BỘ TÀI CHÍNH
TRƯỜNG ĐẠI HỌC TÀI CHÍNH – MARKETING
KHOA MARKETING
INTERNATIONAL MARKETING
Theme name:
EXPORTING COFFEE OF TRUNG NGUYÊN ENTERPRISE TO
THE GERMAN MARKET
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0
Hồ Chí Minh, ngày 22 tháng 8 năm 2021
CỘNG HỊA XÃ HỘI CHỦ NGHĨA VIỆT NAM
Độc Lập – Tự Do – Hạnh Phúc
BIÊN BẢN HỌP ĐÁNH GIÁ MỨC ĐỘ HOÀN THÀNH CÔNG VIỆC
I.
Thời gian: 12h ngày 22 tháng 08 năm 2021.
II.
Hình thức: Họp online
III.
Thành viên có mặt: Đầy đủ
IV.
Thành viên vắng mặt/Lý do: Khơng có thành viên vắng mặt.
V.
Chủ trì cuộc họp: Trương Tôn Anh Thi
VI.
Thư ký cuộc họp: Vũ Ngọc Thái
VII.
Kết quả đánh giá được thông nhất và tổng hợp như sau:
STT Họ và tên
MSSV
SDT
MĐHĐ
1
Trương Tôn Anh Thi
1921005673
0965295697
100%
2
Vũ Ngọc Thái
1921005653
3
Đặng Văn Đăng
1921005381
4
Nguyễn Thanh Nguyên
1921005568
100%
0364792985
100%
100%
Buổi họp đánh giá kết thúc vào lúc: 24 giờ 00 phút cùng ngày
Thư ký (ký và ghi họ tên)
Nhóm trưởng (ký và ghi họ tên)
Trương Tôn Anh Thi
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TABLE OF CONTENT
I.
EXCUTIVE SUMARY....................................................................................................1
II. SITUATION ANALYSIS....................................................................................................2
1.
Market size:.....................................................................................................................2
2. Growth:...............................................................................................................................2
3. Market trend......................................................................................................................3
4. SWOT:...............................................................................................................................4
5. Competitor analysis............................................................................................................5
5.1 Direct competitor.........................................................................................................5
5.2 New competitive force.................................................................................................9
III.
EXTERNAL ENVIRONMENT...................................................................................9
1.
Political...........................................................................................................................9
2.
Economic.........................................................................................................................9
IV.
IN ENVIRONMENT...................................................................................................11
1. Threat from new competitors:..........................................................................................11
2. Power of supplier:.............................................................................................................11
3. Threats from substitute products and services:.................................................................11
4. Power of customers:.........................................................................................................11
5. Fierce competition of competitors in the same industry:.................................................12
V.
TARGET MARKET DESCRITION............................................................................12
1.International market segment............................................................................................12
2.Market target......................................................................................................................13
3. positioning........................................................................................................................13
4. Market Entry Strategy......................................................................................................14
4.1. Penetration through normal export............................................................................14
4.2. Penetration through franchising................................................................................14
VI.
INTERNATIONAL MARKETING GOALS & OBJECTIVES.............................14
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1.Marketing goals.................................................................................................................14
2. International Marketing Objectives:.................................................................................15
VII.
MARKETING PROGRAM.......................................................................................17
1.
Product..........................................................................................................................17
1.1. Value Propositions.....................................................................................................17
1.2. Branding....................................................................................................................18
1.3.
Package..................................................................................................................18
2.
Price:.............................................................................................................................20
3.
Promotion......................................................................................................................21
4.
PLACE..........................................................................................................................23
VIII.
EVALUATION, MEASUREMENT AND CONTROL........................................23
1.Evaluation..........................................................................................................................23
2. Measuring marketing........................................................................................................24
IX.
ACTION PLAN............................................................................................................24
Conclusion................................................................................................................................28
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I.
EXCUTIVE SUMARY
About Trung Nguyen company
Born in mid-1996 - Trung Nguyen is a fledgling coffee brand in Vietnam, but has
quickly built up a reputation and become the most familiar coffee brand for both domestic
and foreign users.
In just 10 years, from a small coffee company located in the middle of the coffee capital
Buon Ma Thuot, Trung Nguyen has risen to become a powerful corporation with 6 member
companies: Trung Nguyen Joint Stock Company, a joint stock company. Trung Nguyen
instant coffee, Trung Nguyen Coffee Co., Ltd., G7 Trading and Service Joint Stock Company
and Vietnam Global Gateway (VGG) joint venture company with industries including:
production, processing, trading tea and coffee; the per permissions and the analysis of
Service, selling to resellers. In the future, Trung Nguyen Group will develop with 10 member
companies, dealing in a variety of industries.
