Kế Hoạch Tiếp Thị Quốc Tế Cà Phê Trung Nguyên | Môn Marketing quốc tế - Đại học Kinh Tế Quốc Dân

lOMoAR cPSD| 58794847
MINISTRY OF EDUCATION AND TRAINING
NATIONAL ECONOMICS ECONOMY
SCHOOL OF ADVANCED EDUCATION PROGRAMS GROUP ASSIGNMENT
SUBJECT: INTERNATIONAL MARKETING
CLASS: MARKETING MANAGEMENT 60A
INTERNATIONAL MARKETING PLAN OF TRUNG NGUYEN COFFEE Lecturer: Nicholas Ha Noi – 2021 lOMoAR cPSD| 58794847
TABLE OF MEMBERS GROUP 6 Number Student Code Full name 1 11180603 Nguyễn Thị Ngọc Ánh 2 11180715 Phạm Ngọc Minh Châu 3 11181649 Đinh Thị Thu Hiền 4 11182283 Lại Ngọc Khánh Huyền 5 11182222 Nguyễn Quốc Huy 6 11183645 Lê Như Ngọc TABLE OF CONTENTS
PART I: MARKET ANALYSIS 3 I. Macro Environment 3 1. Social analysis 3 2. Legal analysis 4 3. Economic analysis 5 4. Political analysis 6
5. Technological analysis 7 6. Culture 8 II. Macro Environment 8 1. Industry rivalry 8 lOMoAR cPSD| 58794847 2. Suppliers 11 3. Substitutes 12 4. Potential entrants 13 5. Buyers 13
III. Competitive advantages of Vietnam 14 PART 2: METHODS 16
I. Exporting Methods: Export Modes - Direct Exporting 16
II. Advantages and Disadvantages of this entry modes 16 PART 3: MARKETING MIX 17 I. Products 17 1. Product lines 17 2. Packaging 19 II. Price 20
1. Production costs and product prices 20 2. Price policy 21 III. Place 26 IV. Promotion 28 PART I: MARKET ANALYSIS I. Macro Environment 1. Social analysis
Like most developed countries, America faces the problem of an aging population, which
might lead to a serious labour shortage and rising tax rates. As a result, unemployment rate rose due to Covid-19.
The education and healthcare system is one of the best in the world. But they are facing the
biggest disease Covid-19, which causes nearly 500.000 people to die, and prohibits people
from other countries from entering America.
Most of the population have a liberal mindset but rising racial intolerance is a serious
concern. Moreover, there’s an increasing illegal immigration that more than 11milions lOMoAR cPSD| 58794847
people are living illegally. This could lead to increasing the risks of racism. The worst
prospect could be a mass demonstration and then leads to riots. Let’s take
#BlackLivesMatter as an example. This event had shown that black people are not
respected and they’re suffering racial discrimination. In the end, it led huge street rallies
and high-profile campaigns against racism and police brutality.
In addition, Americans love their country and they’re proud of it along with their lifestyle.
This somehow could explain the Americans’ loyalty to Starbucks, one of their local coffee brands. 2. Legal analysis
The US is a highly regulated society. As such, people or enterprises those want to do
business in the US need to be aware of the many regulations, standards and guidelines that
may a ect the sale of their products or services.ff
United States is an extremely competitive marketplace that rewards efficiency, productivity,
and integrity while mandating rigorous compliance with the nation’s complex rules and
regulations. Federal, state, and local regulations require a thorough knowledge of tax,
commercial, and labor laws. Product liability -
Insurance for everyone in the distribution chain is absolutely critical to many
industries,such as food, cosmetics, toys and electrical equipment. -
Alternatively, it might be a requirement of your US vendor that you have
productliability insurance. In these instances you will have little choice but to seek
adequate coverage in order to protect yourself.
