Marketing plan for mountain coffee of net viet company till 2015

The main business areas of the company is manufacturing, trading and processing of coffee under the brand name is "Mountain Coffee", mainly for the domestic market, the market in... In c

PHẠM VĂN THUẬN

MARKERTING PLAN FOR MOUNTAIN COFFEE

OF NET VIET COMPANY TILL 2015

MASTER PROJECT MASTER IN BUSINESS & MARKERTING MANAGEMENT

TUTOR’ NAME: Dr NGUYEN MINH HA

Ho Chi Minh City (2012)

COMMITMENT

I hereby commit that the paper was written by myself with information retrieved and obtained sources and was prepared under the guidance of Dr Nguyen Minh Ha Where ideas were reproduction of other publication, the sources were clearly indicated, thus assuring no

plagiarism committed

HCMC, 21 February, 2012

Pham Van Thuan

Master of Business and Marketing Management

ACKNOWLEDGEMENT

Firstly, I would like to send great thanks to all Professors from Solvay Bruxells business school who transfer and share valuable business and marketing knowledge and experiences

to Vietnamese students like us

Secondly, I would like to send many thanks to my tutor – The professor Nguyen Minh Ha - a Head of graduation department of Ho Chi Minh City Open University - who has helped me a lot in giving orientation, advices and comments on how to build up a marketing plan

I also would like to extend genuine thanks to Mr Serge Bywalski and Ms Nguyen Thi Mong

Thuy, Le Thi Ngoc Hien, our helpful academic program coordinator

I would like to express my sincere thanks to Net Viet Co.,Ltd, all my colleagues here for

supporting, guidance and encouragement during my project

Finally, I would like to thank my parents, who help me through two years They have given

me the strength and courage to follow up the course and pursue my dreams

This project done in a very short time and even more limited knowledge, so not avoid many shortcomings Project themselves as very happy to be teaching more from friends, colleagues and especially teachers to further enhance their knowledge, as well as complete this project

I sincerely thank you deeply from my heart

TUTOR’S COMMENTS

Project title: MARKETING PLAN FOR MOUNTAIN COFFEE OF NET VIET COMPANY TILL 2015

Student name: PHAM VAN THUAN

Attitude: ………

Content: ………

Method and technique: ………

Project results: ………

Overall comments: ………

Evaluation: ………

Tutor’ signature

Dr NGUYEN MINH HA

EXECUTIVE SUMMARY

Viet Nam is a country of coffee export ranked second in the world, only after Brazil Coffee commodity exports have a high export turnover, just behind crude oil, and Viet Nam mainly exported raw coffee materials Vietnam's population is currently around 90 million people, most Vietnamese people have a habit of drinking coffee in the morning, and as such is

a valuable beverage indispensable daily Therefore, this is also a very big potential market to exploit and develop in the near future

Roasted and ground coffee market in Viet Nam are very enormous and developed very strong and fast There are also a lot of fierce competitions and intense There are many reasons for the domestic coffee market developed strongly in the near future, such as:

is very low, lower than the Brazil of 5.2 kg / person / year, the EU is 4.83 kg / person / year and the United States is 4.13 kg / person / year (International Coffee Organization, 2010)

2/3 are young people under 30 years of old age (under General Office for Population - Family Planning Sources 2009), coffee consumption average annual growth of over 10,5%/year (International coffee organization ICO 2010)

opportunities for domestic companies as well as foreign investors to join and develop At present, Vietnam's market is mainly consumed roasted and coffee grinders, while soluble coffee arrays also many opportunities for development, currently has 26 major coffee buyers around the world have offices in Viet Nam (Agroviet, 2011)

Net Viet Company is one of the producing, trading and processing coffee company with small - scale coffee, is very new participants in the coffee market mostly 2 years operating The main business areas of the company is manufacturing, trading and processing of coffee under the brand name is "Mountain Coffee", mainly for the domestic market, the market in

Ho Chi Minh City is the main markets of company Currently, the staff at the company is still very weak and lack the skills for the sales and market development, as well as quality coffee production did not really stable

As a new small company engaged in market production, trading and processing of coffee, so the company faced with many difficulties and challenges to survive and grow Therefore, company has to analyze and try to find out the strengths, weaknesses, opportunities and challenges of the market to build the plan, the strategic entry into the market in the early years, as well as expanding development plans in the next 4 years This plan was implemented throughout the marketing mix, including product, price, place of sale and promotion (4P)

Moreover, the company set a specific marketing plan within 4 years in order to development market in Ho Chi Minh City Planning has set out to create the sustainable development of the company in the next coming years

TABLE OF CONTENTS

Contents Pages

Commitment ii

Acknowledgement iii

Tutor’s Comments iv

Executive Summary v

Table of Contents vii

List of Tables ix

List of Figures x

CHAPTER I – INTRODUCTION 1

1.1 Company Description 1

1.2 Problem Statement 2

1.3 Objectives 3

1.4 Scope of Study 3

1.5 Methodology 3

1.6 The Project Structure 4

CHAPTER II – ENVIRONMENTAL ANALYSIS 6

2.1 External Environment Analysis 6

2.2 Internal Analysis 18

2.3.1 Strengths 23

2.3.2 Weakness 23

2.3.3 Opportunities 24

2.3.4 Threats 24

CHAPTER III – MARKETING STRATEGY FROM 2011-2015 26

3.1 Marketing Objectives 26

3.2 Marketing Strategy 27

3.3 Marketing Mix 35

CHAPTER IV – MARKETING PLAN for MOUNTAIN COFFEE TILL 2105 42

4.1 Sales Forecast 42

4.2 Marketing Action Plan from 2012 – 2015 46

4.2 Marketing Specific Action Plan in 2012 49

4.4 Monitoring and Assessment 52

CHAPTER V – CONCLUSION AND RECOMMENDATION 53

5.1 Conclusion 53

5.2 Recommendation 53

REFERENCES 55

APPENDIX 56

LISTS OF TABLES

Table 2.1: Population – Viet Nam from 2003-2010 7

Table 2.2: Viet Nam GDP from 2003-2010 11

Table 3.1: Theory of Market Segmentation 28

Table 3.2: Theory of Market Segmentation 30

Table 3.3: The List of Current High Potential Target Customers in HCM City 33

Table 3.4: Traditional Mountain Coffee No1 + No2 + No3 36

Table 3.5: Culi Mountain Coffee & Experience Coffee 37

Table 3.6: Espresso Brown Mountain Coffee & Espresso Gold Mountain Coffee 37

Table 4.1: Details of Marketing Plan from 2012-2015 47

LIST OF FIGURES

Figure 2.1: Coffee Consumption of the Top 10 Countries in the World 8

Figure 2.2: Porter’s Five Forces Model 13

Figure 2.3: Number of Coffee Consumption in Viet Nam 14

Figure 2.4: Number of Coffee Suppliers in Viet Nam 2010 16

Figure 3.1: Type of Distribution Channel 41

Figure 4.1: Sales Forecast of Company in 2012 43

Figure 4.2: Sales Forecast from 2012-2015 44

Figure 4.3: Sales Forecast and Expensive from 2012-2015 45

Figure 4.4: Details of Marketing Plan in 2012 50

CHAPTER I INTRODUCTION 1.1 Company Description

Net Viet Company was founded in 2010, the office at 14 Nguyen Thi Dieu Street, District 3, HCMC, and the factory at 143 Vo Van Hat, District 9, HCM City The company specializes in manufacturing, trading and processing of coffee with Mountain Coffee brand, with separate product lines as a Traditional Mountain coffee No1, Traditional Mountain coffee No2, Traditional Mountain coffee No3, Culi Mountain coffee, Experience Mountain coffee, Brown Espresso Mountain coffee, Gold Espresso coffee Slogan of Net Viet Company

is "Essence from the high Mountain” Target customers of the Net Viet Company are business (B2B) as Saigon Coop supermarket systems, Maxi mark supermarket systems, Big C supermarket systems, the office coffee shops, the convenience stores, specialty stores, and Mobile Cart Coffee systems

Net Viet Company is a company specialized in manufacturing, trading and processing

of coffee, still very young company, compared to other coffee companies in the market The initial development is not really clear, not a business plan to develop specific, not sufficiently developed a strategy in the long term, the company has not much experienced in the coffee market, power of workers is limited, production quality is not stable, etc… Company was established in the economic crisis period, economic crisis occurred, as well as the limitations

of strategic planning and development Currently, Net Viet Company has also faces with many difficulties in the competition and market development in Viet Nam coffee market

For the purpose of increasing market share, pass the difficult period of economic crisis and aims to develop in the future, the Net Viet Company have decided to restructure the company till to 2015, assumption coffee sales will increase 54% compared to 2012, brand image of Mountain Coffee will be available at most large supermarkets systems, specialty stores, convenience stores, big and luxury coffee shops, etc Mobile Coffee Cart systems will reach to 50 points in Ho Chi Minh City market at the end of 2015

To achieve these above objectives, the company has focused on all human resources, power, energy and time as well as the necessary funds to prepare a business plan very carefully Wishing to contribute a few comments and ideas to contribute to the business plan for the Net Viet Company much more better, I have chosen the study "Marketing Plan for Mountain Coffee of Net Viet Company Till 2015" as the final project

However, due to a newly established company engaged in the market during the economic crisis, with so many difficulties and challenges such as high inflation, volatile markets, high unemployment, the monetary policy has been limited, etc…Thus, Net Viet Company is facing with a lot of pressure and challenges To be able to survive in this very difficult period and prepare for growth in the future, Net Viet has to focus investment on improving product quality, reasonable prices and services must be improved, particularly focusing on human development resources Focus on product development and market expansion in Ho Chi Minh City as one of the first steps to develop the Net Viet Company In order to do this, an effective marketing plan for the Mountain Coffee is very important to help the company operate more

efficiently, get more market share, creating a better image as well as a coffee brand in Viet Nam 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?

1.3 Objectives

The objective of this study is to develop a marketing plan to provide a road map and specific guidelines for Net Viet Company to achieve its business development goals in Ho Chi Minh City in the next 4 years from 2012-2015

1.4 Scopes of works

This project is mainly for the operation of Net Viet Company in Ho Chi Minh City from

2012 – 2015 The company will focus on offering convenient, high quality, reasonable price and good services This project will focus on roasted and grinder coffee This project is not focus on production and logistic site of the company and instant coffee as well

1.5 Methodology

The study is based on both types of data namely primary and secondary data

Primary data: In-depth interviews with the Marketing Manager – Nguyen Van Dung

and the Director – Nguyen Bao An, some functional managers of Net Viet Company as well

as 100 customers to obtain information on the firm’s current situation and their assessment about the current industry’s environment

Secondary data: Data was collected from macro and industry analysis reports, database

of historical data resource of the coffee market, the company’s reports, research of company, internet, government offices, newspapers, etc…

Data analysis:

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:

especially in Ho Chi Minh City It is very necessary for the suitable understanding of the growth and development of Viet Nam economies and coffee market

Company, and then writing out SWOT for the company itself

marketing plan from 2012 to 2015 for Net Viet Company as well as the comprehensiveness action plan The final monitoring and assessment of the marketing plan is also mentioned

1.6 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 analyzes in depth of current macro-economic situation and coffee market in Ho Chi Minh City that helps identify opportunities and threats for the development

of coffee company in general, and then point out Net Viet strengths and weaknesses in

particularly The marketing plan from 2012 to 2015 for Mountain Coffee of Net Viet Company in Chapter three will be explained

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

CHAPTER II ENVIRONMENT ANALYSIS

There are many factors affected to the operation, development and success of an Enterprise, such as the impact from external factors environment as social factors, political factors, the elements of the regulations and business rules, the elements of the national economy of the enterprise and elements of the science and technology, these factors are important and have great impact to the operation, development and success of the Enterprise Meanwhile, the factors affecting the inside of a business is very important and greatly influenced the success of enterprises such as the human resources, Enterprises’ culture, elements of labor forces skill, etc…

Analysis of factors affecting the operation, development and success of the company

in order to help company clearly see the weaknesses, strengths, risks and opportunities for future development In addition, enterprises need to analyze the impact factors from the external environment as well as the internal factors in order to build the policies, plans, strategies needed to ensure safety operation and success of the business upon the occurrence

of adverse effects to the operation of businesses as well as ensure the implementation of policies, plans and strategies that the company have built The impact factors from the external environment and the internal factors environment will be analyzed as below

2.1 External Environment Analysis

2.1.1 Macro Level: SLEP Model Analysis

There are many factors in the macro-environment that will be a great leverage but also a threat to agriculture industry in general and coffee market in particular These factors include Social, Legal, Economic, Political and Technological factors (SLEPT)

Social Factors:

With the population of over 86 million (see in table 2.1), 2/3 of which are below 30 years old, Viet Nam has enormous young human resources The country records in continued improvement in key human development indicators such as high literacy rates of above 90% education, health improvement, life expectancy, and impressive poverty reduction The workforce is highly motivated, adaptable and has strong work ethic

Table 2.1: Population – Viet Nam from 2003 – 2010

Population

(million)

Source: BMI, HCM city Statistical Yearbook, 2008

Compared with other countries in the region, Viet Nam still have low labor cost This can be proved by the extremely low Gross Net Income per capital of Viet Nam in 2010 with only US$ 1,100 compared to US$ 38,000 of Singapore or US$ 3,850 of Thailand Moreover,

it is worth mentioning that there are an increasing number of students choosing agriculture and economics as their majors rather than technology and manufacturing at the Universities The current coffee consumption per capita in Viet Nam at 0.83kg/person/year is very low, lower than the Brazil of 5.2 kg/person/year, the EU is 4.83 kg/person/year and the United States is 4.13 kg/person/year (International Coffee Organization, 2006)

Figure 2.1: Coffee consumption of the top 10 countries in the world

The market in Viet Nam is divided into three main regions, these is the North market, the Central market and the South market The North and Central market consumers usually choose Tea as a drink coffee traditional and commonly used as a valuable gift to each other when there are festivals, New Year, etc…Meanwhile in the South market, consumers view coffee as a beverage indispensable traditional daily and this is a very big potential for all the companies want to penetrate, development market and the South was seen as an key and

important area to expand the brand in Viet Nam as well as set a foundation for future development

Besides, the consumption market in Ho Chi Minh City is very large, with a population

of over 8 million peoples is seen as a key market, many opportunities and great potential for development in coffee industry in general and for the development of Net Viet Company in particular

Generally, social factors of Viet Nam are proved to be very positive not only for agriculture sector but also to other industries These social factors have great impact on the development of Net Viet Company in the future as well

Legal Factors:

The Circular 01-06:2009/BNNPTNT by the Department for Processing Trade in agricultural, forestry, aquaculture and salt Editor, Science Technology and Environment approval and issued Circular 2009/TT-BNNPTNT day 01 June in 2009 the Ministry of Agriculture and Rural Development: Hygiene and food safety (FSH) is the conditions and measures necessary to ensure appropriate food and not damaging to the health and lives of consumers when food is prepared and/or food purpose of its use The manufacturing company, trading and coffee processing must comply with the Circular and regulated as on of the Ministry of Agriculture and Rural Development of Viet Nam and According to the Decision: No.11/2006/QĐ-BYT March 9, 2006 of the Minister of Health of manufacturing companies, trading and coffee processing certificate of eligibility and safety and food hygiene

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

Economic Factors:

Viet Nam participated in the World Trade Organization (WTO) in 2007 Join the WTO has helped Viet Nam's economy to reach a lot of favorable conditions in which the export and import of goods is much easy but Viet Nam still also faced with many difficulties since there Despite the world economic crisis from 2007 to the enormous impact to the global economy, including Viet Nam, but Viet Nam's GDP still growth average 6.5% annually (show

in table 2.2) The economic component of Viet Nam is still sustainable and recovered very quickly, especially manufacturing and agricultural business Industry and domestic coffee business with a great impact from the economic crisis but coffee consumption is still growing 2% annually This is a very stable growth and very good signal for the production and trading coffee in the future

The inflation rate of Viet Nam's economy is very high 17.5 percent in 2010 The credit policies have limited a lot of competitions in the market and lose many opportunities for the production and sales in the coffee industry, especially for small and medium enterprises In addition, high interest rates from 14 to 20 percent per year has made business more difficulties in developing expanded manufacturing business, especially small and medium enterprises

Moreover, the market exchange rates are more and more changes Exchange rates between the US Dollar and Viet Nam Dong are also high, about 8 percent in 2010, this has contributed significantly to the difficulties of the economy, the competitiveness of the economy has declined dramatically especially in producing, trading and coffee processing and agriculture businesses

Furthermore, the tightening of credit and financial policies from domestic banks has caused many difficulties and challenges for companies that trading in the economy in general and manufacturing industry and agricultural business in particular However, per capita income increased over the years, to nearly $US 1,200 (see in table 2.2), this is very important

in promoting consumption in the economy, as well as the agricultural products industry

In addition, Viet Nam economy has increasingly integrated into the regional economy even in the world economic, it helps Viet Nam economy grow faster, more dynamic, more opportunities for strongly developing Besides, there have many challenges and difficulties also, especially in the manufacturing and agricultural business is still infancy, the competition

is increasingly fierce, more drastic

Table 2.2: Viet Nam GDP from 2003 - 2010

Source: BMI, HCM city Statistical Yearbook, 2005

In summary, there are many favorable factors for the development of manufacturing, trading and coffee processing in Viet Nam in general and for the development of Net Viet Company in particular

Political Factors:

Viet Nam is ranked as one of the most Asian stable countries on politic Multinational companies consider Viet Nam as a safe and lucrative investment destination in comparison with other countries in the region and in the world However, Viet Nam has still facing with big problem in inflation and corruption With the economy and political stability have encouraged and attracted large domestic companies engaged in the coffee market, as well as many of the big foreign companies have the financial resources to participate in Vietnam's coffee market As a result, Viet Nam coffee market is likely to enjoy such abundant foreign indirect investment and has more chances to develop in the years to come

Technological Factors:

Currently, most of the manufacturers on the market and trading in Viet Nam do not have really invested heavily in production technology and processing coffee There are only some

of companies producing, trading and coffee processing of coffee which brand names on the markets to invest in improving the qualifications for production workers, changing the machinery and equipment by modern equipment and machinery, apply of scientific advances

in the production process and processing of coffee

In overall, Viet Nam market is still very easy for roasted and grinder coffee quality, they are just focused only on price but not really focused on other factors such as the production process and processing of coffee, coffee quality, product packaging design, after sales services…However, many coffee producers and processors understand that in order to survive and develop in the fiercely competitive period today, they must changes by their self, including investments in science and technology, application of modern processing technology in coffee production and processing

In conclusion, Net Viet Company is acutely aware that to survive and develop in the future, company should apply the scientific and technical progress in production and application of new production processes, selection of modern machinery to produce products,

in order to create good quality products, reasonable price, to enhance competitiveness of the product on the coffee market

Industry Level:

When analyzing the competitive industry impact factor in the coffee business, there are many competitive factors affecting the production, trading and coffee processing However,

the model analyzes of Porter is clear, effective and suitable for business

The competitive structure of coffee industry can be analyzed using Porter’s five forces model including rivalry amongst existing competitors, bargaining power of buyers, bargaining power of suppliers, threat of substitute products and threat of new entrants (see in figure 2.2)

Figure 2.2: Porter’s Five Forces Model

Rivalry amongst existing competitors: very high

Currently, there are more and more many companies in the country, as well as foreign companies have strong brand name to join market coffee, with the following reasons:

to Brazil), mainly Robusta coffee production

Nam's coffee are of high quality in the world The export turnover accounted for 2%

of annual GDP

is high, the coffee market is still very new and infancy, this is very great opportunity for local companies as well as foreign companies have strong financial resources and abundant

New Entrants: High

International & domestic competitors with strongly finance

Industry Competitors: Very high There are a lot of international and domestic companies in Viet Nam

now

Substituted: High There are more alternative products in the future

Figure 2.3: Number of coffee company in Viet Nam

Sources: Net Viet statistic book, 2010

Currently, there are many companies involved in manufacturing, trading and processing

of coffee in Viet Nam market Statistics from the table above shows that more and more domestic companies and foreign companies engaged in the coffee market In 2000 only 100 coffee companies, in 2010 there were 800 companies involved in manufacturing, trading and processing of coffee, increased 400% within 10 years (detailed in figure 2.3) This indicates that the coffee market in Viet Nam is increasingly fierce competition and intense So, the new small company involve in the coffee market as Net Viet Company must make much effort to build brand name and high quality products, reasonable prices, perfect services to compete with the company have strong brand name and position in coffee market today

In summary, the competitive of domestic and foreign companies in the coffee market increasingly fierce and aggressive Especially, the foreign companies have strong financial, scientific and high technology, modern machinery Small companies such as Net Viet Company face with many difficulties to survive and develop required a lot of effort, focused

on human resources, business plans must be clear and carefully Thus, rivalry amongst existing competitors is very high

Threat of Substitute Products: high

Coffee is regarded as a kind of traditional beverage products in Viet Nam and even in the world Consumers in Viet Nam have a degree to enjoy coffee in very differences and unique ways, many consumers are calling as coffee’s culture in Viet Nam It is also a kind of beverage products needed for daily

However, there are more and more choices for consumers of beverage products In today's market, there are many substitutes for coffee as tea, juices, soft drinks, etc This is a challenge for manufacturers, trading and coffee processing nowadays In conclusion, consumers are very easy to look for an replacement products for coffee if they feel the product is not quality, prices are unreasonable, promotions are not attractive, etc…So, the threat of substitute is high

Bargaining Power of Buyers: high

Because of the market have many companies involved in the production, trading and processing of coffee on the market today So consumers now have more choices to find a best manufacturer, best quality, reasonable price as well as the most perfect services With more than 800 companies producing, trading and processing of coffee on the market today, consumers will have more choices, they should require more quality products, and more reasonable price, services have better, promotions program more attractive, etc…Small and medium companies will face with many difficulties in competing with large companies in finding and serving customers

The standards of life in Viet Nam is increasingly advanced, increasingly diversify needs, the demand for enjoying products increasingly and changes very fast So, the market segment is increasingly clear, consumers will find out to ensure the company with full of those above requirements To conclude, the powered of buyers is considered high

Bargaining power of suppliers: high

Currently, there are many coffee suppliers in Viet Nam market, from small companies

to large companies, even small traders, and individual business So, the quality of the coffee suppliers very difficult to control, and have not any specific rule in controlling quality of coffee, as well as from the suppliers coffee on the market today

With over 300 suppliers of coffee product currently on the market, which do not include the hundreds of small traders, and individual business on the coffee market (illustrated

in figure 2.4) Because there are many coffee suppliers now which do not have any rule for providing quality coffee to the market Then, the quality coffee market in Viet Nam are very difficult to control and high risky as well

Providers in Viet Nam are now competing with each other so fiercely on price and quality, this is also needed on the market to ensure stable quality, reasonable prices as well as ensuring the contractual commitment to the market events occur unexpectedly In summary, the powered of suppliers is high

Figure 2.4: Number of Coffee Suppliers in Viet Nam 2010

Threat of New Entrants: high

Viet Nam economic has developed fast, strong and stable over the years, an average of 6.5%/year The economy is very young and dynamic, young population, young labor forces, low labor costs, and labor force has a literacy high level This is considered one of the great advantages of Viet Nam's economy

On the coffee industry in general, the average annual growth of domestic market of the coffee industry is very high, averaging 10.5%/year (International Coffee Organization, 2010) This is one of the most elements and extremely motivated for domestic companies in Viet Nam as well as international companies expanding and market development in Viet Nam Therefore, more and more domestic companies as well as international companies penetrated, entering in the coffee market with many opportunities, challenges, and very big potential

Besides, corporations and large companies have the repute brand on the market coffee Viet Nam such as Trung Nguyen coffee, Vinacoffee, Highlands coffee, Illy coffee, Gloria Jean's, etc They are more and more increasingly investing in the development of the brand images, distribution networks, in machinery equipments Especially, investing in human resources to prepare to cope with the increasingly fierce competitions and intense as well as in order to develop solid in the future

Moreover, Viet Nam coffee market has a lot of small businesses, micro companies as well as individual can also engage in the production, trading and coffee processing These companies manufacture and trading of coffee with a very low quality, cheap prices and no branding This really is a huge threat to companies who want to produce, trade and processing

of clean coffee, good coffee quality, competitive price and good service quality, as well as the company want to build a brand from the beginning as Net Viet Company

In summary, Net Viet Company has prepared the necessary plans to deal with these situations as well as preparing a development plan, strategic for the future by expanding the distribution networks, building the image of clean coffee quality products, good services, and reasonable prices, etc…

Conclusion: In order to develop and success of the company on the market today, there are many factors affecting the success of the enterprise There are many important external factors, a great impact and influence the development of enterprises, such as social factors, legal factors, elements of the economy, the political factors, technologies factor Enterprise need to analyze and evaluate these factors impact the subject of business activities

to provide appropriate solutions, building policies, plans and strategies to ensure that the development and success of future business

Products Portfolio: Brand “Mountain Coffee” is a brand of Net Viet coffee company with

slogan “Essence from the high mountain”, a small company specializing in manufacturing,

trading and coffee processing, new entrants to the coffee market almost 2 years Currently, the company's products have product lines are as follows:

small coffee shops, although the quality of coffee still ensure criteria are clean, high quality coffee, reasonable prices and good services

 Traditional Mountain Coffee No2: Our target customers are the ordinary customers, the small and medium coffee shops, although the quality of coffee still ensure criteria that clean, high quality coffee, reasonable prices and good services

and high levels, the medium and high coffee shops, restaurants, resorts, supermarket, convenient stores, specialty stores Quality coffee is clean, high quality, reasonable prices and good services

restaurants, hotels, resorts, convenient stores, specialty stores and supermarkets Consumers use coffee as present, gifts, etc… Quality coffee is clean, high quality, reasonable prices and good services

hotels, resorts, coffee gifts, convenient stores, specialty stores and supermarkets with the taste

of foreign flavors that gently but essence Quality coffee is clean, high quality, reasonable prices and good services

restaurants, resorts, convenient stores, specialty stores, big coffee shops and supermarkets Quality coffee is clean, high quality, reasonable prices and good services

restaurants and resorts, convenient stores, specialty stores, big coffee shops and supermarkets Quality coffee is clean, high quality, reasonable prices and good services

In conclusion, Net Viet Company diversified range of products to serve many different customers in order to enhance competitiveness in the coffee market, as well as satisfying the requirements and demands of the market The company has always focused on product quality, good services as well as reasonable prices to meet the increasing needs of customers

2.2.2 Company Cultures:

Net Viet Company was founded in 2010, only 2 years operating in the area of manufacturing, trading and coffee processing, is still very young company compared to other companies in the coffee industry in Viet Nam in general and in Ho Chi Minh City market in particular with a capital activity is six billion VND Labor forces of Net Viet Company are still weak and lack However, the Net Viet Company's employees are very active, open characteristic, desire to learn, there is a lot of competition at work but full of a sense of responsibility The Net Viet Company’s culture is very seriously in treat fair with employees, creating an open environment to all people equally shared, jointly promoted and this contributes to the development of a company rapidly in the infancy time and has overcome many difficulties and limitations of a new company set up and operation In summary, by building a culture of fairness, openness and full sense of responsibility at work, Net Viet Company was ready for all challenges, opportunities and successes ahead

2.2.3 Company Resources:

Most of the staffs and human resources of Net Viet Company are very young, have university degrees Human resources in the company are enthusiastic, hard working and have full of senses of works responsibility Leadership in the company has committed to staff work together, grow together on the road ahead Net Viet Company leaders pledged sharing profit with employees and get ready to apply modern technology, new methods of business communications, sales, marketing, and management issues treatment to increase work efficiency, and together fulfill staffing to meet work full of opportunities and challenges in the near future Currently, human resources of the Net Viet Company including 01 director, 01 sales manager – has 15 salesmen, 01 production manager - has 6 production staffs, 01 marketing manager - 6 marketing staffs and a secretary general In addition, there are some relevant personnel and some staffs work occasionally All personnel in the company have university degree and above In conclusion, the human resources of Net Viet Company were getting ready for company development in the near future

2.2.4 Company Constraints:

Net Viet Company was founded in 2010, only 2 years operating in the area of manufacturing, trading and coffee processing, is still very young company compared to other companies in the coffee industry in Viet Nam in general and in Ho Chi Minh City market in particular In 2010, the workforce of the Net Viet Company including: one director, one production manager – had six staffs, one marketing manager - had 3 employees and 01 sales manager – had six salesmen The number of sold in 2011 was 180 tons, sold coffee for 30 coffee shops, some restaurants, some hotels, supermarkets, specialty stores, convenience stores In 2010, there was not mobile coffee cart systems and without sales policies, promotion programs, launching new products and without distribution systems and brand identity as well Most personnel in Net Viet Company are still very young, have not much experienced on the market in general and in the coffee market in particular Moreover, labor forces personnel are still lacking and weak, and thus, not cover all markets in Ho Chi Minh City In addition, the company has not established a complete system of brand identify, market segmentation is not clearly, brand positioning in the market has not been characterized Currently, the brand image is only in infancy period and the beginning of the development process in the future So, Net Viet Company has prepared training programs, improving market knowledge and skills necessary to serve the upcoming period as well as prepare for the future development in coming years

2.2.5 Company Strategy:

The current strategy in the Net Viet Company is built an image of clean coffee, good quality, perfect services and reasonable price and good after sales service Besides, the company also pays great attention to the develop of image and brand, as well as develop a good plan and policies for wholesalers, distributors, retailers to expand channel distribution and market expansion In conclusion, Net Viet Company has a clear development strategy in the future as well as preparing for the opportunities, challenges and develop in the next 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

Conclusion: It can be concluded that internal factors in the enterprise are extremely large influenced and important to the operation and success of the business The internal factors in the enterprise such as an essential element in human resources, the cultural elements of the business, the elements of the enterprise product, the limitations of the business, strategic factors of business and the important factors affecting the success of the business These factors have an important role and impact on the operation and success of future business So, businesses need to analyze and find out the strengths and weaknesses to develop plans, policies and strategies to operate and develop in the future In addition, enterprises need to find solutions appropriate activities, the policies needed to address these difficulties in the operation and development of enterprises

2.3 SWOT Analysis

The analysis of external macro–economic environment has brought opportunity, threats, weaknesses and strengths And from the analysis of external factors of macro-economic environment, company will recognize the strengths, weaknesses, opportunities and threats of the market, so that there are strategies, the action plan in accordance with the

market, as well as the development policies of the company in the coming time SWOT analysis of Net Viet Company as follows:

2.3.1 Strengths:

experiences in coffee industry as well

materials, reduce price of products, etc

direction

have a university degree, so they are easy to acquire new knowledge, apply scientific

in their work

coffee industry in the future

Viet Company is always focuses on producing coffee with high quality, clean coffee and perfect services

2.3.2 Weaknesses:

experiences and knowledge of the coffee market Sales and marketing team are not strong

development

2.3.3 Opportunities:

10%/year, this is really a huge potential for companies to invest and develop in the coffee industry

future

and limited the businesses without seriously engaged in the coffee market

2.3.4 Threats:

large companies, as well as foreign corporations engaged in the coffee market, is actually a huge threat to small companies such as Net Viet Company

producing, trading and coffee processing There are more and more competitions in the coffee industry in the market This is a big advantage for those companies with strong financial resources

nowadays This is also a big threat to small companies without strong in financial Conclusion: Analysis of strengths, weaknesses, opportunities and challenges for businesses to help the overall look of the market, products, competitors on the market in order

to build up the action plans, policies consistent with the market, developing solutions to business and to develop strategies for business in the future

Summary: When analyzing the impact factors from the external environment and the internal environment factors that impact to the enterprise in this chapter to help businesses clearly see the limitations, strengths, risks of market as well as development opportunities of business in the future Since then, build up the business policies, measures, plans and

strategies for market development as well as to ensure the success of the enterprise in the market today