1. What is the nature of marketing?

a. Selling and advertising

b. Promoting physical products and services
c. Satisfying human needs via exchange
d. PR for products and people

2. What process reflects the most accurate about marketing activities in a business?
a. Selling and promoting products
b. Choosing, creating, delivering and communicating values to customers
c. Making sellable and marketable things
d. Selling the produced goods and services

3. What is the difference between marketing strategy and marketing management?

a. Marketing strategy is a broader concept
b. These two concepts are basically the same
c. Marketing management is about tactics, while marketing strategy is about strategies
d. Marketing strategy is a narrower concept

4. What is the logical order of the following concepts when you do marketing towards customers?
a. Value – Quality – Satisfaction - Loyalty
b. Quality – Satisfaction – Value - Loyalty
c. Quality – Value – Satisfaction - Loyalty
d. Value - Loyalty – Satisfaction - Quality

5. Satisfying target customers, integrated marketing and business efficiency are the pillars of a marketing
management concept. What is the concept?
a. Holistic marketing concept
b. Marketing concept
c. Production concept
d. Societal marketing concept

- Timeframe:
+ Strategic marketing plan: Long-term, typically spanning 3-5 years.
+ Annual marketing plan: Short-term, focusing on the coming year.
- Focus:

+ Strategic marketing plan: Outlines the overall direction and goals of marketing activities, including:

o Target market (STP): Defining the ideal customer segments to focus on.
o Marketing mix strategies: Determining the optimal combination of product, price, place, and
promotion.
o Competitive positioning: Defining the company's unique value proposition and competitive
advantage.
 + Annual marketing plan: Translates the strategic plan into specific, actionable steps for the coming year,
including:

o Marketing programs: Detailed plans for campaigns, initiatives, and activities.

o Budget: Allocation of resources to different marketing activities.
o Expected outcomes: Setting specific and measurable goals for each marketing program.

- Level of detail:
+ Strategic marketing plan: Broad and conceptual, providing a high-level overview of the marketing
strategy.
+ Annual marketing plan: Specific and detailed, outlining the exact actions and resources needed to
implement the strategy.
- Flexibility:
+ Strategic marketing plan: Relatively stable, but can be adjusted to significant changes in the market or
business environment.
+ Annual marketing plan: More flexible and can be adapted to changing circumstances throughout the year.
- Relationship:
+ Strategic marketing plan: Provides the overarching framework for the annual marketing plan.
+ Annual marketing plan: Acts as the roadmap for executing the strategic marketing plan.
Here's an analogy to illustrate the difference:
+ Strategic marketing plan: Like a map showing the overall journey and destination.
+ Annual marketing plan: Like the daily itinerary specifying the route and transportation for each day of the
trip.

In summary, a strategic marketing plan sets the long-term direction for marketing activities, while an
annual marketing plan translates that strategy into specific actions for the coming year. Both plans are
essential for achieving marketing objectives and ensuring success in the marketplace.

6. What is the best expression of a strategy?

a) A strategic plan
b) A direction about what to do to achieve stated objectives
c) A process to formulate long-term plans for an
organization
d) A strategic and tactical plan

7. What is the traditional viewpoint of business process sequence?

a) Businesses make and sell products
b) Businesses choose, design, deliver and communicate values to customers
c) Businesses develop superior products to serve a narrow group of customers
d) Businesses understand

8. In Porter's value chain model, marketing and sales functions are considered
a) support activities
b) core activities
c) profit margins
d) primary activities

9. What could be a core competency of Tesla, a US electric car producer?

a) Capability to make combustion engine
b) Capability to make car batteries
c) Ownership of Twitter social network
d) All the other answers are incorrect.
10. What is the difference between a strategic marketing plan and an annual marketing plan?
a) marketing-mix strategies
b) action programs
c) STP strategies
d) budgeting

11. At the business unit level, an external analysis means that a company analyses
a) macro environmental forces
b) the company's industry and competitors
c) customer demand and buying behaviour
d) all the answers are correct

12. At the business unit level, an internal analysis requires a company to collect ...
a) internal data only
b) external data only
c) both internal and external data
d) micro-environment data

13. A current status or a trend that makes a company easier to achieve its goals, is named after ....
a) an advantage
b) an opportunity
c) a strength
d) a threat

14. A strategic approach where a company designs strategies so that it could utilise its strengths and exploit
market opportunities, is called ...
a) the success approach
b) the survival approach
c) the adaptation approach
d) the reaction approach

15. The decision about what specific distributors should be chosen in an area belongs to ...
a) a strategic one
b) a tactical one
c) an operational one
d) both a strategic and a tactical one

16. A need that is directed to specific products and services and backed by an ability to pay, is called ___
a. a demand
b. a want
c. a specific need
d. a motivation.

17. If you can make a better mouse trap, the world will beat the path to your house. What is the marketing
management philosophy (concept) reflected in this statement?
a. The product concept.
b. The production concept.
c. The selling concept.
d. The societal marketing concept.

18. The term “a strategy” means ____

a. a method
b. a direction.
c. an approach.
d. all the answers are correct.
19.Customer value is a key concept in the marketing theory. What does customer value mean?
a. The value provided by the seller, perceived by the buyer, and the value from the buyer brought to the seller in
terms of revenues and profits.
b. the valued perceived by customers.
c. the revenue and profit that the customers bring to the seller by buying its products and services.
d. all the answers are not correct.

20.What is the major requirement of the holistic marketing concept?

a. To focus on performance marketing,
b. To conduct integrated marketing to satisfy customers,
c. To emphasize on the internal marketing.
D. To make a balance among internal marketing, marketing toward customers, relationship marketing, and
performance marketing.

21..Satisfying target customers, integrated marketing and business efficiency are the pillars of a management
concept in marketing. What is the concept?
a. Product concept
b. Marketing concept
c. Production concept
d. Selling concept

22. In formulating a marketing plan, STP marketing often belongs to ___

a. operational marketing
b. tactical marketing
c. strategic marketing
d. strategic selling

23.Denote X = Business-level strategic planning; Y = Corporate strategic planning; Z = Strategic marketing

planning. What is the correct order to do these?
a. YXZ
b. XYZ
c. ZXY
d. YZX

24.What is the modern viewpoint of business process sequence?

a. Businesses make and sell products
b. Businesses choose, design, deliver and communicate values to customers
c. Businesses develop superior products to serve a narrow group of customers
d. Businesses understand the concepts and philosophies to do business effectively

25.The BCG Matrix and GE Matrix could be applied to analyze ___

a. a set of SBUs
b. a portfolio of businesses that belong to a corporation
c. a list of product and service brands that are owned by a company
D. all the answers are correct.

26. In Porter’s value chain model, marketing and sales functions are considered ____
a. support activities
b. core activities
c. profit margins
d. primary activities

27.What is the strategic thinking of BCG Growth-Share Matrix?

a. Companies should invest on stars.
b. Dogs should be liquidated.
c. Cash cows should be protected to create cash for new SBUs.
d. All of the answers are correct.

28.Which of the following reflects the traditional viewpoint on the business process?
a.Making/Outsourcing and selling goods and services
b.Choosing, designing, distributing and communicating values for customers
c. Creating superior-quality products to customers
d. Selling and advertising effectively physical products and services

29.What are the two axes of GE Matrix?

a.Market growth and business strength
b. Revenue and profit
c. Industry growth and market share
d. Business strength and industry attractiveness

30.What could be a core competency of Tesla, a US electric car producer?

a. Capability to make efficient combustion engines for cars
b. Capability to make long-hour car batteries
c. Ownership of Twitter social network
d. All the answers are NOT correct.

31.What is the difference between a strategic marketing plan and an annual marketing plan?
a. marketing-mix strategies
b. action programs
c. STP strategies
d. budgeting

32. Customer survey to forecast consumer demand for the next period is only good for ___
a. durable products and a speficic future time interval.
b. convenience products and the next six months.
c. commodity products and the next year demand.
d. all the answers are not correct.

33.When we take advantage of an environmental opportunity to mitigate our weaknesses, we are following
___
a. an adaptation approach
b. a successful approach
c. a survival approach
d. all the answers are correct

34.What are the major objectives of industry analysis, with the separation from competitor’s analysis, in
strategic planning?
a. To find out opportunities and threats.
b. To evaluate our strengths and weaknesses.
c. To do internal analysis.
d. To make a SWOT analysis.

35.The process of identifying customers for whom the company will optimize its offering is called _____.
a. targeting
b. dominance
c. positioning
d. segmentation

36.Which of these is not one of the requirements of effective segmenation and targeting?
a. Identifying distinct groups of buyers with who differ in their needs and wants
b. Selecting one or more market segments to enter
c. Establishing and communicating the right benefit(s) for the company's market offering
d. Ensuring that the market offering is unique in every segment

37.Which of these is considered the ultimate level of targeting?

a. The one-to-one approach
b. Mass marketing
c. Mass customization
d. Tactical targeting

38.Coca-Cola's original marketing strategy that offered a single drink Coca-Cola Classic in a single sized
bottle with the advertising theme "Coke is it," is an example of ________ marketing.
a. concentrated
b. niche
c. micro
d. undifferentiated

39.The profitability in an existing industry will be lower if ___

a. The number of current competitors reduce.
b. The number of substitutes increase.
c. The new entrants are decreasing.
d. The entry barriers are higher.

40.What is a task in the external analysis?

a. Macro environmental analysis
b. Industry and competitor analysis
c. Customer analysis
d. All the answers are correct.

41.In competition analysis, an electric car producer could be considered ___ of a fuel-engine car producer.
a. a substitute
b. a direct competitor
c. a product-line competitor
d. a need competitor

42.What is a feasible competitive strategy for a market leader?

a. expanding the total market demand.
b. increasing the market share.
c. protecting the market share.
d. all the other answers are correct.

43.Skimming pricing is often applied at the _____ stage of product life cycle.
a. introduction
b. growth
c. decline
d. maturity

44.What is a main reason for the existence of a product life cycle?

a. technology advances
b. consumer ageing
c. currency inflation
d. competitors’ reaction

45.There is a(n) _____ relationship between a firm’s market share and its profitability.
a. non-linear
b. positive and linear
c. negative and linear
d. exponential

46. Huy Fong Foods Company who is excellent at producing hot chilly sauce bottles, is an example of _____
a. a market nicher
b. a market challenger
c. a market follower
d. a market leader

47.In the Customer-Value Hierarchy, when saying about five product levels, the term “a potential product”
means ___
a. the next generation product
b. an actual product with differentiation features
c. an augmented product
d. a basic product

48. What does a market offer contain?

a. a mix of products, services and prices
b. a mix of physical products and services
c. physical products
d. services and prices

49. .What is a content of the product strategy in marketing?

a. product-mix management
b. pricing for the company’s products
c. how to distribute the company’s products to customers
d. how to advertise for launching the new products

50. In what stage in a product life cycle, the company should use reminding advertisement?
a. introduction
b. growth
c. development
d. maturity

51. .In the Android OS smartphone market, Samsung is regarded as

a. a market leader
b. a market follower
c. a market challenger
d. a market nicher

52.Many companies in services use a yield pricing strategy. In nature, the yield pricing strategy is ___
a. setting flexible prices by customer, by time or by other factor to maximize the profit.
b. setting a fixed price level so that the company could maximize its profit.
c. initiating a price increase to improve the company’s profit.
d. all the answers are not correct.

