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MINISTRY OF AGRICULTURE AND RURAL DEVELOPMENT

THUY LOI UNIVERSITY


FACULTY OF ECONOMICS AND MANAGEMENT
_________________________

DEVELOP A STRATEGY TO BRING A SUCCESSFULLY SOLD


TRUNG NGUYEN FILTER COFFEE PRODUCT IN THE
DOMESTIC MARKET TO AN INTERNATIONAL MARKET
Class: 63QT – KDQT1

Student: Le Hoa Nha Uyen


ID: 2154025161
Subject: English for Bussiness Administration

Ha Noi 12/2023
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Mục lục
I. Product Introduction 3
1. The formation and development of Trung Nguyen Coffee Group 3
2. Trung Nguyen filter coffee product 3
II. Market Research 4
1. Competitor analysis 4
2. Market needs 5
III. Optimize The Product 5
IV. Distribution channels and supply chain management 6
1. Trung Nguyen Coffee's domestic distribution system 6
2. Trung Nguyen Coffee's international distribution system 6
2.1. TNI Corporation Limited Company (Trung Nguyen
International Pte., Ltd) – Business system and coffee shops in the
world 6
2.2. Coffee export system Filter 1 Trung Nguyen 6
V. Marketing and advertising options 7
REFERENCES 7

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I. Product Introduction
1. The formation and development of Trung Nguyen Coffee Group
21 years of establishment and development, has appeared in more than 60 countries
around the world and more than 20,000 coffee shops throughout Vietnam and
internationally. Featured with Trung Nguyen Coffee Village, the largest coffee shop in the
world.
On June 16, 1996, the Chairman of Trung Nguyen Coffee Group Dang Le Nguyen Vu
today founded Trung Nguyen Coffee Company in Buon Ma Thuot - the coffee capital of
Vietnam, with the first capital being a bicycle with poles. combined with the strong belief and
will of youth along with the desire to build a famous coffee brand, spreading the flavor of
Vietnamese coffee throughout the world. No one believes that after only 2 years, Trung
Nguyen Coffee has grown beyond Dak Lak province with the opening of its first coffee shop
in Ho Chi Minh City. In 2000, Trung Nguyen was present in Hanoi, implementing a franchise
model. A year later, Trung Nguyen Coffee spread nationwide. Announcing the slogan "inspire
creativity" and distilled from the best coffee beans, modern technology, unique Eastern know-
how that cannot be copied, combined with the ultimate passion that has brought Trung
Nguyen coffee conquer consumers across the country. In 2008, on the path to Dominating
Domestic Coffee - Conquering World Coffee, Trung Nguyen Coffee established an office in
Singapore with the goal of developing this market into a base to develop the domestic market.
ASEAN and conquer the global coffee market. In 2016, Legend Group globally. Announcing
the unified organization Trung Nguyen Legend and its new name, vision, and mission.
Launching the Trung Nguyen Family model - Energy Café - Life-changing Café. With a
commitment to delicious and consistent quality coffee prepared by the most passionate and
knowledgeable coffee experts. Trung Nguyen continues to assert its own identity by investing
and developing in depth so that Trung Nguyen coffee shops become creative spaces and
coffee cultural spaces.
* Vision and mission
Vision: To become a corporation that promotes the rise of Vietnam's economy,
maintains national economic autonomy, and arouses and proves a desire for Dai Viet to
explore and conquer.
Mission: Create a leading brand by bringing coffee drinkers creative inspiration and
pride in the Trung Nguyen style imbued with Vietnamese culture. Connect and develop coffee
lovers and enthusiasts around the world

2. Trung Nguyen filter coffee product


* Product Description
Trung Nguyen filter coffee has a dark cockroach brown color, a light aroma, and a
slightly bitter taste typical of the Robusta coffee variety. Che Phin 1 Coffee is specially
crafted to bring excellent cups of coffee and groundbreaking creative ideas to change people's
lives. Made from 100% delicious Culi Robusta coffee beans from Buon Ma Thuot Coffee
Sanctuary along with the world's most modern technology and unique secrets that cannot be
copied, Che Phin No. 1 has a gentle, lingering aroma. , a rich taste that delights the taste buds,
especially for coffee connoisseurs and cafes who want to have a unique taste in coffee. In
particular, mixing different types of Che Phin according to special recipes and instructions
from Trung Nguyen coffee experts can also help create your own coffee-drinking taste, with a
unique and rare flavor.

