TRƯỜNG ĐẠI HỌC KINH TẾ - ĐẠI HỌC ĐÀ NẴNG

KHOA QUẢN TRỊ KINH DOANH

TIỂU LUẬN VỀ HIGHLANDS COFFEE

Nhóm 2: Nguyễn Bích Hồng

Chu Thị Thu Hương

Lê Hà Nhật Quỳnh

Võ Thị Vân Trinh

Nguyễn Thanh Nhật Linh

Đà Nẵng, ngày 09 tháng 01 năm 2022

 TABLE OF CONTENTS

TABLE OF CONTENTS...........................................................................................i

TABLE LISTS.........................................................................................................iii

CATALOG OF IMAGINES....................................................................................iv

INTRODUCTION.....................................................................................................1

PART 1. THE HISTORY OF ORIGIN AND DEVELOPMENT OF HIGHLANDS

COFFEE....................................................................................................................3

1. About Company................................................................................................3

1.1. The Beginning of coffee brand - Highlands Coffee...................................3

1.2. The progress of form and development of Highlands Coffee.....................4

1.3. The vision and mission of Highlands Coffee.............................................5

1.3.1. Mission:..............................................................................................5

1.3.2. Vision:................................................................................................6

1.3.3. Organizational Structure is functional Structure.................................6

PART 2. THE ANALYSIS OF THE EXTERNAL ENVIRONMENT AND

ORGANIZATIONAL CULTURE............................................................................7

2. The External Environment................................................................................7

2.1. Macroeconomic Environment....................................................................7

2.1.1. Political:..............................................................................................7

2.1.2. Economic............................................................................................7

2.1.3. Socio-cultural:...................................................................................10

2.1.4. Technological...................................................................................11

2.1.5. Environmental:..................................................................................13

2.1.6. Legal:................................................................................................13

2.2. International Environment:......................................................................14

i
 2.3. Microeconomic Environment...................................................................15

2.3.1. Customers.........................................................................................15

2.3.2. Suppliers...........................................................................................16

2.3.3. Competitors.......................................................................................18

2.3.4. Labor Market....................................................................................29

REFERENCES........................................................................................................32

ii
 TABLE LISTS

Table 2.3-1. Direct competitors...............................................................................20

iii
 CATALOG OF IMAGINES

Figure 1.1.1. Logo Highlands Coffee........................................................................4

Figure 1.1.2. Slogan Highlands Coffee......................................................................4

Figure 1.3.1. Organizational structure.......................................................................6

Figure 2.1.1. Vietnam's Industrial Production Index Growth from Dec 2020 to Nov
2021........................................................................................................................... 8

Figure 2.1.2. The graph of GDP in Vietnam (1985-2020).........................................8

Figure 2.1.3. View Vietnam's Visitor Arrivals from Jan 2001 to Nov 2021..............9

Figure 2.1.4. The line graph of CPI in Viet Nam (2017-2020)..................................9

Figure 2.1.5. Simplified model of the population pyramid of Viet Nam (2017)......10

Figure 2.1.6. Frequency by sex and age..................................................................11

Figure 2.1.7. Rankings for Viet Nam (2019–2021).................................................12

Figure 2.1.8. Highlands Coffee’s self-service vibrator............................................12

Figure 2.1.9.Coffee growing area in Vietnam.........................................................13

Figure 2.1.10. Typical image for the site with a beautiful location of Highlands
Coffee...................................................................................................................... 13

Figure 2.2.1. Uus-china trade war............................................................................15

Figure 2.3.1. Customers...........................................................................................15

Figure 2.3.2. Coffee bean........................................................................................16

Figure 2.3.3. Viet Thai International Logo..............................................................17

Figure 2.3.4. Overall Buzz Volume about coffee shop chains in VietNam in 2020 19

Figure 2.3.5. Leading coffee-shop chains in Vietnam in 2019, by revenue.............19

Figure 2.3.6. F&B....................................................................................................26

Figure 2.3.7. Nestle's Nescafe.................................................................................27

Figure 2.3.8. Vinacafe.............................................................................................27

iv
Figure 2.3.9. Maccoffee...........................................................................................28

Figure 2.3.10. Lemon tea.........................................................................................28

Figure 2.3.11. Highland Coffee Staff......................................................................31

v
 INTRODUCTION

It has been more than a century since coffee trees were first planted in some
northern provinces, but coffee has probably never been as popular and popular as it is
now. And ever since, coffee culture and accompanying products and services have
formed in the lifestyle of Vietnamese people.

Cafe came naturally to Vietnamese people. It comes every morning to bring the
spirit to work for a long busy day, and it also comes with the bitter taste of coffee and
the sweetness that melts on the palate for those who know how to take the time to sip
and enjoy it. It brings silence between the chaos and worries and it also brings
memorable moments with so many joys and sorrows… Perhaps that's why coffee has
long become an indispensable drink for a large number of Vietnamese people,
especially office workers. Besides, fast food and other drinks are also growing rapidly
because they very well meet the needs of eating, entertainment, or simply a place for
dating.

