MINISTRY OF FINANCE UNIVERSITY OF FINANCE MARKETING MARKETING MANAGEMENT MARKETING MANAGEMENT MARKETING PLAN THE COFFEE HOUSE Member of group 2021702006010 Võ Thị Hoài Thương 1921005692 Dương Nguyễn A[.]
EXECUTIVE SUMMARY
Our team has developed an innovative marketing strategy for The Coffee House's new instant milk tea product, aiming to tap into a new market opportunity With over 180 stores, The Coffee House is well-positioned to adapt to changing consumer trends and the challenges posed by the pandemic Our instant milk tea solution is designed to enhance operational efficiency while prioritizing convenience and product quality, setting it apart from existing offerings in the market.
Our innovative product is not only more cost-effective than current offerings but is also poised to set a new market trend and inspire competition Our team has crafted a strategic marketing approach that enables products and brands to swiftly penetrate the consumer market and engage diverse customer segments, positioning us as a leading supplier in this space.
Prior to developing our marketing plan, we conducted thorough research and analysis on the brand, consumer market, and competitive landscape, identifying the coffee brand's strengths, weaknesses, opportunities, and challenges, along with the introduction of a new product—instant milk tea Additionally, we considered both micro and macro factors influencing the brand's marketing strategy Moving forward, we have carefully selected and formulated an STP strategy for the instant milk tea product, focusing on the right customer segments, target customers, and brand positioning.
A well-structured marketing plan that incorporates the 5Ps—product, price, place, promotion, and people—is essential for achieving business success Each strategy should focus on enhancing the product's competitive advantage, effectively bringing it to market, and attracting users Additionally, a detailed marketing plan should outline a specific timeline, implementation methods, constraints, expected revenue and profit, and a budget for advertising activities, all of which are crucial for clearly defining goals and ensuring successful execution.
INTRODUCTION
Launched in 2014, THE COFFEE HOUSE has quickly emerged as a notable player in the F&B industry The brand aims to establish itself as the 'Starbucks' of Vietnam, fulfilling the dream of providing delicious coffee to millions of customers while representing a proud Vietnamese coffee brand.
The Coffee House, founded by Mr Nguyen Hai Ninh in 2014, represents a significant milestone in the Vietnamese F&B industry A graduate of Ho Chi Minh City University of Technology, Mr Ninh, who previously worked with the Urban Station brand, is driven by his vision for the future of Vietnamese coffee The Coffee House aims to compete with global giants like Starbucks and Coffee Bean, showcasing the potential for growth in the local coffee market.
History of formation and development:
2014: Launched in the market in Ho Chi Minh City with the first store located in Cao Thang District 3.
2015: Continue to develop and be present in Hanoi capital.
2017: Developing stores in Da Nang, Bien Hoa, Vung Tau.
In 2018, Cau Dat Farm commenced its journey "From farm to a cup of coffee," officially operating on over 1,650 meters of coffee-growing land After four years of dedicated operation, the brand achieved a significant milestone by expanding to 100 stores across major cities.
2020: Continuing to develop and launch new product lines, more than 180 stores are expanded with the desire "Everybody has 1 The Coffee House
Mission: The Coffee House manufactures and trades products derived from nature, protecting and improving consumers' health.
At The Coffee House, we believe that "going for coffee" transcends just enjoying a beverage; it’s about fostering connections and creating memorable experiences with friends Our mission is to celebrate these relationships by providing high-quality drinks in a welcoming environment, served by our dedicated staff We are inspired by the joy that comes from sharing moments over a cup of coffee, making every visit a delightful experience for you and your loved ones.
2.2 Values That Make The Coffee House Brand
The Coffee House's brand foundation is rooted in its mission to "Deliver Happiness," emphasizing the importance of sincerity and respect from employees towards customers Each visitor is greeted with joy, fostering personal growth and encouraging them to uplift others daily The Coffee House is committed to contributing positively to the community and society as a whole.
INTERESTED: As a brand associated with Vietnamese coffee beans, The
Coffee House prioritizes product quality and customer experiences, ensuring that every product and campaign centers around people With customers, employees, and the community at the core of their decisions, Coffee House believes that attention to emotions and the smallest details empowers them to positively impact young Vietnamese individuals.
