ANALYSIS OF MARKETING MIX STRATEGY OF

Product The Coffee House's essential products: Initially, The Coffee House provided coffee products.. Because at first, The Coffee House only offers coffee drinks to satisfy the core nee

PART A ANALYSIS OF MARKETING MIX STRATEGY OF

THE COFFEE HOUSE

1 Product

The Coffee House's essential products: Initially, The Coffee House provided coffee products Because at first, The Coffee House only offers coffee drinks to satisfy the core needs of customers when they come to the cafe: they enjoy coffee The Coffee House Blend is a separate blend of coffee served at The Coffee House chain The roasted and blended formula of The Coffee House's Arabica and Robusta beans creates a balanced whole of bitter, sweet, and sour taste, which makes the coffee strong and aromatic

ARABICA seeds come from The Coffee House farm in Cau Dat, the soil to grow the best Arabica coffee beans in Vietnam

ROBUSTA seeds of The Coffee House are selected from the most reputable Robusta suppliers in Vietnam from the Central Highlands (Dak Lak, Gia Lai, Lam Dong)

However, in their brand development roadmap, The Coffee House realized that they could also attract a large number of customers who do not love coffee but want to experience and stick with The Coffee space House, The Coffee House created the motto: "Go to coffee but not necessarily to drink coffee"

F&B is a very competitive industry due to a wide range of substitutes Therefore,

it is common for stores to improve their menu continually The Coffee House is no exception In addition to the famous coffee, the brand also develops many other products, tea & macchiato, ice-blended drinks, fruit drinks

In Starbucks' marketing mix strategy - the P for the product Starbucks continually innovates its products to match the unique and creative needs of customers in different countries

Starbucks coffee types will be divided into 4 groups with different criteria, including:

Sort by coffee beans: whole coffee beans, roasted coffee beans

Sort by roasting: roasted coffee (blonde), medium roasted coffee (medium), carefully roasted coffee (dark)

Sort by caffeine level: regular coffee (containing caffeine), and decaf coffee (caffeine removed)

Sort by taste: flavoured coffee and flavourless coffee

In addition to the above criteria, Starbucks also develops other product lines suitable for a large number of customers who are not connoisseurs of coffee or who prefer not to drink coffee but wish to experience Starbucks's coffee space Additional development products such as fruit tea - Teavana iced tea and seasonal product lines, limited edition, and festive occasions like Christmas and Valentine

With the strategy of developing creative and flexible product lines, Starbucks always brings fantastic products, which customers are eagerly waiting

Thereby we see both brands of The Coffee house and Starbucks though different product criteria but the same goal to satisfy the needs of every customer whether or not they love coffee or not when coming to the brand

From the above factors shows the similarity in product policies of the two brands, both brands are coffee-focused and have auxiliary products to please needs of customers, with the criteria to go coffee does not necessarily drink coffee.

The difference in product policy of the two brands lies in the criteria of the types of coffee to create a unique brand identity.

2 Price

It can be said that Vietnam's coffee market is divided into many clear segments, and every sector has large businesses involved Accordingly, the office segment has Highlands Coffee and Trung Nguyen and foreign brands such as Starbucks Coffee The youth or teen segment is the presence of Urban Station and Passio According to Hai Ninh - Founder of The Coffee House brand: although jointly pursuing each other

in terms of the number of stores, the brands are far apart in price The average price of

Urban Station and Passio ranges from VND 15,000 to VND 40,000: from Trung Nguyen and Starbucks Coffee, from VND 40,000 to over VND 90,000 The price gap from 30,000 to under 60,000 VND, this is the market of The Coffee House In terms

of customers, The Coffee House is a combination of Highlands Coffee and Starbucks Accordingly, The Coffee House is aimed at customers who have gone to work, have travelled, like to experience luxury cafes at localized prices

One of the most successful strategies of The Coffee House is the Launching strategy

of joining exactly, "the right person at the right time" Back then, Vietnamese people were accustomed to sitting on coffee, but at a high price from brands like Starbuck, the price range of 30,000 - 60,000 VND with a "Western" style restaurant is still open

It is for this reason that the strategy of market penetration has been carefully studied

by globalization to fill that gap

The price strategy used by TCH is entirely correct; customers can experience a spacious, comfortable and sophisticated space - not inferior to foreign giants such as Starbucks for only 30,000 - 60,000 VND It is one reason why many young people become loyal fans of this store chain