53.What is the common objective of advertising for consumer goods in the introduction stage of the product
life cycle?
a. To create a positive cognitive response
b. To persuade customers
c. To remind customers to re-buy products
d. All the answers are not correct.

54. What is a content of price decisions in marketing?

a. setting a beginning price
b. initiating a change in prices
c. adapting the current prices to competitors and environmental changes
d. all the answers are correct

55.What is NOT another name of a price?

a. a wage
b. an interest rate
c. a fare
d. a cost of goods sold

56.When setting the price for a new product, what is a factor influencing the ceilling price?
A. customer assessement of unique features of the product
b. production cost
c. competitors’ prices
d. prices of substitutes

57.A product has the unit cost of $6. The mark-up rate on price is 25%. Using the mark-up pricing method,
what is the price?
a. $8
b. $7.2
c. $7.5
d. $7

58. A new product was launched and set a high initial price compared to competitors’ similar products. What
is the pricing strategy?
a. Cost-plus pricing
b. Penetration pricing
c. Skimming pricing
d. Going-rate pricing

59.In promoting for equipment and materials to manufacturers, what is the most important tool in
promotion-mix?
a. 𝑎𝑑𝑣𝑒𝑟𝑡𝑖𝑠𝑖𝑛𝑔.advertising.
b. 𝑠𝑎𝑙𝑒𝑠𝑝𝑟𝑜𝑚𝑜𝑡𝑖𝑜𝑛.salespromotion.
c. 𝑝𝑒𝑟𝑠𝑜𝑛𝑎𝑙𝑠𝑒𝑙𝑙𝑖𝑛𝑔.personalselling.
d. 𝑝𝑢𝑏𝑙𝑖𝑐𝑟𝑒𝑙𝑎𝑡𝑖𝑜𝑛.publicrelation.

60.What is not a favorable condition for skimming pricing for a new product?
a. The product has a special feature.
b. Few customers know about the company and the product.
c. The company brand is prestigious.
d. The customers are not very sensitive to price.

61.Perceived-value pricing is suitable for ____

a. a commodity product
b. a perfect competition industry
c. a differentiated product
d. all the answers are incorrect.

II. LECTURE QUESTION

1. What does a strategic marketing plan?
Strategic marketing planning is one of the main functions of marketing management. It is the process in which
the company develops marketing strategies to meet its strategic goals and objectives. The main steps include
identifying the company's current situation, analysing its opportunities

2. How does marketing affect customer value?

Customer value is defined as the benefits that customers receive from buying products and services offered by
 companies. Generally, it refers to the extent to which customers are satisfied with the products and services
they buy. Marketing is argued to initiate and develop customer value, and the marketer maintains the
relationship to keep customer loyalty and ultimately increase profit margins. Marketing is argued to initiate and
develop customer value, and the marketer maintains the relationship to keep customer loyalty and ultimately
increase profit margins

3. How is strategic planning carried out at different levels of the organization?

- Corporate Level: At the highest level of an organization, strategic planning focuses on the overall direction
and scope of the entire company. It involves top executives and the board of directors. Key steps include: a.
Mission and Vision: Defining the organization's purpose, values, and long-term aspirations. b. Environmental
Analysis: Assessing the internal and external factors that could impact the organization. c. Setting Objectives:
Establishing high-level goals and targets that align with the mission and vision. d. Formulating Strategies:
Developing strategies to achieve the objectives, such as market expansion, mergers and acquisitions, or
diversification. e. Resource Allocation: Allocating resources across different business units or divisions to
support the strategic initiatives. f. Performance Measurement: Defining metrics and performance indicators to
track progress and ensure alignment with the overall strategy.
- Business Unit Level: Strategic planning at this level focuses on specific business units or divisions within the
organization. It involves middle-level managers and functional leaders. The process typically includes: a.
Market Analysis: Conducting a detailed analysis of the target market, competitors, and customer needs. b.
SWOT Analysis: Identifying the unit's strengths, weaknesses, opportunities, and threats. c. Setting Unit
Objectives: Establishing objectives that contribute to the overall corporate strategy while considering the unit's
unique circumstances. d. Developing Strategies: Creating strategies and action plans to achieve the unit's
objectives, such as product development, market penetration, or cost leadership. e. Budgeting and Resource
Allocation: Allocating financial and other resources to support the unit's strategic initiatives. f. Performance
Monitoring: Tracking key performance indicators and adjusting strategies as needed to ensure progress toward
objectives.
- Functional/Department Level: Strategic planning at the functional or department level focuses on specific
functions like marketing, finance, operations, or human resources. It involves departmental managers and
supervisors. The process includes: a. Analyzing Internal Capabilities: Assessing the department's strengths,
weaknesses, and resources. b. Identifying Goals: Setting goals that align with the overall business unit strategy
and contribute to its success. c. Developing Strategies and Initiatives: Creating action plans and strategies to
achieve the functional goals, such as improving operational efficiency, enhancing employee engagement, or
implementing new technology. d. Resource Allocation: Allocating resources, including budget, personnel, and
technology, to support the department's initiatives. e. Performance Tracking: Monitoring key performance
metrics to evaluate the effectiveness of the strategies and initiatives and making necessary adjustments.

4. What is the strategic planning at the corporate level?

Strategic planning at the corporate level refers to the process through which a company's top management
defines its long-term goals and objectives and develops a comprehensive plan to achieve them. It involves
analyzing the organization's current position, assessing internal and external factors that may impact its future,
and making decisions about resource allocation and direction.
 The Business Mission: Clearly define the purpose and long-term vision of the business unit. This includes
identifying the core values, the target market, and the unique selling proposition of the business unit. The
mission statement serves as a guiding principle for the strategic planning process.
 SWOT Analysis: Conduct a comprehensive analysis of the business unit's internal strengths, weaknesses, as
well as external opportunities and threats. Identify the key areas where the business unit has a competitive
advantage and areas that need improvement. This analysis helps in understanding the current position of the
business unit in the market.
 Goal Formulation: Based on the SWOT analysis, set specific and measurable goals for the business unit.
These goals should align with the overall objectives of the organization and be realistic and attainable.
Goals can be related to market share, revenue growth, customer satisfaction, product development, or any
other relevant aspect.
  Strategic Formulation: Develop strategies to achieve the defined goals. This involves identifying the key
initiatives, competitive positioning, and value proposition for the business unit. The strategies should
capitalize on the strengths and opportunities while addressing the weaknesses and threats identified in the
SWOT analysis.
 Program Formulation and Implementation: Once the strategies are defined, break them down into
actionable programs and projects. Determine the resources required, timelines, and responsibilities for each
program. Develop an implementation plan that outlines the specific steps to be taken, key milestones, and
performance indicators to track progress.
 Feedback and Control: Establish a feedback mechanism to monitor the implementation of the strategic
plan. Regularly review the progress and performance of the business unit against the defined goals. This
includes gathering data, analyzing key metrics, and making necessary adjustments to the plan if required.
Feedback and control ensure that the strategic plan remains dynamic and responsive to changing market
conditions.

By following these steps, you can effectively formulate a strategic plan at the business unit level, aligning the unit's
objectives with the overall goals of the organization and maximizing its chances of success in the marketplace.

5. What are the main contents of a strategic marketing plan?

1. Executive Summary: This section provides a concise overview of the entire marketing plan. It highlights
the key objectives, strategies, and financial projections, serving as a quick reference for decision-makers.
2. Table of Contents: This page lists all the major sections and subsections of the marketing plan, making it
easier for readers to navigate through the document.
3. Situation Analysis: This section involves a thorough examination of the internal and external factors that
impact the organization's marketing efforts. It includes a SWOT analysis (Strengths, Weaknesses,
Opportunities, and Threats) and a review of the target market, competition, and industry trends.
4. Marketing Strategy: Here, the organization outlines its overall approach to marketing. It defines the target
market, positioning, and branding strategies, and establishes the marketing objectives to be achieved. The
marketing strategy aligns with the organization's overall business goals.
5. Marketing Action Plan (Program): This section details the specific marketing tactics and activities to be
implemented to execute the marketing strategy. It includes a timeline, budget allocation, and a description
of each marketing initiative, such as advertising campaigns, public relations activities, social media efforts,
and customer relationship management programs.
6. Financial Projections: This part of the plan provides a forecast of the financial outcomes related to the
marketing activities. It includes sales projections, marketing expenses, return on investment (ROI)
calculations, and other financial metrics. This information helps to evaluate the feasibility and profitability
of the marketing plan.
7. Implementation Controls: This section outlines the measures that will be used to monitor and control the
execution of the marketing plan. It includes key performance indicators (KPIs) and metrics to track the
progress and effectiveness of marketing activities. It also includes contingency plans or adjustments to be
made if the original plan is not achieving desired results.
These main contents collectively provide a comprehensive framework for organizations to develop and execute
their marketing strategies effectively. Each element contributes to the overall success of the marketing plan by
ensuring thorough analysis, clear objectives, well-defined strategies, and effective implementation and
monitoring.

6.

7. How to do strategic marketing analysis?

  Define your objectives: Clearly define your marketing objectives and what you hope to achieve through
your analysis. This could include increasing market share, launching a new product, or entering a new
market segment.
 Understand your target market: Identify and understand your target market segments. Analyze demographic
data, consumer behavior, preferences, and trends that can influence your marketing strategies. Use market
research techniques such as surveys, focus groups, and data analysis to gather relevant information.
 Assess the competitive landscape: Analyze your competitors' strengths, weaknesses, market share, pricing
strategies, distribution channels, and marketing tactics. This can help identify opportunities and threats and
determine how to position your brand effectively.
 Conduct a SWOT analysis: Evaluate your company's internal strengths and weaknesses as well as external
opportunities and threats. Identify what sets your business apart from competitors and determine areas
where you need to improve. SWOT analysis helps you understand your competitive advantage and areas to
focus on.
 Analyze industry trends and market conditions: Stay updated on industry trends, economic conditions,
technological advancements, and regulatory changes that may impact your business. Understand how these
factors can influence your marketing strategies and identify potential opportunities or challenges.
 Evaluate your marketing mix: Analyze your current marketing mix, which includes product, price,
promotion, and distribution. Determine if your offerings meet customer needs, assess pricing strategies,
evaluate promotional activities, and review distribution channels for effectiveness.
 Conduct a customer analysis: Understand your customers' buying behavior, preferences, and needs. Identify
the key factors that influence their purchasing decisions and develop strategies to attract and retain
customers.
 Set clear marketing objectives: Based on the analysis conducted, establish specific and measurable
marketing objectives. Ensure these objectives align with your overall business goals and are realistic and
attainable.
 Develop marketing strategies: Based on your analysis findings and marketing objectives, develop targeted
marketing strategies. Determine the positioning of your products or services, identify key messages, select
appropriate marketing channels, and create action plans for implementation.
 Monitor and review: Continuously monitor and review the effectiveness of your marketing strategies. Track
key performance indicators (KPIs), analyze customer feedback, and make necessary adjustments to your
strategies to optimize results.