Unlike other coffee companies, Highlands coffee chooses its direction, because
the customers it targets are those with high and moderate incomes, and the business
goal of Highlands coffee is to lead the way, leading the luxury retail industry in
Vietnam. Therefore, not only doing business in the field of coffee, but Highlands
Coffee also expands its business activities into the range of accompanying products
and services to meet the increasing needs of diners. Highlands Coffee wishes to satisfy
customers’ maximum needs, and its success is confirmed by customer satisfaction.

To apply the acquired knowledge to analyze real-world situations (organization

and organizational environment), to develop some basic skills of a manager, including
searching, organizing and information analysis, decision making, teamwork, and
communication. Our group has decided to research and analyze the Highlands
company.

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 Due to the limited knowledge as well as the ability to grasp the actual situation,
the essay must have many shortcomings. Our team is looking forward to receiving
your contribution to this research topic to be further introduced.

2
 THE SUGGESTION OF RESEARCH

PART 1. THE HISTORY OF ORIGIN AND DEVELOPMENT OF HIGHLANDS

COFFEE

1. About Company

Company’s name: Highlands Coffee - Công Ty TNHH Việt Thái Quốc Tế

Founded year: Since 1999

The company's headquarters: 240-242 Phạm Văn Đồng, P. Hiệp Bình Chánh, Q.
Thủ Đức, Tp. Hồ Chí Minh (TPHCM)

Website: https://www.highlandscoffee.com.vn/

Areas and scope of activities:

 Business: Coffee - Production and Wholesale

 Products and services: 

Coffee beans of all kinds Instant coffee

Premium coffee beans Highlands coffee

Roasted coffee beans

1.1. The Beginning of coffee brand - Highlands Coffee 

In 1995, a young Vietnamese-American entrepreneur - David Thai, had

returned to Vietnam, inspired and prompted by his love for his homeland. Because his
parents are Vietnamese, he has heard many magnificent stories about his country’s
traditional values since he was young. Despite receiving Western education,
Vietnamese-dragon blood still runs inside him and lets him back to find out the culture
of his mother-homeland.

From the love of Vietnam and the passion for coffee, in 1999, the brand named
Highlands Coffee was born with the passion of raising the café heritage of Vietnam
and spreading the spirit of Viet pride, connecting harmoniously between tradition and
modernity.

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 The slogan of Highlands: TỰ HÀO SINH RA TỪ ĐẤT VIỆT 1999
HIGHLANDS COFFEE: PROUDLY BORN FROM THE VIET’S LAND SINCE
1999

Figure 1.1.1. Logo Highlands Coffee

Figure 1.1.2. Slogan Highlands Coffee

1.2. The progress of form and development of Highlands Coffee 

Back in 1995, this young Vietnamese American - David Crown returned to

Vietnam, started the journey of coffee with 700 USD. Overcoming the difficulties of
beginning a new career, until 2000, Highlands Coffee brand appeared on the Vietnam
market when launching the product line packaged ground coffee. By 2002, the first
Highlands Coffee shop was born in the city, a week later, a Highlands Coffee shop
also was born in Hanoi, marking the landing of a modern coffee system across urban
Vietnam's major. Since then, Highlands Coffee is constantly evolving and growing, the
4
brand became famous cafes, not only domestically but also activities encroaching into
the international market.

In 2006, Highlands Coffee had 25 cafe shops nationwide. This is also a time
marked a major change in terms of Highlands Coffee brand identity and space bar. In
2011, Highlands Coffee rapidly expanded with 50 cafes. By 2014, this number was
increased to 75. And up to the present, Highlands Coffee cafes reached 100, with
widespread development in 7 major cities of Vietnam.

Born from an endless fascination for Vietnam's coffee, grown from the heart of
man with a stick, Highlands Coffee is not just a simple cafe but also carries on its
cultural mission of reflecting part of the modern lifestyle of Vietnam. Gone through a
long journey, Highlands Coffee remains focused on options selected by hand to each
best quality coffee beans, roasted fresh daily. Then after delivering to the customer, the
product of Highlands Coffee always remains the same taste, which is delicious.

By prudent steps, Highlands Coffee has achieved market leadership. Not

stopping there, the desire to introduce Vietnamese coffee to the world, Highlands
Coffee first laid the foundation for the path to conquer foreign markets, such as the
Philippines.

On this occasion, Highlands Coffee officially launched the icon Coffee Phin.
By far, the coffee Phin has been a particular symbol of Vietnamese coffee that no other
country has. Therefore, the symbol of Highlands Coffee: Coffee Phin is seen as an
affirmation of the uniqueness of the coffee culture of Vietnam, contributing to making
Vietnamese coffee an icon to reach the world.

