Đề tài: Marketing of g7 of trung nguyen corporate

Appendix
ABSTRACT...........................................................................................................................................................2
PART I: INTRODUCTION..................................................................................................................................3
1.1. Trung Nguyen Corporation...............................................................................................................3
1.2. History and development..................................................................................................................3
1.3. Trung Nguyen Franchise system……………………………………………………………..3
1.4. Vision, mission and corporate values...........................................................................................4
1.4.1 Mission of Trung Nguyen Corporation........................................................................................... 4
1.4.2 Vision of Trung Nguyen Corporation.............................................................................................. 5
1.4.3 Corporate Values....................................................................................................................................... 5
1.5. Achievement of Trung Nguyen Corporation...............................................................................5
1.6. Product of Trung Nguyen Corporation.........................................................................................6
1.7. Introduce about G7 of Trung Nguyen Corporate......................................................................6
PART II: MARKETING & MARKETING MIX STRATEGY OF G7..................................................................7
2.1. Marketing strategy..............................................................................................................................8
2.1.1. Market Penetration strategy..................................................................................................... 8
2.1.2. Market expansion strategy........................................................................................................ 8
2.1.3. Product development strategy............................................................................................... 10
2.1.4. Diversification Strategy........................................................................................................... 10
2.2. Marketing mix strategy...................................................................................................................11
2.2.1

Product Strategy of Trung Nguyen coffee.............................................................................11

2.2.2

Price Strategy..................................................................................................................................... 13

2.2.3

Place strategy..................................................................................................................................... 13

2.2.4

Promotion strategy.......................................................................................................................... 15

PART III: EVALUATION AND RECOMMENDATION..........................................................................16
3.1. Strength and weakness of marketing strategy.......................................................................16
3.1.1. Strength..................................................................................................................................................... 16
3.1.2. Weaknesses.............................................................................................................................................. 16
3.1.3. The difficulties and challenges....................................................................................................... 16
3.2. Recommendation..............................................................................................................................17
3.2.1. For Trung Nguyen Corporation...................................................................................................... 17
3.2.2. For government..................................................................................................................................... 17
PART IV: CONCLUSION.................................................................................................................18
References....................................................................................................................................18
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Marketing strategy of Trung Nguyen Corporation


ABSTRACT
The world has shown that coffee really becomes an industry with a total transaction
value is $ 80 billion worldwide, second only to oil in value of goods and gold over silver,
gems, oil goods to become the most speculative. This sector has expanded and contained
the elements of finance, commerce, investment, culture, knowledge economy, tourism,
travel coffee.
Trung Nguyen is a coffee supplier in Vietnam market and the world. Trung Nguyen
oriented regardless of age, gender, job, income or area, which have demand and
enthusiasts about coffee over the word. And to achieve that ambition, Trung Nguyen
Group began to act with strategic short and long term, and most are specific strategies to
build "coffee capital of the world" in Buon Ma Thuot. Trung Nguyen constructs goals:

"Dominates Domestic coffee Market, conquer the world market", by shifting from width
to depth, investment and development franchise system in domestic and international.
Trung Nguyen is a successful magic of branding in Vietnam in recent years. Within 5
years, from a small workshop in Buon Ma Thuot, Trung Nguyen was in the country.
Trung Nguyen has made a spectacular entry in the history of branding Vietnam.
Besides that they also have many challenges and threats. Because, Trung Nguyen
Corporation has many competitors such as Nescafe, Starbucks, Dunkin Donut
So, when getting the subject from the teacher, our group is excited and wanted to
complete the essay with all the knowledge and skills of the group to clarify the issue:
“Marketing & Marketing mix strategy of G7”.