I. Competitive Strategies by Market Position and Product Life Cycle

1. Competitive Strategies by Market Position
- A market position : how large a company’s market share is, compared to competitors
- A market structure:
+ Market leaders
+ Market challengers
+ Market followers
+ Market nichers

a. Market Leader:
 Expand market share: The market leader focuses on increasing its dominance in the market by
gaining a larger share of customers. This can be achieved through aggressive marketing, product
innovation, and superior customer service.
  Differentiation: The market leader aims to differentiate its products or services from competitors,
creating a perceived value that sets it apart. This strategy can help maintain customer loyalty and
reduce the threat of new entrants.
b. Market Challenger:
 Price competition: Challengers often try to gain market share by offering lower prices than the
market leader. This strategy can attract price-sensitive customers and put pressure on the leader to
respond.
 Product innovation: Challengers can differentiate themselves by introducing new and improved
products or services that address customer needs not adequately met by the leader. This can help
attract customers away from the leader.
 Niche targeting: Challengers may focus on specific customer segments or niche markets that are
underserved by the leader. By offering tailored solutions, they can carve out a profitable position.
c. Market Follower:
 Imitation: Market followers observe the strategies of the market leader and imitate successful
initiatives. They may offer similar products or services at a competitive price to attract customers.
 Cost leadership: Followers can adopt a cost leadership strategy by optimizing their operations and
reducing costs. This allows them to offer competitive prices while maintaining profitability.
 Customer service focus: Market followers can differentiate themselves by providing exceptional
customer service, building customer loyalty and retention.
d. Market Niche:
 Focus on specialization: Niche players concentrate on a specific product or service category and
become experts in that area. They target a small but profitable segment of the market and develop
tailored offerings.
 Customization: Niche players may offer highly customized solutions to meet unique customer
needs. This customization can be a significant competitive advantage in specialized markets.
 Deep customer relationships: Niche players build strong relationships with their customers, often
offering personalized support and a high level of expertise. This helps foster customer loyalty and
reduces the threat of new entrants.

2. Product Life-Cycle Marketing Strategies

a. Introduction Stage:
 Differentiation: In this stage, companies may differentiate their product by focusing on unique
features or benefits to attract early adopters. This strategy helps establish a competitive advantage
and build brand awareness.
 Heavy promotion: Companies often invest in extensive marketing and promotion activities to
create awareness and generate trial among potential customers. This includes advertising, public
relations, and targeted promotional campaigns.
 Limited product variations: During the introduction stage, companies typically focus on launching
a core product with limited variations to keep production costs low and simplify market entry.
b. Growth Stage:
 Market expansion: Companies seek to expand their market share by targeting new customer
segments or geographic markets. This can be achieved through aggressive marketing, distribution
channel expansion, and product line extensions.
 Competitive pricing: As competition intensifies, companies may adopt competitive pricing
strategies to attract price-sensitive customers and gain market share.
 Continuous improvement: Companies focus on product enhancements, quality improvements, and
adding new features to meet customer demands and stay ahead of competitors.
c. Maturity Stage:
 Market segmentation: With market saturation, companies often segment the market and target
specific customer groups with customized marketing messages and offerings.
 Cost leadership: As price competition intensifies, companies may adopt cost reduction strategies to
maintain profitability while offering competitive prices.
  Product diversification: Companies may explore product diversification by introducing new
variations or extensions to their existing product line to capture additional market segments.
d. Decline Stage:
 Harvesting: If a product's decline is inevitable, companies may adopt a harvesting strategy,
focusing on maximizing short-term profits while minimizing costs. This can involve reducing
marketing and R&D investments and gradually phasing out the product.
 Niche focus: Instead of exiting the market entirely, companies may choose to target a niche
segment that still values the product or repurpose the product for a different application.
 Strategic exit: If the product becomes unprofitable or no longer aligns with the company's overall
strategy, a strategic exit strategy may be pursued. This can involve discontinuing the product,
selling the product line to another company, or licensing the technology to other businesses.

* 4 BƯỚC PHÂN TÍCH MỘT CASE STUDY VỀ MARKETING:

a. Nghiên cứu – Research
Để xác định vấn đề thì không thể thiếu được quá trình nghiên cứu thị trường và có được cái nhìn tổng quan về ngành
hàng, đối thủ, người tiêu dùng, từ đó xác định thách thức thật sự mà thương hiệu đang gặp phải. Đây chính là những
yếu tố quan trọng ảnh hưởng nhiều đến việc đạt được mục tiêu và cần được tập trung khác thác để thiết lập một
chiến lược hiệu quả. Và vận dụng những kiến thức chuyên môn đề phân tích Case study và tìm ra vấn đề.
Bên cạnh đó cần phải hiểu được thương hiệu: Họ là ai, kinh doanh trong lĩnh vực nào, sản phẩm ra sao, khác biệt
nào so với các đối thủ cạnh tranh khác, lý do khách hàng tin tưởng là gì?
b. Phân khúc thị trường – Segmentation
Phân khúc thị trường là: phân chia thị trường thành các bộ phận nhỏ hơn dựa trên các đặc điểm về nhân chủng học
hoặc xã hội học, kinh tế,… Khi phân khúc thị trường theo thu nhập của người tiêu dùng, ta có thể chia thị trường
thành 3 phân khúc chính: người có thu nhập cao, thu nhập trung bình, thu nhập thấp. Nếu phân loại theo tuổi tác,
hoặc nghề nghiệp thì có thể phân ra: người dưới độ tuổi lao động, trong độ tuổi lao động, quá tuổi lao động, người
làm văn phòng, người làm tự do
c. Xác định khách hàng mục tiêu – Target Customer
Bước này, chủ yếu sẽ tập trung phân tích cụ thể đối tượng mà chiến dịch trực tiếp nhắm đến. Và tại sao lại lựa chọn
đối tượng đó? Bước này sẽ giúp chúng ta hiểu được rằng, các bước đi của chiến dịch đều có lý do. Và lý do đó ở đây
là chính là dựa trên nhóm khách hàng mục tiêu này.
Phần phân tích khách hàng mục tiêu khi phân tích case study, bạn cần quan tâm đến cách thực hiện quảng cáo, cách
thực hiện chiến dịch đã phù hợp với đối tượng khách hàng chưa? Khi khách hàng đọc được nó có gây được tác động
như mong muốn không?
d.Định vị thương hiệu – Positioning
Đây là bước cuối cùng trong quá trình phân tích. Sau khi chiến dịch hoàn thành, họ đã thu về kết quả như thế nào?
Định vị của nhãn hàng trong tâm trí khách hàng ra sao, có thay đổi gì không? Hoặc chiến dịch đã tác động đến nhận
thức xã hội như thế nào? Khi phân tích các kết quả thu được từ campaign, người đọc có thể nhận ra liệu campaign
đó thành công hay thất bại? Thành công về mặt doanh thu, về thương hiệu hay chỉ viral chung chung mà không liên
quan đến thương hiệu.

CASE STUDY
I. BMW
II. TOYOTA
III. . Toyota has built a huge manufacturing company that can produce millions of cars
IV. each year for a wide variety of consumers. Why was it able to grow so much bigger
V. than any other auto manufacturer?
VI. Toyota has built a huge manufacturing company that can produce millions of cars each
VII. year for a wide variety of consumers and has products for different price points
VIII. demanded by consumers. They segment their product according to need of customer.
IX. They create their market segment. Toyota Company is the master of lean manufacturing
X. and continuous improvement. Its plants can make as many as eight different models at
XI. the same time, bringing huge increases in productivity and market responsiveness. The
XII. Toyota Company grow so much bigger than any other auto manufacture because of the
XIII. act according to preference of the customer Market segment: Toyota Company produce
XIV. large range of subcompacts to luxury and sports vehicles to SUVs, trucks, minivans, and
XV. buses. They produce Scion car that is target the teenage and it becomes famous among
XVI. the teenage.
XVII. - Customization: customization is a process of modifying the some feature of the product.
XVIII.  Give high focus on customization to satisfy each customer.
XIX.  Listen to different customers for designing the new car  build the car in the
XX. design that is suggested by the consumer and they are timely updated.
XXI.  Develop various design of automobile that is different from the competitor.
XXII. - The performance quality of all the Toyota company auto is high and they provide high
XXIII. performance quality auto in low budget.
XXIV. - Product line: Toyota uses two way line stretching strategy. They produce high luxury car
XXV. to simple car that satisfied the need of both the customer. In the market there are very
XXVI. expensive automobiles as well cheaper. It manufacture various design of the automobile
XXVII. focusing different income level of customer.
XXVIII. - Guaranteed Auto Protection: Toyota Company provide the insurance of the automobile.
XXIX. They provide guaranteed auto protection service to all types of the auto mobile. GAP is
XXX. only available at the time of purchasing or leasing new or used Toyota.
XXXI.
XXXII. 2. Has Toyota done the right thing by manufacturing a car brand for everyone? Why
XXXIII. or why not?
XXXIV. Toyota makes automotive parts for its own use and for sale to others. Popular models
XXXV. include the Camry, Corolla, Land Cruiser, and luxury Lexus line, as well as the Tundra
XXXVI. truck. There are wide range of line product of Toyota Company automobile.
XXXVII. . Toyota has built a huge manufacturing company that can produce millions of cars
XXXVIII. each year for a wide variety of consumers. Why was it able to grow so much bigger
XXXIX. than any other auto manufacturer?
XL. Toyota has built a huge manufacturing company that can produce millions of cars each
XLI. year for a wide variety of consumers and has products for different price points
XLII. demanded by consumers. They segment their product according to need of customer.
XLIII. They create their market segment. Toyota Company is the master of lean manufacturing
XLIV. and continuous improvement. Its plants can make as many as eight different models at
XLV. the same time, bringing huge increases in productivity and market responsiveness. The
XLVI. Toyota Company grow so much bigger than any other auto manufacture because of the
 XLVII. act according to preference of the customer Market segment: Toyota Company produce
XLVIII. large range of subcompacts to luxury and sports vehicles to SUVs, trucks, minivans, and
XLIX. buses. They produce Scion car that is target the teenage and it becomes famous among
L. the teenage.
LI. - Customization: customization is a process of modifying the some feature of the product.
LII.  Give high focus on customization to satisfy each customer.
LIII.  Listen to different customers for designing the new car  build the car in the
LIV. design that is suggested by the consumer and they are timely updated.
LV.  Develop various design of automobile that is different from the competitor.
LVI. - The performance quality of all the Toyota company auto is high and they provide high
LVII. performance quality auto in low budget.
LVIII. - Product line: Toyota uses two way line stretching strategy. They produce high luxury car
LIX. to simple car that satisfied the need of both the customer. In the market there are very
LX. expensive automobiles as well cheaper. It manufacture various design of the automobile
LXI. focusing different income level of customer.
LXII. - Guaranteed Auto Protection: Toyota Company provide the insurance of the automobile.
LXIII. They provide guaranteed auto protection service to all types of the auto mobile. GAP is
LXIV. only available at the time of purchasing or leasing new or used Toyota.
LXV.
LXVI. 2. Has Toyota done the right thing by manufacturing a car brand for everyone? Why
LXVII. or why not?
LXVIII. Toyota makes automotive parts for its own use and for sale to others. Popular models
LXIX. include the Camry, Corolla, Land Cruiser, and luxury Lexus line, as well as the Tundra
LXX. truck. There are wide range of line product of Toyota Company automobile.
1. Toyota has built a huge manufacturing company that can produce millions of cars each year for a wide variety
of consumers. Why was it able to grow so much bigger than any other auto manufacturer?
Toyota has built a huge manufacturing company that can produce millions of cars each year for a wide variety of
consumers and has products for different price points demanded by consumers. They segment their product
according to need of customer. They create their market segment. Toyota Company is the master of lean
manufacturing and continuous improvement. Its plants can make as many as eight different models at the same time,
bringing huge increases in productivity and market responsiveness. The Toyota Company grow so much bigger than
any other auto manufacture because of the act according to preference of the customer Market segment: Toyota
Company produce large range of subcompacts to luxury and sports vehicles to SUVs, trucks, minivans, and buses.
They produce Scion car that is target the teenage and it becomes famous among the teenage.
- Customization: customization is a process of modifying the some feature of the product.
+ Give high focus on customization to satisfy each customer.
+ Listen to different customers for designing the new car => build the car in the design that is suggested by the
consumer and they are timely updated.
+ Develop various design of automobile that is different from the competitor.
- The performance quality of all the Toyota company auto is high and they provide high performance quality auto in
low budget.
- Product line: Toyota uses two way line stretching strategy. They produce high luxury car to simple car that satisfied
the need of both the customer. In the market there are very expensive automobiles as well cheaper. It manufacture
various design of the automobile focusing different income level of customer.
- Guaranteed Auto Protection: Toyota Company provide the insurance of the automobile. They provide guaranteed
auto protection service to all types of the auto mobile. GAP is only available at the time of purchasing or leasing
new or used Toyota.

