Tài liệu tham khảo cuối học phần - Tài liệu tham khảo | Đại học Hoa Sen

Abstract
Under the explosive development of the Internet era, technology 4.0 in the new era has
created many landmark changes, creating a driving force for socio-economic life.
The prominent trends in recent years must be the online business model and putting
products on e-commerce sites. Especially after the pandemic caused shopping habits and
customer experience to suffer. Grasping that trend, in Vietnam when the economy opens
up, many businesses take advantage of e-commerce sites to expand their scale to the international market.
Trung Nguyen Legend Group with more than 20 years of experience has successfully
launched its products internationally, successfully launching the "Trung Nguyen Legend
Coffee Brand Booth" on Amazon, marking an important milestone of the Group on its
coffee export journey through cross-border e-commerce.
Trung Nguyen is currently focusing on distributing 2 main types of products on e-
commerce platforms: instant coffee and filtered coffee. If product lines such as Passiona,
Legend iced milk coffee, Classic, Special Edition aim for convenience, filtered coffee is
specially prepared according to specific flavors for cafes. The variety and quality help
Trung Nguyen Legend products resonate in many international markets. 1. Introduction
1.1 Background of Trung Nguyen Coffee
In the 1990s, Vietnam's coffee production ranked 2nd among the three major coffee
producers and also the country with the largest Robusta coffee production in the world.
Although the quality is lower than Arabica beans, Robusta beans still have a strong, rich
aroma and, importantly, high yield and production cost savings. However, at that time,
Vietnamese coffee was only for export of raw beans without processing for export. Faced
with this situation, Mr. Dang Le Nguyen Vu founded Trung Nguyen in 1996 with the
desire to find fairness and a worthy position for Vietnam's coffee industry (Brands Vietnam, 2023).
With love, belief and efforts to enhance cultural values and the art of enjoying coffee to
the world, Mr. Vu has convinced domestic and foreign markets by focusing on product
quality. Trung Nguyen uses pure coffee from Buon Me Thuot – the land known as the
"coffee capital" with the process of selecting, roasting and producing according to
international standards, creating coffee masterpieces containing the flavor and bold
Vietnamese coffee culture. In addition, Trung Nguyen also proved its strength to the
Vietnamese and international markets by its success in the international market with a
presence in more than 100 countries and territories with a diverse product system
stretching from stores, supermarkets, online channels, the leading e-commerce platform
in the world(Brand Updates, 2012; Trung Nguyen Legend, 2023).
1.2 Trung Nguyen Coffee in the e-commerce market
(Tapchitaichinh.vn) "To attract consumers, in addition to competing at the point of sale,
the retail industry is also racing to e-commerce services."
The industrial revolution 4.0 in the new era brings prosperity and impacts in all aspects of
socio-economy. With the strong and dynamic development of the retail service industry,
the change in shopping behavior and customer experience journey has become a
motivation for businesses to be more active in finding ways to approach and meet market
needs. Not out of the trend of the times, Trung Nguyen chose Amazon as the foundation
to develop the brand, towards the world. The preparation, careful research along with
more than 20 years of experience help Trung Nguyen smoothly launch Trung Nguyen
Legend brand store on Amazon, marking an important milestone in the journey of
exporting coffee through e-commerce.
Selling on Amazon is a wise orientation of Trung Nguyen Legend to exploit opportunities
to access new potential and long-term export channels. At the same time, Amazon has
been helping Trung Nguyen Legend overcome many challenges in bringing products to
the transnational e-commerce platform. Experienced local staff have supported Trung
Nguyen Legend to overcome barriers in the online business process. This helps Trung
Nguyen operate on Amazon more smoothly and smoothly (Tamas Nguyen, 2021).
In addition to Amazon, Trung Nguyen also has an Official Store on Alibaba. Alibaba is
China's largest international e-commerce site operating under a B2B model for small and
medium enterprises around the world, supporting and seizing opportunities to reach
potential customers internationally (Bình An, 2020).
