Trung Nguyên Coffe Strategies for Young Consumers

Chapter I: INTRODUCTION
1. Research Topic:
Strategies to encourage young consumers in Hanoi to take an interest in Trung Nguyen
Coffee (2015-2020)
2. Background:
In recent years, Hanoinians’ demand on leisure activities has increased in terms of
quality and diversity. The types of coffee that are on trend include: instant coffee (comes in
packs), phin coffee (grinded coffee beans brewed through phin filter), mixed coffee (multiflavored). However, each type of coffee attracts a different range of customers. For
example: the middle-age takes an interest in phin coffee or instant coffee and have the habit
of shipping a cup of coffee before going to work, whereas young customers prefer going to
trendy cafés that offer a wide variety of beverages in the late afternoon or evening.
Specifically, young consumers in Hanoi tend to like foreign coffee brands such as
Starbucks (American), the Coffee Bean & Tea Leaf® (American), Gloria Jean’s Coffee
(Australia), Angel in Us (Korea) and so on. It is an undeniable fact that those brands are
dominating Vietnam as well as Hanoi coffee market.
Vietnamese coffee brands, unfortunately are at a slight disadvantage. Trung Nguyen
coffee is a rather strong and stable native brand, whose target customers are the middle-age
who can afford a rather pricy cup of Trung Nguyen coffee. Hanoi capital is a populated area
with young population. If Trung Nguyen manages to attract younger customers, its
customer range and profit will boost considerably.
This study demonstrates strategies to encourage young consumers in Hanoi to take an
interest in Trung Nguyen Coffee within the period from 2015 to 2020.
3. Purposes:
- The study is aimed to find the solution for promoting the drinking habit of Trung
Nguyen coffee among Hanoi youngsters.
-

The paper is hoped to broaden teenagers’ knowledge of the benefit of consuming
a Vietnamese coffee brand.

-

The research is expected to help Trung Nguyen coffee gain more popularity and
interest among domestic consumers in general and Hanoi young consumers in
particular.

8. Outline:
Chapter I:
Introduction
Chapter II: Major findings
1. The real situation of Trung Nguyen Coffee
2. Reasons why Trung Nguyen Coffee should target young consumers in Hanoi


3. Improvements within the brand
4. Raising popularity

Chapter III: Conclusion

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Chapter II: DATA ANALYSIS
From 14/10/2015 to 28/10/2015, a survey was conducted in order to understand
Hanoi young consumers’ opinions on Trung Nguyen Coffee.
1. The real situation of drinking Trung Nguyen Coffee from Hanoi consumers’
perspectives:

Graph 1.1 – Coffee drinking frequency

Graph 1.1 describes coffee drinking frequency of the participants. There are five

participants who “never” drink coffee; however, please note that this frequency is measured
per week, so “never” implies that they rarely drink coffee. Eleven participants drink coffee
every day and one fourth of the participants drink coffee 3-4 times per week. It can be
understood that only some people drink coffee with high frequency. Meanwhile, almost half
of the participants enjoy a cup of coffee once per week. From these figures, we understand
that Trung Nguyen may serve customers who only experience drinking coffee several times
per month; but Trung Nguyen will also have a small number of potential loyal customers
who will come to the shop quite a few times every week.
2. Purposes for targeting young consumers:

Graph 2.1 – Places of preference and Age range

The graph above shows the participants’ age ranges and places where they often
have coffee. There are only 3 participants above 35 years old would like to drink coffee in
branded stores. A small number of participants whose ages are 26 – 35 likes drinking coffee
in workplace and unbranded stores. The majority of the participants are from the age of 18
– 25 and they prefer drinking coffee either at home or in branded stores. It can be inferred
from the age range 18 – 25 that most participants are university students; and their habit of
drinking coffee at home still takes up a majority. That almost half of participants would
rather drink in branded stores is a promising piece of information for Trung Nguyen Coffee.
3. Improvements to be made:
3.1. Improvements from within the products:
The fact that Trung Nguyen Coffee is more popular among the middle-aged leads to
another fact that the coffee and its ingredients are especially combined for the age group’s
likes. Young consumers, similarly, have their likes and dislikes distinctive from those of the
middle-age. These differences are reflected in the results of our survey.
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3.1.a. Distaste flavors:

Graph 3.1.a – Distaste flavors

The chart above releases the dissatisfactions of the customers with Trung Nguyen
Coffee’s tastes basing on four main aspects: too strong flavor, too light flavor, bad
aftertastes and excess sweeteners. A great number of people (about 25%) complain about
such strong flavor due to high caffeine content in ingredients. However, 8% of customers
think that the flavor is not strong enough for them to stay concentrating. People who think
Trung Nguyen products contain excess sweeteners account for 23%. Others have bad
impression on aftertaste and don not want to try them again. All in all, Trung Nguyen brand
should develop more various tastes, lessen caffeine content and sweeteners to fulfill the
customer’s requirements.
3.1.b. Customers’ satisfaction:

Graph 3.1.b – Customers’ satisfaction

In this case, there are four aspects that are rated by visitors. Firstly, the factor which
makes most customers feel pleased to enjoy is undoubtedly the drink, with nearly half of all
the people who have done the survey claim that they find the taste of Trung Nguyen's coffee
bold dandy in a positive way. Secondly, the service provided by Trung Nguyen staff is also
highly appreciated: 28% of the people asked ranked the attitude of the employees as very
satisfied. However, 18% and 10% of the customers feel unpleased to very discomfort when
served by Trung Nguyen coffee's staff; which means the brand still has to focus more on
training the manners of their personnel. On the other hand, the price of the goods and
services in Trung Nguyen stores receives many complaints from the visitors. In total, 59%
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of them give negative feedback about the expensive cost (from 60,000 to 100,000 VNĐ) for
a cup of drip Vietnamese coffee which prevents some customers, especially youngsters,

from trying the traditional coffee of Vietnam. Last but not least, the interior design of the
stores seems not so impressive to customers in either positive or negative way, but the 30%
of dissatisfaction should still be taking care of more seriously.
3.1.c. Price range preference

Graph 3.1.c – Price range preference

As it can be seen, the chart indicates the price references of most customers at the
age from 18 to 25 years old in Hanoi. We give three main price levels for the customers to
choose. Firstly, it can be seen obviously that a great number of customers (about 78%)
prefer to use Trung Nguyen product at the price from 25,000VND to 45,000VND due to
their medium wages. Only 22% of consumers say that they can afford at the price from
50,000VND to 75,000VND as long as the standard of the product is worth it. However, no
customer accepts the price level of over 80,000 VND. In conclusion, Trung Nguyen brand
should adjust price to satisfy its customers.
3.1.d. Additional promotion:

Graph 3.1.d – Additional promotion

When asked about the kind of promotion they are fond of, 67% of the customers
choose the traditional one - membership card. This will provide the customers a chance to
have discount or gift in special occasions and other interesting deals for the loyal members
only. Secondly, free vouchers are selected by a quarter of the people who did the survey.
Vietnamese are also keen on enjoying this kind of promotion as vouchers can offer them
more than what they pay (buy one get one for example). Lastly, check-in discount has the
least percentage. This may due to the need for using the Internet to get online right at the
stores, which is quite hard for some elders but very familiar with teenagers.
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3.1.e. Additional features:

Graph 3.1.e – Additional Features

In another case, people are asked to give advice about the feature they would like to
add to Trung Nguyen. Bakery seems to be the most popular since it accounts for 60% of the
answers. As expected, youngsters always love something sugary to go along with the bold
taste of the coffee. Sharing the same proportion, fast food and meal sets both chosen by
20% of the customers.
3.2. Raising brand popularity:
In order to make young consumers buy Trung Nguyen Coffee, it is advisable to
understand what attracts consumers’ attention and what drives they to buy a product.
3.2.a. Public awareness:

Graph 3.2.a - Trung Nguyen Coffee’s popularity

It can be seen from the pie chart through which means of communication
participants know about Trung Nguyen Coffee. Broadcast media and acquaintances take up
to totally 87% of the pie, inferring Trung Nguyen has been doing a great job of advertising
its name through broadcast media. Moreover, the fact that 44% of participants know about
the brand through friends and relatives means that young consumers value their
acquaintances’ feedbacks and reviews highly. Printed media and the internet take up a small
percentage of the pie chart. Indeed, Trung Nguyen Coffee has been neglecting its
advertisement through printed media and its appearance in the virtual world is yet to project
strong positive impressions towards internet users. Additionally, we would like to take a
closer look at the willingness to introduce Trung Nguyen coffee to other individuals of one
group of participants and the results turns out quite positive. Among 30 participants who
know about Trung Nguyen coffee through acquaintances, 80% are likely or very likely to
recommend Trung Nguyen Coffee to others, and only 20% do not want to introduce the
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brand to anyone. From these numbers, we can see the strong and weak points of Trung
Nguyen Coffee in making its name known among young consumers, as well as the positive
turnout of raising its popularity through means of communication.
3.2.b. Visit purpose and Location preference:

Graph 3.2.b – Visiting purposes & Locations
preference

The graph above clearly show the customers’ purpose when visiting Trung Nguyen
Coffee and places where a part of customer would like the coffee shop located. It can be
seen from the bigger pie chart, 17% of the customers come to Trung Nguyen Coffee to
study, 22% for business purposes, whereas over 60% of the participants choose Trung
Nguyen when hanging-out. As a result, we would like to take a closer look at the customers
with hanging-out purpose. The smaller chart illustrates the options of these 60.9% people. A
great number of people would like to have Trung Nguyen coffee in multi-function buildings
such as Vincom mall chain, Lotte departments, AEON Mall, etc. Meanwhile, 26% of
customers prefer to visit Trung Nguyen at university campus. However, only 4% think that
the coffee shop should be located in sight-seeing spots. From these numbers, we can see the
places that Trung Nguyen should start the business and find the solution to help Trung
Nguyen serve customers with the best service.

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Chapter III: CONCLUSION
1. Summary:
-

Survey among 18 to 25 years old – young customers
Half of the survey participants have the habit of drinking coffee at home; some
do go to branded stores to drink coffee, but only once a week
They dislike too strong-flavored and light-flavored coffee
Participants show positive response to the beverages but negative feedbacks
towards the interior design, staff services and prices
They are only willing to pay a rather low price range for a cup of coffee (25,000
– 45,000 VND).
Participants also wish to have membership privileges as well as free vouchers
given by Trung Nguyen Coffee
They want bakery to be added as an additional feature to every store.
In terms of popularity, Trung Nguyen Coffee has been known through the
positive recommendations of participants’ acquaintances.
Participants would like to see more Trung Nguyen coffee stores in multi-function
buildings and school campuses – those are places they often visit.

2. Conclusion:

The survey studies about Hanoi young consumers’ opinions on Trung Nguyen
Coffee. Based on the results, strategies to attract young consumers in Hanoi will be planned
and put into action. Through the survey, we concluded that:
Young Hanoinians either drink coffee at home or at branded stores.
- They dislike overly extreme flavors in coffee.
- Trung Nguyen Coffee needs to improve its interior design, staff services and
product prices.
- The young want Trung Nguyen Coffee to add bakery, membership cards and free
vouchers to the store chains.
- Those have been to Trung Nguyen Coffee are likely to recommend the brand to
others.
3. Suggestions:

-

Several suggestions can be drawn from the results of this survey:
3.1.

Trung Nguyen Coffee needs a reform in interior design in order to refresh its
image without losing the traditional image of Vietnamese coffee. Organizers
should also take note that 50% youngsters come here for hanging out, which
means the place needs to be spacious and airy; meanwhile, those who come to
relax or for study or business purpose should be given their personal quiet space.

3.2.
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Trung Nguyen staff should be better-trained.


3.3.

It is advisable that Trung Nguyen extend its coffee menu. Perhaps adding a new
menu section for students with softer prices will attract younger customers.

3.4.

Opening chain stores in multi-function buildings has been a trend in recent years.
It catches lots of attention from building visitors but also faces fierce competition
from other brands. Meanwhile, opening Trung Nguyen Coffee stores in university
campuses is a creative idea; of course, prices should be adjusted along with
additional promotional features.

