MKT10007 - Fundamentals of Marketing

ASSIGNMENT 2: INDIVIDUAL REPORT ON BRAND

Name: BUI BICH HANG
Due date: 7 March 2021

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 Table of Contents

1. SUMMARY OF THE BRAND 3

1.1. Brand’s history.........................................................................................................................................3
1.2. Market size...............................................................................................................................................3
1.3. Recent performing trend..........................................................................................................................4
1.4. Relevant offerings....................................................................................................................................5
1.5. Marketing Mix 6
2. MACRO & MICRO EVIRONMENTAL FACTOR
2.1. Macro Environment.................................................................................................................................7
2.2. Micro Envinronment................................................................................................................................7
3. PERSONA......................................................................................................................................................8
4. TRIGGER NEED REGCONITION...............................................................................................................8

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1. SUMMARY:
This report will mainly focus on one brand of instant coffee product lines named Vinacafé. Providing
information from the research help to create an understanding of marketing tasks for the application of the
concepts of marketing for sustainable solutions and clever options.
1.1. Brand’s history in Vietnam
Vinacafé is a Vietnam brand of soluble coffee products, and also a commonly used brand name for Vinacafé
Bien Hoa Joint Stock Company. The company was first established by a French name Marcel Coronel in
Bien Hoa, Dong Nai Province, the Repulic of Vietnam in 1969.
The Vinacafé brand was launched in 1983 after Vietnam succeed in producing instant coffee in 1977. In
1993, they introduced "3 in 1" line of instant coffee which satisfy the Vietnamese's habit of drinking coffee
with milk. The Vinacafé brand has become popular with the success of produce soluble coffee as the main
product of Vinacafé in the Vietnamese market.
(Vinacafé, 2016)
1.2. Market size
Vinacafé has been one of the highest quality brands in Vietnam since 1995.
According to the Nielsen report, the top 3 companies – Vinacafé, Trung Nguyen and Nescafe have made up
to 80% instant coffee market share of the industry. In 2014, Vinacafé Bien Hoa was the largest manufacturer
with 41% of the market share.
(Vinacafé ultimately dominates the Vietnamese coffee market 2019)

Source: Niesel Vietnam

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The following infographic is based on the Soluble Coffee Consumption Report, conducted by W&S
company through Vinaresearch online survey website in April 2018. Vinacafé stood 3rd place in PBI
(Popular Brand Index) that calculated based on first awareness (30%), most frequent use (25%), the most
desired use in the future and ad coverage (20%)

(Vinaresearch, 2018)

1.3. Recent performance trend

There is an increasing trend of using instant coffee in the world and especially in Vietnam.
According to the International Coffee Organization, as compared to other Asian countries, Vietnam's per
capita instant coffee consumption among millennials has increase steadily over the last decade.
(Mordor Intelligence 2020)

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1.4. Relevant offerings
 Sub-brand: Vinacafé Gold Original, Vinacafé Gold Gu Đậm, Vinacafé Gold Gu Đậm Hơn, Vinacafé
3in1 Original Buon Me Thuot, Bésame, Vinacafé Chất.
 Product line: Vinacafé 100 per cent coffee, Vinacafé 2 in 1, Vinacafé 3 in 1 and Vinacafé 4 in 1.
 Variant: In each of product line, there will be different versions in taste, volume, packaging, provided at
different prices, meeting a variety of customers.
In 2014, by designing new packaging, Masan Company reintroduced traditional Vinacafé 3in1 Gold
products. The new package design has transmitted the core value of the brand through the combination
of traditional yellow borders and youthful motifs, colors which have a strong impression with not only
traditional customers but also the young people connoisseur of coffee. Information printed on the
package has pressed the brand's history and the value of the brand.
(Vinacafé Anual Report 2018 & Brands Vietnam 2020)

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 Brand Positioning
According to Vinaresearch 2013, the survey took place
in the group of men and women aged 18-40 from 2 big
cities HoChiMinh and Hanoi, of which Vinacafé’s 3n1
products were the most popular at the age of 23-29
(24.1%). They positioned Vinacafé as a Vietnamese
Coffee Brand, Affordable Brand, Suitable Price, Good
Quality and Well-Known Brand. Anti-drowsiness is the
reason most people choose to use soluble coffee. The
need for focus also captured 67.4% of the agreed
responses, followed by relieving stress, habits or
boredom, etc.
( Vinaresearch 2013)

