Strategic Marketing Project Trung Nguyen Cafe Chain

Running head: STRATEGIC MARKETING PROJECT FOR TRUNG NGUYEN CAFÉ CHAIN1

Strategic Marketing Project for Trung Nguyen Café Chain

Group 6

Le Thi Hong An

Nguyen Tan Tai

Truong Trung Tai

Nguyen Thi Phuong Tra

Dinh Thi Mai Trang

Nguyen Minh Thien

Marketing System / MBUS 3.2

December 24th 2012

Dr. Nigel Bairstow

STRATEGIC MARKETING PROJECT FOR TRUNG NGUYEN CAFÉ CHAIN2

Executive summary

Trung Nguyen café chain was found in 1998 which has become one of the famous brand names

in Vietnam. With a rapid increase of the number of store in its chain, the channel management

based on franchise system has many critical issues. Besides, with the penetration of many

international famous brands in the coffee supply chain, Trung Nguyen is confronting aggressive

challenges. After internal and external analyses, the strategic marketing project finds out Trung

Nguyen‘s objectives that are satisfying its current customers and increasing market share. The

project suggests a marketing mix with 4 Ps which product (service) strategy is focus on to

diversify the menu to meet customers' different tastes and to apply a quality standard

management throughout the chain for staff training program, infrastructure and facilities; A

united pricing strategy which is equal to main competitors will be applied for whole chain; For

place strategy, Trung Nguyen still selects franchise channel for expanding its business;

Promotion strategy will concentrate on social media and innovative promotion programs.

STRATEGIC MARKETING PROJECT FOR TRUNG NGUYEN CAFÉ CHAIN3

Strategic Marketing Project for Trung Nguyen Café Chain

Trung Nguyen, which was established in Buon Me Thuot in 1996, is a largest coffee

producer and distributor in Viet Nam. Trung Nguyen owns various coffee brands such as

Creative Coffee, Weasel and Legendee, Passiona, G7 instant coffee, etc… Beside those brand

names, Trung Nguyen also has been operating a nationwide franchise system, called Trung

Nguyen coffee shop chain since 1998. After 14 years, Trung Nguyen has had more than 1,000

outlets throughout Viet Nam and other countries such as Japan, Thailand, Cambodia, Malaysia,

and Germany. However, from recent year, along with the store number increasing, their market

share oppositely has decreased a little. This research will investigate in analyzing Trung Nguyen

coffee shop chain situation, declaring what is the reason for this slightly down market share and

show some marketing suggestions for reversing this decreasing.

Situation Analysis

Company Analysis

Trung Nguyen's resources. Production capacity demonstrated in a number of

characteristics such as financial capacity, the ability to supply product, product quality, and so

on. In 2005, the first Trung Nguyen Coffee factory put into use coffee processing plant roasters

in Buon Ma Thuot City, with funds invested more than $ 10 million. By the end of 2012, Trung

Nguyen coffee has four processing plants with a total capacity of 120,000 tons per year (Ha,

2012) Trung Nguyen coffee is also known as a business community. Currently, The Trung

Nguyen Group has nearly 2000 employees. In addition, it is also indirectly created jobs for more

than 15,000 employees through the franchised coffee shops across the country.

Culture of Trung Nguyen coffee built on the foundation of five core values and three

beliefs. This is expressed throughout its logo and slogan. The slogan is the most important of the

STRATEGIC MARKETING PROJECT FOR TRUNG NGUYEN CAFÉ CHAIN4

brand is delivered to consumers, the slogan "from creative sources" of Trung Nguyen will be

reflected in expectations of Trung Nguyen coffee consumers always have new ideas, ideas

creativity to create success for them.

Business strategy. Product strategy, product delivery, client positioning, and

communication are the keys of Trung Nguyen’s success (Do, V.T., 2012). Trung Nguyen has

created a sequence of diverse products in three distinct product lines is a universal product,

intermediate and advanced. Trung Nguyen offers products to market through a franchise system

of distribution channels including traditional channels, G7 Mart supermarket. In addition,

TrungNguyen is interested in developing the brand Trung Nguyen Coffee franchised chain. Up

to now, the Trung Nguyen coffee system development up to 1,000 coffee shops in Vietnam and

franchise stores in other countries such as Japan, Singapore, Thailand, Cambodia, China, Ucarine

U.S., Poland ... Trung Nguyen coffee is one of the company who has a largest franchise network

of Vietnam.