1.3. The vision and mission of Highlands Coffee

1.3.1. Mission:

Sứ mệnh của cà phê Highlands là trở thành thương hiệu cà phê và trà Việt Nam
hiện đại dẫn đầu với sản phẩm ngon, giá cả hợp lý và trải nghiệm cà phê và trà mọi lúc,
mọi nơi.

Highlands Coffee’s mission is to become the leading brand in the taste and style
of modern Vietnam’s coffee, with reasonable prices, ready to serve customers anytime,
anywhere. [1]

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 1.3.2. Vision:

Năm 1999, Highlands Coffee ra đời với tầm nhìn trở thành thương hiệu cà phê
Việt Nam, dùng chính nguồn nguyên liệu từ đất Việt để tôn vinh văn hóa “pha phin”
đặc trưng và phục vụ cho người Việt. [2]

In 1999, Highlands Coffee was born with the vision of becoming a Vietnamese
coffee brand, using the raw materials from Vietnam to honor the typical "filter-
making" culture and serve the Vietnamese people.

1.3.3. Organizational Structure is functional Structure.

Figure 1.3.3. Organizational structure

The corporate apparatus is structured according to functions and management

hierarchy from top to bottom, with the highest management level being the Board of
Directors, which is directly accountable for the firm's running production and business
operations on behalf of the Board of Directors. The departments are in charge of
advising the director. [3]

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PART 2. THE ANALYSIS OF THE EXTERNAL ENVIRONMENT AND
ORGANIZATIONAL CULTURE

1. The External Environment

1.1. Macroeconomic Environment

1.1.1. Political: 

Vietnam's political regime is stable and sustainable development depends on

many factors, some of which can be briefly mentioned:

 Culture: VietNam has many cultural traditions. for example Multi-ethnic

culture (54 ethnic groups), united in diversity. Prominent is an open, adaptive and
harmonious culture of human civilizations that are beneficial to businesses.

 National defense and security: Vietnam implements a defense policy of

peaceful nature, self-defense, and settles all disagreements and disputes with other
countries by peaceful means. As for security, Vietnam is relatively stable and safe.

 Social life: people live in peace and are supported and supported by the state.

Political stability in Vietnam helps Highlands Coffee have an environment for

sustainable development. Facing the complicated situation of the Covid-19 epidemic
not only in Vietnam but also in the world, the Government has flexibly adjusted fiscal
policies such as exemption and reduction of many taxes and fees in areas affected by
the pandemic, to timely support businesses had an influence in the same way,
including Highlands Coffee. [4]

Additionally, the government has many policies to support coffee production as

well as the development of coffee resources. Thus, the quality of domestic coffee
products is obtained, which is the source of raw materials Highlands Coffee uses to
make drinks. [5]

1.1.2. Economic

The growth or decrease rate of some key statistical indicators in November 2021
compared to that of the same period last year:

 Industrial production: Since the COVID-19 pandemic has emerged,

production and business activities in many localities are continuing to
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 accelerate, adapting to the culture of "new normal". Many provinces and cities
recorded that over 90% of enterprises have resumed operations and restored
production chains. Therefore, Vietnam Industrial production rose 1.6% YoY in
November 2021, following a drop of 6.1 % YoY in the previous month. [6]

Figure 2.1.4. Vietnam's Industrial Production Index Growth from Dec 2020 to Nov
2021

 Gross Domestic Product (GDP): The epidemic prevention and control,

maintaining production and business has helped GDP in 2021 increase by
2.58% by estimated way over the same period last year which increased nearly
2,12%. [7]

Figure 2.1.5. The graph of GDP in Vietnam (1985-2020)

 Number of international visitors: Information from the General Statistics

Office shows that, since Vietnam piloted the international passenger flight
route, the number of visitors to Vietnam has increased sharply again. In
November, Vietnam is estimated to welcome more than 15,000 international

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 visitors, up 42.4% over the previous month. Congratulate Highlands Coffee on
coming back to welcome international guests as one of the main customers. [8]

Figure 2.1.6. View Vietnam's Visitor Arrivals from Jan 2001 to Nov 2021

 Consumer Price Index: Data released by the General Statistics Office on

December 29 showed that the monthly consumer price index in December 2021
decreased by 0.18% compared to the previous month and increased by 1.81%
compared to December 2020.

Figure 2.1.7. The line graph of CPI in Viet Nam (2017-2020)

 Core inflation: Core inflation in December 2021 increased by 0.16% over the
previous month, up by 0.67% over the same period last year. Average core
inflation in 2021 increased by 0.81% compared to the average in 2020. [9]

In general, the economic growth rate of Vietnam over the years has significantly
grown. Despite the significant impact of the Covid 19 pandemic, the scale of
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Vietnam's digital economy in 2021 will still reach 21 billion USD. [10] Inflation in
Vietnam is low, which means that domestic goods are cheap. For indigenous people,
they will tend to use domestic goods more, and for most international customers, they
will be satisfied with the price. This is beneficial for Highlands Coffee when operating
in this market. Vietnam is also a developing country with an average income of more
than 60 million VND per year; hence, paying for a cup of coffee from 40,000 VND to
70,000 VND at Highlands Coffee is possible.

