INTRODUCTION
Company Description
Founded in 2010, Net Viet Company is located at 14 Nguyen Thi Dieu Street, District 3, HCMC, with its factory situated at 143 Vo Van Hat, District 9, HCM City The company specializes in manufacturing and trading coffee under the Mountain Coffee brand, offering a variety of product lines including Traditional Mountain Coffee No1, No2, No3, Culi Mountain Coffee, Experience Mountain Coffee, Brown Espresso Mountain Coffee, and Gold Espresso Coffee With the slogan "Essence from the High Mountain," Net Viet Company targets B2B clients such as Saigon Coop, Maxi Mark, Big C supermarket systems, office coffee shops, convenience stores, specialty stores, and Mobile Cart Coffee systems.
Net Viet Company, a relatively young player in the coffee industry, specializes in manufacturing, trading, and processing coffee Despite its potential, the company struggles with a lack of clear initial development, specific business plans, and long-term strategies With limited experience in the coffee market and challenges in workforce capability and production quality, Net Viet faces significant difficulties, particularly after being established during an economic crisis As a result, the company is currently navigating tough competition and market development issues within Vietnam's coffee sector.
To enhance market share and navigate the economic crisis, Net Viet Company plans to restructure by 2015, projecting a 54% increase in coffee sales compared to 2012 The Mountain Coffee brand aims to be featured in major supermarket chains, specialty stores, convenience stores, and upscale coffee shops Additionally, the Mobile Coffee Cart system is expected to establish 50 locations in the Ho Chi Minh City market by the end of 2015.
To meet its objectives, Net Viet Company has strategically allocated its human resources, power, energy, time, and funds to meticulously develop a comprehensive business plan In an effort to enhance this plan, I have selected the study "Marketing Plan for Mountain Coffee of Net Viet Company Till 2015" as my final project, aiming to provide valuable insights and suggestions for improvement.
Problem Statement
The coffee manufacturing, trading, and processing sectors in Vietnam have experienced significant growth recently, attracting both domestic and foreign companies This surge is largely due to government incentives for agricultural investment and Vietnam's rapid economic development, making it one of the most appealing markets globally The number of enterprises involved in coffee production and processing has nearly doubled, rising from 500 in 2007 to almost 1,000 by 2010 (Vicofa, 2010) Additionally, 26 global coffee buyers have established representative offices in Vietnam, highlighting the country's increasing importance in the international coffee market (Vicofa, 2011).
Net Viet Company, newly established during an economic crisis marked by high inflation, volatile markets, and rising unemployment, faces significant challenges and pressures To survive and prepare for future growth, the company must focus on enhancing product quality, offering reasonable prices, and improving services, particularly in human resource development A key strategy for Net Viet's development involves product innovation and market expansion in Ho Chi Minh City An effective marketing plan for Mountain Coffee is crucial for increasing operational efficiency, capturing greater market share, and establishing a strong coffee brand image in the Vietnamese market.
Therefore, the following questions must be asked:
1 What are the strengths, the weaknesses, what opportunities and risks of Mountain coffee need to be found, as well as limited weaknesses and exploited maximize the opportunities and strengths?
2 What are marketing strategies, marketing plans that company need to build in next 4 years, from 2012-2015?
Objectives
This study aims to create a comprehensive marketing plan that will serve as a strategic roadmap for Net Viet Company, outlining specific guidelines to achieve its business development objectives in Ho Chi Minh City over the next four years, from 2012 to 2015.
This project is mainly for the operation of Net Viet Company in Ho Chi Minh City from
From 2012 to 2015, the company aims to provide convenient, high-quality coffee at reasonable prices, complemented by excellent customer service The primary focus of this initiative will be on roasted and ground coffee, intentionally excluding production logistics and instant coffee offerings.
The study is based on both types of data namely primary and secondary data
In-depth interviews were conducted with Marketing Manager Nguyen Van Dung, Director Nguyen Bao An, and several functional managers at Net Viet Company, alongside feedback from 100 customers, to gather insights into the company's current status and their evaluations of the prevailing industry environment.
Secondary data was gathered from a variety of sources, including macro and industry analysis reports, historical databases of the coffee market, company reports, internet research, government publications, and newspapers.
Once the data has been collected, the researcher has used an inductive pattern to analyze the data collected by means of primary survey and secondary sources
The data analysis basically consisted of the following components:
Understanding the macro-economic environment in Vietnam, particularly in Ho Chi Minh City, is crucial for grasping the growth and development of the country's economy and coffee market.
The second component covers an in-depth internal and customers analysis of Net Viet Company, and then writing out SWOT for the company itself
The third component offers a qualitative analysis of the comprehensive marketing plan for Net Viet Company, covering the years 2012 to 2015 It details the action plan and includes a final assessment and monitoring of the marketing strategy's effectiveness.
The structure of the study is as follows:
The first chapter presents the overall introduction of the study including company description, problem statement, objectives, scope of study, methodology and structure of the study
The second chapter provides a comprehensive analysis of the current macroeconomic landscape and the coffee market in Ho Chi Minh City, highlighting both opportunities and threats for coffee companies It specifically assesses the strengths and weaknesses of Net Viet Chapter three outlines the marketing plan for Mountain Coffee by Net Viet Company, covering the period from 2012 to 2015.
The fourth chapter shows the detailed action plan for Net Viet Company, including sales forecast, marketing plan, marketing expensive and marketing monitoring/assessment
The final chapter will make final conclusion and recommendation for the topic.
