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UNIVERSITY OF FINANCE – MARKETING

HO CHI MINH CITY

The Coffee House

Marketing Mix 7P’s Strategy

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Course Name & Code: Service Marketing - 2021702052712

Liễu Hoàng Lan Anh - 1921001273

Nguyễn Viết Trường Giang - 1921006675

Lưu Phương Hà - 1921000737

Trần Thảo Nguyên - 1921005571

Nguyễn Thanh Như Ngọc - 1921005561

Huỳnh Hồ Bảo Trân – 1921000967

JULY, 2021
INDEX
SECTION 1. INTRODUCTION…………………………………………………………...1

1.1 SITUATION OF THE SERVICE INDUSTRY IN THE WORLD.......................................1


1.2 SITUATION OF THE SERVICE INDUSTRY IN VIETNAM............................................1
1.3 CATEGORIES OF SERVICES IN VIETNAM....................................................................1
1.4 ABOUT THE F&B IN VIET NAM.......................................................................................2
1.5 ABOUT THE COFFEE SHOP  IN VIET NAM....................................................................3
1.6 ABOUT THE COFFEE HOUSE...........................................................................................5
1.7 THE COFFEE HOUSE ESSAY STRUCTURE....................................................................6

SECTION 2. MARKET & COMPETITORS ANALYSIS..............................................................7


2.1 MARKET ANALYSIS..........................................................................................................7
2.2 INTERNAL CORPORATE ANALYZE...............................................................................7
2.3 COMPETITOR ANALYSIS..................................................................................................7

SECTION3. TARGET CUSTOMERS ANALYSIS & POSITIONING STRATEGY...................9


3.1 TARGET CUSTOMERS.......................................................................................................9
3.2 SOME OF THE TARGET CUSTOMER’S RELEVANT BEHAVIOR...............................9
3.4 POSITIONING.....................................................................................................................12
3.5 IDENTIFYING AND SELECTING TARGET SEGMENTS.............................................12
3.6 POSITIONING DISTINGUISHES A BRAND FROM ITS COMPETITORS...................13

SECTION 4. MARKETING MIX (7PS) STRATEGY.................................................................15


4.1 SERVICE PRODUCT STRATEGY....................................................................................15
4.2 PRICING STRATEGY........................................................................................................20
4.3 DISTRIBUTION STRATEGY............................................................................................22
4.4 PROMOTION STRATEGY................................................................................................26
4.5 SERVICE PROCESSES MANAGEMENT........................................................................31
4.6 PHYSICAL EVIDENCE MANAGEMENT.......................................................................33
4.7 PEOPLE MANAGEMENT.................................................................................................37

SECTION 5. EVALUATION & RECOMMENDATION.............................................................42


5.1 EVALUATION....................................................................................................................42
5.2 RECOMMENDATION.......................................................................................................45

CONCLUSION..............................................................................................................................48

LIST OF REFERENCES & ORIGINALITY................................................................................49

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INDEX OF TABLE
Table 1.1 4 categories of services in VietNam................................................................................................................1

Table 2.1 The current strengths, weaknesses and positioning strategies of competitors.................................................8

Table 4.1 Core Products in The Coffee House..............................................................................................................17

INDEX OF PICTURE
Picture 1.1 Some F&B brands in Vietnam......................................................................................................................2

Picture 1.2 Southeast Asia Revenue – Online Food Delivery.........................................................................................2

Picture 1.3 Channels of engagement and top sources......................................................................................................4

Picture 3.1 The Three - Stage Model of Service Consumption.......................................................................................9

Picture 3.2 Competitors map of The Coffee House.......................................................................................................14

Picture 4.1: Drinks price list..........................................................................................................................................20

Picture 4.2 Price list of some cakes...............................................................................................................................21

Picture 4.3 The Coffee House stores are distributed nationwide...................................................................................22

Picture 4.4 The Coffee House With Baemin.................................................................................................................23

Picture 4.5 The Coffee House website where to order online, blog and share exclusive recipes.................................24

Picture 4.6 The Coffee House app.................................................................................................................................25

Picture 4.7 E-book: The journey to happiness is published by The Coffee House Poster............................................27

Picture 4.8 Phuong Nam – a stand-up comedian Livestream Talkshow.......................................................................28

Picture 4.9 The Campaign “For those who care” in 2020.............................................................................................29

Picture 4.10 Customers review about The Coffee House..............................................................................................31

Picture 4.11 Flowchart customer service processes of The Coffee House....................................................................31

Picture 4.12 Three action of blueprint service customer...............................................................................................32

Picture 4.13 The outside space of The Coffee House....................................................................................................34

Picture 4.14 The inside space of The Coffee House......................................................................................................36

Picture 4.15 The inside space of The Coffee House Signature.....................................................................................37

Picture 4.16 The Coffee House's organization model and personnel............................................................................38

Picture 4.17 Friendly staff.............................................................................................................................................40


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SECTION 1. INTRODUCTION

1.1 SITUATION OF THE SERVICE INDUSTRY IN THE WORLD

Services dominate most economies and are growing rapidly: Services account for more
than 63% of GDP worldwide, almost all economies have a substantial service sector, most new
employment is provided by service. Strongest growth areas for marketing. If you understand,
services offer you a personal competitive advantage.

1.2 SITUATION OF THE SERVICE INDUSTRY IN VIETNAM

It can be said that the role of the service industry is extremely large in Vietnam. The
service sector helps promote and support the development of manufacturing industries, and at
the same time helps to stabilize and solidify the economic structure. Above all, the service
industry brings benefits and strong resilience to the national economy. Services account for
more than 30% in Vietnam.

The service industry develops, leading to the opening of new labor sources and jobs,
helping to expand the labor market quickly. Besides, it also helps to exploit, utilize and enhance
natural resources, tangible and intangible cultural heritages, historical relics, and modern
scientific and technical achievements.

1.3 CATEGORIES OF SERVICES IN VIETNAM

People Possessions

People Processing. Example: Possession-processing. Example:


Tangible
actions

- Vu Tri Barbershop - PV OILS

- International Victoria Healthcare - Bottle shop

Mental stimulus processing.


Information Processing. Example:
Intangible

Example:
Actions

- Finance Company.
- UFM
- ACB.
- VTV, HTV channel.

Table 1.1 4 categories of services in VietNam

1
Picture 1.1 Some F&B brands in Vietnam

1.4 ABOUT THE F&B IN VIET NAM

         The Vietnamese F&B market in 2020 and in the first quarter of 2021 is facing great
fluctuations, opportunities and challenges. Looking at the food industry, in 2020, the spending
level of Vietnamese people on food and non-alcoholic beverages is 31.5 billion USD, up 12.6%
over the previous year. Due to the impact of the COVID-19 epidemic, this number is expected
to increase by 6.6% in 2021 to 33.7 billion USD, but then will gradually recover and keep the
annual growth rate above 10%, reaching more than 47 billion USD by 2025 (according to the
forecast of Fitch Solution). Those numbers show that the food and beverage market in general
and the restaurant / cafe business in particular still have a lot of potential for strong growth.

Picture 1.2 Southeast Asia Revenue – Online Food Delivery

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According to the service model, there are two groups: dine-in restaurants and take-away
restaurants. The on-site restaurant market segment is divided into two types: full service and
self-service. The first type is typical restaurants, where customers are served at the table (from
luxury to affordable such as Hutong, 4P's pizza, rice shops, pho...), while the second type
suggests guests self-service , mainly bakeries, coffee shops or fast food restaurants, including
KFC, Lotteria, Starbucks, Highland, The Coffee House (except The Coffee House Signature),
Tous Les Jours...

The take-away restaurant market segment is mainly restaurants, small-scale cafes,


kiosks or vending carts, serving online delivery and take-out customers like Viva To Go. , Ma
Hai Bread, Guta Cafe kiosks at the foot of office buildings…

In addition, one of the trends of model deployment in the Restaurant / cafe market in recent
years is that restaurant chains combine on-site service locations with kiosks, vending carts
serving take-out only. Go to increase coverage, optimize costs and expand customer base, for
example, Viva Coffee has Viva Reserve and Viva Star Coffee for dine-in and take-out, while
Viva To Go only serves takeout, or Hanoi Ng There are 2 on-site service shops and vending
carts at various locations…

According to the development model, there are two groups: single restaurants and chain
restaurants, in which chain restaurants are further subdivided into self-owned chains and
franchised chains. While the single restaurant in the Restaurant / cafe market is mostly owned
and operated by business households, maintained at the scale of a shop, it may or may not have
a brand name like pho, sticky rice, and single cafes. are often found on the streets, restaurant
chains are often operated in the form of businesses, with a clear financial system - business
strategy - operation process - human resources, towards the development of many restaurants
with the same brand.

1.5 ABOUT THE COFFEE SHOP  IN VIET NAM

The Coffee House, Phuc Long, and Highlands Coffee are the top 3 brands covered on
social networks when holding more than 75% of the market share in discussing coffee shop
chains. Following are many domestic brands such as Ong Bau Coffee, Cong coffee, Trung
Nguyen, Milano, Passio, GUTA... showing a strong wave of pure Vietnamese brands in the
current market. The most popular international brand on social media is Starbucks ranked 4th
with 14.4% market share.

