G
ACADEMY OF POLICY AND DEVELOPMENT ASIGNMENT
PRINCIPLES OF MARKETING
Task: “To design a marketing strategy for a company/ brand of
your choice for a specific market” (3500 words)
LECTURER: MRS. NGUYEN THI BICH NGOC STUDENTS: STUDENT NUMBER: HO NHAT HUY 7123106545 NGUYEN THU HOAI 7123106542 PHAM TOAN DINH 7123106527 LAI DUC QUY 7123106583 DINH LONG HAI 7123402508 CAO TUE THANH 7123106502
CLASS: PRINCIPLE OF MARKETING 02
INTERNATONAL SCHOOL OF ECONOMY AND FINANCE HA NOI - 2023 1 Contents
A.Introduction........................................................................................................................................ 2
I. Business Overview........................................................................................................................... 2
III. Reputation & Sucesss.................................................................................................................... 3
B. Pestle and Competitors analysis.........................................................................................................3
I. PESTLE ANALYSIS.............................................................................................................................. 3
II. COMPETITORS ANALYSIS................................................................................................................. 4
C. MARKET SEGMENTATION, TARGETING AND POSITIONING.................................................................5
I. MARKET SEGMENTATION................................................................................................................ 5
II. Target.............................................................................................................................................. 6
III. Positioning..................................................................................................................................... 6
D. GENERAL STRATEGY & COMPETITIVE ADVANTAGE............................................................................6
I. Bring the product closer to the retail market..................................................................................6
II.Competitive advantage....................................................................................................................7
E. MARKETING MIX................................................................................................................................. 7
I. Product............................................................................................................................................ 7
II.Pricing.............................................................................................................................................. 7
III.Promotion...................................................................................................................................... 8
IV.Places.............................................................................................................................................. 8
F. CONCLUSION....................................................................................................................................... 9
G. REFERENCES....................................................................................................................................... 9 A.Introduction (Huy) I. Business Overview
Highlands Coffee is a well-known coffee brand in Vietnam, established
in 1998 by two Vietnamese-American entrepreneurs David Thai and Johnny 2
Adamic. With the combination of the distinctive taste of Vietnamese coffee
with modern Western style, Highlands Coffee has quickly become one of the
most beloved and trusted coffee brands in Vietnam.
Highlands Coffee serve a wide range of coffee-based beverages,
promote Vietnamese coffee culture, and offer franchising opportunities.
Highlands Coffee focuses on social and environmental responsibility,
supporting local farmers and sustainable sourcing practices. .
Vision: Become the most beloved coffee and tea brand in Vietnam and
proudly share it with the world.
Mission: The mission of Highlands Coffee is to achieve the top position
in terms of Vietnamese coffee flavors and modern café style, offering
reasonable prices and being ready to serve all customers anytime, anywhere.
1. Value proposition: Highland Coffee focuses on providing a high-quality
coffee experience, using carefully selected Arabica coffee from
renowned coffee-growing regions around the world. They create a
comfortable and cozy space for customers to relax and enjoy their coffee.
2. Target customers: Highland Coffee targets customers who appreciate
and value quality coffee. This can include young customers, workers,
students, or other customer groups with a desire for coffee enjoyment.
3. Distribution channels: Highland Coffee has a network of coffee shops
across major cities and shopping centers in Vietnam. Additionally, they
offer delivery services and accept online orders to reach customers conveniently.
4. Customer relationships: Highland Coffee establishes customer
relationships by creating a comfortable environment and delivering
professional service. Their staff is trained to provide the best service and
foster positive communication and interaction with customers.
5. Revenue sources: Highland Coffee's main revenue comes from selling
coffee and other beverages, including hot coffee, iced coffee,
cappuccino, latte, and various other drinks. They also offer additional
products such as pastries, bread, and snacks to generate additional income.