The Coffee House, a dynamic young brand, is dedicated to continuous innovation and creativity, crafting unique coffee flavors that resonate emotionally and spiritually with customers The brand aims to leave a lasting impression and establish a strong presence in the Vietnamese market.
At The Coffee House, individuals with shared values collaborate passionately towards achieving significant goals Each day spent with Nha is filled with opportunities for learning, new experiences, and embracing challenges As you embark on your next journey, The Coffee House is dedicated to supporting you in nurturing your dreams and remaining steadfast in your pursuit of success.
Strategy objectives for the first year
The Coffee House aims to enhance customer convenience and speed with its first line of packaged products After a year of evaluation and measurement, the company has established strategic objectives to achieve these short-term goals.
By July 2022, the goal is to achieve a break-even point and secure a profit margin of 5% Additionally, it is projected that by the end of 2022, the "packaged milk tea" product will represent 8% of the company's total market share.
In-store: Sold 50,000 products every quarter in more than 180 stores of the company.
Social media and App: Reached 700,000 likes on the Facebook fan page and daily has 10,000 visits to The Coffee House's application.
SWOT & MACRO-ENVIRONMENT ANALYSIS
SWOT Analysis
The Coffee House prioritizes customer understanding, fostering a polite and friendly brand image They consistently express gratitude and offer apologies at appropriate moments, ensuring a delicate approach to customer interactions.
At our company, we prioritize treating both customers and employees like family, offering competitive salaries and benefits We ensure that rewards and consequences are transparent and based on individual effort, fostering loyalty and commitment among our team members.
The menu has a variety of drinks to meet all customers' needs, in addition to more food for customers to choose from Drinks taste delicious, meticulously prepared, eye-catching.
The Coffee House offers a homely atmosphere with warm yellow lighting, spacious seating, and a thoughtfully designed layout that caters to customers' working needs Every detail, from the height of tables and chairs to the selection of music, is meticulously planned With strong WiFi available, it is an ideal spot for studying and working, and the restrooms are consistently maintained for cleanliness.
The service attitude of the staff is enthusiastic and attentive Always deliver the best customer experience.
The Coffee House has innovatively launched its own mobile application, allowing customers to earn points with each transaction For every 20 points accumulated, customers can enjoy a complimentary drink or a 10% discount This initiative enhances customer care and streamlines the brand's operations.
The Coffee House has an imperfect point that is the menu is diverse but still nothing really special Customers come just because they like the space in the shop.
Having many branches makes it difficult to manage the quality of each store If one store loses its reputation, it will affect other stores.
Became a coffee empire due to the wobble of a 20-year empire in the Trung Nguyen industry Expanding the store system to more provinces and cities increases brand awareness.
Increased app usage and online sales during the epidemic season In addition, The Coffee House has also launched many new products to help retain customers.
Through its business flexibility, The Coffee House was able to successfully turn the situation of having to close the entire store into a new business opportunity on the mobile platform.
Protecting drinks and food ensures customer satisfaction in all stores.
Training employees to meet standards requires significant time and resources, yet their short tenure can complicate task and skill synchronization across the organization.
Effective management of warehouses and supply chains is crucial for preventing material damage and shortages Accurate calculations of raw material quantities and storage durations are essential Additionally, clearly identifying the sources of goods is vital to maintain a smooth supply chain, particularly for chain stores such as The Coffee House.
An increasing number of coffee brands in the form of F & B with fierce competition.Big and powerful rivals such as Trung Nguyen, Highland,
The COVID-19 pandemic significantly impacted business operations, leading The Coffee House to temporarily close several locations With high costs associated with opening new stores and an average pricing strategy, the inability to attract customers could result in insufficient revenue to offset losses.
Utility utilities are simple to use.Preparing for it takes a long time.
Environmental protection, because there are no plastic cups or straws The whole packaging is made of paper, safe and environmentally friendly.
Because it is compact and convenient, it can be taken anywhere, including places where there is no store of The Coffee House.
