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BỘ GIÁO DỤC VÀ ĐÀO TẠO
TRƯỜNG ĐẠI HỌC KINH TẾ - TÀI CHÍNH

THÀNH PHỒ HỒ CHÍ MINH

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FINAL ASSIGNMENT

Sales Management
Group 7

Nguyễễn Quyễết Tiễến
Đặng Thùy Ly Băng
Huỳnh Ngọc Thanh
Lương Nguyễễn Quốếc Thịnh

Lễ Hoàng Linh
Lecturer: Nguyễn Đức Công
Class: 222.MGT1107E.A02E

Thành phố Hồ Chí Minh, tháng 4 năm 2023

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Table of Contents

CHAPTER I: CORPORATE STRATEGY................................................................................................................3
I: OVERVIEW OF TRUNG NGUYEN COFFE COMBPANY...............................................................................3
II: ENVIRONMENTAL ANALYSIS OF TRUNG NGUYEN COFFEE.................................................................5

II.I MACRO ENVIRONMENT.................................................................................................................................5
II.II: MICRO ENVIRONMENT................................................................................................................................8
III. ANALYSIS OF PESTEL MODEL OF TRUNG NGUYEN..............................................................................11
IV. ANALYSIS OF THE 5 FORCES OF TRUNG NGUYEN COFFEE...............................................................21
V. ANALYSIS OF THE 5M MODEL OF TRUNG NGUYEN COFFEE..............................................................23
VII. CANVAS ANALYSIS OF TRUNG NGUYEN COFFEE................................................................................27
VI. SWOT ANALYSIS..............................................................................................................................................37
CHAPTER II. MARKETING STRATEGY.............................................................................................................40
II.I S-T-P STRATEGY OF TRUNG NGUYÊN...................................................................................................40
II.II MARKETING-MIX STRATEGY ANALYSIS............................................................................................44
CHAPTER III : SALES STRATEGY.......................................................................................................................47
1. SALE ORGANIZATION.....................................................................................................................................47

1.1 Overview of Trung Nguyen's organizational structure............................................................................47
1.2 Sales organization chart of Trung Nguyen................................................................................................50
2. SALE PROCESS..................................................................................................................................................54
2.1 The Selling process.......................................................................................................................................54
2.2 Sales script (real estate)...............................................................................................................................56
3. SALES TARGET..................................................................................................................................................70
4. SALES BUDGET.................................................................................................................................................72
5. Sales Staff Recrui.................................................................................................................................................76
5.1 Recruitment process.....................................................................................................................................76
5.2 Job requirement of Trung Nguyen.............................................................................................................80
6. TRAINING PROGRAM......................................................................................................................................83
7. MOTIVATION......................................................................................................................................................88
7.1 Sales motivational factors............................................................................................................................88

7.2 Employee motivation programs of Trung Nguyen....................................................................................91
8. EVALUATION.....................................................................................................................................................93
8.1 Evaluation of Trung Nguyen coffee brand.................................................................................................93
8.2 Trung Nguyen's sales force assessment process.........................................................................................95
8.3 Evaluate the positions of Trung Nguyen's sales force...............................................................................97

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CHAPTER I: CORPORATE STRATEGY

I: OVERVIEW OF TRUNG NGUYEN COFFE COMBPANY
1. Brief introduction of Trung Nguyen coffee company

Born in the middle of 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 consumers. .

In just 10 years, from a small coffee company 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, the company. Trung Nguyen Instant
Coffee Joint Stock Company, Trung Nguyen Coffee Company Limited, G7 Trading
and Service Joint Stock Company and Vietnam Global Gateway Joint Venture
Company (VGG) with main industries including: production, processing processing
and trading tea and coffee; franchise and modern distribution and retail services. 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, Trung Nguyen now
has a network of nearly 1000 franchised cafes nationwide and 8 overseas such as the
US, Japan, and Singapore. , 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.

