GLOBAL MARKETING (MKT544) 1 | Page EXECUTIVESUMMARY Marketing Plans are a very vital piece of information that any company would have to produce before the very start-up of a business. It is a written document that lists down the necessary actions to achieve one or more marketing objectives. A marketing plan is business plan but focusing on the aspect of marketing. Therefore, in this case, this marketing plan is about The House of Coffee, a company still new, who is to become a distributor of coffees from established brands such as Nescafe, Radix and Old Town White Coffee to name a few. Using each benefits available, The Coffee House Sdn Bhd, distributes these coffee products mainly focusing on penetrating Vietnam market at the time being, simply because of the political and environment itself that allows for foreign investments. Having to analysis, the environment through the SWOT analysis, before actually plunging into the market, it could be seen that the market of Vietnam is seen as very favorable based on theoretical analysis of the strength, weakness, opportunity and threats. After many evaluations and considerations, The Coffee House Sdn Bhd has developed a two-tiered strategic market ing plan, which in the first tier; focus on elements of positioning, differentiation, segmentation, and also targeting. The second tier on the other hand consists of strategy elements that cover offer, value, distribution, communication, and CPM/PRM. A detailed supporting marketing plan helps to guide The Coffee House Sdn Bhd of what its effort should be in advertising and promoting the products available. Strategies that include, IMC (integrated marketing communication) are seen as very helpful. Other supports include channel members, promotion, website and even marketing research. It is a plan of the effort and actions to be taken throughout the business.
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EXECUTIVESUMMARY
Marketing Plans are a very vital piece of information that any company would have to produce
before the very start-up of a business. It is a written document that lists down the necessary actions to
achieve one or more marketing objectives. A marketing plan is business plan but focusing on the aspectof marketing. Therefore, in this case, this marketing plan is about The House of Coffee, a company still
new, who is to become a distributor of coffees from established brands such as Nescafe, Radix and Old
Town White Coffee to name a few. Using each benefits available, The Coffee House Sdn Bhd, distributes
these coffee products mainly focusing on penetrating Vietnam market at the time being, simply because
of the political and environment itself that allows for foreign investments. Having to analysis, the
environment through the SWOT analysis, before actually plunging into the market, it could be seen that
the market of Vietnam is seen as very favorable based on theoretical analysis of the strength, weakness,
opportunity and threats. After many evaluations and considerations, The Coffee House Sdn Bhd has
developed a two-tiered strategic marketing plan, which in the first tier; focus on elements of positioning,
differentiation, segmentation, and also targeting. The second tier on the other hand consists of strategy
elements that cover offer, value, distribution, communication, and CPM/PRM. A detailed supporting
marketing plan helps to guide The Coffee House Sdn Bhd of what its effort should be in advertising and
promoting the products available. Strategies that include, IMC (integrated marketing communication)
are seen as very helpful. Other supports include channel members, promotion, website and even
marketing research. It is a plan of the effort and actions to be taken throughout the business.
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BUSINESS DESCRIPTION
House of Coffee Sdn.Bhd is a coffee distributor companies that distribute many types and brands of
coffee. It is a Malaysian based company. Most of the product available at companies websites
(www.houseofcoffee.com) is came from various type of establish brand like Nescafe, Indo Café, Radix
Coffee, Power Root Coffee and many more.
The starting capital for House of Coffee is RM 65, 000. The head quarter is located in Dungun,
Terengganu with starting of four skilled workers. The administration department is only consist of the
shareholders itself to minimize the cost of paying the salary.
The main objective for the establishment is to sell wide range of coffee product through online market.
Most of the product offered is came from establish brand. Due to that factor, our company takes thisopportunity to be the distributor to market the product globally.
Currently the company future expansion is to enter into Vietnam s market. The selection of Vietnam is;
Vietnam is being second higher company after Brazil in producing coffee. Our company wants to explore
new market development and gain more exposure.
House of Coffee Sdn Bhd is emphasizing on the use of Business-to-Customer (B2C) concept and
Business-to-Business (B2B) concept in distributing the product. Our company is emphasizing this two
concepts because we can see the demand from both market models is high and can generate high
revenue for the company.
