INTERNATIONAL MARKETING theme name EXPORTING COFFEE OF TRUNG NGUYÊN ENTERPRISE TO THE GERMAN MARKET

TrungNguyen instant coffee, Trung Nguyen Coffee Co., Ltd., G7 Trading and Service JointStock Company and Vietnam Global Gateway VGG joint venture company withindustries including: produc

BỘ TÀI CHÍNH TRƯỜNG ĐẠI HỌC TÀI CHÍNH – MARKETING

KHOA MARKETING

INTERNATIONAL MARKETING

Theme name:

EXPORTING COFFEE OF TRUNG NGUYÊN ENTERPRISE

TO THE GERMAN MARKET

Hồ Chí Minh, ngày 22 tháng 8 năm 2021 CỘNG HÒA XÃ HỘI CHỦ NGHĨA VIỆT NAM

Độc Lập – Tự Do – Hạnh Phúc

BIÊN BẢN HỌP ĐÁNH GIÁ MỨC ĐỘ HOÀN THÀNH CÔNG VIỆC

I Thời gian: 12h ngày 22 tháng 08 năm 2021

III Thành viên có mặt: Đầy đủ

IV Thành viên vắng mặt/Lý do: Không có thành viên vắng mặt

V Chủ trì cuộc họp: Trương Tôn Anh Thi VI Thư ký cuộc họp: Vũ Ngọc Thái

VII Kết quả đánh giá được thông nhất và tổng hợp như sau:

Buổi họp đánh giá kết thúc vào lúc: 24 giờ 00 phút cùng ngày

Thư ký (ký và ghi họ tên) Nhóm trưởng (ký và ghi họ tên)

Trương Tôn Anh Thi

TABLE OF CONTENT

I EXCUTIVE SUMARY 1

II SITUATION ANALYSIS 2

1 Market size: 2

2 Growth: 2

3 Market trend 3

4 SWOT: 4

5 Competitor analysis 5

5.1 Direct competitor 5

5.3 New competitive force 9

III EXTERNAL ENVIRONMENT 9

1 Political 9

2 Economic 9

IV IN ENVIRONMENT 11

1 Threat from new competitors: 11

2 Power of supplier: 11

3 Threats from substitute products and services: 11

4 Power of customers: 11

5 Fierce competition of competitors in the same industry: 12

V TARGET MARKET DESCRITION 12

1.International market segment 12

2.Market target 13

3 positioning 13

4 Market Entry Strategy 14

4.1 Penetration through normal export 14

4.2 Penetration through franchising 14

VI INTERNATIONAL MARKETING GOALS & OBJECTIVES 14

1.Marketing goals 14

2 International Marketing Objectives: 15

VII MARKETING PROGRAM 17

1 Product 17

1.2 Value Propositions 17

1.3 Branding 18

1.2 Package 18

2 Price: 20

3 Promotion 21

4 PLACE 23

VIII EVALUATION, MEASUREMENT AND CONTROL 23

1.Evaluation 23

2 Measuring marketing 24

IX ACTION PLAN 24

Conclusion 28

I EXCUTIVE SUMARY

About Trung Nguyen company

Born in mid-1996 - Trung Nguyen is a fledgling coffee brand in Vietnam, but hasquickly built up a reputation and become the most familiar coffee brand for both domesticand foreign users

In just 10 years, from a small coffee company located in the middle of the coffeecapital Buon Ma Thuot, Trung Nguyen has risen to become a powerful corporation with 6member companies: Trung Nguyen Joint Stock Company, a joint stock company TrungNguyen instant coffee, Trung Nguyen Coffee Co., Ltd., G7 Trading and Service JointStock Company and Vietnam Global Gateway (VGG) joint venture company withindustries including: production, processing, trading tea and coffee; the per permissionsand the analysis of Service, selling to resellers In the future, Trung Nguyen Group willdevelop with 10 member companies, dealing in a variety of industries

Pioneering in applying the franchise business model in Vietnam, now, Trung Nguyen has a network of nearly 1,000 coffee shops nationwide and 8 foreign coffee shops such as the US, Japan, Singapore, and Thailand , China, Cambodia, Poland, Ukraine Trung Nguyen coffee products and G7 instant coffee have been exported to 43 countries around the world with key markets such as the

US and China Besides, Trung Nguyen has also built a system of more than 1000 convenience stores and G7Mart distribution centers nationwide.