Restriction on foreign investment -
There are no substantial restrictions imposed by the federal government on
foreigninvestment in the United States. -
A few industries are, however, subject to restrictions— these include those
involvingthe exploitation of certain natural resources, communications, shipping, nuclear
and other power-generating facilities, and aviation. -
Some states have restricted certain foreign investments in certain cases, such as inagricultural land. -
The federal government, through the Commerce and Agriculture departments,
imposessubstantial reporting requirements for foreign investments in the United States. Consumer protection
- Federal and state laws protect consumers against a variety of unscrupulous business
practices. Several federal and state agencies are involved in consumer protection. - The
pertinent areas of consumer protection in the United States include consumer product lOMoAR cPSD| 58794847
safety, food and drug safety, product labeling, product liability, motor vehicle safety, and consumer credit safeguards. Intellectual property
- U.S. patent law remains the same regardless of the inventor’s citizenship.
- Patents are issued to individual inventors who can then license their rights.
- U.S. copyright protection follows “original works of authorship,” giving the
ownerexclusive rights to sell or reproduce their work. Immigration laws -
A nonresident alien who wishes to do business in the United States must consider
thenation’s immigration laws. -
The Immigration and Nationality Act contains the law relating to the entry of aliens
andis administered by the Department of Homeland Security. -
An “alien” under the immigration laws is any person who is not a citizen or national ofthe United States. -
Immigrants are aliens who seek to enter the United States on a permanent basis,
whilenon-immigrants seek admittance on a temporary basis.
3. Economic analysis
GDP of over $16.760 trillion, the US is the largest economy in the world. The economic
system is well-developed and gathers its strength from its services and manufacturing industries. GDP growth rate
Annually GDP growth rate: 2,9% (7.1% in VN)
US experienced a GDP decline of 5% in the first quarter of 2020, 31,4% in the second
quarter but managed to grow exceptionally by 33,4% in the third quarter of the year. Even
after the third quarter's rapid growth, GDP remains 3.5% in 2020 Q4. 2019 2020 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2.9 1.5 2.6 2.4 -
-31.4 33. 3.5 5.0 4 lOMoAR cPSD| 58794847 Inflation rate 2021 2.24% 2020 0.62% 2019 1.81%
This means that a product bought today for about 100 U.S. dollars will cost about 102.24
U.S. dollars next year, and so on. Considering the annual inflation rate in the United States
in recent years, a 2.24 percent inflation rate is a very moderate projection. Exchange rate
One US dollar is equivalent to roughly 23 thousand dong The labor market
The severe economic consequences of the pandemic have been especially visible in the labor market.
Since February, employers have shed nearly 20 million jobs from payrolls, reversing almost 10 years of job gains.
The unemployment rate jumped from 3.5% in February to 14.7% in April and then moved
down to a still very elevated 13.3% in May. The most severe job losses have been recorded
by those with lower earnings that represented among low-wage jobs. Financial stability
The COVID-19 pandemic has abruptly halted a large number of economic activity and led
to swift financial repercussions.
The Federal Reserve has also made several adjustments to its regulations to facilitate
market functioning and reduce regulatory obstacles to banks supporting households,
businesses, and municipal customers affected by COVID-19. 4. Political analysis
The United States has a strong political system and efficient rule of law, with elections that
are considered fair and open. The country enjoys tremendous political and economic
control over both national and global policy making, and is known as the world's leading
super-power. However, the country faces international criticism for its interventionist
policies regarding the ‘War on Terror’ which is souring foreign relations, and at the same lOMoAR cPSD| 58794847
time fueling terrorist groups, increasing the threat of terrorism. The American view has
been characterized by several familiar elements:
● LIBERTY: Most people believe in the right to be free, as long as another's rights aren't abused.
● EQUALITY: This generally translates as "equality of opportunity," not absolute equality.
● DEMOCRACY: Elected officials are accountable to the people. Citizens have the
responsibility to choose their officials thoughtfully and wisely.