In order to maintain company position in the market, company is focusing at the company strategic
direction which is based on the goals and mission set up earlier. It is suitable with the company
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c. PEST Analysis
Political and Legal Environment
Starting the 2006, the Unified Law Enterprise 2005 (ULE) and Common Law on Investment2005 (CLI) replace the Law on Foreign Investment (FIL) and governing foreign direct and
indirect investment in Vietnam. By applying the new act, it allows the foreigners to invest in
most of the Vietnam industries such as agricultural activities, new materials, high
technology, development research, environment protection and others.
From that House of Coffee Sdn. Bhd try to penetrate the Vietnam market because of the
political and legal environment that applied by the Vietnam government is allow the foreign
investment in the country.
From that House of Coffee Sdn. Bhd try to penetrate the Vietnam market because of the
political and legal environment that applied by the Vietnam government is allow the foreign
investment in the country.
Economic Environment
Starting 1986 the Vietnam government introduced the economic renovation, which is
government expresses the strong support for private sector. The Gross Domestic Product
(GDP) level increasing year by year starting from 2000 until 2007 but it becomes slower in
2008 because of the world economic downturns.
In order to increase the income level, Vietnam government encourages the foreign
investment that may supply money to the country for the economy and social activities and
country developments.
Social Environment
The international communication system has been upgraded in Vietnam as a respond
towards the increasing market demand of the coffee consumption among the Vietnamese.
In order to deliver the message of the product offering, House of Coffee Sdn. Bhd using the
traditional communication such as newspaper and also the electronic communication tools
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House of Coffee Sdn. Bhd should consider the best language to approach the Vietnamese.
House of Coffee Sdn. Bhd choose to use English in advertise the product offerings in web
site (www.houseofcoffee.com), Vietnam newspaper such as Vietnam Investment Review
newspaper, and Vietnam magazines such as Vietnam Economic News Magazine and
Vietnam Economic Times Magazine.
Technological Environment
Technological environment here mean the latest technology that be used by House of
Coffee Sdn. Bhd in ensuring that our coffee products reach its targeted destination for
example customers without jeopardizing the high quality of the product offering especially
in terms of packaging and goods delivery. Since House of Coffee Sdn. Bhd is a distributor and
not manufacturers, the company see technology advancements that effects out companyenvironment as the channels that help us with our distribution. These channel members
may include transportation companies and also logistic arrangements. The following
elements are explained in detailed as below.
Transportation
Transportation is a medium that is used in order to move our products from one place
to another. It could be through many forms which include rail, road, air or sea. In our
case, The House of Coffee Sdn. Bhd. we begin by sending our coffee products to
Kemaman Port which is located in Terengganu. This is due to the deep sea that the port
has which makes it easier for ships to sail through.
Other than that, travelling to West Port in Klang, Selangor would just seem too
ridiculous. Shipping through the ocean medium would take an estimated time of at
least 5 days. Later, from there, in order to transport our coffee to local intermediaries,
we prefer using road transportation to make sure that our products reach our
customers, even though roads in Vietnam is well-known for its traffic congestions, butaccidental occurrence is statistically low, especially in 2002 till 2003 (Transport in East
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SEGMENTATION
House of Coffee is optimizing on mass segmentation. This is because, the population Vietnam have a
larger size of the segment, they have almost 85.2 million of populations. This huge population have
giving an opportunities to the company in order to distribute the products. The opportunities thecountry has to offer have been greeted enthusiastically by foreign investors, and since 1988 investment
pledges have reached over 1,200 foreign investment projects having an aggregate investment capital of
over US$16 billion. Besides that the coffee is one of the largest agriculture product produce by the
Vietnam.
TARGETING
Due to the implementation of the mass segmentation, House of Coffee customer is targeted globally.
Currently companies are serving the Malaysian market and plan to enter into Vietnam s market. At this
phase, company is trying to satisfy customer needs and want by deliver good quality product from good
branded coffee product. Moreover, research also will be conducted from time to time to time in order
to study customer needs and wants according to their lifestyle and culture.
