Final Report Group 7

BỘ GIÁO DỤC ĐÀO TẠO
ĐẠI HỌC HOA SEN
FINAL REPORT
MARKETING STRATEGY
TRUNG NGUYÊN LEGEND
Lecturer: Jorge Martínez

Class: Marketing Strategy_1358_2331
Group: 7
Group members
Full name ID % Complete
Lã Nguyễn Triều Tân 22102423 100%
Nguyễn Thị Mỹ Anh 22110607 100%
Mai Đào Tuyết Trâm 22104397 100%
Phạm Ngọc Thiên Trang 22117394 100%
Nguyễn Bảo Toàn 22106381 100%
Ho Chi Minh.
December, 2023
Marketing Strategy Group 7
Number Name ID Final Homework Evaluate

+ Porter Forces
+ Marketing Mix Strategy
1 Lã Nguyễn Triều Tân 22102423 + Competitors Benchmarking 100%
+ Content moderation and
completion of Word file reports
+ Segmenting Vietnamese Market

+ Targeting or Selecting our Best
2 Nguyễn Thị Mỹ Anh 22110607 100%
Segment of the market or all
+ Positioning
+ Strategic Enviroment
+ Product life Cycle & History of
3 Mai Đào Tuyết Trâm 22104397 the Industry and forecast 100%
+ Key Success Factors –
Opportunities and Threats
+ Internal Analysis
4 Phạm Ngọc Thiên Trang 22117394 100%
+ S.W.O.T
+ Introduction
+ Marco – Enviroment
5 Nguyễn Bảo Toàn 22106381 100%
+ Micro – Enviroment (Customer
Analysis)
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Pledge
This report was produced entirely by our team and is intended to be used for the
purpose of this subject. This report will be kept confidential by us and not used for
other subjects. All references, views of other authors, other cited sources will be cited
by our team in the references section at the end of this report. We understand the
seriousness of plagiarism in learning, so we are committed to following the rules
seriously and taking full responsibility if we find a violation.
3
Acknowledgments
To successfully complete the report on "Marketing Strategy of Trung Nguyen

Legend". Our team would like to especially thank our Lecturer: Jorge Martínez for
his dedicated guidance, detailed explanation of how to do it and for his suggestions on
our team.
Because the knowledge of our group is quite limited, as well as the ability to write and
analyze is not deep and rigorous, it is not difficult to avoid errors in the work. Our
team is also looking forward to receiving her guidance, as well as her suggestions to
make their work as complete as possible, through which we also consider it an
experience to be able to perform well in future topics.
Thank you very much!
4
Introduction
This report focuses on analyzing the marketing strategy applied to Trung Nguyen
Legend brand - one of the outstanding representatives of the Vietnamese coffee
industry. In this way, we will negotiate how Trung Nguyen Legend has been using
innovative marketing methods to build and grow its brand in an increasingly
competitive business environment. The report will focus on key factors such as
product strategy, pricing, advertising, and customer relations, in order to better
understand how Trung Nguyen Legend has taken advantage of opportunities and
faced challenges to achieve success in the diverse and complex market of the coffee
industry."
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Contents
1. INTRODUCTION....................................................................................................10
1.1 The Company and Mission an Vission..............................................................10
1.2. The portfolio of the company (BCG MATRIX, Matrix Arthur D. Little).........11
2. EXTERNAL ANALYSIS........................................................................................12
2.1 Macro-Environment (Vietnam)...........................................................................12
2.1.1 PESTEL........................................................................................................12
2.2. Micro-Environment............................................................................................14
2.2.1. Competitors Benchmarking.........................................................................14
2.2.2. Customer Analysis.......................................................................................17
2.2.3. Porter Forces................................................................................................18
2.3 Strategic Environment: Where we are................................................................20
2.4. Product Life Cycle & History of the Industry and forecast..............................21
2.5. Key Success Factors - Opportunities and Threats..............................................23
3. INTERNAL ANALYSIS: THE COMPANY..........................................................25