6. Cost structure: Highland Coffee considers costs related to coffee shop
operations, including rent, coffee bean procurement, staff expenses,
marketing, and advertising, as well as other support costs. 3 III. Reputation & Sucesss
The company has expanded its presence beyond Vietnam and has
opened stores in various international locations, including Laos, Cambodia,
and Singapore. Highlands Coffee is the leading coffee chain in Vietnam, with
over 430 outlets across the country. The brand has received numerous awards
and recognition for its contribution to the coffee industry in Vietnam. IV. Product
B. Pestle and Competitors analysis (Hoài) I. PESTLE ANALYSIS 1. Political
The legal system of our country has policies to protect legitimate rights
and interests and many policies to support the development of coffee
resources, creating great conditions for domestic businesses to develop. 2. Economic
Vietnam's coffee market is wide, our economy has grown over the years,
creating conditions for further enhancing and development
Consumers' income increases in proportion to their demands, which
makes the coffee business more opportunities 3. Sociocultural
The trend of drinking coffee is becoming more and more popular, and
many cafes have sprung up to serve different customers. For the coffee
industry, a market with a large population and a habit of drinking coffee as
much as Vietnam, this is a potential market 4. Technological
National standards for coffee were fully set up to form a basis for market
transactions. Moreover, the technology of instant coffee is updated in Vietnam.
Easily access technology, import more modern equipment, improve quality and productivity 5. Legal 4
Relevant laws that Highlands Coffee needs to comply with such as
Investment Law, Enterprise Law, Labor Law, Antitrust Law, Anti-Dumping Law... 6. Political
Modern technological process of waste treatment meets permissible
standards. The production process is also strictly controlled to ensure food safety and hygiene. II. COMPETITORS ANALYSIS 1. The coffee house Taste
Both have a common element in their beverages, which is tea and
coffee. However, the coffee at The Coffee House is milder and less robust
compared to the coffee at Hinglands Coffee. Strength and weakness
Strengths: The Coffee House targets more affordable markets, attracting
a larger customer base. Weaknesses: It does not have as wide of a coverage as Highlands Coffee. 2. Nescafe Taste
With a creative blend of light brown hues, subtle aroma, slightly bitter
taste, and bold flavor, this coffee line is suitable for a wide range of users,
especially those who prefer a mildly bitter coffee. It comes at an extremely affordable price point. Strength and Weakness
Strengths: Popular and high reputation worldwide Weaknesses:Nestle
indeed has a wide range of products, and this particular product is not their main focus. 3. Boss Coffee
Strengths: Popular in Japan market Weaknesses: This product is a
newcomer to the market, so it is not widely known yet. 5
C. MARKET SEGMENTATION, TARGETING AND POSITIONING (Định) I. MARKET SEGMENTATION 1. Market Segmentation
Highlands Coffee can target customers living in major urban centers
such as Ha Noi, HCM city, Hai Phong, Da Nang, Can Tho, etc.
These customers often have a fast-paced lifestyle and may seek take-
away coffee options for convenience during their daily commutes or busy schedules.
2. Demographic Segmentation
Highlands Coffee can focus on targeting young professionals and
working adults (20s to 40s) who embrace a fast-paced lifestyle and seek for a quick coffee fix.
This segment values the combination of convenience and a positive
coffee-drinking experience while being on the move.
3. Behavioral Segmentation
Offering introductory promotions, discounts, or complimentary items to
incentivize trial and encourage first-time visits.
Highlands Coffee can also focus on customers' digital behaviors, such
as engagement on social media, online reviews, or mobile app usage.
It helps identify tech-savvy customers who are likely to respond well to
digital marketing efforts, personalized mobile app experiences, or targeted
social media campaigns. Highlands Coffee can engage with this segment
through targeted digital advertisements, exclusive app promotions, or influencer collaborations.