1.1.3. Socio-cultural:

Nowadays, understanding the psychology and demands of customers is not only

important in businesses to generate sales but also supports them in gaining a firm
foothold in a highly competitive market. And socio-cultural has a strong influence on
customers' buying behavior.

According to the December 2021 census, Vietnam has a population of over 98

million people. The population pyramid is relatively young and people of working age
account for roughly 63.9 percent of the population. Per capita income has also
increased over the years so Highlands Coffee has chosen its customers. [11]

Figure 2.1.8. Simplified model of the population pyramid of Viet Nam (2017)

People aged from 19 to 49 have an average frequency of drinking coffee about

3 times / week. Female customers often choose to drink coffee at chain cafes.
Meanwhile, men choose to drink coffee at popular cafes or local traditional cafes
because they drink more coffee than women. [12]

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 Figure 2.1.9. Frequency by sex and age.

Besides, Vietnamese enjoy coffee as a culture and they arrive at the coffee shop
for coffee or a socialized place. Therefore, it is easy to prove that Vietnam is one of
the countries with a wide range of coffee shops, ranging from the chain, brand, and
popular shops to takeaway shops. 

From the above analysis, we can see that the rapid population growth is
beneficial for business expansion, creating consumption opportunities and increasing
revenue for  Highlands Coffee. So far, Highlands Coffee has owned the most stores
with 150 stores in Vietnam. Through customer behavior analysis, Highlands Coffee
has determined target customers. They are middle-class consumers, office workers,
and young people who are in the age between 19 and 49. Therefore, the space design
has a mixture of modern and ancient, bearing the typical Western features of stores
bearing this brand name. [13]

1.1.4. Technological 

Vietnam is catching up with the world's innovation index. WIPO ranked Vietnam 44th
out of 132 countries and economies and recognized Vietnam as one of the few
countries with systematic growth in 2021. [14]

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 Figure 2.1.10. Rankings for Viet Nam (2019–2021)

Brand drinks or food can be taken home or enjoyed on site, whatever the type
of service, the dishes are served quickly to make customers satisfied. Many devices
have been put into use such as barcode scanners and receipt printers to save time in
sales management.  Self-service vibrating cards are a unique piece of technology not to
be missed in Highlands Coffee. Customers who visit Highlands Coffee will place their
orders and pay for their purchases at the counter. They will then be issued a vibrating
card, which they must wait until it lights up and vibrates before approaching the
counter to receive the products. Customers will have a new experience with the self-
service approach because they will be able to actively order quickly, reducing wait
times and ensuring the “First In - First Serve” philosophy.

Figure 2.1.11. Highlands Coffee’s self-service vibrator

1.1.5. Environmental:

Coffee tree is a tropical plant that grows best in high

mountainous areas.  The most suitable rainfall is from 1300
to 1900 mm. The altitude is 600 to 2500m, the temperature
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is 20 -26 degrees Celsius. The high mountains of Vietnam which account for 3/4 of the
terrain also have this type of climate. In 2018, the country's coffee area was very large,
about 720,000 hectares with an annual output of more than 36 million bags and
maintained continuously until now, making Vietnam the second largest producer in the
world. It is because of the right natural environment that has brought a source of
quality coffee, which is the secret to creating the rich and delicate flavor of a cup of
Espresso at Highlands Coffee. [15]

According to WEF
announcement, in the assessment
period 2017 - 2018, the capacity
and quality of Vietnam's
infrastructure continuously
increased, from 95/144 in 2011
to 79/137 in 2016, allowing
Highlands Coffee to not only
Figure 2.1.13. Typical image for the site with
a beautiful location of Highlands Coffee contribute to a better investment
environment in Viet Nam but also to find suitable business premises, resulting in the
opening of numerous shops. Suitable locations for the Central Highlands are usually
located in the city center or famous shopping malls, which are all bustling areas. This
helps the brand to reach closer to its target audience. [16]

1.1.6. Legal:

Currently, the legal procedures in business in Vietnam are increasingly

following the trend of simplicity, the time of that procedure is shortened a lot.