Strengths and weaknesses. Strengths of Trung Nguyen coffee is as much experience in

producing and blending coffee. Factory is located at the position of the good material, rapidly

growing franchise system, Trung Nguyen coffee brand in a distinctive ethnicity. Besides, there

are some weaknesses such as inconsistent quality, pricing among franchised stores. It seems that

there is no standard in chain management

Market Analysis

In the view of coffee houses companies, Vietnam is one of most attractive market in the

world because of its potential profitability (See Appendix A for more detail about Vietnamese

market). Although Vietnam is second largest coffee producer after Brazil, accounting for more

than 14% in market share, its coffee consuming rate is very modest compared with other

STRATEGIC MARKETING PROJECT FOR TRUNG NGUYEN CAFÉ CHAIN5

countries. A Vietnamese person consume 1.15 kg coffee per year, still considerably lower than

other countries such as Brazil 5.8 kg, Laos 1.4 kg, Philippines 1.38 and the most consuming

country is Finland with 12.26 kg coffee per year (Vietnam Annual Coffee Report, May 25,

2012). One of the most popular favorite’s entertainment ways of Vietnamese people is going to

coffee house with friends, family or with customers. This traditional culture in line with rapidly

growing economy, we have witness a surge in coffee house industry. The coffee house opening

in recent years has reach a very aggressive pace, this become a trend in selection of young

entrepreneurs to start up their business. Among thousands of coffee houses in Vietnam, we can

easily recognize there are two largest coffee house chains: Trung Nguyen and Highlands (See

Appendix B for more details)

Fast food service, 384Coffee shop /Bar, 2079.5

Restaurant; 13638.7

Street stall; 10753.7

Figure 1: Market share of Vietnam Food Service – 2010 , in million USD unit. Adapted

from “Market Analysis Report 2012: Foodservice profile Vietnam,” by International Market

Bureau, Agriculture and Agri-Food Canada, 2012, p.6.

In 2010, total market value of Vietnam coffee houses industry is about 2 billion US

dollars and increasing with growth rate of 13% per year until 2015 with forecasted value of 3

billion US dollars. Experts in the fields say that the market has still so fresh, and other companies

STRATEGIC MARKETING PROJECT FOR TRUNG NGUYEN CAFÉ CHAIN6

have too many opportunities in Vietnam, especially some strong brand name such as Starbucks.

Therefore, in next few years, we will see the competition in the market becoming more severe.

This higher competitive situation will push local companies have to adapt to new situation and

change their strategy as soon as possible to survive in market.

2005 2009 2010 2015 - forecast0

500

1000

1500

2000

2500

3000

3500

965.4

19092079

3053.3

Figure 2. Market value of Coffee shop and bars in Vietnam, in million USD unit.

Adapted from “Market Analysis Report 2012: Foodservice profile Vietnam,” by International

Market Bureau, Agriculture and Agri-Food Canada, 2012, p.6.

Competitor Analysis

Consumption of a potential market of 90 million people with the habit of using coffee

everyday in Vietnam has made the market attractive irresistibly. Following is an overview of

competitive environment throughout the Forter Five Forces Analysis.

The power of suppliers. Trung Nguyen has invested large coffee plantations to produce

raw material for coffee beans production. It is one of few brands who have a completed supply

chain from providing coffee beans (raw material) to cup of coffee (end-products) to the last

STRATEGIC MARKETING PROJECT FOR TRUNG NGUYEN CAFÉ CHAIN7

consumers. In other words Trung Nguyen is a supplier of raw materials for their production. Thus,

for Trung Nguyen, there is no competitive pressure from suppliers.

The power of buyers. As customers are also people using service and the value of service

is not high, the power of customers is low.

Threat of new entrants. With the development in main urban cities in Vietnam, café

chain is one of the most attractive industries. Besides, the globalization trade policy, Vietnam has

become a potential market; as a result, Trung Nguyen has faced to new entrants.

Starbucks is one of the most famous international brands in over the world with a network

of 17,800 coffee shops in 49 countries. They have a long history with the first coffee shop opened

1971. And they open the first coffee shop in Vietnam at the beginning of December 2012. In the

near future, Starbucks is one of the strongest competitors which Trung Nguyen will confront with.

Threat of substitute products. Trung Nguyen cafés chain not only provides coffees but

also an experience of enjoys coffee in special space. Hence, it may not have substitute products.

However, with the popularity of coffee machine and convenience of instant coffee, people who

loved coffees can enjoy cup of coffee at home.