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The share of discussion on social media contributes to reflecting the "active" level and
coverage of a brand on social media platforms, an environment that mainly focuses on the
young customer segment of coffee shop chain brands. . The report also reveals the reasons for
the success of leading coffee shop chains such as The Coffee House, Highlands, Phuc Long,
Starbucks... in attracting and maintaining a large number of interested users to discuss on social
networks and activities. their exciting content creation. Thereby contributing to visualizing the
competitive landscape of brands in this industry in the social media environment.

Picture 1.3 Channels of engagement and top sources

In addition, based on the common characteristics shown on social media of coffee shop
chains in terms of main discussion platforms, buzz weight from the brand's fanpage, the
research team divided the brands into 2 player segments:

+ Brand group is not strong enough: Communication focuses on fanpage to increase brand
awareness, weight of buzz from fanpage accounts for more than 50%

+ Average brand group - pretty to good: The discussion weight on the fanpage is less than 30%,
in addition, there are industry-specific channels such as food review, especially for brands that
often carry out marketing campaigns according to Occasions always have the support from
KOLs and many creative tactics to interact with users, helping to spread new products / new
flavors.

From the in-depth analysis of the two player segment groups above, the report
summarizes the success formula on social media for coffee shop chain brands in general.
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1.6 ABOUT THE COFFEE HOUSE

The Coffee House is a chain of coffee shops in Vietnam. Despite being born late, it is
growing faster than many competitors in the coffee market thanks to the company's
understanding of the market and good management. After the Passio and Urban Station Coffee
brands, this is a successful example of a Vietnamese start-up in the competitive coffee chain
market against the encroachment of foreign investors. The success of The Coffee House today
is due to the business clearly defining a business model that focuses on high detail and finding
the gap in the red ocean.

“Let’s go for Coffee" - A simple invitation for us to sit together and share our own story.

At The Coffee House, we always cherish stories and uphold the value of Human
Connection. The Coffee House wants to become a "Coffee House", where people come
together and find joy and intimate sharing with fragrant and quality coffee cups.

4 values that make The Coffee House are: Sincerity, Care, Creative and Brave.

Impressions on the journey:

- 2014: Launching the first store at 86-88 Cao Thang. After 3 years, The Coffee House has
more than 60 stores in Ho Chi Minh City.

- 2015: The Coffee House is available in Hanoi. Up to now, the house has 14 stores in the
central areas of Hanoi capital.

- 2017: The Coffee House is available in DaNang, BienHoa, VungTau.

- 2018: The Special Year.

+ OFFICIAL OPERATION OF THE FARM

After Cau Dat Farm's Coffee division is merged into The Coffee House, the 1,650m high
mountain range will be the place where we sow our dream of bringing Vietnamese coffee beans
to the world.

+ LAUNCHING FLAGSHIP THE COFFEE HOUSE SIGNATURE

Where The Coffee House shares the full story of coffee passion with like-minded people.

+ OFFICIALLY HILLING 100 STORE


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After 4 years of launching and operating in Vietnam, The Coffee House officially surpassed the
threshold of 100 stores, with the desire "Everybody has 1 The Coffee House near home".

1.7 THE COFFEE HOUSE ESSAY STRUCTURE

Section 1: Introduction

Section 2: Market & Competitors Analysis

Section 3: Target customers analysis & Positioning Strategy

Section 4: Analyzing the Marketing Mix (7Ps) Strategies

• Services Product strategy

• Pricing strategy

• Distribution strategy

• Promotion strategy

• Service processes management

• Physical evidences management

• People management

Section 5: Evaluation & recommendation

Conclusion 

Reference 

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SECTION 2. MARKET & COMPETITORS ANALYSIS

2.1 MARKET ANALYSIS

The current business situation of The Coffee House is quite slow because the 4th
outbreak is still happening quite complicated and serious.  More than two-thirds of The Coffee
House's stores were forced to close under a government directive, meaning a decrease in store
sales.  In addition, serving customers for on-site use is not maximum because the number of
seats and tables and chairs must be kept to the maximum limit to prevent epidemics.

However, in the context of the complicated situation of the Covid-19 epidemic, the
consumption trends of customers change rapidly, The Coffee House is making more open
moves with the third party, Loship and Beamin.  The Coffee House in the latest exchange said
that it will continue to expand cooperation with the parties, in order to increase its coverage as
well as anticipate the online consumption habits of customers.

2.2 INTERNAL CORPORATE ANALYZE

Chairman Dinh Anh Huan of The Coffee House shared that from the second wave until
now, The Coffee House is no longer as passive as before.  In particular, The Coffee House
always has short-term plans to respond to Covid and is ready to adjust monthly, but still sticks
to its 5-year long-term plans to continue to bring a coffee journey across the world.  for
customers anywhere, at the store, at home or online.

2.3 COMPETITOR ANALYSIS

- Direct competitors: The coffee house's direct competitors come from the same brands
such as Urban Station, Starbuck, Passio, Highland Coffee, Phuc Long.. However, in terms of
space standards, The Coffee House is superior to the competition because the space to enjoy
and work is very airy and wide, close design and create a sense of harmony between customers
and customers, customers with employees and affordable prices accompanied by diverse
products,..

- Indirect competitors: The Coffee House also has competitors from alternative products
such as famous milk tea brands such as Cong, KOI, The Alley, TocoToco,.. Besides, in the
market, there are a variety of beverage products rich in genres, models, taste can be mentioned
as C2, green tea O degree, Nescafe, Vinacafe, G7. are strongly competitive products in the
youth segment market. But with the characteristics of The Coffee House with the direction of
coffee to enjoy, it will be less competitive with competitors in this market.
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Highland Phuc Long Starbuck

Price 55.000 – 100.000VND 35.000 – 65.000VND 70.000 – 150.000VND

Strengths - Using clean, pure - Quality products, bold tea - Strong brand image
Vietnamese ingredients, flavor, suitable for The
- Strong financial
combined with a unique Vietnamese market, which
performance.
recipe, rich in Vietnamese has a tradition of enjoying
- Expanded
coffee. tea since ancient times.
international supply
- Highlands coffee shops - Variety of products
chain
are located in beautiful
- Location in stores across
locations, such as
the country
shopping malls,
 
buildings, offices

Weaknesses Beverage products are not - Parking lots are limited - High price compared
diverse to Vietnamese income
- Uneven service quality
- Some unique
products that do not
cons match market
culture standards

Current - Connecting traditional - Create a Vietnamese - World-class, high-


Positioning and modern values, brand with the class and end coffee brand
spreading the spirit of quality shown in each
Vietnamese pride in product
Vietnamese goods.

Table 2.1 analysis of the current strengths, weaknesses and positioning strategies of competitors

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SECTION 3.

TARGET CUSTOMERS ANALYSIS & POSITIONING STRATEGY

3.1 TARGET CUSTOMERS

The Coffee House's target customers are middle-income customers, students, and
working people.  This customer is not only important for quality, delicious drinks and
reasonable prices.  And they not only come to the cafe to drink coffee, but also need a cool
atmosphere, a professional quiet space, provided with wifi so that they can socialize, focus on
studying or working for a few hours a day.  effectively.

3.2 SOME OF THE TARGET CUSTOMER’S RELEVANT BEHAVIOR

Picture 3.1 The Three - Stage Model of Service Consumption

3.2.1 Pre-purchase Stage

Need arousal

Customers will feel "craving" for a drink to quench their thirst after lunch, after school,
or simply want to drink the familiar taste of water. Or customers are stimulated to eat because
they accidentally see advertising programs, discounts of drink shops on the street or on the

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Beamin, Grab Food, Delivery app. Next, customers will search for information about drinks to
satisfy their needs.

Information search

* Customers will search for information and choose drink shops to satisfy their needs.

* At that time, customers will see "Evoked set" of shops that have been experienced in the past
or suggested on Facebook, Instagram, ... about shops such as The Coffee House, Cheese
Coffee, The Alley, ... with a variety of drinks. about coffee, tea, or milk tea to satisfy the need
for refreshment but also to chat, exchange, or study and work.

* In order to make a decision to choose drinks for themselves, customers will evaluate
alternative bars

Evaluation of alternatives

* Review supplier information: Customers will evaluate the information provided by


restaurants such as on advertisements, websites, banners, or on food delivery service apps.

* Review information from third parties: Experiences, reviews, reviews, comments on the
restaurant's website, or drink review groups on Facebook, Instagram will have a great impact
on customers' decisions because they are genuine reviews and real experiences of other
customers.

* Perceived risk:

Customers will realize the risks when using the service:

- Financial: The financial risk that customers are concerned about can be: Will it cost me more
money to sit for a few hours at the bar? Do I have to pay extra for parking? Will my identity be
compromised when paying for drinks with an ATM card?

- Temporal:  Are customers worried about having to wait in line for a table when they arrive at
the restaurant? Or do customers need to spend a lot of time waiting for drinks?

- Physical:  Will drinking the bar's soft drink make my stomach ache? Or is the air in the shop
disinfected clean, not harmful to health?

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- Psychological:Is it possible that my motorbike is properly guarded while I drink in the bar? -
Sensory: Will I be disturbed by the noise in the shop while studying and working? Is the
temperature in the bar too low for me to stand?

