Augmented reality application and memory marketing on consumer attitudes and behaviors case study the tale of cuoi from the coffee house

The study aimed to determine the impact of augmented reality technology andnostalgic marketing on the attitudes and behavior of Gen Z consumers in Ho ChiMinh City by interviewing 23 cust

MINISTRY OF EDUCATION AND TRAINING

UEH UNIVERSITYUEH BUSINESS SCHOOL

INTERNATIONAL BUSINESS -MARKETING DEPARTMENT

Research the impact of Augmented Reality application and Memory marketing on consumer attitudes and behaviors Case Study: “The Tale of 

Cuoi” from The Coffee House

 Course number: 22C1MAR50313602

Course name:Consumer Behaviour - EN

Members of group 04:

Tran Ngoc Thien Kim - 31201020435

 Nguyen Pham Thanh Mai - 31201025847

Le Thi Thao Trang - 31201024368

Le Thi Tuyet Nhi - 31201023084

Le Ngoc Yen Nhi - 31201024647

TABLE OF CONTENTS

ABSTRACT 1

I INTRODUCTION 2

1 Reasons for choosing the topic 2

2 Summary of The Coffee House's "The Tale of Cuoi" Campaign 3

3 Research purposes 3

4 Research subjects 3

5 Research scope 3

6 Research methods 4

II THEORETICAL FRAMEWORK 4

1 Market Overview 4

2 SWOT and Key Competitor 5

2.1 SWOT 5

2.2 Key Competitor: Cong Coffee 7

3 The motivation and goals for The Coffee House to launch the campaign “The Tale of Cuoi” 7 

4 Theories applied to the study: 9

III FINDINGS 11

1 Summary of the focus group 11

2 Research results and analysis: 12

IV CONLUSION & RECOMMENDATION 20

1 Conlusion: 20

2 Limitations: 21

3 Recommendations 21

VI REFERENCES 23

The study aimed to determine the impact of augmented reality technology andnostalgic marketing on the attitudes and behavior of Gen Z consumers in Ho ChiMinh City by interviewing 23 customers (divided into 5 groups) living in Ho ChiMinh City who have experienced advertising using augmented reality technology onmobile phones.This study presents the results of a campaign that uses the fairy tale

"Chu Cuoi in the Moon" as the foundation for innovative products combined withtechnology through AR to stimulate the purchasing power of mooncakes of consumers of The Coffee House Capturing mobile usage behavior of TA, the brandthat develops AR technology for The Coffee House app Users can use the newfunction to scan product packaging to experience the story "The Tale of Cuoi" Thismethod not only helps the brand convey the story more vividly and completely, butalso allows users to unleash their imagination when immersed in eye-catching AR movements The results show that the application of AR in marketing and product packaging of The Coffee House has successfully left a positive impression onconsumers, and especially stimulated the eyes Since then, the research hascontributed academically and practically to businesses in applying AR shopping to provide information and create added experience value for customers At the sametime, the study also proposes some managerial implications to help businessesincrease customers' positive attitudes towards advertising, thereby helping businesses better meet customers' needs and building customer loyalty as well as building moresuccessful advertising campaigns

Keywords: AR technology, Augmented reality, AR apps mobile application,memory marketing, nostalgia, experience, decision-making

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I INTRODUCTION

1 Reasons for choosing the topic

The fourth industrial revolution is well underway, with the introduction of newtechnology and procedures Smartphones and other technology gadgets have becomeindispensable components of contemporary life and consumerism (Braun et al., 2016).These technology gadgets have integrated applications such as: Shopping apps withaugmented reality technology (Augmented Reality, AR shopping apps for short),allowing consumers to participate and experience a new approach for customers todiscover more about items and services and experience them in a real-world context(Huang & Liao, 2015), which can enhance the customer experience