3.1 Value Chain.........................................................................................................25
3.1.1. Inbound logistics..........................................................................................25
3.1.2. Operations....................................................................................................25
3.1.3. Outbound logistics.......................................................................................26
3.1.4. Marketing and sales.....................................................................................28
3.1.5. Service.........................................................................................................28
3.2 SCA > SW...........................................................................................................29
3.2.1. SCA..............................................................................................................29
3.2.3. SW...............................................................................................................30
4. SWOT.......................................................................................................................32
4.1. Strengths.........................................................................................................32
4.2. Weaknesses.....................................................................................................32
4.3. Opportunities..................................................................................................33
4.4. Threats............................................................................................................33
5. Segmeting – Targeting – Positioning.......................................................................34

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5.1. Segmenting Vietnamese Market........................................................................34

5.1.1 Coffee market segmentation according to basic needs (Level 1).................34
5.1.2 Coffee market segmentation (Level 2).........................................................34
5.2. Targeting or Selecting our Best Segment of the market or all...........................38
5.3. Positioning  Create a SCA..............................................................................40
6. Marketing Mix Strategies.........................................................................................46

6.1. Which Strategies the Company is following now in Vietnam...........................46
6.2. 5 proposals to add...............................................................................................49
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Bibliography
 Báo Dân Trí. (2018, October 6). Khác biệt để dẫn đầu! Trung Nguyên Legend. Retrieved
December 8, 2023, from https://trungnguyenlegend.com/khac-biet-de-dan-dau/
 Báo Thanh Niên. (2021, July 2). Cà phê G7 - Tiên phong xây dựng Thương hiệu cà phê Việt
toàn cầu. Báo Thanh Niên. https://thanhnien.vn/ca-phe-g7-tien-phong-xay-dung-thuong-hieu-
ca-phe-viet-toan-cau-1851077642.htm
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thuong-hieu-viet-18971u.html
 Cà Phê Hòa Tan. (n.d.). Trung Nguyên Legend Café. Retrieved December 8, 2023, from
https://trungnguyenlegendcafe.net/product-category/ca-phe-hoa-tan/
 Hữu Trí, Trung Duy, & VTV news. (2023, February 26). Người Việt chi bao nhiêu tiền đi cà
phê? VTV.vn. Retrieved December 8, 2023, from https://vtv.vn/xa-hoi/nguoi-viet-chi-bao-
nhieu-tien-di-ca-phe-20230226092114024.htm
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Nguyên. (n.d.). Brade Mar. Retrieved December 8, 2023, from https://brademar.com/khach-
hang-muc-tieu-cua-ca-phe-trung-nguyen/
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ban-tap-the-duc-965024.ldo
 National Economics University. (n.d.). Chiến lược marketing của cà phê G7 tại Việt Nam -
Chiến lược marketing của cà phê G7 tại. Studocu. Retrieved December 8, 2023, from
https://www.studocu.com/vn/document/dai-hoc-kinh-te-quoc-dan/marketing-can-ban/bai-
mau-chien-luoc-marketing-cua-ca-phe-g7-tai-viet-nam/36120317
 Trung Nguyên là thương hiệu cà phê được chọn mua nhiều nhất. (2023, August 22).
Tiền Phong. Retrieved December 8, 2023, from https://tienphong.vn/trung-nguyen-la-
thuong-hieu-ca-phe-duoc-chon-mua-nhieu-nhat-post1562131.tpo
 Chủ tịch Tập đoàn Trung Nguyên: Tới một ngày, nói đến cà phê, thế giới sẽ nghĩ tới
Việt Nam. (2023, June 19). Tiền Phong. Retrieved December 8, 2023, from
https://tienphong.vn/chu-tich-tap-doan-trung-nguyen-toi-mot-ngay-noi-den-ca-phe-
the-gioi-se-nghi-toi-viet-nam-post1545919.tpo
 G7 - 19 năm hành trình chinh phục toàn cầu. (2022, November 29). Báo Thanh Niên.
Retrieved December 8, 2023, from https://thanhnien.vn/g7-19-nam-hanh-trinh-chinh-
phuc-toan-cau-1851526453.htm
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 The History of Coffee - Ethiopia or Yemen | NESCAFÉ India. (n.d.). Nescafe.