So to handle those risks, customers should:

Looking for reliable information about reputable pubs, quality drinks and good service here,
suitable for students, students, working people with places to study and work, exchange such
as  The Alley, The Coffee House, We's Corner, Cheese Coffee… Either go to the shops you
have experienced in the past or search for quality reviews from the internet.

Purchase Decision

After choosing a bar to drink between the list of substitute products and handling the
risks that customers anticipate. Next, the customer chooses a restaurant and uses the service.

3.2.2 Service Encounter Stage 

A service encounter is a period of time during which a customer interacts directly with a
service provider. 

 • Service Encounter Are “Moments of Truth” 

Rochard Normann borrowed the “moment of truth” metaphor from bullfighting to show
the importance of contact points with customers. When customers have chosen the shop and
come to The Coffee House, it is the place to enjoy drinking and using the service of the shop.
At that time, they themselves can directly feel about the quality of drinks, the style and
atmosphere of the bar, the music played in the bar and how the staff serves and communicates
with customers. That helps customers eliminate the risks that they previously suspected and
helps customers experience the service at The Coffee House in the best way.

* Service Encounter Range from High Contact to Low Contact

When customers choose The Coffee House, they will use "high-contact service". Using
a high contact service entails interaction throughout service delivery between customers and the
organization. When customers come to The Coffee House, customers will order directly with
the staff and choose their seats. The staff will then bring the drinks directly to the customer. In
the process of using the service at The Coffee House, if there is any problem with the customer
at the shop, it will be handled directly by the staff at that time.

3.3.3 Post Encounter Stage


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* Satisfaction: After meeting the service at The Coffee House and comparing it with your
expectations, If The Coffee House serves customers with a positive, polite, attentive attitude to
customers. Solve customer problems enthusiastically and quickly. Besides, the space is suitable
for the purpose of customers to study and work, exchange and exchange. If the actual service
experience is at an acceptable level or higher than the customer's expectations, the customer
will be very satisfied and may become a loyal customer later on. If the service at The Coffee
House is very bad, the drinks are not quality compared to the price, the staff is not professional,
the customers will have a bad impression and choose another shop in the future.

* Service Expectations

Before coming to The Coffee House to use the service, customers have set expectations
about the service of the restaurant. It is possible to buy good, quality drinks at a reasonable
price. Sitting in a cool, comfortable luxurious space to be able to fulfill the customer's own
purpose. But if in reality, the shop could not serve the maximum service expectations of
customers, for example, The Coffee House that day was too crowded, the space in the noisy bar
could not focus on working to the maximum, but compensated for it. in there delicious drinking
water and enthusiastic service, staff to help customers. That helps not under zone tolerant of
customers.

* Customer Delight 

Customers will be delighted if The Coffee House's service exceeds their expectations.
Everything they meet at the shop is great such as The Coffee House playing the right songs of
customers or the quiet and cool atmosphere, comfortable working, professionally trained staff.
But if The Coffee House's service goes down, customers will suffer and it will be difficult to
make them satisfied again. Therefore, it is best to consistently raise your service level

3.4 POSITIONING

The Coffee House chooses Service Focused to focus on serving beverages, mainly
coffee and tea, and serving a suitable space for work and study.

Positioning of The Coffee House for:

+ Customers: The Coffee House is home, a place to relax, work and chat.

+ Products: The Coffee House produces and distributes quality coffee products and reliable
services at reasonable prices to consumers

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+ Market: The Coffee House wishes to bring Vietnamese coffee products not only to compete
in the Asian market but also the world market, in the immediate future, the domestic and
Chinese markets.

3.5 IDENTIFYING AND SELECTING TARGET SEGMENTS

When the coffee market was gradually saturated, The Coffee House launched later than
other competitors in F&B. To be able to make a difference in the hearts of consumers, The
Coffee House focuses on services to reach customers and has existed until now. In the age of
technology, consumers not only go to coffee shops to drink, but they spend a moderate amount
of money to drink in a luxurious, professional space that is ideal for working. Fully serviced
wifi to use smartphone or laptop to work, listen to relaxing music at the bar, or a comfortable
place to socialize with friends.

The Coffee House's customers are office workers and students. Because they are all
knowledgeable people, they are very strict in the source of ingredients for drinks and product
quality. To achieve that, The Coffee House is committed to quality and enthusiasm in each
product. The input ingredients are carefully selected and the bartenders are highly trained and
qualified.

3.6 POSITIONING DISTINGUISHES A BRAND FROM ITS COMPETITORS

Before launching the market, The Coffee House researched the market and discovered
that the mid-range coffee shop segment with the price of 60,000-80,000 VND is quite
surprising with the spending level of Vietnamese users. Stores with high prices can only do
business with the trend, but it is difficult to become a long-term focus in the hearts of
consumers, for example, The Alley black sugar pearl milk tea with the price of 65,000 - 75,000
Vnd for small and large sizes. The Alley rose to fame thanks to that product, but it was only hot
for a while. So how do customers have both: optimal coffee enjoyment space and reasonable
prices? That's why The Coffee House was born.

Determining the direction of the restaurant is to develop services and customer


experience is the guideline to operate the system. The Coffee House focuses on training
friendly, enthusiastic staff who are always ready to chat and share with customers. Besides, it is
indispensable for baristas who are passionate and devoted to creating creative drinks. The drink
that has made an impression in the hearts of customers who have experienced it is the Orange
Lemongrass Peach Tea, which is focused on every detail from the decoration to the banner

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hanging in front of the shop that attracts the first sight of customers. row. The taste is
enchanting, full of differences compared to other shops.

Direct competitors to The Coffee House come from brands in the same industry such as
Urban Station, Starbuck, Passio, Highland Coffee, Phuc Long, etc. However, in terms of space
standards, The Coffee House is superior to its competitors by the space to enjoy and work is
very comfortable, airy and spacious, designed to be close and create a comfortable feeling of
harmony between customers and employees, the price must be taken care of with a variety of
products...

Every employee in the Coffee House knows what their role is to be able to provide the
best service to customers. Helping customers feel when coming to The Coffee House is their
"third home", coming to experience, exchange, relieve stress and work

Picture 3.2 Competitors map of The Coffee House

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SECTION 4. MARKETING MIX (7PS) STRATEGY 

4.1 SERVICE PRODUCT STRATEGY

1. Core Product

Coffee:
+ Americano
+ White Coffee
+ Black Coffee
+ Milk Coffee
+ Cappuccino
+ Caramel Macchiato
+ Cold Brew Phuc Bon Tu
+ Cold Brew Fresh Milk
+ Cold Brew
+ Express
+ Milk
+ Mocha.

Package, Instant Coffee:


+ Soluble Iced Milk Coffee
+ Rich Finish Coffee
+ Peak Flavor Coffee
+ Phin Coffee
+ Arabica Coffee

Fruit Tea – Milk Tea:


+ Chia Seeds Long Label Tea
+ Lotus Seed Tea
+ Macchiato Matcha Tea
+ Lemongrass Peach Tea

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+ Pearl Milk Tea
+ Phuc Bon Tu Tea
+ Macchiato Black Tea
+ Pink Tea Latte Macchiato
+ Pearl Milk Tea Pink.

Ice Grinder Matcha


Chocolate:
+ Ground Lemongrass
+ Iced Coffee
+ Ground Blueberrry peach
+ Phuc Bon Cam Ice Grinder
+ Blueberry Smoothie
+ Ground Ice Cookies
+ Matcha Ice Grinder
+ Matcha Latte
+ Chocolate
+ Yogurt Melons

Cake & Snack:


+ Quail Egg Dumplings
+ Cheese Scrub Bread
+ Bread Sticks
+ Salted Egg Orchid
+ Freshly Dried Orange
+ Cotton Elder Rice
+ Croissant Salted Egg
+ Garlic Chili Peanuts
+ Golden Thing Honey
+ Chicken Shredded Lemon
Leaves
+ Smoked Dried Pork
+ Dried Jackfruit
+ Chocolate Ice Cream Mochi
+ Mochi Coconut Ice Cream
+ Matcha Cream Mochi
+ Mochi Cream Phuc Bon Tu
+ Mochi Ice Cream Mango
+ Mochi Kim Blueberry

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+ Chocolate Bear Mousse
+ Mousse Matcha
+ Mousse Passion Cheese
+ Mousse red Velvet
+ Mousse Tiramisu
+ Ginger Chocolate

Merchandis:
+ Boat Stainless Stell Heat Retainer
+ 500 ml Stainless Steel Heat
Retainer
+ Pineapple Stainless Steel Heat
Retainer
+ Black And White Stainless Steel
Heat Retainer 500ml
+ Orange Stainless Steel Heat
Retainer 473ml
+ Stainless Steel Straw Set
+ Porcelain Cup The Coffee House
Danang
+ Porcelain Cup The Coffee House
Ripple
+ Porcelain Cup The Coffee House
Hanoi
+ Porcelain Cup The Coffee House
Hortizontal Stripe
+ Porcelain Cup The Coffee House
HCM City
+ Ly from Fram To Cup 300ml
+ Cup Form Farm To Cup 400ml
+ Stainless Steel Glass Black Straws
+ Stainless Steel Glass Green
Straws
+ Stainless Steel Glass Blue Straws
+ Plastic Glass 2 Layers Boat,
Plastic Glass 2 Layers Pineapple
+ Canvas Bags DaNang
+ Hanoi Canvas Bag
+ SaiGon Canvas Bag
+ Sung Tuc House Canvas Bag

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Table 4.1 Core Products in The Coffee House

New Product: Cans of iced milk coffee.

