Abstract

There are many questions about the starting point of drinking coffee. It has been so long

ago no one really knows all the facts. But, one thing is for sure, coffee is the most consumed

beverage on the planet. The coffee culture had been buried deeply in many people life, where

coffee is a part of their life. Many of them need cups of coffee every morning to kick of their

day. But nowadays coffee does not only served in the morning but all day until midnight where

coffee needed as a boost of energy. People tend to walk in to the coffee shops for all kind of

cause nowadays.

Coffee has actually been grown and cultivated in Thailand for hundreds of years, but the

industry began to change in the 1960s. The reason for this is that Thailand was reported to import

eight times more coffee than it was actually exporting. Thailand produces both Robusta and

Arabica coffee beans, but 99% of the beans that are produced in Thailand are Robusta. One

interesting thing to keep in mind about coffee on the rise in Thailand is that Asian cultures are

normally associated with tea drinking over the centuries. Since coffee is becoming popular

internationally, there are also many new coffee shops popping up, including Starbucks, all over

the globe. A few years ago Thailand saw an explosion in coffee consumption; as a result world-

class coffee is available almost on every corner in Thailand’s larger cities and chief tourist

destinations. That’s why in this research, we’ll conduct a market research in Phuket where we’ll

set up and implement a marketing plan for Trung Nguyen coffee

 I. Introduction

A/ Trung Nguyen Corp:

Established in 1996, from a new coffee brand in Vietnam, Trung Nguyen quickly built up its

reputation and became a familiar coffee brand in Vietnam and international market. Trung

Nguyen Coffee is also the first Vietnamese company that has applied the model of franchise.

Being active and creative, Trung Nguyen has established the franchised shop system nationwide

and also in Japan, Singapore, Thailand, Cambodia, Ukraine, German and China with a special

style of coffee enjoyment.

1/ Name

Within 10 years, from a small coffee between the coffee capital of Buon Me Thuot,

Trung Nguyen has become a powerful corporation with six member companies: Trung Nguyen

Corporation, the company stock dissolved Trung Nguyen Coffee, Ltd. Trung Nguyen, company

shares and commercial services and joint venture companies G7 Vietnam Global Gateway

(VGG) with the main industries include manufacturing, processing and trading of tea, coffee,

franchising and distribution services, modern retail. In the future, Trung Nguyen Corporation

will develop with 10 member companies, many lines of business diversification.

2/ Location

Trung Nguyen corporation Headquarter

82-84 Bùi Thị Xuân, Bến Thành ward, District 1,

HCMC, Vietnam

3/ Mission
 Connect and develop people who have the passion for coffee in all over the world.

4/ Product description ( focus on coffee)

High class coffee: WEASEL (250g), DIAMOND COLLECTION (50g & 250g),

LEGENDEE (250gr & 500gr),

Middle class: Passiona: (pack 250g); Creative Cafe: (5 kinds), Gourmet Blend (250g &

500g) and House Blend (250g & 500g); Café with coffee filter: with 9 kinds: Culi Robusta,

Arabica - Robusta, Arabica, Arabica – Robusta – Catimor – Excelsa, Culi Arabica, Robusta –

Arabica – Excelsa, Excelsa - Arabica

Rosted coffee: (11 kinds) Culi Robusta, Robusta Arabica, Arabica, premium Culi, Culi Arabica,

Robusta Brazil, Arabica Eakmat, Legendee, Espresso Buôn Ma Thuột Special, Robusta Special,

Robusta - Arabica Premium

Primary: I - Aspire, S - Conquer, Vitality

5/ Company size (number of stores)

Now, Trung Nguyen has a network of nearly 1000 coffee franchise shops across the

country and eight overseas such as America, Japan, Singapore , Thailand, China, Cambodia,

Poland, Ukraine. Trung Nguyen coffee products and G7 instant coffee has been exported to 43

countries around the world with major markets like USA, China. Besides, Trung Nguyen has

also built a network of more than 1000 convenience stores and distribution centers nationwide

G7Mart.

6/ INTRODUCTION OF TRUNG NGUYEN FRANCHISE SYSTEM: 

Trung Nguyen Coffee is the first Vietnamese company that has applied the model of

franchise. Being active and creative, Trung Nguyen has established the franchised shop system

nationwide and also in Japan, Singapore, Thailand, Cambodia, Ukraine, German and China with
a special style of coffee enjoyment.

