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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
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
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
2/ Location
HCMC, Vietnam
3/ Mission
Connect and develop people who have the passion for coffee in all over the world.
High class coffee: WEASEL (250g), DIAMOND COLLECTION (50g & 250g),
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 –
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,
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.
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
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.
Population
335,913 159,526 176,387
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
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:
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)
Strengths:
Quality, was the first to go under the franchise system, wide distribution system.
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
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
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
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
Threat
Same area, similar in culture and business, so it’s difficult to convince customer to
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.
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
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
$140.00.
Phuket
181 unit 1102/2 Ground floor, Zone A1,Ratch-u-tid Road, Patong, Katu,
Phuket, 83150.
Phuket Jungceylon 2
South Coast Plaza - Krabi
128 Ao Nang Clif Beach M00 11, Petchakasem Road Krabi Noi Muang
Krabi 81000.
Kata Center
La Flora Phuket
Katu, Phuket.
Twilight of Bangla
Phuket.
Starbucks is huge in Thailand with constant rate of expansion As of April
& espresso beverages. Some use time-honored recipes. Some are new
creations straight from their kitchens. All are delicious. This is just a taste
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
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
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
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
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
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
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
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
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,
Brochure that we will put on front of hotel and guest house in Karon beach.
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
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)
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 %
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
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%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