Because of its beautiful and delicate design, it can be used as a gift for friends, colleagues, The Coffee House followers, and so on.
The Coffee House brand is a reputable brand with a large number of loyal customers, as well as proven product and service quality.
Long-term use, easy to maintain.
The price is suitable for all customers.
Because this is a new entrant into the school of instant milk tea, the manufacturers do not have much experience.
Product flavors can be altered to suit an individual's preparation.
Broaden the field and increase the potential for new customers.
The Covid-19 pandemic has led to a growing demand for safety and convenience, making instant milk tea a popular choice for customers who prefer to stay at home and minimize contact with others.
There are not many competitors in the consumer market, with little competition, so The Coffee House's instant milk tea production will have a good opportunity to penetrate this market.
Instant milk tea is not really popular with everyone, so it will be difficult to market and attract customers.
There is little experience with dissolving products.
Improve product quality to compete with strong and experienced competitors like Hillway, NESTEA, Birdy, etc.
Micro-Environment Analysis
The Coffee House stands out as a leading coffee service brand in Vietnam, offering a luxurious experience at affordable prices This appealing combination has drawn a significant customer base Committed to delivering exceptional service, The Coffee House prioritizes the values that customers seek.
The Coffee House staff is expertly trained in service skills, focusing on delivering exceptional value and ensuring customer satisfaction Their commitment to providing a superior service experience is complemented by professional uniforms that reflect the brand's character and professionalism.
The beverage market in general and the coffee market, in particular, have a strong attraction, creating a competitive market, promoting the development of brands.
Coffee House competes directly with major brands like Highlands, Starbucks, and Trung Nguyen Legend It offers a luxurious and spacious environment, providing a significant advantage over its competitors, while maintaining reasonable pricing.
The Coffee House faces indirect competition from two key product lines: first, alternative beverage options such as Koi, Tocotoco, The Alley, and Bobabop; and second, other drink brands including C2, Number 1, Coca-Cola, and Pepsi.
The Coffee House attracts customers who appreciate the rich flavor of Vietnamese coffee and support local brands Its inviting atmosphere appeals to both tourists and locals seeking a comfortable space to study, work, or socialize with friends.
Coffee House coffee service are the customers that the brand wishes to bring the best value.
Macro-Environment Analysis
Vietnam is a country with a young population structure with an active lifestyle Therefore, F&B not only meets physiological needs but also meets social needs and more.
The Coffee House is not only an F&B brand but also a "human brand." The Coffee House appreciates customer satisfaction in terms of taste, space, quick and convenient service.
Vietnam's economy is developing and has a certain position, being one of the most dynamic countries in the Asia Pacific.
Economic development in Vietnam enhances the quality of life, resulting in a growing demand for food and entertainment The Coffee House has become a popular choice among customers, offering delicious coffee, a comfortable atmosphere, and affordable prices.
Coffee has evolved into a significant aspect of Vietnamese culture, where people savor its unique flavors in their own style Today, visiting a coffee shop transcends mere beverage enjoyment; it serves as a venue for socializing, family gatherings, and finding a comfortable space to relax, study, or work.
The Coffee House stands out among local brands by not only providing high-quality coffee but also delivering convenient services tailored to the preferences and culture of the Vietnamese people.
Modernization trends are developing in Vietnam Commonly used social apps Therefore, the need to use supporting devices such as WiFi, electrical outlets is almost everywhere.
The Coffee House provides customers with a convenient and comfortable space to meet the needs of using technology devices for their purposes such as studying and working.
People are drawn to open, airy spaces adorned with lush greenery, which evoke a sense of comfort and tranquility Additionally, many consumers prioritize green consumption as a means to minimize plastic use and safeguard the environment.
The Coffee House's spatial design creates a comfortable and inviting atmosphere for customers, emphasizing a connection to the environment The brand prioritizes eco-friendly materials, utilizing glass and stainless steel to promote sustainability.
The political-security situation is still stable, the operating mechanism: the policy of the Communist Party of Vietnam.
The legal system is increasingly being adjusted to suit the current economy, promoting the development of economic sectors, especially the service industry.