With the business method of franchise, Trung Nguyen coffee products, which are

produced by the best coffee beans from the highland of Buon Ma Thuot in conjunction with

modern technologies and company’s own skills, were introduced to everybody nationwide and

worldwide.

Today, with about 1,000 franchised coffee shops, Trung Nguyen always brings people

Vietnamese coffee of  top quality in any Trung Nguyen coffee shops. 

Development:

 Chart :  The development of Trung Nguyen shop system during the years.
B/ Phuket market

Phuket (pronounced Pookhet) is Thailand’s largest island. It’s a province in itself and a

major tourist destination. Phuket offers something for every visitor: verdant hillsides, luxurious

golf courses, unique beaches, azure seas, world-class scuba diving and water sports, surprisingly

cheap shopping, outstanding dining and a vibrant nightlife. As Phuket is Thailand’s richest

province, the infrastructure is surprisingly good when compared to neighboring provinces and

countries.

Lying off the northwest Andaman coast 700km south of Bangkok and 150 kilometers

from the Malaysian border, Phuket is roughly the same size as Singapore. Many have remarked

on the similarity Phuket has, when viewed on a map, to a pearl drop. For this reason, amongst

others, the island has been dubbed "The Pearl of the South." It’s connected to the province of

Phang Nga by two northern bridges. Most tourists arrive by air, but there are excellent road

connections to Bangkok and surrounding provinces to Phuket that are well worth visiting.

Total Population of Phuket

Total of Male Female

Population
335,913 159,526 176,387

(Source: Department of Provincial Administration, 2009)

Number of foreign tourist 08-09 p9

Figure : Phuket’s Map
 Why this project should launch in the area that calls “Pearl of Andaman Sea” or Phuket

province because it is the very popular and famous place for tourist destination in Thailand

which there are Thai and foreign tourists who come to visits this province and the statistic graph

show that the foreigners are more than Thai. Most tourists come to visit Phuket are from other

country which are Australia, Korea, Sweden, Malaysia, England and China and there are only

few domestic travelers. The information of Phuket Provincial Governor's Office show the main

income of population in Phuket is hotel and restaurant at 38.92 percents, Logistics and

Transportation is 14.12 percents and Retailer is 10.54 percents so the one good point for this

project is the tourists destination because there are high purchasing powers in the market and we

can sell in the high price because the land value is very expensive. Our product is in the niche

market because the premium coffee store businesses are in Karon beach because there are low

competitors which are very few direct competitors and there are few non direct competitors such

as sevens, regular shops and restaurants. In addition although the political situation of Thailand is

not stability which are Red Shirts and Yellow Shirts but it is not effect to our business because

Phuket Island has international direct flights to this island and Somboon Jirayus, president of

Phuket Tourist Association, said on Sunday February 2010. Despite warnings by three major

tourist-providing countries warning their nationals from traveling to Thailand due to the risk of

civil unrest, tourism businesses in the southern resort of Phuket is booming with no hotel room

cancellations. From these reasons, we’ll conduct a marketing plan to sell Trung Nguyen products

here.
Phuket Festivals & Events

The number of reservation for accommodations are high because there are many festivals

and event in Phuket for each year’s which is very interesting.

Phuket is one of the most popular tourist destinations in Thailand. It is also the largest

island in the country. Various festivals and events in Phuket are organized throughout the year.

Some festivals are so popular that they have become tourist attractions in Phuket. The Phuket

festivals highlight the multi religious and multi cultural society of the island. The list below will

give you a fair idea about some number and nature of Phuket festivals and events:

 Chinese New year traditions

o Dec 29 of Chinese

o Dec 30 of Chinese

o Jan 1 of Chinese

 Thank God tradition (After midnight on the 8th 0f March 8 of Chinese, or on the 9th of the

1st months)

 Chinese tradition festival (March 7th )

 The Po-Tor (China's months 7th or on Thai's months 9)

 Moon sacrifice tradition (Lunar 15th of Months 8th of Chinese)

 Vegetarian traditions (Starting on the Lunar 1st of the Months 9)

II. SWOT of Trung Nguyen Co.

Strengths:

 Quality, was the first to go under the franchise system, wide distribution system.

