group assignment highlands coffee

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Vũ Thành Ngọc - HS170949Dương Ánh Thơ - HS173149Chu Thúy Quỳnh - HS176212Đào Thị Thảo Nguyên - HS171446

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<b>Table of contents</b>

<b>I.Introduction</b>

1. Brief introduction on the brand2. Target customer

3. Consumer persona for each target segment of the brand

<b>II. The internal influences on the behavior of the brand's target consumersIII.The external influences on the behavior of the brand's target consumers</b>

<b>IV.These internal and external factors shape the behavior and impact the making process of these consumers.</b>

<b>decision-V.What are the marketing implications for the company? How can the company usethis new knowledge in their efforts to connect and build relationships withconsumers?</b>

1. The marketing implications for the company

2. The company use this new knowledge in their efforts to connect and build relationshipswith consumers

<b>VI.ConclusionVII.References</b>

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<b>I. Introduction</b>

<b>1. Brief introduction on the brand</b>

Highlands Coffee is a chain of Vietnamesecoffee shops, established in 1999 from thelove of Vietnam and the passion for coffee ofan overseas Vietnamese businessman - DavidThai. The brand was born with the desire toelevate Vietnam's long-standing coffeeheritage and spread the spirit of pride,harmoniously connecting tradition withmodernity. (Highlands Coffee.,2018)

Born to serve Vietnamese values, every day at Highlands Coffee is proud to bring todiners delicious filter coffee, delicious tea, and Vietnamese dishes full of childhoodmemories. the duo “Bread – Phin Milk Ice”. Vietnamese values are also emphasized andenhanced through the design of each cup, coffee packages, decorative drawings showingcultural beauty, bringing a sense of closeness to everyday life but still very delicate andmodern grand. (Highlands Coffee., 2018)

Highland Coffee aims to create a coffee culture where people can gather, connect andenjoy the rich flavors of carefully crafted coffees.

Highlands Coffee, proud to be a Vietnamese brand, spreads, connects millions ofVietnamese customers and is a place where everyone belongs. (Highlands Coffee., 2018)

<b>2. Target customer</b>

Target Audience Highlands Coffee'scustomers are middle-income class,mainly office workers and have a habitof drinking coffee. They need quiet,private spaces to work or talk tocolleagues. Therefore, HighlandsCoffee's stores are arranged to helpcustomers feel comfortable whencoming to drink coffee every day.

<b>3. Consumer persona for each target segment of the brand</b>

Name: Nguyen Van Hoang- Demographics:

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+ Age: 30+ Gender: Male

+ Occupation: office worker+ Income: 15 million/1 month+ Geographical location: Hanoi+ Family Life Cycle: married

+ Hobbies: Likes drinking coffee, likes quiet places

+ Mr. Hoang works from Monday to Saturday, working 8 hours a day with avery busy office worker job

- Psychology: is an open person, gets along with everyone and is very serious andstrict when working

- Shopping behavior:

+ Usage frequency: 1 week drink Highlands coffee about 4-5 times

+ Where to shop: often use products at Highlands near home and near the company+ Purpose: Come to Highlands coffee to have a quiet, comfortable space to work

and exchange work with colleagues

+ Products used: FinDi or teas to help you stay awake and work efficiently

<b>II. The internal influences on the behavior of the brand's targetconsumers:</b>

<b>❖ PERCEPTION</b>

Customers appreciate this brand for its quality coffee blend, which includes traditionalVietnamese flavors and international variations. Space is another attractive aspect, providingcustomers with a comfortable space to socialize, work or relax. Friendly and attentive customer

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service adds to the positive brand awareness. In addition, Highlands Coffee has built a solidreputation as a leading coffee chain in Vietnam and is regarded by customers as a trusted brand.

*Love and belonging: Highlands Coffee is a space to meet friends, colleagues and family.Customers can appreciate the social space, chatting and sharing time with others.