Methodology
The study is based on both types of data namely primary and secondary data
In-depth interviews were conducted with Marketing Manager Nguyen Van Dung, Director Nguyen Bao An, and several functional managers at Net Viet Company, along with feedback from 100 customers, to gather insights on the company's current status and their perceptions of the industry environment.
Secondary data was gathered from various sources, including macro and industry analysis reports, historical coffee market databases, company reports, research studies, government publications, and newspapers.
Once the data has been collected, the researcher has used an inductive pattern to analyze the data collected by means of primary survey and secondary sources
The data analysis basically consisted of the following components:
Understanding the macroeconomic environment in Vietnam, particularly in Ho Chi Minh City, is essential for grasping the growth and development of the country's economy and coffee market.
The second component covers an in-depth internal and customers analysis of Net Viet Company, and then writing out SWOT for the company itself
The third component provides a detailed qualitative analysis of Net Viet Company's marketing plan from 2012 to 2015, outlining a comprehensive action plan It also includes the final monitoring and assessment of the marketing strategy.
The Project Structure
The structure of the study is as follows:
The first chapter presents the overall introduction of the study including company description, problem statement, objectives, scope of study, methodology and structure of the study
The second chapter provides a comprehensive analysis of the current macroeconomic landscape and the coffee market in Ho Chi Minh City, highlighting both opportunities and threats for coffee companies It specifically assesses the strengths and weaknesses of Net Viet in this context Chapter three outlines the marketing plan for Mountain Coffee, detailing strategies and objectives set by Net Viet Company for the period from 2012 to 2015.
The fourth chapter shows the detailed action plan for Net Viet Company, including sales forecast, marketing plan, marketing expensive and marketing monitoring/assessment
The final chapter will make final conclusion and recommendation for the topic.
ENVIRONMENTAL ANALYSIS
External Environment Analysis
2.1.1 Macro Level: SLEP Model Analysis
The agriculture industry, particularly the coffee market, is significantly influenced by various macro-environmental factors, which can serve both as opportunities and threats Key elements include social, legal, economic, political, and technological factors (SLEPT), all of which play a crucial role in shaping industry dynamics and market conditions.
Vietnam, with a population exceeding 86 million and two-thirds under the age of 30, boasts a substantial young workforce The nation has shown consistent progress in essential human development indicators, including literacy rates above 90%, advancements in health, increased life expectancy, and significant poverty alleviation This motivated and adaptable workforce is characterized by a strong work ethic, making Vietnam an attractive destination for investment and economic growth.
Table 2.1: Population – Viet Nam from 2003 – 2010
Source: BMI, HCM city Statistical Yearbook, 2008
Vietnam maintains a competitive edge in the region with its low labor costs, evidenced by a Gross Net Income per capita of just $1,100 in 2010, significantly lower than Singapore's $38,000 and Thailand's $3,850 Additionally, there is a notable trend of students increasingly opting for agriculture and economics majors over technology and manufacturing at universities, reflecting shifting educational priorities.
Vietnam's per capita coffee consumption stands at just 0.83 kg per person per year, significantly lower than Brazil's 5.2 kg, the European Union's 4.83 kg, and the United States' 4.13 kg, according to the International Coffee Organization (2006).
Figure 2.1: Coffee consumption of the top 10 countries in the world
Norway Finland Denmark Sweden Holand Swiss Germany Austria Belgium France
According to USDA statistics from 2008, Vietnam's per capita coffee consumption is significantly lower than that of the world's top ten coffee-consuming nations, with Norway leading at over 10 kg/person/year and Vietnam presenting a unique opportunity for growth The country's young and dynamic population, combined with a still-developing coffee market, offers substantial potential for both domestic and foreign companies looking to expand in this sector.
Vietnam's market is categorized into three primary regions: the North, Central, and South In the North and Central regions, consumers typically prefer tea over coffee, often gifting tea during festivals and New Year celebrations Conversely, in the South, coffee is regarded as an essential daily beverage, presenting significant growth opportunities for companies looking to enter and develop in this region The South is recognized as a crucial area for brand expansion in Vietnam and serves as a foundation for future growth.
Ho Chi Minh City, with its population exceeding 8 million, represents a significant consumption market, offering substantial opportunities for growth in the coffee industry and specifically for the development of Net Viet Company.
The social factors in Vietnam are highly favorable, benefiting not only the agriculture sector but also various other industries These positive social dynamics are expected to significantly influence the future growth and development of Net Viet Company.
The Circular 01-06:2009/BNNPTNT, issued by the Ministry of Agriculture and Rural Development on June 1, 2009, outlines essential hygiene and food safety (FSH) conditions and measures to protect consumer health during food preparation and use Coffee processing and trading companies are required to adhere to this Circular and comply with the regulations established by the Ministry Additionally, they must obtain certification of eligibility and food safety in accordance with Decision No 11/2006/QĐ-BYT from the Minister of Health, dated March 9, 2006.
In conclusion, this legal improvement really means for coffee companies, especially infancy company as Net Viet, it helps create a transparent market, and above all a fair playground for everyone
Vietnam joined the World Trade Organization (WTO) in 2007, which has significantly improved its economic conditions by facilitating easier import and export of goods However, despite these advantages, Vietnam continues to encounter various challenges in the global trade landscape.
Despite the global economic crisis from 2007, which significantly affected economies worldwide, Vietnam's GDP continued to grow at an average rate of 6.5% annually The country's economic structure remains robust and has shown rapid recovery, particularly in the manufacturing and agricultural sectors Although the domestic coffee industry faced challenges due to the crisis, coffee consumption has still increased by 2% each year, indicating stable growth and promising prospects for future coffee production and trade.
