TABLE OF CONTENTS
PART I: OVERVIEW OF HIGHLANDS COFFEE AND TRUNG NGUYEN
LEGEND.............................................................................................................................3
1. General introduction about Highlands Coffee..............................................................3
1.1. History of formation...............................................................................................3
1.2. Highlands Coffee logo:...........................................................................................3
1.3. Line of business:.....................................................................................................4
1.4. Vision, mission, core values...................................................................................5
2. General introduction about Trung Nguyen Legend......................................................5
2.1. History of formation...............................................................................................5
2.2. Logo of Trung Nguyen Legend..............................................................................6
2.3. Line of business......................................................................................................6
2.4. Vision, mission, core values...................................................................................6
PART II. WHY DOES HIGHLANDS COFFEE SURPASS TRUNG NGUYEN
LEGEND?...........................................................................................................................7
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TABLE OF IMAGES
Figure 1. Highlands Coffee’s old logo.................................................................................5
Figure 2. Highlands Coffee's new logo................................................................................5
Figure 3. Trung Nguyen Legend's logo................................................................................7
Figure 4. Results of a survey of favorite coffee brands provided by Q&Me.......................8
Figure 5. Menu of Highlands Coffee....................................................................................9
Figure 6. Menu of Trung Nguyen Legend..........................................................................10
Figure 7. Menu of Trung Nguyen Legend..........................................................................10
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PART I: OVERVIEW OF HIGHLANDS COFFEE AND TRUNG NGUYEN
LEGEND
1. General introduction about Highlands Coffee
1.1. History of formation
David Thai, a young businessman living abroad, returned to Vietnam in 1995, motivated
by his love for his country and a desire to contribute to it. Because his parents are both
Vietnamese, he grew up hearing many interesting stories and proud traditional ideals about the
country in the shape of the letter S. Even though he acquired Western education, his Vietnamese
blood still flows and draws him back to study about his native culture.
Highlands Coffee was founded in 1999 out of a love of Vietnam and a passion for coffee,
with the goal of preserving Vietnam's long-standing coffee legacy and spreading the spirit of
pride and harmony between tradition and contemporary.
Starting with packaged coffee goods in Hanoi in 2000, the company has quickly evolved
and expanded into a well-known coffee shop brand, expanding its operations both domestically
and internationally.
The Vietnam Thai Corporation (Viet Thai International, which owns the Highlands) was
created in 2002. The company first launched a coffee shop in Ho Chi Minh City, near the Church
of Our Lady, followed by another in Hanoi.
As of 2009, the company has opened 80 sales stations in six provinces across Vietnam
(Hanoi, Ho Chi Minh City, Hai Phòng, Da Nang, Vung Tau, and Dong Nai).
In 2011, Viet Thai International sold 49% of its Vietnamese business and 60% of its Hong
Kong business to the Philippine Joliibee Group for $25 million.
In 2015, Highlands expanded to 75 stores; as of the end of March 2017, the company has
a total of 180 stores in 14 provinces of Vietnam. As of February 2019, the company has 211
stores.
So far, the chain has 700 stores in Vietnam and 50 in the Philippines as of September
2023. It can be said that through the franchise, Highlands Coffee can open 100 stores in the first
nine months of 2023.
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1.2. Highlands Coffee logo:
The Highlands logo is based on the symbol of the harmony of mountains, land, and the
flow of water in a sunny and windy Caucasian land. The brown in the coffee logo design is not
only the color of the soil but also the color of the delicious coffee beans. Red symbolizes passion
and stimulates taste; white brings purity and subtlety. The brand name is quite prominent in the
circular symbol that represents the perfection of the taste of coffee.
Figure 1. Highlands Coffee’s old logo
After 23 years of formation and development, on November 23, 2022, Highlands Cofffe
announced a logo change. If the old version of the logo was a combination of three colors: red,
coffee brown, and ground brown, then it's now converted to a single color layer: red on a
transparent background. Red is a symbol of patriotism, passion, appreciation of coffee heritage,
and dedication to customer service. The transparent background press makes the logo easy to
customize with background colors that are consistent with the message to the brand community.
Figure 2. Highlands Coffee's new logo
1.3. Line of business:
Highlands Coffee does business in two business segments:
- At the Highlands Coffee chain, the business deals in beverages and fast foods.
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- According to consumer channels such as supermarkets, traditional markets, and groceries,
Highlands Coffee sells black coffee or milk in the form of powder or water packaged into
cans or boxes for easy movement and storage.
1.4. Vision, mission, core values
- Vision: Become the most popular coffee and tea brand in Vietnam and be proud to share
it with the world.
- Mission: The mission of Highlands Coffee is to elevate the prestige of Vietnamese coffee
taste and modern coffee style at a reasonable price, ready to serve anytime, anywhere, to
every customer.
- Core Values: Customer Care; Teamwork and Collaboration; Respect and Integrity; Pride
and Sharing with the Community; Passion
2. General introduction about Trung Nguyen Legend
2.1. History of formation
Dang Le Nguyen Vu is the founder, chairman, and CEO of the Vietnam Central Coffee
Corporation; he is honored by Forbes Asia as the "King of Vietnam Coffee.".
