, Washington
11.7 billions USD
37,000 people
19,555 shops
58 nations
Viet Nam
1996
Nguyen Vu Le Dang
Number one in VN
Bui Thi Xuan district 1
100 milions USD
3,000 people
1000 shops
Viet Nam and Singapore

4. PENETRATING TO VIET NAM
In additional, Starbuck applies 3 terms to enter different
markets:
1. Licensing
2. Joint venture
3. Whole own subsidiary
In Viet Nam, Starbuck gets licensing
form Coffee Concepts Co (from Hong
Kong)

5. • Total stores: 17,651 (as of July 1, 2012)
• Now, being served in Viet Nam
• Location: 76 Lê Lai street, district 1, Hồ Chí Minh City
THEIR STORES

6. • Specialty for Asia: Asian Dolce Latte
• Beside 5 kinds of black coffees :Espresso Cafe, Americano, Espresso Con
Panna, Espresso Macchiato
• Others are coffee with cream, and Frappuccino® Blended Coffee which
are sweet, fat and flat.
• Those are hard to satisfy the tastes of heavy coffee drinker and hard to
make people stay awake but expensive (more than 70.000 VND )
THEIR COFFEE

7.  Their mission: to inspire and nurture the human spirit
“One person, One cup and One neighborhood at a time.”
 Their Coffee
• Sources the finest coffee beans.
• Roasts them with great care.
• Improve the lives of people who grow them.
 Their Partners
• Creates a place where each of us can be ourselves.
• Treats each other with respect and dignity.
 Their Customers
• Connect with, laugh with, and uplift the lives of our customers.
• Starts with the promise of a perfectly made beverage.
THEIR MISSION STATEMENT

8.  Their Stores
• Makes customers feel this sense of belonging
• Our stores become a haven
• A break from the worries outside
• A place where you can meet with friends.
 Their Neighborhood
• Take our responsibility to be good neighbors seriously.
• Want to be invited in wherever we do business.
• Can be a force for positive action – bringing together our partners,
customers, and the community to contribute every day.
• See that their responsibility – and their potential for good – is
even larger.
• The world is looking to Starbucks to set the new standard, yet
again. They will lead.
THEIR MISSION STATEMENT

9. Viet Nam GDP
BASE ON THE GRAPH WE HAVE SURE ABOUT THAT VIET NAM IS THE ONE
HAVE LOWEST GDP. IN INDONESIA, PEOPLE BUY 1 CUP OF COFFEE FOR 4$.
THE AMOUNT OF MONEY IS MORE THAN SALARY PER DAY IN VIET NAM.

10. TARGET CONSUMER:
High income
people
The first reason is people in HCM have average wage is 3000USD per
person (the same with GDP of Indonesia). Most of people in HCM are
adult and office worker so they can be the main customer of Starbuck.

11. In Viet Nam, Starbucks coffee is a stand-out brand, new trend to
catch, but quite luxury, very confined class to enjoy, …
+Teenagers: prove and feel proud of themselves
+Young adult: widen knowledge, experience and evaluate
international brand
+Foreigners: look for local home tastes and enviroment.
_Menu: abundant in drinks and foods
_Taste: insipid, greasy
_Environment: spacious, luxury, friendly, professional
_Price: high, unreasonable.
In Vietnam, Trung Nguyen coffee is popular, trust worthy,
suitable for most classes,…
_Taste: Strong – suitable for Vietnamese people, fragrant,
sebaceous.
_Enviroment: friendly, tradition, uncreative, applicance.
_Price: considerable, payable.

12. The first Vietnamese franchise of coffee houses.
Has wide distribution channels.
PR strategy.
Remains on the list of leading coffee companies in
Vietnam.
Become the international brand.
Lost market share, loss of orientation.
Confusion of policy and strategy as well as management.
SWOT ANALYSIS
S
W
O
T

13. Trung Nguyen
• The first Vietnamese franchise of coffee
houses, built a franchise network of more
than 10,000 cafés in the country.
• Franchised in Singapore, Cambodia,
Ukraine, Japan, German, Thailand, and
China .
• Wide distribution channels.
• Have coffee shops inside famous
buildings and malls which have large
amount of employees and people.
• High potential to improve in world’s
STRENGTHS
market.
• Easy to penetrate Asia coffee’s market.
• Expand brand.
• Good quality products such as Creative
Coffee no. 1, 2, 3, 4, 5, Legendee,
Passiona and Weasel.
• Captured and successfully launched a
series of consistent youthful style.
Starbucks
• High visibility locations to attract
customers.
• Established logo, developed brand,
copyrights, trademarks, website
and patents.
• Company operated retail stores,
International stores (no
franchises).
• Valued and motivated employees,
good work environment.
• Good relationships with suppliers
Industry market leader with a
globally renowned brand.
• Customer base loyalty.
• Product is the last socially accepted
addiction.
• Widespread and consistent
Knowledge based.

