PROMOTION PLAN PROPOSAL

TRUNG NGUYEN COFFEE

By: Tran Thi Anh Nguyet Tang Buu Nguyet Tran Kim Khanh Tran Le Quang Nguyen Tuyet Trinh Tran Ngoc Quynh Giao

Table of content
In this section
Introduction ....................................................................................................... page 3 Environment Analysis ...................................................................................... page 4 Industrial Review .................................................................................. page 4 Company and Products Review ............................................................ page 5 Competitors Review ............................................................................... page 6 Target Market ................................................................................................... page 7 Marketing & Communication Objectives ...................................................... page 8 Promotion Mix & Budget ................................................................................. page 9 Creative Concepts & Ads Sample .................................................................... page 12

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Introduction
In the 21st century, Marketing has been an ultimately powerful means for companies in doing businesses. Marketing has been used for many purposes, but the main reasons are to boot the sales and to perform better than competitors. Every company has to have a good marketing plan in order to survive. However, the markets have been becoming indifferent products, and firms must find a new way to do marketing. It has not only been about products, price, promotion, and place any longer. It requires a new method to reach the market, and Integrated Marketing Communication was born. Integrated Marketing Communication (IMC) uses promotion mix to contact to target customers and maintain the relationship with customers. Advertising is not the only tool but direct marketing, personal selling, sales promotion, public relation, and so on are used too. These tools do not only help to transfer the message about the product to customer effectively, but they also can help to build the company brand name and image, and compete well with other rivals. Trung Nguyen Coffee was one of the very soon Vietnamese companies using IMC to do its business. It was a phenomenon that has been reminded until today. However, despite those effort at the beginning, Trung Nguyens successful is just a memory now. It needs an effective promotion plan to perform well in both local and international markets. Among started the run for Vietnamese instant coffee, and it was the biggest phenomenon at that time. In this promotion plan proposal, we mainly focus on G7 of Trung Nguyen for domestic market, which has been famous not only in Vietnam but around the world.

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Environment Analysis
Industry Review
Market Size Vietnam is the second coffee producer and exporter in the world, behind Brazil. Its internal markets are over 80 countries and territories around the world. In 2010, Vietnam exported 1.1 million tons of coffee, earning close to $ 1.7 billion US dollars. The biggest market which consumes Vietnamese coffee today is Germany accounting for 13.5%, followed by the United States with a share of 12.7%. In local market, , the current market share of instant coffee accounts for 65% in value compared with 34% of the value of roasted coffee according to the measure in six major cities. Trend In first months of 2011, coffee export of Vietnam reached 520 thousand tons, worth over a billion dollars, up 49.4% in quantity and increased to 122.3% in value over the same period last year. Overall, the exported coffee volume to most major markets during the first quarter 2011 is rising sharply over the same period in 2010. Export prices for March 2011 up to $ 2,273 USD/ ton, rising 8% from the previous month and increased strongly over the same period last year. This is the highest price since 2008 to date. Export price of Vietnam's coffee in the near future will continue at high levels because of the domestic demand as well as the world still remains high. Key factors With the geopolitical location advantages ad relatively pristine natural resources, the coffee production and coffee quality of Vietnam still remains high and stable. Diverse human resources are another advantage. However, Vietnam commonly export raw materials, and the opportunity for processed coffee is not still reached yet.

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Trung Nguyen Coffee Company and Products Review

Brief History Trung Nguyen Coffee was established on June 16th, 1996 in Buon Ma Thuot, the most famous place of growing coffee. The company business at that time was manufacturing and selling coffee, and tea. Here are some most important times of Trung Nguyen Coffee: 1998: Trung Nguyen appeared in Ho Chi Minh City with the slogan "Bringing new creative inspiration" and the No. 100 Trung Nguyen coffee shops. 2000: Marking the development by the presence in Hanoi and the first franchise to Japan. 2001: Trung Nguyen was available around the country and continued franchising in Singapore, followed by Cambodia, Thailand. 2002: Tien Tea was produced. 2003: G7 coffee was launched and exported to developed countries. 2004: Trung Nguyen coffee established shops in Japan, the network 600 coffee shops in Vietnam, 121 distributors, 7000 points of sale and 59.000 retail products. 2005: inaugurate a roasting factory in Buon Ma Thuot and the biggest instant coffee factory in Binh Duong in Vietnam. Recently, Trung Nguyen has been the most favorable coffee shop in Japan. Products Trung Nguyen Coffee products are mainly instant coffee. There are brand names: Weasel, Legendee, Sng To, G7, and Passiona for women.