Some basic laws that food businesses must follow consisting of Highlands
Coffee:

Food-Safe law: regulations on rights and obligations of organizations and

individuals in ensuring food safety. Highlands has a certificate of food safety for a
wide range of businesses. [17]

Law on corporate income tax: Highlands Coffee is taxed by income from

trading in goods and services according to regulations. [18]

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 The Government issued Resolution No.13/NQ-CP dated May 10, 2012, on
several solutions to remove difficulties for production and business, as well as market
support. This aids the economy's growth by increasing income and demand, thereby
facilitating the growth of production of businesses in general and Highlands Coffee in
particular. [19]

1.2. International Environment:

 Vietnam joined ASEAN in 1995, establishing relations with 171 countries. In

2007, Vietnam became the 150th member of the WTO, in 2016 Vietnam officially
signed the TPP agreement,... These things greatly affect the attraction of investment
capital, access to advanced technology in the modern production line, leading to
improved coffee production as well as in the sales chain. But this is also a big
challenge for Highlands Coffee because it haas to compete with similar products of
foreign companies imported into Vietnam.

 COVID-19

The COVID-19 outbreak has resulted in a public health, financial, and livelihood
disaster; various major husbandry are currently in a terrible recession, from which the
worldwide lucrative trend may be improved on a large scale and globalization will be
altered. The outbreak enables the world to enter a period of international rivalry,
forewarning, and alert.

Complicated developments of the Covid-19 surge, dragged deficit of empty

holders, high freight rates; There is a shortage of coffee force because Vietnam and
some major producing countries have been adversely affected by the Covid-19
epidemic; The coffee assiduity in general, and Highlands Coffee in particular, have
been adversely affected and have faced numerous difficulties.

 United States - China trade war

Strategic rivalry between large countries,

particularly between the United States and
China, has become strong, with both countries
going head-to-head in all industries, with a
focus on the profitable element of transnational

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Figure 2.2.14. Uus-china trade war

commerce. The impact of the US-China trade war has expanded internationally since
the beginning of 2018. Facing the negative effects of this war, goods rotation was
blocked, global trade came weak, which in turn led to a decline in profitable growth.

1.3. Microeconomic Environment

1.3.1. Customers

Right from the first days of its

establishment, Highlands
Coffee chose to follow the
strategy of using flavors and
styles between domestic and
foreign. The brand is always
associated with high-end
customers, knowledge
entrepreneurs, middle-class
users, office workers, regular
Figure 2.3.15. Customers coffee users (30 - 50 years
old) and young people - the group that tends to increase consumption (15 - 35 years
old). Customers enjoying Highland's products will feel like they belong to the upper
class. In other words, the main brand is "coffee for businessmen" and "coffee for
limited income earners".

However, after returning to Jollibee's hands, the brand that seemed only for
high-class people was "popularized" into a place serving a wider range of customers.
[20]

The brand has also gradually changed in terms of service, which is converting
from "served" to "self-service", which not only helps to reduce the cost of hiring staff
significantly but also perhaps will attract more customers, because it arouses the
curiosity of customers, they want to experience the feeling of self-service. So with
this new mechanism, the store will be operating more efficiently, serving more
customers at the same time, improving quality, thereby increasing sales.

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 The brand even attracts foreign visitors thanks to the combination of
Vietnamese style with Western culture. For young people, Highlands Coffee is also an
ideal place to hold class reunions, even birthday parties.

→ Highland Coffee is said to have had a spectacular change in drink menu,

layout and brand positioning after returning to Jollibee. This shows that Highland
Coffee has a large number of consumers spread throughout Vietnam and trusted
companions from the very beginning of its establishment.

⇒ “The customer is always right”. For a business or any business organization,

customers are the persons who bring their profits. Without customers, a business
cannot exist. But because customer tastes change every day and product requirements
are also increasingly strict, businesses always need to pay attention and pay much
attention to identifying their customers. So customers have high bargaining power.

1.3.2. Suppliers

For coffee
companies, coffee beans are
the primary commodity
management agency to the
quality of their products.
Most companies usually
have two main forms of
purchasing, that is
purchasing through private
businesses, traders and Figure 2.3.16. Coffee bean
buying directly from farmers.

Maybe in order to become a leading brand in all business words, Highlands

Coffee is required to perform in a delineated and standard manner. [21]

The drinks that we enjoy at Highlands Coffee are created from carefully
selected and highest quality coffee trees or tea leaves.

With a commitment to quality that starts with the selection of coffee beans,
Highlands Coffee only works with reputable suppliers for the best varieties. The

16
laboratory will then perform the task of testing the samples to ensure that the specified
standards are met. After entering the warehouse, workers will operate to eliminate the
poor quality. It only takes one poor quality coffee bean to be withdrawn to destroy the
entire quality of a shipment.

Ingredients at Highlands Coffee are purchased from coffee farms of people in

Gia Lai, Dak Lak, Buon Ma Thuot and Lam Dong.

In addition, Viet Thai International Co., Ltd is also a producer and supplier of
coffee, powdered coffee, roasted coffee, ... for Highland Coffee.

Figure 2.3.17. Viet Thai International Logo

⇒ Suppliers are countless factors that are equally important in the supply chain
of each business, they are the suppliers of input materials for the production process,
which affect the quality and price of the output products. of the enterprise. However,
with Highland Coffee, because there are many sources of supply, suppliers only have
low bargaining power.