● INDIVIDUALISM: The individual's rights are valued above those of the state
(government); individual initiative and responsibility are strongly encouraged.
● THE RULE OF LAW: Government is based on a body of law applied equally and
fairly, not on the whims of a ruler.
● NATIONALISM: Despite some current negative attitudes toward the government,
most Americans are proud of our past and tend to de-emphasize problems, such as
intolerance or military setbacks. This value includes the belief that we are stronger
and more virtuous than other nations.
● CAPITALISM: At the heart of the American Dream are beliefs in the rights to own
private property and compete freely in OPEN MARKETS with as little government involvement as possible.
Other countries may share some, or even all, of these beliefs and values. However, the
arrangement and subtleties of this core form an array that makes every political culture a
little different than all the others. The elements of the American political culture include
disagreement and debate. They include ideals, but they leave room for the reality of falling short of goals. 5. Technological analysis
The United States has a highly developed economy. This is a leading country in the
discovery and development of high-tech industries such as information technology, space
technology, automobile manufacturing, aircraft, and medicine. This is an important factor
that promotes the US economy to develop and achieve high productivity. On the other hand
the new technologies above provide the best quality products.
Meanwhile, the technology of Vietnamese enterprises is currently lower than that of
ASEAN and countries that have exported goods to the United States (China, Korea,
Taiwan, and India). ... The reason is outdated technology and equipment. It will be difficult
to modernize technology processes and improve product quality. lOMoAR cPSD| 58794847
In 2021, the United States was one of the countries most severely affected by Covid-19.
This is also a difficulty for technology development activities in this country. 6. Culture
Coffee is as much a part of American culture as are blue jeans and rock-n-roll. By the 18th
century, coffee had become one of the world’s most profitable commodities. For most
Americans, mornings begin with a cup of freshly-brewed coffee. Whether it is home-
brewed, from a tiny independent cafe, or some massively-popular coffeehouse chain, work
for most doesn’t start until they taste a cup of caffeine. Many Americans deeply associate
themselves with their custom-made coffee and favorite blends. Americans have created
many different coffee flavors from changing the amount of sugar, milk or coffee such as
Americano, Moca, Capuchino, Espresso ...
Cafes here are places of meeting friends and acquaintances, reading, or simply relaxing and
enjoying a cup of coffee. They can also bring laptops or tablets to work with the wifi
provided at the shop. Many customers come to Starbucks to experience the space here.
Like everything else, Americans prefer their coffees large, sweet, and unlike most coffee
blended either with water or milk. In addition, Americans are not too familiar with the
strong flavor of coffee like most drinks in Vietnam.
Time is tight in America, except for the once in a while on the rough weekend. Therefore,
the need of Americans is to have a delicious cup of coffee without spending much time
waiting. One can stop the car and go in the shop, buy a cup of coffee and then go out within
minutes and the coffee cup was still delicious. What they need is fast, cheap and still
without losing the true aroma of coffee. II. Macro Environment 1. Industry rivalry
1.1. The coffee market in the US
Demand for coffee in the market: The US is not only the leading economy in the world
but also the third country in the world in terms of population, after China, India, young
people make up the majority of the structured population. Most Americans have the habit
of drinking coffee and consider coffee as a very important drink in everyday life.
The United States is the largest coffee consumer and importer in the world, the United
States does not grow coffee, so all coffee consumed in the US is imported. The coffee
demand of this country is relatively stable every year over 1 million tons. However, due to
fluctuations in world coffee prices, the import value also changes. American coffee is light,
both color and taste. A light brown, slightly burnt-tasting liquid, usually mixed in a large
glass jar and poured into foam paper cups. Adding two or even three packs of sugar and lOMoAR cPSD| 58794847
half a glass of milk won't make the liquid sweeter and more fragrant. The popular way to
enjoy coffee in the US is Iced coffee - solid, hot coffee, adding sugar to a glass of ice.