2. Supplementary Services (The Flower of Service)

+ Facilitating Supplementary Services:

- Information: The Coffee House is public information on site, and the information
about service hours, prices, warnings, conditions of sale, notification of changes,
documentation.

- Order Taking: The Coffee House has an app for loyal customers, and we can have
memberships and subscription services. In Order Entry, the Coffee House has 2 options. Option
1 is on-site order fulfillment to the staff. Option 2 is telephone, web order or app such as Grab,
Baemin. The Reservations and Check-in isn’t in a normal store. But in The Coffee House
Signature, we can book rooms for the meeting, professional appointments.

- Billing: We always have a bill for individual transactions. And we need this bill to
receive the product. If we order by app, we can help the e-invoice.

- Payment: The coffee house has payment services to support customers such as card
payment, momo, .. if customers do not use cash. Direct to Staff for Cash handling and change
giving + Check Handling, Credit/ Charge/Debit Card Handling + Coupon redemption.
Moreover, the customer can sign-in this account in a mobile App to payment by Automated
Systems.

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+ Enhancing Supplementary Services:

- Consultation:The staff in The Coffee House always do personal counseling because


they are trained very well.

- Hospitality: When you start to order, the staff is always greeting you. In food and
beverages quality is good. Toilets and washrooms are clean. Waiting facilities are very close,
make you feel at home, very comfortable.

- Safekeeping: The security personnel in The Coffee House are very friendly, making
you feel good when you make contact with the first person. Parking for vehicles and valet
parking is very good too.

- Exceptions: Customer reviews or feedback through the app, The Coffee House calls
directly to apologize to the customer.

3. Branding Service Product & Experience

The Coffee House is built to Single brand to cover all products and services.

4. A Hierarchy Of New Service Categories

a) Style changes: The Coffee House's removal process makes the customer self service.
And comeback the old process is the staff will bring the product to the customer. Bringing
water to the table for customers makes it more difficult to train staff and requires more staff to
serve, but this makes customers feel more comfortable and saves more time than self service.

b) Service improvements: Place the straw in the plastic case. Still serving straws for
customers. However, if the customer does not use it, it can still be kept for the next time. This
will satisfy customers who need to use straws. And at the same time make customers who want
to protect the environment satisfied.

c) Supplementary service innovations: The staff will have the additional task of
suggesting customers about the items that are sold regularly as well as instructing how to pay
and receive products. These are issues that are loved by customers. In addition, place filtered
water in a convenient location so that customers can conveniently get filtered water by self-
service.

d) Process-line extensions: Regarding packaging, The Coffee House has changed its
packaging many times for the convenience of customers. The Coffee House is a regular paper
cup with a plastic lid, shared for all items. Next, is a cup with a heat guide, combined with a
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special plastic lid for hot products. Currently, the most popular is a large-capacity plastic cup
with a heart lid, suitable for customers using the Macchiato line.

e) Product-line extensions: In addition to the popular coffee product, the brand also
develops a variety of different products, such as milk tea, ice-blended... The Coffee House has
diversified Macchiato versions for users to have more choices, especially young people. In
addition, there are accompanying fast food products such as bread. As well as souvenirs for
tourists. This has brought many alternatives for customers, when coming to The Coffee House,
greatly contributing to customer retention.

f) Major process innovations: Due to Covid-19, The Coffee House has added the
delivery service by the employees themselves, not through third-party channels as before. This
helps the brand to be more marked. In addition, the content of the Coffee House always takes
the customer's story as the center, instead of focusing on the product, not all of it revolves
around: orange lemongrass peach tea, milk coffee, ... but besides Those are the first thoughts
recorded. “Home” is not a place to come and go, “Home” is a place where you are heard and
shared. "Home" is also a place to capture the emotions of you and your loved ones. Therefore,
the images and posts of the sharing and confiding columns, "Humans of The Coffee House" are
very interested in the investment brand. All activities in The Coffee House's Marketing
communication strategy are closely aligned with the "Home" positioning and insight from its
target audience.

g) Major Service Innovations: I think the new product - Cans of iced milk coffee will
be changed a little to The Coffee House. Someone thinks the product of The Coffee House isn’t
special, but the new product can help people to reserve the drink for more time. In addition,
The Coffee House broke the way with "Fried fish skin" and "Dried chicken", these snacks were
a breakthrough and very attracted young people to The Coffee House.

4.2 PRICING STRATEGY

Like product value, the value inherent in payments is central to marketing's role in
facilitating a value exchange between the firm and its customers. For suppliers, pricing strategy
is the financial mechanism through which income is generated to offset the costs of providing
service and to create a surplus for profits. Pricing strategy often is highly dynamic, with price
levels adjusted over time according to such factors as type of customer, time and place of
delivery, level of demand, and available capacity.

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Customers, by contrast, see price as a key part of the costs they must incur to obtain desired
benefits. To calculate whether a particular service is "worth it," they may go beyond just money
and assess the outlays of their time and effort. Service marketers, therefore, must not only set
prices that target customers are willing and able to pay, but also understand-and seek to
minimize, where possible other burdensome outlays that customers incur in using the service.
These outlays may include additional monetary costs (such as travel expenses to a service
location), time expenditures, unwanted mental and physical effort, and exposure to negative
sensory experiences.

4.2.1 Price list of some products at The Coffee House:

            

Picture 4.1 Drinks price list

                         

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                                                            Picture 4.2 Price list of some cakes

4.2.2 The Coffee House's pricing strategy

At The Coffee House, when entering the Vietnamese coffee industry, the market
penetration pricing strategy was applied. At first when entering the market, The Coffee House
did not matter at first, but this helped to attract many potential customers. After fully
penetrating the market, The Coffee House gradually won the hearts of customers and profits
began to increase.

Coffee House's pricing strategy is given when putting yourself in the role of the
customer. Businesses have raised many questions: How much should customers pay to
experience at a cafe like this? Is the amount of money the customer spends reasonable? Is the
cost commensurate with what customers enjoy in terms of beverage quality and service
experience? Can they afford to go to that cafe often ?

Today, the Vietnamese coffee market is divided into many clear segments and each
segment has large enterprises participating. The segment for office workers includes: Highlands
Coffee, Trung Nguyen, Starbucks Coffee, The Coffee Bean,... The youth segment includes:
Urban Station and Passio,... Although the above coffee brands are almost the same number of
stores, they have different prices. The average price of Urban Station, Passio Coffee ranges
from 15,000 to 40,000 VND. The price of HighLands Coffee, Starbucks Coffee, ... is from
40,000 to more than 90,000 VND. The Coffee House is aimed at customers who are working,
traveling, and students who like to experience luxury coffee shops with localized prices ranging
from 30,000 to 60,000 VND, which is reasonable enough to attract customers. keep customers
coming back often.
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The Coffee House uses a very precise entry Launching strategy. This can be seen as a
"right person at the right time" strategy. Customers do not need to spend expensive prices to sit
and drink coffee at Starbucks, just go to The Coffee House with an extremely affordable price
for all customers from 30,000 to 60,000 VND to still experience the coffee shop. Western,
modern way to meet young people's experience. It is for this reason that the market penetration
strategy has been carefully researched by The Coffee House.

The Coffee House uses a completely right pricing strategy. Customers can experience a
spacious, comfortable and sophisticated space - not inferior to foreign "big men" like Starbucks
or The Coffee Bean with only the price of 30,000 - 60,000 VND. This is one reason why many
young people become loyal "fans" of this chain of stores.

4.3 DISTRIBUTION STRATEGY

4.3.1 Distribution in a service’s context

The Coffee House uses a direct sales distribution channel.  Customers come directly to
the shop to use products and services.  In addition to providing core products of coffee and tea,
The Coffee House's services focus on satisfying customers in the best way.  Staff are ready to
provide payment and billing information, are always friendly and keep customers safe when
coming to The Coffee House.

4.3.2 Place and Time Decision

A mark of love deeply in the minds of customers, and a curious feature is the
continuous concentration of The Coffee House, appearing densely in big cities. Up to now,
there have been 183 stores.  spread across the country and are most concentrated in Ho Chi
Minh City and Hanoi.  Not only impressive with its dense presence in major cities, the brand
also earns points thanks to choosing a location that is very suitable for target customers.  The
stores of The Coffee House are always located in a location that is easy to find, easy to park,
front of the center of the districts and customers can enjoy the eye-catching outside view.

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Picture 4.3 The Coffee House stores are distributed nationwide

Besides, The Coffee House serves customers from 7.00 - 21.00 every day, even on New
Year's Day and festivals, they focus on serving customers.  In addition, The Coffee House also
operates its own professional delivery team from the Hotline operator to the inner city delivery
staff via thecoffeehouse.com website and hotline.

Besides, currently due to the fourth wave of Covid 19 epidemic, The Coffee House is
cooperating with intermediaries, Loship and Baemin, to expand coverage.  This policy is very
well implemented, adapting very quickly to the current situation of the market and the tendency
of customers to gradually switch to buying more online.