In 2010, Vietnam experienced a significant inflation rate of 17.5%, which, coupled with restrictive credit policies, hindered competition and limited opportunities for production and sales in the coffee industry, particularly affecting small and medium enterprises Additionally, high interest rates ranging from 14% to 20% per year exacerbated the challenges for these businesses, making it increasingly difficult for them to expand their manufacturing operations.
The increasing volatility of market exchange rates, particularly the significant fluctuation of the US Dollar against the Viet Nam Dong, which reached approximately 8 percent in 2010, has greatly impacted the economy This instability has notably diminished the competitiveness of key sectors, especially in coffee production, trading, and agriculture.
The tightening of credit and financial policies by domestic banks has created significant challenges for companies in the economy, particularly in the manufacturing and agricultural sectors Despite these difficulties, per capita income has risen to nearly $1,200, which plays a crucial role in boosting overall consumption and benefiting the agricultural products industry.
Vietnam's economy is becoming more integrated into both the regional and global markets, leading to faster and more dynamic growth with numerous development opportunities However, this progress also brings challenges, particularly in the manufacturing and agricultural sectors, which are still in their early stages and facing increasingly fierce competition.
Table 2.2: Viet Nam GDP from 2003 - 2010
Source: BMI, HCM city Statistical Yearbook, 2005
Internal Analysis
2.2.1 Company Customers Analysis: Through the survey information on the market, through the production and business activities during nearly two years, as well as information on the market that the company has been, as well as lessons, experiences in the market recent years To meet the increasing demands of consumers, the changing habits of consumers, and to meet differences demand of customers in the market, company needs to diversify products with many types of goods and quality of products, well-design packaging, reasonable prices, after-sales service quality, etc…So, from these factors Net Viet Company has conduct researched on the market and sent out different product lines to serve and meet the requirements of the market.
Mountain Coffee, a brand under Net Viet coffee company, embodies the essence of high-altitude flavor with its slogan, "Essence from the high mountain." As a newcomer to the coffee market, established nearly two years ago, this small company specializes in manufacturing, trading, and processing coffee Currently, Mountain Coffee offers a diverse portfolio of product lines.
Traditional Mountain Coffee No1 caters to everyday consumers and small coffee shops, offering high-quality, clean coffee at reasonable prices, complemented by excellent service.
Traditional Mountain Coffee No2 caters to everyday customers and small to medium-sized coffee shops, offering high-quality, clean coffee at reasonable prices while ensuring excellent service.
Traditional Mountain Coffee No3 caters to medium and high-end customers, including coffee shops, restaurants, resorts, supermarkets, convenience stores, and specialty stores We prioritize delivering clean, high-quality coffee at reasonable prices, complemented by excellent customer service.
Culi Mountain Coffee caters to premium coffee shops, restaurants, hotels, resorts, convenience stores, specialty shops, and supermarkets, targeting consumers who appreciate high-quality coffee as gifts or presents We prioritize delivering clean, top-notch coffee at reasonable prices, complemented by excellent customer service.
Experience Mountain Coffee caters to large coffee shops, restaurants, hotels, resorts, specialty stores, and supermarkets, offering a unique blend of foreign flavors Our commitment to quality ensures clean, high-grade coffee at reasonable prices, complemented by excellent service.
Mountain Coffee Espresso Brown caters to hotels, luxury restaurants, resorts, convenience stores, specialty shops, large coffee outlets, and supermarkets We prioritize delivering high-quality, clean coffee at reasonable prices, complemented by exceptional service.
Mountain Coffee Espresso Gold caters to hotels, luxury restaurants, resorts, convenience stores, specialty shops, major coffee outlets, and supermarkets We prioritize delivering high-quality, clean coffee at reasonable prices, complemented by exceptional service.
In conclusion, Net Viet Company has diversified its product offerings to cater to a wide range of customers, enhancing its competitiveness in the coffee market By prioritizing product quality, excellent service, and reasonable pricing, the company effectively meets the growing demands and requirements of its clientele.
Founded in 2010, Net Viet Company is a relatively young player in Vietnam's coffee industry, with a capital of six billion VND Despite having a limited workforce, the company boasts active and eager employees who thrive in a competitive yet responsible environment Net Viet emphasizes a culture of fairness and openness, fostering an inclusive atmosphere that encourages collaboration and growth This commitment to employee well-being has enabled the company to rapidly navigate the challenges of its early years, positioning it for future opportunities and success.
Net Viet Company boasts a youthful and highly educated workforce, characterized by enthusiasm, diligence, and a strong sense of responsibility The leadership is committed to fostering a collaborative environment where staff can grow together, promising to share profits and embrace modern technologies in business communications, sales, marketing, and management This approach aims to enhance work efficiency and prepare the team for upcoming opportunities and challenges The current human resources structure includes a director, a sales manager with 15 salesmen, a production manager with 6 production staff, a marketing manager with 6 marketing staff, and a secretary general, alongside additional personnel and occasional staff All employees hold university degrees or higher, positioning Net Viet Company for future development and success.
Founded in 2010, Net Viet Company is a young player in Vietnam's coffee industry, particularly in Ho Chi Minh City Initially, the company operated with a small team, including a director, production manager, marketing manager, and sales manager, totaling just 16 employees In 2011, they sold 180 tons of coffee to various clients, including coffee shops, restaurants, and supermarkets However, the company faced challenges such as a lack of mobile coffee cart systems, sales policies, promotional programs, and a defined brand identity The workforce is predominantly young and inexperienced, which has hindered market coverage in Ho Chi Minh City Additionally, the brand's market segmentation and positioning remain unclear, with its image still in the developmental stage To address these issues, Net Viet Company is implementing training programs to enhance market knowledge and skills, preparing for future growth and development.