1.2. Competitors of Trung Nguyen coffee in the US market
Products of Trung Nguyen and Vinacafe were sold at many Vietnamese and Asian stores.
The most popular products of Trung Nguyen in this market are Trung Nguyen coffee
powder and instant coffee G7. Trung Nguyen has taken steady steps in America, thanks to
the assistance of its American distributors.
Trung Nguyen coffee products are easy to find in American supermarkets. However, that
does not mean Trung Nguyen has gained significant market share there, because Trung
Nguyen consumers are mainly Vietnam and people of Asian origin.
Statistics show that consumption of Trung Nguyen coffee in the US is very modest
compared to the potential market. The US market is large with great demand for coffee, which is all imported.
The demand for coffee in the US is relatively stable, about 1 million tons per year. All
Vietnamese coffee brands in the US account for about 10% to 15% of the volume and less
than 6% of the value. In particular, Trung Nguyen does not have a large market share, with
annual modest export volume. In 2011, 1,400 tons of Trung Nguyen coffee were exported
to the US. In 2012, the figure slightly increased to 1,600 tons, mainly raw coffee.
In America, Trung Nguyen has to compete with not only Vietnamese coffee brands but also
many American coffee brands. According to a survey by the American Coffee Association,
local consumers favor Arabica coffee. Up to 70% of the coffee consumed in the US is
Arabica, imported from Colombia, Brazil, and Mexico. The 30% remaining Robusta coffee
is imported from Vietnam and Indonesia.
The US market is extremely difficult with strict regulations on tariffs and rules, so Trung
Nguyen’s development strategy in this market is a franchising model.
Franchising can be a wise choice of Trung Nguyen, but the company will have to solve
many problems, and the biggest one is direct confrontation with Starbucks.
1.3. Overview of Vietnam & US coffee market 1.3.1. Vietnamese market
Vietnam is the second-largest exporter in the world, after Brazil with a total export volume
in 2009 of 1.18 million tons, equivalent to 1.73 billion USD. Our country is a country with
coffee culture, but the amount of coffee used per person is only about 0.7 kg/person/year, lOMoAR cPSD| 58794847
much lower than the leading country Finland (11kgs/person/year). and compared with the
highest country in the region is Japan (3.3kgs).
According to IAM's research on coffee habits, 65% of Vietnamese coffee consumers drink
coffee seven times a week, in favor of men (59%). As for instant coffee, 21% of consumers
use instant coffee 3 to 4 times a week and slightly lean toward female consumers (52%).
The rate of coffee use at home (in-home) and outside (out of home) is equal 49%-50%. The
most common time to drink coffee is from 7-8 am. Coffee shops in Vietnam can be found
in every corner, popular and varied, creating the most convenient for coffee drinkers. 1.3.2. US market
The US is the world's largest coffee importer. Coffee consumption tends to decrease slightly
since reaching a peak of nearly 19 million bags in 1990. Consumption decreased slightly
at the end of 1994 due to a double increase in retail coffee prices. Coffee consumption in
2001 was 21.4 million bags, in 2002 increased to 21.7 million bags. The three largest coffee
processors in the US are Kraft General, Proctor & Gamble, and Nestle. Producers process
about 70% of the country's coffee.
Many small producers also began to operate to serve the market's need for premium coffee.
It is estimated that coffee only accounts for about 16% of the retail coffee market.
According to the winter poll results, 2001 by the American National Coffee Association
showed that only 2.7% of people interviewed drink this premium coffee every day.
However, the market share of this premium coffee is increasing and according to the
spokesman of these coffee makers, they believe that by the 21st century this coffee will
account for one-third of the coffee market. America.
America as well as other importing countries have re-exports. For example, in 2002, the
US imported a total of 21.7 million bags and re-exported 2.6 million bags (accounting for
12%). In particular, the US exports large amounts of roasted and instant coffee. In 2001,
the US imported 21.449 million bags of coffee beans and the US exported 2.485 million
bags of which roasted coffee and instant coffee accounted for 50%.
