MARKETING REPORT
Business name: Highlands Coffee
Student Identifier: Lawson Huynh - A00061259
Subject code and name: MKT101A - Marketing Fundamentals
Date of submission: 11/12/2021
Facilitator name: Mark Veiga Table of Contents
I. INTRODUCTION...........................................................................................................3
II. TARGET MARKET PROFILE..................................................................................3
1. DEMOGRAPHIC......................................................................................................................3
2. GEOGRAPHIC ………………………………………………………........................................................3
3. PSYCHOGRAPHIC…................................................................................................................3
4. BEHAVIOURAL ELEMENTS………………………........................................................................3
III. POSITIONING STATEMENT................................................................................4
IV. MARKETING MIX...........................................................................5
1. PRODUCT..................................................................................................5
1.1 Core products Highlands Cofee offers................................................................5
1.2 Supplemental features that Highlands Coffee offers........................................................5
1.3 Symbolic or experiential benefits...................................................................................5
1.4 The product portfolio............................................................................................................5
2. PRICING STRATEGIES.........................................................................................................6
2.1 Customer value-based pricing ........................................................................................6
2.2 Cost-based pricing .......................................................................................................6
2.3 Competition-based pricing ..........................................................................................6
3. PLACEMENT.................................................................................................6
3.1 Specialty Store.......................................................................................................6
3.2 Locations..........................................................................................................6
4. PROMOTIONS......................................................................................................6
4.1 Social events......................................................................................................6
4.2 Promotional activities............................................................................7
4.3 Highlands Coffee website...............................................................................7
V. RECOMMENDATIONS....................................................................7
1.RECOMENDATIONS FOR PRODUCT....................................................................8
2. RECOMENDATIONS FOR PRICE....................................................................8
3. RECOMENDATIONS FOR PLACE....................................................................8
4. RECOMENDATIONS FOR PROMOTIONS....................................................................8
VI. REFERENCES....................................................................8 I. INTRODUCTION
Highlands Coffee is a popular brand in Vietnam. This brand is well known because of their Coffee. It was
established in Hanoi by David Thai- a Vietnamese American in 1998. In 1990s, the company's founder
saw the development of the Starbucks coffee which was begun from a small company in Seattle to a
global corporation. So, he wanted to create a brand’s coffee like this. In 1998, Highlands Coffee was established.
II. TARGET MARKET PROFILE 1. DEMOGRAPHIC
Age ranges: the age from 15 to 64 years carry 68,94 per cent of the whole population in Vietnam
(Vietnam: Age structure from 2010 to 2020) which is the main target of Highlands Coffee.
Highlands Coffee's target customers are the middle class, office workers, and energetic young people,
who believe that drinking coffee from a prominent coffee brand helps them establish their social
position. Highlands Coffee also focuses on establishing a welcoming and engaging environment for
consumers to drink coffee on a daily basis. As a result, this is an ideal location for office workers who
seek a quiet, less opulent setting in which to meet up with friends and have coffee and Western-style pastries. 2. GEOGRAPHIC
Highlands Coffee offers two distribution channels: direct in-store and indirect via the Highlands Coffee
smartphone application. Highlands Coffee is at an ideal location to attract a large number of individuals
who are Highlands Coffee's target customers. The city center, river view, commercial building or
supermarket/hypermarket, and office building are all criteria for selecting a location/site. 3. PSYCHOGRAPHIC
Expectations form at the pre-purchase stage of a service and have a significant impact on customer
satisfaction ratings. Highlands Coffee is consistently regarded as a high-quality coffee establishment. As a
result, customers who pick Highlands frequently have a preconceived notion of the coffee shop.
Highlands has also done a fantastic job with marketing messaging. Customers learn about Highlands by
word of mouth, blogs, publications, and television appearances. Because of the high level of service, it
helps to create a highly positive image in the minds of customers. All those things contribute to enhance
customers’ expectation regarding Highlands’s service performance. Before they come to this coffee shop,
they expect to receive good drinks, affirm their status and enjoy a quiet space for relaxing or talking to their friends. 4. BEHAVIOURAL ELEMENTS
Highlands coffee will provide customers with exact sensations when they drink coffee since it is made
from the best coffee beans. By integrating the quintessence of the contemporary world with the lovely
and traditional traditions of Vietnam, they stand out from other coffee shops.
Highlands, in particular, provides guests with a comfortable, happy atmosphere, a warm manner of
service, a kind grin, and eager employees.
Because coffee shop services are high-contact, there is a lot of interaction between the supplier and the
consumers. If a customer has a problem or a complaint, the majority of them will be resolved in person.
As a result, there is an impact for Highlands Coffee in terms of establishing a competent team to tackle
challenges that arise from time to time.