Picture 4.4 The Coffee House With Baemin

4.3.3 Delivering Service in Cyberspace

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The Coffee House also owns a website thecoffeehouse.com full of information for
customers.  The website is built extremely well with full menus, product images, prices and
customers can order through that website.  Besides, The Coffee House's website also has a blog
in which sharing about the journey of coffee beans from farm to cup, ways to prepare coffee
filter, latte, capuchino, cold brew... of the coffee house.  get high.

Picture 4.5 The Coffee House website where to order online, blog and share exclusive recipes

To be able to serve customers thoughtfully and leave an impression in the hearts of


customers.  The Coffee House always builds 4 values that are what makes its name: Sincerity
with the "Delivering Happiness" campaign, Caring for customers with the philosophy of
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"Starting from the customer and doing everything from the customer's mind"  “Creative,
refreshing from drinks, bar space and improving customer service and finally bravely facing
our own shortcomings and deviations and boldly correcting mistakes.  to make The Coffee
House more and more perfect. 

For loyal customers who are used to The Coffee House's online ordering.  The business
has created for customers a separate The Coffee House app with all necessary functions such
as: placing orders, tracking orders, looking up information and store addresses.

  The special thing that The Coffee House's app is different from delivery services is
quick order confirmation if the customer's account is over 1,000,000 VND and no need to call
to confirm the order to ensure delivery within a short period of time within 30' and deliver
products to customers as committed. 

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Picture 4.6 The Coffee House app

4.4 PROMOTION STRATEGY

To be able to easily plan effective communication, The Coffee House answered 5 questions
by the “5Ws” model as follows:

 Who is our target audience? 

Prospect: The Coffee House's target customers are young people, students and working people.
They go to coffee not only to talk, socialize, but also to find a quiet space. With the
introduction of many coffee chains in Ho Chi Minh City. Many brands meet the needs of young
people. Therefore, The Coffee House needs to find ways to communicate with them by
traditional communication mix, comprising such elements as media advertising, public
relations, and use of purchased lists for direct mail or telemarketing

Users: In contrast to prospects, these are customers who are close to The Coffee House, they
own membership cards, points cards and regularly come to The Coffee House for a week. The
Coffee House has a membership relationship with its customers and has a database containing
contact and profiling information More cost-effective channels may be available to reach
existing users. 

Employees: Employees serve as a secondary audience for communication campaigns through


public media. With promotional messages, many promises of The Coffee House can form
employee behavior. Communications directed specifically at staff typically are part of an
internal marketing campaign, using company-specific channels, and so are not accessible to
customers. According to the research, The Coffee House uses tools such as Haraworks powered
by Haravan – help operate business growth and marketing effectively. The software will inform
and communicate with the first employee before coming to the customer. 

Some other questions such as: What do we need to communicate and achieve? How should we
communicate? Where should we communicate this? And when do the communications need to
take place?... will be answered in the section The marketing communication mix

4.4.1 Messages originating within the organization

Advertising: In the promotion strategy, advertising is considered as one of the measures


to maintain a competitive advantage in the market. Understanding the importance of
advertising, The Coffee House always focuses, innovates, and innovates constantly to bring the
best quality advertising products to customers. Since its launch, The Coffee House has
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appeared in newspapers and magazines about an extremely unique business model in Vietnam.
The newspapers have emphasized that The Coffee House will provide a cozy working space
like your home. The Coffee House chooses to advertise mainly youth magazines such as Hoa
Hoc Tro Magazine, Muc Tim magazine,... Although born after some competitors such as
Highland, Phuc Long Coffee, and Tea, thanks to the wide advertising and highlighting the
difference of the brand, The Coffee House quickly became one of the fastest-growing coffee
chains on the market

Internet: With the continuous development of technology, advertising on traditional


media is less effective, especially since the target customers of The Coffee House are young
people. Therefore, the brand decided to step up its advertising on the Internet.

  Website: The Coffee House's website is beautifully designed and attractive with the
main backdrop of white and black. The Coffee House uses its own website with many
tasks such as: introducing the brand, introducing products, responsibility to the
community, information about recruitment, news, coffee stories, information about
incentives for members. Websites can facilitate two-way communications with
customers through email, hotline, chat room. The Coffee House's website has ensured
such criteria as:

 High in quality content: The content of the coffee story, about community
responsibility is really close, creating unique value for the brand. The website brings
relevant content together, useful, and meets all the information customers need to search
for brands and products. In addition, in the E-book section, The Coffee House also
brings a book about the journey of happiness of different people, different occupations,
and different comments about happiness. There are also many other E-books posted on
the Website. This is truly a unique, creative, and meaningful feature of the brand. 

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Picture 4.7 E-book: The journey to happiness is published by The Coffee House Poster

 Easy to use: The coffee house's website structure is not complicated, the information
items are clearly divided at the top of the page. The products are divided by section: tea,
coffee, milk tea, snacks with real, vivid images and come with clear prices for
customers to choose.

 Quick to download: The Coffee House's website downloads very quickly, without
slow conditions that make customers feel comfortable, it does not take too long to wait.

 In addition, The Coffee House regularly updates new information and announcements
on the Website to help customers not miss any information. 

 Online Advertising: The Coffee House advertises a variety of media such as Facebook,
Instagram, Youtube.

 Facebook: The coffee house's official Facebook page currently has over 596,000 likes.
On the page posting information, photos, videos about products, information about
promotional activities, events, activities of The Coffee House. Posts with engaging
content, lovely images, closeness, special occasion wishes posted during the golden
hours have attracted a large amount of interaction with many shares. In particular, The
Coffee House also organizes livestreams inviting KOLs to increase interaction.

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Picture 4.8 Phuong Nam – a stand-up comedian Livestream Talkshow

 Youtube: The coffee house's official Youtube channel with more than 4,600
subscribers. On the channel, tvc ads, videos meaning messages, videos about events that
The Coffee House participates in. The Coffee House made an unforgettable impression
with the short film  "Ex-lover Invited to Marry " by hitting the youth insight during the
Christmas season 2017. In early 2018,  "The Crop of Dream '' continued to become a
great inspiration for the young community dreaming of starting a business with
beautiful footage of the burning passions of the people who worked together to make
The Coffee House. Tet 2019, The Coffee House continues to implement the big
message "Let’s go for Coffee '' through the story of a surprise encounter between a
young girl and her angsty father. The Coffee House does not hesitate to express its bold
vision when choosing a story that is not too close to the majority to lead viewers to a
very familiar message - "Tet is the best time for all of us to open our hearts no matter
how apart, sit together and receive sincere love". Most recently in 2020, with the
elaborately invested short film 'Mother', this film has received a series of domestic and
international awards.

 Banner Advertising: The Coffee House has paid for ads at sites such as Facebook,
Instagram. When you surf new feeds or watch friends' stories, ads appear interspersed.

 Public Relations (PR): From the beginning, The Coffee House aims to be people-
centered for every decision. Moreover, The Coffee House wishes to accompany
everyone to conquer their dreams and happiness. Therefore, the brand has sponsored
many activities to help people, especially during the Covid-19 pandemic. It can help 
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The Coffee House build reputation and credibility; form strong relationships with its
employees, customers, and the community; and secure an image conducive to business
success. Some outstanding programs such as The Coffee House x Library project:
Children's book library, The Coffee House Sticker project: Greening Cau Dat, The
Coffee House Vulcan project: nurturing the dream of people with disabilities, a
campaign to reduce plastic straws to protect the environment.

Picture 4.9 The Campaign “For those who care” in 2020

Especially in 2020, with the Campaign “For those who care”, The Coffee House brings
thousands of cups of coffee to people who are still quietly serving the community such
as doctors, soldiers, charities ... are caring for COVID patients in concentrated isolation
areas – a beautiful gesture that highlights the spirit of Vietnamese compassion. 

 Sale Promotion: The Coffee House usually offers promotions on special occasions to
stimulate the needs of customers. The Coffee House has offered many different forms
of promotion with a lot of weekly rates such as product discounts, buy 1 get 1 free, get
vouchers, free delivery ... In addition, The Coffee House regularly organizes Minigames
on Fanpage to attract attention, increase interaction as well as maintain relationships
with customers. 

 Gratitude to customers: Bean Accumulation: This is a brand new unit to score at The
Coffee House reward 3.0. When buying products at The Coffee House (10,000VND = 6
beans), the accumulated beans will be used to promote members and receive countless
incentives and gifts from The Coffee House as well as other partners.

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 Service outlets: In the space, there are always banners, posters, signage, brochures,
video screens, and audio about promotions, new products, and new information to
convey to customers. 

4.4.2 Messages originating from outside the organization

 Word of mouth (WOM): The most important marketing strategy followed by the
company is to get word of mouth publicity from its customers as the brand The Coffee
House not just provides coffee but also the experience. Recommendations from other
customers are generally viewed as more credible than firm-initiated promotional
activities and can have a powerful influence on people’s decisions to use (or avoid
using) a service. Therefore, The Coffee House always encourages (even paying) young
people who are influential to write reviews about the brand's products and services.
These articles are often posted to large groups on Facebook such as "Thanh Riviu",
"Café SaiGon"...These articles comment very honestly on the product, including
criticism so it is very honest and receives great attention. In addition, some young
people voluntarily review The Coffee House is also how the company is communicated
using Word of mouth. In addition, The Coffee House also encourages young people to
introduce the service of providing free products, giving vouchers ... A good brand of
service will spread many positive things (and vice versa), it can be said that WOM is an
important factor in helping The Coffee House to grow revenue.