Comment on the US market compared to Vietnam: The young market, with great demand
for import and consumption, is very suitable for penetration and long-term development.
The American people use coffee as an important drink in their life. But in addition, to enter
the market, it is necessary to face many risks, difficulties, strong competitors, import
policies, coffee quality standards, strategies to deal with, customer retention policy, making lOMoAR cPSD| 58794847
a difference compared to current competitors, giving Trung Nguyen coffee a firm foothold
in the coffee market in the US. 2. Suppliers
The most important element of the coffee industry is the production of coffee beans. Special
conditions are required for the growth of the coffee bean. For this reason, the relationships
between coffee bean producers and major coffee suppliers are different.
Suppliers are very important in this market because all coffee retailers depend on coffee
bean producers. Coffee beans can be bought from different suppliers. However, there are
some major coffee bean producers in the world. The largest coffee suppliers in the world
are usually in Brazil, Vietnam, Colombia. Some major companies are applying to different
suppliers (table below). Some of them are constantly working with the same supplier.
Therefore, special relationships can be established with suppliers in this sector. Looking at
coffee bean producers in the world, it is understood that they spread over a very wide area.
The top producing nations each produce millions of kilograms of coffee beans that find
their way into the hands of eager consumers. These are the ten nations that the International
Coffee Organization (ICO) named the world’s top producers of coffee; Guatemala, Mexico,
Uganda, Honduras, India, Ethiopia, Indonesia, Colombia, Vietnam, Brazil. As you can see,
most production and sales executors are in Brazil. This country also distinguishes itself
from other coffee producing nations in that Brazilians process coffee with the dry process
(unwashed coffee), where the coffee cherries are dried in the sun rather than washed in a wet process. lOMoAR cPSD| 58794847
Pie chart showing the world’s 10 largest exporters of coffee by share of total export
Vietnam is the world’s second-largest coffee producer, has the best Robusta coffee bean
in the world, and has a long history of coffee culture enjoying hundreds of years. With
the desire to bring Vietnam’s coffee industry to a new level and raising the value of
coffee not only as a regular drink but also at the level of cultural coffee, Trung Nguyen
Group has spent time and dedication for many years to study the coffee philosophy. In
order to build a new position for Vietnam’s coffee industry in the world coffee map and
this journey, Trung Nguyen is a leading coffee producer, not only in Vietnam but
internationally. The company was established in 1996 and now exports to more than 60
countries around the globe, typically such as the USA, Canada, Russia, England,
Germany, Japan, and China. Trung Nguyen Legend is one of the most popular coffee
brands in Vietnam, with the largest number of coffee customers. 3. Substitutes
The number of substitute products for TN coffee is high, from machine coffee, tea, soft
drinks to alcoholic drinks. There’re several coffee stores, restaurants and fast food trolleys
selling these substitutes. Therefore, the threat of TN coffee substitutes is that they’re quick-
served, available all around the country and so familiar with Americans. Moreover, the
switching costs are negligible. For instance, the price for a TN coffee cup is 3$, buyers can
buy many other products at the same price, like 3.95$ for a Starbucks coffee cup. A big lOMoAR cPSD| 58794847
challenge to TN is customers’ loyalty to other substitute products. These factors make
substitute products a moderate to a big threat. On the other hand, there’re some factors that
moderate this threat to some extent.
TN would have a very competitive price in order to compete with other brands, especially
Starbucks. Moreover, TN is a quite familiar brand and they’re selling their products in
many convenient stores in Korea, EU...