Pioneering in applying the franchise business model in Vietnam, now, Trung Nguyen
has a network of nearly 1,000 coffee shops nationwide and 8 foreign coffee shops such as the
US, Japan, Singapore, and Thailand. , China, Cambodia, Poland, Ukraine. Trung Nguyen
coffee products and G7 instant coffee have been exported to 43 countries around the world
with key markets such as the US and China. Besides, Trung Nguyen has also built a system
of more than 1000 convenience stores and G7Mart distribution centers nationwide.
Vietnam is the second largest coffee exporter in the world. Particularly for Robusta coffee,
Vietnam has an export output of up to 11 million tons per year, leading the international
market. From 2020, although the global economy is affected by the COVID-19 pandemic, the
demand for coffee consumption has not decreased but is on the rise.
But there is a fact that Vietnam is exporting green coffee mainly. This is a weakness that
makes the commercial value of this item not high compared to the quantity. Currently, the
international market is especially fond of roasted and ground coffee, instant coffee processed coffee lines. Therefore, to meet this demand, our country's coffee enterprises need
to invest in processing to increase the value of coffee products.
Trung Nguyen's powdered coffee, instant coffee, Trung Nguyen not only dominates the
domestic market but is also welcomed in many regional markets, and has initially built a
Vietnamese coffee brand. In addition, with the active support of ministries and branches in
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improving processing capacity, expanding markets, reorganizing exports, etc., with the
initiative and efforts of enterprises Vietnam in promotion, marketing and brand positioning
will help Vietnamese coffee products increasingly assert their position in the international
market.
According to preliminary statistics of the General Department of Customs, in the first
nine months of 2019, the whole country exported nearly 1.3 million tons of coffee, earning
nearly $2.2 billion, down 13% in volume, down. 21% in terms of turnover.
Import and export situation of Vietnam in December and 12 months of 2020 ThongKeHaiQuan : Vietnam Customs (customs.gov.vn)
The average export price of Vietnamese coffee is $1,718/ton (equivalent to about VND
39.5 million/ton, down 9.6% in price over the same period in 2018. Notably, Vietnam's coffee
exports are exported. The most to the German market reached nearly 185,300 tons, equivalent
to more than 289 million USD, accounting for over 14.6% of the total volume and accounting
for 13.3% of the total coffee export turnover of the country.
Vietnamese coffee is suddenly the most consumed by Germans | Economics | PLO
=> Based on those advantages, we continue to export Trung Nguyen roasted coffee
products to the German market to enhance the position of the coffee market in the German
market, but along with that, it is a huge profit. from the German market in particular and
Europe in general.
II. SITUATION ANALYSIS
1. Market size:
-The German coffee market reached a value of USD 7,744.96 million in 2019 and is expected
to grow significantly in 2025, reaching a CAGR of 3.09% during the forecast period (20202025).
- In Europe, Germany is the largest country in terms of coffee consumption, with per capita
consumption reaching about 6.5 kg. Strong demand for freshly brewed coffee is driving sales
in market research. Furthermore, consumer demand for specialty coffees is growing due to
increasing awareness and knowledge of the product. Another factor contributing to this trend
is the increase in the number of cafes, small residential brands, small roasters and bartenders.
Furthermore, consumers have initiated a new trend of home roasting.
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2. Growth:
Coffee consumption in Germany remains stable
The market for specialty coffees in Germany is growing and presents opportunities for
suppliers of high-quality coffee. The specialty coffee segment is a niche market but
requires high quality – high value.
Germany, Italy and France are the largest coffee consumer markets in Europe
The German market in particular accounts for about 20% of total European coffee
consumption, followed by Italy (13%). Other major coffee consumer markets are
France (13%), Spain (8%) and the UK (8%) (ICO, 2016). The ICO emphasizes that
the EU is a single market and cannot pinpoint exactly where imported coffee is
consumed.
Germany was the largest direct importer of green coffee from developing countries in
2016, accounting for 35% of total European green coffee imports (1.1 million tons).
Germany has a large coffee roasting industry and most green coffee is shipped
through the port of Hamburg, the largest coffee transit point in Europe. The port of
Bremn is also used as a coffee docking point in Germany. The major German coffee
roasters are Tchibo, Melitta, Jacobs and Dallmayr.
3. Market trend
Consumer trends towards home-brewed coffee, from whole roasted beans, often lead
to the preparation of fresh batches of coffee. Furthermore, the trend of coffee
consumption in the workplace is prominent in Germany.
