MARKETING PLAN

HIGHLANDS COFFEE
Subject: Marketing Management
Lecturer: Le Hong Dac
Class: MKT1102
Group 5:
1. Dương Ngọc Trinh
2. Đặng Thị Kim Loan
3. Trần Thái Trân
4. Nguyễn Phan Hoàng Anh Thư
1. Executive summary
 HIGHLANDS OVERVIEW
• 2000, Highlands Coffee originated as a packaged
coffee business in Hanoi.
• 2002, became a chain of well-known coffee
shops, expanded throughout Vietnam and
abroad.
• Website: http://www.highlandscoffee.com.vn/
• Fanpage:
https://www.facebook.com/highlandscoffeevietn
am
• Location: 181 coffee shops in the country, 72 in
Ho Chi Minh City.
A Highlands Coffee shop in
Packaged
HCMC coffee
 Fanpage

Website
Reason for company to survive
• Since 1998, Viet Thai international join stock
company has grown into one of the largest
consumer marketing and multi-unit retail
operators in Vietnam.
Reason to write this marketing plan
• Make Highlands Coffee become one of the
most favorite brands in Vietnam and become
the leader in retailer industry.
2.Strategic Objectives
 2.1. Mission
• Bring delicious Vietnamese coffee in a modern
and comfortable environment that reflects the
appeal of modern Vietnamese life.
• Exploit Vietnamese coffee beans and develop
the Vietnamese coffee brand in the world
market.
• Make Vietnamese coffee become a favorite
drink of the Vietnamese and people all over
the world in general.
 2.2. Vision
• Become a favorite coffee shop chain and be
closer to people, especially the young.
2.3. Goal
• Lead the high-grade retail industry of Vietnam.
2.4. Philosophy
• Combine the essence of the modern world
with the traditional values of the Vietnamese
culture.
3. INDUSTRY ANALYSIS
 Situation analysis
In this quick-changing world, along with the busy working pace and dynamic style, the
way Ha Noi people enjoy life is much different from the past. Consequently, the service
section, includes coffee shops, has many improvement to fit this trend.

Higher living standard leads to higher demand and higher expectation from customers.
They are willing to pay more for products that give them technical, functional or
emotional benefits.

It can be seen that the market for coffee shops is becoming more and more competitive,
and threats to Highlands coffee come from both their direct competitors and indirect
competitors.

Highlands’s target customer are 18 to 45 years old. Clearly, its core rivals are other
luxurious cafe brands which serve the same target customers such as The coffee Bean
and Tea Leaf restaurant chain. However, Highlands holds the strengths of delicious
coffee and good reputation.

Beside, the growth of substitutes like tea shops (Taiwan milk tea) or yogurt shops also
raise the risks for Highlands. Although these kinds of shop target customers are
teenagers, Highlands and other coffee shops are still under the risk of losing customers
if they cannot manage their business well.
F&B Analysis
• F & B business is now a hot industry and many people
choose it to start a business.
• According to a report by Euromonitor International's
Market Research Group, in the period from 2014 -
2019, F & B market in Vietnam will reach an average
annual growth rate of 18%.
• In franchising, the F&B field accounted for 43.7% of the
businesses with 42 brands in the fast food, cake,
coffee, beverages, hot pot restaurants.
• The F&B franchise market is bustling and is expected to
explode in the future.
 Franchise from overseas

F&B

2%
10% Fashion

11% Education
44%
Other Retail Stores
14%
Medicines, Chemicals, Real Estate
Agencies,...
19%
Convenience Stores
• Franchising in the field of F & B is
increasingly popular in Vietnam these days
because:
 Business owners do not have to spend a
lot of money, time, mind to build a brand.
 Risk issues in startups are minimized as a
successful business model is available.
 Franchisees also "inherit" experience,
business know-how of the franchisors and
benefit chain effects of the system.
• Currently there are about 540,000 food
outlets in the country
 430,000 are small stores
 80,000 restaurants
 22,000 coffee shops, bars
 7,000 fast food restaurants
Quantity of F&B stores in Vietnam
1%

4%
15%
Small stores
Restaurants
Coffee shops and Bars
Fast food restaurants

80%
• Many small and large brands in Vietnam
are losing opportunities and cannot
convince foreign investors to invest
because of the inadequate investment in all
aspects of their businesses.
• In order to be able to run restaurants and
coffee shops efficiently, it requires:
 Managers to have a good knowledge of
the industry and experienced.
 Staffs must be trained in professional
skills.
 An intelligent management system,
especially the chain model.
• When choosing a chain-based business,
"uniformity" across the system is one of the
factors that directly influence the brand's
survival. This “uniformity” includes:
 taste of the food
 restaurant style
 staff service
 marketing programs
 management
=> Managing the chain business model can also
be considered as an art because all restaurants
should be operated at full capacity, but in the
common sense of the system, bringing high profit
and saving cost.
MARKET SHARE
• Highlands Coffee’s market
share in Vietnam is at second
place with 26%, just after
Trung Nguyen (49%) and
before The Coffee Bean (7%)
as well as Starbucks (6%).
• This achievement thanks to
it’s drinks, price and
especially locations: in almost
every big building and mall in
Hanoi and Saigon, in the
exclusive outdoor locations.
SWOT ANALYSIS
 Strengths (S) Weakness (W)
1. brand positioning advantage 1. not focus on marketing