For Starbucks, the price of each product is priced based on the value of the product Starbucks said that they provide high value to customers, both tangible and intangible.t Tangible value is the quality of the product, from carefully selected and rigorous coffee beans by a well-trained staff Intangible values are the experiences and

emotions that customers are immersed in an authentic coffee space Starbucks' marketing mix in Vietnam is based on consumer behaviour Customers always tend

to think that: Expensive products have a higher value; high-end brands will be reputable and create more quality products

Via above analysis shows the difference in price strategy of the two brands The Coffee House chooses a competitive price strategy in order to occupy the mid-range market which still has a gap, while Starbucks is loyal to the price strategy with the criterion “expensive products have higher value”.

3 Place

The Coffee House uses a direct sales distribution channel model A stamp imprinted

on the minds of customers, also a trait that makes people curious, is the continuous opening of The Coffee House, appearing dense in big cities, considering the location that is always located at easy-to-find location, central facade, possesses eye-catching street view to create convenient comfort for customers Up to now, The Coffee House has reached 160 stores covering 14 provinces and cities which are usually big cities, most of which are concentrated in Ho Chi Minh City and scattered in other provinces such as Hanoi and Nha Trang Trang, Vung Tau In addition, The Coffee House operates its delivery team from the call centre staff to the specific delivery staff who are deploying delivery services in the city via the Website thecoffeehouse.com and the phone app The Coffee House, in cooperation with the only food delivery app, Lala, and appear only on the Now app but only in places with a small order flow like

Da Nang and Can Tho

Place in Starbucks' marketing mix in Vietnam is a story about where customers can

own and enjoy its products Building direct and personalized relationships is a guide

in Starbucks' distribution strategy With this criterion, Starbucks developed cafes with

beautiful coffee space, through Starbucks App and retailers

Adapting to the development of technology, Starbucks develops an ordering application through the Starbucks App, allowing customers to place orders anytime, anywhere In addition, this brand also cooperates with hotels, airports and coffee shops in areas for office workers Only that much, we can see that Starbucks coverage

is enormous, customers can easily own Starbucks products and help Starbucks maximize profits

Thereby we see that Starbucks owns a more diverse distribution channel system than TCH, so the ability to reach and make a mark in the minds of customers is also better

Thereby we see that Starbucks owns a more diverse distribution channel system than The Coffee House so the ability to reach and make a mark in the minds of customers is also better But in return, The Coffee House has a much bigger coverage of stores in Vietnam than Starbucks.

4 Promotion

* Marketing online

Advertising (mostly digital marketing):

 Facebook marketing: The fan page of TCH has nearly 500,000 followers with exciting and interesting posts about promotions, articles about new product launches, or individual occasion wishes posted in Golden hour frames suitable for young people

 Youtube: With more than 2.87 thousand subscribers, and videos of creative change that have captured the hearts of customers

 Website: TCH has a beautifully designed, beautiful website Besides, the use of tools like Google AdWords makes it easier for TCH to reach customers

* Promotion activities and customer appreciation

- Promotion activities: Many attractive promotions, vouchers are valid for the frequency of thick

- Customer Gratitude

- Bean Accumulation: BEAN - a brand new unit for accumulating points at The Coffee House Rewards 3.0

-Keep membership

- New benefits

While TCH's competitors, Starbucks is one of the most innovative and innovative brands for media, advertising, promotion, event organization

The most seasonal activities of Starbucks include events, special promotions, logo printing on beverages, fish utensils, drinking glasses, thermos and collaborating with brands and influencers Limited editions

One of the most innovative forms of Starbucks promotion is Gift Card, to attract customers who have never used the service This program is for friends of former

customers, and the company uses the same customers to advertise for free With over

27 million fans on Facebook alone, and more than 2 million followers on Twitter have proven how Starbucks has a large number of customers, brand power at the top of the F&B industry worldwide

The above analysis shows that both brands are taking advantage of their strengths

to conduct trade promotion, promote images on the Internet, especially social networking sites commonly used among young people and writers (target customers) such as Facebook, Instagram, Each brand tries to build its own promotions, increase member benefits in order to increase customer loyalty to the brand and attract new customers.

