But in all of these, Cộng Coffee is the brand that is arguably the most popular with unique coffee-related drinks and old style decorating.. Established in 2007 with a unique idea, Cộng
Trang 1Nowadays, going to cafés is not only a way to take a break after long hours of working but it has become a lifestyle Along with the lifestyle of coffee is gradually becoming a trend, many cafeterias are also catching up with consumer's needs There are many coffee shops in Hanoi which have done these things like Highland Coffee, Cộng Coffee, Aha, Kafa, … But in all of these, Cộng Coffee is the brand that is arguably the most popular with unique coffee-related drinks and old style decorating Established in 2007 with a unique idea, Cộng has reminded its customers of the memories of Hanoi in a coffee space
The birth of Cong Coffee is very special The founder of the cafe community was not originally a businessman but a singer and the idea of coffee business does not come to her through the business plan as well as other big chain stores Mrs Linh Dung – The founder of Cộng Coffee said she was very scared to run a business because in her childhood, her mother sold coffee and refreshments and the house was always crowded However, her fate may has been tied to the business with cafés
The predestined business relationship comes from the difficulties of her friend Her friend has a small coffee shop, renting an area of 28m2 at 152D Trieu Viet Vuong (Hanoi) which had not had customer about 3 months That friend came to visit Linh Dung's house and very impressed in the way she designed the furniture randomly from old furniture They express a rustic, warm theme The friend asked her to redesign the old cafe and run it at the same time After 6 months of cooperation, Mrs Linh Dung has been managed this coffee shop by herself and that’s the time Cộng Coffee was born
A new name “Cộng” can be understood in many ways It is simply inspired by the first letter of the catchphrase: CỘNG HOÀ XÃ HỘI CHỦ NGHĨA VIỆT NAM But according to the founder, Mrs Linh Dung, this name is the way to remind the history of people, history of the country This is a new business model, inspired by taking advantage of the usefulness of old household appliances Cộng Coffee has a quiet atmosphere and a bit of nostalgia in every corner Cộng give customers a
Trang 2decoration what is the closest to daily life, from glazed iron shifts or wooden tables with the style “Cộng” decoration Founded in 2007, Cộng’s mission is to arouse imagination and provide customers with different emotional experiences about Vietnam Cộng is constantly innovating with the goal of moving forward to bring Communism to the world; Spreads and inspires the difference with each member's heart
In front of the strategic vision of Cộng Coffee, we will use the SWOT model to employ a strategy for Cộng Coffee and give some strategic suggestions for Cộng Coffee at 45 Quang Trung, Hoan Kiem, Hanoi
Trang 3II SWOT Strategy:
1 Internal Environment
a Strength
- Creative decoration : The reason why Cong cafe is still chosen by many people is
its unique in presenting old stuffs in the coffee shop When come to Cộng, you will feel like you are living in the old times, a Cong's signature Using old stuffs in a skillfully way, knowing how to make full advantage of the space by displaying pictures in Vietnam war Young people come here not only for their curiosities but also to be able to live in the old times Especially, Cộng café is a frontier in this old decoration It is pointed that decoration is the greatest competitive advantage of Cộng
It is can attract people from all ages no matter who they are
- Location : Cộng café has location near office buildings and schools So here is the
perfect location for officer to have time in order to relax during their breaks or for parents to sit and drink coffee while waiting for their kids Cộng café also
is located near the crossroad so it can easier to attract people
- Staff : When customers are familiar with the image of staff dressing special clothes,
wearing a white apron, the owner is cleverly using the image of the staff wearing the uniform with the color of the soldiers - the shirt of the old army with a canoe Staff are also well-trained, both their skills and manners
Make customers feel comfortable
- Drinks and food : Cộng café have their own unique drinks such as: Cot dua cacao,
Ca phe cot dua, bac xiu Not only have drinks, Cong café also have snacks like: dried sunflower seeds, peanuts, dried beef,…
Thus, customers can both enjoy their favorite drinks and snacks
Technology: Although the decoration is in the old style, Cộng cafe also pays
attention to the issues of intelligent technology For example, customers who purchase things will receive an electric device It will sound to indicate that drinks are complete so customers can go to the counter to receive their drinks
Trang 4b Weaknesses
- Located on an one-way street : Supposed a thirsty group of motorbike riders
decide that they want to stop by at a coffee shop for drinks but they have already passed Cộng (which is located near the beginning of Quang Trung Street) In this case, they will choose to keep going and sit at Aha or All day coffee instead, because this option will cost them no time turning around