TN sells different kinds of coffee products like grinded coffee, instant coffee with different
flavors such as black coffee, milk coffee, cappuccino. 4. Potential entrants
In America, Trung Nguyen has to compete with many new entrants coffee brands. Up to
70% of the coffee consumed in the US is Arabica, imported from Colombia, Brazil, and
Mexico. Trung Nguyen faces the moderate force or threat of new entry. The threat of new
entrants against Trung Nguyen are:
● The high cost of brand development ● Cost of doing business
● The difference in product/ service
American is a dynamic market with so many brands in each industry. It’s very hard and
costs much money and time to brand development to reach the level of strength of the
Starbucks brand. Meanwhile, Trung Nguyen also faces new entrants who have high capital
for brand development and marketing activities. The potential entrants can gain the market
share of Trung Nguyen based on their available resources. In addition, new entrants can
offer consumers coffee products with a new taste or difference in service. Currently, Trung
Nguyen has not captured much market share in the US market, so new entrants are also a
threat that can affect the business activities of this brand. 5. Buyers
Buyer power refers to a customer’s ability to reduce prices, improve quality. This potent
force can offer insight into existing operational tactics and strategies that directly drive
industry revenue such as pricing or consumer targeting.
Buyer power can be broken down into two primary buckets:
● Bargaining leverage: the measure of leverage buyers have relative to the target industry players.
● Price sensitivity: the measure of buyer sensitivity to changes in prices.
(+: positve effect; -: negative effect; =: neutral effect) lOMoAR cPSD| 58794847 Bargaining leverage Effect on industry Average Industry volume buyer High +
Average Industry purchase frequency High + Switching cost Low -
Information available to buyers Moderate = Substitute product High - Price sensitivity Effect on industry Buyer Industry profitability Moderate = Brand value Low - Product differences Low -
To sum up, US buyers’ power allows Trung Nguyen to easily penetrate the coffee market.
However, due to the over-saturated brands, consumers can switch products with ease.
Increasing brand recognition and value is crucial to long-term development.
III. Competitive advantages of Vietnam
Vietnam is a country with many competitive advantages for products, especially
agricultural products such as coffee: Nature
First of all, the natural climate. Vietnam is a country in the humid tropical climate, however,
the natural factors depend on the geography of each place. Therefore, only a few regions
in Vietnam can grow coffee varieties such as Tay Nguyen or Da Lat, or Dien Bien, Son La.
Different varieties of coffee can be influenced by factors such as temperature, precipitation,
humidity, amount of clouds, light, and especially the wind. For example, locations in
Vietnam that are suitable for growing coffee have an average humidity of 85% and
temperatures between 15 and 25 degrees Celsius. Geographical location: lOMoAR cPSD| 58794847
Vietnam is located in the Asia-Pacific region, this is a vibrant economic region in the world.
In addition, our country also has many important ports, international airports such as Noi
Bai, Tan Son Nhat, ... so it is very convenient for exchanges with surrounding countries.
Vietnam is also the gateway to the sea of some countries such as Laos, northeastern Cambodia, ... Labor source:
Besides, Vietnamese farmers have experience in farming and agricultural production. They
are also industrious, eager to learn and apply many new planting methods to diversify
agricultural products as well as improve the quality of crops. Besides, Vietnam owns a
young population, so the labor force for all sectors is abundant. This will also be a major
source of consumption for agricultural products.
Politics and economic capital
Thirdly, the Vietnamese government has a lot of policies to support farmers, at the same
time, they also care about and invest in many aspects of farming and agricultural
development. Besides, Vietnam is an open economy with a stable political system. After
Vietnam joined the World Trade Organization WTO, the export and import volume
increased more strongly. At the same time it also attracts foreign investment. The infrastructure:
Vietnam has traffic works, irrigation works, electricity networks, ... invested and built to
serve people's lives as well as cultivation and production activities. Communication
systems are also very convenient. Science Technology:
Vietnam has applied many high-tech methods in breeding, watering, and fertilizing
activities to increase quantity and quality of coffee beans. Technologies applied to
processing and preserving activities are also increasingly enhanced to increase the value of
domestic agricultural products. Market and customer tastes
With a large population and the need to use large coffee products, this will be an opportunity
for brands to find sources of consumption of their agricultural products. In addition,
customers in Vietnam have a coffee drinking culture and like to go to coffee shops.