 Better information channels, PR

 Strong financial resource from Trung Nguyen corporation

 Variety of products, from primary to middle and high-class products.

 Convenient, good atmosphere, clean place and attractive decorations.

 Diversified, delicious taste have been satisfying different demands of customer in the

world

 Famous coffee brand name of Viet Nam , so many people know it, they are not only

Vietnamese but also foreign.

Weaknesses:

 Implementation of the franchise network too wide range. The management and

supervision are weak. There are too many projects and ambitions in the same time

leading to scattered power, capital, intellectual

 Implementation of the franchise network too wide range. The management and

supervision are weak. There are too many projects and ambitions in the same time

leading to scattered power, capital, intellectual.

Opportunities:

 Most of foreigners drink fresh coffee and premium coffee is also popular now.

 New market but in the same area (South East Asia), there are many similarities in culture,

business
  Strong brand

 There are two direct competitors so it is low competitions and we can be easy to

entry in the niche market

Threat

 Premium coffee is consumed in specific group, time and occasion

 Same area, similar in culture and business, so it’s difficult to convince customer to

choose us over Thai products.

 There are other beverages that can drink to replace coffee qualification-

 There are many instant coffees and instant coffee canned to sell in general market.

Trung Nguyen is becoming more heterogeneous. In many aspects.

 One is: Central Highlands are using other strategies to differentiate on price, literally

"guest that any price." The objective of this strategy is to maximize profits. But this

seems very wrong in franchising. Moreover, this strategy is quite dangerous for the baby

as a market in Saigon.

 Second: This is the result of a massive campaign franchising; the quality is beyond our

control. The reason this seems more logical. Trung Nguyen is simply impossible to fully

control the hiring partner brands. And inevitably this is the customary Central Highlands

"make everyone stronger."

III. Competitors:
 Starbuck Note

Logo

http://www.starbucks.com
Kinds of Drip brewed coffee, espresso-based hot drinks, other hot and cold drinks,

coffee beans.
product
The tall (small) is $1.75; The medium (grande) is $1.96; and the large

(venti) is $2.07.
Price
Starbucks whole bean coffee starts at $9.95 a pound and goes all the way

up to $14 per pound. So 10 pounds would cost between $99.50 and

$140.00.

Phuket 

94 Thaveewong Rd., Patong, Kratoo,  Phuket  83150.

Central Festival Phuket 

1st floor, Central Festival Phuket 74-75 Wichitsongcram Road, Moo 5,

Location
Wichit, Muang, Phuket 83000. 8 branches in
s
Junceylon Patong  Phuket

181 unit 1102/2 Ground floor, Zone A1,Ratch-u-tid Road, Patong, Katu,

Phuket, 83150.

Phuket Jungceylon 2 

Unit 4125 Jungceylon Phuket, 181, Ratch-U-Thid, Patong Sub-district,

 Krathu District, Phuket 83150.

 South Coast Plaza - Krabi 

128 Ao Nang Clif Beach M00 11, Petchakasem Road  Krabi Noi Muang

Krabi 81000.

Kata Center 

Kata Center, 4 Karon Road, Tambon Karon, Muang, Phuket 83100.

La Flora Phuket 

1-3 First Floor La Flora Avenue, Patong, Taweewongse, Tambon Patong,

Katu, Phuket.

Twilight of Bangla 

Twilight of Bangla project, Bangla Road, Patong sub-district, Katu,

Phuket.
Starbucks is huge in Thailand with constant rate of expansion As of April

2010, Starbucks has 133 stores in Thailand.

Conclusion At local Starbucks, they serve an incredible variety of handcrafted coffee

& espresso beverages. Some use time-honored recipes. Some are new

creations straight from their kitchens. All are delicious. This is just a taste

of what’s in store for customers. Starbuck is really a strong competitor.