Due to the fact that more than 73% of people in Vietnam use smartphones(according to Tin tuc newspapers, 2022), businesses and retailers may benefit from thechance to promote products and services through digital technology platforms like AR shopping applications to their clients The use of technology in daily life has alteredhow people behave New technology applications, like augmented reality shoppingapps, have made it easier to get information and have product images that match theuser or their surroundings For instance, users can try on shoes, lipsticks, watches, or home appliances that will fit their space Numerous businesses currently make use of smartphone augmented reality purchasing apps (eg: YouCam App, IKEA, ) It isdifficult to ignore the highly effective marketing effort for "The Tale of Cuoi 2020."from The Coffee House (With The Coffee House app, customers may experience thetale of "The Tale of Cuoi" by scanning product packaging This approach not onlyallows the business to easily transmit the tale in a more vivid and full manner, but it alsoallows consumers to release their creativity while engaged in eye-catching AR motions;moreover, it recalls recollections of the traditional values and beauty of the event Theyhad forgotten about the mid-autumn celebration because of their present hecticschedule This campaign resulted in a media frenzy, and total sales in 2020 soared by250% compared to 2019, with items selling out before the Mid-Autumn Festival (withover 60,000 cakes) (Brands Vietnam) As a result, we can conclude that AR shoppingapplication technology is a tool for potential and successful marketing that businessesshould use to fit client wants

In fact, in a developing country like Vietnam, the application of AR technology

is not really popular Therefore, the authors have conducted a research paper “Research

on the impact of AR technology and Nostalgic Marketing on the shopping behavior

of Gen Z consumers in Ho Chi Minh City” is needed to study how the impacts of AR will affect the attitudes, shopping experiences and behavioral trends of Gen Zconsumers in Ho Chi Minh City The results of this study will help administrators whohave used or intend to use AR advertising on mobile phones to have a more detailedview of the impact of factors on customer attitudes, thereby helping businesses better meet the needs of customers and build more successful campaigns

2 Summary of The Coffee House's "The Tale of Cuoi" Campaign.

Grasping the trend of the Metaverse Virtual Universe, The Coffee House hasdeveloped AR technology for its own branded app Users can use the new function toscan product packaging to experience the story "The Tale of Cuoi" This method notonly helps the brand convey the story in a more vivid and complete way, but also allowsusers to unleash their imagination when immersed in eye-catching AR movements,helping to stimulate the eyes

Besides, The Coffee House first aired its own radio program called "MoonStoryteller" The program brings listeners back to their childhood with interesting,honest stories and poetic songs

Comment: The Coffee House used Sensory marketing to stimulate customers'vision and Memory Marketing to remind customers of good memories

Through the campaign, The Coffee House attracted the public's attention andsuccessfully turned "The Tale of Cuoi" into a strong brand platform to engage with the brand's consumers during each Mid-Autumn Festival

The 2020 campaign ended with the following outstanding results:

Communication results:

- Nearly 37 million impressiom, exceeding 116% KPI

- More than 16 million reach, exceeding 144% KPI; 9 million engagements,exceeding 467% KPI

- 9 million views of short films, exceeding 139% KPI

in Ho Chi Minh City towards advertising using AR technology on mobile phones

6 Research methods

In this study, the authors used the qualitative research method The authorshave conducted a case study using information gathering/exploitation techniquesthrough group interviews and discussions with 3 groups (including 23 people) to beable to comprehensive and in-depth study and assessment of the impact of augmented reality technology and nostalgic marketing on the shopping behavior of Gen Z consumers in Ho Chi Minh City

II THEORITICAL FRAMEWORK 

1 Market Overview

a Market overview:

In 2020, the Mooncake market is said to be quite gloomy, without manyimpressive advertising campaigns Although the Covid-19 epidemic in Vietnam iswell controlled, the negative impact on the economy is still heavy and will lead tomany changes in the Mooncake market When the economy is affected, the demandfor non-essential goods will decrease It can be said that the Mooncake market in

2020 is developing slowly and less excitingly than the previous year

b Competition in the high-end segment:

Every year, the Mooncake market is fiercely competitive in terms of taste,design, packaging, and even promotions

In Ho Chi Minh City, Mooncake products of brands such as Kinh Do, NhuLan, Dong Khanh are popularly traded on downtown streets such as Cach MangThang Tam, Pham Van Dong, Hoang Van Thu, Cong Hoa, Quang Trung Most business units operate in parallel with traditional and online wholesale methods, sothey do not store goods in large quantities as in previous years On the other hand,the business unit also provides free home delivery for customers, so the quality of mooncakes is guaranteed from production, distribution and transportation toconsumers Some business units also offer paper lanterns of various designs for customers