Domestically, Trung Nguyen also has genuine booths at e-commerce platforms including,
Tiki, Shopee, Lazada,... Trung Nguyen also has a website that provides a full range of
coffee products, giving customers more options in online shopping. E-commerce
platforms receive positive feedback and reviews on product quality and customer care
services, in addition, the friendly, easy-to-use website design is also a big plus point for
Trung Nguyen Legend. The fact that Trung Nguyen has genuine booths on e-commerce
platforms and websites has contributed to bringing Trung Nguyen closer to potential
customers, while also helping to increase sales. 2. The company
2.1 Positioning strategy  Brand recognition
According to Q&Me's survey results, the brand awareness of Trung Nguyen coffee
reached 75%, while Highlands Coffee was 67% and followed by The Coffee House with
60% recognition. This shows that Trung Nguyen has become a familiar brand, creating
attachment and also a "pet", the pride of every Vietnamese people (Hoàng Thùy, 2022).  Product portfolio
Trung Nguyen coffee's product portfolio includes roasted coffee, instant coffee, paper
filter coffee, cup filter coffee, coffee beans and premium Trung Nguyen coffee (Brade Mar, n.d.). Product Type Product Roasted coffee
 Filter Coffee 1, 2, 3, 4, 5
 Creative Coffee 1, 2, 3, 4, 5  Coffee Conquest S  I-Letter Aspiration Coffee  House Blend Coffee  Gourmet Filter Coffee G7 Instant Coffee  G7 3in1  G7 2in1 (stone black)  G7 Soluble to Zhongyuan  G7 strong gu X2  G7 Legend Passiona 4in1  G7 – Cappuccino
 Legend Classic Instant Coffee
 Instant Coffee Legend Special Edition
 Legend Iced Milk Instant Coffee Paper filter coffee
 Trung Nguyen Legend Fusion Blend
 Trung Nguyen Legend Vietnamese Blend Paper Phin Coffee
 Trung Nguyen Legend Americano Paper Phin Coffee Filtered coffee cups
 Trung Nguyen aluminum filter with copper drum pattern
 Trung Nguyen stainless steel coffee phin
 Trung Nguyen Legend Enameled Aluminum Phin
 Trung Nguyen Vinalu Aluminum Filter Coffee beans  Coffee Beans Espresso S 8 M B C ff
 Distribution network
Distribution in the form of a franchise
Trung Nguyen applies and builds franchise business systems throughout the country and
major markets such as the US, China, Japan,... Trung Nguyen brings coffee lovers in the
international market a very new, very unique style of enjoyment, imbued with
Vietnamese culture with the form of franchise business.
It is not difficult to feel the unique coffee culture when visiting Trung Nguyen's franchise
establishments. Since its market launch, Trung Nguyen has had more than 1000 franchise
partners both at home and abroad. The operating criterion of the franchise establishment
is to bring rich cups of coffee with delicious flavors with Vietnamese coffee flavor.
Traditional distribution intermediaries
For the traditional dark channel, Trung Nguyen cooperates with retailers, supermarkets,
and grocery stores to easily bring its products to consumers. The traditional distribution
intermediary helps Trung Nguyen reach many potential customers through a wide
network of distributors, while also minimizing costs when there is no need to rebuild its
own distribution system (MISA AMIS, 2022). Committed to innovation
With knowledge condensed from the origin, history, and role of coffee in human
development, Trung Nguyen has shown that coffee is the quintessence of humanity, an
energy of awakening and creativity with positive impact. At the same time, it also makes
the coffee world recognize: not only Arabica but also Robusta; not only the style of
enjoying American coffee but also the style of Vietnam. Moreover, coffee is not only a
drink but also a contemplation and experience (TNL, 2023). Sustainability
Up to now, Trung Nguyen Legend has always been a pioneering enterprise in undertaking
the responsibility of implementing comprehensive strategies to help Vietnam affirm its
position in the world market. Not only is it a powerhouse in terms of coffee exports but
also an ideology, initiating coffee philosophies and culture. Trung Nguyen has brought
Vietnamese coffee to more than 80 countries and territories. Trung Nguyen Legend is
also the only brand in Vietnam that has worked hard to research and crystallize the
quintessence of Vietnamese culture, condensing the essence into the exhibition space (P.V, 2021).
2.2 Trung Nguyen's competition strategy Competitors
For instant coffee products, Trung Nguyen faces competition with two big players in the
domestic market, Nestlé and Vinacafé.
Vinacafe and Nestle are both long-standing, famous brands and are very popular with the
consumer tastes of Vietnamese people. According to a report by Vinaresearch, the big
three dominate Vietnam's coffee retail market: Vinacafé, Nestlé and Trung Nguyen with
nearly 75% market share. Accordingly, Nescafé of Nestlé, Wake up of Vinacafé and G7
of Trung Nguyen are the top 3 instant coffee brands with very high awareness in Vietnam.
Despite facing two world-class opponents, Trung Nguyen is not inferior when put on the
comparison scale. The proficiency and meticulous research on coffee has brought Trung
Nguyen from a small brand in Buon Ma Thuot to a leading brand in Vietnam, capable of
competing and affirming the position of Vietnamese coffee with major competitors to
bring products to retail chains around the world (MISA AMIS, 2022b). Product Strategy
Trung Nguyen implements a product diversification strategy with the goal of meeting the
diverse needs of consumers while expanding markets and improving product quality and taste.