2. Company history and development
 Dang Le Nguyen Vu is the founder, chairman and general director of Trung

Nguyen Coffee Group Vietnam; He was honored by Forbes Asia as "Vietnamese
Coffee King".
 In 1990, he entered the Central Highlands Medical University, during this time he
also started the process of researching about coffee.
 In 1996, he and 3 other friends established "Trung Nguyen Coffee Company"
with only roasting, grinding coffee and delivering it to other shops.
 After 2 years with the accumulated capital, he and his friends established the first
Trung Nguyen coffee shop in Ho Chi Minh.
 In 2000, Trung Nguyen coffee entered Hanoi capital and implemented the
franchise model. For the next 2 years, Trung Nguyen Group successfully
franchised in Japan and Singapore.
 In 2008, Mrs. Le Hoang Diep Thao-wife of Mr. Dang Le Nguyen Vu at that time
established an office in Singapore. By 2010, Trung Nguyen had exported to more

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than 60 countries around the globe and conquered difficult markets such as the
US, Japan, China...
 In 2016, Trung Nguyen became the largest coffee shop chain in Southeast Asia.
Up to now (4/2021) in Vietnam Trung Nguyen has 431 coffee shops, including 354
Trung Nguyen E-Coffee and 77 Trung Nguyen Legend stores. In addition, in the
international market, Trung Nguyen Legend has successfully joined the system of
large global supermarket chains such as Metro in Russia, Costco in Australia and
Costco Business Center in the US, 7-Eleven in Thailand, Lotte and Homeplus of
Korea
3. Vision and mission
- Vision: To become a corporation that promotes the rise of the Vietnamese

economy, maintains the autonomy of the national economy and arouses and
proves a desire for Dai Viet to discover and conquer.
- Mission: Building a leading brand by bringing coffee drinkers creative
inspiration and pride in Trung Nguyen style imbued with Vietnamese culture
4. Product lines
1 Premium Trung Nguyen Coffee
- Weasel weasel coffee
- Legendee weasel coffee
- Creative 8
2 Roasted Coffee
- Group of popular roasted and ground products
- Group of processed products 1, 2, 3, 4, 5
- Group of innovative products 1, 2, 3, 4, 5
3 Pure coffee beans
4 G7 instant coffee
5 Fresh Coffee

6 Brothers sweetened condensed cream
7 Retail Items
- Great aluminum filter
- Copper drum aluminum filter
- Trung Nguyen Legend thermos bottle - white
- Trung Nguyen Legend thermos bottle-black
- Trung Nguyen Legend thermos bottle - silver
8 Paintings and umbrellas
- Trung Nguyen E-Coffee canvas painting
- Paintings of great beauty-beauties
- E-Coffee Central Highlands

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II: ENVIRONMENTAL ANALYSIS OF TRUNG NGUYEN COFFEE

II.I MACRO ENVIRONMENT

1. Economic factors
Vietnam is on the rise with many new opportunities for cooperation and integration,
which has a great impact on businesses in our country and for Trung Nguyen this is an
opportunity to integrate and develop into the international market. .

When the economy develops, income increases, demand also increases, creating
conditions for production and business to develop. According to the website of the
General Statistics Office, in general, Vietnam's economic growth rate has grown

significantly over the years. In 2020, despite the strong impact of the Covid-19 pandemic,
the scale of Vietnam's digital economy will still reach 14 billion USD, contributing about
5.2% of GDP with the strong development of the digital economy. information
technology, e-commerce; telecommunication. The "e-Conomy SEA 2020" report also
shows that Vietnam and Indonesia are the two countries with the leading digital economic
growth rates in the ASEAN region with an average growth rate of 27% in the period
2015-2020.

-But now our country is still a developing country, the average income is more than 60
million VND/year, with such an income level, spending for a cup of coffee costs from
40000-70000 VND is the most important thing. difficult.

According to Euromonitor's assessment, the coffee and tea chain market in Vietnam has
an annual scale of about 1 billion USD, but no unit has yet won an overwhelming market
share. Including popular names such as Highlands Coffee, Starbucks, The Coffee House,
Phuc Long and Trung Nguyen also account for less than 20% of the market share. Recent
research by the World Bank shows that Vietnam's domestic market can consume up to
70,000 tons of coffee per year. That is, with a coffee output of 700,000-800,000 tons/year,
domestic coffee consumption reaches nearly 10%. Meanwhile, according to the World
Coffee Association, domestic consumption of Vietnamese coffee is currently only nearly
3.6%, the lowest level among coffee producing countries

2. Nature
Weather and climate, soil also affect the quality of coffee beans. If the weather is not
favorable, coffee cultivation is affected, the supply of coffee is not guaranteed, directly
affecting the business of the store. The weather in Vietnam in recent years has become
more and more erratic. Droughts, floods, landslides, storms and floods have complicated
developments, seriously affecting our country's economy which depends heavily on
agricultural production.


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3. Politics

With a stable political environment, together with policies and decrees to support
businesses to develop, and protect the legitimate rights and interests of businesses in our
country, it has created many favorable conditions not only for Highland Coffee but also
many other businesses have an environment for sustainable development.