In terms of price, the price of Mooncakes in 2020 has increased by 5-10%compared to the previous year (depending on the type), due to an increase in someinput materials Specifically, mooncakes of brands Kinh Do, Nhu Lan, and DongKhanh are priced from 250,000 to 500,000 VND/box (depending on the number of cakes and weight of each product)

c Competition among coffee chains:

Mid-Autumn Festival 2020 products associated with the brands of bakeries,coffee shop chains, etc have the upper hand on the brand reputation In particular,this year's mooncake season welcomes the participation of more and more brandssuch as Givral, ABC, Phuc Long Coffee&Tea, MyLife Coffee, The Coffee House

These brands conquer consumers with unique products such as mooncakes produced and processed from green beans, coffee, and salted eggs; or use a variety of specialty ingredients such as ginger jam, lemon, lime leaves, malt, dragon fruit,cheese Meanwhile, the price is only different from other cakes of the same type andweight The price on the market is only about 100,000 - 150,000 VND/box.

Typically, The Coffee House has a line of Ram Tu Quy mooncakes selling atVND 590,000/box; Ram Song Phuc at 350,000 VND/box; The Tale of Cuoi at790,000 VND/box And Phuc Long Coffee&Tea has a line of Song Hao Trang Rammooncakes with the price of 320,000 VND/box; Luc Bao Huong Thu 820,000VND/box In addition, consumers can choose individual bakery products to designtheir own cake boxes according to their preferences

d Many units enter the market:

After 5 years of absence from the market, in July 2020, KIDO Group (KDC)announced its participation in the moon cake market in 2020 with Kingdom

In which, KDC with the strength of experience in making fresh cakes(mooncakes) and at the same time processing them will save a lot of costs, this is anadvantage that helps the Company to compete on price The company will R&D the product while the production is carried out to order from outside This will help thecompany avoid the burden of costs (mostly depreciation costs), especially amid theunpredictable COVID-19 pandemic

KDC chooses the mid-range segment, the price ranges from 55,000 to 150,000VND/cake In addition, the Company also develops gift products for the high-endsegment, with prices ranging from VND 700,000 to VND 1,000,000/box

2 SWOT and Key Competitor 2.1 SWOT

* Strengths:

Unique, out-of-the-ordinary content:

After only 5 days of release, the film received positive feedback from theonline community with nearly 6,000 likes, 396 shares, and thousands of comments

on fanpage, more than 1 million views on the Youtube channel The interaction of The Coffee House far exceeds that of competitors in the same industry even though itwas launched many days before

One of the reasons why "Ve nha don trang" attracted a lot of attention is because of the novel script If every year, users are often overwhelmed by shortfilms, TVC ads focus on exploiting family affection, reunion season has become sofamiliar, this year, The Coffee House decided to change, and don't follow that pathanymore It can be seen that it is rare for brands to develop such a scenario thatintegrates such folk tales

The meaningful message, integrating Vietnamese identity:

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Integrating Vietnamese identity and national spirit in business is not new, but

to cleverly transform into short films, TVC advertising is something few businessescan do The image of the god buffalo appearing was inspired by the symbol of thecountry with wet rice civilization

Applying smart technology to business:

Capturing customers' mobile device behavior, the brand develops AR technology for The Coffee House application Users can use the new function to scan product packaging to experience the story "The Tale of Cuoi" This method not onlyhelps the brand convey the story more vividly and completely, but also allows users

to unleash their imagination when immersed in eye-catching AR movements

* Weaknesses:

Sparsely distributed selling points:

The Coffee House is a chain of stores that is mostly concentrated in the citycenter, so it has not yet been able to reach customers in more remote areas Manycustomers still do not have access to the product

Narrow market segment:

In the Nostalgia trend, The Coffee House the target is Gen Z customers, whooffer products that combine tradition and modernity But besides that, the product isdifficult to reach other segments Narrow market segment (medium to high), price:350,000 VND - 790,000 VND/box