2. is recognized as a high-end 2. Service performance is not

coffee brand high

3. Highland coffee is the coffee 3. Bank loans

SWOT brand that has the highest
average perception (44.44%)
compared to Trung Nguyen
(31.11%).

4. Accessibility, utilization,
incentives

5. Good facilities
 Opportunities (O) Threats (T)

- Vietnam joined the - The participation of

WTO foreign counterparts
- Macroeconomic - Banks do not meet
demand, poor service
stability, growth
- The population shift
development from one region to
SWOT - Large market another
potential - Customers favor
- Preferential policies other brands
of the state - Raising interest rates
- Fierce competition
- Taxes
COMPETITION
POSITIONING
DIRECT COMPETITORS
Competitive Framework
Future Goal
-Improve images of stores.
-Rebuild the brand personalities.
-Update menu with new flavors.
-Expand revenue.
-Improve the quality of coffee beans.
-Improve PR strategy.
Current Strategy
-Develop destinations for those who want to
enjoy premium quality of traditional coffee.
-Different types of coffee outlets. (Trung
Nguyen coffee maintains top of market
position with LS retail Hospitality,2009)
-Expand to foreign market.
Assumtion
Blind point:
-Low awareness from young generation.
-Do not focus on developing styles and
infrastructures.
-Do not invest much on advertising.
Capabilities
-Strong foothold in domestic coffee market.
-The first Vietnamese franchise of coffee
house.
-Wide distribution.
-More varieties in product line.
Competitive Framework
Future Goal
-Continue to expand the market.
-Create application to order and pay -High price.
in advance.
Current Strategy
-Enter Vietnamese market through the
third party.
-Maintain Starbucks brand but adjust
to fit Vietnamese market.
Assumtion
Blind point:
-Do not have much experience in
Vietnamese market.
Capabilities
-Attracting locations.
-Loyalty customers.
-International famous brand name.
-Well-training staffs.
-Famous brand all over the world.
-Invest more in advertising.
Competitive Framework
Future Goal Assumtion
-Add more stores nationwide Blind point:
(by2020, open 200 stores -Park on the pavement.
nationwide) -Narrow space.
-Intend to sell packaged coffee.
-“Jump” to the field of milk tea,
open 40 stores in 2018.
Current Strategy Capabilities
-Always improve the quality. -Beautiful places
-Attach importance to image -Create design, space, build the
building, space. atmosphere in the stores.
-Enhance the customer experience. -Maintain quality service and
quality products.
Competitive Framework
Future Goal
-Expand their business scale.
-Improve service.
-Power to the international market.
Assumtion
Blind point:
-Space is small and always crowded.
-Mixing is not equal.
-Poor service.
-Shortage in the parking lot.
-Quality of service is uneven.

Current Strategy Capabilities

-Target to diverse customers. -Reasonable price.
-Widen brand promotion. -Nice locations.
-Develop traditional coffee flavors. -Well known coffee chain of young
Vietnamese people.
-Rich menu.
4. MARKETING STRATEGY
MARKET SEGMENTATION
 SEGMENTATION

Student/young people Family

Officer Bussinessman
USER POSITIONING
5. MARKETING MIX
Iced filter 29.000-35.000-39.000 VND Filter freeze 49.000-59.000-65.000
coffee milk VND
Iced filter 29.000-35.000-39.000 VND Caramel filter freeze 49.000-59.000-65.000
coffee VND
Hot filter 29.000 VND Hazelnut filter freeze 49.000-59.000-65.000
milk coffee VND
Hot filter 29.000 VND Classic filter freeze 49.000-59.00065.000
coffee VND
Espresso 44.000-54.000 VND Freeze green tea 49.000-59.000-65.000
American 44.000-54.000 VND VND