TIER 2 E-MARKETING STRATEGIC PLANNING
THE OFFER : PRODUCT STARATEIES
As company is implementing online selling it will enable company to provide customer with the
latest information. As being mention earlier, House of Coffee is implementing business-to-
customer (B2C) and Business-to-Business (B2B) business model. For the B2C market, individual
customer can purchase the product as much as they want. Discount will be given based on the
quantity and loyalty record. In favor of the B2B market, company try to serve customer or
company that want to purchase the instant coffee in large quantity or in bulk purchasing. They
will be special pricing scheme for each bulk purchasing.
THE VALUE : PRICING STRATEGIES
The House of Coffee must decide how online product prices will compare with offline
equivalents. Due to that factor, House of Coffee had differing the cost of sorting and delivering
products to individuals through the online channel as well as competitive and market concern.
Currently company is implementing in Cost Plus Pricing and Dynamic Pricing.
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D. Price
Bil Items US Dollars Ringgit
Malaysia
Vietnam
Dhong
1 Nescafe 2.5 9 4 0,000
2 Vitality 3.5 13 56,000
3 Radix 4 .5 17 72,000
4 O-Town 3 11 4 8,000
E. Channels
y Company has selected local intermediaries located at Anh Phuong Store,
located at The Ben Thanh Market, The No.3 Door-Weast Gate, Ho Chi MinhCity.
F. Customer management activities
y Company provides the email address to the customers so that, they can
email any suggestions, recommendations, problems and so forth directly to
the company. Besides that they can resent the product that damage and get
the money back guarantee. For the loyal customers, they can get discount
and rewards.
G. Websites
The company websites is www.houseofcoffee.com.
H. Marketing research
In order to ensure the success of the company, companies have distributed the
questionnaires to gather the information and the feedback from the customersabout the products, before and after sales. They also make a research about the
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6.0 EVALUATION PLAN
Once the e-marketing plan is implemented, its success depends on continuous evaluation. This means,
House of Coffee must have tracking systems in place before the electronic doors open. The evaluation
plan consists of two stages, which are:-
Performance Standard
Marketing Manager responsible - reporting all financial expenditures, including personal
salaries and direct expenses for the segment of the product.
Marketing Manager - adherence to the project budget and will report overages to the
company Chief Executive Officer on monthly basis.
Product offering will be evaluated on last quarter basis to determine profitability.
Product development and market positioning expenses will be distributed over 1 year
period and will be compared with gross income generated during the previous and same
period.
Monitoring Procedure
Project management concept.
Perpetual comparison of actual and planned activities will be conducted on a monthly
basis for the first year and on a quarterly basis after the initial implementation phase.
Each project team is responsible for determining what changes must be made inprocedures, product focus, or operations as a result of the studies conducted in its area.
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CONCLUSION
It could be concluded that even though as a starting company, The Coffee House Sdn Bhd has
fully understand the situation and the flow of what they are to face in the business environment.
Vietnam is country that many people on first impression may think that it is unsuitable for businesses,but The House of Coffee Sdn Bhd, saw this as an opportunity to spread and distribute local coffee
products from Malaysia and penetrate a different market. Thus, each steps and guideline has to be
planned and discussed in detail. The House of Coffee Sdn Bhd has identified of what needs to be done
and before actually penetrating Vietnam. Even though that strategies and goals are outlined, in this
marketing plan, it is just based on theory; therefore any changes of the environment could affect a small
organization as small as The House of Coffee Sdn Bhd. But, even so, close monitoring plays an important
rule so that any appropriate actions could easily be taken if the condition needs it to. It could be seen
that by all means, The House of Coffee Sdn Bhd, is trying its best to maintain a relationship with its
customers with programs and strategies that include individualization and also interactivity. This is due
to the reason that The House of Coffee Sdn Bhd sees its customers as a very highly priced asset and if
possible is to maintain the relationship instead of just a transaction. The House of Coffee Sdn Bhd may
be spending a whole lump sum of cash in order to promote and advertise their business operation be it
online or a web page. This action taken is to hopefully create even the slightest bit of awareness to its
prospected customers, which is anyone, anywhere. The tagline of Coffee for All is as suitable as the