In addition, the source of raw materials of domestic coffee chains is the domestic source
of coffee, our country has many policies to support the development of both coffee
resources, thereby obtaining both quality and together raw materials. resonate to develop
with the coffee growing industry.

- Coffee is protected by the state in terms of rights and brands, supports product prices
and facilitates exports to foreign countries, besides, the state establishes a coffee
association to operate and develop coffee. with the purpose of thoroughly grasping the
lines and policies of the State Party, protecting each other from monopolistic acts, market
disputes that infringe upon the interests of enterprises, and protecting the interests of
Vietnamese coffee in the market. With the accession to WTO, Vietnam's coffee industry
has had a new transformation, especially Trung Nguyen coffee has been known not only
in the country but also in the foreign market, creating more development orientations

4. Social factors

The attraction of delicious flavors has brought coffee beyond Ethiopia, spread across

continents and quickly become the most valuable agricultural commodity in global trade.
The most prominent trend in 2009 was the introduction of new coffee products using
healthful flavors for consumers.

The International Coffee Organization has collaborated with many reputable research
institutes and universities to research and clarify the relationship between coffee and
health. Drinking coffee will help reduce the risk of hepatocellular carcinoma or liver
cancer for short, drinking coffee can help cure eyelid spasms, reduce the risk of bowel
cancer by 25%, bile cancer by 45% , pulmonary fibrosis 80% and Parkinson's disease 50-
80%. Although people have mentioned the toxic effects of acrylamide and furan as
carcinogens to rodents, the levels of these substances in coffee are negligible.

Thereby, showing many benefits of coffee for human health, especially anti-aging effects.
Currently, consumers increasingly attach importance to the evaluation of coffee quality.

Vietnam, as well as some neighboring Asian countries, have a long tradition of drinking
tea. Drinking coffee is a new habit introduced to our country not long ago, except for a
few people who have had the habit of drinking coffee in the style of the French before.
The introduction of coffee into the culinary culture of Vietnamese people is a long-term,
enduring work that cannot be overnight.

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Trung Nguyen has a prominent advantage, that is, it is located right in Buon Ma Thuot,
the hometown of coffee. Therefore, Trung Nguyen easily creates cultural similarities with
coffee material suppliers as well as easily creates the characteristics of Vietnamese coffee

in each of its coffee products. This is the point. Trung Nguyen's strength compared to
other competitors when building trading relationships and brand image.

5. Population factors
Vietnam, a country with 58 million people of actual working age (between 15 and 64
years old), is in the "golden population" period: on average, two workers support one
dependent. there is a “golden” opportunity when employing an abundant young
workforce

In the second quarter of 2009, the Institute of Policy and Strategy for Rural Development
conducted a study on domestic coffee consumption in two big cities, Hanoi and Ho Chi
Minh City. Survey results from 540 families, 60 coffee drinkers at coffee shops and 40
coffee shops in Hanoi and Ho Chi Minh City show that coffee consumption in both cities
has increased in quantity and value. One of the main reasons for that is the emergence of
many Western-style cafes and people's growing preference for high-quality coffee.

This survey shows that customers in their youth and adolescence have the fastest increase
in coffee consumption, both in terms of powdered and instant coffee. Young and middle-
aged groups have the highest level of coffee consumption. The old age group increased
consumption very little and only increased consumption of powdered coffee.

In terms of industries, those who work a lot on the mind and have professional skills,
technicians consume the most coffee. Consumption also increased sharply in unskilled
labor.

The South has 4-5 times higher consumption than the North and Central regions. Surveys
in two big cities show that, in 2008, the average family in Ho Chi Minh City consumed
6.1 kg of coffee/year, 3 times higher than in Hanoi. In Ho Chi Minh City, more coffee is
consumed at the cafe. In contrast, Hanoi drank more at home and a significant group
drank in the office.


6. Technology infrastructure

Trung Nguyen is a large corporation with solid infrastructure that is fully qualified to
perform and manage basic operations with the best efficiency: Having its headquarters
and distribution center in the shopping center is Ho Chi Minh City along with branches in
other major cities across the country. Besides, there are 2 production factories with the
most advanced technology machines, bringing unique products with Trung Nguyen's own
characteristics.

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Moreover, the market for equipment and machinery for coffee production is not
diversified due to the absence of new technologies. Therefore, the pressure of
technological innovation to enhance competition for Trung Nguyen is negligible.

II.II: MICRO ENVIRONMENT

1. Customer
-The customers that G7 cafe in particular and Trung Nguyen Group in general aim at are
all coffee enthusiasts around the world, regardless of age, gender, geographic location or
work income. In Vietnam, the instant coffee market in the North has stronger growth than
other regions, because consumers here are tending to switch from the traditional drink of
tea to coffee. With the promotion based on the national spirit, G7 has attracted a lot of
customers (mostly in the North).
-Consumer market:

-Trung Nguyen's customers are quite diverse with all types of subjects: from young
people, traders, freelancers, unemployed to office workers, people with high incomes,
and the elderly.
-The largest amount and value of coffee consumed falls in the middle-aged (35-50 years
old) and old (over 50 years old) age groups, but the young (15-35 years old) group tends
to increase consumption. strong coffee
-Occupation: Technician, management leader, professional, office worker and service
industry worker
-The style and habits of each person when drinking coffee are not the same:
-Stay awake at work or study
-Enjoy the taste of coffee
-Come to coffee to receive partners
-Because the company's famous brand -> more stylish, more professional style,
-Weaknesses: Trung Nguyen's strategy is aimed at the majority of Vietnamese consumers,
without clearly defining target customers.
-Solution: Find out the market gap, market segment, target customer segment
-Institutional market
Organizations, schools, hospitals, NGOs, non-profits,...
2, Supplier

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• Coffee
- Because of the advantage of being located in Buon Ma Thuot area - the coffee capital,

because today the intermediary companies that supply raw materials face many

difficulties, many companies default → Trung Nguyen uses direct purchasing.

Direct purchasing: Invest in and manage farmers' coffee farms, turn coffee farms into a
part of the business → take initiative in raw materials
• Packaging

- Phuong Nam Packaging Production Trading Co., Ltd
- Vietnam Packaging and Printing Ink Company Vinapackink.
• Machinery and equipment
-Neuhaus Neotec Company - the world's leading manufacturer of coffee processing
equipment in Hoykenkamp - Germany.
3. Marketing intermediaries

-With the goal of its products spreading throughout Vietnam and around the world, Trung
Nguyen has made distribution with many different channels.
- Trung Nguyen maintains a franchise system (franchised stores) including more than
1000 coffee shops throughout Vietnam and abroad such as the US, Japan, Thailand..
Consumers can also find G7 products in small grocery stores, meeting the needs of
convenient shopping, close to the home of Vietnamese people.
-G7 mart system is also a modern and huge retail distribution system of Trung Nguyen
with the selling price being the price offered by the manufacturer and agreeing on the
same price nationwide.
Trung Nguyen also conducts media marketing on television, advertising posters with
impressive slogans to reach consumers faster,
4. Competitor
Direct:
• Nestle's Nescafe
+ Advantages:
- Is a famous and long-standing coffee brand in the world (1938).
- Diversity of coffee products

- Know how to adapt and develop products, launching products that are suitable for
Vietnamese people's taste
- Distributed all over the country so consumers can buy easily

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+ Disadvantages
- The price is higher than Trung Nguyen's similar products
- Because it belongs to a foreign company, it is difficult to approach customers with the
idea of "Vietnamese people use Vietnamese goods"
- Not using modern distribution system yet
- Only selling packaged and ready-to-drink coffee, but no instant coffee shop system
• Vinacafé of Bien Hoa Joint Stock Company
+ Advantages:
- Is a long-standing and prestigious brand in the Vietnamese market
- Wide range of products
- Cheap price, suitable for Vietnamese consumers
- Strong distribution system makes it easy for consumers to access products
- Be the exclusive partner to supply products for all flights of Vietnam Airlines.
+ Disadvantages:
- Weak facilities, outdated technology
- Roasted coffee occupies a small market
- Adventurous Marketing Strategy
And Café Vinamilk of Vietnam Dairy Products Joint Stock Company – Vinamilk,
Maccoffee of Food Empire Holdings
Indirect:

• Gold Sting
• Monster Energy Drink
Latent:
Besides 4 direct competitors like on Trung Nguyen coffee, Trung Nguyen coffee is facing
potential domestic competitors such as Thai Hoa, An Thai, Phu Thai, CADA, VICA...
However, the above 5 brands has become familiar to consumers for a long time, it is very
difficult to change habits. Therefore, the barriers to entry for potential competitors are not
high.
5. General Public

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 Trung Nguyen has implemented quite successful PR plans with clear results such
as:

- Trung Nguyen collaborated with Thanh Nien newspaper, Vietnam Youth Union to
launch the program "Creativity for Vietnamese Brands"

Trung Nguyen and Vietnam Television established the Investment Fund "Initiating
Creativity" to finance the winners of the VTV3 Startup program -> encourage and create
opportunities for the young Vietnamese generation to practice implementing innovative
projects and business ideas =>> contributing to nurturing young business talents for the
country. Funding capital 2 billion VND.

