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SCHOOL OF WESTERN SYDNEY VIETNAM

GROUP ASSIGNMENT COVER SHEET
STUDENT DETAILS

Student name: Le Ngoc Minh Thu Student ID number: B1112025096

Student name: Tran Pham Bao Phuong Student ID number: B1112025098

Student name: Tran Dinh Tuan Student ID number: B1112025099

Student name: Tran Vo Viet Long Student ID number: B1112025100

Student name: Nguyen Phuoc Thien Student ID number: B1112025087

UNIT AND TUTORIAL DETAILS
Business Communications-
Unit name: S320WSB-3 Unit number:
Tutorial/Lecture: Class day and time:
Lecturer or Tutor
name: Dr. Freddy Aragon
ASSIGNMENT DETAILS

Title: FINAL PROJECT

Length: Due date: Date submitted:
Home campus (where you are enrolled): WESTERN SYDNEY VIETNAM
DECLARATION

I hold a copy of this assignment if the original is lost or damaged. 

X
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student’s work or from any other source except where due acknowledgement is made in
X the assignment.
I hereby certify that no part of this assignment or product has been submitted by
me in another (previous or current) assessment, except where appropriately
X referenced, and with prior permission from the Lecturer / Tutor / Unit Coordinator
for this unit.
No part of the assignment/product has been written/produced for me by any other
person except where collaboration has been authorised by the Lecturer / Tutor /Unit
X Coordinator concerned.
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I am aware that this work will be reproduced and submitted to plagiarism detection
software programs for the purpose of detecting possible plagiarism (which may retain a
X copy on its database for future plagiarism checking).

Student’s signature: LE NGOC MINH THU

Student’s signature: TRAN PHAM BAO PHUONG
Student’s signature: TRAN DINH TUAN
Student’s signature: TRAN VO VIET LONG
Student’s signature: NGUYEN PHUOC THIEN
Note:  An examiner or lecturer / tutor has the right to not mark this assignment if the above declaration has not
been signed.
ARO 00398 09/15

TITLE PAGE
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TABLE OF CONTENT
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THE COFFEE HOUSE

BACKGROUND STORY
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The Coffee House is a Vietnamese coffee house chain. It was created in 2014 by Mr. Nguyen Hai Ninh
(who is the founder of two coffee chains Urban Station and The Coffee House). The coffee house,
considered an upgraded version of Urban Station, expands 20 stores in just one year, located in
noticeable locations on major roads in Ho Chi Minh City and Hanoi. It is also considered to be one of the
most formidable opponents in the battle against other famous beverage shops such as Starbucks,
Highlands Coffee, Trung Nguyen Coffee,… In March 2018, the chain has more than 100 stores across
Vietnam that serve 40000 clients a day. The CEO Nguyen Hai Ninh announced that the company intends
to open 200 more branches in 2020.

https://vietblend.vn/kinh-nghiem-mo-quan-cafe-nhin-tu-thanh-cong-cua-the-coffee-house/

https://en.wikipedia.org/wiki/The_Coffee_House_(coffeehouse_chain)

EXTERNAL BUSINESS

In the year of 2017, Taiwan's Ten Ren's Tea milk tea brand is present in Vietnam through the Vietnam
Tea - Coffee Trade and Services Company, which also owns the coffee chain The Coffee House. However,
in response to the great expectations of Ten Ren's investors, after two years of operation, they stopped
the chain business due to the fact that the current business model is not suitable for customer needs.
"The Coffee House decided to stop and focus on the main business", Mr. Vo Duy Phu - The Coffee
House's marketing director - asserted to Forbes Vietnam. The main business that Mr. Phu mentioned is
the coffee shop chain The Coffee House. They will focus on this key business segment, drastically
improving products - services - experiences as well as systems and technologies for customers.

https://www.phache.com.vn/mo-quan/5-nguyen-nhan-that-bai-cua-tra-sua-ten-ren-243.html
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https://brands.vn/ten-ren-roi-khoi-thi-truong-viet-nam-that-bai-la-tu-dau/

TARGET AUDIENCE

The undertaking of the brand involves four elements: sincere, caring, creative and brave. With a brand
that knows what its customers want, understands what they need, customers can still sit in a luxurious,
Western-style space, but drinks are completely affordable. Because of its investment, customer
understanding and marketing campaigns, The Coffee House has targeted customers of all ages. That is
how The Coffee House builds trust between consumers and the company.

https://www.cukcuk.vn/3997/hoc-duoc-gi-tu-chien-luoc-marketing-cua-2-ong-lon-nganh-cafe/

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

APPLICATION

Instead of like other beverage stores have to depend on other delivery applications such as Now,
Baemin, Grab Food,… it established its own application. When launching the app, The Coffee House
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wants to help customers place orders more conveniently, record online and offline transactions as well
as optimize their delivery process. From there, brands can increase sales without opening more stores.
This was a reckless decision considering the customer behavior of the Vietnamese market at that time
(in 2016) - very few people purchased or ordered through the application. After more than 2 years, The
Coffee House application has been downloaded more than 100,000 times and received positive
feedback from users.