2. Has Toyota done the right thing by manufacturing a car brand for everyone? Why or why not?
Toyota makes automotive parts for its own use and for sale to others. Popular models include the Camry, Corolla,
Land Cruiser, and luxury Lexus line, as well as the Tundra truck. There are wide range of line product of Toyota
Company automobile. I think Toyota Company done the right thing by manufacturing a car brand for everyone.
They manufacture a really great range of exciting new cars which will open people’s eyes and minds. They analyze
what a customer need and develop the same feature automobile in the comparable price. They divide their market
segment. In the market there are different people with different perception, someone may view automobile as only
transportation mean someone may take as self-pride. For those customer Toyota has to design differently. They have
to act what a customer want. Its plants can make as many as eight different models at the same time, bringing huge
increases in productivity and market responsiveness. That’s prove they produce wide variety of the auto that will use
by different types of customer. They try to develop the auto according to the customer perception. They want to
satisfy each customer. . It has been successful because has products for different price points demanded by
consumers. The price range of the Toyota Company lies very expensive to inexpensive. Toyota auto mobile are in
the reach of middle class to high class such that the user of the Toyota automobile are very much higher than other
automobile company. Toyota understands that each country defines perfection differently. Toyota company produces
and distribute their automobile all around the world and they know depending upon the country, perfection towards
the companies automobile are different so they have to act according to people perfection at that place. They
develop wide variety of the product. But the core system of the Toyota is same all around the world but outer design
and other part may be different according to the choice of huge number of customer.

3. Did Toyota grow too quickly as Toyoda suggested? What should the company do over the next year, 5 years,
and 10 years? How can growing companies avoid quality problems in the future?
Since 1997, Toyota has sold more than 3.3 million full hybrid vehicles worldwide, representing more than 80% of
all global hybrid sales. Toyota Company offers full line of cars. Popular models include the Camry, Corolla, Land
Cruiser, and luxury Lexus line, as well as the Tundra truck. Toyota is striving to develop automobiles that meet the
needs of customer’s .Toyota Company grow too quickly as their suggested. Toyota is integrating its assembly plants
around the world into a single giant network. They do customize on the car according to the need of the customer.
Toyota’s need to keep their product’s selection and quality superior to their competition. Toyota company are
become one of the successful manufacturing company due to their consistent quality. They have to maintain their
performance quality. Whether they customized the car or develop new model according to customer need they need
to maintain same core quality all around the world. They need to maintain reliability on automobile. The same
superior quality and dependable should be maintain

I. INTRODUCTION
1.1 Introduction to Starbucks (address, website, business scope, history, development
milestones)
- Address:
Starbucks Corporation does not have a single headquarters address, as it is a multinational company with locations
worldwide. However, its corporate headquarters is located in Seattle, Washington, USA. có 87 cửa hàng ở việt nam
- Website:
The official website for Starbucks is www.starbucks.com.
- Business scope:
 Starbucks is a renowned global coffeehouse chain that operates in more than 80 countries, with thousands
of stores. The company's primary focus is on the sale of coffee, tea, and other beverages, along with various
snacks and food items. Additionally, Starbucks markets a variety of coffee products such as whole-bean
coffee, instant coffee, and coffee-related accessories
 The brand has expanded its offerings to include:
 Serving handcrafted beverages, such as espresso drinks, lattes, macchiatos, and frappuccinos
 Selling pastries, sandwiches, and other food items
 Selling other items such as mugs, bags, seasonal specials and special holidays throughout the year
- History:
Starbucks was founded in 1971 by three partners: Jerry Baldwin, Zev Siegl, and Gordon Bowker. The first
Starbucks store was opened in Seattle's Pike Place Market. The company quickly grew, and by 1987 it had over 100
stores.
In 1987, Starbucks was purchased by Howard Schultz, who had been working for the company as a marketing
director. Schultz expanded the company's menu and opened new stores in new locations. He also introduced a
number of innovations, such as the Starbucks Rewards program and the Frappuccino blended beverage.
Under Schultz's leadership, Starbucks became one of the most successful companies in the world. The company's
stock price soared, and it became a household name. Starbucks was also praised for its commitment to social
responsibility and environmental sustainability.
- Development milestones:
  First Starbucks Store (1971): The first Starbucks store opened on March 30, 1971, in Seattle’s Pike Place
Market, selling high-quality coffee beans and equipment.

They began expanding to more stores in the following years

 Expansion and IPO (1990s): Starbucks rapidly expanded throughout the 1990s, going public in 1992.
 Global Expansion (2000): Starbucks reached a milestone of 2,000 stores, solidifying its position as a
leading coffeehouse chain. The company’s growth was driven by its loyal customer base and its ability to
innovate and adapt to changing consumer preferences.
 Mobile Payments and Digital Innovation (2010): Starbucks became a pioneer in mobile payments with the
launch of its mobile app. The company also invested in digital technology, loyalty programs, and
introduced innovations like the Reserve Roastery stores.
 February 2013: Starbucks opened its first store in Vietnam
 2017: Starbucks reached a milestone of 25,000 stores worldwide, demonstrating its global reach and
popularity. The company’s success was attributed to its consistent focus on quality, innovation, and
customer experience.
 Sustainability Initiatives: Starbucks has committed to sustainability, setting goals to reduce its
environmental footprint. Initiatives include ethically sourced coffee, eco-friendly store designs, and efforts
to reduce waste.
 Diversification and Product Expansion: Over the years, Starbucks expanded its menu to include not only a
wide variety of coffee beverages but also teas, pastries, sandwiches, and more, catering to a diverse
customer base.
 Community Engagement: Starbucks has engaged in various social responsibility initiatives, including
ethical sourcing, farmer support centers, and community programs, contributing to its image as a socially
responsible corporation.

1.2 Introduction to Starbucks (brands, models, specifications)

- Brand: Starbucks Coffee
- Models:
 Traditional: These are the largest and most common type of Starbucks store. They offer a full menu of
beverages, food, and merchandise, and they typically have seating for customers.
 Licensed Stores: These are smaller, more streamlined Starbucks stores that are typically located in high-
traffic areas such as airports, train stations, and office buildings. Express stores offer a limited menu of
beverages and food, and they may not have seating for customers.
- Specifications:
Starbucks stores are designed to be comfortable and inviting places where customers can relax, work, or socialize.
They typically have a warm and inviting atmosphere with soft lighting, comfortable seating, and free Wi-Fi.
Starbucks stores also have a variety of amenities, such as restrooms, power outlets, and outdoor seating.

Here are some of the key specifications of Starbucks stores:

Store size: Traditional Starbucks stores typically range in size from 1,500 to 3,000 square feet. Express stores are
typically smaller, ranging in size from 500 to 1,500 square feet. Licensed stores can vary in size depending on the
location and the licensee.

Seating: Traditional Starbucks stores typically have seating for 25 to 50 customers. Express stores may not have any
seating, or they may have a limited number of seats. Licensed stores can vary in the amount of seating they have.

Amenities: All Starbucks stores have restrooms and power outlets. Traditional Starbucks stores typically also have
outdoor seating and a fireplace. Licensed stores may not have all of the same amenities as traditional Starbucks
stores.

1.3 Business performance in the recent years

Starbucks showed resilience and continued growth despite facing challenges such as competition, changing
consumer preferences, and the impact of global events like the COVID-19 pandemic. Some key points from that
period include:
 Starbucks had been experiencing consistent revenue growth. Much of this growth was attributed to the
expansion of its store network globally and the introduction of new products, including innovations in its
coffee and non-coffee offerings.
 Starbucks has been actively expanding its presence in international markets. The company has been
focusing on adapting its menu and store formats to cater to local preferences while maintaining its global
brand identity. As of October 2023, Starbucks has over 30,000 stores in 83 countries, making it one of the
most recognizable brands in the world.
 Starbucks has been investing in digital initiatives to enhance customer experience and loyalty. This
includes the success of its mobile app, which allows customers to order ahead, pay digitally, and participate
in the Starbucks Rewards program.
 Like many other businesses in the food and beverage industry, Starbucks faced challenges during the
COVID-19 pandemic. Lockdowns and restrictions impacted store traffic, leading to a temporary decline in
sales. However, the company adapted by emphasizing digital orders, and implementing safety measures in
its stores.

-> In 2023, Starbucks reported annual revenue of $35.976 billion, up 11.55% from 2022.
- Starbucks' strong business performance is expected to continue in the years to come, as the company continues to
expand its global presence, diversify its product offerings, and adapt to changing consumer preferences. However,
the company also faces some challenges, such as rising labor costs and increasing competition from other coffee
chains.
- Overall, Starbucks is a well-positioned company with a strong track record of success. The company's focus on
customer experience, innovation, and brand reputation should continue to drive growth in the years to come.