Currently, the consumer market is divided into two segments: roasted coffee and instant
coffee. Coffee shops are also opened a lot from small towns to big cities to meet the consumer needs of customers. lOMoAR cPSD| 58794847
To sum up, Vietnam has strong national competitiveness in the production of agricultural
products. This is reflected in Vietnam's leading position in many different products. Each
year, Vietnam exports more than 30 billion USD of agricultural, forestry and aquatic
products. Typical examples are: rice, tapioca, coffee, pepper, cashew. All Vietnamese
agricultural products are of higher quality than the average in the market, although the
uniformity of the product is not really standard. Vietnamese agricultural products need to
be adjusted to improve quality, meet high demand in countries around the world and can set higher selling prices. PART 2: METHODS
I. Exporting Methods: Export Modes - Direct Exporting REASONS:
● The US market is one of those places where change constantly and volatility takes
place. Therefore, direct export helps the company capture market movements
quickly and continuously to proactively respond.
● Coffee bean is a product that needs to be stored under certain conditions. So if not
transported directly, last for long time, can affect the quality of the coffee beans.
● Selling through agents and distributors makes it easy for the company to find
customers and orders in new markets.
● The direct export is also supported by the State with preferential policies such as
investment credit policies, export credit, trade promotion as well as policies to
support research and development.
In the US market, this is one of the leading markets in the world, along with the cost
that the company has to pay third parties in the US will certainly be higher than other
countries. Therefore, Trung Nguyen should choose to build a branch and export the
next axis that will save a lot of costs.
II. Advantages and Disadvantages of this entry modes Advantages Disadvantages lOMoAR cPSD| 58794847 ● ●
TN has direct contact with foreignbased TN has to compete with other
agents and distributors, therefore they principals handled by agents,
can get information of local buyers’ ● needs and hobbies.
Different goals and strategies between
distributors and Trung Nguyen as the
● More control over the product: Trung
company wants to promote the brand
Nguyen owns the rights to decide the
but distributors only care about making
price and terms of sale according to the profit.
competitive trend prevailing (marketing ●
mix) in the foreign market (with the
Relationship between 2 sides is not agents).
ensured and can easily be ended ● (distributors).
Shorten market penetration time: as ●
agents help finding potential customers Overdependence on distributors, for the company.
therefore, when the functions of the
● Avoid time and cost of market research ● distributors are not efficient, they may
and marketing, promotion, sales team land the company in trouble.
as agents and distributors have already
penetrated the market through an
Can't communicate with end users or
respond to their feedback as fast as local
effective distribution network. brands.
● Shorter channel in comparison with
indirect exporting: avoids the margin
taken by unnecessary middlemen. It
leads to a lower price for the ultimate consumers. PART 3: MARKETING MIX I. Products 1. Product lines
Americans prefer coffee with sweetness and light bitterness, which also could be easy-
toprepare and take-away. Therefore, TN will concentrate on selling instant coffee.
Specifically, G7 instant coffee with light flavor and Fresh coffee are the main products. lOMoAR cPSD| 58794847 G7 instant coffee
G7 was the first instant coffee to be extracted directly from the unroasted coffee bean, not
from freeze-dried brewed coffee like American brands. It's been the top instant coffee in
Asia ever since its creation in 2002.
● G7 2in1: Vietnamese traditional black coffee. It has a strong flavor of roasted and
ground coffee, suitable with people enjoying strong-flavor coffee. ● G7 3in1: sweet
and rich taste with light brown color.
● G7 Cappuccino: prepared in Italian style, combining cream powder and other high-
end ingredients, plus the unique secret of TN. It has 3 additional flavors in G7
Cappuccino: Hazelnut, Irish Cream, Mocha.