14. Trung Nguyen
• Apply price discrimination.
• Cannot control all the partners.
• Missing a top leader in the field of
creative and innovative style to
keep the system consistent.
• Focus too much on wide
development of the brand and
forget to develop image and style,
design furniture, etc.
• = > lose unique advantages that
have helped them leveled up .
WEAKNESSES
• PR strategies.
Starbucks
• High pricing which cost not all kind
of market could buy Starbucks’
products.
• Starbucks considered ‘American
Global’ which cost sentimental issue
for customers in some countries.
• Lack of internal focus (too much
focus on expansion).
• Self cannibalization.
• Cross functional management.
• Starbucks refuses to guarantee that
milk, beverages, chocolate, ice
cream, and baked goods sold in the
company’s stores are free of
genetically-modified ingredients.
• Because of its perfectness of
employees service, some employees
complaint about the management
which pushes them to always be
perfect. That is why they make
Starbucks Workers Union.

15. Trung Nguyen
• Remains on the list of leading
coffee companies in Vietnam.
• Become the International brand.
• Trung Nguyen also has many
opportunities and advantages
among foreign comers to attract
capital and better cooperation with
Asian countries.
• Create and improve images of
OPPORTUNITIES
stores.
• Improve franchises in Asia.
Starbucks
• Expansion into retail operations.
• Technological advances
New distribution channels
(delivery).
• New products.
• Distribution agreements.
• Brand extension.
• Emerging international markets.
• Continued domestic
expansion/domination of segment.

16. Trung Nguyen
• Lost market share, loss of
THREATS
orientation.
• Confusion of policy and strategy as
well as management.
• Lost market share, loss of
orientation and confusion of policy
and strategy as well as
management.
• Compete in price
• Improve quality and create new
flavors
• After a few years being used to
Vietnam market, foreign comers
will be more powerful
Starbucks
• Increased competition from coffee
shops and others (restaurants, street
carts, supermarkets)
• US market saturation
• Coffee price volatility in developing
countries
• Negative publicity from poorly
treated farmers in supplying
countries
• Consumer trends toward more
healthy ways and away from caffeine
• Fragile state of worldwide production
of specialty coffees
• Alienation of younger, domestic
market segments
• Corporate behemoth image
• Cultural and Political issues in
foreign countries

17. HOW TO BECOME THE BEST

18. GOALS
In short-term:
 Dominate domestic market.
• Improve images of stores.
• Rebuild the brand personality.
• Update menu with new flavors.
In long-term:
 Conquer the world market.
• Expand revenue.
• Improve the quality of coffee bean.
• Improve PR strategy.

19. CONSUMERS
 Lifestyle:
• Drink coffee regularly in any period of day.
• High evaluation in coffee’s taste and
efficiency.
• Enjoy the professional and peaceful
environment.
• Concern about healthy and environment
issues.
• Price is important.
 Segmentation:
• Class: Middle and Upper class
• Age: over 25
• Job: Businessman and Employees
• Group: Believers
=> Have job, income and high need and high
estimate in coffee

20.  Slogan: “One cup for one opportunity of your future”
• Our coffee can make you stay awake
• Make you more creative and flexible
• Keep healthier by containing non-toxic
 Create a brand new outlook and new level of quality and brand.
• Expand spaces and markets.
• Design new and convenient tables, new cups, carpets….
 Improve our brand.
• Bring new environment.
• Create new flavors.
• Improve skills in growing and frosting coffee beans.
C
A
M
P
A
I
G
N

21. DECORATION
Space
_ Cool, fresh, lots of trees and
flowers.
_ Quiet, clean and clear.
_ Luxury, elegant and
professional.
_ 2 kinds of space:
+ Cooling chamber
+ Open-air space
Design
_ Luxury, elegant and
professional.
_Use simple and luxury colors:
white, black, brown, …
_ Table and chair made from
wood with foam rubber.
_ Use good quality coffee cup set.

22. DRAFT OF DESIGN

23. DECORATION

24. Sophisticated
• High price but reasonable
for middle and upper class.
• Space and design are
elegant, spacious and
luxury.
Luxurious
• Professional
environment.
• High- grade
furniture.
Gastronomic
• High quality of
coffee beans.
• Tasty drinks.
Adaptable
• Many branches in
and out side Viet
Nam.
• Many kinds of coffee.
Reliable
• Famous and long-standing
brand.
• Used by many
experts.
OUR BRAND PERSONALITY

25. ADD
PRODUCTS

26.  Organize a reference group of people enjoying coffee
habits
• Experiencing kinds of coffee
• Capture information, current affairs and exchange
ACTIVITIES
their own experiences
• Many people, whether previously knew each other
or not, become friendly, and can be attached to
work together
 Sponsor for variety show ( Dancing celebrities, Inside
VN, FBNC, Giving strength to exam seasons – Tiep suc
mua thi…)
• Broadcast weekly on TVs
• Promote products
• Brand recognition
 Capture the tastes of consumer, produce the product
aims to please the average taste of undifferentiated
audience
 Upgrade positions – become the 3rd home ( besides
consumers’ house and company) to help customers feel
themselves at home, relaxed and comfortable.

27.  Bring satisfaction to consumers.
• Provide high quality and hygiene drinks
• Create friendly and professional environment
• Acquire question, feedbacks
 Nurture the next generation and develop national economic.
MISSION
• Scholarships
• Training courses
• Recruitment
• Take part in annual Vietnamese high quality product festival
 Keep our position.
• Continue to operate our own distinguished way.
• Value good relationships with consumers and partners

28.  Justify Vietnamese coffee brand to the world.
• Establish an international channel providing a close view to the
process of growing, harvesting, selecting and selling coffee.
• Run several kinds of coffee to adapt the foreigners but still keeping
our unique taste