Lose a small amount of customers because of the location
- Few parking spots : On our trip to Cộng, we realized that it only has 10-15
parking spots for motorbikes And our full group easily filled all those spots, which means there would haven't been enough space for more customers to park This is very inconvenient, considering the target customers of Cộng are students, teenagers, who mostly travel by motorcycles and motorbikes And of course, there is not enough space for cars, except for the parking meter about 10m in front of Cộng, which obviously costs money
Inconvenient for customers in general and customers who travel by cars
- Considerably high prices: In comparison with other coffee places such as
Aha, Kafa - very big competitive rivals, Cộng has a relatively expensive menu: (Photo menu)
+ The cheapest drink costs 35,000 VND
+ The most expensive drink costs 55,000 VND
+ Drink cost 45,000 - 50,000 VND on average
Won’t be suitable for young students who have small allowance or workers with below average wage
- Few employess per shift : Each shift has 2-3 employees so too many
customers will lead to slow serving
- Decoration Special decoration : While this has been mentioned as one of
Plus’s strengths, it also effectively to its weaknesses Because the decoration and style is so unique (nostalgia for Vietnamese war times, with signature features and old stuff together with dim lights), it can not be preferred by customers of all age For instance, some of the youngsters our age still feel
Trang 5that there aren’t enough lights for reading books, doing research on computers, etc
2 External Environment
a Opportunities
- A lot of offices and school : Through the field trip we realized that there are
many offices and schools around the street where CỘNG is located After long hard-working morning, café shops are suitable places for busy office worker to have lunch or take a break and CỘNG is not a bad idea In every afternoon, around 5:00pm to 5:30pm, students in the neighbor primary school finish their study and many parents wait to pick up their children In the meantime, it is possible for them to wait in a café Besides, there are several high schools nearby such as Trần Phú, Việt Đức… The demand for taking pictures at unique decoration places of teenagers nowadays increases rapidly
Opportunities for CỘNG café broaden its customer range
- Convenient traffic : As we mentioned before in the Weakness part, CỘNG
located on one-way road But it also like a huge opportunity of CỘNG Traffic jams are rarely happened on the one-way street
So the regulars could reach to CỘNG with ease
- Full of trees on the sidewalk : Protecting the environment is a heated
“trend” and often discussed topic
So having more trees on the street is a huge strong point which will generate more attraction for customers
- Other playing places around : The fact, Hoan Kiem Lake is one of the
most famous place where many entertainment services are concentrated The distance from CỘNG to Hoan Kiem Lake is not far
CỘNG will easy become a good option for young generation to hang out and have a chit-chat with their friends
Trang 6b Threats
- Many competitors participate in the market: Nice location near the center is
the ideal location of cafes to appear Around Cong we can mention rivals such
as Trung Nguyen Legend Café, Terrace Café, The coffee house, Café Mai, … Those are all popular brands with distinct advantages and strengths They have
a certain market share In particular, space, decoration, service, price and quality of the above brands immediately receive customer’s satisfaction so they quickly capture a number of patrons In recent time, The coffee house has focused on promoting advertising, developing applications for ordering drinks, earning points, updating drinks regularly to diversify menus for customers to choose Trung Nguyen Legend Café focuses on promoting the quality of coffee products with stable and carefully selected input materials
Highly competitive market and the presence of well-known brands around Cong
Café 45 Quang Trung makes the store more difficult to attract customers, especially when they also have good potential and ability
- Psychology of customers: like trying new things Today, most customers tend to
like change They do not tend to point to just come to one place in a long run At first, customers are interested in going to one place, but when they are familiar, they will not continue to maintain this hobby Instead, they will experience other coffee shops and this is very easy, especially as more and more new coffee shops appear There are a number of customers who will maintain a preference for a familiar coffee shop because of the speciality there (maybe quality of service, special space) but this number is not high enough
Trang 7S W
1,Creative decoration
2,Location
3,Staff
4,Drinks and food:
5,Technology
1,Located on an one-way street 2,Few parking spots
3,Considerably high prices:
4,Few employess per shift 5,Decoration Special decoration
1,A lot of offices and school
2,Convenient traffic:
3,Full of trees on the sidewalk:
4,Other playing places around
1,Many competitors participate in the market:
2,Psychology of customers
III) Plans
1) S-O