Net Viet Company focuses on establishing a strong brand image through high-quality clean coffee, exceptional service, competitive pricing, and effective after-sales support The company prioritizes brand development and implements strategic plans for wholesalers, distributors, and retailers to enhance distribution channels and market reach In summary, Net Viet Company has a well-defined future development strategy that prepares for upcoming opportunities and challenges in the coming years.
2.2.6 Company’s Key Implementation Factors in Next Years
Understanding the coffee market in a thorough and details, learned from experiences through various marketing programs
Created a customer information system, customer data and adequately
Thereby the company can identify the target customers, the distribution being as well as market distribution channels
Analysis and carefully choose to roll out different product lines because this leads to better awareness of customers about the products
Attractive profits for wholesalers, retailers, distributors, agents
Understanding coffee product in details and complete
Built a strong distribution system, as well as control the distribution systems
In conclusion, internal factors within an enterprise significantly influence its operations and success Key elements such as human resources, organizational culture, product attributes, business limitations, and strategic considerations play a crucial role in determining a company's performance To ensure future growth and success, businesses must analyze their strengths and weaknesses, allowing them to develop effective plans, policies, and strategies Additionally, it is essential for enterprises to identify and implement appropriate solutions and activities to address operational challenges and foster sustainable development.
MARKETING STRATEGY FROM 2011-2015
Marketing Objectives
After a comprehensive analysis of both external and internal factors influencing the project, along with an evaluation of Net Viet Company's strengths, weaknesses, opportunities, and challenges, the company has established clear targets for implementation This study aims to clarify the marketing strategy objectives, enabling the enterprise to gain an overall understanding of the market and formulate effective plans, policies, and strategies for business development.
The specific objectives are as follows:
Create awareness of Mountain Coffee brand on the coffee market, as well as creating awareness about the brand value
Mountain Coffee brand positioning for target customers
In 2012, Mountain Coffee has output will increase to 180 tons / year
Develop a complete sales system, including built up successfully 10 points of Mobile Coffee Cart to the end of 2012
By 2015, the Net Viet Company produce are 332 tons / year
Mountain Coffee will be widely accessible in various retail outlets, including supermarkets, convenience stores, specialty shops, luxury restaurants, and major coffee chains Additionally, by the end of 2015, the brand plans to introduce Mobile Coffee Cart systems to 50 locations, enhancing customer convenience and experience.
Build up brand identity system complete, target customers, market segments
To improve and full of complete the distribution system.
Marketing Strategy
Net Viet Company is implementing a comprehensive four-year marketing strategy aimed at enhancing its understanding of the market landscape and target customer segments This strategic approach will inform critical market decisions, including pricing, packaging design, and promotional programs, aligned with the company's marketing objectives Ultimately, this strategy will equip Net Viet to effectively compete in today's highly competitive market environment.
From the results of the survey was conducted, market segments were divided into two segments as follows:
In the retail segment, a survey was conducted in Ho Chi Minh City using a questionnaire detailed in Appendices 1 and 2 Out of the 100 questions included, feedback was successfully gathered for 80 questions, resulting in an 80% response rate.
Survey feedback indicates that coffee drinkers can be categorized into two groups: those who prioritize health benefits and those focused on price According to Table 3.1, 65% of medium to high-income individuals consume coffee for health reasons, while only 25% of low-income individuals do the same Additionally, 45% of women and highly educated individuals drink coffee for health benefits, compared to 45% of male students and workers Among different age groups, 55% of middle-aged and older individuals prioritize health, whereas 35% of younger drinkers do Furthermore, 65% of consumers seek the best coffee locations, and 40% are open to paying higher prices for quality coffee A significant 70% express interest in quality, flavored, and safe coffee products This data highlights the importance of focusing on health benefits and quality in coffee production and marketing.
Table 3.1: Market Segmentation in Retail Segment
Habit (Price Care) Result from Survey Income Medium & High income
Sexual Female and some official or high
Age Medium old of age and high education
Behavior Choose the best place
65% Any place they want but usually is the popular place
Lifestyles Open mind and ready to pay more to good high quality products
Choose the suitable place with money they have
Benefit Good taste and aroma
Sources: Data of the survey
Net Viet Company is committed to a consumer-oriented approach, aiming to develop programs and policies that effectively satisfy customer needs while planning for future growth The company emphasizes research to create products that align with customer preferences, ensuring high quality, reasonable pricing, and excellent after-sales service Additionally, Net Viet has established strategies and action plans to enhance the competitiveness of its products in the current coffee market.
A recent survey conducted in coffee shops and supermarkets explored consumer preferences regarding branded coffee Participants were asked why they choose to drink coffee from specific brands, whether they would consider switching their coffee choice, and their experiences with changing brands The findings reveal insights into consumer behavior and brand loyalty in the coffee market.
Based on questionnaire results, customers are classified into groups reflecting their preferences and behaviors The survey indicates that 75% of consumers will switch brands if the coffee quality is poor or inconsistent, while 65% will change due to inadequate after-sales service Additionally, 60% of consumers are likely to switch if coffee prices are not competitive, and 70% will do so if promotions and advertising lack appeal The influence of brand loyalty is significant, with 75% of customers willing to change brands due to price fluctuations, quality issues, unsatisfactory after-sales service, unappealing promotions, and a weak distribution network This information is crucial for production companies aiming to compete effectively in the market.