1.3.1 Sales performance in the recent years

Year Revenue Year-over-year growth

2018 $24.61 billion 11.2%

2019 $26.50 billion 7.6%

2020 $23.57 billion -15.53%

2021 $29.061 billion 23.57%

2022 $32.25 billion 10.98%

source: Starbucks Revenue 2010-2023 | SBUX

 From this table we can see that Starbucks has experienced consistent growth in its sales performance over
the past few years. This growth has been driven by a number of factors, including strong global expansion,
diversified product offerings, digital transformation, focus on retail experience, and adaptation to changing
consumer preferences.
 Overall, Starbucks is a well-positioned company with a strong track record of success. The company's
focus on customer experience, innovation, and brand reputation should continue to drive growth in the
years to come.

1.3.2 Market share and position

Market share
 Based on available information, Starbucks' market share in Vietnam is estimated to be around 2-3% in
terms of revenue.
  In contrast, domestic coffee chains like Highlands Coffee and Phuc Long hold a larger market share in
terms of both store count and revenue. Highlands Coffee is estimated to have a market share of around 30-
40%, while Phuc Long holds a market share of around 10-15%. These figures indicate that domestic chains
have a stronger presence and wider reach in the Vietnamese coffee market.
 Despite its smaller market share, Starbucks remains a significant player in Vietnam's premium coffee
segment. The company's high-quality coffee, brand image, and modern store environments attract
Vietnamese consumers seeking a more upscale and international coffee experience.
Position
 While Starbucks faces challenges in expanding its market share due to the strong presence of domestic
chains and deeply ingrained local coffee culture, its focus on premium products, brand differentiation, and
customer experience has enabled it to maintain a significant position in the Vietnamese coffee market.
 Starbucks' position in Vietnam is characterized by its premium brand image, diverse product offerings,
modern store environments, local adaptability and digital integration. These factors have positioned
Starbucks' image and position for high-income Vietnamese consumers looking for a more premium and
international coffee experience.

CHAPTER2
CURRENT ANALYSIS OF STARBUCKS VIETNAM’S MARKETING STRATEGIES AND
ENVIRONMENT
2.1 Internal analysis
2.1.1 Segmentation and Targeting
 Segment:
Starbucks segments its targets by demographics, psychographics, and geography. Although it is possible to identify
several segments in a potential market like Vietnam, Starbucks still takes a focused, targeted marketing approach.
That means the company emphasizes a narrowly defined market segment for luxury coffee products, high quality,
high prices and eye-catching packaging. Accordingly, Starbucks' target customer profile will be Vietnamese people
with the following characteristics: 25-40 years old; belonging to the high-income class; mainly live and work in
Hanoi and Ho Chi Minh City; have the mentality of being a luxurious and wealthy person; with modern, Western
lifestyle trends; Appreciate the importance of appearance and pay attention to health, environmental, and social
safety issues.
 Demographic segmentation:
Starbucks may consider demographic factors such as age, income, education level, and occupation. For example,
talk to urban professionals and students.
 Psychographic segmentation:
We customize our services by considering your lifestyle and values. Starbucks can target people who value a
premium coffee experience or who enjoy a modern, cosmopolitan lifestyle.
 Behavioral segmentation:
Analyze consumer behavior. Frequency of coffee consumption, particular beverage preferences, or willingness to
pay a premium for quality.
 Geographic segment:
Starbucks can focus on specific areas in Vietnam, especially urban areas, where more potential customers can be
concentrated.

 Target:
Starbucks Vietnam's goal in 2023 is to open its 100th store after 10 years of the American coffee brand opening its
first store in Vietnam in February 2013, at Phu Dong intersection (District 1, Ho Chi Minh City). ). Also on this
occasion, Starbucks Vietnam is expected to launch a number of typical product lines marking a decade of
development in the country known as the coffee capital of the world.

Starbucks Vietnam's orientation is to open stores with moderate area, aiming for streamlining, looking for more
premises in new urban areas, high-rise buildings or local communities to be able to bring the best experience. The
Starbucks experience reaches more customers.
 City experts:
Starbucks targets young people in urban areas who are looking for a trendy and upscale coffee experience. This
group may appreciate the convenience of a downtown Starbucks.
 Students and Young generation:
With the popularity of coffee among students and the younger generation, Starbucks can tailor its services and
promotions to suit this target group.
 Coffee lovers:
Targeted at individuals who are passionate about coffee and want to try a variety of coffee options, including
specialty drinks and brewed coffees.
 Digital version:
Leverage digital marketing and mobile app capabilities to attract tech-savvy consumers who value convenience and
digital engagement. Socially conscious consumers:
Highlight ethical sourcing and sustainable practices to encourage consumers to prioritize socially responsible
brands.
 Foreign tourists:
Take advantage of brand recognition to attract foreign tourists who are familiar with Starbucks, creating a feeling of
familiarity and safety.
 Business meetings and connections:
Positioning Starbucks as a place for business meetings and casual networking, it attracts professionals looking for a
comfortable environment.
2.1.2 Positioning (perceptual maps, competitors’ positions, the current position)
 Cognitive map:
The perception map of Vietnamese coffee chains can take into account factors such as price, quality, locality, and
menu diversity. Starbucks, Highland and Phuc Long stores are described based on consumer perceptions.
 Opponent's position:
Highland: Known for its local authenticity and often considered a strong local competitor. Phuc Long: Vietnamese
brands can position themselves based on factors such as traditional Vietnamese coffee culture and perhaps an
emphasis on local flavors.
 Starbucks current location:
Starbucks can position itself as a global brand that focuses on high quality and a diverse menu, possibly at higher
prices than its local competitors. Starbucks could also focus on providing a comfortable, modern atmosphere that
attracts a more urban and international audience.
Starbucks' positioning strategy is based on customers and providing more than what customers need. In addition to
focusing on beverage products, the brand also designs great store spaces and spreads social responsibility with
commitments to protecting the environment and consumer health. When it comes to Starbucks, customers not only
know it for its excellent coffee or a coffee brand for the rich, they also think of a "third place" - a place where you
can often visit behind the house and where you can relax. Work to "be yourself"l

2.1.3 Market offer (physical products, services, and prices)

 Material products:
 Coffee beans: We source high-quality coffee beans from around the world, focusing on popular blends and
single origins.
 Tea and other drinks: We offer carefully selected tea leaves and other beverage ingredients to help you
recreate the Starbucks experience at home or anywhere else.
 Branded products: Retail sales of Starbucks-branded products such as cups, mugs and accessories. Service:
 Training and support: We provide training and support programs for businesses or individuals interested in
serving Starbucks coffee. This could include barista training or assistance setting up your coffee service.
 Device: We carry the coffee makers, machines and accessories you need to make Starbucks quality drinks.
 Advice: We provide consulting services to companies looking to integrate Starbucks products into their
products to ensure brand consistency.
 Wholesale price: Establish a wholesale pricing structure for businesses or retailers who purchase Starbucks
products in bulk.
 discount: To encourage businesses to buy more Starbucks products, they offer discounts and incentives for
large orders.
 Contract agreement: Our ability to enter into agreements with partners to ensure a stable and consistent
supply of Starbucks products.
2.1.4 Marketing communication (budget, messages, media, promotional tools, programs, strategies, coverage,
frequencies …)
Components of marketing communications:
 Budget:
Starbucks allocates its budget for marketing communications activities by considering factors such as campaign size,
media selection, and promotional events.
 News:
Create messages that resonate with Vietnamese viewers. This includes focusing on quality, the Starbucks
experience, and unique aspects that suit local tastes.
 Media channel:
Use a combination of traditional and digital communication channels. This can include television, radio, print media,
social media and online platforms.
 Promotional materials:
Introduce various promotional tools such as discounts, loyalty programs and limited-time offers to attract and retain
customers.
 Programme:
Develop marketing programs and campaigns that align with local events, seasons and cultural celebrations to
increase relevance.
 Strategy:
Implement strategies that help Starbucks differentiate itself from competitors, such as: Highland, Phuc Long.
Highlight premium locations, ethical sourcing, or unique menu items.
 Network range:
Target specific geographic or demographic areas in Vietnam based on research and market segmentation.
 Regularity:
Determine the frequency of your marketing communications, such as regular social media updates, seasonal offers,
and special promotions.
PR for your image through opening events, promotions, new product launches and limited gift sales to attract
customers. This is an extremely clever way of communication that is still extremely effective.
Every Name's A Story in Starbucks' Marketing strategy in Vietnam is a film depicting the story of a young
transgender man. He is struggling with the world as everyone around him always calls him by his old name. This
campaign is tied to the I Am campaign.
Starbucks gives them the right to change their name more easily when they enter a Starbucks store and are called by
Order staff by their new name in the LGBT community. This shows that each customer can only truly feel
themselves when they come to Starbucks. The strategy has brought Starbucks many outstanding achievements,
making many users impressed and love the brand more.

2.1.5 Distribution and sales (distribution channels, distribution terms, salesforce, sales policy)
 Distribution route:
 Shop: Starbucks relies heavily on retail stores strategically located in high-traffic areas such as shopping
malls, shopping malls, and urban areas.
 Franchise cooperation: By partnering with local franchise partners, Starbucks can expand its reach and
establish its presence in different regions of Vietnam.
 Grocery and retail partnerships: It is sold through grocery stores and retail partners, offering packaged
coffee beans, ready-to-drink drinks or other Starbucks-branded products.

 Shipping conditions:
 Quality management: Maintain consistent quality across all distribution channels to maintain the premium
image associated with Starbucks.
 Inventory control: Implement effective inventory management to minimize inventory and waste while
ensuring product availability.
 Supply chain and logistics: Build a strong supply chain and logistics network to support timely deliveries to
retail stores and distribution partners.
  Sales force:
 Shop staff: Starbucks associates are well-trained and customer-focused to deliver a positive customer
experience and encourage upsells.
 Field sales representative: A dedicated sales team can engage with prospective corporate customers,
explore new partnership opportunities, and manage relationships with existing partners.

 Sales policy:
 Pricing strategy: Implement a pricing strategy that reflects Starbucks' premium positioning while
considering local market conditions and competitive factors.
 Promotions and discounts: Offer promotions and discounts strategically. Seasonal promotions, loyalty
programs, or special prices on certain products.
 Loyalty program: Implement and promote customer loyalty programs to drive repeat business and improve
customer retention.
 Payment options: Offer a variety of payment options such as cash, cards, and digital payments to suit
different customer preferences.

 Ability to adapt to the Vietnamese market:

 Local cooperation:
Cooperate with local businesses, hotels, and airlines to expand sales channels and increase brand awareness.
 Localized products:
We offer products tailored to local tastes and preferences to ensure the product mix meets the expectations of
Vietnamese consumers.
 Digital Interaction:
Digital transactions are very popular in Vietnam, so use digital platforms for promotions, online ordering and mobile
payments.
 Cultural considerations:
Adjust sales and marketing strategies to suit the cultural norms, traditions and behaviors of Vietnamese consumers.
2.2 Customer analysis
2.2.1 Customer demand and buying behavior
 Customer Demand Analysis:
Market research for customer demand
 Types of Market Research:
 Surveys: Starbucks conducts both online and in-person surveys to gather information about customer
demographics, preferences, and satisfaction levels.
 Focus groups: Starbucks brings small groups of customers together to discuss their experiences with
Starbucks products and services.
 Social media monitoring: Starbucks monitors social media to track customer sentiment and identify trends.
 Sales data analysis: Starbucks analyzes sales data to understand what products are selling well and where
there are opportunities for growth.