-Besides, Trung Nguyen also cooperated with Youth Newspaper to implement the
program: "Our country is small or not small". Launching the "war for Vietnamese brands"

by Trung Nguyen is also highly appreciated. Trung Nguyen with the program Building a
brand of Vietnamese agricultural products...

 Trung Nguyen participates in sponsoring the following programs:
-Sponsoring the program "Connecting big arms" for the poor organized by Hanoi Moi
newspaper, Sai Gon Giai Phong newspaper, Da Nang newspaper from June to July 2004 -
Journalism month for the poor. In this program, Trung Nguyen donated 1 billion VND.

-Participate in supporting Vietnam's Agent Orange victims in the humanitarian program
"We are not emotionless" of Vietnamese television: 10 million VND

-Support the charity program "Connecting the heart" to perform heart surgery for
children with congenital heart disease in difficult circumstances of the HCM Red Cross:
40 million dong..

- Trung Nguyen also organizes the program "G7 Ultimate Festival" to promote the brand
with 35000 people participating in this festival.

III. ANALYSIS OF PESTEL MODEL OF TRUNG NGUYEN
1. Political-Legal
 Strength:
- Political stability: “Political stability enables Vietnam to enjoy peace and
prosperity”
 helping Trung Nguyen coffee enterprises have a stable business environment
for long-term development.
- Tax policies : In the context of the epidemic situation, which continues to break
out, businesses, especially small and medium enterprises, face extremely difficult
difficulties. Vietnam has also basically issued many policies, especially tax

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solutions, to support businesses to overcome difficulties affected by the COVID-
19 epidemic..
 reduce financial burden on Trung Nguyen coffee.
- Level of government intervention: Level of government intervention: The State
manages the economy, orientations, regulates and promotes socio-economic
development by means of laws, strategies, master plans, plans, policies and forces.
material quality, complying with the development of the market, complying with
the rules of the market economy, compatible with the practices of other countries.
 Trung Nguyen Coffee enjoys considerable support from the state.
- Competition law: Competition Law was changed on September 13, 2018 to help
protect the competitive environment; fair competition between businesses in the
market- ensures the legitimate rights and interests of Trung Nguyen coffee and
Vietnamese consumers.
- Regulations on safety and consumer protection:
+ Consumers are guaranteed the safety of life, health, property, other lawful rights
and interests when participating in transactions, using goods and services provided
by organizations or individuals trading goods and/or services. supply service.
Provided with accurate information
+ Selection of goods, services, business organizations and individuals
+ Give opinions to organizations and individuals trading goods and services on
prices, quality of goods and services, service styles, and transaction methods.
 Trung Nguyen all meet the criteria of consumer protection:

+ Trung Nguyen coffe's dishes are all researched on consumers' health
+ The production processes are also strictly controlled to ensure food safety

and hygiene
+ Trung Nguyen coffe also has forums for consumers to contribute their
assessment of service quality in Trung Nguyen.
 Weakness:
- - The political and legal system in Vietnam is relatively stable, creating
opportunities for coffee companies to expand production with peace of mind.
However, the inconsistency in some regulations of the State has created conditions
for enterprises with 100% foreign capital (FDI) to circumvent the law and have the
risk of monopolizing the raw material area of Vietnam's coffee production.
- Labor Law:
Ex: working no more than 8 hours/day
Ceremonies are still paid
Trung Nguyen's stores are open for sale from 7 a.m. to 10 p.m., so they have to
create two streams of employees working for each shift to ensure employees' labor
rights, and the number of employees to serve.

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 create financial pressure to train employees as well as pay employees per shift.
2. Economic

 Strength
- From 2002 to 2018, Vietnam's GDP per capita increased 2.7 times, reaching over

USD 2,700 in 2019, with more than 45 million people escaping poverty. The
poverty rate dropped sharply from more than 70% to less than 6% ($3.2/day at

purchasing power parity). Even during the Covid epidemic, GDP growth is
estimated at 2.9% in 2020. Vietnam is one of the few countries in the world with
positive economic growth during this period. The economy is forecast to grow
6.6% in 2021 if Vietnam manages to control the spread of the virus well, export-
oriented manufacturing industries perform well and domestic demand recovers
strongly.

- Gross domestic product (GDP) in 2019 achieved impressive results with an
increase of 7.02%, import and export turnover exceeded 500 billion USD.

