Faculty of foreign language course expand vietnamese brand to the world

Trung Nguyen Coffee is one of the largest coffee production, processing, and franchised coffee brands in Vietnam.. So, bringing Trung Nguyen coffee to the world market, especially Asia,

MINISTRY OF EDUCATION AND TRAINING

HO CHI MINH CITY UNIVERSITY OF FOREIGN LANGUAGES -

INFORMATION TECHNOLOG

Semester 3, Academic Year 2024

FACULTY OF FOREIGN LANGUAGE

Course

Expand Vietnamese brand to the world

Lecturer:

Trần Võ Hoang Hai MBA

Group list Truong Lé Hoang - 22DH717422

Van Dinh Khai - 21DH711798

Hoang Ngoc Minh Thu - 21DH714748

Lé Quéc Hao Nhién - 20DH711200

TABLE OF CONTENTS

¡h0 0n 4 1 2.1 COImpany OV€TVIOW nhọ TT Bọ TT 1 2.2 Reason to expand the ImarK€f - - 5S - S1 Sn Y K K krrh 2

2.4 Product SeøImenfatIOII cà HH nh Họ nhọ nh kg BH 2

2.4.2 GeographIC -.- nọ nọ TT KT kh 3

2.4.4 Psychograpllc - cọ nhọ Họ Ti TK KEM 4

3.1 Overview the coffee of the twO COUTTIGS .-.c-.<c cà ng 4

3.1.1.2 Consumption CUÏfUF€: - Ăc - xi kh 5 3.1.1.3 Development potenntIaÌ: St Hàn kh 5 3.1.2 South KOF€a - cc Q TK Họ TK KT EEM 5

3.1.2.2 Consumption Culture: .cceceeceeeeeeeeae eee ee eee eae aee reese eae aae eee eeseaaaeeeeseaeaaeees 5 3.1.2.3 Development potertIaÌ: - St Hàn Hư 6 3.2 Vietnamese population in South Korea and ]apan - -c-< Sex 6

3.2.2 South KOF€a - -cc KT Họ KT ki KEM 6

is Fk 005 0200 ẽ ỐĐhe 6 3.3.1 Japan (TOKkWO) cọ KT nọ Ti TK BE 7 3.3.2 South Korea (SeOUÌ) ch nọ Ki TK Bà 7 3.4 CPI & GDP index of South Korea and ]apan - Sky 7 3.4.1 South KOF€a -cc eee eee ee eee eee eee eee eae eee eee nee seen eee sean eae 7

Only three

3.5 Analysis of the øOOdS reÐ1IT€ - ST nọ gen 8

3.5.3 Trade-off of two ÏOCAafIOIS -. - TK nhọ rà 9

5 ReconfipuratIOR DFOC€SS€S SH TK KH ki TK 11 5.1 For South Korea ImarK€T - -c - ST nọ ni 11 5.2 For Japan Imarket + nọ TH kh 11

6 Conclusion and Recommendations .:cccccceeeeeeeeeeee eee eee eae ea eee eee eae aaaeeeeeseaaaaeeeeeaea 13

Trương Lê Hoàng

1 Abstract

This report provides an analysis and assessment of locations and strategic positions in the process of bringing Trung Nguyen coffee to the world market

Trung Nguyen Coffee is one of the largest coffee production, processing, and

franchised coffee brands in Vietnam So, bringing Trung Nguyen coffee to the world market, especially Asia, will help the world know more about Vietnamese coffee culture, contributing to promoting the coffee brand in Vietnam Asia has two highly promising markets: Korea and Japan The strategic position, customer files, market pricing, demand, distribution strategy, and methods for popularizing the Trung

Neuyen coffee brand will all be extensively assessed in this research

By analyzing two East Asian markets, the report will present issues that need to be analyzed such as: (1) introduction of domestic production, (2) location, (3) different levels in the network, (4) process of reconfiguring supply chain scope, focus, trends, timetable, speed, This report will only focus on evaluating two countries, Japan and Korea, to try to find a suitable country to locate Trung Nguyen's first store

The analysis shows that both countries have great potential to develop coffee brands

as well as build a strong foothold in the coffee market in Japan and South Korea But only one country and one city can be chosen to open the first store

So, at the end, after analysis, we will draw conclusions and choose a suitable country and city to promote the brand