Starbucks' market research has revealed a number of key insights about its customers, including:
 Customers are willing to pay a premium for Starbucks coffee because they believe it is of high quality.
 Customers appreciate the convenience of Starbucks stores and the variety of products offered.
 Customers are increasingly interested in healthy and sustainable products.
 Customers are loyal to the Starbucks brand and enjoy the experience of visiting Starbucks stores.

Starbucks uses its market research to make informed decisions about a variety of aspects of its business, including:
 Product development: Starbucks uses market research to identify new product opportunities and to test new
products before they are launched.
  Marketing strategy: Starbucks uses market research to develop targeted marketing campaigns that appeal to
its customers.
 Store location: Starbucks uses market research to determine where to open new stores and how to design its
stores to meet the needs of its customers.
Customer Segmentation
Urban Professionals: These are affluent, educated individuals who work in urban areas. They value convenience,
quality, and a comfortable workspace, making Starbucks an ideal destination for their daily caffeine fix and work
meetings.
Casual Enjoyers: These customers appreciate the taste and experience of Starbucks coffee but may not visit as
frequently as urban professionals. They are drawn to Starbucks for special occasions, social gatherings, or a treat
during their shopping trips.
Value-Conscious Consumers: These customers are more price-sensitive and may seek out cheaper alternatives to
Starbucks. However, they may still occasionally indulge in Starbucks' premium coffee and beverages, especially
during promotions or special offers.
Health-Conscious Consumers: These customers prioritize healthy food and beverage choices. Starbucks has catered
to this segment by expanding its menu with healthier options like reduced-fat milk, plant-based beverages, and
lighter food items.

Starbucks customers are typically affluent, urban, and educated. They are also more likely to be female and have
children. Starbucks customers are attracted to the company's coffee, but they also value the Starbucks experience,
which includes comfortable seating, free Wi-Fi, and friendly service.

Demand Drivers
There are several factors that are driving demand for Starbucks coffee, including:
 The increasing popularity of coffee: Coffee consumption is on the rise worldwide, and Starbucks is one of
the most popular brands.
 The convenience of Starbucks stores: Starbucks stores are located in convenient locations, such as
downtown areas, office buildings, and shopping malls.
 The Starbucks experience: Starbucks customers value the comfortable and inviting atmosphere of
Starbucks stores.
 The Starbucks brand: Starbucks has a strong brand reputation for quality and innovation.

Demand Challenges
Starbucks is facing several challenges that could dampen demand for its products, including:

 Rising costs: The cost of coffee beans and other ingredients is rising, which could put pressure on
Starbucks' profit margins.
 Increased competition: The coffee industry is becoming increasingly competitive, with new entrants and
established players vying for market share.
 A changing consumer landscape: Consumers are becoming more price-sensitive and are increasingly
willing to try new brands.

Opportunities for Growth

Despite the challenges it faces, Starbucks is well-positioned for future growth, thanks to several factors, including:

 A strong brand: Starbucks has a strong brand reputation for quality and innovation.
 A loyal customer base: Starbucks has a loyal customer base that is willing to pay a premium for its
products.
 Innovative products: Starbucks is constantly innovating with new products and beverages.
 An expanding global footprint: Starbucks is expanding its global footprint, with a growing presence in
emerging markets.
Buying Behavior
Habitual Consumption: Many Starbucks customers have developed a daily routine of visiting their local store for
their preferred coffee drink. This habitual consumption is driven by factors like convenience, taste familiarity, and
the Starbucks experience.
Impulse Purchases: Starbucks' enticing atmosphere, seasonal menu offerings, and limited-time promotions can
trigger impulse purchases among customers. The company strategically positions its merchandise and food displays
to encourage impulse buying.
Brand Loyalty: Starbucks has cultivated a loyal customer base through its rewards program, personalized service,
and consistent quality. These loyal customers are more likely to make repeat purchases and recommend the brand to
others.
Price Sensitivity: While Starbucks is known for its premium pricing, customers are generally willing to pay a
slightly higher price for the perceived quality and experience. However, price sensitivity can influence purchasing
decisions, especially among value-conscious consumers.
Seasonal Variations: Starbucks' sales are typically higher during the colder months when customers seek warm
beverages. Seasonal menu offerings, such as pumpkin spice lattes, contribute to this seasonal demand.
Mobile Ordering and Payment: Starbucks' mobile app has significantly impacted customer buying behavior,
enabling customers to order and pay ahead for their coffee drinks. This has increased convenience and reduced wait
times, further enhancing the customer experience.

2.2.2 Customer assessment on company products and marketing-mix

Customer Assessment of Starbucks' Products
Starbucks' products are highly rated by customers.
 Taste: Customers consistently rave about the taste of Starbucks coffee, praising its rich flavor and aroma.
 Quality: Customers perceive Starbucks coffee as being of high quality, using premium ingredients and
consistent brewing methods.
 Variety: Starbucks offers a wide variety of coffee drinks, catering to different preferences and taste buds.
 Innovation: Starbucks is known for its innovative approach, constantly introducing new products and
seasonal offerings.

Customer Feedback on Specific Products

 Espresso-based drinks: Customers particularly enjoy Starbucks' espresso-based drinks, including lattes,
macchiatos, and cappuccinos.
 Frappuccinos: Frappuccinos are a popular choice among customers who prefer blended and iced coffee
drinks.
 Seasonal drinks: Starbucks' seasonal drinks, such as the pumpkin spice latte, are highly anticipated and
well-received by customers.
 Food items: Starbucks' food offerings, such as pastries, sandwiches, and salads, are generally seen as
convenient and satisfying options.

Customer Assessment of Starbucks' Marketing Mix

Starbucks' marketing mix is effective in reaching and engaging its target audience.

 Branding: Starbucks has a strong brand reputation, recognized for its signature green logo, siren icon, and
consistent messaging.
 Advertising: Starbucks uses a variety of advertising channels, including TV, print, digital, and social media,
effectively reaching its target audience.
 Social media: Starbucks has a strong social media presence, actively engaging with customers and building
brand awareness.
 Public relations: Starbucks actively engages in public relations activities, generating positive media
coverage and promoting its brand values.
 Pricing: Starbucks' pricing strategy is perceived as premium, but customers generally are willing to pay a
slightly higher price for the perceived quality and experience.
  Store locations: Starbucks stores are strategically located in high-traffic areas, offering convenient access
for customers.
 Store atmosphere: Starbucks stores are designed to be comfortable and inviting, creating a welcoming
environment for customers.
 Customer service: Starbucks employees are typically friendly and knowledgeable, providing positive
customer service experiences.

2.3 Industry and Competitor analysis

2.3.1 Industry environment (apply the Five-Force Model by Porter)
The following are the intensities of the Five Forces impacting Starbucks Coffee Company:

 Competitive rivalry or competition – Strong Force

 Bargaining power of buyers or customers – Strong Force
 Bargaining power of suppliers – Moderate Force
 Threat of substitutes or substitution – Strong Force
 Threat of new entrants or new entry – Moderate Force

Competition or Competitive Rivalry (Strong Force)

Starbucks Coffee Company faces the strong force of competitive rivalry. In the Five Forces analysis model, this
force pertains to the influence of competitors on each other and the coffeehouse industry environment. In this case,
the following external factors contribute to the strong force of competition against Starbucks:
 Large number of coffeehouses and food-service firms (strong force)
 Moderate variety of businesses (moderate force)
 Low switching costs between coffeehouses (strong force)
The large number of coffeehouses and food-service firms is an external factor that intensifies competitive rivalry in
the context of this Five Forces analysis. Starbucks has many competitors of different sizes, including multinational
businesses and small local cafés. The company’s main competitors include coffeehouses, like Tim Hortons, and
food-service businesses, like Dunkin’, McDonald’s, Wendy’s, Burger King, and Subway. Also, competitors are
moderately varied in terms of specialty and strategy. For example, some coffeehouses focus on local coffee varieties
only. In this Five Forces analysis of Starbucks, moderate variety strengthens competition by dividing the market into
segments based on business specialty or strategy. Moreover, competition is strengthened because of the low
switching costs between coffeehouses. In the Five Forces analysis model, low switching costs reduce barriers when
customers switch from Starbucks to competitors. Based on this component of the Five Forces analysis, competition
is among the coffee company’s top-priority challenges. Starbucks’ generic competitive strategy and intensive
growth strategies reflect strategic responses to such competitive challenges.

Bargaining Power of Customers or Buyers (Strong Force)

Starbucks experiences the strong force or bargaining power of buyers or customers. In Porter’s Five Forces analysis
model, this power is based on the influence of individual customers and their groups on the coffeehouse business
environment. The following external factors contribute to the strong bargaining power of customers relative to
Starbucks:

 Low switching costs between coffee shops (strong force)

 High availability of substitute foods and beverages (strong force)
 Small size of individual buyers (weak force)
The bargaining power of consumers or buyers is among the most significant forces affecting the coffeehouse
industry determined in this Five Forces analysis. With low switching costs, customers can easily transfer from
Starbucks to other brands. In addition, the high availability of substitutes means that customers can easily stay away
from the company’s products and opt for substitutes, like instant beverages from vending machines and home-
brewed coffee from local roasteries. These strong external factors overshadow the fact that individual purchases are
small compared to Starbucks’ total revenues. In the Five Forces analysis context, small individual purchases mean
that individual consumers have weak or insignificant influence on the business. However, low switching costs and
high substitute availability lead to the overall strong force of the bargaining power of customers against Starbucks.
Such a strong force in this component of the Five Forces analysis shows that the bargaining power of customers is a
top-priority strategic issue. Starbucks’ marketing mix or 4P can support brand strengthening to partially address the
bargaining power of consumers.

Bargaining Power of Starbucks’ Suppliers (Moderate Force)

Starbucks Coffee Company faces the moderate force or bargaining power of suppliers. Porter’s Five Forces analysis
model considers this power as the influence that suppliers have on the coffeehouse chain business and its industry
environment. The following external factors contribute to suppliers’ moderate bargaining power over Starbucks
Corporation:

 Moderate size of individual suppliers (moderate force)

 Limited variety of suppliers (moderate force)
 Supply shortages (strong force)
The moderate size of individual suppliers is an external factor that imposes a moderate force on Starbucks. In the
Five Forces analysis framework, larger suppliers have stronger bargaining power over the coffee business. On the
other hand, the limited variety of suppliers provides them with only moderate bargaining power relative to
Starbucks. For example, different suppliers may have similar supplies if they source their coffee beans from the
same region or country. In the Five Forces analysis model, this condition enables Starbucks to shift from one
supplier to another with moderate ease because of these suppliers’ similarities.