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With such amazing economic development of Vietnam, people's living standards
are improved, infrastructure is developed, technology is increasingly advanced, ..
  Trung Nguyen coffee thus has a fertile market. In 2016, Trung Nguyen

Group's revenue reached over 3,800 billion VND. The figure increased to
3,951 billion VND in 2017. In 2018, Trung Nguyen Group's revenue increased
sharply compared to the previous year, increasing by more than 400 billion
VND to 4,360 billion VND.
- - Inflation in Vietnam tends to increase, affecting production activities, especially
enterprises. However, with the current falling Vietnamese currency, Trung Nguyen
is an opportunity to penetrate the domestic as well as international markets
because Trung Nguyen's products will be cheaper than foreign products, thus
reducing the threat. from foreign competitors
 Create opportunities to increase external sales.

- - Vietnam is on the way of development with many opportunities for cooperation
and extensive international economic integration
 Create favorable conditions for Trung Nguyen to expand its market as well as
make it easier to call for investment capital from abroad
 Weakness
- - Vietnam imposes a tax rate of 16-20% on green coffee, 35% on roasted coffee,
43% on instant coffee and 10% VAT on uncaffeinated roasted and ground coffee.
The same for Brazil is 10, 10, 16 and 13%; Colombia is 10-15, 15-20, 20 and

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10%. It can be seen that the tax on coffee in Vietnam is very high (before the covid
epidemic).
 This may inhibit the development of the coffee industry in general and Trung

Nguyen coffee in particular.
- Price affects the revenue of the business:

+ With Brazil and Vietnam as the world's top coffee producers, the exchange rate
of the USD against the Brazilian Real and the Vietnamese Dong can have a
significant impact on coffee prices. The decrease in the value of local currencies of
coffee exporting countries will encourage farmers to increase their export output
while reducing their production costs. A decrease in the USD will make coffee
prices go up and vice versa, when the USD increases, it will put downward
pressure on coffee prices..
+ Most of the coffee groups tracked by ICOs have recorded bullish momentum

since June 20201 and hit multi-year highs. In which, the Colombian Arabica
coffee price index reached 206.53 US cents/lb, up 3.8% month on month and
40.3% over the same period last year, which is the highest average monthly price.
since October 2014.

Daily Coffee Price Index tracked by ICO (Source: ICO)
 With the complicated fluctuations of coffee prices, Trung Nguyen Coffee has to
adjust the output of many different products, and must monitor cash flow and price
regularly to ensure the organization's revenue.

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- - Currently, our country is still a developing country, the average income is more
than 60 million VND/year, with such an income, it is difficult to spend on a cup of
coffee priced from 40000-70000 VND.
 People's income is still low, the demand for a cup of high-class coffee is not
high, so it is difficult to compete with cheap street cafes.

- - Currently, Vietnam's economy is quite unstable, the growth rate is increasing, but
it is accompanied by rising inflation. Inflation makes the cost of space, raw
materials and labor go up very quickly. The cost of coffee has increased by 25%,
the premises increased by 10-20%. Even cups, bags, and straws cost 10-20%.
"There are materials that increase by 20-30%.
 The devaluation of the currency causes many difficulties for Trung Nguyen's
business activities, especially in raw material procurement.


3. Social
 Strength

- Trung Nguyen has an outstanding advantage, that is, it is located right in Buon Ma
Thuot, the hometown of coffee. Therefore, Trung Nguyen easily creates cultural
similarities with coffee material suppliers as well as easily creates the
characteristics of Vietnamese coffee in each of its coffee products.
 This is Trung Nguyen's strength compared to other competitors when it comes
to building sales relationships and brand image.

- Consumers are increasingly interested in products that improve health
The International Coffee Organization has collaborated with many reputable
research institutes and universities to research and clarify the relationship between
coffee and health. Drinking coffee will help reduce the risk of hepatocellular
carcinoma or liver cancer for short, drinking coffee can help cure eyelid spasms,
reduce the risk of bowel cancer by 25%, bile cancer by 45% , pulmonary fibrosis
80% and Parkinson's disease 50-80%.
 The use of quality coffee shows many benefits to human health, especially
anti-aging effects. Therefore, consumers increasingly attach importance to the
evaluation of coffee quality and that is also the strength of Trung Nguyen, a
coffee company that always puts quality first.