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Marketing strategy of Trung Nguyen Corporation


PART I: INTRODUCTION
1.1. Trung Nguyen Corporation
Each user coffee in Vietnam, certainly, has heard at least once time the word “Trung
Nguyen coffee”. This is a famous coffee brand not only domestic but also resonated in
difficult foreign markets such as USA, China, Japan, and EU.
Trung Nguyen Corporation was launched in mid-1996 – Trung Nguyen coffee is a
fledgling brand in Vietnam, but has quickly built up a reputation and become a coffee
brand most familiar to consumers both at home and abroad. Within 10 years, Trung
Nguyen has been a resurgence of powerful corporation
1.2. History and development

• 1996 – Establishment of Trung Nguyen Coffee Company
Establishing in Buon Me Thuot
• 1998 - Bring New Inspiration
Trung Nguyen's slogan appeared in all the opulent streets of Saigon.

• 2000 - Over 100 Trung Nguyen coffee shops were set up
Trung Nguyen appeared in all of South West Provinces and was launched in Hanoi
• 2001 - "Explore creative inspiration"
Trung Nguyen opened more branches in different provinces and cities of Vietnam
• 2002, 2003 Trung nguyen coffee expanded to Singapore, Thailand, Cambodia
New products line of Trung Nguyen was launched such as Tra Tien, especially G7 instant
coffee
• 2005 Formally inaugurated the Roast and Ground Coffee
The only coffee factory granted with the EUREGRAP International Certificate, for its

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Marketing strategy of Trung Nguyen Corporation


cleanliness and excellence in producing coffee.
• 2007
Publishing the Coffee Philosophy of Vietnam and starting the project “The Global Coffee
Sanctuary” in Buon Ma Thuot City.
• 12/2007
Trung Nguyen coordinated with Dak Lak people’s committee to successfully hold the
Cultural Coffee Week 2007 in Ha Noi and Ho Chi Minh City.
• 2008
Opening the New Franchise café system in Vietnam and international, inaugurating the
Trung Nguyen Coffee Village in Buon Ma Thuot City.
• 2009
Opening Trung Nguyen Creative Coffee House in Ha Noi.
Building New Trung Nguyen Coffee Factory in Buon Ma Thuot City,
Short and long term objectives: Dominating the domestic market and conquering the
international market.
1.3. Trung Nguyen franchise system.

Trung Nguyen Coffee is the first Vietnamese company that has applied the model of
franchise. Being active and creative, Trung Nguyen has established the franchised shop
system nationwide and also in Japan, Singapore, Thailand, Cambodia, Ukraine, German
and China with a special style of coffee enjoyment.
With the business method of franchise, Trung Nguyen coffee products, which are
produced by the best coffee beans from the highland of Buon Ma Thuot in conjunction
with modern technologies and company’s own skills, are introduced to everybody
nationwide and worldwide.

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Marketing strategy of Trung Nguyen Corporation


Today, with about 1,000 franchised coffee shops, Trung Nguyen always brings people
Vietnamese coffee of top quality in any Trung Nguyen coffee shops
1.4. Vision, mission and corporate values
1.4.1 Mission of Trung Nguyen Corporation
Creating the leading brand is carried out by bringing to everyone drinking coffee a
source of creative inspiration and pride of Trung Nguyen" style that is rich in
Vietnamese culture”

1.4.2 Vision of Trung Nguyen Corporation
To become a major force in boosting the Vietnamese economy; To uphold stability of the
national economy; To partake in the establishment of a Great Vietnam, with hopes of
discovering and conquering new ideal
1.4.3 Corporate Values
Core value
1- Inspired Creativity: Creativity is one of the many values Trung Nguyen encourages
among its valued consumers and employees.
2 -Develop and protect our brand: Every member has a responsibility of building,

expanding, maintaining and protecting the Trung Nguyen trademark.
3 - Consumer'sOrientation: Consumer satisfaction is the top priority in every activity
and the target goal.
4 - Build our success upon our partner's success: A good partnership is based on belief,
respect, and equality. The success of a partner is the success of the whole Trung Nguyen
group.
5 - Develop strong human resource: Providing proper benefits-- both material and
spiritual needs through training and developing opportunities for its employees.
6 - Base on effectiveness.
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Marketing strategy of Trung Nguyen Corporation


7 - Promote social responsibility and community development: Actively contributing to
the welfare of the community and the development of society
Corporate beliefs