Table 3.2: Market Segmentation in Food Service Segment
Why they want to change
How and when they change
Coffee quality Quality is unstable
75% They will choose other products if they don’t satisfy with quality
Service quality It is not good after sales service
65% Find out other products with high quality and services
Unreasonable price compared with market
60% Looking for other products with suitable, stable quality and price
Promotion of other companies more than attractive
70% Attractive promotion program, reasonable price
Brand Price changes too much
The quality is not stable
After-sales service is not really good
Distribution systems are not strongly, it is difficult to buy products
75% Loss of faith in the product
Customer care is not good
No patient with quality and service
Unable to find out the differences of the products
Sources: Data of the survey
In conclusion, Net Viet Company is poised to enhance its product development and market strategies by focusing on its strengths in specific market segments The company plans to implement customer-centric policies and strategic directions for future growth while prioritizing research to produce high-quality products at competitive prices Additionally, Net Viet will emphasize exceptional after-sales services and attractive promotions to strengthen its brand presence and expand its market reach These initiatives are designed to boost the company's competitiveness in the coffee market, ensuring efficient and successful operations.
Net Viet Company, despite being a newcomer in the coffee market with only two years of operation, aims to establish its brand by focusing on the Ho Chi Minh City market This strategic move is driven by the city's substantial coffee consumption and significant growth potential However, the company faces challenges due to its limited personnel and financial resources compared to more established competitors in the industry.
As a new entrant in the coffee market, our company is strategically focusing on target customers to align with existing businesses during our development phase In the first two years, we will promote Mountain Coffee primarily to high-potential customers in Vietnam, particularly in Ho Chi Minh City Our target audience includes operating supermarkets, convenience stores, hotels, restaurants, and coffee shops, with plans to expand our market reach in the future.
Table 3.3: The List of Current High Potential Target Customers in HCM City
1 Maxi mark Cong Hoa Ho Chi Minh City
2 Maxi mark 3/2 Ho Chi Minh City
3 Big C Hoang Van Thu Ho Chi Minh City
4 Big C To Hien Thanh Ho Chi Minh City
5 Big C An Lac Ho Chi Minh City
6 Big C Mien Dong Ho Chi Minh City
7 Big C Go Vap Ho Chi Minh City
8 Big C Phu Thanh Ho Chi Minh City
9 Metro An Phu Ho Chi Minh City
10 Metro Binh Phu Ho Chi Minh City
11 Metro Hiep Phu Ho Chi Minh City
12 Metro District 12 Ho Chi Minh City
13 Lottle Mart Ho Chi Minh City
14 Sai Gon Coop Phan Van Tri Ho Chi Minh City
15 Sai Gon Coop Quoc Lo 13 Ho Chi Minh City
16 Sai Gon Coop Cu Chi Ho Chi Minh City
17 Sai Gon Coop Hoc Mon Ho Chi Minh City
18 Sai Gon Coop Phu Tho Ho Chi Minh City
19 Sai Gon Coop Rach Mieu Ho Chi Minh City
20 Sai Gon Coop Suoi Tien Ho Chi Minh City
21 Sai Gon Coop Nguyen Anh Thu Ho Chi Minh City
22 Sai Gon Coop Tuy Ly Vuong Ho Chi Minh City
23 Sai Gon Coop Hung Vuong Ho Chi Minh City
24 Sai Gon Coop Binh Tan Ho Chi Minh City
25 Sai Gon Coop Nhieu Loc Ho Chi Minh City
26 Sai Gon Coop Ly Thuong Kiet Ho Chi Minh City
27 Sai Gon Coop Phu My Hung Ho Chi Minh City
28 Sai Gon Coop An Dong Ho Chi Minh City
29 Sai Gon Coop Tan Phu Ho Chi Minh City
30 Sai Gon Coop Quan 9 Ho Chi Minh City
31 Sai Gon Coop Nguyen Kiem Ho Chi Minh City
32 Sai Gon Coop Thang Loi Ho Chi Minh City
33 Sai Gon Coop Phu Lam Ho Chi Minh City
34 Sai Gon Coop Dinh Tien Hoang Ho Chi Minh City
35 Sai Gon Coop Nguyen Dinh Chieu Ho Chi Minh City
36 Sai Gon Coop Hau Giang Ho Chi Minh City
37 Sai Gon Coop Cong Quynh Ho Chi Minh City
38 New World Hotel Ho Chi Minh City
39 Movempick Hotel Ho Chi Minh City
40 Caravelle Hotel Ho Chi Minh City
41 Rex Hotel Ho Chi Minh City
42 Equatorial Hotel Ho Chi Minh City
43 Huu Nghi Hotel Ho Chi Minh City
44 Bong Sen Hotel Ho Chi Minh City
45 Riverside Hotel Ho Chi Minh City
46 Majestic Hotel Ho Chi Minh City
47 Chot Nho Coffee Shop Ho Chi Minh City
48 Window Coffee Shop Ho Chi Minh City
49 Serenate Coffee Shop Ho Chi Minh City
50 May Chieu Coffee Shop Ho Chi Minh City
51 Diem Hen Sai Gon Coffee Shop Ho Chi Minh City
52 G7 Mart Ho Chi Minh City
53 Tien va Loi Mart Ho Chi Minh City
54 Shop & Go Ho Chi Minh City
55 24G Mart Ho Chi Minh City
Sources: Data of the company
Note: There are still a lot of supermarkets, coffee shops, hotels, restaurants, specialty stores, convenience stores and resorts not including in this sheet.