Vietnam is the second largest coffee exporter in the world Particularly for Robusta coffee,Vietnam has an export output of up to 11 million tons per year, leading the internationalmarket From 2020, although the global economy is affected by the COVID-19 pandemic,the demand for coffee consumption has not decreased but is on the rise

But there is a fact that Vietnam is exporting green coffee mainly This is a weakness thatmakes the commercial value of this item not high compared to the quantity Currently, theinternational market is especially fond of roasted and ground coffee, instant coffee -processed coffee lines Therefore, to meet this demand, our country's coffee enterprisesneed to invest in processing to increase the value of coffee products

Trung Nguyen's powdered coffee, instant coffee, Trung Nguyen not only dominates thedomestic market but is also welcomed in many regional markets, and has initially built aVietnamese coffee brand In addition, with the active support of ministries and branches in

improving processing capacity, expanding markets, reorganizing exports, etc., with theinitiative and efforts of enterprises Vietnam in promotion, marketing and brand positioningwill help Vietnamese coffee products increasingly assert their position in the internationalmarket.

According to preliminary statistics of the General Department of Customs, in the firstnine months of 2019, the whole country exported nearly 1.3 million tons of coffee, earningnearly $2.2 billion, down 13% in volume, down 21% in terms of turnover

Import and export situation of Vietnam in December and 12 months of 2020 ThongKeHaiQuan : Vietnam Customs (customs.gov.vn)

-The average export price of Vietnamese coffee is $1,718/ton (equivalent to aboutVND 39.5 million/ton, down 9.6% in price over the same period in 2018 Notably,Vietnam's coffee exports are exported The most to the German market reached nearly185,300 tons, equivalent to more than 289 million USD, accounting for over 14.6% of thetotal volume and accounting for 13.3% of the total coffee export turnover of the country

Vietnamese coffee is suddenly the most consumed by Germans | Economics | PLO

=> Based on those advantages, we continue to export Trung Nguyen roasted coffeeproducts to the German market to enhance the position of the coffee market in the Germanmarket, but along with that, it is a huge profit from the German market in particular andEurope in general

II SITUATION ANALYSIS

1 Market size:

-The German coffee market reached a value of USD 7,744.96 million in 2019 and isexpected to grow significantly in 2025, reaching a CAGR of 3.09% during the forecastperiod (2020-2025)

- In Europe, Germany is the largest country in terms of coffee consumption, with per capitaconsumption reaching about 6.5 kg Strong demand for freshly brewed coffee is driving sales in marketresearch Furthermore, consumer demand for specialty coffees is growing due to increasing awarenessand knowledge of the product Another factor contributing to this trend is the increase in the number ofcafes, small residential brands, small roasters and bartenders Furthermore, consumers have initiated anew trend of home roasting

2 Growth:

Coffee consumption in Germany remains stable

The market for specialty coffees in Germany is growing and presents opportunities for suppliers of high-quality coffee The specialty coffee segment is a niche market but requires high quality – high value

Germany, Italy and France are the largest coffee consumer markets in Europe

The German market in particular accounts for about 20% of total European coffee consumption, followed by Italy (13%) Other major coffee consumer markets are France (13%), Spain (8%) and the UK (8%) (ICO, 2016) The ICO emphasizes that the EU is a single market and cannot pinpoint exactly where imported coffee is consumed

Germany was the largest direct importer of green coffee from developing countries in 2016, accounting for 35% of total European green coffee imports (1.1 million tons).