Competitors Review
In local market, there are two main competitors for instant coffee that Trung Nguyen has to deal: Nescafe of Nestl and Vinacafe. The market share evenly distributed to three opponents Vinacaphe (38%), Nescafe (32%) and G7 (23%). This market has a dangerous shifting for Vinacafe when growth reached only 27% compared with 51% and 88% of Nescafe and G7 in recent years. Later, Vinamilk also jumped into the market with its own products, and Food Empire Holding (Singapore) with Maccoffee.
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In order to fight back Trung Nguyen testing campaign in 2007, Nestl had a communication campaign to gain its market share as followed: Nescafe has changed the name from Nescafe-Red Cup to Nescafe-Caf Vit with a new slogan: You have enough to try? Nestl also organized many roadshow through Vietnam entitled "You were strong enough to step up the car? For young men 25-35 years old from playing the game challenges, thrills. At the inaugural Buon Ma Thuot coffee festival in Dak Lak, Nestl has the impression of Vietnam maps range from the world's largest coffee beans.

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Target market
In the local market, there are two main markets that we want to focus: Ho Chi Minh City and Hanoi Capital. According to survey data of the General Statistics on 04.01.2010, HO Chi Minh population is 7,382,287 people. Statistics show that in the history of Hanoi's population increased rapidly in the last half century day. According to results of Census April 1, 2009, Hanoi's population is 6,451,909 people. First we must pay attention on the culture. The Vietnamese people often drink coffee in the morning, in social gathering, and when working. We can see that every morning everyone drinks coffee wherever they are (home, pavement, coffee shop). We can call that is the subculture of Vietnamese. Because in a research is that: population in these 2 regions intend to tea and coffee. In fact, in HCM they know about Trung nguyen brands is 58%, Hanoi is 61% and consumer for coffee in Ho Chi Minh is higher than Hanoi is 4,5%. But 2 regions have

consumers higher than the middle regions. Secondly, Hanoi and Ho Chi Minh are the 2 biggest cities in Vietnam. Ho Chi Minh has a lot of buildings and companies with lots of factory workers, office workers and foreign people working here. Base on those advantages about Trung Nguyen coffee in VN, we just focus on 2 regions Hanoi and Ho Chi Minh.

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Marketing & Communication objectives

Marketing objectives
As we know that Vietnam is a second country produce coffee all over the world. But Vietnam just receive 2 billion in 100 billion $ from this black gold industry. Our purpose is how to get 20 billion dollars from in next 15 years. Try to increase market share in Vietnam, G7 of Trung Nguyen will be familiar with worker in general. Become a top coffee in Vietnam. Every time they talk about their job, their business they will look back on G7 immediately; and it is not only just in Vietnam, but also all the buildings and offices all over the world. In order to reach all targets above, we must base on SMART strategy

Communication Objectives
Due to its slogan Khi ngun sng to (Dedicated to creativity), main focused customers of G7 coffee will be students, businesspeople, and artists in both local and international markets. For domestic customers, they have little product recognition, and knowledge about product whether it has other products similar to competitors. Bellow are what we have to do to gain customers acknowledgement and loyalty: 1. 2. 3. 4. 5. Building recognition Serving knowledge Creating positive impression Reaching the advantage position in customers mind Customers attention