Andaman Note

Logo

http://www.starbucks.com
Kinds of Hot Beverage, Iced Beverage, Frapp Non Coffee Frappe'e, Smoothies

product
.Hot Beverage is between 55 – 75 baths

•Iced Beverage is between 60 – 95 baths (Only soda is 40 baths)

•Blended is between 95 – 120 baths

Price
It's not cheap because the premium coffee market in Karon Beach is

dominated by them and almost of their customers are foreigners. The

prices also were increased by added land value because it is in front of

the beach so the customers pay higher prices due to the lack of

competition.
Location Branch one and two are located on Kata beach; the beach next to Karon 3 branches in

beach and the branch three is located on Karon. Phuket

s
Andaman Coffee Co. is the strong competitor in the market because there

are 3 branches in Phuket. They serve their products and service to

Conclusion customers who have more purchasing power. They seek out the Arabica

coffee beans that the products of Andaman Coffee Co. are good quality.

According to Karon beach, it may have less choice for the customers

because there is only one premium coffee store there.

IV. The Marketing Mix Analysis

The Marketing Mix model (also known as the 4 P’s). There is Product, Price, Place (distribution)

and Promotion. These four P's are the parameters that the marketing manager can control, subject

to the internal and external constraints of the marketing environment. The goal is to make

decisions that center the four P's on the customers in the target market in order to create

perceived value and generate a positive response.

 Eastern Coffee marketing strategy will be focused at getting new customers, retaining the

existing customers, getting customers to spend more and come back more often. Establishing a

loyal customer base is of a paramount importance since such customer core will not only

generate most of the sales but also will provide favorable referrals.

A. Product Strategy

Branding Strategy; we use the word “Eastern” which refer to the country where produced

this product and show the characteristic of almost Eastern’ country : friendly, harmony,

hospitable, kind. The word Eastern is easy to remember so the customer will imagine to Eastern

coffee when they want to drink good taste of coffee with reasonable price and specific flavor of

Eastern’ country only.

 Logo

Trung Nguyen signs used hot colors with the dominant color is red, yellow, brown. The

vibrant colors reflect a youthful and vigorous enthusiasm of youth. Trung Nguyen select brown

as the main colors, because that is the color of the land of coffee, of ethnic origin.

A circle symbolizes unity and solidarity. Imperfect circle represents life as it is true: there are

still shortcomings and gaps to fill. Trung Nguyen wants to bring the soul essence, flavor coffee

tree to life. This is a new angle of the cup of coffee, representing the creative driving force is the

action of Trung Nguyen and the franchise system.

 Slogan :"Inspiring creativity"

Expressed expectations: with Trung Nguyen coffee, consumers always have new ideas,

innovative ideas to create success for them, for their family and for the prosperity of the country.

B. Price strategy:
 When we go to business at Phuket’ market, we will apply average price for middle- class

products at $8 (or 250 Bath) and the average price for premium class products at $12 (or 370

Bath). The reasons why we do this are competing with other local competitors and to easy enter

on this market because this price is not too high or low for customers, especially for tourists, who

have been able to buy and test our products or when compared with products of competitors at

same level, kind of products.

C. Place strategy:

Trung Nguyen coffee store is opposite Phuket Karon Corner Inn Hotel. Our shop is in

front of the beach, on Patak road where there are plenty of shopping places. This is the main road

of the town and there are crowded of tourists who walk on or shopping there from day time to

night time. This place provide a great opportunity for us to attract customer in all time of the day.

Now all that matters is the price and quality of our product.

Address : 566 Patak Road , Karon Beach, Muang District, Phuket, Thailand

Email: trungnguyencoffeestore@phuketocean.com

Phone & Fax: (66) 076.396.414

D. Promotion strategy:

To popularize Trung Nguyen’s image in a new market, simultaneously we’ll bring the

kindness, familiarity to local civilians and foreign tourist as well. We’ll hold a special event

which is called “ golden week” in this length of time, free coffee will be served to all customer at

Trung Nguyen store. And then, in the next week, customers who buy 2 products will be given 1

product as the same kind for free. Beside, we’ll launch an advertising strategy and campaign

which is suitable to Thailand’s culture and legal. In Thailand’s big holiday, such as The Po-Tor

or Moon traditions, we’ll discount 20% of all products. And more special, in Vegetarian tradition
holidays, we’ll hold free charity buffet, Vietnam and Thailand’s culture is quite similar: favor

Buddhism. We want to prove to local citizens that when they choose Trung Nguyen product,

they’ll find the unique, but habitual flavor. And for foreign tourists, they will find the tasty,

specific flavor of Eastern coffee which is created by Trung Nguyen.