Germany has a large coffee roasting industry and most green coffee is shipped through the port of Hamburg, the largest coffee transit point in Europe The port of Bremn is also used as a coffee docking point in Germany The major German coffeeroasters are Tchibo, Melitta, Jacobs and Dallmayr

Consumer trends towards home-brewed coffee, from whole roasted beans, often lead to the preparation of fresh batches of coffee Furthermore, the trend of coffee consumption in the workplace is prominent in Germany

According to Beverage Business World in 2019, Germany is the leader in office coffee consumption It was valued at EUR 725 million, with an average growth of 3%, in 2018 Key players love to serve freshly brewed coffee, made from whole roasted beans, especially in office spaces , mainly due to the growing demand for whole roasted coffee This greatly increases the sales of roasted coffee

picture 2 1 Sale of Roasted coffee by Segment type

Arabica Coffee is the Largest Segment in the German Coffee Market Germany is one of the main importers of green coffee German consumers prefer light, high-quality roasted Arabica coffee Arabica beans stand out to German consumers, compared to robusta

- Strength:

+ Technology, coffee flavor of Trung Nguyen is extremely special in the market - Weakness:+ The efficiency of the distribution channel in the German market has not been maximized - Opportunity:

incentives

+ The German market has to import coffee, especially in Brazil and Vietnam

+ The domestic coffee market in Germany has many loopholes

- Threats:

+ Brazil is trying to export a large amount of coffee to the German market

+ Indonesia is targeting the coffee export market to Germany

+ Entering a new market, factors such as capital, knowledge, and interests are the things that determine quite a lot in the existence of a business

5 Competitor analysis

5.1 Direct competitor

Today's coffee production and export industry has a high level of competition, fromforeign competitors to domestic competitors having the ability to penetrate the market thatthe company is aiming for Here are some comparisons of potential industry competitors:

NESCAFE

Nestlé Vietnam, for many years in a row among the leading sustainable development enterprises, not only performs well in business activities, creates jobs, contributes to the state budget but also actively contributes pole for initiatives and programs for social development and environmental

protection and community development

As part of that common goal, the companystrengthens its image and brings products ofsustainable origin, made in Vietnam with the

countries around the world

Dallmayr Prodomo German Coffee

This is the best rated German coffee in 2020 because it retains the natural and sweet tastethat anyone would love to feel It is presented in ground coffee form, so all you need is tograb some and use the best coffee grinders, your coffee will be ready Furthermore, itcomes in a pack of six, with each weighing 1.1 pounds.

The reason why like this coffee is because it contains 100% Arabica so can be consideredgood for your health Produced by a trusted brand in Germany, you want to experience anyhealth complications when drinking coffee because the coffee is pure and carefully crafted

to meet everyone's needs, with no hidden chemicals or ingredients with no value

Dallmayr Decaffeinated German Roast CoffeeCaffeine has been known to be a quality stimulant that, atthe time, can affect you when taken in large quantities As

a result, Dallmayr takes extra measures to ensure theircoffee is decaffeinated without losing the flavor and aroma

of the original coffee Moreover, coffee is obtained fromthe Central Highlands Arabica tree It configures only thebest farms in the world using proprietary farming methods,thus ensuring pure and natural coffee

From the best coffee reviews available online By far, decaffeinated Dallmayr groundcoffee is the best coffee without bitterness and irritants What's more, the coffee isproduced in Germany according to Good Manufacturing Practices in the bodies thatcomply with the Industrial Park

Barissimo German Ground Coffee

The company strives to guarantee 100% customer satisfaction by only producing the best quality that meets

the standards of the consumer However, to make this coffee you will need to add 2tablespoons/6oz of water to the automatic drip coffee maker, you should not reheat or boilyour brewed coffee as it may affect the taste and flavour.

The company strives to guarantee 100% customer satisfaction by only producing the bestquality that meets the standards of the consumer However, to make this coffee you willneed to add 2 tablespoons/6oz of water to the automatic drip coffee maker, you should notreheat or boil your brewed coffee as it may affect the taste and flavour

Jacobs German Instant Coffee

Founded by Johann Jacobs in 1895, this brand has continuously provided German residents with high quality coffee roasted by professionals with experience hence still considered the best coffee brand in Germany .

