STARBUCKS PDF Starbucks vietnam Nghiên cứu thị trường starbucks tại việt nam

Annual Marketing
Report 2022

Date:
7 April 2022

Prepared by:
Gourmet Group


Annual Marketing
Report 2022
Date:
7 April 2022

Prepared by:
Gourmet Group


Table of content
I. Summary excutive
II. Market overview
III. Market segmention & targeting
IV. Positioning & Differentiation
V. Marketing Mix (4PS)
VI. Customer Relationship Management
VII. Recommendation & Conclusion
Appendix
Reference
Total words:

I. Executive Summary
Starbucks was launched on 30 March 1971 by Jerry Baldwin, Zev Siegl, and Gordon
Bowker. The brand name was derived from " Starbucks " characters, inspired by
Moby-Dick's novel. The most special characteristic of Starbucks is the luxury
experience that they offer. Therefore, Starbucks has achieved success and expanded
its store in many countries such as China, Japan, Latin America, Russia, and many
others. After researching and analyzing the Vietnam market, Starbucks sees Vietnam
as a potential market, just like Indonesia Market, especially in central regions such
as Ho Chi Minh City, Ha Noi, Da Nang, which is suitable for their company's target
and strategy.

Mission

Starbucks has stated, "to inspire and nurture the human spirit – one
person, one cup and one neighborhood at a time." In addition, customer
satisfaction is the Starbucks's essential priority by creating a better service
sector while giving their life the best treat. The determination efforts of
Starbucks in satisfying this component are shown its numerous ways, with
the "green cup responsibility" being one of the many. To emphasize its
mission statement further, Starbucks raises the cultures, where employees
and customers can experience warmth and bonds. Starbucks wants to offer
its customers its best coffee and maintain an optimistic and solid impact on
the community through nurturing a green supply chain, providing
opportunities for people in various social and ethnic groups.

Vision

"To establish Starbucks as the premier purveyor of the finest
coffee in the world while maintaining our uncompromising

principles while we grow." is Starbucks' famous vision statement. Its
ongoing expansion and one of the largest coffee houses and coffee
chains globally help accomplish this vision statement. The company's
achievement of opening over 30,000 international stores and
uncompromising principles, which is about remaining true to its culture
toward its customer, support its vision statement.

Value

With our partners, our coffee and our customers at our core, we live these values:
Creating a culture of warmth and belonging, where everyone is welcome.
Acting with courage, challenging the status quo and finding new ways to grow
our company and each other.
Being present, connecting with transparency, dignity and respect.
Delivering our very best in all we do, holding ourselves accountable for results.
We are performance-driven, through the lens of humanity

1


S

S

UCK

Product Portfolio

RB
TA

Starbucks offers a diverse variety of goods, including
beverages, food, merchandise to the coffee bean. The
product and category offerings are listed in the table below.



Cold Brew
Expresso and Coffee

BERVERAGE

Frappuccino Blended
Beverage
Teavana teas
Other beverage

FOOD

Sandwiches

Bakery

Hot food

Packaged Food

Dessert

Savories

Fruits/yogurts

MERCHANDISE

Mugs
Water bottle
Container

Blonde roast

COFFEE BEAN

Medium roast
Dark roast

2


STARS

Merchandise

Beverages

DOGS

CASH COWS

Coffee beans

Food items

LOW

HIGH

HIGH

QUESTION MARKS

LOW

Relative growth rate

The BCG
Growth-Share Matrix

Relative market share
S T A R B U C K S

M A R K E T I N G

R E P O R T

3


II.MARKET
OVERVIEW

1.COMPETITIVE ENVIRONMENT
There are many opponents of Starbucks in
Vietnam, however, the worthy competitors
of Starbucks only include Highland Coffee
and Phuc Long when these brands provide
clients

with

sustainable

products

at

reasonable prices.

HIGHLANDS COFFEE
A potential competitor, one of the most
well-known coffee shops has the highest
market share in the Vietnam Market.

2. COMPANY ANALYSIS
In terms of positioning, Starbucks
portrays itself as a well-known brand
that provides high-quality premium

PHUC LONG
New

competitor

persuaded

many

but

successfully

customers,

mainly

young generations, to use its products
by

offering

modern

furnishings

and

products

with

worldwide

flavors, helping to set it apart from
other Vietnamese competitors such
as Highlands Coffee and Phuc Long.

affordable prices.