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Promotion Mix and Budget

Promotion mix
Trung Nguyen gets closer to its customers by the means of sponsoring, sampling events, and print advertising. Trung Nguyen developed its first branding concept with selective colours, a logo, a slogan and especially the so-called franchise branded coffee shops. The rapid growth of these retail branded shops created the "caf Trung Nguyen" as something new and never seen before, and was enough to attract the curiosity of consumers. This fathered very strong brand awareness and can be regarded as the first success of Trung Nguyen. There are seven main aspects of a promotional mix. These are: 1. Advertising Print ads, radio, television, billboard, catalogs, signs, in-store displays, posters, Web pages, Face book Trung Nguyen was very good at utilizing support from the Government and the mass media. It tried to expose the brand as much as possible, owing to being the first and because of the Government support in developing Vietnamese brands and promoting agriculture and export products. As a pioneer in branding among Vietnamese companies, Trung Nguyen was an inspiration to journalists, who then contributed a great deal to its brand exposure to the public. (3) Not ready for hot expansion, Trung Nguyen has faced the challenge derived from the fast growth of its chain of branded coffee shops. The company has seemingly overslept; it has an increasing number of outlets but forgotten to prepare a proper strategy for the control of quality consistency and plan for further development. 2. Sales promotion sweepstakes, product samples, rebates, exhibitions. (Free shipping over $ 75, $7 off shipping on order over $ 50, $5 off shipping over $ 35) 3. Public relations The range of marketing activities of Trung Nguyen was released: Branding program of G7-ultimate agricultural products festival, in Vietnam.

trial products (blind test) with 89%of

participants selected G7. Roadshow at Trung Nguyn Showroom.

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4. Sampling events at Trung Nguyens coffee shop owned or franchise by Trung Nguyens coffee. This kind of sampling should be used to show the distinct relative advantages of the fresh coffee of Trung Nguyen coffee. In addition, premium should be offered in some period when introducing a new coffee product. 5. Trung Nguyen will not use any low price promotion because it will lower the image of the brand and can change the loyal customer opinion toward the brand. 6. Trying Nguyen also conducts promotion by print advertising such as magazine, newspaper. 7. In addition, Trung Nguyen will create a sophisticated website (http://www.trung-nguyenonline.com/ ) to improve communication capabilities, and provide information about Trung Nguyen. The website also allows the customer a place to post and share idea about Trung Nguyen.

Budget
A. Printed and Broadcast Ads We plan to advertise in two main newspapers is Tuoi Tre newspaper and Thanh Nien newspaper. They are popular newspapers throughout country and they have a big numerous reader. The advertisement in these newspapers will include pictures and information about product or promotion. Besides, we also give places where consumer can buy product. Item Tuoi Tre Thanh Nien Total Quantity (day) 15 15 Price per time (VND) 17 million 14 million Total 255 million 210 million 465 million

B. Electronic media: TV advertisement Now, TV became very popular in every family. At night, after a working day, everyone in family is usually sitting to watch TV together. So, TV ads are an important part in marketing strategy. We choose two main channels are HTV7 and VTV3 because those are popular channel in Vietnam. We will broadcast our ads in the period from 19h-19h30. This period has a large number of people watch TV.

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Item HTV7 VTV3 Total

Quantity 15 10

Price per time (VND) 18 million 35 million

Total 210 million 350 million 560 million

C. Non-traditional Ads: Website and Direct mail 1. Website We also advertise by a big logo on website www.vnexpress.net in one month. We choose this website because VnExpress always have the largest number of visiting in Vietnam. Furthermore, VnExpress is in the top 300 websites is the most accessed in the world. Besides, through direct website of Trung Nguyen (www.trungnguyen.com.vn), customer can know information about overview of Trung Nguyen, details of products, promotions, book online or contact information. Item VnExpress Quantity (week) 4 Price per time (VND) 15 million Total 60 million

2. Facebook: We will display ads on Facebook, the largest social networking site based on active users Item Facebook 3. Direct mail Target audience will be wholesaler or retailers such as market or supermarket. Through direct mail, we will provide information about product, sale promotion, schedule working, contact information Budget for Christmas event in HCM, Vietnam: Sponsorship budget: 100,000,000 VND 50,000,000 VND Cost per click (USD) $0.52/click Expected number 50/day Frequency of ads 180 days Total $4680

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Creative concept & Sample Ads

To create a concept that coffee G7 is different from other coffee brands, and when people talk about coffee, they would talk about G7, we would apply the slogan Its coffee, its G7. Moreover, G7 would bring enjoyable, and creative. It is the best coffee for students, for those who work in creativity, and for those who want a perfect resting time. Here are the ads sample:

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