1.3.3. Competitors

As we all know, Vietnam is a country with great strength in providing coffee

materials, a country that grows and produces coffee ranked second in the world after
Brazil. But more than that, drinking coffee for Vietnamese people now is not only a
habit but also a culture. Some people need a cup of hot coffee early in the morning
with the desire to have a refreshing spirit before work, but some people choose to
drink coffee as a form of fun, gathering with friends, relatives.
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 Recognizing these potentials, perhaps big investors or startups began to race to
open chain coffee shops. There are chains such as Highlands Coffee, Starbucks, Trung
Nguyen, Cong Ca, The Coffee House... Despite the potential, the chain coffee business
"piece of cake" is not easy to swallow in the Vietnamese market. Recently, a series of
players have lost their breath, including foreign chains such as Gloria Jean's Coffees,
NYDC, Caffe Bene, PJ's Coffee as well as popular domestic chains such as Saigon
Cafe, The Kafe... [22]because it's not every coffee shop owner has a strategic vision
for the business and optimal operation.

Meanwhile, Highland Coffee - the largest coffee shop chain in Vietnam

currently owned by the Jollibee fast-food restaurant chain (Philippines) - is extremely
successful in the Vietnamese market. They choose to combine European-style services
mixed with pure Vietnamese values with a very diverse and affordable menu instead
of chasing expensive coffee cups. Or like some brands such as Passio, Urban Coffee
Station, and Phuc Long, they are also successful when combining flexible business in
drinking on the spot or buying to take away, helping to save the most on space rental
costs in a very significant way. [23]

Figure 2.3.18. Overall Buzz Volume about coffee shop chains in VietNam in 2020

It can be seen that Highlands Coffee has always taken the lead in all years,
although this big man still has to be wary of heavyweights like The Coffee House,
Starbucks, or Trung Nguyen.
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 Figure 2.3.19. Leading coffee-shop chains in Vietnam in 2019, by revenue

 Direct competitors:

Table 2.3-1. Direct competitors

Characteristic The Coffee House Starbuck Trung Nguyên

Chain of stores - In August 2014, Starbucks - the world's Trung Nguyen, a

the coffee chain largest brand with successful brand at
The Coffee House worldwide coverage. home and abroad with
officially opened So perhaps it is not a presence in many
with the first store strange that the demanding markets
at 86-88 Cao "mermaid" chose such as China, Japan,
Thang. As a brand Vietnam as one of the or Singapore. In
that was born late, points for them to addition, the brand is
but with a good launch their products - also very successful in
understanding of the place with the the field of instant
the market and second-largest coffee coffee with G7
good management, producer in the world.  products being
The Coffee House Entering the exported to nearly 60

19
 quickly found a Vietnamese market in countries around the
foothold in a 2013, but up to this world. Although they
lucrative but point, Starbucks has are the same brands
difficult market like only 64 stores across founded by
Vietnam. Vietnam, compared to Vietnamese people,

- As of March domestic players like unlike Highlands - a

2018, the brand has Highlands or The combination of the

more than 100 Coffee House, this West and Vietnamese

stores across number trivial. style, Trung Nguyen

Vietnam serving Although it is also a gives users a sense of

more than 40,000 brand that entered the familiarity and

customers per day. Vietnamese market homeland.

very late [24], with 50
- The difference of
years of experience
that chain is that it
doing business in many
does not invest in
different markets,
stores in golden
Vietnam is probably
locations, but has a
not a place that can
rich menu of
cause difficulties for
drinks, reasonable
Starbucks.
prices, high-speed
wifi, a large area,
targeting the young
customer segment.

The - Youthful, modern, Up to now, when Coffee shops are

characteristics suitable for designing the interior places to meet, share
of the cafe Vietnamese of the Starbucks cafe, and discuss new ideas,
space people's "chat Starbucks has always meeting the needs of
culture" and maintained the acquiring and
especially present philosophy of "The promoting knowledge

20
at most major street third familiar place" to of passionate and
corners, bring customers a aspirational
interspersed with comfortable, familiar individuals. Since
commercial centers space, giving then, Trung Nguyen's
are the advantages customers a feeling of restaurant space has
of Vietnamese relaxation. relax, been shaped as a
coffee shops. enjoy, can put aside the "Convergence of great
Highlands Coffee chaos and worries in souls" with the
chain. life and rest, chat and message "Here we not

- On the contrary, work. That's why only provide excellent

The Coffee House Starbucks attracts so energy coffees, but

has a teenage many customers. also provide dreamy

atmosphere, leaning   The system of double dreams." dream".

towards office tables, single tables, In each space of

space and four tables, etc. will Trung Nguyen
workspace. Usually often be preferred in restaurant, beside a
appears in places the interior of delicious cup of
with a large number Starbucks coffee energy coffee are
of teenagers and shops. Because this special names:
major roads. helps the shop save Success Energy -