In addition, the stability of political relations between Vietnam and other countries will help create a premise for The Coffee House to develop and expand its brand.
STP STRATEGIES
Income: financial dependence or < 5 million per month.
Georap hic Living in cities and provinces with branches of The Coffee House in
Often interested and want to try new menu items.
Pay attention to the space of the shop so that they can take pictures or study in group.
Likes sweet drinks such as fruit tea, milk tea, and ice blended.
The majority will pay attention to the price of the product.
Often interested and want to try new menu items.
Pay attention to the space of the shop to be able to work and relax.
Likes sweet drinks such as fruit tea, milk tea, ice blended Most are also interested in coffee.
The majority will pay attention to the price and quality of the product.
Usually will choose their favorite drink, familiar taste, little change.
Pay attention to the space of the shop to be able to relax and meet.
Interested in the taste of coffee and healthy fruit drinks.
The majority will pay attention to the quality of the product.
Behavioral Less need for help and advice from staff
Often use incentives when buying products
Less need for help and advice from staff
Often use incentives when buying products
Need help and advice from staff However, the ordering was quick.
Most rarely use incentives when buying products.
The Coffee House primarily targets vibrant young individuals, focusing on two key segments: students and office workers These customers seek fresh experiences and are in search of ideal environments for studying, working, and socializing with friends.
From the very beginning, The Coffee House's goal is to bring a luxurious experience to customers at an affordable price.
The Coffee House is a service brand dedicated to offering high-quality coffee and beverages, along with reliable service at affordable prices for a wide range of customers It aims to create a comfortable environment that evokes a sense of "home," serving as a welcoming space for relaxation, conversation, and a break from the daily hustle.
MARKETING MIX STRATEGIES
Product strategy
The Coffee House has launched a new line of instant milk tea designed specifically for young people, including students and office workers, who value convenience This product features tea leaves sourced from The Coffee House's own farm in Cau Dat, Lam Dong, ensuring a rich flavor and delightful aroma Produced using modern techniques, the instant milk tea offers quality and taste that meets customer expectations With just three minutes needed to prepare, customers can enjoy their favorite milk tea flavors at home, fulfilling the essential criteria of speed, quality, and taste.
To stay competitive in the market, The Coffee House introduces unique, brand-specific offerings and popular products that cater to customer preferences, particularly in the milk tea segment.
Experience the rich flavor of The Coffee House's instant milk tea, ready in just 3 minutes Sourced from pure tea leaves cultivated on The Coffee House's farm in Cau Dat, Lam Dong, our tea undergoes high-tech processing and meticulous ingredient selection to ensure hygiene and safety for consumers Enjoy a more concentrated and smoother taste compared to other instant milk teas available in the market.
The Coffee House's instant milk tea has a delicate, refreshing exterior and a youthful and dynamic feeling for users Each package is individually wrapped and carefully packed.
For just 8,500 to 10,000 VND per pack, customers can enjoy a delicious cup of The Coffee House's milk tea The convenient and lightweight packaging makes it easy to take on the go or to gift to friends and family.
Baked OolongMilk Tea has a rich taste from the richly baked oolong tea background, mixed with a rich, aromatic milk flavor.Black Bubble 200g/box Black bubble milk tea has a
(includes milk tea powder and bubble) whole-leaf black tea and full- fat milk that has been perfectly balanced, with crispy white pearls added.
The black tea latte has a delicate taste, with a combination of a mild black tea flavor with fresh milk, with a hint of a greasy latte.
The Coffee House instant milk tea is thoughtfully packaged in eco-friendly paper boxes, featuring multiple small packages that safeguard the product from damage during transportation and storage This compact design not only makes the product lightweight and easy to handle but also enhances its appeal to customers, ultimately facilitating sales and saving time and money in logistics.
The Coffee House features a vibrant design primarily in brown, orange, and beige tones, reminiscent of the rich colors of milk tea This fresh and dynamic aesthetic appeals to the tastes of young consumers Additionally, the packaging is adorned with illustrations, allowing customers to easily visualize and select their preferred products.
The Coffee House enhances brand recognition by maintaining its name and logo on new products, while also printing product names beneath the logo to facilitate easy identification and selection for customers.