According to Beverage Business World in 2019, Germany is the leader in office
coffee consumption. It was valued at EUR 725 million, with an average growth of
3%, in 2018. Key players love to serve freshly brewed coffee, made from whole
roasted beans, especially in office spaces. , mainly due to the growing demand for
whole roasted coffee. This greatly increases the sales of roasted coffee.
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picture 2. 1 Sale of Roasted coffee by Segment type
Arabica Coffee is the Largest Segment in the German Coffee Market. Germany is one
of the main importers of green coffee. German consumers prefer light, high-quality
roasted Arabica coffee. Arabica beans stand out to German consumers, compared to
robusta
4. SWOT:
- Strength:
+ Germans love to use roasted coffee
+ Trung Nguyen coffee brand is international
+ Technology, coffee flavor of Trung Nguyen is extremely special in the market
- Weakness:
+ The efficiency of the distribution channel in the German market has not been maximized
- Opportunity:
+ According to the EVFTA agreement, exports from Vietnam to Germany will enjoy many
incentives
+ Germany is the coffee roasting center of Europe
+ The German market has to import coffee, especially in Brazil and Vietnam
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+ The domestic coffee market in Germany has many loopholes
+ Expanding the market in Germany
- Threats:
+ Brazil is trying to export a large amount of coffee to the German market
+ Indonesia is targeting the coffee export market to Germany
+ There are many domestic and imported coffee brands in the German domestic market.
+ Entering a new market, factors such as capital, knowledge, and interests are the things that
determine quite a lot in the existence of a business.
5. Competitor analysis
5.1 Direct competitor
Today's coffee production and export industry has a high level of competition, from foreign
competitors to domestic competitors having the ability to penetrate the market that the
company is aiming for. Here are some comparisons of potential industry competitors:
NESCAFE
Nestlé Vietnam, for many years in a row among the leading
sustainable development enterprises, not only performs well
in business activities, creates jobs, contributes to the state
budget but also actively contributes pole for initiatives and
programs for social development and environmental
protection and community development.
As part of that common goal, the company
strengthens its image and brings products of
sustainable origin, made in Vietnam with the
NESCAFÉ and MAGGI brands to many
countries around the world.
Dallmayr Prodomo German Coffee
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This is the best rated German coffee in 2020 because it retains the natural and sweet taste that
anyone would love to feel. It is presented in ground coffee form, so all you need is to grab
some and use the best coffee grinders, your coffee will be ready. Furthermore, it comes in a
pack of six, with each weighing 1.1 pounds.
The reason why like this coffee is because it contains 100% Arabica so can be considered
good for your health. Produced by a trusted brand in Germany, you want to experience any
health complications when drinking coffee because the coffee is pure and carefully crafted to
meet everyone's needs, with no hidden chemicals or ingredients with no value
Dallmayr Decaffeinated German Roast Coffee
Caffeine has been known to be a quality stimulant that, at the
time, can affect you when taken in large quantities. As a
result, Dallmayr takes extra measures to ensure their coffee
is decaffeinated without losing the flavor and aroma of the
original coffee. Moreover, coffee is obtained from the
Central Highlands Arabica tree. It configures only the best
farms in the world using proprietary farming methods, thus
ensuring pure and natural coffee.
From the best coffee reviews available online. By far, decaffeinated Dallmayr ground coffee
is the best coffee without bitterness and irritants. What's more, the coffee is produced in
Germany according to Good Manufacturing Practices in the bodies that comply with the
Industrial Park.
Barissimo German Ground Coffee
The company strives to guarantee 100% customer
satisfaction by only producing the best quality that meets
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the standards of the consumer. However, to make this coffee you will need to add 2
tablespoons/6oz of water to the automatic drip coffee maker, you should not reheat or boil
your brewed coffee as it may affect the taste and flavour.
The company strives to guarantee 100% customer satisfaction by only producing the best
quality that meets the standards of the consumer. However, to make this coffee you will need
to add 2 tablespoons/6oz of water to the automatic drip coffee maker, you should not reheat
or boil your brewed coffee as it may affect the taste and flavour.
Jacobs German Instant Coffee
Founded by Johann Jacobs in 1895, this brand has
continuously provided German residents with high
quality
coffee
roasted
by
professionals
with
experience hence still considered the best coffee
brand in Germany. . As we believe the 3in1 Classic
Instant Coffee Sticks, you'll enjoy serving your coffee
on the go and waste no time as it's ready faster than
other brands.
As the name suggests, "3in1". It is packed with coffee beans, sugar and cream to save your
time and resources. They come in packs of six, each containing ten servings of 18g each; so
you can grab your coffee on a short break or on the go.
.