Cappuccino 54.000-64.000 VND Freeze chocolate 49.000-59.00065.000

VND
Latte 54.000-64.000 VND
Cookies & cream 49.000-59.000-65.000
Mocha 59.000-69.000 VND VND
Caramel 59.000-69.000 VND
macchiato
Because : Based on the perception of target
customers. Brand positioning: coffee for
entrepreneurs, good quality coffee .
• In general each Highlands Coffee’s product of such high
price is used in the valuation method based on the
value that customers receive from products and
services. This is called PERCEIVED-VALUE PRICING.
• Factors affect the products’ value:
1. Product quality
2. Features, product design
3. Point of view, target customer rating for the
product
4. The scarcity of the product
5. The attached services of the product
• The strengths of the Highlands Coffee’s distribution:
₋ Located in the city center .
₋ Located at the corner of the intersections.
₋ Customers are mainly foreigners, middle class, young
people and officers.
₋ Populated areas.
₋ Nice view.
The Highlands has 181 branches nationwide:
Hồ Chí Minh 72 Hà Nội 50
Đà Nẵng 14 Hải Phòng 8
Bình Dương 6 Đồng Nai 8
Cần Thơ 4 Vũng Tàu 5
Nha Trang 4 Vinh 3
Huế 1 Hạ Long 3
Thanh Hóa 1 Bắc Ninh 1
Thái Bình 1
Next year, we intend to open 20 new stores in
highly urbanized cities (Bac Ninh, Thanh Hoa,…)
 As the leading element of service marketing. People
create products and services, and also influence good
thing or bad things result.
 Organization Structure
District
Manager

Store
Store Store
manager
manager 1 manager 2
n...

Supervisor

Delivery Service
Bartender Cashier Security
staff staff
 JOBS PART TIME FULL TIME

Service 3.000.000 VND 6.000.000 VND

Cashier 4.000.000 VND 8.500.000 VND

Supervisor 4.500.000 VND 10.000.000 VND

Manager 5.500.000 VND 12.000.000 VND

District Manager 7.000.000 VND 15.000.000 VND

Bonus salary : Salary will increase in 3 months and according to

work experience. Moreover, staff can receive tips from the
customers.
 Space in Highlands Coffee is the first impression ,
bringing customer reviews for the brand, great support for
the brand position in the eyes of users and the market

• SHOP DESIGN :
 Comfortable
 Warm
 Modern

• CONVENIENT MODERN EQUIPMENT

• POLITE UNIFORM, SUITABLE WITH WORKING
CONDITIONS.
• PROCESSING PRODUCTS :
 Check samples with strict standard
 Preservation the coffee beans in a dry place and regularly check the
humidity
 Special packaging air outlet
• PROCESS SERVING :
 Warm, conscientious.
 Booking via website, hotline.
 “Pay, pick up at the counter.”
SELF-SERVE BASIS
1. Traditional coffee flavors :
2. Espresso coffee :
• Espresso coffee
• Cappuccino coffee
• Latte coffee
• Vanilla latte coffee
• Caramel macchiato coffee
• Drip coffee
3. Ice blended coffee Freeze :
4. Tea, fruit and other drinks :
5. Bread, cake and other food :
6. In addition to the highlands, there are also drinks.
Example :

NEW PRODUCT :To develop more, highlands Coffee added new menu 2
new food, to serve customers better at lunch.. A main dish and a side
dish. From 12pm-15pm
• Boiled vegetables
• Pork ribs soup
• Rice
•  68.000 vnd
• Peach egg
• Grilled sandwich and butter sauce
• Iced tea
•  58.000 vnd
 • Search for information on the internet with ease : google, youtube,…
• Read / listen information through friends, newspapers,…
• The images of customers, students, old people drinking coffee happy, relaxed,
comfortable: facebook, instagram,zalo checkin…

• The message wants to transmit on the network:

 Phin sữa đá – Đậm đà chất phin
 Hãy nói YES với người thầm thương – Thử thách 7 ngày
• Time / Proposed deployment area:
 Timeline : 1 week
 Area : community HCM city
Website : http://www.highlandscoffee.com.vn/vi/home
• Product promocyte on the network pages : VnExpress, ZingMe,…
Facebook page :
https://www.facebook.com/pg/highlandscoffeevietnam/about/?ref=page_internal
• Information message HAY NOI YES, advertising clip / images,….
• Guide the customer to join the message. ( hashtag #haynoiyes , tag
friends…)
• Deadline message : from12:00pm 16/10/2018 to13:00pm 22/10/2018
ADVERTISEMENT SEARCH :
• SEO => post free message
• SEM => advertisement payment Google ads. ( Ex: Foody,
meete,..
VIRAL MARKETING :
• Post YOUTUBE
• Post INSTAGRAM and link
 Online newspapers Social network Application
EVENTS
(Zing,VnExpress,..) (Youtube,Facebook,Instagram) (Foody,Meete)

