2. Market analysis decisions for entry.

Cong Caphe first exported to South Korea and opened its first outlet in Yeonnam-dong in 2018
and then has expanded to more than 5 outlets in South Korea, in neighbourhoods such as Itaewon
and Sindorim (Middleclass, 2021). Cong Caphe received huge welcome from not only
Vietnamese people living in South Korea but also the local residents, who queued up to
experience a cup of Vietnamese coffee in a Vietnamese coffee shop with Vietnamese serving
service.

To achive this great win, Cong Caphe had spent lots of time and effort to plan the
internationalization strategy before implemented it in 2018. The first and indispensable stage is
conducting the market reseach. Entering into a new market, especially the foreign one, is very
challenging. However, there are some advantages that enable the success of Cong Caphe in the
South Korean market.Therefore,

The same coffee hobbies: Accoring to Cong Caphe, South Korean people have similar culture
and hobbies to Vietnamese people. Coffee has grown into an indispensable part of life for many
South Koreans. Although having a lengthy tradition in tea, South Koreans now drink coffee an
average of 12 times a week, even more often than they eat their traditional kim chi dish, which
means that even though coffee shops have sprung up like mushrooms in the country, there are
still enough customers to make operations profitable.

Price competition: It is known that the price of local drink in Korea is about 5,000 - 6,000 won.
Compared to the price of "Cong", the menu is cheaper, more unique for people to try.

High expectation for Vietnamese taste: Vietnam has emerged as a favoured destination for
South South Korean tourists, whose the number of arrivals in Vietnam ranks second among
foreign visitors coming to Vietnam, trailing only Chinese tourists. Many South Koreans,
therefore, might want to taste the Vietnamese flavour of coffee along with a variety of
Vietnamese snacks such as banh mi and peanut candy (Hoa, 2018).

Cong Caphe also identified its mode of entry is franchising, which helped Cong Caphe not only
increase the coverage of the store chain but also strengthen the brand. The initial level is quite
high, but in general, franchise stores have many customers, within 1 year, they can recover
investment capital. The use of old equipment makes the investment and renovation costs of the
shop not high.

Besides the preparation process in document and quality control, there are two important
components that Cong Caphe had prepared well before officially appeared in South Korea for the
first tiem:

Matching South Korean taste: To win the heart of customers, the brand has made efforts
towards network expansion and brand recognition; the shops feature a retro décor to pique the
curiosity of young guests, consistent from table and chair sets, glasses, and cups to the general
decoration, whereas the beverages will be adapted to fit the host country’s culture (Hoa, 2018).

Effective application and deployment of online marketing: With the development of social
media, the use of online channels to conduct marketing activities and show the brand image is
compulsory. Since one earlier before opening the first store , Cong Caphe had been uploading
photos of its signature drink, coconut coffee, at different locations in Seoul on Instagram,
signaling the establishment of its first store in the city, Korean newspaper Kookmin Ilbo
reported.

 Conclusion:

The current situation of Cong Caphe in the foreign market: 6 outlets in South Korea and one in
Malaysia and all of them are welcomed by the local residents. Cong Caphe is also planning to
open more foreign stores, but the Covid 19 pandemic has stopped the plan temporarily. The
achievements shows that "Cong" has been in right steps and directions, which are the great bases
for Cong’s bigger success in furrther future.
Reference:

Middleclass. (2021). South Korea’s 7-11 Has A Coconut Soft Serve By Famous Vietnam Coffee
Chain, Cong Caphe. https://middleclass.sg/treats/cong-caphe-South Korea-soft-serve/

Hoa. A. (2018). Cong Caphe ventures to South South Korea. https://vir.com.vn/cong-caphe-

ventures-to-south-South Korea-61847.html