Tchibo German Roast Coffee Instant Coffee
Producers
to
meet
the
expectations
of
coffee
consumers. Tchibo Gold Selection brews coffee to give
you the best coffee with great aroma. Moreover, the
brand mainly uses the finest coffee grown from the best
agricultural lands, free of harmful ingredients. In
addition, before bringing these coffees to market, they
are ground, freeze-dried, roasted to perfection, and then carefully blended to preserve the
natural flavor and aroma of the beans.
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Coffee is imported directly from Germany and meets all safety standards for consumers.
They come in two pots for a total of 7oz/200grams of coffee.
Advantages: has a long-standing position in the hearts of domestic German customers,
reasonable prices with a wide distribution network throughout Germany, easy to find. In
addition, the above brands also have ingredients as well as quality from nature. Cons: Many
foreign brands, so the high cost makes the price of the product high
.
5.2 Alternative products
In this era of technological development, high-end customers can replace skin care with
modern, high-tech machinery products. In the current era of technology development,
customers in the high-end segment can buy themselves a coffee machine at home. These
alternative products have the advantage of bringing class, and convenience. Besides, it also
solves the problem of buying and buying products again and again
Coffee machines are sold widely throughout the market, everywhere selling home appliances,
... This alternative product has the advantage of reasonable price and because it is sold at
electrical stores. In addition, these substitutes are highly personalized and can be seasoned
according to the user, regardless of the producer.
5.3 New competitive force
Because Vietnam is a country with a large coffee production and good quality, there
may be many potential businesses appearing in this industry.
Large and small coffee chains across the country can actively source and produce their
own products to launch into the market in order to supply themselves for use and compete
with existing brands.
Advantages: These potential competitors may have unique and strange moves in the
coffee industry.
Cons: The cost to invest in machinery is quite large, technology and finding a source of
quality raw materials are still a problem and the time to test it out to the market is quite long.
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III.
EXTERNAL ENVIRONMENT
1. Political
Since the EVFTA was officially ratified between Vietnam and Europe, product lines
exported from Vietnam have enjoyed a huge reduction in import tax rates. Including coffee
products coming to the German market (considered the largest coffee consuming country in
Europe). In addition, the German government also requires coffee products to ensure that
there are no residues of pesticides.
2. Economic
The German economy is considered the first in the European Union and the fifth in the
world. In 2020, due to the severe effects of the Covid19 pandemic, GDP per capita grew by
-5.07%, causing the German economy to fall into a downward spiral. According to the federal
statistics office, total GDP in the second quarter of 2021 has shown signs of growth again at
1.5% compared to the previous quarter, but the inflation rate in July is still on track to record
record
highs
as
estimated.
calculated
at
+3.8%.
( . At the same time, Germany is Vietnam's
largest trading partner in Europe, accounting for ⅕ of export turnover to this market.
Although both countries are affected by the pandemic, they still maintain a positive growth
rate. In the first two months of 2021, the two-way turnover of Vietnam and Germany reached
$1.57
billion,
up
more
than
5%
over
the
same
period
last
year.
( />page=news&do=detail&category_id=66&id=5559). Therefore, this is still considered a
potential market to bring Vietnamese coffee products into
3. Social
Germany has a population of more than 83 million people, making it the most populous
country in the European Union. The German people have a diverse culture and in the cuisine,
coffee is considered a drink that is loved by many people. Coffee was introduced to Germany
in the 1670s and gradually became widespread. According to data that Trung Nguyen Legend
has studied, up to 86% of adults in Germany use coffee every day. And on average 1 year,
Germans drink up to 164 liters of coffee and this number is even greater than filtered water
( -vuong-cua-peopleduc/). The Germans have an extremely developed coffee roasting industry and most of
Germany's
seaports
are
used
as
Europe's
largest
coffee
transshipment
points
( -ca-phe-tai-thi-truong-chau-Au.html)
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4. Technology
Germany is famous for its highly advanced industry that helps them apply many technologies
to make the world's best coffee-making equipment. With trinamiX Mobile Near-Infrared
(NIR) Spectroscopy Solutions helps determine the caffeine content and moisture content of
coffee beans, coffee roasters monitor and better control the process of purchasing and
refining coffee beans (https: //www.basf.com/fi/en/media/news-releases/2020/09/p-20294.html)
5. Environment
Due to being a country with a relatively low average annual temperature of 8.4 degrees
Celsius, it is difficult for Germany to cultivate and grow coffee on its own. So both Germany
and Europe have to import coffee from other countries. And According to the EU report on
the German environment in 2019, the effects of air pollution are increasing in Germany
( A large part comes from the
German people's overuse of one-time cups. These cups are made from paper, plastic and
styrofoam and after use these cups will be thrown away, lying in landfills for many years
releasing toxins for the environment. Under the "green initiatives" program, the German
government is trying to get rid of single-use cups and replace them with reusable cups. And
the Freiburg Cup system has been going very well
6. Legal
German Coffee Tax Law stipulates that the tax rate for coffee goods and products is
2.19 Euro/1kg. The high tax rate makes the coffee market in Germany not so attractive
( />BJNE000501140). In addition, the German government has some amendments in the law to
prevent environmental pollution. Therefore, it is difficult for Vietnamese coffee products
packaged with single-use plastic to enter this market ( />
IV.IN ENVIRONMENT
1. Threat from new competitors:
Coffee supplies from countries in Southeast Asia such as Indonesia and Thailand began to
target the German target market, which is a foreign concern about the price, market share and
output competition of Trung Nguyen coffee. with countries in the region
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2. Power of supplier:
Currently, the supplier does not have much impact on Trung Nguyen's coffee export output
because the company already has the company's exclusive supply. With a closed care and
production process in Daklak
Trung Nguyen coffee masterpieces are created from the world's best ingredients, combined
with the mysterious oriental know-how and the world's leading modern roasting technology,
along with the love and passion of the coffee makers. No. 1 coffee expert. Only Trung
Nguyen energy coffee masterpiece converges 3 world famous coffee civilizations Ottoman,
Roman, Zen.