* Opportunities:

The rise of the Nostalgia trend:

With the rise of the Nostalgia trend in recent years, The Coffee House is alsoextremely observant when choosing traditional Vietnamese cultural materials withthe pure Vietnamese story Chu Cuoi Cung Trang to tell its very own story

New technology trends:

Combined with available phone applications for both iOS and Androidoperating systems, AR technology not only brings a special visual experience, pureVietnamese cultural elements, thereby bringing a new life to life Active in common packaging design, forming an interaction protocol between brands and generalcustomers, especially Millennials and Centennial customers

* Threats:

Fierce competition:

Every year, hundreds of large and small brands, and thousands of productionfacilities… race to launch new products Besides, under the impact of the Covid-19 pandemic, the lines of "handmade" mooncakes made by hand at home have alsosprung up a lot

The market fluctuates due to the pandemic:

The moon cake market is also greatly affected by the pandemic due to prolonged social distancing Therefore, production must be narrowed due to reduced purchasing ability and a difficult economic situation.

2.2 Key Competitor: Cong Coffee

* Overview

Cong Coffee is a coffee chain established in 2007 At present, Cong Coffee is present everywhere in Vietnam and has opened branches in Korea and Malaysia

* Pursuing the Nostalgia trend:

Cong Coffee's resounding success is undeniable when it decides to enter themooncake market Like a nostalgic person who stubbornly refuses to be modern,Cong Coffee mooncakes still appear with rustic green packaging, simple but veryfamiliar to those who are fans of Cong

* Cong Coffee's opportunity in the mooncakes market 

To save the original things of the Mid-Autumn Festival, Cong Coffee onlylaunches users with 2 traditional flavors: Mixed and green beans with melon seeds It

is the simplicity of the Cong that has created a great resonance, not only instilling fire

in young people about the national culture but also bringing the story of Vietnamfurther to friends around the world

The gift box has the brand's iconic blue color, and the design is inspired by thenight of the lantern procession, with 4 innovative flavors: coffee coconut milk,coconut milk green tea, blueberry salted egg and mixed The price of a box of 4 is360,000 VND, retail is 70,000 VND/piece In addition, this coffee chain also offerscake - tea combos to boost sales at the shop These combos have two prices, VND85,000 and VND 145,000

Because there are branches in Korea and Malaysia, Cong Coffee can bringtraditional flavors to other countries around the world With a nostalgic style andalways drawing its own stories for each of its products, Cong Coffee has broughtcustomers special experiences from taste to vibe Therefore, Cong Coffee alwayscreates a great resonance both at home and abroad, always being pursued by young people

3 The motivation and goals for The Coffee House to launch the campaign “The Tale of Cuoi”

●  Actual situation: The level of commercialization has increased gradually over time, losing the meaning and cultural value of the Mid-Autumn Festival in thehearts of Vietnamese people Life keeps dragging us away with all our busyworries, so the Mid-Autumn Festival is also difficult to be as complete as before.Over time, we also ignored the customs and habits of this traditional festival toadapt to the hustle and bustle of life, leading to the traditional beauty of theAugust Full Moon festival in danger of being lost before the development of 

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mobile devices and social networks At this time, enjoying the Mid-AutumnFestival is only a childhood memory Not only that, the Covid epidemic causedmid-autumn festival activities to be stopped, further "cooling down" the spirit of Vietnamese people to celebrate the Mid-Autumn Festival In order to maintaintraditional values and breathe new life into the Mid-Autumn Festival 2020, TheCoffee House applies AR to the campaign to make the customer experience moreauthentic and vivid The Tale Of Cuoi is a creative project full of enthusiasm byyoung Vietnamese artists, with the companionship of The Coffee House brand.The story is inspired by folk fairy tales, with pride in Vietnamese cultural values,wearing a youthful, modern look This is not only a story about the Mid-AutumnFestival, but also a reminder to everyone's childhood that, no matter how whirlingthe universe is, each of us always has a place to return to with loved ones on a fullmoon.