*Esteem needs: Highlands Coffee makes a difference for customers to meet their independentneeds by creating a trusted brand. Customers will feel satisfied and appreciated when usingproducts of Highlands Coffee.

*Self- actualization needs: Although Highlands Coffee cannot specifically meet the need forself-expression, creating an environment that is comfortable and sparks the imagination can helpcustomers in their work to reach their full potential. its potential.

Thus, Highlands Coffee meets a multitude of needs in Maslow's diagram, from basic socialneeds, independence needs and incomplete self-actualization needs. This makes the difference tocreate a holistic and locked-in customer experience that contributes to the success and growth ofthe brand.

<b>❖ LEARNING</b>

Customers learn about Highlands Coffee through a variety of channels such as word of mouthfrom person to person, through social media platforms, promotional and marketing efforts... Thiscontributes to raising awareness of customers' trust and understanding of the brand, its specialhighlights.

By understanding customer request behavior, Highlands Coffee can tailor marketing efforts,improve initiatives and activities in line with customer interests and inquiry behavior.

<b>❖ THE SELF</b>

Customer self-concept at Highlands Coffee includes how individuals feel about themselves inrelation to the brand and their experience with it. Customers can identify themselves as regularsor loyal patrons, aligning their personal image with the brand's values. Brand loyalty and supportcan also influence their self-concept. They may actively recommend the brand to others, seeingthemselves as advocates or ambassadors of the brand's quality and experience.

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Understanding customers' self-perceptions allows Highlands Coffee to tailor its marketingstrategies and experiences to match their desired self-image.

<b>❖ ATTITUDES:</b>

People who appreciate high-quality coffee, a cozy atmosphere, friendly service, and brandloyalty often have a positive attitude. Some people are neutral if their experience is average orconvenience-based. Hence Highlands Coffee focuses on maintaining a positive attitude bycontinuously providing quality products, addressing negative feedback and enhancing the overallcustomer experience.

<b>❖ LIFESTYLES: </b>

Customers' lifestyles significantly influence their behavior and choices. Coffee enthusiasts aredrawn to the brand for its wide range of coffee blends, while working people and studentsappreciate the cafés as space-efficient. For those looking for relaxation and entertainment,Highlands Coffee offers a serene environment. Understanding the lifestyle of customers helpsHighlands to come up with effective strategies.

<b>❖ PERSONAL CHARACTERISTICS</b>

Personal characteristics play an important role in shaping the buying behavior of customers atHighlands Coffee. Here are some key personal characteristics that can influence a purchasedecision:

*Age: Different age groups may have different preferences. Younger customers, such asstudents or young professionals, may be more interested in classy coffee options and the socialand buzz in cafes. But older customers can appreciate the traditional flavors and quietatmosphere to relax in.

*Occupation: A customer's occupation can influence their buying behavior. Commuters maybe looking for a comfortable environment for meetings or a quick break. Students can search forfree Wi-Fi-friendly study spaces. Understanding the needs and preferences of differentoccupational groups can help Highlands Coffee meet their specific requirements.

*Income: Individuals with higher incomes may be willing to spend more on premium blends.Lower income customers can prioritize affordability or look for deals and promotions. HighlandsCoffee's pricing strategy should match the income range of target customers to ensureaccessibility and affordability.

*Lifestyle: Health-conscious people may seek out healthier coffee options or alternatives likelow-fat or plant-based milk. Busy people may prioritize takeout options or home deliveryservices

*Cultural background: Cultural background can also shape customer preferences and choices.Local customers can appreciate a deeper taste of traditional Vietnamese coffee, whileinternational tourists or expats can seek out a blend of local and international coffee experiences. Understanding these individual characteristics allows Highlands Coffee to tailor its services,environment and marketing strategies to effectively meet the specific needs and preferences of its

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target customer segments.

<b>III. The external influences on the behavior of the brand's targetconsumers:</b>

Tây Nguyên has been exploited to grow coffee and has become the largest coffee growingregion in the country with top quality coffees. Vietnamese coffee not only knows the world'sleading output but also has built a very own coffee brand for Vietnamese people. Arabica andRobusta are two types of coffee commonly used and grown in Vietnam.