2.1 Company overview

Trung Nguyen Coffee is a Vietnamese coffee company founded in 1996 With an extensive range of products including instant coffee, ground coffee, and canned coffee, it is one of the largest and most recognized coffee brands in Vietnam

Additionally popular for its potent branding and marketing, the company's coffee is frequently associated with Vietnamese culture

With a long history of innovation, Trung Nguyen Coffee is recognized for having contributed to the globalization of Vietnamese coffee In addition, the company is dedicated to sustainable coffee production and has participated in several social and charitable projects

Only three

Trương Lê Hoàng

Trung Nguyen Coffee 1s a leading player in the Vietnamese coffee market, and it is also expanding its presence in international markets The company is well-positioned for continued growth in the years to come, thanks to its strong brand, innovative products, and commitment to sustainability

2.2 Reason to expand the market

Market expansion contributes to expanding the brand's popularity as well as bringing Vietnamese coffee flavors and culture to the world market, helping international friends better understand Vietnamese specialties and cuisine In addition, it also helps international friends know more about Vietnam, helping economic growth, especially tourism in Vietnam

2.3 Future objective

Trung Nguyén Legend aims to be a global coffee leader, expanding beyond Vietnam while preserving its heritage It plans to diversify products, emphasizing sustainability and community development By leveraging technology and a strong brand identity, the company seeks to create unique coffee experiences and become a symbol of Vietnamese culture worldwide

2.4 Product Segmentation

2.4.1 Demographics Trung Nguyên targets an important yet well-defined age group from a demographic viewpoint The core is made up of seasoned people (35-55) and young professionals (25-35) These hard-working people value the brand's premium positioning and superior coffee beans Amazingly, there is a little bias in favor of male patrons, which may be attributed to Vietnamese culture's persistent connection of coffee with masculinity Income is another factor; Trung Nguyén serves middle-class and upper- class clients When compared to competitors, the brand's products fetch a higher price, but its customer base is prepared to pay the difference for the perceived value Geographically, Trung Nguyén is well-represented across Vietnam's main cities Its exports already reach over 60 nations, demonstrating its appeal on a worldwide scale, but its international impact is still growing

Demographics

Age Core: 25-55 years old (young professionals, entrepreneurs, business

owners) Gender Skewed towards male due to traditional coffee culture

Trương Lê Hoàng

Income Middle to high income

Location Major Vietnamese cities, international market (over 60 countries)

2.4.2 Geographic Geographic Target Market Product Focus Distribution — Marketing

Urban Areas Young, Variety, Modern Lifestyle, (Hanoi, Ho Chi | affluent innovation, stores, e- experience, Minh City, Da | professionals premium commerce brand image

Rural Areas Mass market, Affordability, Traditional Value

traditional familiar retail outlets proposition, consumers flavors accessibility Northern Strong, Dark roast, Traditional Heritage,

Region traditional bold flavors retail outlets authenticity

coffee lovers Southern Sweet, milky Coffee with Modern Convenience,

Region coffee lovers milk, ready-to- convenience refreshment

drink stores International Diverse Adaptability, Local Global brand Markets consumers cultural partnerships, image, local

relevance e-commerce connection

2.4.3 Price

To reach more clients, Trung Nguyén Legend charges varying rates for various kinds

of coffee They sell pricey specialty coffee, mid-range ground coffee, and budget instant coffee This makes them a well-liked coffee brand in Vietnam by enabling them to offer to consumers with a variety of preferences and budgets

Price

Segment

Target Market

Product Focus

Only three

Trương Lê Hoàng

Mass market, budget-conscious Low nes " Instant coffee (e.g., G7)

consumers Middle-income earners, coffee Roasted beans, ground

Affluent consumers, coffee Weasel coffee, specialty

2.4.4 Psychographic Psychographic segmentation has allowed Trung Nguyén Legend to effectively enter the diversified Vietnamese coffee market This entails grouping customers according

to their personalities, values, and way of life For example, the company caters to

"experiencers" who enjoy speciality coffee and are always seeking out new flavors However, "traditionalists" are served traditional, potent beers Trung Neuyén Legend can establish itself as a top coffee brand in Vietnam by customizing its offerings and marketing strategies to appeal to each of these distinct customer categories

3 Location

Among more than 100 countries and territories where Trung Nguyen Legend is present, China, Southeast Asia, Europe, America are the world's leading coffee markets that the Group focuses on developing With the journey of bringing