https://www.brandsvietnam.com/congdong/topic/22637-Hoc-duoc-gi-tu-cach-The-Coffee-House-lam-
app-Ky-1

https://teraapp.net/blog/the-coffee-house-da-thanh-cong-nho-ap-dung-ung-dung-di-dong-trong-kinh-
doanh-nhu-the-nao

PROBLEMS
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Many companies are always looking for ways to attract new customers and retain old customers, so
sometimes they are too focused on new customers and forget about loyal customers. THE COFFEE
HOUSE is no exception 

- What are the problems ?

*Wrong business strategy

 Introduction: The impact of the COVID-19 pandemic this year has severely affected restaurants'
business, including restaurants and beverages. Especially during the period of social separation, the
above business locations were forced to stop working.

+Many other big coffee company has accepted to work with food delivery applications ( baemin, gojek,
grab..) so that they can both deal with a pandemic and advertise their product but The Coffee House is
the only coffee chain among the major brands that doesn't put their stores on food delivery apps,
instead using their own delivery service.

The Coffee House, gross profit margin above 72% is among the highest in the market, but reported a
loss. In recent years, The Coffee House always encourages customers to experience the product app
with attractive offers. In fact, downloads of The Coffee House application on the Google App Store have
exceeded 100,000, far away from other coffee chains in the market.

The coffee chain leader's view is that collaborating with food delivery applications is suicidal.
"Promotional money delivery apps offer short-term value to food and drink brands. The brands will then
depend on the apps."

As a result, The Coffee House reported a loss of 81 billion dong, the first time it has suffered a loss in
recent years, which affected a lot from the decision of The coffee chain leader 

+The reason here is that  food delivery applications give new customer so much attractive discount 

(Can you belive that a 100.000 vnd bill can be sale off by 60.000vnd)*, also by this the coffee company
can handing out their products to potential customers 

*Less incentives: 

+The reason here is that  food delivery applications give new customer so much attractive discount 

(Can you belive that a 100.000 vnd bill can be sale off by 60.000vnd)*, also by this the coffee company
can handing out their products to potential customers 
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+ To Compared with other food delivery apps, TCH’s app TCH's app has fewer offers and discounts and a
poor bonus point system

When TCH announced to change the preferential policy for customers. Specifically, instead of
accumulating points with stars as before, from this point, the points will be calculated with the bean.
Included with this message is a bean cloning program with other attractive benefits.

However, instead of being excited about the new preferential policies, many loyal customers with The
Coffee House reacted violently, even many people said that they would give up The Coffee House
because of their interests affected.

RESEARCH
As you can see in figure 1, the number of internet users in Vietnam increases considerably from 2017 to
2020 and it is forecast to rise continuingly in 3 more years. Thus, we can understand that, the increasing
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use of the internet also means that e-commerce will grow and become popular. Specifically, in figure 2,
we can obviously see that the number of e-commerce users and gross merchandise value in Vietnam
climbs rapidly throughout the 4-year-period (2016-2019) and it may still rise in the future.

We can conclude that e-commerce become popular among Vietnamese users. So that, cooperation in e-

commerce or delivery applications such as Now, GrabFood, Baemin is ideal and brings many benefits to

the company.
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According to Vietnam Digital Report 2020 statistics data to January 2020 about Digital Vietnam by the
organization We Are Social and Hootsuite, as shown in Figure 3, the percentage of consumers who buy
food & beverage online accounts for 16%, the fourth highest among categories and this figure has
increased by 24% compared to 2018. This shows that online shoppers are quite fond of buying F&B
delivery on these days because of its convenience. 

Moreover, we know that The Coffee House is

   
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SOLUTIONS
With our team’s opinions, there are 5 solutions for this problem:

  They could start cooperating with online food ordering platforms such as Grab, Gojek,
Baemin:
This solution might not be the best because they are going behind. Because all the major brands
have joined the online platforms for several years, TCH cannot keep up and compete with others
rivals. In order to keep up with their competitors, TCH might have to give discount at the first
place so that they can attract more customers. But with the service-centric strategy and we
think that it is absolutely a great strategy, they can’t just run for the profit and expecting to have
a bright future.
 Not using any online platform
 Just offer drinks and foods at the store will limited the potential customers such as people who
don’t have time to go out or just too far away from the store.
 Improving marketing plan
Instead of using platform to increase consumption and customers, company can pushing
marketing campaign of the company by using advertise, promotion, social media, giving slogan
or the objectives to the customers.
 Applying price discrimination
One of the way that we can increase buyers is price discrimination. We separate customers by
their willingness to pay, so that we can also reach to customers that have the willingness under
the price. For instance, giving coupon on newspaper or online and people with lower willingness
will more likely to hunt for coupons. Because before, the price is higher than their willingness,
they don’t buy it. But when the price is decrease slightly they can attract more people, reach to
more people.
 Know Your Business Inside and Out

Thoroughly understanding your industry and having a firm knowledge of your product or service
is critical to being able to attract interested clients. When you know your product backward and
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forward, that fact comes through. The people who would be interested in your offerings can see
how knowledgeable you are and will seek your assistance.