(Trung Nguyen Legend Energy Coffee - Trung Nguyen Legend (trungnguyenlegend.com))
3. Threats from substitute products and services:
In Germany, in addition to coffee, people also drink drinks that have the same effect as
coffee: monter energy drink, red bull, ready-to-drink coffee. With reasonable prices, product
diversity and convenience in use are threats to Trung Nguyen's coffee roasting behavior.
4. Power of customers:
• The main concern is the taste of German people, the taste of coffee is slightly bitter, they
prioritize the taste of milk coffee over pure coffee.
• Many similar products of competitors
• The second is the price, with the process of caring and producing the best coffee beans of
Trung Nguyen coffee, the price is quite high compared to the market price in Germany, still
calculating the price of customers.
5. Fierce competition of competitors in the same industry:
Companies, such as Tchibo, exclusively use this high-quality coffee bean in their coffee
blends, and the Company purchases Arabica coffee from experienced roasters and quality
staff. major competitor in the roasting coffee market for Trung Nguyen coffee in the German
market.
Brazil is a major coffee export market in the world and a major competitor in the Vietnamese
coffee export market in Germany.
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V. TARGET MARKET DESCRITION
1.International market segment
Segment Variables
Segment A
Region
Geographical
Segment C
Hamburg,
Berlin,
Frankfurt
Bremen
Berlin,
Frankfurt
Bremen
Hamburg,
Berlin,
Frankfurt
Bremen,
Munich
Total
Population
6,908
millions
5,607
millions
8,380
millions
Advantageou
s Factor
The
many large
The Biggest
Biggest Port cities
Port and many
and many large
large cities
cities
Population
Density Average
2,900
4,650
2,812
3,000
4,651
2,815
inhabitants/km inhabitants/km inhabitants/km2
2
2
Age
18-30
31-59
23-55
Generation
Generation
Z/ Y
Generation
Y/X
Generation
Z/Y/X
Income
1,500
5,000
Euro/month
3,000
5,500
Euro/month
3,500
6,000
Euro/
month
Occupation
Mainly
student,
Employee,
Expert
Demographic
Psychographic
Segment B
Lifestyle
Makers
s
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-
Manager,
Expert, Labor.
Innavator
-
Manager,
Expert, Labor,
Employee
Experiences
/ Strivers
Behavioral
Personality
Openness/
Extraversion
Attitude
Happiness /
Happiness /
Frustration
Confident
Neutral
User status
First-time
users/
potential
Regular
User rate
Light
Medium
Loyalty
status
Shifting
Loyals
Openness/
Extraversion
Openness/
Extraversion
Potential/
Regular
/
Medium
Heavy
/
Hard-core/
Arabica
Arabica
Robusta
/
Hard-core/
Split
Loyals
Favourite
flavour
Medium
Heavy
Split Loyals
/
Arabica
Robusta
/
2.Market target
With 3 Segments in Market Segment, Segment C will be the target market for Trung
Nguyen Legend to target. With areas in Segment C including Harmbug, where Germany's
largest seaport is located, this is where the focus of coffee imports into Germany and Europe
is. In addition to Harmbug port, with the remaining cities considered the coffee capital.