Competitive rivalry. As what we have mentioned, there is a high-level competitive in

café chain industry. This means that Trung Nguyen coffee has many direct and indirect

competitors. For the project, we focus on its major competitor: Highlands café chain.

STRATEGIC MARKETING PROJECT FOR TRUNG NGUYEN CAFÉ CHAIN8

56.60

6.00

0.60

0.40

0.20

0.40

35.80

Trung Nguyen

Highlands Coffee

Gloria Jeans

Coffe Beans & Tea leaf

Buds café

Angel-i-us

Others

Figure 3. Market share by brand - 2010. Adapted from “Market Analysis Report 2012:

Foodservice profile Vietnam,” by International Market Bureau, Agriculture and Agri-Food

Canada, 2012, p.8

Why Highland Coffee is the main rival? Highlands Coffee is a popular Vietnamese brand

coffee with 60 branches in Vietnam. They have just chosen stores in the beautiful facades in the

cities. This is not only show Highlands coffee’s level but also position Highlands Coffee is a

luxury coffee brand. Besides, although they provide traditional taste, they also have a diversified

menu from the world's famous coffee to Vietnamese traditional coffee dishes with competitive

prices in a comparison of Trung Nguyen. With the way of business without franchise, they make

sure to serve the identical quality throughout their supply chain so that they bring to customers

the same experience in every Highlands’s coffee shop in Vietnam.

STRATEGIC MARKETING PROJECT FOR TRUNG NGUYEN CAFÉ CHAIN9

Customer Analysis

First of all, we analyze the coffee culture traits of Vietnamese people. Unlike western

countries, Vietnamese love to taste real strong black coffee. Actually, they would rather drink

pure coffee than coffee with milk or mixed coffee with industrial chemical. Another important

characteristic of Vietnamese coffee culture is the way they taste a cup of coffee. People enjoy

seating along the street, talking to friends, and waiting for café drops. As a result, coffee shops

are usually placed along the street, in the crowded residential area.

The next point that we need to make clear is that what people need in a coffee shop. So

the first need is drinks. It is obviously that most consumers of Trung Nguyen like a hot charming

cup of coffee or a glass of coffee with ice. However, a number of consumers cannot drink coffee.

They go to Trung Nguyen coffee shop is not for coffee but actually for their business and their

friends. In that situation, other drinks such as fruit juice, soft drink must be served. There is no

doubt that people going to the shop not only for a cup of coffee but also for a place. They also

need an open environment with fresh air, beautiful view.

Real life observation reveals that lots of consumers of Trung Nguyen coffee shop chain

do their purchase at weekend. In working time, the number of customers is lower. They are

usually white collars and entrepreneurs who need to meet their customers, visitors from other

places, non-working people. The most crowded time is usually at the end of the day, especially

after work.

It is easy to recognize that there are many factors that affect the decision of the customer.

First, price is supposed to be the first factor that affects consumer decision. When price is higher,

customer will spend less time and money on coffee shop and vice versa. Second, coffee quality

and taste are the most vital reason for a customer to visit a coffee shop. So a stability of quality

STRATEGIC MARKETING PROJECT FOR TRUNG NGUYEN CAFÉ CHAIN10

will likely form the customer’s loyalty. Another factor is the convenience of coffee shop. In

other words, customer not only enjoys the quality of drink but also they care about the service.

They prefer well-equipped coffee shops with comfortable sofa, Wi-Fi, and a well-trained sale

staff. The last factor that we should not ignore is place of shop. This factor is vital important to

upper class, who do not care much about the price but for time and service.

With premium price strategy, Trung Nguyen target market is the middle and upper class

customer in society. Although there is no restriction to other class, people with high income or

entrepreneurs are those who visit coffee shop more frequently. Customers, who usually enjoy

coffee at Trung Nguyen coffee shop, are generation Y, generation X and baby bombers. Younger

people, family with children are seldom attracted by coffee shop chain.

Environmental Analysis

Beside those conditions such as current market, customer, competitor…, Trung Nguyen

coffee shop chain also be affected by other uncontrollable factors:

Political factor. Vietnam is on the way to integrate with other countries all over the

world. It is the good opportunity for Vietnamese enterprises join to global market and opening

their activities. With the coffee shop business plan, it is easy for foreign brands join our market.

They are not only competitors, but also the motivation for each one effort to satisfied customers.

Economic factor. Economic crisis is also getting influences to the coffee shop market.