Coffee makes the world more prosperous



Coffee is the fuel to the knowledge economy



Coffee foster harmony and promotes sustainable development

1.5. Achievement of Trung Nguyen Corporation
Leading coffee company in Vietnam

-

Biggest exporter in Vietnam of processed coffee

-

“The Red Star Award” for Mr. Dang Le Nguyen Vu – General Director – awarded by

Vietnamese Young Enterprise Association in 2001
-

“The Yellow Star of the Vietnam” awarded by Vietnamese Young Enterprise

Association in 2003
-

“Third grade Labor Medal” awarded by Vietnamese Government in 2004

-

ASEAN Youth Award 2004 – Theme “Youth and Entrepreneurship” for Mr. Dang

Le Nguyen Vu
1.6. Product of Trung Nguyen Corporation
 Weasel - The King of Coffee


Legendee – The legend coffee
Legendee brings you an extremely flavorful and rich coffee from the best Arabica
and Robusta beans in the legendary basaltic soils of Buon Ma Thuot.



Creative 1-2-3-4-5
Creative 1: Experience the distinctive features of Vietnamese coffee in its perfect
combination of elegant aroma, smooth flavor and bitter-sweet taste.
Creative 2: A subtle mix of Arabica's delightful aroma and distinct flavor of
Robusta bean brightens your whole day.
Creative 3: Buon-Ma-Thuot Sparrow Arabica coffee's strong aroma, round
smoothness and refined acidity make it unique.
Creative 4: With Trung Nguyen’s widely-acclaimed unique know-how, Creative 4
brings you an exotic coffee in great depth of flavor and lasting aroma.
6

Marketing strategy of Trung Nguyen Corporation


Creative 5: The finest Arabica beans from Vietnamese Highland giving you a
special taste of bright and extremely flavorful coffeeG7- The coffee for ladies –
collagen and sugar free


Passiona: Selected from fine Arabica and Excelsa beans, Passion coffee with low
caffeine, elegant aroma and bright flavor is a good choice for first-try coffee
drinker.



G7: The original and still the top seller! G7 was the first instant coffee to be
extracted directly from the unroasted coffee bean, not from freeze-dried brewed

coffee like American brands. It's been the top instant coffee in Asia ever since its
creation in 2002.

1.7. Introduce about G7 of Trung Nguyen Corporation.
"Connect and develop coffee enthusiasts worldwide."


Trung Nguyen Corporation is famous with advanced product line, average
products and popular products and the most especially with the line of G7
instant coffee. It’s voted by 89% consumers comparing with 11% choosing
Nescafe. The first time a domestic brand dares “challenge” with an international
brand, world-renowned.



G7 Instant Coffee is known for the type: G7 3 in 1, G7 2 in 1 G7, G7 Pure Black
coffee, G7 Cappuccino. Nowadays, demand for coffee of domestic and
international consumers are more growing and more subtle. After studying
consumer tastes and markets, Trung Nguyen came out product “G7 instant coffee
5 in 1” complementary product lines G7 instant coffee available in the market.



With the Trung Nguyen brand is known and preferred by many people of
Vietnam, G7 rapidly gained a position in Vietnam market. G7 Instant Coffee is
made from the best materials with modern technology and the secret-special
extract. G7 has special flavor, dense and charm, is "taste" Vietnam's coffee. With
the strategy become a major force in boosting the Vietnamese economy,
upholding stability of the national economy, partaking in the establishment of a
Great Vietnam, and hopes of discovering and conquering new ideals. Along with

the aim overthrow the most powerful competitor of G7 is Nescafe - a foreign
company is dominating the largest coffee market in Vietnam. The G7 has a

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Marketing strategy of Trung Nguyen Corporation


background as Trung Nguyen - a famous brand has long been well known but to
G7 sustainable development and claims No. 1 in Vietnam market Trung Nguyen
Corporation must have specific marketing strategy and large scale with the
advertising quality as well as images of G7 instant coffee.

