International busniness strategy of trung nguyen coffee

International Busniness Strategy of Trung Nguyen Coffee
Group 3:
Vu Thi Loan
Doan Duy Tien
Nguyen Thi Hien
Nguyen Thi Ngoc Anh

1


Outline
1

2

Founding story

Key factors to success
3

3

Reflection

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2


Products
Involving in the production, processing and distribution of coffee

3


How did the founder think of the idea?
Vietnam is one of the leading coffee producers in the world.
A vision of creating a famous coffee trademark & introduced the authentic Vietnamese coffee to the world.

4


Idea



How did the founder think of the idea?



The Highland region of Vietnam is one of the world's "top 10" best environments, combining
the right altitudes, soils, natural drying conditions, and temperatures for producing the finest of
gourmet coffees. Yet the region was not controlling its own destiny to produce these once
sought-after coffees.



The owners of Trung Nguyen saw that the future for producing gourmet coffee and being
reasonably independent of the world commodity markets was to once again follow the best
possible growing and processing techniques to produce a world-class coffee, and carry it
through all the way to the packaged product.

At that time, Vietnam had risen once again to be one of the leading coffee producers in the
world, but almost solely producing "green" coffee (unroasted beans) that were sold on the
commodity market. This resulted in no control over the final coffee quality or prices.

5


Establishment & Vision
In 1996, Dang Le Nguyen Vu founded Trung Nguyen coffee, with a vision of creating a famous coffee
trademark & introduced the authentic Vietnamese coffee to the world.

6


Establishment
On June 16, 1996, Dang Le Nguyen Vu founded Trung Nguyen in Buon Ma Thuot,
Vietnam
Four young entrepreneurs with a vision of creating a famous coffee trademark, established
Trung Nguyen Coffee Company and introduced the authentic Vietnamese coffee to the
world

7


How did the founder think of the idea?
Vietnam is one of the leading coffee producers in the world, but almost solely producing "green"
coffee (unroasted beans)
The Highland region of Vietnam is one of the world's "top 10" best environments
The owners of Trung Nguyen saw that the future for producing gourmet coffee.

8






Legendee coffee




Bean coffee

Fresh coffee
G7 instant coffee: Roasted and ground coffee: Filter Coffee (1,2,3,4,5), Creative Coffee
(1,2,3,4,5,8), Espresso, Blend (I, S, N, Premium Blend, Gourmet Blend, House Blend).
Trung Nguyên coffee products use a variety of different coffee beans, including Robusta,
Arabica, and Excelsa.[5]

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Key factors of success
4Ps of marketing: emphasized on Production & Place

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Differential Product
In Western’s coffee = good material + high

In Trung Nguyen coffee = good material + high

technology + some opinion about cultures.

technology + Eastern’s secret + new opinion about
coffee.

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Differential Product

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Inimitable secret formula

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- Target:

to unify domestic market, to conquer international markets, develop franchise system in Viet

Nam and foreign countries.
- 1000 coffee shop franchised in Viet Nam and 8 foreign countries
- 13.265.826.449 cups of coffee are consumed up to 2013

14


Place
The combination between Eastern culture & Western culture

15


Trung Nguyen’s strategy

to create perfect energy source for brain, to
assist creativeness and success, to connect and
develop a community of loving coffee for the
prosperous and sustainable world.

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Trung Nguyen’s strategy

Select the best coffee beans mixed with the
tremendous passion to create perfect energy source
for brain, to assist creativeness and success, to
connect and develop a community of loving coffee
for the prosperous and sustainable world.

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Target market

Dominating domestic market, conquering international markets, develop franchise
system in Viet Nam and foreign countries

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Expand the market: Franchise
1998: Open first coffee store, in Ho Chi Minh city.
2000: in Singapore, the first Vietnamese company applied “franchising” model domestically and internationally.

Up to now:
Thailand,

Japan, Singapore,

Cambodia,

China,

Ukraine, Poland, USA

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Place
The combination between Eastern culture & Western culture

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Requirements for franchised stores:
- Trung Nguyen wants to bring to customers not only the most delicious coffee
cups but also special coffee culture, Vietnam coffee culture.
- Serving highest quality coffees.
- Using the modest technology and specially oriented secrets.
- Serving staffs are trained and deeply understand about coffee.
- The special space bring creative inspiration for customers.
- Interior and decoration carry Vietnamese style that make customers feel they
are resting in a Vietnam miniature.

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Franchised Stores

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Choosing international strategy
Reduce cost: low

 Coffee is popular drinking in Western
 Coffee is protected right and brand by Government, support product cost and give advantage to export
oversea. Allow establish association to develop together.

 Vietnam joined WTO that help Trung Nguyen become well-known not only in domestic but also foreign
countries

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Local responsiveness: low

 - Each country, each local has different taste about enjoying coffee.



- Trung Nguyen have more than 30 kinds of product
which can satisfy all type of customer.

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Trung Nguyen coffee has more than 60 countries: US, the UK,
Japan, Singapore, China.etc
The main export markets:

3. Entry Strategy

- the center economic in the world

- the3.1.Exporting
business environment is less risky, so political stability

=> Consumers have the habit of using good quality products, high prices, the company will not under pressure to
reduce costs.

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