Customers compare and find out another way to save their money. They may have instant coffee

instead of coming to coffee shop, or choosing another shop to have the comparability price.

Decreasing revenues let these shops minimize their business and find out new markets. The

penetration of new foreign coffee branches will be more attracted than the old domestic branch,

especially to the youth.

STRATEGIC MARKETING PROJECT FOR TRUNG NGUYEN CAFÉ CHAIN11

Social factor. Vietnamese people have special coffee traditional and culture. Coffee shop

is the common place for many activities: meeting each other, gathering people, negotiating with

partners, working, and even getting pause. Therefore, coffee zone is always crowded.

Besides, with the chain of a thousand coffee shops in Vietnamese territory, and many

coffee shops all over the world, Trung Nguyen has a broad market. Its attractive flavor and taste

satisfy many demanding customers. Focusing on coffee shops in big cities which is the most

crowded like Ho Chi Minh City, Hanoi…, Trung Nguyen has big potential customers with high

educated and high income.

Technological factor: The introduction of instant coffee and automatic coffee makers

gives customers another choice for their coffee habit. They can easily serve themselves a cup of

coffee inside their house or their office.

Environmental factor: With tropical climate, Vietnam is the best place for coffee

planting. In 2012, Vietnam is the largest coffee exporting country all over the world. That is the

advantage for developing coffee business.

Legal factor: In recent years, Vietnamese government has particularly focused on food

safety and hygiene. Every food service including coffee shops have to has the certificate for this

stuff. It makes their customers rely on what they are serving.

Summary. Considering outside environment is a useful tool for any business understands

the industry situation as a whole. As this time, Trung Nguyen coffee shop chain has many pro

and cons also. The thing is how to balance the benefit of both businessman and customers, attract

more customers even in this economic crisis and competition situation.

Running head: STRATEGIC MARKETING PROJECT FOR TRUNG NGUYEN CAFÉ CHAIN 12

SWOT Analysis

Running head: STRATEGIC MARKETING PROJECT FOR TRUNG NGUYEN CAFÉ CHAIN13

Summary. Trung Nguyen has competitive advantages based on supply chain from coffee bean

manufacturing to coffee shop supply. Trung Nguyen, a familiar name with local persons,

Vietnamese government support. With local person’s habit with strongly taste matching with

Robusta coffee (Thomasson, 2012) is core competencies product. Beside Trung Nguyen’s

strengths, Trung Nguyen still has potential market in domestic and oversea that have not

discovered. Especially, Vietnam is recognized one of the biggest exporting of coffee bean in over

the world. That is good condition for Trung Nguyen build global brand name go further

comparing currently. However, Trung Nguyen needs to improve customer service, quality

management and manage franchise system better. Many potential direct competitor entrance

existing market, they can acquire existing Trung Nguyen’s customers and manpower as well.

Trung Nguyen needs move faster and having strategic long- term business as economic still not

good in next time. On other hands, Trung Nguyen may be acquired by rival in near future.

Critical Issues

Inconsistent quality throughout the chain

The consequence of a massively franchising campaign is that Trung Nguyen can not

control the quality consistency of their store from quality of coffee cups through the customer

services. In terms of shop decoration, most of franchisee in the chain do not see a clear

impression of the appeal, on the special care little for details and professionalism of the

employee's service style. On the odor, Trung Nguyen coffee should determine the correct

identity of their coffee taste, at least to show the difference with other products about the smell.

Trung Nguyen has lost customers’ loyalty is in recent years because of their

inconsistency in quality control across franchising stores. This problem considerably impact

STRATEGIC MARKETING PROJECT FOR TRUNG NGUYEN CAFÉ CHAIN14

image of Trung Nguyen coffee houses in Vietnam, and it is hard to pull back the customers who

have been unsatisfied.

Market Facing A Fierce Competition

The second issue comes from the strong competitors. As we are mentioned, Trung

Nguyen has faced many direct and indirect competitors who are international famous brands all

over the world. Currently, beside Highlands coffee, Gloria Jeans, Coffee Beans & Tea Leaf,

Bud’s, Stabucks has just joined into Vietnam market. This is really a challenge for Trung

Nguyen to become more adaptable in new environment, which other rivals will have more

worldwide experience.

Marketing Objectives

Customer is the most important object of any business. Trung Nguyen coffee shop chain

also should focus on customer to make their success.

Satisfying Current Customers.