PART II: MARKETING & MARKETING MIX STRATEGY OF G7
2.1. Marketing strategy
2.1.1. Market Penetration strategy
At the beginning, Trung Nguyen Coffee got failure in a long time when it entered to
Saigon market. Until 20/08/1998 they opened a coffee shop for 10 days free, Trung
Nguyen marked the first success. Understanding economic growth is slow, but people's
lives are improved but not changed the habit of spending plans, more saving for the
future ... so spending a difference amount to several hundred thousand Coffee shop and
sidewalk are considered a pretty thoroughly. It is noticed that, Trung Nguyen did not
hesitate to step into the market strategy with an act of faith formation for the potential
consumer. Trung Nguyen activities have introduced the product to customers and led to
enjoy coffee "Trung Nguyen style ". Six months later, the name of Trung Nguyen Coffee
has developed more than a business with 20 years seniority in the city of Buon Me
Thuot. Trung Nguyen has maintained the development of "Strategic Triangle". It can be
said Trung Nguyen is a successful of branding in Vietnam in recent years. Within 5 years,
from a small workshop in Buon Ma Thuot, Trung Nguyen has appeared over the world.
Trung Nguyen is almost fully exploited their advantages in an attractive market:
o Entering the market as the first company processing raw coffee in the market.

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Marketing strategy of Trung Nguyen Corporation


o Huge supplier and competitor give an opportunity to choose and decide the price
of product.
o Customers gradually formed the habit of using coffee at all times, providing the
market a huge demand and potential. Moreover, diverse target markets
stimulates growth of businesses, creates monopoly product.
2.1.2. Market expansion strategy
At the end of 2003, Trung Nguyen coffee products launched G7 and exported G7 to the
developed countries in the world. Trung Nguyen continued developing network with
600 cafes in Vietnam, 121 distributors, 7000 point of sales and 59.000 retail stores in
2004. December 2007, Trung Nguyen coffee combined with Dak Lak People's Committee
organized successfully the Coffee Culture Week in Hanoi and HCM City. In 2008, Trung
Nguyen continued launching new franchise systems in Vietnam and international. In
June 2009, Trung Nguyen started constructing the coffee factory with the modernist
technology in the world at ĐakLak. This is Trung Nguyen's efforts to confirm the value of
Trung Nguyen Coffee brand, Buon Ma Thuot coffee in world market.
After conquering the domestic market quickly with quality and style, unique, Trung
Nguyen started putting its brand in the market in the world with a franchise strategy for
the first time in Singapore 2000. However, their successful is only true when Trung
Nguyen coffee appeared in Japan next to 400 stores a total of 6000 stores Starbucks –
the largest corporation of Coffee in the U.S. and many brands of Japanese coffee.
Up to now, Trung Nguyen brand appear in Japan, Thailand, Singapore, China and the
Czech Republic. Trung Nguyen Coffee roasting is also present in supermarkets and other
stores in the U.S., Germany, Eastern Europe, France and Russia. Dang Le Nguyen Vu is
expanding contracts to seek market share for Trung Nguyen in 15 countries including
Germany, Australia, Canada, Taiwan, Malaysia, Philippines.

In festival coffee to introduce G7 to customer, Trung Nguyen has new strategy for two
brands are G7 and Nescafe. They’re prepared available free of charge to those who
festival participants. Results: 89% of festival participants said that G7 is better than
Nescafe, 11% vote for Nescafe. After this plan, Trung Nguyen advertised their products
through traditional channels, community activities of Trung Nguyen's G7. With Slogan:
“Vietnamese give priority to use Vietnam goods”, Trung Nguyen Coffee has more and
more opportunities to penetrate, develop and expand the domestic market, foreign
market, also.
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Marketing strategy of Trung Nguyen Corporation