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* Product value
Coffee flavor creates cultural value in coffee beans
The rich flavor of coffee has become familiar in the daily lives of Vietnamese people.
The sophistication of Vietnamese brand coffee is shown in the unique and unique culture and
enjoyment style of Vietnamese people
Vietnamese people often do not consider coffee as a quick drink like American and
European countries, but see it as a catalyst to sip and enjoy. Sitting next to a cup of fragrant
coffee, taking small sips while chatting with friends or simply following the hustle and bustle
of people and vehicles on the street at work time, to reflect on life and people.
Vietnamese Coffee - Helps you be full of energy
A cup of coffee a day will bring users good health, and a youthful and vibrant body.
This is considered one of the main factors promoting the popularity and development of
coffee culture in Vietnam. The value of coffee beans is always a long journey of discovery
with many new things.
Science has proven that coffee contains substances that help prevent the aging process
and damage of cells, prolong youth as well as prevent the risk of cancer extremely effectively.
In addition, middle-aged people who have the habit of drinking coffee every day have a much
lower rate of memory loss in the elderly than people of the same age who do not drink coffee.
* Product benefits
For many people, coffee is an indispensable drink every morning to help them start a
new working day full of excitement. In fact, studies have shown that coffee brings more
benefits every day than people imagine. Coffee is full of substances that help protect the body
against common health problems such as Alzheimer's disease and cardiometabolic diseases
including hypertension, coronary artery disease, dyslipidemia...
Many people will immediately think of caffeine when talking about coffee, but that is
not the only thing that exists in this popular beverage. Coffee contains many antioxidants and
compounds that have great anti-inflammatory and disease-fighting properties. This assertion
has been confirmed by experts and professors from Johns Hopkins University of Medicine. In
addition, studies also show that people who have the habit of enjoying a cup of coffee every
morning have a much lower risk of developing some serious diseases than people who do not
have this habit.

II. Market Research


1. Competitor analysis
In the international market, Nestle's Nescafe is the world's leading instant coffee brand
with a 70-year history. Nescafe is the result of a seven-year-long research and development in
Nestle's Swiss laboratory in the 1930s of the last century. From then until now, this brand still
focuses on breakthrough innovations in enjoying coffee. In 1994, they invented the aroma
retention process, an important quality improvement for instant coffees. These
groundbreaking innovations have ensured the leading position of the Nescafe brand in the
world's instant coffee market. This is also the world's second-largest beverage brand after
Coca-Cola, with about 3,000 drinks per second.
In the domestic market, Vinacafe can be considered the most formidable competitor
that Trung Nguyen faces in the current period. Vinacafe of Bien Hoa Coffee Joint Stock
Company began production in 1797. Vinacafe's products are mainly exported according to the
protocol to Eastern European countries and the former Soviet Union. The domestic market is
still too unfamiliar with this type of product. However, entering the market mechanism, and
facing a new competitive environment, Vinacafe's board of directors has determined its own
direction to focus on developing the instant coffee market. Vinacafe also knows how to take
advantage of its advantages. the home field when focusing on propaganda and product
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promotion. In less than 10 years, Vinacafe has grown dozens of times in scale. With an instant
coffee factory with a capacity of 3000 tons/year, Vinacafe has become the largest enterprise in
terms of production capacity and the leader in instant coffee production technology...Besides,
Café Vinamilk of Vietnam Dairy Products Joint Stock Company - Vinamilk is also a
competitor in the Vietnamese market. After a period of research and understanding the tastes
and coffee drinking habits of Vietnamese consumers, Vietnam Dairy Products Joint Stock
Company - Vinamilk has launched a new Vinamilk instant coffee product, meeting the taste
of enjoying coffee. Vietnamese coffee is instant coffee with a rich flavor like traditional filter
coffee. With the dedication to creating especially delicious instant coffee products with the
rich flavor of Vietnamese filter coffee, Vinamilk Boldly invested in a modern coffee factory
with a total investment of nearly 20 million USD, on a campus area of up to 60,000 square
meters in Binh Duong. The factory has a capacity of 15,000 tons/year, equipped with an
extremely modern coffee production line at every stage. Although previously, people only
knew Vianmilk as a company specializing in milk production, With the ambition to diversify
products, Vinamilk researched and launched an instant coffee product that first appeared on
the market in July 2006. Although it was born after Nescafe, Vinacafe, and Trung Nguyen,
with its continuous efforts, in the near future Vinamilk can find its place in this market.
2. Market needs
- Density: Consumption in urban areas increased 2 times compared to rural areas for
powder form. Rural consumption has low consumption but the growth rate is fast.
- Age: The survey shows that young and adolescent customers have the fastest-
growing coffee consumption, both in powdered coffee and instant coffee. Young and middle-
aged people have the highest level of coffee consumption. The old age group (>65) increased
their consumption very little and only increased their consumption of powdered coffee.
- Occupation: For powdered coffee at home, potential service worker or technician;
office workers, craftsmen, armed forces. As for coffee at the shop, the potential is female.
People who work a lot on the mind and have professional skills, and technicians, consume the
most coffee. Consumption also increased sharply in unskilled labor.
- Consumer behavior criteria: Due to the coffee-drinking habits of some Vietnamese
people. Some people who work a lot on the mind and have specialized skills, technicians,
consume the most coffee. Consumption also increased sharply in unskilled labor.

III. Optimize The Product


For Trung Nguyen, coffee beans are the main ingredient. Trung Nguyen selects the
best ingredients from the region: Buon Ma Thuot Robusta coffee beans. With the advantage
of being located right in the coffee capital of Vietnam, Trung Nguyen has the advantage of
possessing the quantity and quality of premium coffee. When released to the international
market, the product still retains the Vietnamese language - the mother tongue of the
product line, in order to confirm the origin of the product, as well as promote the cultural
image and spiritual drinks of Vietnam. Vietnamese people. Raw materials used for packaging
meet food hygiene and safety requirements according to international standards, are
controlled according to the HACPP system, and the laminated film applies solvent-free
technology. Compound laminated film structure OPP/PP, OPP/CPP, OPP/MCPP,
PET/MPET/LLDPE, PET/AL/LLDPE... applied in the tea and coffee food packaging industry.
The packaging is printed with high quality, good adhesion, resistance to oxygen, water vapor,
scent retention, and the best quality of the product. Packaging materials are very diverse,
including paper: kraft paper, duplex paper, carton paper, gouache paper,... and other
materials, ensuring product quality and meeting customer needs. row. Besides, Filter Coffee
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1 products are created from high-level production technology, NEUHAUS NEOTEC is known
worldwide as an expert in coffee processing, NEUHAUS NEOTEC provides coffee production
lines. Complete coffee roasting line for small, medium, and large coffee roasters around the
world.

IV. Distribution channels and supply chain management


1. Trung Nguyen Coffee's domestic distribution system
In the diagram we see that Trung Nguyen currently uses a multi-channel system to
bring its products to consumers. Channel activities:
+ For the franchise system: Being the first unit to apply franchising in Vietnam only 2
years after appearing on the market. At Trung Nguyen coffee franchises, coffee lovers
everywhere will feel the unique coffee culture of Vietnam. Since its inception and
development, Trung Nguyen has so far owned about 1,000 franchised coffee shops. The
operating principle of franchise establishments is to bring people to enjoy cups of coffee with
delicious, rich traditional flavors only found in Vietnam.
+ Traditional distribution channels: Wholesalers (distributors), retailers (grocery
stores) and consumers. With traditional distribution channels, Trung Nguyen Coffee mainly
focuses on distributing mid-range and mass-market coffees at low prices. Because these
product lines are easy to consume and reach the majority of customers, they are most
welcomed and trusted by many users. To get products to consumers, Trung Nguyen has
cooperated with 3 levels of distribution: wholesalers (distributors, large and small
supermarket systems), and retailers (small sales points, retail stores). retailers, grocery stores)
and finally the consumer.