Marketing Mix
Marketing mix analysis provides businesses with a clearer understanding of their strategies and policies, enabling them to assess product alignment with consumer needs and preferences It evaluates whether products resonate with market tastes and determines the effectiveness of distribution channels Additionally, it helps companies analyze market pricing to ensure competitiveness against rivals By examining promotional strategies, businesses can create more appealing marketing campaigns Overall, this analysis aids in developing effective, sustainable strategies for thriving in a competitive market.
The marketing mix provides 4P Strategies including Products, Prices, Places and Promotion which aims at differentiating Net Viet from other competitors in Viet Nam coffee market
Before launching new products, Net Viet Company conducts extensive surveys and testing of competitors' offerings and customer preferences These insights have equipped the company with valuable lessons to enhance its products and cater to the diverse needs of coffee consumers Consequently, Net Viet has organized its manufacturing and product development into three main product groups, ensuring a focused approach to meet varying customer demands in the coffee market.
Table 3.4: Traditional Mountain Coffee No1 + No2 + No3
Mountain Coffee Quality Specification Customers
Good Low & medium price, normal flavor & taste, good packaging design
Using for high quality and healthy
Good Medium price, seductive flavor & taste, good looking packaging design
Using for high quality and healthy
Good Medium & high price, special flavor & taste, special packaging design
Using for high quality and healthy
Sources: Data of the company
Net Viet Company offers a diverse range of products tailored to meet various consumer needs in the coffee market, enhancing competitiveness Their product classification includes Traditional Mountain Coffee No 1, aimed at budget-conscious customers seeking quality at a reasonable price, and Traditional Mountain Coffee No 3, designed for those willing to invest in premium coffee with superior flavor, attractive packaging, and guaranteed safety.
Table 3.5: Culi Mountain Coffee & Experience Mountain Coffee
Mountain Coffee Quality Specification Customers
Excellent High price, special flavor & taste, special packaging design
Using for high quality, healthy and enjoy
Excellent High price, excellent flavor & taste, excellent packaging design
Using for high quality, healthy and enjoy
Sources: Data of the company
Culi Mountain Coffee caters to consumers who favor high-quality flavored coffee, prioritizing exceptional taste and safety Our products are attractively packaged and designed for discerning coffee lovers who value quality over price.
Mountain Coffee offers a premium specialty coffee experience, delivering exceptional flavor and quality that discerning customers will appreciate With a focus on unique taste profiles and attractive packaging design, our coffee stands out in the market We prioritize product safety, ensuring that every cup provides not only great taste but also peace of mind for our consumers.
Table 3.6: Espresso Brow Mountain Coffee & Espresso Gold Mountain Coffee
Excellent Using for high quality, healthy, light, full flavor, aroma and enjoy
Espresso Gold Mountain Excellent Using for high quality,
Coffee healthy, light, full flavor, aroma and enjoy
Sources: Data of the company
Espresso Brown Mountain Coffee offers a delightful selection of high-quality coffee, perfect for gifting and enjoying Known for its gentle flavor and captivating aroma, this coffee appeals to discerning clients while remaining reasonably priced within the market.
Gold Mountain Coffee Espresso caters to high-end clients by offering a luxurious coffee experience that emphasizes enjoyment, flavor, and aroma Their products are competitively priced within the premium coffee market, making them an attractive choice for luxury hotels, restaurants, and resorts looking to provide exceptional coffee as a gift or indulgence.
In the initial phase of its four-year market entry plan, Net Viet Company must develop targeted strategies to effectively compete with existing coffee companies Drawing on prior research and market surveys, the company has established a pricing strategy to enhance its survival and competitiveness in the industry.
Provide competitive pricing strategy compared with current coffee market
Net Viet Company has conducted extensive research on current coffee products and competitor pricing to establish competitive pricing policies that align with market demands By leveraging past experiences and market insights, the company aims to offer reasonable prices that satisfy customer needs The pricing for their products is strategically set between 120,000 VND/kg and 180,000 VND/kg, ensuring competitiveness Specific product prices include Traditional Mountain Coffee No.1 at 120,000 VND/kg, No.2 at 130,000 VND/kg, and No.3 at 140,000 VND/kg, reflecting the company's commitment to affordability and market relevance.
VND/kg, Culi Mountain coffee is 150,000 VND/kg, Experience Mountain coffee is 160,000 VND/kg, Espresso Brown Mountain coffee is 180,000 VND/kg, Espresso Gold Mountain coffee is 180,000 VND/kg
Pricing strategy is the flexibility to enter the market
Prices of products from Net Viet Company are medium to high, depending on different customers, but affordable and acceptable
Discounts based on sales targets for each quarter and year as well as discount programs depending on each period of time
Our target customers are coffee enthusiasts who prioritize quality, cleanliness, and safety in their coffee choices.
In a crowded coffee market filled with numerous brands, the quality of coffee can often be chaotic and unpredictable However, Net Viet Coffee Company stands out by offering clean, safe, and high-quality coffee, embodying their slogan, "Essence from the High Mountain."
Effective communication tools are essential for leveraging customer advocacy as a powerful advertising channel for the company's products By utilizing a blend of traditional and modern communication methods, particularly focusing on the influential "word of mouth" referrals from satisfied clients, the company aims to enhance its reach and engagement, especially in the coffee market today.
Special emphasis on advertising, marketing on the web page more accessible as: Dan Tri, Vietnamnet, Tap Chi Thoi Trang Tre, Suc Khoe va Gia Dinh, etc…
Vietnam Television's consumer programs on VTV1, VTV2, and VTV3 effectively communicate key messages about product quality, reasonable pricing, and excellent after-sales service These advertising initiatives emphasize the importance of food hygiene and safety, ensuring that consumers are well-informed and confident in their purchasing decisions.