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Picture 4.10 Customers review about The Coffee House

4.5 SERVICE PROCESSES MANAGEMENT

4.5.1 Flowcharting Customer Service Processes

Picture 4.11 Flowchart customer service processes of The Coffee House

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Customers want to go to The Coffee House to work, study or hang out with friends. They
search for a place near and familiar to them. After reaching the store, the first thing they need to
do is find a parking space, then they will order food or drinks. Customers are waiting while
employees are cooking and making food, drink. The customer will receive the item in a few
minutes. And their last act was to leave the store.

4.5.2 Blueprinting Services

Picture 4.12 Three action of blueprint service customer


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Explication: 

4.5.3 Redesign Services

To maintain its position in the market, The Coffee House needs to constantly innovate
itself and improve day by day to keep up with current trends. Many things that they can be
redesigned:

 Eliminating non-value-adding steps

 Shifting to self-service to reduce staffing costs. Besides that can make yourself special
compared to the competition

 Delivering direct service such as free shipping within a radius of 1-2 km,...

 Bundling services

 Redesigning physical aspects of service process

4.5.4 The Customer as Co-Producer

 Customers can influence productivity and quality of service processes and outputs

 Customers not only bring expectations and needs but also need to have relevant service
production competencies

 For the relationship to last, both parties need to cooperate with each other

4.6 PHYSICAL EVIDENCE MANAGEMENT

According to the theory of expanded Marketing Mix, Physical Evidence is understood


as the material environment where the exchange between customers and businesses takes place,
a collection of material elements created by people and nature, potentially positively or
negatively impacting the efficiency of the business's service business.

Material factors are created by man, there are 2 main types:

 Created by service enterprises themselves, including material products and equipment


in the service business. This physical environment is composed of many factors such as color
arrangement, images, space, lighting, decoration, and other field elements.

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 Not created by service enterprises, including public service systems, national
architecture, cultural houses, parks, temples, cultural relics,...

Because the peculiarity of the service industry group is the abstraction of the business needs
"tangible" evidence so that customers can easily visualize the service provided.

In addition, physical evidence in 7P marketing also involves building the brand of the
business, and their products are felt in the market. It is physical evidence of the presence and
establishment of a business. One concept of this is branding. They manipulated consumer
perception so well that their brands first appeared when an individual was asked to read a
brand's name in their field or industry.

4.6.1 External factors

 Signboard: the name of the shop " THE COFFEE HOUSE " is capital printed, large,
located in an easy-to-see and consumable position

 Design: all branches of the shop are designed using external glass. The Coffee House
stores all use striking orange-black tones. These are two typical colors of the shop.

 Logo: designed eye-catching, attracting customers but easily mistaken for a coffee
brand from Korea. The logo uses 2 main colors: white letters on an orange background. Logo
design is not only simple but also shows the youthful, creativity of the brand, making
customers easy to remember, easy to identify the brand

 Parking space: the front of the shop is quite narrow, limited in the area. The coffee
house's parking lot frequently encroaches on the sidewalk. Due to a large number of guests,
parking does not meet enough parking spaces for guests. There are several branches, security
guards or sitting on the saddle, causing scratches of the passenger's car, the attitude of the
parking guard is not polite to customers.

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Picture 4.13 The outside space of The Coffee House

4.6.2 Internal factors

It is not difficult to realize that The Coffee House has a very unique feature, impressing
customers the first time they enter. In addition to vintage design, The Coffee House blends
luxury and is equally cozy, where every customer finds satisfaction.

- Shop space:

 Beautiful decor, spacious and airy space, many beautiful view locations. Space is
designed with 2 main colors: white, orange, and a lot of glass. The simple and cozy
layout makes customers feel comfortable, making it feel like they are at home.

 The order receiving area is designed to fit, not too spacious for customers to stand to
choose dishes.

 High-rise architecture combines the use of many glasses, windows to create open and
open spaces, tables and chairs are arranged according to each area. There is a long table
in the style of "Co-working space"- an open working space, and a round table for
friends to meet. The four sides of the table should be round, not squarely pointed. It
must be exactly 75cm high, the seat is exactly 45cm high, the distance between the table
and the chair is about 30cm, the guests will sit comfortably. Enterprises calculate bit by
bit from the chair when building the store, such as in any position, arrange 2, 3 chairs
and how many centimeters the nearest seat to the door is so that when someone outside
opens the door to enter, the person sitting in the chair does not feel disturbed. The
subtlety from the arrangement of round or square seats so as not to endanger people

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when stepping on them, white or black walls so as not to cause a dirty feeling when
guests sit too close.

 If many cafes do not expect customers to sit back for too long, even as Starbucks limits
this by limiting wifi access time, at The Coffee House, you can comfortably sit for
hours in a fully equipped space. Exquisite even the choice of music so that it is smooth
is taken care of by The Coffee House to bring the most optimal experience to
customers. With the desire that customers can see The Coffee House as "Home",
everything is meticulously calculated to bring the best experience to customers. "Coffee
House" is not only a place for coffee business but also a place to meet friends, an open
working space.  A feature of this chain is that no store has the same space as any store.

 The Coffee House is important, interested in every detail from the interior to the lights
to suit its customers the most. Light is the decisive factor for human emotions, so The
Coffee House has designed a lighting system that must have yellow light to increase the
cozy feeling for customers when entering the shop.

                    

                                            Picture 4.14 The inside space of The Coffee House 

- Machinery and equipment:

 Placed behind the order counter is a modern dispenser

 The Coffee House uses all glass but uses plastic straws. Recently used paper cups for
takeaway items. All customer service items have the name of the shop as 'THE
COFFEE HOUSE' designed exclusively from body cups, cups to pads.

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- Diverse menu

 The shop serves both drinking water (hot or cold) and pastries and bread. Customers
can easily choose because there are glass cabinets displaying cakes right at the order.
The menu has drinks, food besides the best seller products are always innovative. 

4.6.3 Other factors

- Uniform: The Coffee House is one of the rare brands that use black as the main color for the
uniform. Long-sleeved black shirts, paired with black jeans, give employees a style that is both
friendly and luxurious. The left side of the shirt is printed with the name of the white " THE
COFFEE HOUSE ". The shirts of bartenders, waiters, and security guards all have this
inscription.

- Brochure: introduced to design all items in the menu of the shop, or to introduce new
products

- The Coffee House Signature: The new branch named "The Coffee House Signature" on
Pham Ngoc Thach Street, District 1, opened in March 2018.

                       

                                 Picture 4.15 The inside space of The Coffee House Signature

 The Coffee House Signature takes advantage of green space, transparent glass to make
customers feel relaxed when coming here to chat, meet relatives, friends, or business
meetings. With a modern and youthful interior design, The Coffee House Signature uses
2 colors, especially black and white to create an attraction for the brand. A little golden
light mixed to impress customers at first sight. Guests can use the luxurious internal

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space, as well as the airy and quiet outdoor space. This branch is a favorite virtual living
place for many young people

 Inside the shop, in the middle is a spacious and luxurious bar, where a variety of
machines and ingredients can be made directly with premium coffee. On the upper floor
of the shop, there is also a large bookcase for customers to read and enjoy the typical
high-class coffee of The Coffee House.

4.7 PEOPLE MANAGEMENT

One of the essential elements of the marketing mix is people. This includes everyone
who is involved in the product or service whether directly or indirectly.  Not all of these people
get in touch with the customers.  But all these people have their roles to play in the production,
marketing, distribution, and delivery of the products and services to the customers. 

Despite technological advances, many services will always require direct interaction
between customers and service employees. You must have noticed many times how the
difference between one service supplier and other lies in the attitudes and skills of their
employees. Service firms need to work closely with their human resources ( HM ) departments
and devote special care in selecting, training and motivating their service employees. In
addition to possessing the technical skills required by the job, these individuals also need good
interpersonal skills and positive attitudes. HR managers who think strategically recognize that
loyal, skilled, motivated employees who can work well independently or together in teams
represent a key competitive advantage.

4.7.1 The Coffee House's human rights organization model 

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                          Picture 4.16 The Coffee House's organization model and personnel

Work shift is divided into 2:

 Morning shift: 7 am - 3 pm ( including 1 manager, 1 shift supervisor, and 9 employees )

 Evening shift: 15:00 - 23:00 ( including 1 assistant, 1 shift supervisor, and 9


employees )

Employees work 5 days/week, must graduate from high school

There will be salary-raising contests for employees to test their skills profession

4.7.2 The human factor that determines the quality of service

In the business strategy of businesses, the human factor in marketing is indispensable and
extremely important. Employees are not only sellers, serving customers, who customers
exchange first, but also representatives of the business. Ceo of The Coffee House chain -
Nguyen Hai Ninh said: " The person that customers meet first is not the CEO, but the salesman,
the number of customers who meet and chat with the CEO counting on the fingertips.
Therefore, every time recruiting quality staff is very focused by The Coffee House. One of the
keys to retaining customers is to train sales staff well, not just quality and price.