4. Demographic Segmentation
Highlands Coffee can position itself as a brand that embraces
Vietnamese culture, offering traditional Vietnamese coffee brewing methods,
cultural decor, and incorporating local ingredients in specialty drinks. 6
Highlands Coffee can appeal to individuals who prioritize organic and
sustainably sourced products. Offering organic coffee options and
environmentally friendly practices can resonate with this segment. II. Target
Based on the market segmentation, Highlands coffee can target young,
urban, on-the-go individuals who value convenience and quality in their
coffee. The target market can also include frequent coffee drinkers who are
looking for a more convenient way to enjoy their favorite coffee. III. Positioning
Highlands coffee can position itself as a premium, convenient and
quality coffee option for busy individuals who lead a fast-paced lifestyle
Consider itself as an innovative and forward-thinking brand by being
one of the first in the Vietnamese market to offer coffee in a can.
D. GENERAL STRATEGY & COMPETITIVE ADVANTAGE (Hải)
I. Bring the product closer to the retail market
First up is direct distribution, highlands coffee has more than 300 stores
spread around the world so we own a large number of manufacturer-owned
stores that will sell directly to customers.
Another Channel that calls key accounts includes restaurants, hotels, and
schools, these units directly order from Highland coffee producers. Next, with
indirect distribution, we have 3 main channels of operation.
Next, with indirect distribution, we have 3 main channels of operation.
The first channel is big supermarkets like big c, metro, Aeon Mall,...
Will order directly with Highland coffee producer .
The second channel is the manufacturer's representatives or sales
branches. The essence of this channel is that highland coffee manages its
distributors through the requirements of responsibilities and obligations of both parties.
There will be a requirement for the number of points of sale and the
number of sales staff, in each region the number of distributors is located 7
depending on the size of the customer. Distributors will operate on their own
scale and deliver goods to wholesalers and local convenience stores.
The third channel is wholesalers will source more goods directly from
highland producers and then resell them to small local grocery stores or online
retailers. We also sell online using e-commerce platforms such as Shopee,
Lazada,... and sell through the company's own website. II.Competitive advantage
Highland is a brand that has existed for a long time and has existed for
more than two decades in the Vietnamese market and around the world. From
the first days of launch, the management stages are strictly controlled to help
build a professional image in the eyes of customers.
Highland Coffee's drinks are suitable for Vietnamese tastes, especially
coffee. Unlike other coffee brands in the world (such as Starbucks), Highland's
coffee has a rich flavor. The coffee beans are also carefully selected by hand,
so the quality is always guaranteed.
Compared with canned coffee brands on the market such as Nestcafe,
Birdy, The coffee house. Highland Caffee is more familiar to young people and
office workers. Creating such a brand image makes choosing to buy coffee
from Highlands coffee make me feel more young and energetic than buying coffee from other brands. E. MARKETING MIX (Quý) I. Product
Highland Coffee’s milk coffee can is a refreshing beverage that brings
energy to the consumers to stay awake and focused during the day. The product
is packed in a small box with a volume of 185ml and large cans of 235ml 6
cans of 1 batch. The unique thing about this product is made from selected
coffee beans, blended with milk and heavy cream. Unlike other coffee brands,
Highland's coffee has been mixed between 2 types of coffee beans: arabica and
robusta, which creates a gentle taste, leave a mark but is also not picky about drinkers.
With a compact, ergonomic design, the consumers will not have to
spend too much time making a cup of coffee themselves. The brand name has
been promoting it as a product to be used at any time, anywhere including
during school, work, sports, or community activities. 8 II.Pricing
In Vietnam, Highland's canned milk coffee is sold with prices ranging
from 76000 VND. This is a mid-range price, suitable for the spending level of
employees, students, and students. This price is also not too expensive or too
cheap compared to canned coffee products on the market such as Birdy and
Nestle. Highland also regularly has preferential sales seasons with attractive
prices or maybe lower than the market price to attract customers when they
want to enjoy a delicious and convenient cup of coffee.
This price is also not too expensive or too cheap compared to canned
coffee products on the market such as Birdy and Nestle. Highland also
regularly has preferential sales seasons with attractive prices or maybe lower
than the market price to attract customers when they want to enjoy a delicious and convenient cup of coffee. III.Promotion
Canned milk coffee is suitable for everyone, from middle-aged to young
adults, public employees to students and students. For the product to reach a
wide range of users, Highland has displayed signs and posters advertising
products directly at the store, across systems and retailers. The brand has also
used social platforms (Instagram, YouTube, etc.), especially Facebook with
more than 1.1 million people to be able to promote products in the widest way.
Recently, Highland also launched a new campaign called
"#breakfastwithhighsland "How complete is the morning without a rich glass
of Iced Milk Coffee?" The brand wants to target the habit of consuming coffee
for breakfast of customers. In addition, Highland also attracts customers to its
products by inviting KOLs, and celebrities to promote its products.
As a big brand, however, Highland cannot ignore promotions, on the
contrary, it also launches attractive promotions such as buy 3 get 1 free, buy 1
get 2, or the company's preferential deals combined with e-commerce
platforms such as shoppee, lazada, TikTok shop, etc. IV.Places
Highland now has more than 300 stores covering 24 provinces in
Vietnam. The brand is mainly concentrated in big cities and central districts –
where there is a high population density and convenient transportation system.
Highlands pays great attention to the quality of the premises.Often
Highland's premises meet the criteria: have space, beautiful viewing angles, 9
near famous gatherings, in malls, near the crossroads, population density and
convenient transportation system.
In addition to the fact that consumers can easily buy products in
Convenience stores (Circle K), Supermarkets (Winmart), Hypermarkets
(BigC), vending machines, and retail locations near schools, offices, or tourist
areas. They can also find products through beverage shipping agencies such as Baemin, Grab,... F. CONCLUSION (Thanh)
Highlands Coffee is doing well on its mission in the Vietnamese market.
However, the potential drawbacks or negative aspects of drinking coffee
include caffeine dependency, sleep disruption, potential health concerns with
excessive consumption, tooth discoloration and staining, acidity-related
digestive discomfort, and dietary considerations due to additives. It's important
to be aware of these factors and practice moderation when consuming coffee to
promote a healthier relationship with the beverage.
The provision of plastic utensils and nylon bags has caused controversy
and impacted the company's brand image. The business activities of its parent
company, Viet Thai, have also had a significant influence on Highland Coffee.
However, the company has started to stabilize its revenue and make efforts to address these weaknesses.
In conclusion, a strong marketing strategy is crucial for the success of
Highlands Coffee. It involves understanding the target audience, emphasizing
unique selling points, and utilizing both traditional and digital marketing
channels. Key elements include a compelling brand story, highlighting quality
and flavors, and showcasing sustainability. Building customer relationships,
monitoring effectiveness, and staying adaptable are also important. A well-
crafted strategy drives brand awareness, customer acquisition, and long-term
loyalty in the competitive coffee industry. G. REFERENCES
"Highlands Coffee và hành trình 20 năm để niểm tự hào đất Việt vươn xa" retrieve from
https://vnexpress.net/highlands-coffee-va-hanh-trinh-20-nam-de-niem-tu-hao-dat-viet-vuon- xa-4025338.html
"Highlands Coffee tự hào sinh ra từ đất Việt, 1999" retrieve from 10
https://www.highlandscoffee.com.vn/vn/highlands-coffee-tu-hao-sinh-ra-tu-dat-viet- 1999.html
"Tổng hợp các sản phẩm của Highland Coffee đang kinh doanh" retrieve from
https://www.bachhoaxanh.com/kinh-nghiem-hay/tong-hop-cac-san-pham-cua-highland- coffee-dang-kinh-doanh-1403590
"Điểm mạnh điểm yếu của Highland Coffee: Phân tích chi tiết" retrieve from
https://www.cooked.vn/post/diem-manh-va-yeu-cua-highland-coffe "ORIGIN" retrieve from
https://www.highlandscoffee.com.vn/en/origin.html
"Đối thủ cạnh tranh của Highlands Coffee" retrieve from
https://brademar.com/cac-doi-thu-canh-tranh-cua-highlands-coffee/ 11 12