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To continue the presentation, I would like to talk about the

Advantages and disadvantages of the marketing mix


We choose TCH as a strong direct competitor of Highlands for these four reasons
First, both are Vietnamese brands so they have more opportunities in Vietnamese market.

Second is the revenue as you can see in the chart, The Coffee House rank at second place only
after Highlands in 2019

The third reason is their target customers and price.


 Both brands focus on middle - class people but the price of TCH is a little bit cheaper, so
we think that it is a big competitive advantage of TCH.

The last one is menu and product quality


 Both of them have quite similar kind of products but The Coffee House has more diverse
product portfolio, you can see in two pictures.
 And the product quality in general, both brands receive good feedback from the majority
of customers.

let’s move on to the comparison of the interview results with our group’s analysis.

First with the similarities in advantages:


 About Product
Both brands have great product quality. They also offer good service quality and attentive
staffs.

Highlands has the menu combining both tradition and modernity which helps it attract a
wide range of customers at different ages.

The menu of TCH is more diverse with many kinds to suit different needs of customers.
In addition, TCH has environmental-friendly packaging, they use biological, stainless
steel straws, glass, porcelain cups, etc. to reduce the amount of plastic waste, and join
hands to protect the environment and the community

 The second is Place


Highlands Coffee has a large number of stores across the country and they are located in
attractive locations with modern, cozy and luxurious design.

TCH stores have new and youthful space, are designed according to the inspiration of the
cafe house.

Both brands offer an ideal working environment and a good relaxing space. Highlands is
more suitable for work dates for officers while in TCH's shops, there are many long
tables to serve groups of friends or families who come to gather and chat with each
other. 

 The next is Promotion


Highlands has many periodic promotions, mostly in the form of shopping vouchers and
buy 1 get 1 free. Which helps it to increase the purchasing power of customers and
introduce new products. Highlands is also popular with trendy and viral advertising
TCH has customer gratitude policies such as bean accumulation, loyal customers,... on its
own app.

 The last is Price


Highlands Coffee has many good pricing tactics such as bundling, coupons while TCH
doesn’t have such pricing tactics.

The next point is the disadvantages


 Highlands needs to pay more attention to ENVIRONMENTAL ISSUE. Despite
implementing a campaign to say no to plastic, Highlands still uses plastic straws, cups
and spoons. Even when customers order takeout, there will be an extra nylon cup holder.
This increases the amount of plastic waste, adversely affecting the environment and
community. 

 Compared to competitors, TCH is slow in cooperating with online delivery services,


many customers also find it inconvenient to use TCH’s own app because its interface is
not flexible and difficult to use. Moreover, there aren’t as many stores as Highlands,
which is harder for customers to buy its products.

There are also some differences in the disadvantages of customers’ opinion so I would like
to make them clear with some explanations:
 Firstly, about Product
The quality and taste of both brands are not uniform among the stores. It is because the
main weakness of franchise model: uneven product quality
Some customers don't like the self-service model at HL. The reason is the differences in
the customer's favourite type of service.

 Second is Promotion
TCH doesn’t have many promotions and discounts for customers.
This is due to the lack of correct promotion strategy leading to difficulties for customers
to access information.
TCH also has their own app but maybe it hasn’t promoted it well.

 The next one is Price


Both brands set the price a bit high, not suitable for students. This is because target
customers of the two brands are those who have medium to high income, not students
with no or low income

 And the last one is Place


The Highlands’ store space is crowded and noisy. This depends on the location and the
time customers come to Highlands.

For TCH, the store space is still small and the design is quite simple. This is because of
the inconsistency in some franchise stores.

That’s all about the pros and cons of the marketing mix. next part, I would like to give it up
to Hương.
Thanks Phu for the question,

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