However, it’s easy to see that the campaign between G7 and Nescafe is unequal. Nescafe
is a famous brand of Nestle Group and it is controlling market coffee in Vietnam
(Vinacafe, more). G7 is a new product on the market. But the marketing strategy
opposite with Nescafe of G7 is contrast to the principles of marketing strategies for
competitive advantage. This is the first mistake of Trung Nguyen coffee and G7. The
second mistake is not clearly about target customers. Trung Nguyen coffee should find
out about empty markets, market segments, customer segment target. Because target of
Trung Nguyen strategy leads to most of consumers in Vietnam but each person has style
and habit is not the same, some people drink coffee to relaxed, someone drinks coffee to
awake in working or studying, they do not care much about brand or type of coffee,
someone, in contrast, they drinks coffee because the famous brand, it makes them
become professor.
2.1.3. Product development strategy
Before 2003, coffee is the market of MacCoffee, Vinacafe and some foreign coffee.
Not only entry to international market with roast coffee, Dang Le Nguyen Vu really makes
business amazing when he launched G7 instant coffee in 2003 November. The name of G7
instant coffee in his idea is a name easy access international but non-international outlook. It
has mission to conquer, dominates market of 7 developed countries. G7 starts against with

foreigner of great aristocratic family about instant coffee by “G7 instant coffee festival” in
Reunification Palace. Trung Nguyen has changed market share instant coffee in short time:
market share of Nescafe reduced from over 50% to 45%, G7 accounted for 21%, remain of
other brands. Their goal was not only market shares but also beat the "extended" Foreigners
in Vietnam before the world. Trung Nguyen exported G7 to develop countries in the world.
Before, name of Trung Nguyen gradually saturated with the customers both domestic and
foreign. G7 instant coffee has contributed significantly in the redistribution of market share in
the industry. Trung Nguyen is also building plants with values several million dollars to
develop further this product. So, with G7 product development strategy, it brings reputation
for Trung Nguyen. More people use product of Trung Nguyen specially G7. Beside Trung
Nguyen created believable for customers. This strategy makes customer trust and select “Café
Viet” instead of foreign coffee. Thus, this strategy has strong influenced not only domestic
but also foreign market. It has changed market share of coffee in domestic and expanded in
the world. Nowadays, G7 is a product of Trung Nguyen Coffee and a popular brand of coffee
in Vietnam.
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Marketing strategy of Trung Nguyen Corporation


2.1.4. Diversification Strategy
Not stopping with product development strategy, Trung Nguyen also exploited ethnicity to
promote for the G7 "3in1. Dang Le Nguyen Vu presented very well for distributors, agents
know the advantages and limitations of the Trung Nguyen. Based on Vietnamese culture,
coffee brings for customers different sense. Trung Nguyen has researched and developed 30
kinds of coffee preparation of individual taste, created 9 levels of different flavors to their
products. G7 was invested carefully from the packaging, promotion system with the ambition
to conquer the market in 7 developed countries.
April and May, 2007, Trung Nguyen continued offering a new idea for the G7 "3in1". This
was advertisement film compared red cup (which is an image associated with the brand
Nescafe), marked "17% of Buon Ma Thuot coffee" with the cup of the G7 "3in1" marked

"89% coffee of Buon Ma Thuot. In 2007 August, Trung Nguyen continued giving
advertisement film compared to the red cup, but this time the cup G7 "3in1" security seal
"reality Buon Ma Thuot coffee."
Trung Nguyen Coffee introduced G7 "2in1" with the message "help to think better". Most
recently, 2010 April, G7 launched messages: "G7 with Vietnamese aspirations".
With the diversification strategy, Trung Nguyen could compete with Nescafe and Vinacafe. It
helps Trung Nguyen create and develop their products into the market. Besides this strategy
helps Trung Nguyen can get high revenue from their products. This strategy also impacts to
Vinacafe incentives marketing activities. Moreover, it brings reputation for Trung Nguyen
and makes the customer believe and select Trung Nguyen coffee not only domestic but also
international. It also contributes a small part into the development economic of Viet Nam.
2.2. Marketing mix strategy
Marketing mix is a combination of marketing tools used by Coffee Trung Nguyen to
achieve the main marketing in target markets. 4P of marketing mix are product, price,
place, promotion.
The factors influence Marketing Mix:
 Resources (financial, personnel, technology) and the position of enterprise in the
market, characteristic products of the enterprise, life-cycle of the product.
 Depending on the characteristics of market segments participated by enterprise.
 Depending on the environmental factors of economic, social, political,
technological, and competitive.
2.2.1 Product Strategy
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Marketing strategy of Trung Nguyen Corporation




With the objective of conquering the domestic market, Trung Nguyen has
conquered Vietnam’s consumer by instant coffee products made from coffee seed

on basalt land of Tay Nguyen. It brings the different in featured flavor compared
with Nescafe or Vinacafe.