Price strategy
The Coffee House strategically targets students and office workers by offering products priced between 70,000 VND and 80,000 VND, aligning with the income levels of its primary customers The brand emphasizes quality and value, which play a crucial role in its pricing strategy.
NAME OF PRODUCT WEIGHT AND
200g/box - 25g x 8 pack (includes milk tea powder)
200g/box - 25g x 8 pack (includes milk tea powder)
(includes milk tea powder and bubble)
To successfully enter new markets and compete with other brands, implementing a low pricing strategy can effectively attract more customers and boost product consumption.
NAME OF PRODUCT COST PENETRATION PRICING
Tea 70.000 VND/box 60.000 VND/box
Macchiato 75.000 VND/box 65.000 VND/box
Black Bubble Milk 80.000 VND/box 70.000 VND/box
Place strategy
The Coffee House distinguishes itself in the market by prioritizing convenience and strategic locations, with over 180 stores primarily situated in major cities like Ho Chi Minh and Hanoi Its stores are designed to be spacious and airy, making them easily accessible for customers The Coffee House aims to expand its presence to all 63 provinces and cities in Vietnam, sharing its brand and story with the developing countryside and ensuring that every customer can enjoy the rich experience of Vietnamese coffee culture.
In the first year, The Coffee House will distribute new products across most of its stores, with direct sales in major cities like Hanoi, Da Nang, and Ho Chi Minh City through its delivery app Stores will receive a selection of goods for display and market evaluation, allowing the best-performing locations to continue selling the most popular items.
Promotion strategy
Social networking sites like Facebook, Instagram, and TikTok boast tens of millions of users, and during the ongoing Covid-19 pandemic, their user engagement has surged significantly This presents a valuable opportunity for The Coffee House to promote its products through targeted advertisements on these platforms By leveraging the vast audience, The Coffee House can effectively share its offerings with a wide range of consumers.
In today's digital landscape, customers often find it challenging to purchase products solely based on social media advertisements, as these ads are typically segmented by interests, searches, and default suggestions To enhance product visibility and reach a broader audience, The Coffee House must invest in advertising efforts.
In today's 4.0 technology era, influencers and KOLs play a significant role in shaping societal trends To effectively promote its new product line, The Coffee House can collaborate with food and lifestyle influencers who have a substantial youth following This strategy aims to leverage their insights and reviews, reaching a wider audience through their trusted recommendations.
Hand out samples to accompany each purchase
The Coffee House is introducing a product that, while not new to the market, is a fresh addition to their offerings To enhance customer convenience and encourage quick enjoyment of their milk tea, they are implementing a promotional program that includes giving away samples for 3-4 weeks, depending on sales velocity Customers who spend over 99,000 VND will receive a sample package from the newly released product set, providing them with an opportunity to experience the product while simultaneously boosting sales.
Build images for new products
In a competitive market, the branding and messaging of a product play a crucial role in attracting customers In response to the Covid-19 pandemic, our product was developed to offer convenience, allowing customers to savor the delightful taste of milk tea without the need to travel far.
The Coffee House will create engaging short viral videos and promotional images to enhance product visibility in the competitive market, ensuring that the product's story reaches all customers through effective advertising.
Offering products at a trial price of 60,000 VNĐ for a limited period of 3-4 weeks is an effective promotional strategy to encourage customers to try new items This initiative aims to enhance customer experience while simultaneously gathering market insights to develop a long-term marketing strategy tailored to the product.
The Coffee House will apply different types of discounts at different special times during the first year.
In November and December, two significant holidays, Vietnamese Teachers' Day and Christmas, provide a chance to express gratitude to educators, reconnect with friends, and enjoy family gatherings To celebrate these occasions, The Coffee House is offering a special discount on new products for purchases made through their app using a designated code.
"QUATANG" The Coffee House's self-brewed milk tea not only brings convenience to users but can also become a meaningful meeting gift to others.
Tet is a time for sharing good fortune, and The Coffee House embraces this spirit by offering special incentives Customers who purchase more than two boxes of homemade milk tea, symbolizing the New Year greeting "SUNGTUC," can enjoy these exclusive offers as a way for The Coffee House to wish them well in the new year.