With Trung Nguyen coffee tasty, it is not too hard to let customer think about it as a best

coffee branch. If they love its kind of coffee shop, they will come back eventually. The think is

what Trung Nguyen should do to attract customer come more frequently. It depends on how they

satisfied with its services, coffee environment and the quality consolidation.

Increasing Market Share.

Trung Nguyen has planned to increase to 70% of market share in the next year 2013. At

this time, Trung Nguyen’s coffee shop market share is slightly decreased, and there are many

competitors always threaten their survival. They should focus on their service quality, not

quantity, to attract more potential customers, then increasing market share.

STRATEGIC MARKETING PROJECT FOR TRUNG NGUYEN CAFÉ CHAIN15

Marketing Strategies

Depending on Trung Nguyen’s SWOT analysis, key issues identified and objectives, the

project propses a marketing strategy which focuses on 4Ps.

Service (Product):

Product strategy applied to the Trung Nguyen coffee chain is consolidating and

improving the quality of whole of the chain. For coffee chains, there are many factors involved

to create a service to meet the needs of customers, including product quality, service quality, and

space of a coffee shop. Therefore Trung Nguyen needs:

- To diversify the menu to meet customers' different tastes

- To apply a quality standard management throughout the chain for staff training

program, infrastructure and facilities.

Price

Price is not the leading factor in competitive but has always been considered an important

factor in customers’ purchase decision. For the café chain industry, the price will be considered

in the interrelation with quality of received service, the comfort when they use the service.

Trung Nguyen café chain has applied the same price strategy as its competitors in the

market segment. This is appropriate to its target customers (white collar). However, if we put the

price in the interrelation with quality of received service, customer commended that the price is

high (according to our mini interview). Furthermore, the inconsistent pricing policy among its

stores has not satisfied its customers.

Thus, to meet the expectations of its target customers, a united pricing strategy which is

equal to main competitors will be applied for whole chain.

STRATEGIC MARKETING PROJECT FOR TRUNG NGUYEN CAFÉ CHAIN16

Channel Management Strategy

Currently, Trung Nguyen coffee chain stores appeared whole Vietnam country, located

from North to South of Vietnam. And following SWOT analysis, channel management based on

franchise system has many critical issues and Trung Nguyen need to take action to improve

continuously. Trung Nguyen still select franchise channel for expanding business as this business

model has perform the successful business and profitable business in over the world like chain

coffee shop: Starbucks or Gloria Jeans or Bud’s or NYDC

However, Trung Nguyen should improve performance of franchise system, quality

management and improving standard franchise system. Especially, building training programs of

employee competencies, focus more on customer service and giving excellent customer’s

satisfactions. In further details, auditing franchise system or all Trung Nguyen coffee stores

chain frequently is very necessary. This process will help Trung Nguyen manage quality

management well and keep commitment with existing customers or potential customers and also

interact with customer’s comment or complaint or feedback effectively (Thomas, 2012).

Communication Strategy

In the present, Trung Nguyen operates business model based on direct sales at every

coffee chain store. And Trung Nguyen should be active to build loyalty program to maintain

existing customers and implement more promotion program to acquire new customers.

Typically, social media selection is right decision. Trung Nguyen has showed very poor social

media programs at Vietnam market now. While Vietnam has young population, it will “benefit

from the energy and entrepreneurial spirit of its youth as well as strong domestic demand”

(HSBC, 2011). Almost of them are very familiar with social media. Some popular social media

STRATEGIC MARKETING PROJECT FOR TRUNG NGUYEN CAFÉ CHAIN17

in Vietnam, for example: Facebook, Zing, LinkedIn, or You Tube may be considered for making

decision.

As customers participate social networking, they has general feeling “76% positive, 24%

neutral, and 21% negative” (Nielsen, 2012). These statistic numbers quite convince marketers.

And above social media will help Trung Nguyen optimize operation cost and easy engage with

potential customers. Beside, this communication strategy, Trung Nguyen should select more

promotion program through some contest program or challenge program or innovation program

that convince more customer segments such: white collar and students and mid-scale to up-scale

and especially young people. These programs also matching with Trung Nguyen’s message to

coffee drinking community is active and innovation. When Trung Nguyen implements this

strategy well, Trung Nguyen can increase its image, also increasing revenue and can compete

with strong rivals now in Vietnam.