● G7 Cappuccino - Hazelnut: flavor of chestnuts and fine coffee of the Buon Ma Thuot region.
● G7 Cappuccino - Irish Cream: Liqueur wine faintly, sweet creamy aroma mixed with fresh coffee essence.
● G7 Cappuccino - Mocha: combination between the rich chocolate flavor and the
essence of the finest coffee beans.
● G7 Passiona: low caffeine, antioxidants, oriental herb, collagen supplement and sugar diet. Fresh Coffee
This product line is pure coffee juice made right in the world's best Robusta raw material
area, with advanced processing technology - Dual - Dual vacuum extraction technology
and concentrating technology. The product is packaged in a 500ml bottle with a compact,
lightweight design, easy to open, use within 7 days (after opening and keeping cold). Due
to its bottle packaging, customers can easily take it away and use it at any time; which is
very convenient when using or buying huge amounts. Additional product
● The coffee market in America that TN is entering has not only Americans but also
Vietnamese and Asian. Therefore, Vietnamese traditional coffee with strong flavor
like Weasel Coffee and Roasted and Ground coffee for dripping are sold as well.
● Cups, personal bottles, “Phin” filters with the brand logo on the package. lOMoAR cPSD| 58794847 2. Packaging
As each country has a different culture, and TN is a Vietnamese traditional coffee brand, it
could be difficult to reach the standard of American coffee products. The process takes time
and needs to be adjusted regularly.
Focusing on designing packaging design plays an important role in introducing products.
For the US consumers, the majority likes bright color packaging with captured images. It
must be convenient for consumers and attractive enough to be differentiated from other brands.
Each product line should have a different design compared with others. Product Materials Theme Information G7 2in1, 3in1 - Ingredients OPP/MPET/
Black and Red color: Luxurious and - Brand PE packaging powerful feelings, show the name metaphoric image of the sun rising on the Tay Nguyen - Logo mountain. - Quality Certification G7 Cappuccino
Light brown color: the sweet - Contact - Hazelnut taste of Italian coffee and - Net weight coziness of a warm cup of - Instruction coffee. - Preservation- G7 Cappuccino Manufacture
White color with an image of a - Irish Cream factory
cup of art coffee: the color of - Short
Irish cream liqueur brings description of the elegant and modern feelings. company G7 Cappuccino Dark yellow/ gold color: the - Mocha combination of two colors:
brown of chocolate and white of
milk. It gives the feelings of a
warm mocha coffee cup in Italy. lOMoAR cPSD| 58794847 G7 Passiona
Pink pastel color with an image
of a slim woman: the pink color
represents girls. As this product targets women and has a collagen supplement and sugar
diet, a young and slim woman is the image. Fresh Coffee Plastic
Yellow color of sunflower and a Bottle/steel cup of iced coffee: yellow can
represents youth, happiness and cheerfulness. A cup of iced coffee illustrates the huge
energy we get from the product. Keeps the original design Weasel Coffee, Roasted and Ground coffee for dripping Cups
Ceramic/glass - Monochrome color with brand Standard coffee cup logo for - “Trống Đồng” pattern each packet with brandlogo Personal bottle Inox - Vintage pattern 12-16-20 Oz bottles Phin Filter II. Price
1. Production costs and product prices
The cost of Vietnam's export coffee production is lower than that of other exporting coffee-
growing countries. The average cost of Vietnam in the 2014-2015 season is 650700 USD /
ton of coffee beans. If including processing costs, the cost per ton of coffee exports is 750-
800 USD. Meanwhile, the production cost of India is 1,412 million USD / ton of coffee
and tea, 926.9 USD / ton for Robust Coffee.
The available resources not only help our country maintain a large and stable coffee output
but also reduce a lot of production and export costs, thereby reducing production costs to
help Vietnam compete on price. to other countries around the world. Meanwhile, compared