The bargaining power of coffee suppliers is partially strengthened because of supply shortages. Such shortages are
linked to droughts that damage crops, among the other ecological concerns presented in the PESTLE/PESTEL
analysis of Starbucks Coffee Company. Shortages enable suppliers to impose their demands, such as by increasing
the prices of coffee beans, thereby strengthening their bargaining power in the context of the Five Forces analysis.
Overall, the external factors enumerated in this section create the moderate force of suppliers in the coffeehouse
chain’s business environment.

Threat of Substitutes or Substitution (Strong Force)

The strong force or threat of substitution affects Starbucks Corporation. In the Five Forces analysis model, this
threat pertains to the impact of substitute goods or services on the coffee business and its external environment. The
following external factors contribute to the strong threat of substitution against Starbucks:

 High availability of substitute foods and beverages (strong force)

 Low switching costs between coffeehouses and substitutes (strong force)
 High affordability of substitute products (strong force)
This component of the Five Forces analysis indicates that substitutes have strong potential to negatively impact the
coffeehouse chain business. The high availability of substitutes makes it easy for consumers to buy these substitutes
instead of Starbucks’ products. There are many substitutes, such as ready-to-drink beverages, instant beverage
powders and purees, and foods available from various outlets. These outlets include fine-dining restaurants, vending
machines, supermarkets and grocery stores, and small convenience stores. The Five Forces analysis framework
considers this high availability as an external factor that strengthens substitutes against Starbucks’ products. In
addition, the low switching costs further strengthen the threat of substitutes to coffeehouse products. This external
factor is viewed in the Five Forces analysis as an enabler of consumers in switching from Starbucks to substitutes.
Moreover, many of these substitutes are more affordable than the company’s foods and beverages, thereby
strengthening the threat of substitution. Starbucks’ organizational culture (business culture) can help address the
threat of substitutes by providing warm and high-quality service that reinforces customer loyalty. Also, Starbucks’
corporate social responsibility strategy and stakeholder management initiatives can help retain customers based on
emphasis on sustainable business practices.

Threat of New Entry/New Entrants against Starbucks (Moderate Force)

The moderate force or threat of new entry imposes challenges to Starbucks Corporation. In Porter’s Five Forces
analysis model, this threat refers to the effect of new players or new entrants in the coffeehouse industry. In this
business case, the following external factors contribute to new entrants’ moderate threat to Starbucks:

 Moderate cost of doing business (moderate force)

 Moderate supply chain costs (moderate force)
 High cost of brand development (weak force)
The moderate cost of doing business refers to the cost of establishing and maintaining operations in the coffeehouse
industry. For example, the cost of operating a small coffeehouse is lower compared to that of a coffeehouse chain.
Also, smaller cafés have lower supply needs and corresponding supply chain costs. Despite their relatively small
sizes, many new entrants can reduce Starbucks’ market share and revenues. Thus, in this Five Forces analysis, this
external factor leads to the moderate threat of new entrants in the coffeehouse industry.

The high cost of brand development is viewed in the Five Forces analysis framework as an external factor that
reduces the threat of substitution against Starbucks Corporation. Small local coffeehouses typically do not have the
resources to develop their brands to directly compete with the Starbucks brand. Also, brand development takes years
to reach the level and strength of the Starbucks brand. The external factors enumerated in this part of the Five Forces
analysis establish the threat of substitutes as a moderate force and, thus, a significant but limited issue in the
multinational coffeehouse chain’s strategic management decisions.

2.3.2 Competitor 1: Highlands

Direct Competitive Products
Highlands Coffee is a leading Vietnamese coffee chain with over 500 stores nationwide. They are known for their
high-quality coffee beans, traditional Vietnamese coffee brewing methods, and extensive store network. Their
signature Phin Sữa Đá, a blend of freshly brewed coffee and condensed milk, is a popular choice among Vietnamese
consumers.
Marketing Mix

 Product:
o Offers a more limited selection of coffee drinks, food items, and merchandise.
o Products are known for being more affordable.
o Products are more locally sourced and seasonal.
 Price:
o Prices are generally lower than Starbucks.
o Prices may vary by location.
o Offers a more limited selection of pricing options.
 Place:
o Has a smaller number of locations than Starbucks.
o Stores are typically located in more local neighborhoods.
o Stores are designed to be more relaxed and cozy.
 Promotion:
o Uses a more limited range of marketing channels, primarily focusing on local advertising and
community events.
o Has a stronger focus on word-of-mouth marketing.
o Uses promotions and discounts to attract new customers.

Strong and Weak Points

Strengths:

 Strong Vietnamese coffee heritage: Highlands Coffee is a Vietnamese coffee chain with a strong heritage.
This has helped the company to attract customers who are looking for authentic Vietnamese coffee.
  Local presence: Highlands Coffee has a strong local presence in Vietnam, with over 500 stores nationwide.
This gives the company a strong competitive advantage in terms of market share and customer loyalty.
 Affordable prices: Highlands Coffee's prices are generally lower than those of Starbucks. This makes the
company more appealing to price-sensitive customers.
 Wide variety of beverages: Highlands Coffee offers a wide variety of beverages, including coffee, tea,
smoothies, and frappes. This gives customers more choices and can help to attract a wider range of
customers.
 Extensive food offerings: Highlands Coffee offers an extensive menu of food items, including pastries,
sandwiches, and salads. This makes it a more attractive option for customers who are looking for a meal.

Weaknesses:

 Limited global reach: Highlands Coffee is primarily a Vietnamese coffee chain with limited presence
outside of Vietnam. This makes it difficult for the company to compete with Starbucks in terms of global
market share.
 Lower brand recognition: Highlands Coffee's brand recognition is not as strong as Starbucks' brand
recognition. This can make it difficult for the company to attract new customers, especially in international
markets.
 Potential for product overlap: Highlands Coffee's product offerings are similar to those of Starbucks. This
could make it difficult for the company to differentiate itself from Starbucks and attract customers.

2.3.2 Competitor 2: Phuc Long

Direct Competitive Products

Phuc Long is a renowned Vietnamese coffee and tea chain with over 1,000 stores nationwide. They are known for
their affordable prices, convenient locations, and focus on Vietnamese-style coffee and tea beverages. Their
signature Phúc Long Milk Tea is a popular choice among Vietnamese consumers.
Marketing Mix
 Product:
 Offers a more limited selection of coffee drinks, food items, and merchandise, with a focus on Vietnamese
coffee specialties.
 Products are known for being more affordable and using local ingredients.
 Products are inspired by Vietnamese traditions and flavors.

 Price:
 Prices are generally lower than Starbucks.
 Prices may vary by location, particularly in international markets.
 Offers a more limited selection of pricing options.

 Place:
 Has a growing number of locations, primarily in Vietnam but expanding internationally.
 Stores are typically located in both urban and suburban areas, often catering to local communities.
 Stores are designed to reflect the Vietnamese coffee culture and offer a more personalized experience.

 Promotion:
 Utilizes a combination of traditional and digital marketing channels, focusing on local advertising, social
media engagement, and community events.
 Emphasizes authenticity, Vietnamese heritage, and cultural connection in its marketing messaging.
  Employs a more localized approach to marketing, tailoring campaigns to specific regions and customer
preferences.

Strong and Weak Points vs Starbucks

 Phuc Long
 Strengths:
 More affordable prices
 Perceived as a more authentic Vietnamese coffee experience
 Strong focus on local ingredients and flavors
 Growing international presence
 Weaknesses:
 Smaller and less loyal customer base, particularly outside of Vietnam
 Fewer locations globally compared to Starbucks
 Limited marketing reach compared to Starbucks' extensive global campaigns
 Starbucks
 Strengths:
 Strong brand reputation established over decades
 Large and loyal customer base worldwide
 Wide variety of products catering to diverse preferences
 Extensive global presence with a consistent brand experience
 Strong marketing and advertising efforts driving brand awareness
 Weaknesses:
 Higher prices, potentially limiting accessibility for some consumers
 Perceived as less personalized and more corporate compared to Phuc Long's local touch
 Can be crowded and less intimate due to high popularity

Phuc Long has emerged as a formidable competitor to Starbucks in the Vietnamese coffee market and is expanding
its presence internationally. While Starbucks holds a dominant position globally, Phuc Long's strengths in
authenticity, local focus, and affordability make it a compelling choice for many coffee enthusiasts. The competitive
landscape continues to evolve, and both companies are striving to attract and retain customers through innovative
products, personalized experiences, and effective marketing strategies.

2.4 Macro-environment analysis

2.4.1 Demographic environment
Research indicates that businesses, the wealthy or those with a solid average income or above, and members of the
upper intellectual class make up Starbucks' target consumer base. These individuals are generally between the ages
of 20 and 44.
Vietnam is a nation with 97 million people (as of 2020 estimates), with an average age of 32.5 years, a high
percentage of the population—up to 34%—living in metropolitan areas, and a robust economy. The economy is
becoming more robust every day. Starbucks has found that a growing number of young individuals with steady or
even high earnings are prepared to spend between $100 and $500k on coffee each day, making them a valuable
consumer base.
Additionally, since the majority of Starbucks' locations are located in major cities and bustling, central places, the
fact that many people live in metropolitan areas is advantageous for the company's target market.

2.4.2 Economic environment

In 2019, in the context of a decline in global aggregate demand
World economic and investment activities and trade declined, Vietnam's import and export of goods still maintained
a positive growth rate:
- GDP in 2019 increased by over 7%: Gross domestic product (GDP) achieved impressive results, with an increase
rate of 7.02%, exceeding the target set by the National Assembly of 6.6-6.8%.
- Mobilization and lending interest rates are basically stable; Stock
The market grew positively, making an important contribution to mobilizing capital for economic development.
-Total import-export turnover of goods exceeds the 500 billion USD mark
-The consumer price index (CPI) in December 2019 increased by 1.4% compared to the previous month, the highest
increase in the past 9 years. Among them, the food and catering services group increased the highest by 3.42%.
- In 2019, the scale of the economy increased 1.3 times compared to 2016, while this year's growth rate reached over
7% for the second time in a row, at 7.02%, and the scale of the economy increased. to 262 billion VND. U.S.
DOLLAR. This growth rate also far exceeds the expectations of reports from international organizations such as
ADB calculating 6.9%, World Bank 6.8%...
- In the first 9 months of 2019, the whole country exported 1.27 million tons of coffee, earning about 2.17 billion
USD, average price of 1,718 USD/ton, down 12.6% in volume, down 21% in value. quota and decreased 9.6% in
price compared to the same period in 2018.

2.4.3 Technological environment

Technology has advanced significantly in all areas throughout the fourth technological era.
Starbucks has a lot going for it, especially with regard to the extensive social media coverage. The company has a
fan page with 33 million likes, which is a figure that would surprise any brand manager. Brands owned by
multinational manufacturers of consumer products.
This feature makes it easier for Starbucks to reach a large audience with their marketing initiatives, which attracts
potential customers.