S T A R B U C K S

standard

4
M A R K E T I N G

R E P O R T


SWOT

BRAND : STARBUCKS

ANALYSIS

STRENGTHS

WEAKNESSES

S W

1. Surrounding are easily

1. Strong brand image

2. Employee treatment

3. Strong loyalty program

replicable

2. Strict control over its
labour standards

3. Starbucks stores are too
few

OPPORTUNITIES

TREATS
1. Traditional coffee shops are

1. The Vietnam coffee culture

O

expands every day

2. On March 15, 2022, Vietnam
reopens to tourism and is
expected to welcome 5

T

still the optimal choice with
a large number of coffee
consumers in Vietnam
compared to Starbucks.
2. It's feasible that Vietnamese

million international visitors

coffee brands (Highland) will

in 2022

plan to target the high-end
market segment that
Starbucks is targeting.

5


3.COMPANY OBJECTIVES
a) Communicate objective
A major goal that we concentrate on is expanding the perspective of
Arabica coffee to Vietnamese people thereby convincing Vietnamese
customers to gradually accept the coffee that Starbucks wants to
bring - delicate scent, mild bitterness, pure gentle aroma.

b) Business objective
Business objectives of Starbucks are to erase all losses in 2021 and

to reach profit of approximate 31.2 billion VND, equalling 80% profit
in 2019. Targeting domestic customers, instead of being overdependent on international customers by bringing Starbucks products
to the Vietnamese market. Besides strategies focused on existing
stores in central big cities, Starbucks will open more stores around
Ho Chi Minh city to help its customers easily approach it.

80%

Equalling profit in 2019

c) Marketing objective
Marketing plays a crucial role in any business, including Starbucks.
Starbucks' main goal is to gain 1.6% market share (reach 7.16% in
total) and maintain a monthly customer service rating of at least
90% excellent. For this year's target, Starbucks will increase retention
rates of consumers' return rates (about 5% of customers return within 3
days, 4% of customers return within 2 days, 2.5% of customers return
within a day).

7%

90%

Gain in market share

Maintain customer service rating

6

PROBLEM & SOLUTION
PROBLEM
The problem that Starbucks Vietnam is currently
facing the risk of reducing the scale of operation
if it cannot attain profit in 2022.
Starbucks

still

has

difficulties

convincing

Vietnamese people about Arabica coffee - the
main coffee bean that Starbucks uses. Although
Starbucks has been in Vietnam for nine years,
the number of Vietnamese customers drinking is
still limited.

SOLUTION
Open

campaigns

discover
gradually

more

for

about

accept

the

Vietnamese
the

taste

coffee

people
of

that

to

Arabica,
Starbucks

offers, assisting Starbucks to earn more profit so
that it will avoid the risk mentioned above.
Open new stores in Lakeview City (1 store),
RMIT campus in District 7 (1 store), and Aqua

7

City

in

Dong

Nai

(1

customers/month/store).

store).

(Attract

1000


4.MARKET SEGMENTATION
Segments

Young adults

Young and mature adults

Middle-aged adults

Age: 19-25 years old
Gender: Male & Female
Income: High and stable
income (above 10 million
VND per month).
Level of education:
Undergraduate, graduated.
Profession: Student, office
staff, freelancer, KOL.

Age: 25-35 years old
Gender: Male & Female
Income: High and stable
income.
Level of education:
Undergraduate, graduated.
Profession: Office staff,
manager, supervisor,
freelancer, businessman.

Age: 35-40 years old
Gender: Male & Female
Income: High and stable
income.
Level of education:
Undergraduate, graduated.
Profession: Manager,
businessman, supervisor.

Hobbies: Hang out with
friends, use coffee to stay
focused on job or study.
Life goals: Earning money
Lifestyles: Active, energetic
Interest: enjoy drinks
(especially coffee), taking
pictures, being served

Hobbies: hang out with friends
and colleagues or usually have
meetings at coffee shops, use
coffee every morning from
home to work, use coffee to
reduce stress, relax during break
time.
Life goals: Achieve success
Lifestyles: Active, energetic,
balance, minimalism
Interest: enjoy drinks (especially
coffee).