We can find out some solutions to improve business efficiency of Cộng through strengths and opportunities by the SWOT matrix:
a) S1 – O1, O4
Cộng café has creative decoration which attracts people from all ages to come here and have some coffee There are a number of offices and schools around and officers and students’ parents will find a place to take a break at rush hours so Cộng is a good idea Besides, Cộng has several playing spaces near where it is situated such as Hoan Kiem Lake so the youngster can hang out after having a drink at Cong
Cong has an opportunity to broaden its customer range with their decoration and the places around it
Trang 8 Beside that Cong cafe can organize some appeal activities to attract more customers from all ages to visit it
b) S2 – O2, O3
This café locates on the front of the crossroad so it easily catches eyes of people to pop in and get some coffee Quang Trung street is one-way street so traffic jams are rarely happened The clients will not have to worry about traffic congestion Especially, the road in front of Cong has a lot of trees to bring shades to customers who sit outside even to the motors which parks on the sidewalk
The opportunities from location helps Cộng to attract clients and also be the great idea for officers or parents who waiting for picking up their children Besides, having a lot of trees contributes to protect the environment
c) S4, S5 - O4
Cộng cafe has its own unique drinks and other snacks and also has the location as
an advantage like near Hoan Kiem lake More than that, it pays attention to the issues of intelligent techniques
All of them above are the reasons that Con
g can attract young generation to become their regulars
Just having the youngsters is not enough, Cong should develop to appeal more the middle-age customers Not everyone knows how to use the model techniques so the staffs should instruct carefully to the one who don’t know how to use it Besides, the cafeteria should have some other light foods for the officers at lunch
so they can eat and drink right there
Trang 92) O - W
We can find some solutions through weaknesses and opportunities:
a) O3 - W1:
Despite located on an one-way, Cộng is located at the beginning of Quang Trung street with clear view, easy to see And in one-way street, there are few traffic jams
so the solution for Cộng is to install nameplates, so people can easily to find them
on the road
b) O1 - W5:
We all know about Cộng with the decoration and style about Vietnamese war times, with signature features and old stuffs together with dim lights, plus near schools and offices, but such designs are not yet suitable for all ages To be able to expand more customers, Cộng can still retain its design and add more modern design, combining the present and the past
c) O3 - W5:
With the plus point that there are many trees on the street, Cong uses this opportunity to expand the shop to the outer space, design outdoor tables or balconies which has a lot of light which is suitable to work and study
d) O1 + W3:
For customers who are young, Cong should take this opportunity to move to new business direction - self-service This will help customers to be proactive with their drinks and overcome the weakness of few employees
Trang 103) S - T
Look at SWOT matrix, we can figure out some remedies to tackle business efficiency issues of Cộng through Strengths and Threats :
a) S1S3S4S5 - T1:
As mentioned, a lot of Cộng’s competitors have sprung up recently However, most of them aim to decorate their cafes with colors, furniture, atmosphere in a modern way However, Cộng is in the spotlight with its difference It is well ahead
of its rivals in decoration and recreation the vintage atmosphere of Vietnam Customers coming to the cafe not only enjoy the food and drink but also experience the feeling of returning to the past Decoration is such a strong competitive advantage that it is problematic for Cộng’s rivals to cope with
Cộng should keep its decoration or be better off enhancing it by changing the background of the room to different periods in the past, for example: after Đổi Mới, early 2000s,
Staff of Cộng are well trained in skills and manners, but theirs from Cộng’s rivals are the same In order to keep ahead, Cộng should continue training its staff in proper and professional ways; impose a penalty for undisciplined staff and give reward for the ones that have good performance each month
To maintain staff as a competitive advantage, Cộng should request its staff
to obey the rules, dismiss who works poorly and reward the hard workers
Cộng is a cafe, so the food and drink must be outstanding to attract customers and deprive other competitors of overtaking it Clients have a lot of choices when they are at Cộng and some of its drinks are exclusive That’s make Cộng coffee unique and almost no rival can compete with it
Cộng has to keep the secret recipe of its food and drink Moreover, Cộng should spend more on inventing new kinds of drink to diversify the menu so that the cafe can approach different types of customers
Having a vintage style doesn’t mean that Cộng cannot apply modern technology to the way it works The electric card beeping when your order is finished is a fascinating stuff Technology has been an important part of earning the reputation for Cộng coffee