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1. About Highlands Coffee: ... 3

2. Customer Insights and STP ... 5

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1. About Highlands Coffee:

If you are passionate about coffee and fast food in Vietnam, surely Highlands Coffee is not a strange name to you.

a. Highlands Coffee and its birth history?

“Highlands Coffee is a very familiar name to those who are passionate about coffee or fast food in ” Vietnam, especially young people or those who have worked. Highlands Coffee was founded in 1999 by a Vietnamese-American businessman named David Thai, who has a strong love for his homeland and is willing to leave his family in the US to set up a career in Vietnam.

Viet Thai International Joint Stock Company was founded by David Thai, who also owns Highlands Coffee. By 2008, David Thai's Viet Thai Group had served more than 4 million cups of coffee and 2 million meals to 5 million customers. This is an impressive figure for established coffee and fast food brands in Vietnam.

In 2009, Viet Thai Group opened 80 sales points in provinces and cities such as Hanoi, Ho Chi Minh City, Da Nang, Dong Nai, and Vung Tau. By 2011, Highlands Coffee had 50 stores and bought the Pho 24 chain for $20 million.

Highlands Coffee's main products are beverages (including soft drinks, coffee and fruit juices) and fast food (including bread and meat).

b. The origin of coffee in the Central Highlands.

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Highlands Coffee is derived from Vietnamese coffee. Before Highlands Coffee was born, Vietnam was in the top 3 largest coffee exporting countries in the world, so Vietnamese people only focused on exporting products to other markets but forgot about building a coffee culture for themselves. his hometown. At this time, Highlands Coffee appeared on the market with the desire to create a unique Vietnamese coffee culture exclusively for Vietnamese people, creating a space for Vietnamese people to sit together, share their hearts and minds. Spend time with friends while enjoying a delicious cup of coffee. To ensure that it is a brand imbued with Vietnamese coffee culture, Highlands Coffee is always very careful in choosing partners. To find the most suitable and quality supplier, the brand searched each coffee plantation and tea hill on the map of Vietnam.

The drinks that Highlands Coffee offers are made from carefully selected coffee beans or tea leaves of the highest quality.

When it was first established, Highlands Coffee had famous names in the domestic and international coffee market, however, this brand became prominent with its own story, origin and respect for each coffee bean. Up to the present time, Highlands Coffee is also one of the leading coffee brands in Vietnam that is focused on Vietnam by a series of "big men" in the world, owning a loyal customer base with invaluable reviews. equally positive.

c. Who is the owner of Highlands coffee?

As mentioned in the article, Highlands Coffee was founded by a Vietnamese-American who returned to his homeland with a deep love of the country and a desire to contribute to it.

David Thai was born in Vietnam in 1972, but when he was 7 years old, his family moved to settle in Seattle, USA. He studied at a very prestigious university in the US - University of Washington, Faculty of Business Administration. However, David Thai feels that he does not fit the environment there and is not

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completely satisfied with the knowledge he has acquired. According to David Thai, he only inherited the American accent, lifestyle and education, but basically, he is still Asian.

Therefore, David Thai nurtures his dream of returning to Vietnam to set up a business, by telling stories from his parents and spending 2 hours a day learning about Vietnamese culture, David Thai deeply understands the identity of the Vietnamese people. .

David Thai returned to Vietnam for the first time in 1996 with only about $1,000, under a Vietnamese scholarship. David Thai's initial desire was to return to Vietnam to find the person he wanted, but after studying and working here for a while, David Thai came up with the idea of starting a business with a small capital and investor support.

2. Customer Insights and STP 2.1 S(Segementation)

-Geographic segmentation: Appearing in most of the large buildings and commercial centers in Hanoi and Ho Chi Minh City, the outdoor locations are unique, where the majority of Highlands' target customers are concentrated.

-Demographic segmentation: Highlands Coffee is targeting customer groups such as: +Middle-class consumers: those with economic independence, with an average stable income of 5,000,000 VND/month or more.

+Young people and writers room: people with a stable and decent income. These people have a general ’ tendency to need an elegant but not particularly luxurious place to meet friends or partners, or a light but youthful, modern-style space to work or relax.

+Foreign guests in Vietnam: are people (foreigners) who like what is typical of Vietnamese culture and taste, different from their daily traditional products.