●  In terms of market factors, the Mid-Autumn Festival is a golden period for F&B brands to increase brand awareness and boost sales, including The Coffee Housewith the mission "Delivering Happiness" with the desire to revive the beautifulchildhood memories that are gradually forgotten and preserve the cultural values

of the Autumn Festival In addition to making a difference for other Autumn Festival campaign series, leveraging the power of AR technology andsocial networks to effectively reach consumers and help brands stand out from thecrowd of competitors in the mooncake industry in particular and the F&Bindustry in general In addition, when the whole world enters the industrialrevolution 4.0, modern technologies such as Augmented Reality (AR) are also being applied more in many areas of life AR is proving its ultimate benefits byhelping many industries make strong strides, one of which is the food serviceindustry Especially, in the post-pandemic period, to compete and recover fromthe losses caused by COVID-19, many F&B businesses have started activelyapplying AR to all their activities and services to bring customers newexperiences and increase revenue, including The Coffee House

Mid-● The campaign's human values:

+ Honoring the values of Vietnamese folklore in general and the Mid-AutumnFestival in particular with a different approach

+ Wishes to refresh the familiar folk story of The Moon Boy, The Moon Lady,and the banyan tree through a unique and modern lens Bringing a great lovefor Mid-Autumn Festival in particular and Vietnamese folklore in general.+ Invest in cooperation with enthusiastic projects of the young creativecommunity to spread positive inspiration about the good cultural values of Vietnam to more people

+ Convey the profound messages that the brand wants to convey: “No matter how hectic life is, everyone can keep for themselves beautiful and warm

images of the Mid-Autumn Festival and enjoy the night full moon with lovedones".

● Marketing and Communication Objectives:

- Marketing Objectives:

+ Campaign targeting Gen Z and Millennials+ Market growth, image promotion, company brand, enhancedinteraction with customers

+ Create the WOW effect+ Stimulating purchasing power of The Coffee House's mooncakes+ Become a Top-of-mind mooncake brand during the Mid-AutumnFestival

- Communication Objectives:

+ Increase Brand Awareness+ Increase Brand love

4 Theories applied to the study:

●  Packaging and AR: Sensory marketing Welcome to the new era of sensory marketing, where companies think carefullyabout the impact of sensations on our product experiences From hotels tocarmakers to brewers, companies recognize that our senses help us decide which products appeal to us—and which ones stand out from a host of similar offerings

in the marketplace In this section, we’ll take a closer look at how some smartmarketers use our sensory systems to create a competitive advantage

“The Tale of Cuoi” is a story inspired by folk tales, with pride in Vietnamesecultural values, wearing a youthful and modern look The beauty of animation isnot only telling the story through video but also through the cake box, and socialmedia The Coffee House released 2 packaging versions inspired by lanterns andfairy-tale comic books instead of the red design with familiar traditional images.Use the images of The Moon Boy, The Moon Lady, the moon, and banyan treesfor the packaging to increase the relevance of the product to the Mid-AutumnFestival This impresses the senses with the traditional cultural values drawn fromimages, colors, music, and characters that stimulate the interest of customers As

in the "book" version, the first impression on the cover is the fancy "The Tale of Cuoi" typography, stylized with a unique moon image Next, instead of thetraditional red color, The Coffee House chose for itself the main colors for the

2020 version, which are orange, white and black The minimalism and difference

in the selection of a trio of contrasting colors bring outstanding visual effectswhile still maintaining a luxurious look compared to other similar product lines

on the market Sensory Marketing, The Coffee House wants to attract and recallthe childhood memories that are leading into the oblivion of each person Inaddition, The Coffee House also applies AR technology to product packaging as a

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way to impress and excite consumers - to make a difference for the product aswell as to bring an interesting new experience for customers client Thecampaign is like "a breath of fresh air" that is different from other mid-autumncampaigns.