+ Modern distribution channels: Shopee, Lazada, Tiki,.. With the prominent trend in
recent years of doing online business and putting products on e-commerce sites, Trung
Nguyen Legend has officially launched the "Trung Nguyen Legend coffee brand booth" on e-
commerce platforms. This is a milestone marking an important step for the Group on its
coffee export journey by taking advantage of the cross-border e-commerce platform.

2. Trung Nguyen Coffee's international distribution system


2.1. TNI Corporation Limited Company (Trung Nguyen International Pte., Ltd) – Business
system and coffee shops in the world
Trung Nguyen is the first enterprise to apply the franchise business model by building
a widespread franchise system domestically and in major markets such as the US, Japan,
Singapore, Thailand, China, and Cambodia. , Poland, Ukraine. With the form of franchising,
Trung Nguyen brings coffee lovers a unique style of enjoyment, imbued with Vietnamese
cultural identity and the quintessence of humanity.
2.2. Coffee export system Filter 1 Trung Nguyen
* In the UK: Dragon coffee company
Dragon Coffee is the trading name of Dragon e-Business Ltd., a web marketing
company headquartered in Cardiff, UK. The business arose from an offshoot of the company's
previous travel business, Dragon Travel, a tour operator specializing in travel to Southeast
Asian countries. The company is affiliated with the Dragon travel business, specializing in
tourism and traveling to Vietnam, Laos, Cambodia, and China... convenient to promote and
introduce the company.
* In Canada: H & O company coffee

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Customers can also order Trung Nguyen products at the company's online websites in
many countries around the world. H & O Company Coffee is a company specializing in
trading Vietnamese coffee products, including Trung Nguyen.

V. Marketing and advertising options


Trung Nguyen focuses mainly on PR, based on the brand's core values instead of
promoting advertising activities. Trung Nguyen breathes the national soul into the Slogan,
Logo, and each product to cherish and promote national pride. This helps Trung Nguyen
quickly create a strong impression and create sympathy with Vietnamese people, while also
attracting foreign customers.
Trung Nguyen does not pay too much attention to advertising programs but mostly
focuses on PR and promotion plans.
- PR activities: Trung Nguyen promotes the spirit and national pride in its logo and the
impressive slogan "Sparking creativity". The system is also proactive in fulfilling its
responsibilities to the country and society as committed by sponsoring small brands when
they encounter difficulties.
For example, Vietnam's Thanh Long during the crisis had a lot of inventory that could not
be exported. Or programs that sponsor scholarship projects to study abroad. Especially the
World Coffee Capital project in Dak Lak. The above meaningful and practical activities have
helped Trung Nguyen quickly gain the trust and support of customers.
- Promotion: The marketing mix of Trung Nguyen coffee also focuses on implementing
many promotion programs for customers. Such as deep discounts, buy a thermos and get 10
cups of energy coffee, minigames, etc. Besides, the brand also implemented a cooperation
plan with Moca - an online payment platform and 50% off. % when paying here.
In addition, Trung Nguyen also constantly exploits social platforms such as Youtube and
Facebook to increase accessibility. This group does not promote advertising but instead uses
the brand's core value foundation for PR. This strategy has partly helped the brand quickly
make a strong impression on Vietnamese users as well as attract many foreign customers.

REFERENCES
1. https://trungnguyenlegend.com/
2. https://www.bachhoaxanh.com/kinh-nghiem-hay/phan-tich-va-cam-nhan-tat-ca-cac-
loai-ca-phe-trung-nguyen-1151252
3. https://dragoncoffee.com/
4. https://www.vinmec.com/vi/tin-tuc/thong-tin-suc-khoe/dinh-duong/13-loi-ich-suc-
khoe-cua-ca-phe-dua-tren-khoa-hoc/
5. https://motherlandcafe.com/gia-tri-dang-sau-mot-tach-ca-phe-nguyen-chat.html

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