- Management

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 Develop a development roadmap for employees and training industry knowledge (F&B)
so that employees can develop their careers in a professional environment. At The
Coffee House, there are always opportunities to engage teammates, encouragement
from management, management, and challenges to make people a better version every
day

- Staff

 The Coffee House believes: "Employees are at the core of sustainability". Building,
creating a feeling of happiness, focusing on the career path for employees, job
satisfaction, and a positive environment will be the long-term foundation for the
sustainable development of The Coffee House. "As a happy common home for anyone
who comes to" The Coffee House wishes to help each employee develop their career
through a professional working environment, team cohesion, regular training, and
improving professional skills. Here, employees will learn how to communicate, satisfy
the needs of customers 

 The mission of conveying happiness of The Coffee House shows that: At The Coffee
House, we appreciate and appreciate the connection between people and customer
experience. We strongly believe that the joy of customers will be brought from the
spread of happiness from the dedicated staff here. Therefore, one of the current cores of
the business is to build a happy and sustainable staff.

 " Employees like family members ". The Coffee House has successfully retained the
common and dedication of its employees. Although the characteristics of F&B
personnel are diverse, different qualifications, unstable, at The Coffee House,
employees are considered as centers, treated like "family members", and are given the
right to master and enjoy attractive remuneration and salary policies. The Coffee House
becomes a place for each of their employees to develop, to challenge themselves to
become better every day.

 The proliferation and friendliness of the staff are also one of the great advantages of
The Coffee House. Attentive service, cheerful smiles, timely thanks, and apologies,... is
something that can be seen in the satisfaction of every customer. At The Coffee House,
everyone from managers to employees, from cashiers to security guards knows how to
stand in the position of customers, serve customers and handle the most reasonable
situations. 
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                                                                Picture 4.17 Friendly staff 

- Customers

 Students and those who work and travel are targeted customers of The Coffee House.
They use coffee for a variety of purposes. Not only come to the shop to drink, enjoy but
also to exchange, make friends, create networks, work. The service of using people's
coffee shops seems to have become a habit for people to meet, communicate, share
space experiences and drink.

 The Coffee House said: " Customers are the center ". Customers become the center for
all service experiences, all business activities of The Coffee House. Every product,
every service, every activity comes from understanding customers.

 Customers are an indispensable factor in helping to spread the brand of the business.
The most important goal that marketing aims at is customer satisfaction. If customers
love the service, the experience of the shop, and the working style of the staff at The
Coffee House, they will come back and introduce the store to relatives, friends, and
other customers.

- Preferential policies for employees

 Training inexperienced employees, creating a friendly and professional working


environment for employees, adequate insurance modes, encouraging employees to give
their opinions to the company, creating promotion opportunities

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 The Coffee House supports the purchase of Health Insurance, Social Insurance,
Unemployment Insurance for all employees (except part-time employees). In-store staff
will be rewarded with additional rewards if the sale reaches target; salaries for public
holidays and New Year's Day will be 3.4; 13th-month salary. In addition, all employees
are allowed to participate in Team Building, Year End Party activities every year.

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SECTION 5. EVALUATION & RECOMMENDATION

5.1 EVALUATION

5.1.1 Services Product Strategy

Strengths: With a diverse menu of products to suit all customers' needs. If you are a
coffee drinker, at The Coffee House, coffee ingredients and all beverages are selected from
rigorously tested sources, meeting the highest quality standards. The application of smart
technology and bringing customers into exquisite experiences from the smallest things has
made The Coffee House the leading stores in the Vietnamese market. The Coffee has applied
very well to Customer Insight. And The Coffee House's branding positioning strategies are
friendly to Vietnamese customers.

If you are a cake enthusiast, The Coffee House also offers customers mornings and
afternoons with a variety of different quality cakes. Accompanied by signature dishes such as
Orange Lemongrass Peach Tea, Milk Coffee, Matcha Macchiato, Black Tea Macchiato, Bac
Xiu, Americano,...and other teas and fruit drinks.

Weakness: There is also a point that is not perfect, which is the restaurant's menu. The
longtime staff there also admits that the menu there is nothing really special. Mainly customers
come to the shop because they like the space and service here. The Coffee House In general,
always young, not much experience, so it is necessary to learn step by step and take some time
to develop. And of course there are mistakes that will cost a lot when choosing the wrong
direction for the future. Risks in other stores are also unavoidable. If in the chain of stores there
is a one that fails, discrediting the brand, other coffee shops will also be affected. The age of
technology and network development, the growth of social networks, even the smallest
mistakes in helping customers are difficult to avoid the impact of public opinion.

5.1.2 Pricing Strategy

Strengths: The quality of the drinks, and the cakes that match the price make everyone
satisfied with their choice. The price of a glass of water is not too expensive, so customers like
students often come to study or have fun with friends.Good service quality, reasonable price,
many customers can afford it, not too expensive like other famous coffee brands, that attracts
customers. In general, with a price of 30,000 to 60,000 VND, this can be considered a fairly
stable price for the coffee shop market.

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Weakness: With such a price, The Coffee House has not really made a strong
impression on the brand compared to other competitors, businesses will face a slight
disadvantage in terms of cost.

5.1.3 Distribution Strategy

Strength:The Coffee House has been very successful when it comes to investing in
services rather than products compared to other competitors.  Besides, good service customers
also enjoy products with reasonable prices.  The Coffee House creates a variety of products to
suit the taste of customers.

The Coffee House also succeeded in expanding its business range from North and South
so that customers have more opportunities to experience at The Coffee House.  Operating your
own website that provides full information and stories around The Coffee House for customers,
a team of delivery staff who are always ready to serve customers in the best way without any
hassle.  need to go through an intermediary.

Weakness: Although there are many branches stretching from North to South in our
country, The Coffee House is only concentrated in Hanoi and Ho Chi Minh City, ignoring other
developing cities such as My Tho, Da Nang,  Da Lat,…

5.1.4 Promotion Strategy

Strengths: The coffee house's promotion is extremely different and special. It is strange
that it does not use tricks but hits the psychology of customers from small but very touchy
stories about "home", about "family", about "happiness" and stories about coffee very closely.
In each story, each customer's feeling is appreciated and spread to many people. It is not merely
storytelling but also inspiring, creating valuable lessons and attracting an extremely large
number of customers. Listening to customers and understanding customer insight has helped
The Coffee House always have a stable loyal customer group and create a positive spreading
effect in the community.

In the complexity of the Covid-19 epidemic, sponsorship and social activities have
helped to enhance the brand's position and success. These activities have partly shown The
Coffee House's responsibility to the community and society.

Weaknesses: The Coffee House promotions appear with dense frequency. Vouchers,
coupons are also a lot. This can have counter-protests, customers will no longer react strongly
to the above promotions.

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5.1.5 Service Processes Management

Strengths: The process is made simple and easy for everyone to access. The Coffee
House is considered as a service staff with a good and professional attitude, so it attracts many
customers. People come for the space and the quality of service.

In addition, if you look carefully, you will see that every time you enter a coffee shop to
work, customers will always find the place closest to the electrical outlet. Maybe they take
advantage of charging the phone battery for uninterrupted communication, or maybe the
computer will not be turned off halfway when the work is not done. At The Coffee House,
there will be enough electricity at each table, you can easily borrow a battery charger from the
lovely staff. An ideal space for you to just come to meet friends, to work or read a book.

Weaknesses: Each establishment has too few employees, so the waiting time is a bit
long. If this point can be fixed, the process will be perfect

5.1.6 Physical Evidence Management

Strengths: The space of the shop is one of the factors that make customers choose to go
to The Coffee House store. Elements of the facility, design, or interior of the shop have been
stabilizing day by day. Almost every space of The Coffee House is well-invested, luxurious and
beautiful. Yellow, white and black tones are still dominant, along with the design corners to
receive natural light, helping the shop look clean, airy but no less luxurious. Customers coming
to The Coffee House will be able to choose their own favorite corner easily.

Open space, wide seats, and attentive service, strong wifi are the advantages of The
Coffee House. In the morning, you can sit to receive guests; In the evening, you can stop by to
read a book, work or chat with friends; it is a place where they feel at home and are treated like
close friends.

Weakness: Many stores belonging to The Coffee House chain are encroaching on the
sidewalk. Many customers feel concerned about the parking service at the store.

5.1.7 People Management

Strengths: The sophistication of The Coffee House's team is not shown in an


ostentatious way, but with the dedicated care of the staff here, from waiters, cashiers to security
guards. The glass of filtered water is always filled, and the car is taken to the place. Do not wait
until prompted, staff always meticulously observe the activities and wishes of customers to
assist at all times. This many times has made people come here excited because they feel their
47
care is very sincere and simple. However, very few brands can make customers satisfied with
this very small thing like The Coffee House.

It can be seen that The Coffee House is building a polite and friendly brand image.
Thank you and sorry are always with them at the right time, in the right place and very
delicately. Importantly, it is expressed authentically through the way they act. The policies that
The Coffee House built in the working culture have taken away the loyalty of employees. Since
then, maintaining the dedication, enthusiasm and sincerity in service as well as ensuring the
uniform quality of the whole system throughout the operation process.

"Human-centered" from small things has brought huge effects. From employee happiness to
customer satisfaction, they have naturally become a familiar place for many people.