Conclusion and recommendations for change

Trung Nguyen has strong competitive advantages based on supply chain, Trung Nguyen

manufacture coffee bean; focus both exporting market of domestic and oversea. Beside, Trung

Nguyen coffee chain operate for many years in Vietnam market. Most of Vietnamese people are

familiar with Trung Nguyen brand name. Trung Nguyen needs to take time and invest more to

build global brand name in order to compete with strong rival.

Trung Nguyen should to improve franchise system, quality management. Focus on

product quality, diversified menu to satisfy clients. Trung Nguyen should identify separate

customer segments and keep reasonable price for customer willing purchase or increasing more

repeat purchaser. Typically, it should build training program for employee competency and give

improvement continuously for internal process. Trung Nguyen should focus on taking care

STRATEGIC MARKETING PROJECT FOR TRUNG NGUYEN CAFÉ CHAIN18

existing customers and acquire new customers. Building social networking, joining popular

social media in Vietnam like: Facebook, Zing, LinkedIn, or Youtube, this strategy will help

Trung Nguyen to engage with customers and meet customer’s expectation and increasing more

revenue, profitability and Trung Nguyen image as well.

STRATEGIC MARKETING PROJECT FOR TRUNG NGUYEN CAFÉ CHAIN19

Bibliography

Peter, J. P., Donnelly, J. H. Jr. (2010).Preface to Marketing Management (12th edition). New York: McGraw-Hill/Irwin

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References

Han Ni (2012, November 24). Trung Nguyen’s big rival reveal ways to convince Vietnamese customers. Vietnam Education Association. Retrieved from http://giaoduc.net.vn/NTD-thong-thai/Thi-truong/Doi-thu-lon-cua-Trung-Nguyen-tiet-lo-cach-chinh-phuc-khach-hang-Viet/252956.gd

Highlands Coffee (2012, December 20). Retrieved from: http://www.highlandscoffee.com.vn/vn/index.html

HSBC, B. (2011, November 22). Vietnam growth rate remains impressive. Retrieved from http://www.hsbc.com/1/2/emerging-markets/gbm/stories/vietnam-growth-rate

Minister of Agriculture and Agri-Food Canada (2012, July). Foodservice Profile Vietnam. International Markets Bureau. Retrieved from http://publications.gc.ca/collections/collection_2012/agr/A74-2-2012-10-eng.pdf

Nielsen, A. (2012, December 02). Nielsen social media report 2012. Retrieved from http://www.nielsen.com/intl/vn/news-insights/reports/2012/nielsen-social-media-report-2012.html

Nguyen T.H, Tran Q.Q (2012, May 24). Vietnam Annual Coffee Report 2012. USDA Foreign Agriculture Service. Retrieved from http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Coffee%20Annual_Hanoi_Vietnam_5-24-2012.pdf

Quang T., (2012, March 26). Fierce coffee market. Dak Lak Coffee Network. Retrieved from http://www.caphedaklak.com/khoc-liet-thi-truong-ca-phe/2922/

Shmavonian, K. (2012, July 25). Chairman vu, vietnam's coffee king. Retrieved from http://www.forbes.com/sites/forbesasia/2012/07/25/vietnams-coffee-king-dang-le-nguyen-vu/Thomasson, E. (2012, November 08). Vietnam's coffee plan: the next prestige global brand. Retrieved from http://www.cnbc.com/id/100106306

Thuy D. (2012, October 04). Vietnam’s coffee export turnover sets new record. In Social Republic of Vietnam Government Web Portal. Retrieved from http://news.gov.vn/Home/VNs-coffee-export-turnover-sets-new-record/201210/15861.vgp

Trung Nguyen (2012, July 11). Trung Nguyen –the most beloved coffee brand chosen by vietnamese consumers. Retrieved from http://www.trungnguyen.com.vn/en/2222/press-release.cafe

Thomas, C. (2012, November 15). Starbucks in pr fail as angry customers take to its comments board . Retrieved from http://www.huffingtonpost.co.uk/2012/11/15/starbucks-in-pr-fail-as-customers-angrily-take-to-its-comments-board_n_2135438.html

Appendix A: Vietnamese consumer characteristics

STRATEGIC MARKETING PROJECT FOR TRUNG NGUYEN CAFÉ CHAIN21

Source: Datamonitor, January 2012

Source: Coffee Annual Report, USDA Foreign Service, 2012

Appendix B: Vietnam Food and Drink market

STRATEGIC MARKETING PROJECT FOR TRUNG NGUYEN CAFÉ CHAIN22

Source: Datamonitor, January 2012

Source: Euromonitor, January 2012

Source: Euromonitor, January 2012