III. POSITIONING STATEMENT
Interviewing customers in Highlands Coffee shop and collecting judgments from many forums, we found
out that in customer’s mind, Align offers a rendezvous, a good coffee and a beautiful view. Located at the
first floors of Asian Tower, Highlands Coffee is an ideal place for officers coming during their time break
or even for business meeting. During our interview time we also took notice that nearly half of the
customers were the youngster, which is rare comparing to other Highlands coffee shops. Phong, a young
customer explained that because this Highlands coffee shop is located on the centre of the city, it would
be more convenient to him to meet his friend here. The supplementary services such as toilet, music and
food are also highly rated (Foursquare, 2012)
However, there are many complaints regarding to the service quality at Highlands coffee 6 Nha Tho,
mostly about the long waiting time or the noise. “The serving is too slow”, “I normally have to wait about
half an hour to enjoy my coffee”, “This place has the most annoying blender machine on earth”, said the
customers. From some information from customers that the reporters collected during the shop visit and
websites, it can be seen that Highlands Coffee shop is really a special coffee shop to customers, since
they offers high quality core product to customers and has the variable supplementary services; however
they needs to professionalize the staff to build better image on customers’ mind.
Highlands Coffee Shop positions itself as a high price, high quality coffee shop. The shop owners want to
emphasize that, the high price means high service quality as well. Since customers are enjoying a more
special service, so they should also pay a higher price for what they are getting. IV. MARKETING MIX 1. PRODUCT
1.1 Core products Highlands Coffee offers: Coffee drinks
Having a coffee drink is the fundamental and basic reason that most of customers may think of when
they make up their mind to spend some time in the Highlands Coffee shops. Therefore, the coffee drink
is the core product that Highlands Coffee provides though there are additional features and services that
are attached to the coffee drink that make the coffee drinking become an excellent customer
experiences. Highlands Coffee has been investing greatly in its core product which supports its core business.
1.2 Supplemental features that Highlands Coffee offers
+ Supplemental features refers to the inclusion of additional features, benefits, attributes or related
services that serve to differentiate the product from its competitors. For Highlands Coffee, it provides a
vast number of customers oriented services to increase the value and attractiveness of the core products
offering to the customers. One additional service is the WiFi access which is provided in the many of the
Highlands Coffee shops as a courtesy to the customers and using the WiFi connection as a way to attract
the customers especially those young customers who could not be disconnected from their social world.
+ The most updated part of Highlands Coffee is the Delivery. Customers do not need to go to the stores
and get some coffee and instead, the only thing to do is calling the hotline and then grasp a cup of Ice Blended Freeze easily.
1.3 Symbolic or experiential benefits
+ Quality is one of the marketing tools. Highlands Coffee always aims at performing the best service
quality to customers. Highlands Coffee is running its business very well is one of the top coffee stores in
Da Nang. There are more and more loyal customers coming to Highlands Coffee for its service and
beverage quality. It only purchases coffees that have been grown and processed by suppliers who meet
strict environmental, social, economic, and quality standards. Highlands Coffee is well-known for its
exceptionally high quality coffees, care in selection, and expertise in roast
+ Highlands Coffee combines its merchandizing strategy with its marketing programs to create and
reinforce a distinctive brand image for its coffees. The company's brand image strategy is reflected in its
product mix, producing, and sales and educational materials. What Highlands Coffee stands for is a good
cup of fresh coffee and the recognized brand.
1.4 The product portfolio
Highlands Coffee has about a dozen different products in its coffee product line. Each of these items is
promoted as distinctive, although they share the same distribution channels and similar manufacturing
facilities. Highlands Coffee offers 4 different product lines (espresso, freeze, other drinks and food).
Length of product mix refers to total number of products in a product line. Under the category of
espresso, Highlands Coffee is offering espresso, latte, cappuccino etc. This is called length of product mix.
If different variants of one product are offered by one firm in the market, it is called depth of product
mix. Variants can be of any type like size, color, shape, fragrance, etc. When we come to Highlands Coffee
stores, we can choose size of cup we want such as S, M, L. 2. PRICING STRATEGIES
2.1 Customer value-based pricing
Highlands Coffee sets the price that depends on customers’ perception of value. The company attracts
their customers by providing products with high quality and professional service. In addition, Highlands
practices Good-value pricing, specifically high-low pricing, by having frequent sales days, value
promotions such as “buy 1 get 1” to offer the good quality at a fair price. 2.2 Cost-based pricing
Highlands Coffee practices Cost-based pricing for their produce and selling with Fixed costs and Variable
costs: Fixed costs: bills for rent shop space, employee salaries... Variable costs: materials which are from
oversea market such as peach, matcha... and other materials: milk, plastic glasses, straw, spoon... With
the high cost of materials, Highlands must set the price that can cover the cost and have an extra profit for the company.
2.3 Competition-based pricing
In comparison with other competitors in Vincom such as Caracoli Café, Bumba Milktea... the price of
Highlands Coffee is approximate but Highlands gives superior value, especially high quality of coffee and
exciting atmosphere. Customers can perceive that value and the company can charge a higher price. 3. PLACEMENT 3.1 Specialty Store
Highlands Coffee is considered as a specialty store carrying a narrow product line within an assortment
on coffee products. Since 2002, the chain shop has developed increasingly and opened over 100 stores in some big cities. 3.2 Locations
Highlands Coffee' strategy for expanding its retail business is to increase its market share in existing
markets and to open stores in new markets where the opportunity exists to become the leading
specialty coffee retailer. In support of this strategy, the company opened above 100 new. Highlands retail
stores are typically located in high-traffic, high-visibility locations. 4. PROMOTIONS 4.1 Social events
Highlands Coffee takes part in social activities positively. Besides, they funded for the charity programs,
the sporty events and culture events. Some grants program of Highlands Coffee: Hanoi Run for Children
(HRC), Saigon Cyclo Challenge, Soccer for the streets, Terry Fox Run, International Charity.
4.2 Promotional activities
+ Highlands Coffee bring for their customers the program called "Buy 1 Get 1 Free” at all Highlands Coffee in the system.
+ Freeze at only 49.000 VND Since April 2015, all Freeze-aholic would have chance to enjoy a Freeze at only 49,000 VND.
4.3 Highlands Coffee website
Highlands Coffee has the official website: http://www.highlandscoffee.com.vn/vi/home. Customers can
access to this address and get information anytime, anywhere. Fan page of each Coffee Shop is helpful to
update their new product, discounts, promotional activities. V. RECOMMENDATIONS
1.RECOMENDATIONS FOR PRODUCT
Highlands Coffee offers a clear competitive edge in terms of quality, especially when compared to other
generic coffee commodities. Despite strenuous attempts to create Highlands Coffee on every corner,
there are still more supermarkets than Highlands Coffee cafes in terms of convenience. Highlands Coffee
should actively pursue replacements that compete in these areas, such as pre-packaged beverages or
offering tea in its stores as a preventive move to fight off any teahouse attempting to capture coffee
users, seeing the potential for this convenience segment of the coffee industry.
2. RECOMENDATIONS FOR PRICE
The fact that Highlands Coffee takes pleasure in offering excellent customer service and a positive
customer experience indicates that the company is primarily customer-focused, which leads to a strong
client base. However, the greater the value of a product's quality or services to customers, such as in the
case of coffees, the less price sensitivity the purchasers have. Individual consumers are unlikely to be
able to exercise their purchasing power as long as Highlands Coffee maintains high-quality goods and
excellent customer service. As a result, maintaining Highlands Coffee's current high-end coffee prices is beneficial.
3. RECOMENDATIONS FOR PLACE
Highlands Coffee can build up an online chat room to help its stakeholders communicate more
effectively. It may also offer free email accounts in order to increase company visibility and strengthen
consumer loyalty. It can also progressively add indirect coffee-related items, such as coffee machines, to
its online sales collection. It may also launch some online coffee tour packages that give low-cost trip
excursions or hotel accommodations. Highlands Coffee may partner with.com firms to market its
products in order to improve sales. To enter a sale contract with yahoo.com to carry Highlands coffee goods, for example.
4. RECOMENDATIONS FOR PROMOTIONS
Highlands coffee might take part in or support local events, such as assisting with education in
developing nations or community activities, in order to strengthen its public image in those worldwide
markets. Its expansion approach can succeed if it is viewed as a sincere partner or caregiver. VI. REFERENCES
Aaron O'Neill (Jul 21, 2021). Vietnam: Age structure from 2010 to 2020.
https://www.statista.com/statistics/444599/age-structure-in-vietnam/
https://www.highlandscoffee.com.vn/en/origin
https://www.highlandscoffee.com.vn/en/main.html
Kien Khang (Dec 3, 2018). Coffee chain: Highlands Coffee leads the market.
https://www.brandsvietnam.com/17153-Chuoi-ca-phe-Highlands-Coffee-dan-dau-thi-truong.
ThanhVan. 2008. Brand TalksVisiting- interesting conversations with descriptions Vietnamese
businessman .[ONLINE] Available at: http://www.slideshare.net/ThanhsBrading/cafe-ban-tron-thuong- hieu.
Highlands Coffee 6 Nha Tho Street_Customers’ comments. [Online] available at:
https://foursquare.com/v/highlands-coffee/4b52d944f964a520358927e3.
IBAR (Jun 22, 2021). Analysis of Cafe Highlands Attracting Customers
https://www.ibar.vn/post/phan-tich-cafe-highlands-thu-hut-khach-hang.