Therefore, these areas have the potential to bring many benefits to TNLegend's transportation
and penetration into the German market. And the target customers TNLegend can focus on
are people between the ages of 23 and 55 who currently make up the maximum percentage of
the population structure in Germany with 62% and this is also the main labor force with high
frequency.
highest
utilization
rate
of
coffee
products
( />( />-daily-consumption-by-age-groupgermany)Usually, the coffee taste of this group will be very diverse, young customers will
tend to prefer Arabica because of its mild bitter taste and not too strong but older customers I
like Robusta's strong bitter taste and high caffeine content. With a combination of roasting
and grinding products from these two types of coffee, TNLegend aims to meet the maximum
requirements of these customers. In addition, in the report of deutschland, the spending per
household in Germany for the purchase of coffee machines is quite large, so it can be seen
that these customers tend to use coffee at home more than at the coffee shop. coffee
( />
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their-money-on) Therefore, retail sale of roasted coffee products will have more prospects.
For this reason, TNLegend aims to provide roasted coffee products rather than focusing on
instant coffee or coffee shop model.
3. positioning
To position a Vietnamese coffee product to survive and develop right in the German
market is always the most common strategy, governing all marketing programs applied in the
target market. Right from the start of the German market, Trung Nguyen will create new
designs for its products and corporate image in order to capture a special and valuable place
in the minds of customers.
=> The question here is: "How can consumers distinguish Trung Nguyen coffee brand
from a series of long-standing brands from Germany?"
Therefore, Trung Nguyen will bring to customers that is the vivid image in its
advertisement in the German market, printed in outstanding colors to attract new attention,
attractive title "Coffee of Vietnam". The easiest way to leave a mark in the customer's mind is
the values and affirmation of the benefits that the brand brings, the difference compared to a
series of coffee brands in Germany.
Trung Nguyen retains the slogan of the brand that is known by many people "Inspire
creativity". So that customers and users of coffee products can understand that they can drink
the way they feel, Trung Nguyen coffee flavor can satisfy even the most demanding
customers. That is the mark of Trung Nguyen, Vietnamese coffee and produced by
Vietnamese people.
Next, the positioning of its coffee products has "GU", in order to affirm that Trung
Nguyen guarantees the quality of the original and rich coffee flavor. When customers think of
strong coffee, they think of Trung Nguyen coffee of Vietnam.
4. Market Entry Strategy
4.1. Penetration through normal export
Trung Nguyen coffee brand has crossed the border of Vietnam and received the support of
the overseas Vietnamese community as well as the loving attention of international friends.
The export of coffee to the German market and distribution at the points of sale helps
bring significant profits for businesses to earn profits and foreign currency from which to buy
machinery and equipment to expand the company and improve the quality of coffee.
production that increases business efficiency.
Participating in coffee export helps Trung Nguyen improve the prestige of its coffee brand
image with international friends. From there, helping the company create many competitive
advantages, expand the market, increase market share and profit.
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The export is also supported by the state through preferential policies such as investment
credit, export credit, trade promotion as well as research and development support policies.
4.2. Penetration through franchising
Trung Nguyen will access the German market, in addition to exporting goods through
business franchising in this country. In fact, Trung Nguyen has had success in the field of
franchising, which is the G7 - Mart model (distributed at EMart retail system and the world
corporation is Costco). The G7 - Mart model is considered a breakthrough in franchising to
compete with many distributors in the retail market.
With the form of franchising, Trung Nguyen coffee products are produced from the
highlands of Buon Ma Thuot, and combined with modern technology and know-how, are
introduced to all world consumers. Besides that old
VI.
INTERNATIONAL MARKETING GOALS & OBJECTIVES
1.Marketing goals
• Develop brand awareness in customers' minds
•
Increase sale revenue
• Expand distribution market and capture market share
2. International Marketing Objectives:
SMART objectives are:
• Specific: Concrete, detailed, and well defined so that you know where you are going and
what to expect when you arrive
• Measureable: Numbers and quantities provide means of measurement and comparison
• Achievable: feasible and easy to put into action
• Relevant: Considers constraints such as resources, personnel, cost, and time frame
• Time-Bound: A time frame helps to set boundaries around the objective
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SMART OBJECTIVES OF TRUNG NGUYEN CAFE:
Develop brand awareness: Because Creative 8 is a new product considered by Trung
Nguyen to be introduced into the German coffee market. Therefore, developing brand
awareness is very important. An increase of 18% (S, A, R) in the development of Trung
Nguyen Cafe's brand awareness of customers using Creative 8 (S) products in the German
market within the end of 2021 (T)
Increase sales: Increase 20% (M, A, R) by the end of 2021 (T), revenue from our Creative
8 roasted and ground coffee products focus on strengthening distribution channels and
creating content content on special days (Christmas, Mother's Day, Easter Day etc) in our
website, blog to capture 40% more potential customers (M, A, S).