Showcasing products effectively in supermarkets, major agencies, coffee shops, specialty stores, and convenience stores, as well as through a Mobile Coffee Cart system, allows for the introduction of trial products that capture consumer attention and drive engagement.
Furthermore, participating in specialized fairs, exhibition, trade-fair of large-scale to confirm the quality and image in the mind of customers
Net Viet Company has developed long-term care programs for its clients, demonstrating a commitment to mutual growth in the future These initiatives aim to attract and retain loyal customers, which are crucial for the company's development and success.
Reward program: customers whose buying value is more than 100 kg of coffee per quarter will be entitled to have possibility to get an oversea trip, a car, etc…
Partnership program: loyal clients will be received many other special services as use free coffee in 1 year, trip, etc…
MARKETING PLAN for MOUNTAIN COFFEE TILL 2105
Sales Forecast
In 2012, Net Viet Company developed its sales forecast by analyzing current production capacity, assessing human resources, conducting market research, and reviewing market information, along with the company's sales figures from 2011.
Figure 4.1: Sales Forecast of Company in 2012
Volume (ton) Sales Forecast in Volume (Ton) of the first year
Sources: Data of the company
In 2012, Net Viet Company outlined a sales forecast indicating a steady increase in coffee sales, starting with 6 tons in June and reaching 20 tons by December The forecast continued into 2013, predicting sales of 24 tons in January, followed by a stabilization at 20 tons for February and March, before decreasing to 14 tons in April This strategic sales plan reflects the company's growth trajectory and market expectations.
In June 2012, the company's sales plan reached its lowest point of the year, primarily due to the initial phase of implementing the 2012 strategy However, sales surged towards the end of the year, driven by pre-planned promotions and advertising campaigns aligned with major holidays such as New Year, Christmas, and Tet in Vietnam These festive occasions provided a significant opportunity for coffee sales Following Tet, sales declined, reflecting broader economic trends and the fact that consumers had already purchased substantial quantities of coffee during the holiday season Overall, the company achieved total sales of 180 tons in 2012, setting the stage for its strategic plan for the subsequent four years, from 2012 to 2015.
Net Viet Company has outlined a strategic sales development plan for 2015, leveraging market information, workforce capabilities, and operational capacity, alongside comprehensive market research The accompanying table presents sales forecasts for the company from 2012 to 2015.
Sources: Data of the company
The sales forecast for Net Viet Company indicates a steady growth trajectory, with projected sales of 180 tons in 2012, increasing to 220 tons in 2013 (a 22% rise), 268 tons in 2014 (a 21.8% increase), and reaching 332 tons in 2015 (a 23.8% growth) This represents an impressive 84.4% increase in sales from 2012 to 2015 To achieve these ambitious targets, Net Viet Company must prioritize producing high-quality products, maintaining competitive pricing, and enhancing service quality to effectively compete in the coffee market Additionally, significant investment in promotions, advertising, marketing programs, and distribution systems is essential to ensure the success of their strategic plan over the next four years.
Net Viet Company has outlined its sales turnover, marketing expenses, and selling costs for each product through 2015, utilizing market data and research to inform its strategic planning This article will detail the company's marketing and sales expenditures leading up to 2015, providing a comprehensive overview of its financial strategies.
Figure 4.3: Sales Forecast and Expensive from 2012-2015
Total Revenue (USD) 1,080,000 1,317,600 1,607,472 1,993,265 Sales & Marketing Expenses 162,000 197,640 241,121 298,990
Sources: Data of the company
In 2012, Net Viet Company reported a total volume of 180 tons/year and revenues of USD 1,080,000, which rose to 332 tons/year and USD 1,993,265 by 2015, marking a substantial 54% increase in revenue The company experienced an impressive average sales growth of 20% per year since its establishment in the coffee market However, marketing costs also escalated by 20% annually, posing a significant financial challenge for this small business To enhance competitiveness and ensure effective operations, Net Viet Company must focus on reducing unnecessary expenses.
Sales revenue analysis reveals that Culi Mountain coffee, specifically the Experience Mountain coffee, has experienced the largest increase in sales compared to Traditional Mountain coffee varieties No1, No2, and No3, followed by the Espresso Brown Mountain coffee and Espresso Gold Mountain coffee products.
To capitalize on the revenue growth outlined in the table, the company will prioritize the development of Viet Net by implementing strategic plans and policies that enhance the most profitable product group Additionally, it is essential for the company to devise solutions and strategies to foster the growth of other product categories, ensuring the overall effectiveness and success of its business objectives.
Marketing Action Plan from 2012 – 2015
From 2012 to 2015, Net Viet Company developed a comprehensive marketing action plan that included detailed calculations of operating costs and specific programs for each phase The plan outlines clear objectives to be achieved during this period, along with a breakdown of marketing expenses Table 4.1 highlights the operating costs associated with each program and phase of the marketing strategy over the four years.
Table 4.1: Details of Marketing Plan from 2012-2015
Marketing Expenses Budget 11-Jun 11-Jul 11-Aug 11-Sep 11-Oct 11-Nov 11-Dec 12-Jan 12-Feb 12-Mar 12-Apr 12-May 1st year 2nd year 3rd year 4th year
As the description above, specific activities for each category will be presented in detail, as follows:
The Tet holiday action plan will be meticulously developed for the pre-holiday, holiday, and post-holiday phases, covering a total operational period of four months from November 2011 to February 2012 during the project's first year The budget allocated for this project will see an average annual increase of 20% over the remaining three years.