 Marketing Mix
Product:
The first soluble coffee products of Vietnam were born under the Vinacafé brand name. With over 40 years
of experience in the coffee industry in Vietnam, Vinacafé's products are widely recognized for their quality
and prestige.
To provide a more convenient way of drinking coffee is the core benefit of
Vinacafé instant coffee products. The brand name is recognized as the
oldest brand with high-quality products in the actual product. Not only for
drinking, but customers also buy it for the feeling when drinking it, to feel
more conscious. Sometimes they are attracted by the packaging. The
augmented product is an efficient way to tailor a product to satisfy the
needs of specific consumers. In the situation of the Vinacafé brand, after-
sale service reaches the average. The brand has had attractive websites to
help customers to understand products and fulfil online support services
from the consultants such as vinacafebienhoa.com.
Price:
The table below compares the price of 3in1 instant coffee in different brands.

Product Price Số lượng Net weight

(Instant Coffee) (VNĐ) (packs/ bag) (g/pack)
Vinacafé Gold Original 3in1 800g 99.000 đ 40 20g
G7 3in1 800g 114.000 đ 50 16g
Nescafé 3in1 782g 102.000 đ 46 17g
(BachhoaXanh 2018)

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Customers can also find discount codes and sale promotions of Vinacafé products at e-commerce
exchanges such as Tiki, Sendo, Lazada, etc.
Place:
In Vietnam, Vinacafé’s instant coffee products can be bought easily with affordable prices in retail stores,
supermarkets, malls or through e-commerce all over the country such as Shopee, BachhoaXanh.com,
Tiki.vn, etc.
Promotion :
The key to reach potential customers and maintain relationship with loyal customers is the interaction
between sellers and consumers. This marketing strategy can be provided on various media platform due to
the development of internet nowadays.

Back to Tet 2015, Vinacafé with the campaign “Love

into words” that have a gifted cup in each present
boxed was the most successful promotional content
on Youtube. For a short time, 500.000 gift boxes
quickly sold and 1500 lovely cups which had loving
words were transferred to parents by Vinacafé on
behalf of the children. (H.Võ 2015)

2. MACRO AND MICRO ENVIRONMENTAL FACTOR

2.1. Macro Environment
The one macro factor of the brand that need to be mentioned is Social-culture. The term "social" usually
refers to cultural aspects, such as societal trends, occupational attitudes, genders, and demographic growth
rates. The pattern or behavior of consumers toward products is the most common way that social cultural
factors affect industry, to be particular, Vinacafé’s goods.
Currently, Vietnam population is more than 90 million people and about 45% of it is in the labor age.
(The World Bank Group 2019), the age group most consuming amount of coffee.

The Vietnamese people's standard of living has increased. A sociological study recently by the World Bank
in 2020, nearly one-sixth of Vietnam's population is currently classified as a global middle class (with a per
capita spend of more than $15 per day). Accordingly, this group will prioritize the consumption of products
and services of better quality, more convenient. Thus, the locality of Vietnam's domestic market is very
large, which can be a confrontation with the foreign market. (SGGP Online 2020)

This a big opportunity for Vinacafé to invest in their products in order to get more market shares along with
the campaign "Vietnamese people prefer to use Vietnamese goods". However, it can also risky since most
customers still refer to purchase through the sources of information from newspapers, advertising and
friends. Misleading information about the brand can affect as the final result of selling.

2.2. Micro Environment

Intermediary is the one important factor of the micro environment. For distribution, Vinacafé has taken
advantage of both traditional and modern forms of distribution to achieve the best results. The finished
product will be transferred to numerous distributors, supermarkets (BigC, Co.orp Mart,...) to hundred of
retailers and finally to the users. With such a wide distribution system, Vinacafé official agent has appeared

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in almost 64 provinces and cities. They have exported to about 20 countries around the world included the
hardest to please markets such as the US and Japan. Vinacafé has a promises future to reach further along
with quality and reliability of consumers.
Revenue results of Vinacafé used to be low in của Vinacafé in the first quarter of the year 2016 and 2017 but
since 2018, by changing the sale model and distribution through Masan Consumer Corp (parents copany of
Vinacafé Bien Hoa). This helps Vinacafé Bien Hoa's sales costs in the first quarter of this year to be just
under VND 20 billion, while that in the last year was more than VND 167 billion.
(Cafebiz 2018)

3.