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-Psychological segmentation: Customers will feel that sitting in a luxurious Highlands coffee shop will get more attention, or if they take a selfie in a modern space of the shop and post it on social networks, they will get more attention and attract more attention. For those who work, having income when meeting customers at the shop will be trusted and appreciated by customers compared to other popular cafes, so they will feel more confident and comfortable.

-Behavioral segmentation:

+Demand for food: Vietnamese consumers are changing their minds and coffee brands as well as consumer brands must change. After a period of eagerness for the "Western" experience, Vietnamese consumers are turning to traditional values and tastes. Grasping that trend, Highlands has launched quintessential products from the best and best pure coffee in the highlands of Vietnam to serve customers. Highlands not only serves coffee but also other drinks such as tea, juice, and food. At Highlands, customers can enjoy world-famous coffees such as Espresso or a cup of pure Vietnamese iced coffee. In addition to the variety of coffee or drinks, Highlands also serves light snacks such as cakes and sandwiches to meet the more diverse needs of customers.

+Demand for entertainment: With gentle background music, Highlands Coffee both creates a feeling of relaxation and an aristocratic luxury, the store provides full facilities for customers to enjoy a cup of coffee and entertainment such as wifi, Air conditioning, or very comfortable seats. The atmosphere here is very exciting and not too crowded and noisy (because of the reasonable seating arrangement system). Friendly, warm service style accompanied by a very bright smile of the staff like dispelling fatigue of customers.

+The need for self-expression: in the current age of technology and the growing young population, young people tend to want to express themselves more than they used to. The vast majority of people when choosing 1 to drink coffee or meet friends want people to see that 1 is a stylish person with a good income.

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2.2. T(Targeting)

Highlands Coffee is aimed at middle and high-end customers who are willing to pay above-average rates and the frequency/habit of using the service over and over again. Highlands Coffee always focuses on creating a comfortable and exciting atmosphere for customers to enjoy every day. We can easily see many artists and journalists entering the shop for work purposes. Business people as well as office workers are no exception. With a large capital investment, Highlands is large in scale and is a great advantage to help Highlands occupy beautiful premises and quickly expand its chain of stores. If in 2014, Highlands only had 60 stores, by 2019 the number has reached 300 out of 26 provinces.

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2.3. P(Positioning)

If in the past, Highland Coffee in the minds of customers was a high-class, luxurious coffee brand for businessmen, intellectuals, or people with a decent income, now Highland has become "popularized". closer, closer, and serving all classes of customers.

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In 2012, Highlands Coffee sold 49% of its business in Vietnam to Jollibee, the purpose of Highlands Coffee in this deal is that Jollibee will bring the Highlands Coffee brand into Jollibee's stores, helping to increase market share thanks to the number of previous customers. This is Jollibee's. After the combination of Jollibee, many customers said that this chain had a difference in layout, in the direction of simplicity, modernity, and maximum space.

"In essence, we are still a Vietnamese brand for Vietnamese people, but we will attract foreign guests who love the typical Vietnamese coffee and cake," said Mr. David Thai. In foreign markets, consumers prefer what is typical of Vietnamese culture and taste, different from their daily traditional products. The value of tradition has also forced most of the major Western brands to adopt it. Mcdonald’s in India has reduced beef and pork portions from the menu to respect the religion of the Hindus and Muslims who make up the majority of the Indian population. KFC has Chinese menus with typical sweetness. Starbucks entering Vietnam also used Vietnamese art and decorations in its first store in Saigon to create a localization with "Vietnamese flavor"... no reason why service Vietnamese products are "Westernized" to compete with foreign competitors.

3. Marketing plan 3.1. KPI and Objectives

- Increase Growth Rate - Increase brand awareness - Expand the range of customers

- Consolidate the No. 1 position in the Vietnamese coffee market - Launch more large-scale advertising campaigns

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3.2. Marketing Mix:

3.2.1. Product:

3.2.1.1. Levels of product and services

- Core customer value: As a coffee drink with outstanding quality, Highlands products are not only a "drink" to satisfy the needs of refreshment but also for customers to "enjoy". Customers come to Highlands not because of the great coffee, they come to enjoy a lifestyle that they feel extremely close to. Not only selling coffee, but Highlands also "sells" passion to customers. Besides, a drink will be a "medicine" to help you stay awake and refreshed, a glass of drink allows them to freely relax, rest, and escape from the summer sun.