Trung Nguyen’s instant coffee products are various and abundant, satisfy the
different taste for customers. In particular, after many years research and find out
customer demands with dominant of success. Trung Nguyen coffee’s brand has
considered "saturated" with public opinion. Suddenly Trung Nguyen launched G7
instant coffee product in 11/2003, formally contracted with “tycoon” (Nescafe) occupied more than 50% coffee share in instant coffee with the motto "defeat the
foreign brands in Vietnam before entering into the world market".



G7 is not only a product, a brand instant coffee ,but also is an evidence for a great
desire, a turning point of thinking, willing to confront and compete directly with
others brand from multinational companies by undaunted spirit along with
intelligence and ingenious of the Vietnamese people.



G7 instant coffee is the convergence of the best and special in the world. Coffee is
purchased from the best raw materials, produced the most modern technology in
the world, and combined the secretly mystical blending of Eastern. Modern
technology in production process is the ability to extract unique: just take a part
of the most exquisite in each coffee seed to create their coffee products with
distinctive flavor, dense and full of charm. This makes special flavor for G7 and no
instant coffee products in the market has this flavor.



Trung Nguyen has changed the market share of the instant coffee in the short
term: Nescafe market share fell to 45%, 21% G7, remains other brands. This is an
innovation strategy for Trung Nguyen's products at the strongest period.



Trung Nguyen Coffee launched many new product lines such as:

 G7 3 in 1 (0.16kg) directly extracts from green coffee seed, clean, pure from
basalt land at Buon Ma Thuot. It combined with characteristic blending of fresh
coffee and modern technology in Vietnam, Trung Nguyen gives you G7 instant
coffee with delicious and charming product.
 G7 instant black (0.15kg) and dissolve 2 in 1

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Marketing strategy of Trung Nguyen Corporation


 G7 Cappuccino: refined with the most quintessential parts from the best coffee
seeds in Buon Ma Thuot. It combined cream powder and other good quality
materials, added the special -Trung Nguyen and brought enthusiast for G7
Cappuccino in style Italy. G7 Cappuccino has 3 flavors to choose from: Hazelnut,
Irish Cream and Mocha
2.2.2 Price Strategy
Japan is a famous country for the traditional tea ceremony, besides that Japanese coffee
is well known early (1800).Japanese market is a very difficult market about taste but
Trung Nguyen franchise agent in Japan fixes the price for a cup of Trung Nguyen coffee
higher 50% than Starbucks and higher 25% than other local coffee. The success of
Trung Nguyen at Tokyo created breakthrough for Trung Nguyen on integration, as a

leverage to develop the franchise system in other developed countries.

2.2.3. Place strategy
The objective of the system stores G7 is strong support for brand of Vietnam and
becomes the local distribution system as a counterbalance to the distribution of foreign
corporations. Specifically:
 Command of the local market
 Increase double coverage of the point sale
Activities of distribution channel
Trung Nguyen has ambition to become suppliers, major distributors in Vietnam. With
commodities are coffee, Trung Nguyen takes advantage of both the traditional forms of
distribution and modern to achieve the most effective result.

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Marketing strategy of Trung Nguyen Corporation


Diagram of distribution system of Trung Nguyen Coffee
We feel that Trung Nguyen used a multi-channel system in the performance of their
products to offer consumers. In addition to maximize its function, distribution system
was demonstrated on the strategic vision of Trung Nguyen in place strategy.
To maintain the distribution system, as well as ensuring the operation of the overall
company efficiency, Trung Nguyen sets up five branches: Hanoi, Da Nang, Ho Chi Minh
City (Headquarters) , Lam Dong and Can Tho.
For franchise systems
- As the first application Franchise in 1998, just two years after appearing on the
market.
- Currently, the company maintains Franchise system includes more than 1,000 coffee
shops over our country and 8 foreign restaurants such as the USA, Japan, Singapore,
Thailand, China, Cambodia, Poland, and Ukraine.