Retrieved December 8, 2023, from https://www.nescafe.com/in/understanding-
coffee/coffee-history
 Global Coffee Market Size, Share, Trends, and Forecasted Growth for 2023-2030.
(2023, September 2). LinkedIn. Retrieved December 8, 2023, from
https://www.linkedin.com/pulse/global-coffee-market-size-share-trends-forecasted
 Vietnam Coffee Market - Share, Report - Industry Size. (n.d.). Mordor Intelligence.
Retrieved December 8, 2023, from https://www.mordorintelligence.com/industry-
reports/vietnam-coffee-market
 KFC, Highlands and Trung Nguyen the top F&B brands in Vietnam. (2023, July 18).
VnEconomy. Retrieved December 8, 2023, from https://vneconomy.vn/kfc-highlands-
and-trung-nguyen-the-top-fb-brands-in-vietnam.htm
 Chuoi cung ung cua ca phe trung nguyen 6674. (n.d.). Academia.edu.
Retrieved December 4, 2023, from
https://www.academia.edu/19782972/Chuoi_cung_ung_cua_ca_phe_trung_ngu
yen_6674
 Không gian Trung Nguyên E-Coffee. (n.d.). Trung Nguyên Legend. Retrieved
December 4, 2023, from https://trungnguyenlegend.com/trungnguyenecoffee/
 Không gian Trung Nguyên Legend Café. (n.d.). Trung Nguyên Legend.
Retrieved December 4, 2023, from https://trungnguyenlegend.com/khong-gian-
trung-nguyen-legend-cafe/
 Nâng giá trị cà phê Việt (*): Thị trường trong nước đang lên. (2023, March 3).
Báo Người Lao Động. Retrieved December 4, 2023, from
https://nld.com.vn/kinh-te/nang-gia-tri-ca-phe-viet-thi-truong-trong-nuoc-dang-
len-2023030222305758.htm
 Trung Nguyên Legend mở quán cà phê đầu tiên tại Mỹ. (2023, September 30).
VnExpress. Retrieved December 4, 2023, from https://vnexpress.net/trung-
nguyen-legend-mo-quan-ca-phe-dau-tien-tai-my-4658988.html
 Trung Nguyên mở 'siêu thị cà phê' trên Amazon, Alibaba. (2020, June 17).
VnExpress. Retrieved December 4, 2023, from https://vnexpress.net/trung-
nguyen-mo-sieu-thi-ca-phe-tren-amazon-alibaba-4117040.html
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1. INTRODUCTION
1.1 The Company and Mission an Vission
About Trung Nguyên Legend:
- Trung Nguyên Legend is a Vietnamese coffee company founded in 1996 by
Đặng Lê Nguyên Vũ. The company is the largest coffee producer and
distributor in Vietnam, with over 5,000 employees and a network of over
10,000 retail outlets. Trung Nguyên Legend's products are sold in over 60
countries around the world.
- Trung Nguyên Legend played a pivotal role in developing the Vietnamese
coffee market and in promoting Vietnamese coffee culture to the world. The
company is known for its high-quality coffee products, its strong brand image,
and its extensive retail network. Trung Nguyên Legend is also a pioneer in the
production of weasel coffee, a type of coffee that is made from the beans that
have been eaten and partially digested by civets.
- In recent years, Trung Nguyên Legend has expanded its operations into other
markets, including China, the United States, and Europe. The company has also
diversified its product offerings, launching new coffee products and expanding
into other beverage categories. Trung Nguyên Legend is committed to
becoming a global coffee leader and to inspiring the world with the spirit of
Vietnam.
Mission:
“BUILD THE UNIFIED HUMANITY UNDER THE VALUE SYSTEM OF THE

ENLIGHTENED LIFESTYLE FOR SUCCESS AND TRUE HAPPINESS”
This mission statement reflects Trung Nguyen Legend's desire to help build a more
peaceful and cohesive world community. The company's core value is "Absolute
Faith", highlighting the belief in the human ability to transform for good, further
emphasizing this goal.
Vission:
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“THE GREAT ORGANIZATION THROUGH SERVING HUMANITY”
Trung Nguyen Legend's vision statement highlights the organization's goal of

becoming a preeminent entity worldwide. The company believes it can significantly
improve the lives of people around the world by using its products and services to
serve humanity.
1.2. The portfolio of the company (BCG MATRIX, Matrix Arthur D.