5 The human factor in service - People

The Coffee House CEO Nguyen Hai Ninh said that the first customer he met was not the CEO, but the salesperson, the number of customers he met and talked to the CEO with his fingers Therefore, The Coffee House always pays attention to the quality of employees when recruiting The training of a good salesman is one of the keys to retaining customers, not just quality and price

Customers are an indispensable element in helping to spread the brand of the business The target customers of The Coffee House are students and working, travelling They use coffee not only for drinking, but they also enjoy, socialize, network, network, work

And Starbucks has built a platform to foster relationships, always putting employees first, encouraging employees to form close relationships Considered a "partner" rather than an employee, even part-time employees (in the United States) receive stock options and health insurance Former company president Howard Behar believes that employees who feel cared for will care for their customers

6 Process

Different stores will have different sizes, so the service process, as well as the number

of employees in each shift, is also different The above is the general process at The Coffee House stores that customers experience

Online ordering process: With just a few simple steps, you can enjoy the delicious and delicious drinks of The Coffee House

When customers call, Delivery Service - Delivery of The Coffee House will serve customers:

Welcome

customers

Take orders

Payment

Get the orders

Make beverages

Complete and display

Customer serving

Bring beverages, bread / pastries to guests

Fill in the receiving

information (name,

phone number,

shipping address)

Take your favourite

Up to 30 minutes you will have your favorite drink right away

Payment after receiving the drink

The staff will pick

up the phone to

receive the

request

The employee confirms the order and requests the receiving information (name, phone number and receiving address)

You should confirm the information again

Up to 30 minutes you will have your favorite drink right away

Payment after receiving the drink

For Starbuck, the service process at the store is almost similar to The coffee house Service process in distribution channels of sales through Starbuck App As follows:

Through comparison of service processes, we see in the current context and the trend

of consumer behaviour, the brands have a direct service process in stores quite similar

7 The physical element of service marketing - Physical Evidence

• External factors:

- Design: From the outside looking at any store of The Coffee House, the front of the shop is using glass, striking with the orange-black tone typical of the shop

- Signboard: The name of the restaurant 'THE COFFEE HOUSE' is large and bright, clearly located

- Logo: designed prominently by white letters on an orange background; this is also the dominant colour tone of this store chain

• Internal factors:

- Design: creating a "home" feeling as possible, making you feel like you belong here

no matter who you are

- Devices:

Dispensers are located in the area behind the order counter

TCH uses glass for guests to drink on the spot All customer service items have the name of the restaurant, 'THE COFFEE HOUSE', which is exclusively designed from cup holders, plates to pads

Not only serving individual drinks but also cakes and bread to eat should have a cake display cabinet for guests to choose easily

Sign up

for a

Starbuck

App

Log in to your Starbuck App account

Choose your favorite food

Complete the order Receive

• Other factors:

School uniform: Shirts and pants are the primary colour black, the left chest has the name of the white 'THE COFFEE HOUSE', uniformed from a waitress, bartender to security guard

Brochure: designed to introduce new products or all items in the menu of the restaurant

Starbucks offers a combination of product and service and I think it really does a good job in giving customers the best experience, so that they want to try it again and again Customers pay not just for cup of coffee or tea, but for overall enjoying their time When you enter the café you see clean, friendly environment, with cozy chairs, sofas, tables, book shelves, bright and “tasty” show case with those alluring pastries, menu with tempting coffee pictures… you see smiling welcoming staff in those green uniforms with Starbucks logo, you hear nice music which complements the atmosphere of the “place to be”

Summary: From comparing the 7Ps Marketing strategy of two big bosses in the

coffee chain in Vietnam show us that each brand has chosen a different strategy to penetrate the market and wants to dominate the target market that themselves aim for The Coffee House has been successful with the strategy of entering the market to compete directly with price competitors Starbucks with the advantage of an international brand asset is still gradually asserting its position in the high-end customer segment

Part B: Develop and evaluate a basic marketing plan

1 History of establishment and development of The Coffee House

In August 2014, The Coffee House (TCH) coffee chain was officially launched and continuously impressed with the rapid growth From the first store at 86-88 Cao Thang, up to now, the chain has been present in 6 major cities across the country (Ho Chi Minh City, Hanoi, Da Nang, Bien Hoa, Hai Phong, Vung Tau) At the pace of