Weakness: Some branches and employees are judged by customers as unprofessional,


or forget dishes for customers. Employees have an unpleasant attitude when being reminded by
customers. But this happens very rarely. Sometimes, security guards have a bad attitude
towards customers. Part-time employees rate the salary quite low

5.2 RECOMMENDATION

5.2.1 Services Product Strategy

Focus on core products because when customers come they have too many choices.
Having a key and outstanding product will make customers more interested and attentive. The
recruitment, training and control of employees are very strict. As well as closely monitor the
facilities of the shop. Stricter and more detailed processes as well as loss of benefits for
employees. Constantly changing and updating processes and new service types to attract more
customers' attention. In addition, after-service customer care is an important and indispensable
thing in the service industry.

5.2.2 Pricing Strategy

The Coffee House should diversify the menu with drink and cake combos for customers
to easily choose and pay less. For example: When a customer buys a cup of CAPPUCCINO for
50,000 VND and MOUSSE TIRAMISU for 32,000 VND, but when the customer buys a
combo of 1 drink and 1 cake, the price is only 80,000 VND.

Because the cost of producing 1 glass of water with the service is not small. Therefore,
The Coffee House should consider pricing at a higher price so that the business can cover its
costs and can assert its brand in the market compared to other competitors.
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In addition, The Coffee House should consider using the location-based pricing strategy
of stores. The shops located in different locations in the city should have different prices. Shops
with branches in developed cities and districts should have different prices than shops with
branches in less developed cities and districts, in line with the payment levels of people there.
Restaurants with good views have different prices than shops with normal views

5.2.3 Distribution Strategy: 

The segment of The Coffee House currently only focuses on young customers, students
and working people who need space to hang out or study and work. The Coffee House should
expand its store distribution by combining with convenience store chains like Phuc Long and
Vinmart as a Kiosk selling takeout products at Vinmart. With this distribution model, The
Coffee House helps The Coffee House expand its target customers, who are housewives or
people who have a habit of going to convenience stores to buy consumer products.  

On the other hand, nowadays people tend to shop more at convenience stores because of
convenience in shopping and high safety, so with this model, The Coffee House will reach
customers.  more and increase product sales.

5.2.4 Promotion Strategy

In recent years, The Coffee House's marketing strategy has been outstanding and
impressive. Currently, the Covid-19 epidemic is not over, The Coffee House needs to maintain
and promote activities such as sponsoring food and water for people and doctors to join hands
in combating the dangerous epidemic.

It is necessary to promote The Coffee House Go Green programs – a series of


environmental activities by creating TVC, posting interesting posts on Youtube, Facebook,
Website to initiate new trends in limiting the use of plastics.

Noticing that the engagement on The Coffee House's Facebook channel is still not
strong, the brand should promote minigames or invite influential people to share and promote
products.

The Coffee House should reduce promotions as they appear almost every week and are
no longer special to customers. Brands should only occasionally create special promotions to
stimulate market demand.

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5.2.5 Service Processes Management

Because the customer service process has nothing outstanding or special compared to
competitors. We can transform the process like self-service customers, buffet table will be
much more interesting

5.2.6 Physical Evidence Management

In material factors, customers feel most concerned about parking lots. The problem is
that the parking area is quite tight, but the number of customers is too crowded so The Coffee
House needs to try to expand its parking area or can rent the nearest parking lot possible.
Discipline security guards who are ied with guests.

To protect the environment, The Coffee House should limit the use of plastic straws,
which can replace them with dried grass straws. This straw is both environmentally friendly
and cost-effective for businesses. When buying 500 straws or more, the price is reduced to only
VND 1000 / tube. This makes sense because the restaurant's water is often less accompanied by
toppings.

5.2.7 People Management

The Coffee House should have more reward modes for employees such as travel
sessions 1-2 times/year to build good relationships, and the solidarity of employees and
managers in the company. The majority of part-time employees rated The Coffee House as
paying them quite low. Most part-time employees are students who do not yet have stable jobs.
The salary of a part-time employee is only 16,000 VND / hour. Therefore, The Coffee House
should have a policy to increase their salary. For strategic products, The Coffee House needs to
encourage employees to actively sell products by offering an extra bonus for each product,
which will make employees more active, more motivated and at the same time increase
company's sales.

During the Covid-19 pandemic, The Coffee House should try to ensure income for its
employees. From managers, full-time employees to security guards are on paid leave. At the
same time, the company should also support some basic paydays, employees alternately work
in delivery stores to get income. Office workers don't have to quit.

Because The Coffee House branches are expanded throughout the country, monitoring
and supervision are difficult. Therefore, the company should strictly manage and regularly
monitor, listen positively, encourage employees, and always try to support employees as best as

50
they can. The contributions of employees and customers help the company timely repair and
handle shortcomings.

CONCLUSION

Through The Coffee House's marketing and mixing strategy, we can see the current
state of the brand's business in the market. With more than 7 years of operation, understanding
the market and good management  has helped The Coffee House coffee brand despite being
born late but is growing faster than many competitors in the coffee market.

"Let’s go for Coffee" is no longer merely the act of loading into people the black liquid
containing caffeine, it becomes a dynamic that shows meeting, communicating, sharing the
experience of space, and drinks. With the right marketing-mix strategy and creativity, The
Coffee House has brought a brand with diverse products, inspiring stories about nature and
life.The Coffee House’s implemented strategy of retail locations and on-site partnerships have
received greater response rates. Through its promotion strategy, social and community
activities have also helped The Coffee House affirm its brand and values. Besides,  the
combination of space and service style has optimized the customer experience; bringing added
value to the service. Their inviting “ideal coffee shop ambience” should prove to be a
sustainable competitive advantage.

However, during operation, the strategy has also revealed certain limitations. These are
products that do not really meet the needs of customers, parking lots are still limited, dense
promotions make customers feel bored or even in some stores the service staff has many errors,
delays and  bad attitudes ... Therefore, the company needs to make flexible changes to make its
strategies more complete.

The successes achieved by The Coffee House brand as well as the above limitations
have brought valuable lessons learned to businesses, especially for the F&B industry in
Vietnam. This brand of pure Vietnamese tea and coffee promises to bring more surprises and
remarkable activities in the future.

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LIST OF REFERENCES & ORIGINALITY

 Bài học kinh doanh cafe thành công từ The Coffee House. (2017). Extract from
https://ipos.vn/bai-hoc-kinh-doanh-tu-the-coffee-
house/#2_Bai_hoc_kinh_doanh_thanh_cong_tu_The_Coffee_House

 Giải mã thành công của The Coffee House và bài học kinh doanh quán cafe. (2019).
Extract from  https://fabi.vn/bai-hoc-thanh-cong-tu-the-coffee-house/

 https://fnbvietnam.vn/phan-tich-chien-luoc-marketing-cua-the-coffee-house/ 

 Page Facebook of The Coffee House. (2021). Extract from


https://www.facebook.com/The.Coffee.House.2014/posts/3016837888590217

 Phân tích điểm yếu của the coffee house mới nhất 2020. Extract from
https://sum.vn/blog/phan-tich-diem-yeu-cua-the-coffee-
house/#13_Chien_luocdinh_vithuong_hieuThe_Coffee_House

 Thành công của The Coffee House và bài học về kinh doanh trong quản lý quán cafe.
(2020). Extract from https://www.tanca.io/blog/thanh-cong-cua-the-coffee-house-va-
bai-hoc-ve-kinh-doanh-trong-quan-ly-quan-cafe

 The Coffee House – lý do trở thành thương hiệu dẫn đầu. (2021). Extract from
https://vietreview.vn/kinh-nghiem/the-coffee-house/

 The Coffee House – Ngôi nhà cà phê tại Việt Nam. Cách đặt món được ưu đãi 25K.
(2021). Extract from https://magiamgialientuc.com/the-coffee-house/

 The Coffee House gửi gắm tinh thần vì cộng đồng qua chiến dịch Tết 2020. Extract
from https://www.brandsvietnam.com/congdong/topic/25035-The-Coffee-House-gui-
gam-tinh-than-vi-cong-dong-qua-chien-dich-Tet-2020 

 THÔNG TIN DOANH NGHIỆP. (2021). Extract from


https://doanhnghiep.quocgiakhoinghiep.vn/doanhnghiep/the-coffee-house/

 Tổng quan thị trường chuỗi coffee shop tại Việt Nam 2020. Extract from
https://www.brandsvietnam.com/congdong/topic/28020-Syndicated-Report-Tong-quan-
thi-truong-chuoi-coffee-shop-o-Viet-Nam-2020

 Website of The Coffee House. (2021). Extract from


https://www.thecoffeehouse.com/pages/cau-chuyen-thuong-hieu

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Liễu Hoàng Lan Anh - 1921001273 Process, Section 5, Reference 100%

Product, Section 1 Section 5, Summary


Nguyễn Viết Trường Giang - 1921006675 100%
of articles and check plagiarism

Lưu Phương Hà - 1921000737 Physical and People, Section 5 100%

Trần Thảo Nguyên - 1921005571 Distribution, Section 3, Section 5 100%

Nguyễn Thanh Như Ngọc - 1921005561 Promotion, Section 5, Conclusion. 100%

Huỳnh Hồ Bảo Trân - 1921000967 Price, Section 2 80%

WORK TABLE

CHECK PLAGIARISM ON TURNITIN

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