Marketing the coffee house edited

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.
2. Price
Price list of some products at The Coffee House:
Product

Price (VND)

Caffè Americano

39,000

Cappuccino

45,000

Milk coffee

29,000

Mocha

49,000

Macchiato Roasted Rice Tea

48,000

Macchiato matcha tea

45,000


Lemongrass lemon juice

49,000

Peach blueberry ice blended

59,000

Mango orange smoothie

59,000

Salted egg sponge cake

29,000

Tiramisu Cake

29,000

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.
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.
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.

* PR activities
TCH has a lot of community activities that contribute to society and help businesses

bring their brand to customers. Some specific activities are as follows:
+ The Coffee House X Library Project: Library of children books
+ The Coffee House X To he project: Helping needy children
+ The Coffee House Sticker Project: Greening Cau Dat


+ The Coffee House Vulcan Project: Nurturing the dream of people with disabilities
+ The Coffee House accompanies UPRACE - Steps to run for the community.
+ The straw reduction campaign at The Coffee House - "Thank you for refusing to use
straws".
* 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.
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

Welcome customers

•
•
•

Take orders

Make beverages

•

Complete and display

Payment

Customer serving

•

Bring beverages, bread /
pastries to guests

Get the orders

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.


Fill in the receiving

Up to 30 minutes you

information (name,

Take your favourite

phone number,
shipping address)

will have your

Payment after

favorite drink right

receiving the drink.

away

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

The employee confirms the
The staff will pick up the phone

order and requests the receiving

You should confirm the

Up to 30 minutes you will have

Payment after receiving the

to receive the request

information (name, phone

information again.

your favorite drink right away

drink.

number and receiving address)

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:

Sign up for a
Starbuck App

Log in to your
Starbuck App
account

Choose your

Complete the

favorite food

order

Receive

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
•

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”.