MAIN SOLUTION

They can keep going the same way, cooperating with third-party drivers applications such as Ahamove
and Grab Express for delivery:

 They choose a different way from their rivals, they using service-centric strategy. They wanted
to directly deliver products to customers so that they know their behavior and demands rather
than just wanted to sell more product and increase the profit by using online food ordering
platforms. By creating their own platform and cooperating with third-party applications, they
will able to know the schedule, delivery location and where your customers are. And they are
ready to open new store in those area. To provide the best service, they are willing to open new
branch near the customer’s area so that they can enjoy with all the comfort and convenience. So
they might experienced loss at the first place but with that trust in customers, local market
understanding and customers focus, they could have the rapid development in the future.
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RECOMMENDATION
Reports & Cases of:
The statistics of food delivery services in 2020: https://beambox.com/townsquare/food-
delivery-service-statistics (Town Square, 2020)
The competitions in the coffee market: https://www.mordorintelligence.com/industry-
reports/vietnam-coffee-market#:~:text=Vietnam%20Coffee%20Market%20is
%20witnessing,producer%20and%20exporter%20of%20coffee.&text=74.8%25%20of
%20domestic%20coffee%20consumption,10.2%25%20are%20instant%20coffee%20products.
(Mordor Intelligence, 2020)

CONCLUSION

In conclusion, the use of delivery services is critical in today business because of the pandemic,
especially, in a drinks/beverages business which is very popular these days. And, for a brand as
famous as The Coffee House (TCH), it is essential to have that kind of service, but instead they
neglected in investing into this obvious game-changing advantage, there have also been changes in
the points programs for special discount/service/gift that have reduced the worth of these extra
benefit for the customers. In the end, it had resulted in a great loss in profit for the famous
trademark and of many loyal clients/ regular patrons. The well-known coffee chains will need to up
their game if they wish to maintain their position as one of the top go-to for people in need of a
good-quality drinks of caffeine. 

The sources:

 Revolution of food delivery: https://folo.my/blog/what-is-a-food-delivery-service

 Technology role in today business: https://industrytoday.com/the-role-and-importance-of-
technology-in-business/
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REFERENCE PAGE
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THE MODERN REVOLUTION OF FOOD DELIVERY SERVICES

With the growth of modern technology, there have been a lot of changes towards food
delivery services over recent years. Most famous restaurants have introduced toll-free numbers
so that customers can call on these numbers without being charged for the phone call. In
addition, the concept of free food delivery to one’s homes was well-appreciated by customers.
This way, not only could people call the restaurants for free but they can also get a hold of the
food they ordered without any cost of transaction. This indicates that food delivery services play
an important role in the modern food and restaurant industry, and due to the high level of
competition with its competitors, this has proven to be a major factor that affects the demand
of consumers.

Today, we are introduced to the concept of ordering food online and getting our food from
modern delivery services. One can easily order food online through food delivery apps like
Foodpanda, GrabEat, and Folo. Sometimes, restaurants would partner with online food ordering
apps to place their restaurants in their application. In this case, restaurants can just focus on
preparing the order placed by the customer. Food ordering and delivering apps include
addresses of the customers to the riders who deliver the food to the customer. We are able to
make transactions to buy food through online banking, cash on delivery, and immediate
payment through debit and credit cards. One can order food online and receive their order as
soon as possible, or they can make a reservation for the food to be delivered on a later time.

THE ROLE OF TECHNOLOGY IN TODAY BUSINESS DEVELOPMENT

It Is Indispensable, it’s imperative that you employ a workforce that is techsavvy at least in the
basis. Getting your staff up to date with emerging trends not only boosts productivity, but it has
immense bearing on your bottom-line.
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Improving Communication, in many ways than one, technology has made communication easy
and ubiquitous. IT is fundamental for effective communication internally and externally.

Propels Marketing and Business Growth, from an external communication point of view, a
business will use new technology to advertise and break into new markets.

Streamlines Decision Making, there is a need to keep track of customer and market data.
Decision making in any business is a critical process. You need technology to streamline the
decision making process.

Enhancing Customer Relationship, reputable CRM management systems let you discover what
your customer base wants. It’s advisable to target the right customer at the right time to avoid
them crossing over to your competitor.

Maintain Industry Relevance, whether you are in the real estate, health, warehousing or freight
industry, there is a form of technology designed to inject efficiency into your operations.