<b> *Subculture: “Let's go get some coffee!” is the catchphrase of today's coffee culture. Coffee</b>

shop is a place for couples to talk, an ideal place for friends to hang out, a place to start businesscooperation, or even alone to reminisce about life (Barista School 2020).

However, it is also coffee, but the taste of each region is varied into many different types. * For example, Saigon people like iced black coffee, refreshing iced milk coffee. While peoplein the Central or the North prefer a completely different taste with a bolder taste. They prefer hotdrinks to cold ones. And often sip early in the morning to start a new day (Barista School 2020).Born to serve Vietnamese values, Highlands Coffee provides customers with delicious coffee,delicious tea, and Vietnamese dishes full of childhood memories, serving the tastes of people in 3regions, so that people from all over Vietnam can come and buy Highlands Coffee products.Typically the duo “Banh Mi– Phin Sua Da” is full of love, and has become the best friend on the“hungry day" of many customers (Highlands Coffee 2018).

The human spirit of the Vietnamese people is also spread by Highlands Coffee throughcommunity activities such as sponsoring, exchanging and helping local organizations andschools (Highlands Coffee 2018).

It is also being born in Vietnam, understanding the Vietnamese cultural identity to spread theVietnamese origin, that has helped Highlands Coffee win the hearts of customers and build brandloyalty.(Highlands Coffee 2018).

<b>❖ SOCIAL CLASS</b>

Almost every society has some manifestation of social class. A variety of factors influence it,including family background, wealth, income, education, occupation, power, and prestige. Social

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class, like culture, influences consumer behavior by shaping people's perceptions of their ownneeds and desires. People from the same social class tend to have similar attitudes, live in similarneighborhoods, go to the same schools, have similar fashion tastes, and shop at similar types ofstores. (lumen learning 2016)

As for highlands coffee, a famous coffee brand in Vietnam, but the price here is said to be notsuitable for the Vietnamese market - where the world's fifth largest exporter of coffee output is.However, with Highlands' target customers being middle- to upper-class people with stableincomes, having requirements for space and services for the job position, Highlands is alwayspopular with civilized people. rooms, offices, have the status of choice as a destination to enjoycoffee.

<b>❖ REFERENCE GROUP</b>

The groups with which a person comes into contact can influence consumer behavior throughfriendship, face to-face interaction, and even indirect contact. Marketers frequently refer to theseas reference groups. A reference group can be formal or informal in nature. Individuals can beinfluenced by the groups to which they belong.

● Typical reference groups:

<b>*Primary group: Includes: family, friends, neighbors, colleagues...</b>

Characteristics of the primary group's influence on consumers:+ Direct, regular.

+ Being an agent that forms consumers' habits, lifestyles.

The extent to which this group influences consumers depends largely on their culturalenvironment.

Based on the survey, it was found that 39 out of more than 100 people who knew HighlandsCoffee were introduced. This referral is more likely to come from a friend or it may be animitation of a family member's behavior. Because the influence does not only come fromreference opinions, but it is also an imitation of the behavior that the individual sees the buyinghabits of family members.

<b>*Secondary group: associations or legal organizations: religious organizations, industry</b>

associations, trade unions, unions, clubs: swimming, bonsai, consumer associations... The influence of the group on the behavior of its members can be direct or indirect.Plays an important role in orienting a style, opinion, can even exert pressure…

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The degree of influence of the group on consumers depends greatly on the consensus on thepurpose, interests, viewpoints, age, culture... among the members.

<b>*Market maven : An opinion leader is a very reliable source, and most of them ensure that their</b>

views on issues are known to members of the reference group. Their credibility is higher, as theyare part of the reference group and do not have vested interests in selling the product to others,unlike marketers.

<b>❖ FAMILY </b>

This is the most important reference group. From the family, members develop sharedinclinations for religion, ambition, love, respect, and many other traits. Needs, preferences,shopping habits, consumption levels and many other aspects determined by the family also havea significant influence on a person's behavior. Families often make decisions as a consistent unit. * For example, as Kotler gives, most shopping in the home is done by parents, but childrenalso make an impact, even on issues like buying a family car or choosing a vacation place. .Thisis understandable, because perhaps when we go to the supermarket, we have also witnessed thescene of children nagging their parents to buy this or that item for them. In every family,members have different levels of influence on purchasing decisions - this is something thatbusinesses need to keep in mind to be able to influence each appropriate audience. For example,some products are primarily influenced by the children, some by the husband, others by the wife,while there are also products that are equally influenced and determined. The decision to buy isbased on the discussion and consensus of the whole family.

<b>❖ ROLES AND STATUS</b>

-Status: can be defined as the social position or rank that an individual holds in a social systemwith defined rights and duties assigned to these positions.Status is an important aspect of sociallife because it determines an individual's access to resources and opportunities, and it also shapesthe way that others perceive and interact with them.(Praveen. V. T 2023).

* For example, a doctor, lawyer, or engineer holds a high status in society as they may have morepower, influence, and prestige than others, and may be treated with greater respect and deference.(Praveen. V. T 2023).

<b> => In Highlands, the customers that they want to target are people with positions in society such</b>

as office workers, doctors, university lecturers,...because these people are middle class people,have a good or high income and their demand for space is in line with what Highlands has.

-Role: A role can be defined as the behavioral or dynamic aspect associated with a particularstatus.Roles are learned through socialization, and they vary according to the social context.Roles provide a framework for social interaction and help to maintain social order. Roles alsohelp to define relationships between individuals and groups.(Praveen. V. T 2023).

<b>=> As an owner, a higher-level person, etc., it is normal for that person to choose to use</b>

Highlands because the income level they have is completely met. As for people with lower-level

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roles, without authority, they will not choose Highlands, but they can buy coffee at sidewalkshops or places with lower prices.

<b>IV. These internal and external factors shape the behavior andimpact the decision-making process of these consumers. </b>

<b>★ STEP 1: NEED RECOGNITION</b>

Buyers want to satisfy an emerging want or need. Arousing a need that is recognized by internalstimuli such as thirst and hunger, emotions, memories, lifestyle, and external stimuli such asexposure to advertising, culture, advice, consumer groups is important for orientation, helpingcustomers to subconsciously shape the brand and lead to purchase.

In the fast pace of modern society, the demand for drinks can change in the form of use at the baror at home,... depending on the needs and preferences of each person. Highlands customers too,there is a group of customers who prefer to use at home because spending time at the shop is aluxury while their lives are too rushed, most people have to do their personal things quickly to beon time for class, to not be late for work, to avoid traffic jams on the road,...

So how do Internal and External factors affect the Need recognition of people who want to use itat home:

<b>+ Lifestyle: People with a frugal lifestyle who pursues the principle of rational consumption or</b>

those who have a busy lifestyle and need convenience, especially those with a tight workschedule or have a lot of family activities, often prefer to use coffee at home because of theconvenience rather than going to a coffee shop.

<b>+ Physiological needs: For individuals who want to be independent, careful, or like to be quick</b>

and creative, they want to create their own quality and nutritious coffee products that can satisfythe needs of creativity, taste, and good health.

<b>+ Culture: For living in families or groups of friends who like to gather and enjoy coffee</b>

together at home in a comfortable and friendly space. This creates a space for meeting and socialinteraction between family members or friends.

On the other hand, there is a group of customers who want to use it at the shop because they wantto enjoy their free time or to meet the nature of work or hobby.

<b>+ Love and belong: For people who are sociable and like to meet friends, family, or colleagues</b>

or like to talk about life, they often prefer to use coffee at the shop. Going to a coffee shop is agreat opportunity for them to socialize, interact with others, and enjoy coffee together.External:

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