- This is a vertical channel.
Traditional intermediary distribution
- The channel has three levels to bring products for consumers: Wholesales
(distributors), retailers (point of sale and retail stores: grocery store) and consumers
- The traditional distribution channel
Trung Nguyen has three coffee factories in VietNam, 121 exclusive distributors, 7,000
outlets and 59,000 retail outlets.
Factory
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Marketing strategy of Trung Nguyen Corporation


Factory in Tan Dong Hiep A, Binh Duong Province.
+ Capacity: 3,000 tons capacity coffee / year
+ The total investment is over $ 10 million.
Plant in Buon Ma Thuot, Dak Lak
+ Investment about 711.72 billion VND (40 million).
+ Capacity of 60,000 tons / year
Processing plant roasted coffee drunk in Buon Ma Thuot, Dak Lak
+ Capacity: 10,000 tons / year.
+ Largest plant highlands, 80% for export production.
Intermediate modern distribution
G7 Mart
- This is the first retail system in the form of franchise in Vietnam
- There are 200 suppliers for the G7 chain stores in our country.
- Highlights of G7 Mart, according to Trung Nguyen's vision are to satisfy small shopping
habits, retail purchase of Vietnamese, and usually buy near the house.
- Therefore, G7 Mart usually staged on a small scale as a grocery store and in the alley.
However,G7 Mart overcomes the disadvantages of traditional distribution is the grocery
store when the price is low, uniform, ensuring the same as a supermarket and IT

applications in the management process.
Supermarkets
- We see that Trung Nguyen used vertical distribution channels for its distribution
system.

2.2.4. Promotion strategy
- With this new product Trung Nguyen has boldly apply the powerful methods of new
media to attract the attention of consumers.
- With Trung Nguyen Coffee, anyone can also use the product when launching any
product on the market, Trung Nguyen approaches to target audience, target of G7
instant coffee that is "taste" of specialty coffee users.
- Using music to coffee system of Trung Nguyen franchise to create a style enjoying was
fresh and impressive. Music is a spiritual food of people, but coffee is a great drink to

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Marketing strategy of Trung Nguyen Corporation


enjoy. It would be expected that the efficiency of Trung Nguyen when applying this
method.
- Choose a song purchased license with the mainstream values that Trung Nguyen would
like to recommend in this new product. It puts into the advertisement, it will be
televised in prime time that song becomes for the soul and impress the viewer.
- Exploit of free advertising on social networking such as Facebook, Youtube.
- Use advertising poster, contact advertising in supermarkets, shopping centers.
- Sponsor competitions and conferences to promote products.
- Trung Nguyen has the promotion that appropriate for each stage and long-term
campaign.
- According to Trung Nguyen Coffee, this company has decided to invest 15 billion for
the Festival of Buon Me Thuot Coffee 2011. This is one attempt to become the coffee in

the world.
- Advertise on the domestic and international publications such as marketing and family,
TV Magazine, Miss Viet and so on.

PART III: EVALUATION AND RECOMMENDATION
3.1. Strength and weakness of marketing strategy
3.1.1. Strength
 Quality was the first to go under the franchise system, wide distribution system.


Better information channels, PR



Strong financial resource from Trung Nguyen corporation



Variety of products, from primary to middle and high-class products.
16

Marketing strategy of Trung Nguyen Corporation




Convenient, good atmosphere, clean place and attractive decorations.



Diversified, delicious taste have been satisfying different demands of customer in
the world



Famous coffee brand name of Viet Nam, so many people know it, they are not
only Vietnamese but also foreign

3.1.2. Weaknesses
 Trung Nguyen Corporate is implemented of the franchise network too wide
range. The management and supervision are weak. There are too many projects
and ambitions in the same time leading to scattered power, capital, intellectual.


It’s becoming heterogeneous in many aspects. Can clearly see the difference in
price, quality and supply of coffee at the bar serving Starbucks. The level of
investment in space is decorated with a huge difference.