The operational costs for materials, equipment, and supplies in supermarkets will span 12 months, from June 2011 to May 2012, covering the first year of operations These expenses will also extend into the subsequent three years of the project.
Net Viet Company will conduct promotional activities and sales of its products in supermarkets over the first eight months of its operations These events are scheduled for July 2011 at Saigon Coop supermarkets, November and December 2011 at Big C supermarkets, and March to May 2012 at Maxi Mark supermarkets Additionally, there are plans to establish costs for the remaining three years, extending to 2015.
In-Building Programs LCD Ads: these programs will operate during 12 months of the first year operation and budget for next 3 years left
The coffee shop promotion programs are scheduled to occur over a six-month period, specifically in June and July 2011, and again in October and November 2011, with additional activities planned for April and May 2012 These initiatives will be part of the first year of operation and will outline the associated costs for the remaining three years of the project.
The Coffee Mobile Cart promotion programs are scheduled to occur within the first year of operation, specifically from June 2011 to May 2012, across various districts in the city The timeline includes events in District 1 in June, District 3 in August and September, District 5 in October and November, District 7 in December and January, District 10 in February and March, and Binh Thanh District in April and May Additionally, the project will incur costs for the subsequent three years following this initial promotional phase.
Over the next four months, there will be opportunities to participate in significant exhibitions and trade fairs within the food industry, scheduled for June, September, December, and March 2012 These events will focus on showcasing products and enhancing visibility at large-scale, prestigious gatherings Additionally, the project will outline the associated costs for the remaining three years.
The construction and operation costs for the company website will be incurred over the first year and will extend into the following three years of the project.
To effectively build, analyze, and evaluate a marketing plan for Net Viet Company from 2012 to 2015, it is essential to assess the costs of specific activities to gain insights into marketing expenditures Controlling operational costs while implementing effective programs is crucial for business success A well-structured marketing plan will identify the strengths and weaknesses of the company's products in the market, enabling the development of strategies and policies that align with market growth and ensure efficient business operations.
To thrive in a competitive market, enterprises must create targeted marketing strategies and implement specific actions that enhance operational efficiency and pave the way for future success.
4.3 Marketing Specific Action Plan in 2012
In 2011, Net Viet Company established clear goals and specific program activities, which encompassed Tet Holiday events, operations within supermarket systems, and initiatives at convenience and specialized stores The company also engaged in trade fairs and exhibitions, allocated budget for website programs, and managed a mobile coffee cart system Figure 4.4 details the specific activities undertaken by the company in 2012.
Figure 4.4: Details of Marketing Plan in 2012
Marketing Activity Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May
Promotion Program for Coffee Shop
Promotion Program for Coffee Mobile Cart
As described figure 4.4, the Net Viet Company's marketing activities began in June
2011 to May 2012 During a year marketing activities, building Net Viet Company activities throughout the months of operation and will be described in detail below:
Tet holiday: action plan will be prepared before the festival, and during festival time and after holiday, total operation time in 4 months, from 11/2011 to 2/2012
The cost of materials, equipment and supplies to support operations in the supermarkets: these activities will take place in 12 months, from 6/2011 to 5/2012
Net Viet Company will conduct promotional activities and sales of its products in supermarkets over an 8-month period These events are scheduled for June and July 2011 at Saigon Coop supermarket systems, November and December 2011 at Big C supermarket systems, and March, April, and May 2012 at Maxi Mark supermarket systems.
In-Building Programs LCD Ads: these programs will operate during 12 months of the year operation
The promotion programs for coffee shops: these activities will take place within 6 months, as follows: 6, 7/2011; 10, 11/2011 and in 4, 5/2012
The promotion programs for specialty stores, convenience stores sold the product of Net Viet Company will be held within 6 months, as follows: 8, 9/2011; 12, 1/2012 and in 4, 5/2012
The promotion programs for Coffee Mobile Cart systems are scheduled throughout the year, with events occurring in various districts: June 2011 in District 1; August and September 2011 in District 3; October and November 2011 in District 5; December 2011 and January 2012 in District 7; February and March 2012 in District 10; and finally, April and May 2012 in Binh Thanh District.
Over the next four months, there will be opportunities to participate in significant exhibitions and trade fairs within the food industry, specifically scheduled for June, September, December, and March 2012 These events will focus on showcasing products and engaging in activities that highlight the latest innovations in the sector.
The cost for the construction and operation of the company website: will take place within 12 months of operation
All costs for these activities have been presented in detail in above section 4.3 - Marketing action plan from 2012 to 2015
Net Viet Company's marketing plan for the next four years encompasses various activities designed to drive growth This strategy includes a detailed operating budget and projected revenue, aligning with the company's overall development goals during this period.
Monitoring and Assessment
Monthly review: evaluation and correction the marketing plan in order to meet the target as well as avoiding perform the wrong direction of planning
Conducting quarterly and semi-annual reviews is essential for aligning company plans and policies with market demands, ensuring that the organization avoids pursuing misguided strategies.
A yearly business review is essential for revising plans and policies that may not align with current market conditions This process involves analyzing updated market information to keep the company on track and minimize implementation errors By assessing the annual plan, businesses can identify customer needs, adapt to the evolving market demands, and learn from market experiences This continuous improvement approach focuses on enhancing product quality, refining after-sales service, and boosting sales skills to achieve the objectives outlined in the plan.
A post-purchase survey assesses brand awareness and recognition for the Net Viet brand through various feedback methods, including signs, symbols, names, or designs that serve as "ownership labels." This brand awareness survey can be conducted using online surveys, email questionnaires, or direct mail.
