Microenvironment pay attention in a large and flexible delivery systems grab, bee, goviet, NOW

Born with the love for Viet Nam, Highlands coffee always expects to become the most favorable coffee brand in Vietnam and it tries to become Vietnam’s most favorite café of taste, afford

Microenvironment

1 The company

Trang The most powerful person of the company is General

Director, then Branch Director and other departments Branch Director is the person who will operate all business activities

of the company Consuming control department will be in charge of consumption activities and broadcasting the products to customers Human Resources department is responsible for recruiting, training necessary for the staff Department of Purchasing will buy the essential ingredients and evaluate the suppliers, control the orders and expense Accounting Department takes responsibility for supervising financial activities and collecting liabilities Under Branch director are branch manager, bartender, waitress and cashier Born with the love for Viet Nam, Highlands coffee always expects to become the most favorable coffee brand in Vietnam and it tries to become Vietnam’s most favorite café

of taste, affordable, modern Vietnamese coffee and tea lifestyle experiences to every customer everywhere, everyday

2 Suppliers

Ánh

http://tasacoffee.com/dien-tich-ca-phe-viet-nam-2018.html Premium green tea leaves from Vietnamese highlands -> Produce tea-powder

https://www.highlandscoffee.com.vn/vn/tan-huong-freeze-tra-xanh-tra-xanh-dam-da-thach-gion-kho-cuong-.htmlzzzz

+ Highlands cooperated with Adtima to run the campaign by giving customers E- Voucher, encouraging their

engagement, and try “ca phe phin sua da”

+ Adtima creates three Subtab with three titles: Participation, Regulations and Instructions => they are displayed right after clients click on Official Account of Highland Coffee

on Zalo => send the broadcast messeage => To participate, clients have to subcribe the brand’s account and share their locations => the lucky people will be selected randomly => get E-Voucher and bring it to the nearest store

https://adtima.vn/case-study/chien-luoc-dung-thu-cach-tang-nhan-dien-san-pham-moi-hieu-qua-article73

Highlands Coffee pays attention in developing a large and flexible delivery systems such as GrapFood, Now.vn,… Using delivery services help attract a large number of customers who want to order food and drinks without going out Besides, there are many

marketing agencies who help execute promotional materials to branding and promote the relationship between products and customers In 2017, Highlands Coffee has launched a new product

“Highlands Phin Sữa Đá” and cooperated with Adtima to run the campaign “Chiến lược dùng thử khác biệt” by giving customer E-voucher through Zalo, encouraging customers to take part in and try “cà phê Phin Sữa Đá”

https://adtima.vn/case-study/chien-luoc-dung-thu-cach-tang-nhan-dien-san-pham-moi-hieu-qua-article73

decorations After 8 years Cong cafe has launched

50 store and expanded 1-2 store(s) per month

- Indirect competitors : beer, tea, fruit juice, carbonated water https://www.brandsvietnam.com/17153-Chuoi-ca-phe-Highlands-Coffee-dan-dau-thi-truong

Direct competitors of Highland Coffee is Starbucks, Trung Nguyen, The Coffee House which have the same or similar products with Highland Coffee Apart from direct

competitors, Highlands Coffee also has indirect competitors such as beer, fruit juice, nutritious drinks and carbonated water that have expanding and popular products with lower price and convenience compared with Highlands Coffee

5 Publics

Anh

- Media publics: magazine

- Citizen-action public: nhiều vloggers have good feedbacks for the brand

- Internal publics: One of the key things to contribute in success of Highland coffee is concerning about the employees aspects

+ Mental: create team building + Family: concern their children by organizing Children’s day for them and create chances for them to experience their parents’ work

+ Health: Sport competitions “ Highland coffee soccer cup 2018” , Periodic health examination

=> motivate employees to commit and delicate for the company https://careerbuilder.vn/vi/talentcommunity/highlands-coffee-dich-den-lam-viec-y-nghia-tu-hao-sinh-ra-tu-dat-viet.35A514D5.htmlhttps://www.brandsvietnam.com/congdong/topic/9344-Bang-xep-hang-Chien-dich-Tet-noi-bat-2018-Cac-thuong-hieu-gap-rut-toa-sang-sau-bao-U23

Media publics: It can be said that media publics are the main means

of communication affecting the brand most In 2018, an extracurricular activity which was particularly focused are

“FREEZE tron cau chuc” competition This campaign which advertised in many social media channels was in the top 10 outstanding campaign in social media having quick spread and appealing content (Brandsvietnam, 2018)

Citizen-action publics: From the Highland Coffee’s websites, the brand receives a lot of favored feedback from customers and has great reviews from many vloggers However, the recent event about the environment has impacted on the company Although the company convey the message “less plastic”, customers still receive

a plastic cup and plastic bag when purchasing

Internal publics: The employees - a part of the brand contributes to the success of Highland coffee All the staff are well-trained about the company culture and the attitudes and gestures toward

customers To recognize their dedicated contributions, many extracurricular activities such as team building activities, Highland coffee soccer cup 2018, The children’s day, etc… are created

(Careerbuilder, 2018) Health examinations are also periodically taken to ensure employees have good physical and mental health

- customer market: middle class, office staff, and active young generations because drinking coffee here with the prestigious coffee brand help them confirm their status in society

- Foreigner in VN Highland Coffee’s target customers are youngsters and

http://cafebiz.vn/15-nam-tang-tu-2-len-180-cua-hang-khong-phai-chien-luoc-binh-dan-hoa-day-moi-la-dieu-lam-nen-thanh-cong-cho-highlands-coffee-2017051311370726.chn

Target customers were used to be mostly people in middle and high class However, target customers currently are diversified: working people and foreigners in Vietnam or even youngsters Obviously, trends of young generations are going to well-decorated coffee shops to check in, read books, listen to music or chat with friends The reasons that working people search for the coffee shops are working or meeting partners Because the company can meet all their demands, young and working people will be their main target

A Macro - environment

Linh

- Age: CIA world factbook, age structure was calculated in

2017, 23,55% Vietnamese were aged less than 15 years old, 15-64: 70%, the rest is more than 65% => young population structure

=> target customer: focus on 15-64 year old person who is studying and working : account for 70% population

- Occupation: literacy rate up rate 94,52% => citizen more educated => future occupation ???

- is becoming more white-collar workforce => who not requiring drinking coffee, but also place for working and studying

According to CIA world factbook, age structure was calculated  

in 2017, 23,55% Vietnamese were aged less than 15 years old, 15-64: 70%, the rest is more than 65% Vietnam is representing a potential young population structure The young population is a potential for a huge consumer market which account for a large percentage On the other hand, literacy rate in Vietnam's population rising up by 94,5% (2017) This means that more and more educated employees is becoming white-collar workforce who not only requiring drinking coffee, but also need a place for working and studying Therefore, coffee market has received a tremendous motivation from demographic environment

https://www.indexmundi.com/vietnam/demographics_profile.html

Linh

- developing economy: economy have produced a growing middle class and rapidly rising in income

- GDP growth in 2018 is forcasted more than 7% ,

- BMI research in 2017 shown that Vietnam’s coffee consumption grew from 0.43 kg per person in 2005 to 1.38 kg in 2015 This is the highest growth rate of any global coffee exporter, and the figure is forecast to reach 2.6 kg by 2021

=> increasing in income boost purchasing power for coffee-related products

https://e.vnexpress.net/news/business/industries/which-are-vietnam-s-most-successful-coffee-chains-3835604.html

Vietnam is a developing country with the economy have produced a growing middle class and rapidly rising in income Many experts have forecast the Vietnamese economy to grow by more than 7% in 2019 This is a positive signal for goods consumption market Specifically, BMI research in 2017 shown that Vietnam’s coffee consumption grew from 0.43 kg per person

in 2005 to 1.38 kg in 2015 This is the highest growth rate of any global coffee exporter, and the figure is forecast to reach 2.6 kg

by 2021 That opens a lucrative opportunity for coffee suppliers http://vneconomy.vn/thu-nhap-binh-quan-dau-nguoi-nam-2018-dat-2587-usd-2018122715235412.htm

Tram

- Vietnamese weather condition (located in tropical belt => sunny and rainy annually Rainfall is evenly distributed among the months => the months that coffee grows

- Land: basalt red soil

https://voer.edu.vn/m/vi-tri-cua-nganh-ca-phe-va-vai-tro-cua-xuat-khau-ca-phe/8fcdbfa9

CN/Phat-trien-ca-phe-cua-Viet-Nam-trong-nhung-nam-gan-day-38666.html

http://www.vusta.vn/vi/news/Thong-tin-Su-kien-Thanh-tuu-KH-nguồn: Kiến thức mục 2, bài 37 trang 168 - 169 Địa lí 12 cơ bản Vietnam is located in the tropical belt, which has annually sunny and rainy with equatorial climate and is hot year round Besides, many regions in Viet Nam have not only a clearly different climate regime: the rainy and dry seasons but also large area of red basalt soil that is very porous, rich in nutrients These natural features make strongly favorable conditions for café growth and development

Trang

With the development of technology, there are numerous devices manufactured to cut down on manpowerrequirements One of them is guest – paging system Highlands coffee applied this kind of technology in serving the customers and they have improved operationalefficiency, increase productivity levels and optimizecustomers’ experience as well as cutting down on employee – related expense 4.0 Technology Revolution isincreasingly dominating human beings, they tend to store money in bank card or in electronic wallet Highlands coffee

is also associated with Vietcombank and takes advantage of POS system to facilitate the payment process with any sort

of physical bank card It also cooperates with Samsung pay

to execute cashless payment Two kinds technology canhelp Highlands coffee reduce payment time and intensifythe safety Highlands coffee uses all media such as online advertising and WIFI marketing (AMC) to market itsproducts

Tram https://www.highlandscoffee.com.vn/en/coffee.html

http://tuhaoviet.vn/ca-phe/van-hoa-ca-phe-nguoi-viet-p13.htmlhttp://mintowncoffee.net/nhung-bi-mat-phia-sau-ca-phe-phin-van-hoa-ca-phe-viet.html

“Phin” coffee is a feature of the Vietnamese coffee culture It followed the French introduced into Vietnam since the 1957s

Vietnamese people have their own style of ẹnjoying coffee They enjoy coffee as a cultural thing: sipping and thinking They often sit beside a cup of coffee, sip it with reading newspaper, listening

to music, chatting with peers All these things make a unique culture in Vietnamese life

Besides, it was recorded that 65% of consumers drink coffee seven times per week, with 57% are male users according to a study by IAM about the habit of using coffee in Vietnam

Therefore, coffee plays an indispensable part of the Vietnamese people’s daily lives

III Marketing strategy

1 Segmenting Consumer Markets - Tram

https://www.brandsvietnam.com/17153-Chuoi-ca-phe-Highlands-Coffee-dan-dau-thi-truong

https://text.xemtailieu.com/tai-lieu/marketing-dich-vu-cua-quan-cafe-highlands-coffee-973106.html

https://www.highlandscoffee.com.vn/vn/he-thong-cua-hang.htmlhttps://www.facebook.com/181603421920510/posts/2579740405440121/

- Almost cities and provinces in Viet Nam: HCM, HN, Hải Phòng, Đà Nẵng, Cần Thơ, Bình Dương,

- Genders

- Income

- 15 - 22 22 - 65

- Male & Female

- Medium to high Medium to allowance high wages

- Occupation - Students, Having part-time job

White-collar workers, Middle to highly paid jobs Psychographic - Social class

- Life style

- Personality

- Middle and upper class

- 15-22: trendier, enthusiast 22-65: strivers, achievers

- 15-22: active, virtual life with modern and beautiful spaces, show-off, curious, socialized; extrovert, studious, tend to self-define, updated, busy with study, extracurricular activities and work

22-35: ambitious, outgoing, hard-working Behavioral - Occasions

- Benefits

- Loyalty status

- Attitude toward product

Regular occasion

- 15-22: hanging out with friends, studying

- 22-35: hanging out with friends, working, relaxing

- Taste delicious foods and drinks

- A space with wonderful services

- 90…% first user want to return Highlands coffee

https://caphenguyenchat.vn/du-bao-su-tro-lai-soi-dong-cua-thi-truong-ca-phe.html

https://danso.org/viet-nam/

https://maybanhang.net/2016/12/phan-tich-thi-truong-ca-phe-viet-nam-nam-2016/

Segment structural attractiveness

There are many strong and aggressive competitors in the market such as Trung Nguyen, Starbucks, The Coffee House,etc Many magazines say that Starbucks, the famous and foreign brand in Vietnam, is the main market competitor Moreover, the existence

of many potential substitute products like beer, tea, fruit juice, carbonated water, which limits the profit earned in a segment

However, Highland Coffee is still the most famous coffee brand in Vietnam in 2019 ( Brandsvietnam, 2019)

hieu-cafe-noi-tieng-tai-Viet-Nam-%7C-FnB-Viet-Nam

https://www.brandsvietnam.com/congdong/topic/16307-9-thuong-Company objective

and resources

Due to the abundant supply of coffee, Highland Coffee’s objective

is bringing the best products to the customers, spreading great Vietnamese values widely and becoming the champion of Vietnamese coffee Currently, Highland Coffee becomes the company having the largest chain of coffee shops in Vietnam

2.2 Selecting target market segment

According to Kotler, a firm deciding to target several market segments and design separate offer for each are using differentiated marketing Because Highland Coffee not offers many kinds of products to specific types of customers such as Coffee products for older man and freeze or tea for teenagers Therefore, Highland Coffee is considered using differentiated market strategy

3 Positioning - Anh

3.1 Profile of target market

Enjoying traditional cuisine (coffee and Banh Mi) has been existing for a long time that gradually becomes ingrained Vietnamese habit Furthermore, many youngsters are curious about their

traditional things and the ways they enjoy such these things are different from in the past which is enjoying food and drinks on the street Therefore, Highland Coffee has created the demanded service offering customers not only foods and drinks but also the space and atmosphere in the coffee shops Its target market is youngsters and middle - aged people who love traditional habits

3.2 Competitive advantages

Highland Coffee differentiate itself from other competitors by three competitive advantages:

- Product differentiation: Highland Coffee highly focuses on local Vietnamese foods and drinks and its menu are regularly changed to adapt the customer tatases The company promises to bring Vietnamese values in every product to customers Every cup of coffee is completely made from high quality of Vietnamese coffee seeds Moreover, the demand for eating is rising, so it also offers buyers Banh Mi - famous traditional food along with drinks

- Service differentiation: Brands vietnam shows that Highland Coffee has the highest number of coffee shops (318 stores nationwide in 28/9/2019) which are located mostly in accessible places Moreover, the open time is 16 hours per day, types of payment are flexibly applied (cash, e-payment), and now the company is cooperating with some delivery systems such as Now, Grab, Bee so that customers can get its products anytime and anywhere Especially, self-service technology which is early applied in all shops that makes customer very excited because of time-saving and limitation of errors

https://www.brandsvietnam.com/17153-Chuoi-ca-phe-Highlands-Coffee-dan-dau-thi-http://dhome.vn/uu-diem-cua-mo-hinh-tu-phuc-vu-dien-hinh-nhu-Highlands-coffee.html

- People differentiation: The staff play an important role in customers buying process The employees are well-trained to be courteous and friendly to customers that help the company get customer satisfaction and high customer retention rate

3.3 Overall position strategy

“The same for the less” is the winning proposition of that brand Due to the fact that Highland Coffee

is using “Chien luoc binh dan hoa” which decreases the price of their product while the quality is the same According to Sage.edu, almost all of their products obviously have lower price than similar products of Starbuck, Cong Ca Phe

http://sage.edu.vn/blog/highlands-coffee-chuoi-ca-phe-ba-chu-o-viet-nam-cung-chien-luoc-binh-dan-hoa/

3.4 Positioning map

( trong file có)

https://news.zing.vn/chuoi-ca-phe-nao-kiem-nhieu-tien-nhat-va-lo-nang-nhat-tai-viet-nam-post955656.html