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APPENDIX
Survey questionnaires
Young consumers' opinions on Trung Nguyen coffee | Khảo sát ý kiến người tiêu dùng trẻ
về cà phê Trung Nguyên
We are a group of students from AEP (Advanced Educational Programs) of National
Economic University and we are carrying out a research about Trung Nguyen coffee. Here
is the study about how consumers assess the products and services provided by Trung
Nguyen coffee. We hope that you can spend some time to complete the survey in order to
support our project. Your responses to these following questions will be used in our
research.
To complete the survey, please choose the answer that you find appropriated by ticking
the answer of each question and the chart.
* Required
Which age range do you belong to? *
Bạn thuộc nhóm tuổi nào dưới đây?
o
13-17
o

18-25

o

26-35

o

above 35 (trên 35 tuổi)

How often do you drink coffee every week ? *
Bạn uống cà phê bao nhiêu lần mỗi tuần?
o
once a week (một lần mỗi tuần)
o

3-4 times a week (3-4 lần mỗi tuần)

o

everyday (hàng ngày)

o

never (không bao giờ)

Where do you often drink coffee ? *
Bạn thường uống cà phê ở đâu?
o
Home (ở nhà)

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o

Branded stores (ở các cửa hàng có thương hiệu)

o

Unbranded stores (ở các quán vỉa hè hoặc không có thương hiệu)

o

Workplace (ở nơi làm việc)

How do you know about Trung Nguyen coffee ? *
Bạn biết đến cà phê Trung Nguyên qua đâu?
o
Internet (mạng internet)
o

Friends and relatives (bạn bè và người thân)

o

Broadcast media (truyền thông kĩ thuật số)

o

Printed media (truyền thông in ấn)

Which kind of Trung Nguyen beverage do you find unpleasant ? *
Loại nước uống như thế nào của Trung Nguyên làm bạn không có cảm tình?
o
Too strong-flavored (vị quá đậm)
o

Too light-flavored (vị quá nhạt)

o

Excess sweetener (có quá nhiều chất tạo ngọt)

o

Aftertaste (dư vị khó chịu)

How satisfied are you with Trung Nguyen coffee brand ? *
Mức độ hài lòng của bạn với cà phê Trung Nguyên:
Very
dissatisfied
(Rất không
hài lòng)
Drinks (Đồ
uống)
Interior
Design
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Dissatisfied
(Không hài
lòng)

Neutral
(Trung lập)

Satisfied

(Hài lòng)

Very
satisfied
(Rất hài
lòng)


Very
dissatisfied
(Rất không
hài lòng)

Dissatisfied
(Không hài
lòng)

Neutral
(Trung lập)

Satisfied
(Hài lòng)

Very
satisfied
(Rất hài
lòng)

(Thiết kế
nội thất)

Service
(Dịch vụ)
Price (Giá
tiền)
How would you like to improve the brand ? *
Bạn muốn có những thay đổi gì về phía cà phê Trung Nguyên?
At what price range are you willing to pay for a cup of Trung Nguyen coffee ? *
Bạn sẵn sàng trả tiền cho một cốc cà phê Trung Nguyên với tầm giá nào?
o
25k-45k
o

50k-75k

o

80k and above

What purpose do you visit Trung Nguyen coffee for ? *
Bạn đến uống cà phê Trung Nguyên với mục đích gì?
o
Hangout (đi chơi với bạn bè)
o

Study (học hành)

o

Business (lí do công việc)

What kind of promotion from Trung Nguyen coffee would you like to have ? *
Bạn mong chờ hình thức ưu đãi nào sau đây của cà phê Trung Nguyên?
o
Membership cards (thẻ thành viên)
o

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Check-in discount (check-in để nhận giảm giá)


o

Free vouchers (voucher miễn phí)

o

Other:

What features do you like to add to Trung Nguyen coffee? You may choose more
than one answers *
Bạn muốn thêm đặc điểm nào cho một cửa hàng cà phê Trung Nguyên? Bạn có thể
chọn nhiều hơn một câu trả lời
o
Bakery (bánh ngọt)
o

Fast-food (đồ ăn nhanh)

o

Meal sets (ăn theo suất)

o

Other:

Where would you like to have Trung Nguyen coffee store located ? *
Bạn muốn có cửa hàng cà phê Trung Nguyên ở nơi như thế nào?
o
University campus (khuôn viên trường đại học)
o

Multi-function buildings (tòa nhà đa chức năng)

o

Sight-seeing spots (những điểm du lịch)

o

Other:

How likely would you recommend Trung Nguyen coffee to others ? *
Bạn có muốn giới thiệu cà phê Trung Nguyên tới những người khác không?
o
Very likely (rất muốn)
o

Likely (muốn)

o

Unlikely (không muốn)

Submit

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100%: You made it.


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