2.4.4 Political-Legal environment

Vietnam is a potential market with a large population and high per capita income. The Vietnamese government is
also promoting economic reform, creating a favorable investment environment. This creates conditions for
Starbucks Coffee to expand its market and open more stores in Vietnam. Vietnam's legal system is promulgated and
enforced in a transparent and clear manner, helping businesses, including Starbucks Coffee, minimize risks in the
business process.
Besides, the Vietnamese coffee market is becoming increasingly competitive, with the participation of many
businesses, both domestic and foreign. Vietnam's political and legal environment is creating positive impacts on
Starbucks Coffee's business operations. However, Starbucks Coffee also needs to be clearly aware of the challenges
and take appropriate measures to overcome these challenges, thereby developing sustainably in the Vietnamese
market.

2.4.5 Socio-cultural environment

Of the approximately 90 million people living in Vietnam, half are under the age of thirty-five.
The World Bank (WB) reports that Vietnam's GDP per capita increased by more than ten times between 1986 and
2009, when the country attained average income. Vietnam's average annual income was 1,270 USD in 2011.
IAM research on coffee consumption trends indicates that 65% of Vietnamese coffee drinkers drink coffee seven
times a week, with a tendency toward male consumption (59%). When it comes to instant coffee, 21% of consumers
use it three to four times a week, with a slight preference for female customers (52%). At 49%/50%, the percentage of
people who use coffee at home and outside of their homes is equal. The hours of 7-8 am are when coffee is most
commonly consumed.
Coffee-drinking behaviors: Taste, store design, and coffee brand are the three primary determinants of whether or
not a customer chooses to purchase coffee from a business. In particular, most customers like coffee with a bitter
taste, as confirmed by 44.7% of those who drink coffee in a store.

2.4.6 Natural environment (if yes)

Vietnam has a very poor road traffic system and infrastructure. Locating a suitable location for a business will be
challenging.
Even though there is a steady and plentiful source of fuel for coffee, Vietnam's weather is very harsh; natural
disasters and erratic weather patterns can have an impact on locations that grow raw coffee.

=> Starbucks target customers:

- Adults: from 25 to 40 years old
● Is Starbucks' main target market (accounting for 49% of Starbucks' total businesses).
● They are often people with relatively high incomes, professional careers, and a focus on social welfare.
● What attracts them is the spatial design, consistent modern design in advertising as well as decoration.
● This target audience is growing at 3% per year.
- Young people: 18 to 24 years old
● Accounts for 40% of Starbucks' total businesses.
● What attracts them: Starbucks is positioned as a place where college students can study, chat with friends,
meet people, check in,... Besides, Starbucks takes advantage of social networks to actively build a Youthful and
dynamic image, directly impacting this target group.
● The younger audience is growing at 4.6 percent per year
- Children and adolescents: from 13 to 17 years old.
● Represents 2% of Starbucks' total business, but most children's items are purchased by parents.
● Children traveling with their parents. Teens meanwhile use Starbucks as a place to hang out with friends or
study.
● What attracts them: drinks with milk or coffee with sugar, caffeine, whipped cream topped coffee. Besides,
Starbucks makes its brand child-friendly, such as special sizes for children.
● Although the number is not large, this can increase potential customers in the future, meaning Starbucks has
made children and teenagers recognize the brand and made the brand more friendly to this audience. can come
back in the future (when old enough to use Starbucks signature drinks)

2.5 SWOT analysis

(formulate a SWOT table, show strong points, weak points, opportunities and threats)

 Strengths:
 Famous brand: The first strength of Starbucks is its brand strength. Starbucks has a highly
appreciated brand value with a coffee taste that is loved by many people. In 2019, Starbucks had a
brand value of $11.7 billion according to Interbrand rankings. The number of Starbucks stores
increased from 1,886 to 31,256 from 1998 to 2019.
 Stable financial investment source: Starbucks is a company that has a very strong financial base.
Starbucks made approximately $3.6 billion in profits and approximately $26.5 billion in revenue
in 2020. This is undoubtedly a record-breaking business outcome that emphasizes Starbucks'
operational effectiveness even more.

 Weaknesses:
 Price is not competitive: Starbucks beverages are frequently more expensive than those of its
rivals. When there were fewer coffee shops, Starbucks products were seen as "luxury" brands, and
the company invested much in raising the caliber of its coffee to justify the price. But as more
coffee shops open up these days, one of Starbucks' weaknesses is the cost of their premium goods.
 The product lacks uniqueness: Despite having a wide variety of drinks on offer and being
accessible to the public for a considerable amount of time, Starbucks products are nevertheless
seen as being unoriginal. Starbucks doesn't have any distinctive goods that would set the company
apart from its competitors.

 Opportunities:
 Popularity of social networks: The majority of corporate clients currently use social media and
Internet connectivity on a daily basis. As per the 2020 data from Statista.com, individuals utilize
social media platforms for 135 minutes daily on average. Unquestionably popular, social media
platforms are a great way for businesses to access a wide audience, run targeted marketing efforts
to draw in customers, and boost conversion rates. transform.
In an effort to reach a wide range of potential customers, Starbucks has increased its social media
presence and started to invest in paid online advertising in recent years. Social media's widespread
use will present Starbucks with chances to draw clients and raise awareness of its brand.
  Great demand in developing markets: In developing countries, building a foundation for a brand
can take a lot of time, however, the need for local customers to interact is high, so once a solid
foundation is established, it is important to expand more doors. Starbucks products are just an
overnight thing.

 Threats:
 High degree of competition: A major challenge to Starbucks' long-term viability is the willingness
of many of its rivals to lower their pricing in order to draw in customers. Starbucks will find it
difficult to persuade consumers to pick its goods over those of rival companies given their high
prices.
 Economic recession: Starbucks' profits and revenue have historically fallen during recessions; in
the fiscal 2020 second quarter, the company's revenue dropped 5%, and in the third quarter, it
experienced a dip. 38%, in part because of the Covid-19 pandemic's effects.

2.6 The marketing problems ( thư)

(determine the marketing problems facing the company in the current time and near future)
 Cultural adaptation:
 Challenge: Ensure marketing strategy is consistent with Vietnamese cultural tastes, traditions and lifestyle.
 Potential problem: If Starbucks does not adapt its services and messages to local culture, the company may
have difficulty reaching its target audience.
 Compete with local brands:
 Challenge: Faces competition from established local coffee chains that may have strong ties to the local
community.
 Potential problem: Starbucks may need to differentiate and demonstrate a unique value proposition to stand
out from local competitors.
 Price strategy:
 Task: Determine the optimal pricing strategy to balance Starbucks' premium image with the price
sensitivity of the Vietnamese market.
 Potential problem: If prices are perceived as too high without enough perceived value, Starbucks may have
difficulty attracting and retaining customers.
 Digital and mobile adoption:
 Challenge: Adapting to the digital preferences of Vietnamese consumers, who increasingly prefer to order
and pay via mobile devices.
 Potential problem: If Starbucks falls behind in providing practical digital solutions, it could lose customers
to competitors that offer more complex digital solutions.
 Local marketing communications:
 Challenge: Create a marketing message that effectively conveys the Starbucks brand while resonating with
local consumers.
 Potential problem: Ineffective communication strategies can lead to a lack of brand engagement and
understanding among Vietnamese consumers.
 Sustainability expectations:
 Challenge: Meeting growing expectations for sustainability and ethical sourcing in the Vietnamese market.
 Potential problems: Failure to communicate or implement strong sustainable practices can create negative
perceptions among environmentally conscious consumers.
 Compliance:
 Challenge: Comply with local regulations and standards in the food and beverage industry.
 Potential issues: Non-compliance could lead to legal challenges, reputational damage or business
disruption.
 Adapt to local tastes:
 Challenge: Ensuring Starbucks' menu meets the unique tastes and preferences of Vietnamese consumers.
  Potential problem: If the menu doesn't reflect local tastes, Starbucks may have difficulty gaining
widespread acceptance.

2.7 Starbucks' target customers:

Starbucks segments its target customers demographically, psychographically, and geographically. Although it has
identified a number of potential segments in Vietnam as above, Starbucks still focuses on a focused targeting
approach. That means the company only emphasizes a small niche that can afford quality luxury coffee products,
premium prices and eye-catching packaging.
Based on the above criteria, Starbucks' target customer profile will be Vietnamese people with characteristics such
as:
• Age: 25-40.
• Income: Have high income.
• Geography: Mainly living and working in Hanoi and Ho Chi Minh City.
• Psychology: Accustomed to a luxurious, wealthy lifestyle, tending to live in a Western style. Show interest in
appearance and issues of health safety, environment, society,...

RECOMMENDATIONS FOR IMPROVING STARBUCKS VIETNAM’S MARKETING STRATEGIES

AND PROGRAMS IN THE NEXT PERIOD
3.1 Improving market segmentation and target market strategies
 Continue market research to better understand Vietnamese consumer preferences and behaviors. This will
help Starbucks identify specific customer segments and tailor its marketing efforts accordingly.
 Focus on younger generations, such as millennials and Gen Z, who are more likely to embrace Western-
style coffee culture and have more disposable income.
 Consider targeting specific demographics, such as professionals, students, and travelers, to develop targeted
marketing campaigns.
3.2 Improving the market offer strategy (physical products, services, prices)
 Introducing more local menu items to satisfy Vietnamese tastes. This can include incorporating traditional
Vietnamese ingredients or flavors into drinks and cakes.
 Expand your non-coffee beverage portfolio to attract a broader customer base. This can include tea,
smoothies, and other refreshing drinks.
 Consider offering more affordable options to attract budget-conscious consumers. This can include smaller
drink sizes, combo deals, and loyalty programs.
3.3 Improving the positioning and marketing communications strategy in
 Emphasizes the high quality and craftsmanship of Starbucks coffee. Emphasizing the brand's global
expertise and commitment to using high-quality Arabica beans.
 Positioning Starbucks as a lifestyle brand represents a modern and ambitious lifestyle. Create marketing
campaigns that showcase your brand's connection to creativity, innovation, and community.
 Leverage social media platforms to interact with Vietnamese consumers. Use local influencers and create
content that is relevant to your target audience.
3.4 Improving the distribution and sales strategy
 Expand your store presence in high-traffic areas, such as city centers, shopping malls, and transportation
hubs. This will increase visibility and accessibility to potential customers.
 Partner with local businesses, such as cafes and restaurants, to expand distribution channels. This will allow
Starbucks to reach a wider audience without the need for additional investments in physical stores.
 Explore e-commerce opportunities to reach consumers who prefer to shop online. Implement seamless
ordering, delivery, and payment systems to enhance the online experience.
3.5 Other recommendations (if available)
 Integrate sustainable initiatives to attract environmentally conscious consumers. Highlight Starbucks'
commitment to ethical sourcing, waste reduction, and environmentally friendly practices.
 Participate in local community initiatives to build brand loyalty and positive connections. Support local
charities, cultural events, and educational programs.
 Nurture a strong customer service culture to enhance the overall customer experience. Train employees on
knowledge, friendliness, and attention to customer needs.