Little)
Stars:
Filter coffee: This flagship product holds a dominant position in Vietnam's high-
growth phin coffee segment. Its strong brand recognition and established distribution
network contribute to its market leadership. This is the product that brings in the
highest revenue of Trung Nguyen Legend because it is very suitable for the standards
of coffee users.
Cash Cows:
Instant Coffee: One of the products that made Trung Nguyen Legend's name is instant
coffee. Among them, instant coffee is the most popular not only in the country but
also abroad. With a very characteristic and rich coffee flavor, it shows the differences
of Trung Nguyen Legend coffee. Not only that, instant coffee quickly achieved export
orders to major markets such as the US, Europe, Japan, Hong Kong... becoming a
famous Vietnamese coffee brand in the world. Because this is a long-standing product
and brings stable revenue to Trung Nguyen Legend, it will be a cash cow.
Question Marks:
Ground coffee: With a distinctive flavor and a combination of four types of beans:
Arabica, Robusta, Excelsa, and Catimor in a special blend ratio. With its rich brown
color, aroma, and bold taste, the coffee has a cowboy vibe, both elegant and romantic.
It has won the hearts of many connoisseurs, and it is poised to become a star.
However, if it does not meet the taste of consumers, it will turn into a dog.
Dogs:
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Trung Nguyên Legend's other products, such as tea and bottled beverages, have
limited market share and low growth prospects, is not commonly used in the market,
so this is a dog.
2. EXTERNAL ANALYSIS
2.1 Macro-Environment (Vietnam)
2.1.1 PESTEL
Political:
Favorable: Vietnam is currently a peaceful country without conflict or violence; The

economy is gradually stabilizing after the Covid epidemic and is growing. The
investment environment is increasingly open and more favorable for businesses to
develop. In addition, the government also has policies to support the coffee industry in
many ways such as creating research and development programs, creating conditions,
and subsidizing people. Trung Nguyen Legend has been developing thanks to this
condition. Next, the middle class is increasing, which will come with personal
enjoyment needs such as travel, dining, etc. Finally, policies to increase trade
liberalization and integrate into the global economy.
Unfavorable: Labor issues: Currently, labor laws in Vietnam are very difficult and
strict, which can cause many difficulties in finding and retaining employees. Besides,
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salaries in Vietnam are relatively low compared to other countries in Asia, which will
cause many difficulties in retaining talented employees.
Government policy: Although the government provides a lot of support for the coffee
industry, there are also policies that cause difficulties for this market. Such as
regulations on taxes, import and export, food safety, environmental protection, etc.
Economic:
Favorable: Currently, the global coffee industry is growing at a very fast pace.
Vietnam is one of the emerging markets of this industry and is on a very good
development path: the demand for coffee among young people is increasingly high.
These things will help Trung Nguyen grow more and reach more markets.
Besides, Vietnam's economy is growing and disposable income is increasing. This

will lead to consumers being willing to pay more for coffee products. Trung Nguyen
will become more and more profitable.
Finally, Vietnam is currently a country that many other countries are interested in and
investing in. This can make Trung Nguyen grow stronger and be able to expand and
invest in new technology systems
Unfavorable: Inflation problem in Vietnam: currently inflation is increasing, this can

reduce the purchasing power of consumers, the currency is increasingly devalued,
making imported goods more and more expensive. This will increase funding for
Trung Nguyen Legend
Social:
Favorable: Developing coffee culture: Vietnam is a country with a very long-

standing coffee culture, with average coffee consumption per capita among the top in
the world. This will bring Trung Nguyen a large number of customers.
User preferences: Nowadays, Vietnamese consumers are very focused on product

quality and like high-end products and Trung Nguyen is one of the famous brands
with high quality coffee.
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Health benefits: consumers today are increasingly realizing the benefits that coffee
brings, this can boost Vietnamese demand for coffee and increase Trung Nguyen's
revenue.
Unfavorable: Demographic change: The younger generation today has different

coffee preferences than the older generation. This can create huge challenges for
Trung Nguyen in the process of maintaining market share.
Development of social media: consumers today are very demanding and they are
willing to evaluate products at their discretion on social networking sites. This will
cause challenges for Trung Nguyen in the process of managing and protecting their
brand image
Technological:
Favorable:E-commerce: Currently, e-commerce platforms in Vietnam are very