Trung Nguyen is the strategic use of price differentiation, which means "the price
that our customers do." The objective of this strategy is to maximize profit. This
does not fit much in franchising.

3.1.3. The difficulties and challenges
The introduction of Trung Nguyen coffee products G7 is a concern. As soon as this
product was launched, Trung Nguyen made a series of marketing activities to advertise
new products. G7 has earned certain success during the early and marketing strategy is
to declare against with Nescafe. It is easy to see that the flight G7 - Nescafe is unequal.
Nescafe is a famous brand of Nestle Group has a dominant coffee market in Vietnam (in

addition to Vinacafe). G7 is just a new product on the market. But the marketing strategy
of G7 confrontation with Nescafe is gone against to the principles of marketing
strategies for competitive advantage. This is the first mistake of Trung Nguyen and G7.
As a latecomer in the field of instant coffee, Trung Nguyen should find void market,
segments market, and segment target customer. Because styles and habits of each
person when drinking coffee is not the same. Some people drink their coffee is simply
the habit of drinking coffee to awake in work or study, they do not care much about
brand or type of coffee, as long as the coffee to drink. However, there are people who
drink coffee are for relax and entertainment after hard working or simply they enjoy
their favorite coffee of a certain brand. Sometimes, people drink coffee because of wellknown brands of the company, they will feel more sophisticated, more professional style
17
Marketing strategy of Trung Nguyen Corporation


through a coffee brands. Meanwhile, Trung Nguyen's strategy will target the vast
majority of consumers in Vietnam. So, maybe the second mistake of Trung Nguyen and
G7 is not clearly defined target customers.
Trung Nguyen is gradually in danger of losing credibility when cannot control other
operations of franchised dealers.
3.2. Recommendation
3.2.1. For Trung Nguyen Corporation
 Complete management method in franchise system.
 Specialization role of each member in marketing system.
 Trung Nguyen need new resource, new spirit
 Need to establish a new brand of justice to the coffee growing countries in the
world
 Establish mechanisms to bring the harmony of interests for all concerned
 To pay attention to governance issues of distribution channels
 Development of retail stores a more professional style
 Re-established brand with deep and ethnic pride.

 Accelerating development of distribution network based system distributors,
dealers and stores available on the market
 Development of quality human resources, IT systems to ensure quality of service
of the company
3.2.2. For government
 Party and Government leaders need to make policy development and realization
of the project, with its own policies for "ecological economy in Dak Lak."
 Create mechanisms and policies to support resources.
 Make decisions with political for regional economic development.
 Increased competition for retailers in the distribution system.

PART IV: CONCLUSION
Today, coffee is a commodity business-critical production. Vietnam's coffee industry
increasingly confirmed its position in the world coffee market. Every year, the coffee
industry has taken the country a significant amount of turnover and resolved
employment problem, maintained life for hundreds of thousands of households in
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Marketing strategy of Trung Nguyen Corporation


mountainous areas, especially the Trung Nguyen. These achievements that have
confirmed the position and role of the coffee sector in the national economy, contributed
to industrialized and modernized the country.
Marketing strategies for Trung Nguyen have built a reputable brand in the minds of the
customers and consumers not only in domestic but also foreign in the product.
Trung Nguyen Coffee can say that is the pride of our country in a prestigious brand in
the international.
In short, after nearly 15 years of construction and growth, Trung Nguyen has
constantly strived and achieved important achievements to contribute the development
of the country's economy is the most strategic locations on Highland. Besides, the

results of Trung Nguyen Coffee also faced many difficulties and challenges in capital,
competition, market, technologies and so on but Trung Nguyen still worthy is one of the
leading business Vietnam's coffee industry. Trung Nguyen coffee brand was confirmed
strong reputation in the business world, appreciated in the world. Trung Nguyen Coffee
contributed to affirm images of the Vietnam Business for friends around the world, set
the stage for the Vietnam Business and reached further into other international markets.

References
Text book: Chiến lược kinh doanh của tập đoàn café Trung Nguyên- ThS. Đỗ Văn Tính
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Marketing strategy of Trung Nguyen Corporation