Vietnamese coffee to the world, Trung Nguyen Lengend is constantly promoting its image and brand, covering neighboring international markets In the coming time, Trung Nguyen Legend will continue to promote exports and promote plans to open stores in leading markets such as South Korea, Japan

Both Japan and South Korea have rich coffee cultures, but with their own

characteristics and trends Japan focuses on sophistication and quality in coffee preparation, while Korea stands out for its creativity and innovation in coffee drinks Understanding these differences and similarities can help coffee brands like Trung Neuyen Legend adjust their outreach strategy to suit the target market in each country 3.1 Overview the coffee of the two countries

3.1.1 Japan Japan is an eastern country but its coffee drinking culture looks like a western country

In addition, Japan is one of the largest coffee consuming countries in the world

Van Dinh Khai

According to the International Coffee Association (ICO), Japan ranks third after the

US and Brazil in coffee consumption With its high love and consumption of coffee, Japan is a potential market for coffee brands, including Trung Nguyen Legend which

we want to expand internationally

3.1.1.1 Coffee market:

Japan also has a large and long-standing coffee market, with the appearance of many famous coffee shops and chain stores

Japan is famous for its artisanal brews and high-qualixty coffee

3.1.1.2 Consumption culture:

Japanese people pay great attention to the quality and experience of enjoying coffee They favor specialty coffees, handcrafted coffees, and coffees with special flavors

3.1.1.3 Development potential:

Japan has a strong economy and a high-income population, which creates good opportunities for new coffee brands to reach and develop

3.1.2 South Korea South Korea is a potential coffee market with an average coffee consumption of 367 cups of coffee/person/year, as well as being famous for its coffee connoisseurs, always leading the country's coffee consumption and enjoyment trends world (according to the National Council of Korean Consumer Organizations - 2022)

According to data from Statista, the revenue of the Korean coffee market in 2023 is estimated to reach 16.08 billion USD The Korean coffee market in the period 2024 -

2032 is expected to grow at a compound annual growth rate (CAGR) of 9.7% Previously, in the period 2017 - 2021, the Korean coffee market reached a value of nearly 11.36 billion USD (Expert Market Research)

3.1.2.1 Coffee market:

e South Korea has a strong and fast-growing coffee market, with the presence of many international and domestic brands

e Koreans love coffee shops and drinking coffee has become an important part of everyday culture

3.1.2.2 Consumption culture:

e South Korea tends to favor machine-brewed coffee, lattes, cappuccinos, and Western-origin coffee drinks

Only three

Van Dinh Khai

e However, instant coffee and traditional coffee are also widely consumed

3.1.2.3 Development potential:

South Korea has a dynamic consumer market and high spending power, making it an attractive destination for new coffee brands

South Korea is a fast growing market where coffee has become an indispensable part

of daily life and with a lot of potential for expansion, Korea is a good choice But Japan is no exception, realizing that Japan is a stable market, where consumers focus

on quality and coffee enjoyment experience, it is also a suitable market

3.2 Vietnamese population in South Korea and Japan

The Vietnamese population in Korea and Japan can positively influence the success of Vietnamese coffee products, especially in creating demand, supporting product promotion, and providing critical feedback important Trung Nguyen Legend can leverage the presence of the Vietnamese community to increase market acceptance and growth, while combining it with appropriate marketing strategies to achieve long- term success

3.2.1 Japan According to statistics on the number of foreign citizens residing in Japan from the immigration management agency - the Japanese Ministry of Justice as of the end of June 2023, the number of Vietnamese people in Japan is 529,154 people, an increase

of 6.3% over the same period in 2022 With a large and developed community, it can contribute a large part to revenue Vietnamese people in Japan often concentrate in areas such as Tokyo, Osaka, Aichi and Kanagawa

3.2.2 South Korea According to data published by Statistics Korea, in terms of nationality, Vietnamese citizens are 201,000 people, ranked behind Chinese citizens This is a quite large number and is likely to affect Trung Nguyen Lengend's revenue, especially when they want to seek the flavor of their homeland Vietnamese people in South Korea are mainly concentrated in large cities such as Seoul, Busan, and Incheon

= So, based on the number and concentration of the Vietnamese community, Japan seems like an option with greater potential in terms of revenue from

Vietnamese customers

3.3 Cost rent

Tokyo (Japan) and Seoul (South Korea) are two cities we want to examine closely because both cities are the most important economic and cultural centers of Japan and