New Year Day 15.500.000 vnd 20.200.000 vnd 17.000.000 vnd

1/1
Summer 10.000.000 vnd 19.800.000 vnd 16.500.000 vnd
promotion
Woman’s day 10.000.000 vnd 20.00.000 vnd 15.000.000 vnd
8/3
Valentine day 11.000.000 vnd 18.830.000 vnd 15.500.000 vnd
14/2
Christmas day 15.000.000 vnd 21.000.000 vnd 15.000.000 vnd
24/12
Total cost 61.500.000 vnd 99.830.000 vnd 79.000.000 vnd
=> Total cost in a year : 240.330.000 vnd
PROMOTION
MEMBER CARD
 SALE PROMOTION

• Discount 20% set lunch from 11:00 to

13:00 everyday.
• Discount 30% set lunch for members from
11:00 to 14:00 everyday.
MAIN EVENTS
 NEW YEAR
• Time: Jan. 1st, 2018 – Jan. 2nd, 2018.
• Picking lucky envelopes (vouchers used in a
months). We will choose a suitable number of
coupons depend on the store’s size.
• Example: Highlands Coffee Phan Xich Long
branch: Discount levels Number of coupons

10% 25
25% 20
50% 15
75% 10
100% 5
Total: 75
 BUDGET
Content and Price in single In monetary
Quantity
form (VNĐ) (VNĐ)
Posters 15.000 6 90.000
Flyers 1.500 300 450.000
Standees 100.000 2 200.000
Vouchers 2.000 75 150.000
Lucky
1.500 75 112.500
envelopes
Decorations 3.000.000
TOTAL 4.002.500

Total cost for 181 stores: 724.452.500VND

 VALENTINE’S DAY 14/2

• Time: Feb. 14th, 2018.

• Buy 1 get 1 free.
• Take a photo, check-in facebook => give a
heart-shaped keychain as a present.
 BUDGET

Content and Price in single In monetary

Quantity
form (VNĐ) (VNĐ)

Posters 15.000 6 90.000

Flyers 1.500 150 225.000

Keychains 4.000 300 1.200.000

Decorations 2.000.000

TOTAL 3.515.000

Total cost for 181 stores: 636.215.000VND

 WOMEN’S DAY 8/3

• Time: March 8th, 2018.

• Apply equal-price drink event for women:
+ Women with member cards: 25.000VNĐ
+ Woman without member cards:
30.000VNĐ
 BUDGET

Content and Price in single In monetary

Quantity
form (VNĐ) (VNĐ)

Posters 15.000 6 90.000

Flyers 1.500 150 225.000

Decorations 2.500.000

TOTAL 2.815.000

Total cost for 181 stores: 509.515.000VND

 SUMMER PROMOTION
• Time: May and June, 2018.
• Free upsize for “Freeze” drinks.
• Special for members: pay 49.000VNĐ
(size S) for all sizes of “Freeze” drinks.
 BUDGET

Content and
Price in single Quantity In monetary
form

Posters 15.000 6 90.000

Flyers 1.500 1000 1.500.000

Standees 100.000 3 300.000

Decorations 1.500.000

TOTAL: 3.390.000

Total cost for 181 stores: 613.590.000VND

 CHRISTMAS
• With every bill over 150.000, customers will receive a
notebook (limited) and these 5 combos:
 Combo 1 Peach Jelly Tea (size S) and 1 Blueberry
Mousse Cake: 49.000VNĐ (saving 15.000VNĐ).
 Combo 1 Passion Fruit Mojito and 1 Tiramisu Cake:
58.000VNĐ (saving 20.000VNĐ).
 Combo 1 Chocolate Freeze (size S) and 1 Strawberry
Mousse Cake: 54.000VNĐ (saving 20.000VNĐ).
 Combo 1 Iced Filter Coffee (size M) and 1 Matcha
Cheesecake: 49.000 (saving 15.000VNĐ).
 Combo 1 Earl Grey Tea and 1 Passion Fruit
Cheesecake: 53.000VNĐ (saving 20.000VNĐ).
 BUDGET
Content and
Price in single Quantity In monetary
form

Poster 15.000 6 90.000

Standees 100.000 2 200.000
Printed combos
1.000 500 500.000
(paper)
Notebook 5.000 100 500.000

Decorations 2.500.000
TOTAL 3.790.000

Total cost for 181 stores: 685.990.000VND

 TOTAL COST FOR EVENT
• Total cost for PR events of 181 stores in a
years:

3.165.762.500VND
6. FINANCIALS
 Revenue forecast : increased by 3% per year

2018 2019 2020 2021

Total revenue 1.016.418.090.000 ₫ 1.046.910.632.700 ₫ 1.078.317.951.681 ₫ 1.110.667.490.231 ₫

Total cost 590.584.323.010 ₫ 608.301.852.700 ₫ 626.550.908.281 ₫ 645.347.435.530 ₫

Profits 425.833.766.990 ₫ 438.608.780.000 ₫ 451.767.043.400 ₫ 465.320.054.702 ₫