Trung Nguyen's product portfolio is very rich, able to reach and conquer all types of
customers from middle to upper class, from high-end to high-end.
2.3 Analyse the marketing – mix strategies (4Ps) Product
Referring to Trung Nguyen is referring to "creative coffee", Trung Nguyen has let
customers learn about the differences of coffees: Arabica coffee, Robusta, weasel
coffee,... to create a stepping stone to adopt the tactic of "personalization". Not only
focusing on taste quality, G7 is very fastidious in choosing coffee beans to using state-of-
the-art equipment and special roasting and drying recipes to create unique flavors for each cup of coffee. Price
The prices of Trung Nguyen's products are extremely diverse, depending on each type of
product, target customers and market segments, the price of the products is also different.
Trung Nguyen always focuses on keeping the price stable, which has helped Trung
Nguyen gain a competitive advantage compared to other brands' product lines in the same
segment such as Vinacafé, Nestlé,... Place
Thanks to a meticulously calculated and wise distribution strategy, Trung Nguyen
gradually moved closer to dominating the Vietnamese coffee market, creating money to
enter the international market.
In addition to traditional and modern distribution, Trung Nguyen also distributes on e-
commerce platforms such as Shopee, Lazada, Amazon,... help increase revenue for the company and grow strongly. Promotion
Trung Nguyen does not focus too much on promoting advertising activities, but instead
focuses on PR activities. Trung Nguyen expresses the national cultural identity in
slogans, logos, in each product that cherishes and promotes national pride.
Trung Nguyen attaches its brand to social responsibility, national responsibility by
supporting the scholarship project to study abroad, supporting other brands when they
face difficulties. Especially, the project "coffee capital" is located in Dak Lak. Therefore,
Trung Nguyen easily wins the sympathy and trust of customers (Dương Thị Hồng Nhung, 2022). 3. Market Selection
Gillespie's A(2007) pointed out that "there are many factors in the macro environment
that will affect the decision-making of organization managers". For China, expanding to
China is an attractive market. The external environment will affect the growth of a
company. It not only brings opportunities, but also challenges to zhongruan Coffee, so it
is very important for managers to consider and make foreseeable decisions. The
following PESTEL analysis will lead to the external factors that affect the development
of Trung Nguyen Coffee (Umar Farooq, 2021). 3.1. Political factor.
China is considered a relatively safe investment and business environment, as a
democratic republic led by a single political party should have a relatively stable political
system and fewer internal conflicts between the governments and people of the two
countries. In addition, the national security situation remains good, which helps
enterprises to minimize the risks they may face (M Rahaman, 2023).
Before 1997, China was a country that completely followed the socialist path, but by this
time they had come up with a new, very beneficial thing when G7 instant coffee was one
of the special marks that made Trung Nguyen Legend brand.
3.1.1. The Current Situation of Vietnam Exporting Coffee to China.
China is the world's 11th largest coffee market with an estimated value of 9,124 million
USD and the world's 11th largest importer with an estimated value of 2,650 thousand bags (2019/20).
In recent years, Vietnam has continuously increased its coffee exports to major markets,
especially China, the world's second largest economy. Vietnamese coffee holds an
important position in the Chinese market and is the largest coffee supplier to China, with
a population of 1.4 billion (accounting for nearly 80% of the total imports from 2013 to 2017).
Remove discrimination against imported goods in the domestic market, remove non-tariff
barriers, and enhance marketing for service sectors such as banking, securities, and
telecommunications. Allow foreign enterprises to grow ownership, promote product
distribution, and promote free commerce combined with exports in compliance with the
World commerce Organization's regulations and requirements for membership. China, in
particular, has enacted anti-dumping and anti-dumping rules that require domestic and
international commodities to compete freely in the domestic market.
In addition, China also implements import management mechanism according to national
and international standards, especially food safety and environmental sanitation
standards, which makes investors full of confidence and determination in this market (Stratagoras, n.d.)
3.1.2. Politics between Vietnam and China.
Strong growth in economic, trade, and investment cooperation. Against the backdrop of
the negative impact of the epidemic on trade in most countries around the world, the two-
way trade growth between Vietnam and China is good. Since 2020, the political relations
between the two countries have been developing towards peace and friendship,
strengthening stable and sustainable trade cooperation, and creating conditions for Trung
Nguyen Legend, which has been expanding its export market to China, Assist in
promoting high-quality Vietnamese commodity trade products sold in the Chinese market (Ahsan Ali Shaw, n.d.) 3.2. Economic.