We will advertise our products through various of media such as:

 Brochure that we will put on front of hotel and guest house in Karon beach.

 Company website that our customer can leave their comment.

 Tourism TV stations.

 Social network is a good channel to introduce our business on global and we can

exchange idea with customers who’re interested in coffee to improve and make our

products better.

The prices of our products are reasonable, and furthermore we also find the best place to

compete our high quality products and it can be competitive with our competitors. And with a

good promotion that can be attractive customers, we believe our company will be beyond our

competitors

A. Forecasting demand of coffee of Trung Nguyen Corp in Phuket market in three years 2011, 2012,
2013
Demand of drinking coffee in Phuket

Demand of coffee bean in Phuket

 Year 2011
Sale volume
Jan Feb Mar Apr May Jun July Aug Sep Oct Nov Dec Total

Percentage 6.4 8.9 8.9 8.9 6.4 6.4 5.1 7.7 8.9 7.7 11.5 12.8 100 %
of tourists
(%)
96,000 133,500 133,500 133,500 96,000 96,000 76,500 115,500 133,500 115,500 172,500 192,000 1,490,000
12,285 17,088 17,088 17,088 12,285 12,285 9,792 14,784 17,088 14,784 22,080 24,576 192,000
Number of
Tourists 4.2 %

Revenues
(USD)

Table 1.1 Sale forecast of year 2011 (Year 1)

 Total of tourists in 2011: 1,490.000 people

Percentage of people who like drinking coffee: 52 %

Percentage people who want to buy coffee bean: 42 %

Market share: 4.2 %

Average price/1 bag (500 gram): 8 USD

Year 2012
Sale volume
Jan Feb Mar Apr May Jun July Aug Sep Oct Nov Dec Total

Percentage 11.75 8.8 7.8 9.8 4.9 4.9 3.9 4.9 5.9 7.8 11.75 17.8 100
of tourists %
(%)
Number of 190,3 142,560 126,360 158,760 79,380 79,380 63,180 79,380 95,580 126,360 190,350 288,360 1,62
Tourists 50 0,00
0
Revenue 33,84 25,344 22,460 28,224 14,112 14,112 11,232 14,112 16,992 22,460 33,840 51,260 288,
(USD) 0 000

Market
share of
coffee bean 6.3 %

Table 1.2 Sale forecast of year 2012 (Year 2)

Total of tourists: 1,620.000 people

Percentage of people who like drinking coffee: 52 %

Percentage of people who want to buy coffee bean: 42 %

Market share: 6.3 %

Average price/1 bag (500 gram): 8 USD

Year 2013
Sale volume
Jan Feb Mar Apr May Jun July Aug Sep Oct Nov Dec Total

Percentage 14.1 10.6 7.0 8.8 3.5 4.1 4.7 5.3 6.45 7.0 11.75 16.7 100 %
of tourists
(%)
Number of 242,520 182,320 120,400 151,360 60,200 70,520 80,840 91,160 110,940 120,400 202,100 287,240 1,720,000
Tourists
Revenue 64,719 48,654 32,130 40,392 16,065 18,819 21,573 24,327 29,605 32,130 53,932 76,653 459,000
(USD)

Market
share of
coffee 9.4 %
bean

Table 1.3 Sale forecast of year 2013 (Year 3)

Total of tourists: 1,720.000 people

Percentage of people who like drinking coffee: 52 %

Percentage of people who want to buy coffee bean: 42 %

Market share: 9.4 %

Average price/bag (500 gram): 8.5 USD

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http://www.wattpad.com/326558-ph%C3%A2n-t%C3%ADch-chi%E1%BA%BFn-l

%C6%B0%E1%BB%A3c-marketing-c%C3%B4ng-ty-c%C3%A0-ph%C3%AA-trung?p=4

http://www.scribd.com/doc/31833260/Project-Feasibility-Study-and-Evaluation-OKey-Coffee-

Aj-chaiyawat-Thongintr

http://wikitravel.org/en/Phuket