Extend market distribution and market share: Conquer an additional 5% of the market
share or 7% of the population in which mainly people aged 18-35, mainly office workers who
like roasted and ground coffee (M, S, R) ) in the German market, Maintaining steady growth
(M,A, S, R), through partnerships with distributors and sales promotion (S). This result must
be achieved by the end of 2022 (T).
Marketi
ng Goals
Specifi
c (S)
Develop
brand
awareness
Increase
sales
Measurable(
M)
Achievable(
Relevant
Tim
e bound
(T)
A)
(R)
Increas
e
brand
awareness
because
this is a
new
product in
the market,
so it needs
to
be
consumed
by
customers
Increase
18% in brand
awareness
development of
Trung Nguyen
Cafe
of
customers using
Creative
products 8
At
The
greater
the the end
of 2021
brand
awareness,
the
more
favorable the
business
orientations
of
the
business will
be
Selling 20%
more
highan
quality Creative
important
products
factor
to 8
compared
to
evaluate
making
the product 2020,
life cycle good use of it
stage and
developme
20%
increase
in
revenue
from
the
sale
of
Creative coffee
products 8
At
Improve
and improve the end
of 2021
the
distribution
system
to
create
content
on
special days
on websites
and blogs in
This is
0
0
nt ability
Extend
market
distribution
and market
share
VII.
In the
German
market,
because
this
age
group who
often
enjoys
roasted
coffee
is
18-35, they
are office
workers.
the German
market as it
is related to
shipping and
improving
sales
5% market
Conquer an
additional
5% share and 7%
market share or population
7%
of
the
population
in
which
mainly
people aged 1855, mainly office
workers who like
roasted
and
ground coffee in
the
German
market
By
Improve
the marketing the end
of products of 2022
to consumers
in shopping
centers,
supermarkets
...
MARKETING PROGRAM
1. Product
For Trung Nguyen to create a masterpiece of coffee, it must originate from the careful and
rigorous selection of the main raw materials. Creative Product 8 is a delicate combination of
3 unique and best quality coffee beans: Arabica, Robusta and Excelsa.
With Arabica coffee beans, selected and used from the most original coffee beans from Brazil
and the highlands of Ethiopia. These places are considered the capital and cradle of Arabica
coffee. The characteristic of this coffee bean is that it has a mild sour and bitter taste,
accompanied by a little fruity taste and a sweet aftertaste. The caffeine content in Arabica is
not too high, only 1-2%.
Mixed with the quintessential Arabica coffee beans are Robusta coffee beans with strong
Vietnamese flavor. Taken from the mountains of the Central Highlands. The place that brings
the world's most delicious Robusta beans. Robusta coffee beans have less sour taste than
Arabica instead of bitter, acrid taste accompanied by double caffeine content at 3-4%.
Finally, there is Excelsa coffee bean from the Philippines, with the taste of ripe fruit and the
aroma of wood and flowers. The caffeine content in this coffee is quite low, only about 1%.
By choosing coffee beans without pesticides, without mixing impurities and additives. Plus
its own roasting and roasting know-how and using modern production lines that meet FDA
0
0
and European standards. Trung Nguyen has created Creative 8 product with a unique flavor
not to be confused with other types of coffee. Creation 8 has a seductive aroma, a slight bitter
taste that is not too harsh, so it is suitable for the taste of all genders and all ages.
1.1. Value Propositions
With the 3S formula, Trung Nguyen creates CREATIVE 8 super clean, delicious coffee for
coffee connoisseurs, specializing in creative brain activity.
Besides, Creation 8 especially has very good health benefits such as:
• Helps to refresh the mind
• Reduced risk of diabetes
• Beneficial for the liver and heart
• Supports weight loss
• Helps anti-oxidant, prevent cancer and aging process
1.2. Branding
Trung Nguyen has long been considered as one of the largest coffee
groups in Vietnam, with the most distinctive and special products in the
market. Under the leadership of Chairman Dang Le Nguyen Vu, Trung
Nguyen Coffee. Nguyen are not simply ordinary coffee products but
energy coffee instead. With the philosophy of "The Energy Coffee That
Changes Life", Trung Nguyen Coffee Group has contributed to expanding
the Vietnamese and international coffee markets. People's love for coffee
has also grown. Particularly for Creative 8 product, Trung Nguyen Group
identifies the product as "International Quality - National Brand". Not
only serving the common consumption purpose of each household, but
Creation 8 is also a gift from Heads of State & Diplomats. From that, it
can be seen that Trung Nguyen Group has spent a lot of effort to create a
great product Creative 8
1.2.