People strategy
The Coffee House not only gives customers a comfortable space but also brings the warmth and dedication of the staff, making customers feel like
At "Home," our service staff is dedicated to thoroughly understanding new products to deliver accurate and prompt information to customers We not only provide guidance on product flavors and pricing but also explain their uses, helping customers visualize the products more effectively.
The Coffee House's customer care team is committed to addressing inquiries and gathering feedback on new products, ensuring a high level of service both in-store and online.
ACTION PLAN
Advertise new products on The Coffee
House website and social networking sites
Building content and SEO techniques for the website Help potential customers when they search, they will see a new product of The Coffee
Build images for new products
Display new products at the order counter, staff introduce new products to customers when ordering
Hand out samples to accompany each purchase
Discount when buying through The
Coffee House app with code
Promotional prices apply during Tet holidays
CONCLUSION
The Coffee House, established in 2014, is a coffee chain that prioritizes service and customer experience, having evolved its offerings over time With over 180 locations nationwide, the majority are situated in Ho Chi Minh City, Hanoi, and key tourist areas Unlike competitors like Highland and Urban Station, The Coffee House is recognized for its medium-priced coffee and consistent quality The brand emphasizes service and customer experience rather than an extensive menu, and despite being relatively new to the market, it continues to innovate and grow.
The Coffee House has introduced an exciting new product line featuring white pearl-baked oolong milk tea, black tea latte macchiato, and pink pearl milk tea, all available in convenient paper-wrapped versions These products, crafted from dried tea blended with milk powder, cater to the needs of urban customers, primarily students, office workers, and the Gen X generation While students and office workers prioritize quality and affordability for quick purchases, the Gen X demographic values product quality and seeks enjoyable experiences Priced between 70,000 and 80,000 VND, each box contains 8 packs of 15g, aligning perfectly with the target market's expectations Available at all The Coffee House locations in Ho Chi Minh City and Hanoi, as well as through the company's app, these new offerings are supported by diverse promotions designed to attract and engage customers.
In response to the Covid-19 pandemic, consumers are seeking quick and convenient products that meet their needs The Coffee House has introduced a new product line to cater to these demands, including the highly anticipated "Packed Milk Tea." This strategic move aims to allow customers to enjoy the signature flavors of The Coffee House from the comfort of their homes.
1 https://www.thecoffeehouse.com/pages/cau-chuyen-thuong-hieu
2 https://webviptop.com/ngan-sach-quang-cao/#:~:text=M%E1%BB%99t%20s%E1%BB
%91%20doanh%20nghi%E1%BB%87p%20t%C3%ADnh,s%C3%A1ch%20qu
%E1%BA%A3ng%20c%C3%A1o%20ti%E1%BA%BFp%20th%E1%BB%8B.
3 https://123docz.net/document/5858281-marketing-dich-vu-marketing-7p-ca-phe- thecoffeehouse.htm
4 https://123docz.net/document/4991933-tieu-luan-quan-tri-thuong-hieu-the-coffee- house.htm
5 https://www.thecoffeehouse.com/blogs/news/tra-sua-nha-dung-gu
The launch of instant milk tea products will take place across chain stores, the official website of The Coffee House, and the app It is anticipated that daily sales will reach 500 boxes.
Production costs, shipping costs will account for 40% of the product price :
Expected product profit after 1 year of selling new products:
Expected profit = Expected revenue – Expected cost
In marketing, promotion strategies represent a substantial portion of a business's budget To establish an appropriate budget for The Coffee House's new product, the costs will be determined by the anticipated profit.
Production costs, transportation costs account for 40% of the product cost:
Expected product profit after 1 year of new product sales:
Expected Profit = Expected Revenue - Expected Cost
With an expected return of less than $5 Million, the advertising marketing budget will be at 8% including website advertising, social media, promotions, giveaways, and other expenses
The cost for advertising on Social Media is 45%: 315,360,000 VND
The cost for the promotion is 40%: 280,320,000 VND
Spending on gifts is 5%: VND 35,040,000