● Mobile: The behavior of using electronic devicesUnderstanding the impact of electronic devices on people and capturing their mobile usage behavior, the brand has developed AR technology for The CoffeeHouse application This integration contributes to enhancing the visualexperience, helping the meaning of the Mid-Autumn Festival to be told in a moremodern and civilized way Users will experience the story "The tale of Cuoi" byapplying a new function - scanning on product packaging This way not onlyhelps brands convey their stories and messages vividly but also helps create agreat impression on customers when they can see the characters in the storymoving AR outside reality

● Social: The influence of social on behavior

One of the reasons why The Coffee House's "The Tale of Cuoi" campaign is sosuccessful is because the brand has effectively leveraged social media to reach itstarget audience About 3 weeks before the Mid-Autumn Festival, The CoffeeHouse launched a 3D animated short film called "The Tale of Cuoi" on Youtubeand Facebook platforms Social networks are the fastest means of spreadinginformation in today's era, all information, news, and trends, are constantlyupdated on social networks and people interact and follow each other The CoffeeHouse takes full advantage of the power of social networks to propagate andexcite the target audience through promotional posts Or create excitement withminigames that "scan" cake boxes to receive gifts, and discount coupons whenusing products at The Coffee House stores

In addition, The Coffee House also broadcasts a radio program (Moon StoryTeller) as a place for people to share their interesting and honest stories abouttheir childhood or open up about their beauty or regretted memories

● Podcast and Content video: Memory Marketing Memory is a process of acquiring information and storing it over time so that itwill

 be available when we need it Contemporary approaches to the study of memoryemploy an information-processing approach They assume that the mind is insome ways like a computer: Data are input, processed, and output for later use inrevised form

The familiar folk story about The Moon Boy, The Moon Lady, banyan tree,moon, through the prism interwoven between modernity and tradition, alongwith a skillful combination of materials of folk culture (such as a star lantern, ahandmade rooster; the image of a grandmother telling stories to her grandchildren

 by the window) makes viewers recall the memories of the Mid-Autumn Festivalwhen they were children The message that the brand wants to convey is alsowarmly received by everyone The campaign has brought many meaningfulvalues: It evokes childhood memories, recalls the forgotten historical traditions of mid-autumn culture, or stories that are no longer heard today There are also podcasts where people share their own stories with those around them, to listen,reflect and settle.

III FINDINGS

1 Summary of the focus group

A focus group was conducted to determine whether Augmented Reality (AR) technologyand Memory theory affect consumer behavior The twenty-three participants (4 male, 17female, and 2 LGBT, with an average age of 20) were chosen from the same group, with anemphasis on The Coffee House loyalists

The session began with a short survey that asked them to gauge their level of understanding

of AR technology The session began with a discussion of these AR perspectives After each perception was shared, the moderator asked the group if they could relate at all to theseexperiences 22 of the respondents have a basic understanding and have heard about AR andits applications (5 people know AR through the Pokemon Go game; 15 people know ARthrough social networks and news, and newspapers; 2 people know about AR through realexperience at the mall), while 1 person doesn't know anything about AR

Participants then discussed The Coffee House's Campaign All 23 people were impressed bythe campaign, but only 9 respondents had a deep and unforgettable impression, reaching the point of “Wow”, while 14 respondents were impressed with the campaign but the

impression was not deep

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To research visual effects and moods, we asked: “When seeing moving characters incartoons, with AR scanning, seeing moving characters in real space at home, is the feelingdifferent?”, and out of a total of 23 respondents, there are 13 respondents feel there is adifference, while 10 respondents did not feel any difference.

Several of the concepts from the sensory marketing study are present here, such as theimportance of having a luxury brand because of the packaging When we asked to find out priority factors when choosing a consumer's brand, “are you willing to spend money to buyThe Coffee House's AR-integrated mooncake box instead of famous popular brands likeKinh Do or Nhu Lan?" As with this participant:

“Worth to buy, the more modern life is, the need to renew, the old packaging is not

attractive enough because it is quite boring The Coffee House's breakthrough in packagingattracts me because I prefer beautiful and colorful things.”

To understand how the Price and experience of AR affect consumer behavior, we addedmore information: In the promotion campaign for mooncake products "The Tale of Cuoi",The Coffee house has launched many versions of mooncake boxes, in which 2 types of boxes with integrated AR technology are The Tale of Cuoi with the price of 790,000VND/box and the box of a lamp with the price of 450,000 VND / 1 box, and we asked,

“between the 2 versions of the cake box with AR integration at the given price, which boxwill you give priority to?” and the chart below illustrated the result: