Marketing of g7 of trung nguyen corporate

ABSTRACT 2 PART I: INTRODUCTION 3 1.1. Trung Nguyen Corporation 3 1.2. History and development 3 1.3. Trung Nguyen Franchise system……………………………………………………………..3 1.4. Vision, mission and corporate values 4 1.4.1 Mission of Trung Nguyen Corporation 4 1.4.2 Vision of Trung Nguyen Corporation 5 1.4.3 Corporate Values 5 1.5. Achievement of Trung Nguyen Corporation 5 1.6. Product of Trung Nguyen Corporation 6 1.7. Introduce about G7 of Trung Nguyen Corporate 6 PART II: MARKETING MARKETING MIX STRATEGY OF G7 7 2.1. Marketing strategy 8 2.1.1. Market Penetration strategy 8 2.1.2. Market expansion strategy 8 2.1.3. Product development strategy 10 2.1.4. Diversification Strategy 10 2.2. Marketing mix strategy 11 2.2.1 Product Strategy of Trung Nguyen coffee 11 2.2.2 Price Strategy 13 2.2.3 Place strategy 13 2.2.4 Promotion strategy 15 PART III: EVALUATION AND RECOMMENDATION 16 3.1. Strength and weakness of marketing strategy 16 3.1.1. Strength 16 3.1.2. Weaknesses 16 3.1.3. The difficulties and challenges 16 3.2. Recommendation 17 3.2.1. For Trung Nguyen Corporation 17 3.2.2. For government 17 PART IV: CONCLUSION 18 References 18 ABSTRACT The world has shown that coffee really becomes an industry with a total transaction value is 80 billion worldwide, second only to oil in value of goods and gold over silver, gems, oil goods to become the most speculative. This sector has expanded and contained the elements of finance, commerce, investment, culture, knowledge economy, tourism, travel coffee. Trung Nguyen is a coffee supplier in Vietnam market and the world. Trung Nguyen oriented regardless of age, gender, job, income or area, which have demand and enthusiasts about coffee over the word. And to achieve that ambition, Trung Nguyen Group began to act with strategic short and long term, and most are specific strategies to build coffee capital of the world in Buon Ma Thuot. Trung Nguyen constructs goals: Dominates Domestic coffee Market, conquer the world market, by shifting from width to depth, investment and development franchise system in domestic and international. Trung Nguyen is a successful magic of branding in Vietnam in recent years. Within 5 years, from a small workshop in Buon Ma Thuot, Trung Nguyen was in the country. Trung Nguyen has made a spectacular entry in the history of branding Vietnam. Besides that they also have many challenges and threats. Because, Trung Nguyen Corporation has many competitors such as Nescafe, Starbucks, Dunkin Donu

ABSTRACT 2

PART I: INTRODUCTION 3

1.1 Trung Nguyen Corporation 3

1.2 History and development 3

1.3 Trung Nguyen Franchise system……… 3

1.4 Vision, mission and corporate values 4

1.4.1 Mission of Trung Nguyen Corporation 4

1.4.2 Vision of Trung Nguyen Corporation 5

1.4.3 Corporate Values 5

1.5 Achievement of Trung Nguyen Corporation 5

1.6 Product of Trung Nguyen Corporation 6

1.7 Introduce about G7 of Trung Nguyen Corporate 6

PART II: MARKETING & MARKETING MIX STRATEGY OF G7 7

2.1 Marketing strategy 8

2.1.1 Market Penetration strategy 8

2.1.2 Market expansion strategy 8

2.1.3 Product development strategy 10

2.1.4 Diversification Strategy 10

2.2 Marketing mix strategy 11

2.2.1 Product Strategy of Trung Nguyen coffee 11

2.2.2 Price Strategy 13

2.2.3 Place strategy 13

2.2.4 Promotion strategy 15

PART III: EVALUATION AND RECOMMENDATION 16

3.1 Strength and weakness of marketing strategy 16

3.1.1 Strength 16

3.1.2 Weaknesses 16

3.1.3 The difficulties and challenges 16

3.2 Recommendation 17

3.2.1 For Trung Nguyen Corporation 17

3.2.2 For government 17

PART IV: CONCLUSION 18

References 18

The world has shown that coffee really becomes an industry with a total transaction value is $ 80 billion worldwide, second only to oil in value of goods and gold over silver, gems, oil goods to become the most speculative This sector has expanded and

contained the elements of finance, commerce, investment, culture, knowledge economy, tourism, travel coffee

Trung Nguyen is a coffee supplier in Vietnam market and the world Trung Nguyen oriented regardless of age, gender, job, income or area, which have demand and

enthusiasts about coffee over the word And to achieve that ambition, Trung Nguyen Group began to act with strategic short and long term, and most are specific strategies

to build "coffee capital of the world" in Buon Ma Thuot Trung Nguyen constructs goals:

"Dominates Domestic coffee Market, conquer the world market", by shifting from width

to depth, investment and development franchise system in domestic and international Trung Nguyen is a successful magic of branding in Vietnam in recent years Within 5 years, from a small workshop in Buon Ma Thuot, Trung Nguyen was in the country Trung Nguyen has made a spectacular entry in the history of branding Vietnam

Besides that they also have many challenges and threats Because, Trung Nguyen

Corporation has many competitors such as Nescafe, Starbucks, Dunkin Donut

So, when getting the subject from the teacher, our group is excited and wanted to

complete the essay with all the knowledge and skills of the group to clarify the issue:

“Marketing & Marketing mix strategy of G7”

PART I: INTRODUCTION 1.1 Trung Nguyen Corporation

Each user coffee in Vietnam, certainly, has heard at least once time the word “Trung Nguyen coffee” This is a famous coffee brand not only domestic but also resonated in difficult foreign markets such as USA, China, Japan, and EU

Trung Nguyen Corporation was launched in mid-1996 – Trung Nguyen coffee is a

fledgling brand in Vietnam, but has quickly built up a reputation and become a coffee brand most familiar to consumers both at home and abroad Within 10 years, Trung Nguyen has been a resurgence of powerful corporation

1.2 History and development

• 1996 – Establishment of Trung Nguyen Coffee Company

Establishing in Buon Me Thuot

• 1998 - Bring New Inspiration

Trung Nguyen's slogan appeared in all the opulent streets of Saigon

• 2000 - Over 100 Trung Nguyen coffee shops were set up

Trung Nguyen appeared in all of South West Provinces and was launched in Hanoi

• 2001 - "Explore creative inspiration"

Trung Nguyen opened more branches in different provinces and cities of Vietnam

• 2002, 2003 Trung nguyen coffee expanded to Singapore, Thailand, Cambodia

New products line of Trung Nguyen was launched such as Tra Tien, especially G7 instant coffee

• 2005 Formally inaugurated the Roast and Ground Coffee

The only coffee factory granted with the EUREGRAP International Certificate, for its

cleanliness and excellence in producing coffee.

• 2007

Publishing the Coffee Philosophy of Vietnam and starting the project “The Global Coffee Sanctuary” in Buon Ma Thuot City

• 12/2007

Trung Nguyen coordinated with Dak Lak people’s committee to successfully hold the Cultural Coffee Week 2007 in Ha Noi and Ho Chi Minh City

• 2008

Opening the New Franchise café system in Vietnam and international, inaugurating the Trung Nguyen Coffee Village in Buon Ma Thuot City

• 2009

Opening Trung Nguyen Creative Coffee House in Ha Noi

Building New Trung Nguyen Coffee Factory in Buon Ma Thuot City,

Short and long term objectives: Dominating the domestic market and conquering the international market

1.3 Trung Nguyen franchise system.

Trung Nguyen Coffee is the first Vietnamese company that has applied the model of franchise Being active and creative, Trung Nguyen has established the franchised shop system nationwide and also in Japan, Singapore, Thailand, Cambodia, Ukraine, German and China with a special style of coffee enjoyment

With the business method of franchise, Trung Nguyen coffee products, which are

produced by the best coffee beans from the highland of Buon Ma Thuot in conjunction with modern technologies and company’s own skills, are introduced to everybody nationwide and worldwide

Today, with about 1,000 franchised coffee shops, Trung Nguyen always brings people Vietnamese coffee of top quality in any Trung Nguyen coffee shops

1.4 Vision, mission and corporate values

1.4.1 Mission of Trung Nguyen Corporation

Creating the leading brand is carried out by bringing to everyone drinking coffee a source of creative inspiration and pride of Trung Nguyen" style that is rich in

Vietnamese culture”

1.4.2 Vision of Trung Nguyen Corporation

To become a major force in boosting the Vietnamese economy; To uphold stability of the national economy; To partake in the establishment of a Great Vietnam, with hopes of discovering and conquering new ideal

1.4.3 Corporate Values

Core value

1- Inspired Creativity: Creativity is one of the many values Trung Nguyen encourages

among its valued consumers and employees

2 -Develop and protect our brand: Every member has a responsibility of building,

expanding, maintaining and protecting the Trung Nguyen trademark

3 - Consumer'sOrientation: Consumer satisfaction is the top priority in every activity

and the target goal

4 - Build our success upon our partner's success: A good partnership is based on belief,

respect, and equality The success of a partner is the success of the whole Trung Nguyen group

5 - Develop strong human resource: Providing proper benefits both material and

spiritual needs through training and developing opportunities for its employees

6 - Base on effectiveness.

7 - Promote social responsibility and community development: Actively contributing to

the welfare of the community and the development of society

Corporate beliefs

 Coffee makes the world more prosperous

 Coffee is the fuel to the knowledge economy

 Coffee foster harmony and promotes sustainable development

1.5 Achievement of Trung Nguyen Corporation

- Leading coffee company in Vietnam

- Biggest exporter in Vietnam of processed coffee

- “The Red Star Award” for Mr Dang Le Nguyen Vu – General Director – awarded

by Vietnamese Young Enterprise Association in 2001

- “The Yellow Star of the Vietnam” awarded by Vietnamese Young Enterprise Association in 2003

- “Third grade Labor Medal” awarded by Vietnamese Government in 2004

- ASEAN Youth Award 2004 – Theme “Youth and Entrepreneurship” for Mr Dang

Le Nguyen Vu

1.6 Product of Trung Nguyen Corporation

 Weasel - The King of Coffee

 Legendee – The legend coffee

Legendee brings you an extremely flavorful and rich coffee from the best Arabica and Robusta beans in the legendary basaltic soils of Buon Ma Thuot

 Creative 1-2-3-4-5

Creative 1: Experience the distinctive features of Vietnamese coffee in its perfect combination of elegant aroma, smooth flavor and bitter-sweet taste

Creative 2: A subtle mix of Arabica's delightful aroma and distinct flavor of Robusta bean brightens your whole day

Creative 3: Buon-Ma-Thuot Sparrow Arabica coffee's strong aroma, round

smoothness and refined acidity make it unique

Creative 4: With Trung Nguyen’s widely-acclaimed unique know-how, Creative 4 brings you an exotic coffee in great depth of flavor and lasting aroma

Creative 5: The finest Arabica beans from Vietnamese Highland giving you a

special taste of bright and extremely flavorful coffeeG7- The coffee for ladies – collagen and sugar free

 Passiona: Selected from fine Arabica and Excelsa beans, Passion coffee with low caffeine, elegant aroma and bright flavor is a good choice for first-try coffee drinker

 G7: The original and still the top seller! G7 was the first instant coffee to be extracted directly from the unroasted coffee bean, not from freeze-dried brewed coffee like American brands It's been the top instant coffee in Asia ever since its creation in 2002

1.7 Introduce about G7 of Trung Nguyen Corporation.

"Connect and develop coffee enthusiasts worldwide."

 Trung Nguyen Corporation is famous with advanced product line, average

products and popular products and the most especially with the line of G7

instant coffee It’s voted by 89% consumers comparing with 11% choosing Nescafe The first time a domestic brand dares “challenge” with an international brand, world-renowned

 G7 Instant Coffee is known for the type: G7 3 in 1, G7 2 in 1 G7, G7 Pure Black coffee, G7 Cappuccino Nowadays, demand for coffee of domestic and

international consumers are more growing and more subtle After studying consumer tastes and markets, Trung Nguyen came out product “G7 instant coffee

5 in 1” complementary product lines G7 instant coffee available in the market

 With the Trung Nguyen brand is known and preferred by many people of

Vietnam, G7 rapidly gained a position in Vietnam market G7 Instant Coffee is made from the best materials with modern technology and the secret-special extract G7 has special flavor, dense and charm, is "taste" Vietnam's coffee With the strategy become a major force in boosting the Vietnamese economy,

upholding stability of the national economy, partaking in the establishment of a Great Vietnam, and hopes of discovering and conquering new ideals Along with the aim overthrow the most powerful competitor of G7 is Nescafe - a foreign company is dominating the largest coffee market in Vietnam The G7 has a

background as Trung Nguyen - a famous brand has long been well known but to G7 sustainable development and claims No 1 in Vietnam market Trung Nguyen

Corporation must have specific marketing strategy and large scale with the advertising quality as well as images of G7 instant coffee

PART II: MARKETING & MARKETING MIX STRATEGY OF G7

2.1 Marketing strategy

2.1.1 Market Penetration strategy

At the beginning, Trung Nguyen Coffee got failure in a long time when it entered to Saigon market Until 20/08/1998 they opened a coffee shop for 10 days free, Trung Nguyen marked the first success Understanding economic growth is slow, but people's lives are improved but not changed the habit of spending plans, more saving for the future so spending a difference amount to several hundred thousand Coffee shop and sidewalk are considered a pretty thoroughly It is noticed that, Trung Nguyen did not hesitate to step into the market strategy with an act of faith formation for the potential consumer Trung Nguyen activities have introduced the product to customers and led to enjoy coffee "Trung Nguyen style " Six months later, the name of Trung Nguyen Coffee has developed more than a business with 20 years seniority in the city of Buon Me Thuot Trung Nguyen has maintained the development of "Strategic Triangle" It can be said Trung Nguyen is a successful of branding in Vietnam in recent years Within 5 years, from a small workshop in Buon Ma Thuot, Trung Nguyen has appeared over the world

Trung Nguyen is almost fully exploited their advantages in an attractive market:

o Entering the market as the first company processing raw coffee in the market

o Huge supplier and competitor give an opportunity to choose and decide the price

of product

o Customers gradually formed the habit of using coffee at all times, providing the market a huge demand and potential Moreover, diverse target markets

stimulates growth of businesses, creates monopoly product

2.1.2 Market expansion strategy

At the end of 2003, Trung Nguyen coffee products launched G7 and exported G7 to the developed countries in the world Trung Nguyen continued developing network with

600 cafes in Vietnam, 121 distributors, 7000 point of sales and 59.000 retail stores in

2004 December 2007, Trung Nguyen coffee combined with Dak Lak People's

Committee organized successfully the Coffee Culture Week in Hanoi and HCM City In

2008, Trung Nguyen continued launching new franchise systems in Vietnam and

international In June 2009, Trung Nguyen started constructing the coffee factory with the modernist technology in the world at ĐakLak This is Trung Nguyen's efforts to confirm the value of Trung Nguyen Coffee brand, Buon Ma Thuot coffee in world

market

After conquering the domestic market quickly with quality and style, unique, Trung Nguyen started putting its brand in the market in the world with a franchise strategy for the first time in Singapore 2000 However, their successful is only true when Trung Nguyen coffee appeared in Japan next to 400 stores a total of 6000 stores Starbucks – the largest corporation of Coffee in the U.S and many brands of Japanese coffee

Up to now, Trung Nguyen brand appear in Japan, Thailand, Singapore, China and the Czech Republic Trung Nguyen Coffee roasting is also present in supermarkets and other stores in the U.S., Germany, Eastern Europe, France and Russia Dang Le Nguyen

Vu is expanding contracts to seek market share for Trung Nguyen in 15 countries

including Germany, Australia, Canada, Taiwan, Malaysia, Philippines

In festival coffee to introduce G7 to customer, Trung Nguyen has new strategy for two brands are G7 and Nescafe They’re prepared available free of charge to those who festival participants Results: 89% of festival participants said that G7 is better than Nescafe, 11% vote for Nescafe After this plan, Trung Nguyen advertised their products through traditional channels, community activities of Trung Nguyen's G7 With Slogan:

“Vietnamese give priority to use Vietnam goods”, Trung Nguyen Coffee has more and

more opportunities to penetrate, develop and expand the domestic market, foreign market, also

However, it’s easy to see that the campaign between G7 and Nescafe is unequal Nescafe

is a famous brand of Nestle Group and it is controlling market coffee in Vietnam

(Vinacafe, more) G7 is a new product on the market But the marketing strategy

opposite with Nescafe of G7 is contrast to the principles of marketing strategies for competitive advantage This is the first mistake of Trung Nguyen coffee and G7 The second mistake is not clearly about target customers Trung Nguyen coffee should find out about empty markets, market segments, customer segment target Because target of Trung Nguyen strategy leads to most of consumers in Vietnam but each person has style and habit is not the same, some people drink coffee to relaxed, someone drinks coffee to awake in working or studying, they do not care much about brand or type of coffee, someone, in contrast, they drinks coffee because the famous brand, it makes them become professor

2.1.3 Product development strategy

Before 2003, coffee is the market of MacCoffee, Vinacafe and some foreign coffee

Not only entry to international market with roast coffee, Dang Le Nguyen Vu really makes business amazing when he launched G7 instant coffee in 2003 November The name of G7 instant coffee in his idea is a name easy access international but non-international outlook It has mission to conquer, dominates market of 7 developed countries G7 starts against with foreigner of great aristocratic family about instant coffee by “G7 instant coffee festival” in Reunification Palace Trung Nguyen has changed market share instant coffee in short time: market share of Nescafe reduced from over 50% to 45%, G7 accounted for 21%, remain of other brands Their goal was not only market shares but also beat the "extended" Foreigners

in Vietnam before the world Trung Nguyen exported G7 to develop countries in the world Before, name of Trung Nguyen gradually saturated with the customers both domestic and foreign G7 instant coffee has contributed significantly in the redistribution of market share in the industry Trung Nguyen is also building plants with values several million dollars to develop further this product So, with G7 product development strategy, it brings reputation for Trung Nguyen More people use product of Trung Nguyen specially G7 Beside Trung Nguyen created believable for customers This strategy makes customer trust and select

“Café Viet” instead of foreign coffee Thus, this strategy has strong influenced not only domestic but also foreign market It has changed market share of coffee in domestic and