- According to IAM's study on coffee usage habits, 65% of Vietnamese coffee users
drink coffee 7 times a week, leaning towards men (59%). Particularly for instant
coffee, 21% of consumers use instant coffee 3 to 4 times a week and are slightly
inclined towards female consumers (52%). The rate of using coffee at home (In
home) and outside (Out of home) is equal 49%/50%. The most popular time to
drink coffee is from 7-8 am.
Coffee drinking habits: The three main factors affecting the decision to drink
coffee at the shop are taste, style and brand of coffee used, 44.7% of people who

drink coffee at the shop confirm that they have a good taste. taste (specifically,

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most consumers prefer coffee with bitter taste and aroma), 39.9% answered for
style (quiet, luxurious, stylish, easy to gather friends are the characteristics. drinker
attraction), and only 15.4% chose a brand. Today's consumers are also more
sympathetic to coffee products made from clean ingredients.
 Therefore, we can see that Vietnam is a potential market for the development

of the coffee industry and from the coffee consumption habits of Vietnamese
people, Trung Nguyen can easily identify the demographics and make
recommendations. product diversification strategy to meet the increasing needs
of customers.

 Weakness
- Many world-famous coffees have been imported to Vietnam such as Espresso,

Cappuchino, Latte,... If before, everyone could easily make a cup of traditional
coffee, now making coffee is a whole thing. art. Not only admire the cafe space,
customers also want to see the unique shape of a cup of coffee.
Coffee cups with milk foam with eye-catching patterns that people can't bear to
drink require baristas who are proficient in coffee machine techniques and shaping
techniques on coffee cups. The concept of deliciousness with today's new culture
of enjoyment is not only delicious in quality, but also in appearance, "delicious"!
 The demand of coffee users is increasing due to the unique appearance of


competitors from abroad. This forced Trung Nguyen to improve its products to
maintain its position in Vietnam.
- The culture of drinking street coffee in Vietnam is difficult to change, psychology
and culture are obstacles for high-end coffee chains.
- Impacts of migration to the Central Highlands in recent years.
In relation to the whole country, basically, the Central Highlands is still a large and
sparsely populated land, with a population of approximately 1.0 million people,
belonging to about 20 different ethnic groups, of which more than half are the
population. and local ethnic minorities. Experiencing natural and mechanical
population growth after 1975, especially after 1990, the population of the Central
Highlands increased rapidly and abnormally (about 5 million people), belonging to
47 ethnic groups, divided into 2 parts are local ethnic minorities (13 ethnic groups)
and new arrivals (34 ethnic groups). It can be said that nowhere in our country and
other countries in the region has the mechanical population growth rate as rapid
and strong as in the Central Highlands in the past 20 years. The process of mass
migration, mostly spontaneous migration of the Kinh and northern ethnic
minorities in recent years, has strongly affected the multi-faceted life of the
Central Highlands in general and of the ethnic minorities. ethnic minorities in the
Central Highlands in particular

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In addition, the above also greatly affects the level of people's knowledge as
well as the ability to intensively cultivate coffee in this area. For example, at
the end of 2010, in Hoa Dong commune - Krong district - Pak - one of the key

input areas of Trung Nguyen coffee company, because people lacked
knowledge about selecting varieties that are not only delicious but also must
be selected. healthy, good drought tolerance caused a serious crop failure,
greatly affecting the input material for Trung Nguyen coffee.
 Trung Nguyen needs to come up with solutions to help improve knowledge on

cultivation as well as awareness on coffee selection to improve the source of
raw materials and avoid risks.
4. Technological
 Strength
- Trung Nguyen coffee processing factory is invested with a total investment of
more than 40 million USD, built on an area of 27,000m2 and divided into 2
phases. In the first phase, nearly 20 million USD will be invested in the
construction of infrastructure and basic operating systems. Phase 2, will continue
to invest the remaining investment capital for the procurement of operating
equipment systems, machinery and technology according to the world's most
modern standards, and at the same time building and expanding the building.
machine add 50,000m2. It is expected that the factory design capacity will reach
more than 60,000 tons of processed coffee per year and as planned
Along with a closed roasting-grinding-packing line according to German
technology, Trung Nguyen has pioneered in investing in an instant coffee
production line with modern cold-drying technology - this is the most advanced
technology in the world. The first world to be invested in Vietnam. With this
technology,
 Trung Nguyen will contribute to affirming its pioneering position in the field of
convenient coffee in Vietnam and prepare Trung Nguyen in a direct
competition with global coffee brands and demonstrate its determination to
make The goal is to conquer the world.
- The market for equipment and machinery for coffee production is not diversified
due to the low appearance of new technologies.