In 1990, he entered the University of Medicine, and during this time, he started his
research into coffee.
In 1996, he and three other friends founded the "Trung Nguyen Coffee Brand" with the
job of roasting, making coffee, and handing it over to other shops.
Two years later, he and his friends started the first Trung Nguyen coffee shop in Ho Chi
Minh City.
In 2000, Trung Nguyen coffee entered the capital, Hanoi, and launched a franchise model.
Two years in a row, Trung Nguyen Corporation succeeded in franchising in Japan and Singapore.
In 2008, Mrs. Le Hoang Diep Thao who is Dang Le Nguyen Vu’s wife, opened an office
in Singapore. By 2010, Trung Nguyen had exported to more than 60 countries worldwide and
conquered difficult markets such as the US, Japan, and China.
In 2016, Trung Nguyen became the largest coffee chain in Southeast Asia. So far
(4/2021), there are 431 coffee shops in Central Vietnam.
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2.2. Logo of Trung Nguyen Legend
Figure 3. Trung Nguyen Legend's logo
Explaining the most prominent red arrow in the logo of this cafe, Mr. Dang Le Nguyen
Vu said: The image of the arrow is the style of the house of Central Highland—the inspiration for
the coffee beans. The three white lines in the arrow are the style of the stairs and the way to the
house. The upward arrow symbolizes the desire to conquer or to ascend.
2.3. Line of business
Trung Nguyen Group is an enterprise operating in the fields of coffee production,
processing and trading, franchise, distribution services, modern retail and tourism.
2.4. Vision, mission, core values
- Vision: A great organization in the service of the human community.
- Mission: To build a community of humanity united in the values of an awake lifestyle,
bringing true success and happiness.
- Core value: Absolute faith. Serve the community. Humanity responded. Solid
finances.
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PART II. WHY DOES HIGHLANDS COFFEE SURPASS TRUNG NGUYEN
LEGEND?
To help find out who's winning the Vietnamese coffee chain competition, in March 2023,
Q&Me, a market research company, conducted a survey of 376 consumers in Hanoi and Ho Chi
Minh City, aged between 20 and 49, to find the most popular brands. The results of the survey
showed that the top five favored tea and coffee brands are Highlands Coffee, Phuc Long, The
Coffee House, Starbucks, and Trung Nguyen Legend, respectively. Specifically, Highlands
Coffee goes a long way from the rest of the names, with 77% of respondents answering a favorite
and 41% a favorite. Meanwhile, Trung Nguyen Legend, which was the fifth-ranked brand, was to
have 35% of respondents as favorites and 6% as favorites.
Figure 4. Results of a survey of favorite coffee brands provided by Q&Me
With strong financial potential, Highlands Coffee's chain of stores is always located in the
right location. Those are the 3rd and 4th drops in the big city, where there are crowded
inhabitants, many shopping centers, schools, offices, and a convenient, accessible transportation
system. In addition, with the success of the franchise strategy, the number of stores of the brand
is not only limited to Hanoi and Ho Chi Minh City but also covers 24 provinces in Vietnam. This
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is a major advantage of making Highlands easy to reach and facilitates the implementation of
promotional programs across the country. With constant growth, Highlands Coffee has 700 stores
in Vietnam. In Da Nang, there are 39 shops located in the city's third fall, while Trung Nguyen
Legend has only four shops. This helps Highlands Coffee access as many customer files as
possible.
Besides, price is one of the important factors influencing consumer purchasing decisions.
Prices have an impact on market competitiveness and earnings. Highlands’s current price ranges
from 30,000 VND to 70,000 VND per product. This is considered to be a wide-spectrum price,
suitable for the majority of Vietnamese. The price is not low, but it's not too high. It's still
acceptable for a predominantly middle-class audience with a stable income. Highlands has also
chosen a market-based pricing strategy. Most of the product lines are priced for the middle class.
However, traditional coffee lines will be sold at a much lower price, starting at only 35,000 VND,
allowing all audiences to access and experience the brand’s products.
Figure 5. Menu of Highlands Coffee
If Highlands Coffee focuses on clients in all lower-middle-upper classes, Trung Nguyen
Legend is aimed at customers with high and very high incomes. Business products are mainly
coffee, as well as purified beverages and desserts, ranging from 39,000 VND to 200,000 VND
per product.
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Figure 6. Menu of Trung Nguyen Legend
Figure 7. Menu of Trung Nguyen Legend
With this price list, it's very easy for average-income customers to access and experience
the product. This is also the main reason why, although the store of Trung Nguyen Legend is
located in the center of the city, the majority of customers still choose Highlands Coffee because
of the average price, which corresponds to the income of the vast majority of Vietnamese people.
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From the above comparisons, Highlands Coffee has implemented a comprehensive
marketing strategy, including the development of diversified products suitable for all professions
and ages, pricing strategies suited to the majority of income in Vietnam, and distribution
strategies through the expansion of the number of stores spread across the country. Through these
strengths and strategies, Highlands Coffee has not only established its leading position in the
Vietnamese coffee market but has also succeeded in creating a brand that is popular and preferred
by consumers.
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