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+ Quality level: Highlands selects the best coffee beans grown at high altitudes. With a team of expert agronomists testing the soil, testing samples, and providing free advice to every coffee farmer to ensure quality products. Highlands only select the ripest coffee berries: red, ripe, and perfect are three words to describe them. Then proceed to classify many times by size, color, and density. For them, the ability to accept defects is zero to have a perfect coffee.

+ Features:

Freeze: is a very effective cooling iced drink, is a Vietnamese-style iced drink made from pure Vietnamese ingredients with crushed ice and jelly. If you are a person who loves what is new and stylish to inspire. Immediately enjoy the unique, natural-flavored blended ice drinks at Highlands Coffee to awaken all your senses, helping you to always be full of life.

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Tea: The natural, delicious taste of Vietnamese Tea with a modern style at Highlands Coffee will help you evoke your taste buds and enjoy a feeling of refreshment and freshness. Highlands Coffee's tea products are for customers who can't drink coffee or want to experience the fresh taste of traditional tea.

Filtered coffee: Roasted and ground coffee are slowly extracted drop by drop through a metal filter called 'Phin', as well as expressing the depth of each thought and sincerity in relationships. existing system. You

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can choose to drink hot or drink with ice, with or without condensed milk. Highlands Coffee is proud to serve Vietnamese coffee in the traditional Vietnamese way.

Phindi: A whole new generation of Vietnamese Phin Coffee, serving the young generation full of enthusiasm, independence, and creativity. Still carries the essence distilled from Vietnamese Phin Coffee but is smooth of Phin, a unique combination with delicious flavors from Milk Cream - Almond - Choco. PhinDi, New Generation Phin Coffee - Quality Phin Smooth, Full of Flavor!Espresso Coffee: Forget the chaos of life to find small joys from Highlands Coffee's Espresso Coffee. The secret to the rich and delicate flavor of a cup of Espresso coffee is the unique and elaborate blending method between two premium Arabica and Robusta coffees, and especially the indispensable brewing skills. Masterfully crafted by our Baristas.

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-Core customer value: Highlands has created loyalty for customers, turning Highlands Coffee shops into "third place" ("home" and "office" are "first" and "second" places). Highlands Coffee has expanded and increased internet connection speed, meeting the needs of customers when sitting and enjoying, besides, Highlands Coffee also plays music to help customers relax and be more comfortable. Highlands Coffee also created a website to help customers update store news when there are promotions, and discounts, ... to help customers easily find information about products.

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3.2.1.2 Product mix:

- Beverage: The beverage GROUP of Highlands Coffee includes 6 groups: Filter coffee, Phindi, Espresso coffee, Tea, Freeze, and other drinks. But there are only 3 main groups: Coffee (coffee filter, phindi, Espresso coffee), Tea (Lotus tea, fruit tea, green tea), and Freeze. And in these 3 main groups, there will be 1 representative product for each group:

- Phin Milk Ice represents CAFÉ

- Yellow Lotus Tea represents TEA - Freeze Green Tea represents FREEZE.

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With 3 main groups and 3 core dishes representing each group, Highlands has satisfied all the needs of the most demanding diners. The reciprocity between these groups makes customers prefer Highlands. We can see that the success of Highlands in beverages lies in these 3 tripods (Iced Milk Phin, Yellow Lotus & Green Tea Freeze), with these 3 tripods creating a solid position in HL's drink group. This is considered an extremely successful strategy of Highlands. A long-term strategy for a product – Highlands invests very seriously & long-term when building the image and position of a product, not spreading, lacking focus - this is considered an extremely effective way to do this.

-Food: divided into 2 main groups: Bánh mì & cake

+ Bánh mì: Have you ever wondered why a big brand like Highlands Coffee sells a loaf of bánh mì for only 19k? Profit from bánh mì or not? The answer is yes. Profit on bánh mì products of Highlands is low but the profit after selling bread is HUGE. Because Highlands's Bread is a product of a link. A product of a link is a product that attracts customers to use the product/service of that brand, the brand does not place a heavy emphasis on profit on the linked product but is the product. products that entail profits from accompanying services/products. (for example: eating bread will make you thirsty and buying water with bread).

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