Hobbies: Hang out with
friends, use coffee every
morning from home to
work, uses coffee to reduce
stress, relax during break
time.

Spending habits: Willing to

spend money on high
quality drinks
Purchasing habits: Willing to
pay for products
commensurate with the
quality
Interactions with the brand:
Highly adaptive, open,
welcoming, avid feelings.

Spending habits: Willing to
spend money on high
quality drinks
Purchasing habits: Willing to
pay for products
commensurate with the
quality
Interactions with the brand:
Highly adaptive, open,
welcoming.

Spending habits: Willing to
spend money on high
quality drinks
Purchasing habits: Willing to
pay for products
commensurate with the
quality
Interactions with the brand:
Highly adaptive, open,

welcoming.

Geographic

HCMC and Ha Noi

HCMC and Ha Noi

HCMC and Ha Noi

Segment size

Medium (approximately
40% of Starbucks Vietnam
revenue)

Large (approximately 50%
of Starbucks Vietnam
revenue)

Small (approximately 10%
of Starbucks Vietnam
revenue)

Demogrphic

Psychological

Behavioural

Life goals: Achieve success
Lifestyles: Healthy, balance,
minimalism
Interest: enjoy drinks
(especially coffee)

8
S T A R B U C K S

M A R K E T I N G

R E P O R T


IV. BRAND
POSITIONING AND
DIFFERENTIATION
1. Customer persona
Nguyen Ngoc Minh Anh

Identifiers
She is a flexible and patience person
She is interested in adventuring
She is also humble and caring.

Goals
Be kind daily
Travel around the world with her family
Enjoy the youthful and energetic lifestyle
Age: 25

Interests

Job: Officer
Location: Ho Chi Minh City, Vietnam

PERSONALITY
Introvert
Thinking
Sensing
Juding

Extrovert
Feeling

Dancing
Hang out and chat face-to-face with
friends
Travelling

Favorite brands

Intuition
Perceiving

9
S T A R B U C K S

M A R K E T I N G

R E P O R T


2. Positioning map
In terms of positioning, Starbucks portrays itself as a well-known brand that provides
high-quality premium products with worldwide standard flavors, helping to set it apart
from other Vietnamese competitors such as Highlands Coffee and Phuc Long.
HIGH PRICE

GLOBAL
STANDARD
TASTE

VIETNAMESE
TASTE

LOW PRICE

3. Differentiation and Positioning Strategy:
Starbucks' positioning is its premium coffee, it has pledged to create a unique form of
enriched premium coffee experience. They've carved out a significant market of
coffee aficionados. Regarding the 100 percent coffee beans of Starbucks are Arabica
which makes Starbucks out-perform their product quality compared to the Robusta
coffee of Highland, one of the biggest competitors against Starbucks in Vietnam.
Furthermore, customer service is one of the things that distinguishes them from
Highland coffee. Because Starbucks is extremely focused on the customer experience,
they create a friendly environment for customers, such as quick service, customized
cups with names, and collecting suggestions and feedback from customers. Starbucks
states that its premium coffee experience sets them apart from its competitors, which
includes high-quality coffee and employee-customer interactions, the environment

and ambiance provided, and competition from a variety of conveniences.

10


V. MARKETING MIX (4Ps)
1.Product Strategy

Augmented Product
Uniquely

designed

space,

personalize drink.
AUGMENTED PRODUCT

Starbucks rewards program.
Comfortable

space

(Third

place), strategic location, wifi
ACTUAL PRODUCT

access.

Actual Product
PROCCESS

Premium

coffee,

beverages,

food,

products

the

Starbucks

printed

with

other

logo (localize merchandise).
Fresh coffee bean.

Core Customer Value
Professional and luxury service.

11

2. Price Strategy
The beverages in Starbucks are commensurate with their quality - a rigorous
processing procedure with the help of a team of well-trained employees, together
with carefully picked high-quality coffee beans. By providing high-quality
products, Starbucks offers high prices for its products at an average of 70,000
VND, and the minimum price is 35,000 VND, for which espresso does not require
much special. However, to survive and compete with so many other coffee shops
and chains, Starbucks launches combo products that save money and ancillary
services such as economical breakfast. These combos are aimed at customer
groups who care a lot about price, attracting them by interspersing with wholegrain coffee products premium and using price comparison to sell premium
products.

3. Place Strategy
Customers can easily buy Starbucks products through chain coffee shops in
strategic locations in Hanoi and Ho Chi Minh cities, where their customers
can easily find and recognize the iconic Starbucks brand.
Starbucks initially offered its products at Starbucks Coffee cafes. As the
Internet expands, Starbucks is now available on delivery apps such as Grab
and Shopee Food. Customers can now use the Starbucks App to order at any
time and from any location where Starbucks is located nearby. They also
connect to hotels, airports, and coffee shops for office workers, allowing
Starbucks to quickly and easily grow its market and optimize sales revenues.

12


4. Promotion
plan (IMC)

Market
The target audience of Starbucks is middle to upper-class men and
women who are willing to afford higher-priced cups of coffee on a
regular or daily basis.

MISSION
Starbucks must fulfill two main objectives: educating customers about
the flavor and benefits of Arabica and encouraging them to drink it daily,
offering the best quality coffee for customers.

MESSAGE
Slogan: The taste of Starbucks.
Key message: Starbucks offers high-quality coffee cups to suit the taste
of coffee aficionados. Using Arabica beans as the main ingredient of
coffee products, Starbucks makes a coffee with a light flavor, iridescent
color, and health benefits.

13


MEDIA
Word of Mouth: Employees will announce to each customer getting
into Starbucks and Poster about this campaign will be displayed in
every store Starbucks in Vietnam
Advertising: Use interactive media, especially social networks to
advertise products and sales promotion events by creating TVC,
Posts, Pictures on social media or Starbucks.com
Sales promotion:

Starbucks launches many discounts, vouchers as

well as rewards for their loyal customers who use member cards in
Starbucks during this campaign.

MONEY
The overall marketing expenditure is estimated to be around 3.1 billion VND.

Other Expense
13%
Advertising Fee
2%

Rewards
20%

Campaign Fee
65%

14


MEASUREMENT
Starbucks measures its success after this campaign based on coffee
revenue in KPI. And total sales from the beverage, food, and
merchandise will assess the success of the product in the long term.
Besides, brand recognition and return frequency of customers are
also perfect assessments to evaluate the success of this campaign.

VI. CUSTOMER RELATIONSHIP

MANAGEMENT
Starbucks has designed a loyalty program
called

Starbucks

Reward

with

two

tiers:

green level upon registering and gold level
when collecting 100 stars in 12 consecutive
months

from

Starbucks
members

the

registration

Card.
to

The

earn

date

program

stars

for

of

allows

every

time

customers fully pay by using their registered
Starbucks

Card.

When

customers

enter

green level, they will receive a "Buy one get
one" offer on tall or above-sized beverages
upon

earning

first

five

stars

and

one

complimentary slice of cake in customers’
birthday month.
Gold-leveled customers will especially have perquisites such
as “Buy one get one". Reward as reaching the Gold level
for the first time, one Free Drink Reward to redeem for a
free

15

tall

beverage

with

every

exclusive offers and promotions.

25

Stars

collected

and


APPENDIX
NOTE FOR MONEY
Huong Campaign: 30%
Sample: 10%
Coupon: 15%
Gift: 5% includes: cardholder, tote bag, water cup canvas
bag, notebook with pen, and shipping fee
KOL: 6% Giang oi or Dinology and Schannel
Place: 11% Crescent Mall (District 7), Gemcenter (District 1),
THẢO ĐIỀN VILLAGE (District 2), Ba Na Hill ( Da Nang),
Pullman (Ha Noi), Nha Trang in-store
Desert: 3% Baked Cheesecake, Chocolate Marquise
Staff: 5% 3 managers, 20 staffs
TVC poster: 2%
Other expense: 13%

Target: Attract 550 customers/ workshop in HCMC, 400
people in Hanoi, 200 people per workshop in Dan Nang and
Nha Trang.

S T A R B U C K S

M A R K E T I N G

R E P O R T


REFERENCES


ACKNOWLEDGEMENT

Special thanks to:
Dr. Ngo Viet Liem
Ms. Nguyen Thu Huong

Gourmet marketing
team
Ly Viet San
Chiem Ha Chau Anh
Ho Nguyen Khanh An
Vo Thai Duy
Hoang Tuan Khanh
It's been a fantastic semester