 Therefore, the pressure of technological innovation to enhance competition for
Trung Nguyen is negligible.
- - Despite facing difficulties due to the impact of the Covid-19 pandemic, Trung
Nguyen E-Coffee still maintains a strong growth rate in store coverage
nationwide, affirming its position as a retail store system. The world's number 1
coffee retailer in Vietnam. In order to adapt to the "new normal" business
conditions, Trung Nguyen E-Coffee's model has quickly transformed into new
business methods, applying technology on online purchase platforms such as:

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Grab, Now, Go Food, Loship applications, promote cooperation with online
payment partners, combine door-to-door delivery when ordering via hotline
 Help optimize the customer experience.
- - In an effort to bring energy coffee products closer to every customer in the
context of online shopping being a trend, Trung Nguyen has built a different
energy coffee space, especially on the basis of online platform, called Coffee
Hypermarket. This is where coffee enthusiasts can: shop for excellent quality
coffee products; search for equipment and preparation tools; study the secret of
effective business
 Expansion of new business model
 Weakness
- - Although there is a convenient online platform for Trung Nguyen's business such
as Coffee Hypermarket, the old system interface does not bring the best user
experience.
 Make it difficult to expand the customer base and operate new business models.

- - In the midst of the current growing era, it is inevitable that new technologies
from developed countries are imported into Vietnam, causing competitive
pressure, causing businesses to innovate in technology and business. Coffee is no
exception. Recently, on social networking sites, a type of Chinese compressed
coffee is being imported into Vietnam, and the online community named this
coffee "Instant Coffee 4.0" because of its convenience. Using, unique technology
and good for health, users just need to press the button at the other end of the
coffee stick compressed into a glass of water to have a cup of coffee of the same
quality as a coffee shop. .
 This more or less also causes competitive pressure on the Vietnamese coffee

market.
5. Environmental

 Strength
- - Trung Nguyen's raw materials are purchased from Gia Lai, Dak Lak, Buon Ma

Thuot and Lam Dong, so the supply depends greatly on the natural conditions
here:
Basalt red soil: The soil in the Central Highlands is more than 80% fertile basalt
soil with high porosity, suitable for industrial crops to grow, especially coffee.
Coffee farmers do not need to invest as much fertilizer as other areas, taking time
to take care of fresh pepper, so coffee trees produce better yields..

The altitude is about 1300 - 1500m above sea level:This is the ideal height to get
the best quality coffee beans and the Tay Nguyen area meets this standard. The
cold, foggy climate creates favorable conditions for coffee trees to grow.

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High day and night temperature difference:The weather in the Central
Highlands is quite pleasant, the day is sunny but the night is cold. The large
weather difference is one of the main factors that make the quality of coffee in this
area better.

High air humidity:The weather in the Central Highlands, especially Da Lat, is
lying around, the humidity is high to meet the humidity requirement of over 70%
for the whole coffee tree to grow well. High air humidity reduces plant water loss
through transpiration. However, this area does not rain much, so pests and diseases
do not have many opportunities to thrive.

 The above factors have helped the Vietnamese coffee industry in general and
Trung Nguyen coffee in particular have a rich and abundant supply of raw
materials.

 Weakness
- - Climate change can have a very noticeable impact on coffee production in many

aspects such as quality, yield, disease, watering and global coffee production:
+ As the temperature increases, the coffee ripens faster leading to a decrease in
quality.
+ Increased temperature affects many aspects of the metabolism of coffee plants
such as flowering, photosynthesis, respiration and material synthesis, which will
affect coffee yield.
+ Rising temperatures will promote the proliferation of certain diseases as well as
allow distribution to areas that were previously absent.

 As a result of all the environmental variation, it is likely that the area suitable

for growing high-quality coffee will be smaller. Trung Nguyen Coffee as well
as the coffee industry has to face climate change
- Currently, the demand of customers is increasingly directed to products that are
not only good for health but also have to protect the environment.
 Therefore, Trung Nguyen needs to focus on sustainable projects to protect the
environment as well as diversify the needs of customers.
- - The processing of coffee can seriously affect the environment. Through review
by specialized agencies, one of the causes leading to environmental pollution from
coffee processing is spontaneous, small, scattered, unskilled coffee production and
processing establishments. waste and wastewater treatment technology according
to regulations; awareness of environmental protection of households, coffee
production and processing establishments is still limited, often discharging wastes
directly into the environment, polluting water, soil, air... Up to the present time ,
the waste treatment system of household-scale coffee processing establishments is
not secure; Specialized agencies have not yet received the application for

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