As we believe the 3in1 Classic Instant Coffee Sticks, you'll enjoy serving your coffee on the go and waste no time as it's ready faster than

other brands

As the name suggests, "3in1" It is packed with coffee beans, sugar and cream to save yourtime and resources They come in packs of six, each containing ten servings of 18g each; soyou can grab your coffee on a short break or on the go

Tchibo German Roast Coffee Instant Coffee

Producers to meet the expectations of coffee consumers Tchibo Gold Selection brews coffee to give you the best coffee with great aroma Moreover, the brand mainly uses the finest coffee grown from the best agricultural lands, free of harmful ingredients In addition, before bringing these coffees to market, they

are ground, freeze-dried, roasted to perfection, and then carefully blended to preserve the natural flavor and aroma of the beans

Coffee is imported directly from Germany and meets all safety standards for consumers.

They come in two pots for a total of 7oz/200grams of coffee

Advantages: has a long-standing position in the hearts of domestic German customers, reasonable prices with a wide distribution network throughout Germany, easy to find In addition, the above brands also have ingredients as well as quality from nature Cons: Many

foreign brands, so the high cost makes the price of the product high.

5.2 Alternative products

In this era of technological development, high-end customers can replace skin care withmodern, high-tech machinery products In the current era of technology development,customers in the high-end segment can buy themselves a coffee machine at home Thesealternative products have the advantage of bringing class, and convenience Besides, it alsosolves the problem of buying and buying products again and again

Coffee machines are sold widely throughout the market, everywhere selling home appliances,

This alternative product has the advantage of reasonable price and because it is sold atelectrical stores In addition, these substitutes are highly personalized and can be seasonedaccording to the user, regardless of the producer

5.3 New competitive force

Because Vietnam is a country with a large coffee production and good quality, theremay be many potential businesses appearing in this industry

Large and small coffee chains across the country can actively source and producetheir own products to launch into the market in order to supply themselves for use andcompete with existing brands

Advantages: These potential competitors may have unique and strange moves in thecoffee industry

Cons: The cost to invest in machinery is quite large, technology and finding a source of quality raw materials are still a problem and the time to test it out to the market is quite long.

III EXTERNAL ENVIRONMENT

Since the EVFTA was officially ratified between Vietnam and Europe, product linesexported from Vietnam have enjoyed a huge reduction in import tax rates Including coffeeproducts coming to the German market (considered the largest coffee consuming country inEurope) In addition, the German government also requires coffee products to ensure thatthere are no residues of pesticides

(

https://baodautu.vn/gan-300-tan-ca-phe-viet-len-duong-sang-chau-au-huong-thue-0-d129678.html)

The German economy is considered the first in the European Union and the fifth in the world.

In 2020, due to the severe effects of the Covid19 pandemic, GDP per capita grew by -5.07%, causing the German economy to fall into a downward spiral According to the federal statistics office, total GDP in the second quarter of 2021 has shown signs of growth again at 1.5% compared

to the previous quarter, but the inflation rate in July is still on track to record

(https://www.destatis.de/DE/Home/_inhalt.html) At the same time, Germany is Vietnam'slargest trading partner in Europe, accounting for ⅕ of export turnover to this market

Although both countries are affected by the pandemic, they still maintain a positive growth

rate In the first two months of 2021, the two-way turnover of Vietnam and Germany reached

Germany's seaports are used as Europe's largest coffee transshipment points (http://thitruongnongsan.gov.vn/vn/tID25800_Nhu-cau) -ca-phe-tai-thi-truong-chau-Au.html)

Germany is famous for its highly advanced industry that helps them apply manytechnologies to make the world's best coffee-making equipment With trinamiX MobileNear-Infrared (NIR) Spectroscopy Solutions helps determine the caffeine content andmoisture content of coffee beans, coffee roasters monitor and better control the process of

//www.basf.com/fi/en/media/news-releases/2020/09/p-20-294.html)

Due to being a country with a relatively low average annual temperature of 8.4degrees Celsius, it is difficult for Germany to cultivate and grow coffee on its own So bothGermany and Europe have to import coffee from other countries And According to the EUreport on the German environment in 2019, the effects of air pollution are increasing inGermany (https://ec.europa.eu/environment/eir/pdf/report_de_en.pdf) A large part comesfrom the German people's overuse of one-time cups These cups are made from paper,plastic and styrofoam and after use these cups will be thrown away, lying in landfills formany years releasing toxins for the environment Under the "green initiatives" program, theGerman government is trying to get rid of single-use cups and replace them with reusablecups And the Freiburg Cup system has been going very well

German Coffee Tax Law stipulates that the tax rate for coffee goods and products is

2.19 Euro/1kg The high tax rate makes the coffee market in Germany not so attractive (https://www.globalregulation.com/translation/germany/387591/index.html#BJNR191900009

BJNE000501140) In addition, the German government has some amendments in the law to prevent environmental pollution Therefore, it is difficult for Vietnamese coffee products packaged with single-use plastic to enter this market (https://www.thebreaker.co.uk/the-german-plastic-pollution/)

IV.IN ENVIRONMENT

1 Threat from new competitors:

Coffee supplies from countries in Southeast Asia such as Indonesia and Thailand began to target the German target market, which is a foreign concern about the price, market share and output competition of Trung Nguyen coffee with countries in the region

2 Power of supplier:

Currently, the supplier does not have much impact on Trung Nguyen's coffee export

output because the company already has the company's exclusive supply With a closed

care and production process in Daklak

Trung Nguyen coffee masterpieces are created from the world's best ingredients,

combined with the mysterious oriental know-how and the world's leading modern

roasting technology, along with the love and passion of the coffee makers No 1 coffee

expert Only Trung Nguyen energy coffee masterpiece converges 3 world famous coffee

civilizations Ottoman, Roman, Zen

(Trung Nguyen Legend Energy Coffee - Trung Nguyen Legend (trungnguyenlegend.com))

3 Threats from substitute products and services:

In Germany, in addition to coffee, people also drink drinks that have the same effect as coffee:

monter energy drink, red bull, ready-to-drink coffee With reasonable prices, product diversity and convenience in use are threats to Trung Nguyen's coffee roasting behavior.

4 Power of customers:

• The main concern is the taste of German people, the taste of coffee is slightly bitter, they prioritize the taste of milk coffee over pure coffee

• The second is the price, with the process of caring and producing the best coffee beans ofTrung Nguyen coffee, the price is quite high compared to the market price in Germany, still calculatingthe price of customers

5 Fierce competition of competitors in the same industry:

Companies, such as Tchibo, exclusively use this high-quality coffee bean in their coffee

blends, and the Company purchases Arabica coffee from experienced roasters and quality

staff major competitor in the roasting coffee market for Trung Nguyen coffee in the

German market

Brazil is a major coffee export market in the world and a major competitor in the

Vietnamese coffee export market in Germany

1.International market segment

MunichGeographical

student, Expert, Labor Expert, Labor,

Expert

potentialBehavioral

Loyals

2.Market target

With 3 Segments in Market Segment, Segment C will be the target market for Trung Nguyen

Legend to target With areas in Segment C including Harmbug, where Germany's largest seaport is

located, this is where the focus of coffee imports into Germany and Europe is In addition to

Harmbug port, with the remaining cities considered the coffee capital Therefore, these areas have

the potential to bring many benefits to TNLegend's transportation and penetration into the German

market And the target customers TNLegend can focus on are people between the ages of 23 and 55

who currently make up the maximum percentage of the population structure in Germany with 62%

and this is also the main labor force with high

(https://service.destatis.de/bevoelkerungspyramide/index.html#!y=2020&l=en)

(https://www.statista.com/statistics/553151/coffee)