PERSONA

4. How the brand is triggering need recognition for that consumer segment.
According to the modern business concept, market development of customers is aimed at the needs of
customers to arrange the potential and every effort of the business to find customer satisfaction.
Vinacafé's soluble coffee products have appeared on the market và can access easily has met part of the
persona's needs for convenience. Moreover, the brand's name has been further promoted since Masan bought
out Vinacafé which stimulate the persona to buy the products along with numerous good feedbacks about
the quality of products with the unique taste in Vietnamese style on social media.

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REFERENCING:
Bachhoaxanh.com 2018, Instant Coffee, BachhoaXanh JSC, viewed 4 March 2021,
<https://www.bachhoaxanh.com/ca-phe-hoa-tan>.
Brands Vietnam 2014, red sáng tạo diện mạo mới cho bao bì thương hiệu Vinacafe, Brands Vietnam,
viewed 4 March 2021, < https://www.brandsvietnam.com/4394-red-sang-tao-dien-mao-moi-cho-bao-bi-
thuong-hieu-Vinacafe>.
Cafebiz 2018, Phân phối hàng qua Masan Consumer thay vì tự đi bán, Vincafe Bien Hoa báo lãi cao đột
biến bất chấp tài sài đỡ ‘vơi đi một nửa’, VCCorp JSC, viewed 5 March 2021, < https://cafebiz.vn/phan-
phoi-hang-qua-masan-consumer-thay-vi-tu-di-ban-vinacafe-bien-hoa-bao-lai-cao-dot-bien-bat-chap-tai-san-
da-voi-di-mot-nua-20180502112659664.chn>.
H.Võ 2015, Vinacafé “Yêu thương thành lời” - Nội dung quảng cáo thành công nhất Việt Nam trên Youtube Tết
2015, Brands Vietnam, viewed 4 March 2021, < https://www.brandsvietnam.com/tieudiem/6508-Vinacafe-Yeu-
thuong-thanh-loi-Noi-dung-quang-cao-thanh-cong-nhat-Viet-Nam-tren-Youtube-Tet-2015>.

MOIT 2019, Vinacafé rốt ráo chiếm ưu thế thị trường cà phê Việt, Ministry of Industry and Trade of Social
List Repulic of Vietnam, viewed 3 March 2021, <https://www.moit.gov.vn/tin-chi-tiet/-/chi-tiet/vinacafe-
rot-rao-chiem-uu-the-thi-truong-ca-phe-viet-14239-2701.html>.
Mordor Intelligence 2020, Vietnam Coffee Market - Growth, Trends, Covid-19 Impact and Forecast (2021-
2016, Mordor Intelligence, viewed 3 March 2021,
<https://www.mordorintelligence.com/industry-reports/vietnam-coffee-market>.
Sai Gon Giai Phong Online 2020, Nhu cầu tiêu dùng hàng hóa chất lượng cao tăng mạnh, Sai Gon Giai
Phong (Liberated Saigon) newspaper, viewed 4 March 2021, < https://www.sggp.org.vn/nhu-cau-tieu-dung-
hang-hoa-chat-luong-cao-tang-manh-670590.html>.
Vinacafé BH 2016, History, Vinacafé Bien Hoa JSC, viewed 28 February 2021,
<https://www.vinacafebienhoa.com/content/history/lich-su-cong-ty>.
Vinacafé BH 2018, Anual Report 2018, Vinacafé BH, viewed 3 March 2021,
<http://static2.vietstock.vn/data/HOSE/2018/BCTN/VN/VCF_Baocaothuongnien_2018.pdf>.
Vinaresearch 2013, KHẢO SÁT VỀ THỊ TRƯỜNG CÀ PHÊ BỘT HÒA TAN NĂM 2013, W&S Company
Limited, viewed 4 March 2021,
<https://vinaresearch.jp/upload/userfiles/files/WS_Bao_cao_thi_truong_ca_phe_hoa_tan_2013.pdf>.
Vinaresearch 2018, Báo Cáo Nghiên Cứu Mức Độ Phổ Biến Thương Hiệu (PBI) Cà phê Hòa Tan 04.2018,
W&S Company Limited, viewed 4 March 2021, <https://vinaresearch.net/public/news/2218-
Bao_Cao_Nghien_Cuu_Muc_Do_Pho_Bien_Thuong_Hieu_PBI_Ca_phe_Hoa_Tan_04.2018.vnrs>.
World Bank 2019, Age dependency ratio (% of working-age population) – Vietnam, The World Bank
Group, viewed 4 March 2021, < https://data.worldbank.org/indicator/SP.POP.DPND?locations=VN>.