Package
The packaging of the Creative 8 product consists of 3 layers:
• Primary package: The product will be wrapped in plastic packaging with black and
white tones, above it is the word Special showing special properties with the product name
"Creative 8". In the center is the image of King Napoleon of France printed in stylized gold
on a black background. Next is the saying of this king and information about the product
volume. Finally, the words "Energy Coffee - Life-changing Coffee" are printed separately to
create a highlight for the entire package. The subtlety and difference of Creation 8 is that the
packaging is vacuum sealed, which saves space and volume and prevents the loss of the
original
moisture
of
the
coffee.
0
0
• Secondary Package: The product packages will be preserved inside and displayed in a
cylindrical cardboard box, the body is white with metalize and still has the image of King
Napoleon as the center. Above is the logo of Trung Nguyen coffee and the words affirming
the position "The No.1 Coffe!". On both sides, are the stories and philosophy of the
corporation along with contact information as well as quality criteria and preparation
methods. The black box lid with Embossed Creative 8 logo exudes elegance and
sophistication
• Shipping package: It is a carton with a weight of 6kg including 12 boxes of 500g type.
The front of the box is Trung Nguyen logo, the words "Creative 8" are bold with eye-catching
fonts and the image of King Napoleon to attract customers. Above and below are brand
affirmations and definitions
the group's distinctiveness. In addition, there is information and barcodes to serve the
transportation
process
1.3.
Labelling
Logo:
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0
The logo of Trung Nguyen Legend uses 2 main colors including black and white to create a
harmonious and static whole. In particular, the circle of the logo is a creative improvised
brush stroke like bringing a strong coffee soul to life. In the center, is a circle drawing the sun
as life, representing the supreme being with 8 rays of light representing the basic elements of
the universe: Heaven, Dam, Fire, Thunder, Wind, Water, Mountain , Soil. Not only that, the
light from the central sun also has the meaning of illuminating and dispelling bad gases. The
symbols of the sun, the moon and the heart are alternating, corresponding to the rays of the
sun, symbolizing the laws of the universe and the laws of emotional movement and harmony.
The heart symbol represents Mind - Goodness - Goodness and the sun and moon symbol
symbolizes the balance of the universe.
The 5 bars in the overall circle represent the 5 energies of Creation, Wealth, Success,
Happiness and Love.
Below is the image of the only red arrow that makes the logo stand out, the arrow pointing up
represents Trung Nguyen's will to conquer the top and aspiration to develop and rise. The 3
white lines on the logo represent the entrance to the stilt house with bold cultural identity of
the Central Highlands. Finally, there is the text of the group's name and the affirmation of
Trung Nguyen's first-class positionProduct’s support services
With a new product entering the German coffee market, Trung Nguyen Legend can provide a
number of support services such as:
• Set up an additional German language or create a country-specific website domain to be
able to assist with your product inquiries
• Taking advantage of coffee exhibitions of the German Coffee Association, Trung Nguyen
can attend and support customers to enjoy and taste coffee from Creative 8 products.
2. Price:
When launching Trung Nguyen's Creative Coffee 8 (Box 250gr, 500gr) into the German
market, phase 1: we implemented a market penetration pricing strategy in the first 6 months
of the first year; Phase 2: we use skimming pricing strategy.
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0
Timeline:
September 1, 2021 - March 1, 2022: Market penetration pricing strategy
- After March 1, 2022: Market skimming pricing strategy
When we first entered the German market, we found that the brand awareness of
consumers in Germany was still quite weak, so we used the market penetration pricing
strategy to increase the brand awareness of Coffee. Trung Nguyen coffee.
After seeing the increase in brand familiarity among consumers in Germany, after 6
months, we applied a market skimming strategy because Creative 8's target audience is the
civilized people. The room has a hobby of drinking roasted and ground coffee, so most of
them have a stable income.
=> Through extremely good product quality and suitable for German coffee taste, they
will be willing to pay these prices.
State 1:
-The initial price when bringing Creative 8 (box of 5000gr) to the German market is 17
Euros equivalent to 459,000 (VND)
-The initial price when bringing Creative 8 (250g box) to the German market is 9 Euros
equivalent to 240,000 (VND)
Phase 2:
-With the initial price when bringing Creative 8 product (box of 5000gr) to the German
market is 20 Euro equivalent to 544,000 (VND)
-The initial price when bringing Creative 8 (250g box) to the German market is 12 Euros
equivalent to 330,000 (VND)
Table 1: Staged Pricing Strategy
250
( gr)
Giai đoạn 1
Giai đoạn 2
(11/9/2021 - 1/3/2022)
( Sau 1/3/2022)
9 Euro
12 Euro
0
0