- Highland is set up space, create Creativity - Discovery

according to ventilation, but also - Thinking... [27]

modern trends and ensure the privacy of

national identity, customers, in line with

focusing on the philosophy of "the

traditional coffee third familiar place"

and each Highlands that Starbucks aims to

restaurant has built bring to customers.
a typical concept of customers have the

that region. Then best experience. [26]

The Coffee House

21
 is completely
different when it
comes to modern
and classic, vintage
trends. The colors
of the shop are light
and cool, the tables
and chairs all set up
a separate space for
guests. [25]

Customers Because they Customers that The customers that

realize that Starbucks targets are Trung Nguyen is
customers who mainly relatively aiming for are
drink coffee now no wealthy people with everyone, mainly
longer only drink stable incomes. focusing on the
coffee, but they However, with the popular market. And
often meet friends understanding of since then, Trung
and chat. But other customers, Starbucks is Nguyen's products are
coffee chains often considered as a "third very diverse and rich,
have very high place" after home and meeting all the needs
prices, so it is the company, bringing of customers from
difficult to attract relaxation and popular to high-end.
users. Therefore, closeness to customers
the customers that after tiring working
The Coffee House hours. “The third
targets are usually familiar place” is what
students, middle- people think of when
class people. While they think of
the customers that Starbucks. The shop is
Highlands Coffee is always located in the

22
 targeting are "front" position, so it is
middle-income not surprising that the
class or above, have shop is always
stable jobs and not crowded.
only that, the habit
of drinking coffee
also helps them
improve their
position.

Menu and taste The Coffee House Starbucks always In addition to cups of
brews a wide range offers customers a coffee prepared from
of coffees and teas variety of food and Trung Nguyen coffee
and also produces drinks such as ground producers themselves,
packaged coffee to coffee, cakes, cookies, they also have
create its brand. As teas, and seasonal packaged products,
for Highlands products. Always among them can be
Coffee, they not innovative but always mentioned as G7
only serve drinks consistent with its own Instant Coffee, Filter
and coffee, but also rules.  Coffee, S Coffee,
trade in fast food; Legend Coffee… In
At first, they sold addition, the brand
more European also launched Weasel
food, but now they Coffee, an expensive
gradually replace and rare coffee in the
the food with bread world, dedicated to
- a food that is too the true connoisseurs
familiar to of coffee, the leaders.
Vietnamese This is also a product
people.  chosen by the
Ministry of Foreign

23
 Affairs as a gift for
heads of state and
selected as cultural
diplomatic
ambassadors. [28]

The Coffee One weakness For the domestic

House will have that can be said of market, Trung
many advantages Starbucks is that the Nguyen values very
over Highlands drinks are quite diverse products
Coffee in terms of expensive. Although suitable for many
price. Perhaps considered a "luxury" people who enjoy
because the drink, with the coffee. Trung
customers they mushrooming growth Nguyen's prices are
target are middle- of coffee chains like often lower than
Price class people, the today, price is a competitors to create
store's products problem that makes it competitiveness.
usually range from difficult for Starbucks
30,000-60,000 to attract many
VND, while consumers.
Highlands Coffee
ranges from
45,000-90,000
VND.

Employee's With the motto The service attitude of Like other coffee shop
attitude "Customer-centric”, the staff shows that chains, an equally
The Coffee House they are much more important factor in
staff serve with all well-trained than the attracting customers is
sincerity and "hands-on" staff at the service attitude of

24
 respect for traditional coffee the staff. Because he
customers. And shops. Starbucks is the person who
Highlands Coffee employees know a lot directly connects with
staff too, are always about coffee, know each customer when
appreciated for many recipes and most he comes to the store,
their friendly importantly, every time Trung Nguyen
attitude and always they give a cup of Legend always asks
bring customers to coffee, they always for candidates in this
the best state. look straight ahead and position to have an
smile very brightly. open and gentle
attitude, especially to
listen. , patient.

→  Overall, Highlands Coffee is still the leading brand in The Coffee House,
Starbucks and Trung Nguyen. However, firmly grasping the deposition of its king,
Highlands Coffee still needs to be careful with this opponent, needing to have the
right directions and strategies

 Indirect competitors:

Currently, on the F&B

market, there are many products for
customers to choose from. Not only
facing competitors in the industry
but also competitors outside the
industry. Businesses have chosen
for themselves the progressive
solution of enriching the menu but
still keeping the original values.
With options such as lemon tea, Figure 2.3.20. F&B

milk tea, freeze, etc., businesses have upgraded their menus to suit the needs of
consumers and today's young customers.

25
 Nestle's Nescafe: Is the leading
instant coffee brand in the world with a
history of more than 80 years and has also
entered the Vietnamese market for nearly
30 years. In Vietnam, this brand is
becoming more and more familiar to most
people and is one of the brands with a
high market share in the Vietnamese

Figure 2.3.21. Nestle's Nescafe instant coffee market because of its efforts
to bring Vietnamese people a cup of delicious coffee to enjoy every day. Since
entering the Vietnamese market, Nescafe has clearly demonstrated creative
breakthroughs and constantly improved products according to the motto that quality is
a prerequisite for success. Especially the product that has been launched in the market
in recent years is Nescafe can, which is very convenient and extremely suitable for
today's busy life.

Vinacafe of Bien Hoa Coffee

Joint Stock Company: Started
production in 1979 and is currently
also one of the coffee companies
with a high market share in
Vietnam, behind Nescafe of Nestle
with its rich experience. Instant
coffee products have been familiar
Figure 2.3.22. Vinacafe
to Vietnamese consumers for many
years along with strong coffee flavor. Therefore, despite having to compete with many
big rivals like Nescafe or Trung Nguyen, Vinacafe still maintains its dominant position
in the Vietnamese market. With the instant coffee factory with a capacity of 3000
tons/year, Vinacafe has become the largest enterprise in terms of production capacity
and leading in instant coffee production technology. In addition, the business also
expands the scope of activities, bringing the brand to the world, which is also a good
signal for the development of Vinacafe in the future.

26
 Food Empire Holdings' Maccoffee: The
first 3-in-1 coffee brand to appear in Vietnam.
The early 1990s witnessed revolutionary
changes in Vietnam. To keep up with the pace
of the times, Food Empire Holdings has
launched MacCoffee - an innovative product
that has contributed to changing consumers'
coffee drinking habits. As the first 3-in-1
coffee brand to appear in Vietnam, with a
unique recipe combining premium coffee
Figure 2.3.23. Maccoffee
beans, cream and sugar, MacCoffee brings
convenience to coffee lovers.

There are also cups of lemon tea, peach tea at sidewalk shops, but it is very
attractive to young people, especially students because it is close and the price is also
very cheap.

Figure 2.3.24. Lemon tea

 Highland's competitors in the coffee market are quite large and have had
certain achievements, which proves that the brand needs to promote more of its
existing advantages. However, Highland Coffee's products still do not have a specific
image in the minds of customers, and the solidity cannot be confirmed. So there needs
to be a lot of management and the right direction to keep the image and user habits.

27
 1.3.4. Labor Market

Highlands Coffee has been creating a meaningful, creative and dynamic

working environment. All employees have the opportunity to express themselves, live
in an environment of solidarity and teamwork. With the core values that Highlands
Coffee has been building and pursuing, the right desires and competitive salary
policies and appropriate benefits, Highlands Coffee has brought the employees
working at the company the highest level of service. stable income, enjoy many
remuneration regimes and have opportunities for promotion, helping employees feel
secure to work and stick with them for a long time.

Salary - bonus for employees

Competitive income commensurate with working ability: At Highlands Coffee,

each individual's contribution is recognized and adequately compensated for the
employee's labor values. Evaluation results are the basis for decisions to consider
annual salary, promotion and year-end bonuses.

Bonuses according to the Company's business results, unexpected bonuses for

individuals and groups with excellent achievements, monthly revenue bonuses.

All kinds of allowances according to requirements and nature of work (fuel

allowance, phone allowance ...)

Employee health care regime

Organize annual health check-ups for employees.

Using health care and accident insurance packages for employees in addition to
the insurance program as prescribed by law to provide better healthcare for Highlands
Coffee's employees.

Employee training and development mode

In order to enhance the value of employees in the workplace and at the same
time provide a clear career orientation for employees to contribute to the success of the
company, every employee who comes to work has the opportunity to be trained and
equally developed

28
 For new employees: before coming to work, the employees will be given by the
company:

Integration training (including information about the company,

organizational regulations, activities of the Company, employees' regimes ...)

Professional training in the field of recruitment

Training orientation to develop career path

Experiential training

For employees who have been signed an official labor contract by the
Company:

Every year, the Company will provide professional training to improve

the qualifications of its staff by organizing a training course at the Company or
registering employees to attend short-term/long-term training courses at
organizations outside the office.

In case of necessity, the Company will organize training courses in

addition to the annual professional training plan for employees.

Career advancement opportunities:

At Highlands Coffee, the succession training program is held monthly to

develop qualified personnel for key leadership positions in the company. This program
will provide many opportunities for employees to be trained, challenged, develop their
careers and contribute to the company to ensure its sustainable development plan.
Highlands Coffee is committed to providing employees with a FRIENDLY, FUN,
MEANING, STABLE working environment and fair opportunities for advancement.
[29]

29
Figure 2.3.25. Highland Coffee Staff

30
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35
 DIVISION OF WORK

Name Percent of work

Nguyễn Bích Hồng 20%

Chu Thị Thu Hương 20%

Nguyễn Thanh Nhật Linh 20%

Võ Thị Vân Trinh 20%

Lê Hạ Nhật Quỳnh 20%

36