developed, this will bring many advantages to Trung Nguyen. They can reach more
consumers, increase brand awareness and expand their market share through e-
commerce platforms.
Innovation: Trung Nguyen Legend has been investing in new technologies to research
and develop, creating increasingly better quality products. This includes the
development of new coffee varieties, brewing technologies and unique, novel
packaging designs
Payment methods: Currently, there are many payment methods created to meet
consumer needs. They can easily pay and shop for their own enjoyment needs
Automation: Trung Nguyen Legend has implemented automation processes in many

different aspects of operations, including production, warehousing and logistics. This
helps them improve efficiency, reduce costs and enhance quality control.
Unfavorable: The development of technology: technology is growing and changing

rapidly, this creates a huge challenge that is that they must always change themselves
and innovate to be able to keep up with trends. latest trends and stay competitive in
the market
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2.2. Micro-Environment
2.2.1. Competitors Benchmarking
Our Group will choose 3 competing brands: Nescafe, Vinacafe and Café Pho.
- Vinacafe is the oldest coffee brand in Vietnam, established and operating until
now for 60 years, targeting customers who love coffee in Vietnam.
- Nescafe is arguably the most famous coffee brand in the world. Nescafe is a
popular brand and is aimed at middle-income customers.
- Café Pho is a cheap instant coffee brand, founded in 2003. Café Pho is a pine
brand, aimed at low-income consumers who love cheap coffee.
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Quality: Trung Nguyen Legend is highly appreciated for its quality with a rich,
delicious coffee flavor because the coffee beans are processed through careful and
strict production. Besides, Nescafe is also well appreciated for its quality with
traditional coffee flavor and suitable for the majority of Vietnamese users. Finally,
Café Pho and Vinacafe, although these 2 brands are quite famous in Vietnam, the taste
is considered inferior to the above 2 brands with relatively good quality and meets the
basic needs of consumers.
Price: Trung Nguyen Legend is positioned as a high-end product, so with the highest
rated price is understandable. Nescafe has an average price, suitable for many
customers. Finally, Vinacafe and Café Pho with low average prices, suitable for
middle-income consumers.
Positioning:
- Trung Nguyen Legend intends to be a high-end brand aimed at high-income

consumers.
- Nescafe and Café Pho are designated as popular brands, aimed at middle-
income consumers who love traditional coffee.
- Vinacafe is positioned as a national brand, aimed at consumers who love
Vietnamese coffee.
Packaging: The packaging of Trung Nguyen Legend and Nescafe is highly

appreciated for its luxurious, modern and eye-catching design. For Vinacafe and Café
Pho, the packaging is friendly and convenient for consumers.
Product diversity: Trung Nguyen Legend has the most diverse products with a
variety of instant coffee, roasted coffee and especially creative coffee. Nescafe also
has a variety of products similar to Trung Nguyen Legend but not as much. Vinacafe
and Café Pho have relatively products, mainly instant coffee.
Marketing: All 4 influential brands and marketing strategies develop brands. The
strongest are still 2 brands Trung Nguyen Legend and Nescafe with extremely wide
coverage. Café Pho and Vinacafe are evaluated as relatively effective marketing
strategies and meet the basic needs of consumers
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Global expansion: Trung Nguyen Legend has a good distribution and market
expansion network in some countries with popular coffee markets in the world.
Nescafe also has a good market expansion strategy and good as Trung Nguyen
Legend. Vinacafe and Café Pho are relatively limited in market expansion.
Customer Service: All 4 brands have good customer service, meeting the needs of
customers.
2.2.2. Customer Analysis
Overview:
Trung Nguyen Legend is the leading coffee brand in Vietnam, present in more than 60
countries around the world. It is known for its premium coffee products, unique brand
image and widespread franchise. This report focuses on analyzing Trung Nguyen
Legend's customers, helping us realize insights from many different market reports.
Customer Segmentation:
The target market consists of guys between the ages of 25 and 45 who enjoy
economics and business-related topics. They get particularly enthusiastic about
business narratives and lessons.
Trung Nguyen coffee's target clients fall into two personality types:
- Focused, competent, and in control

- Confident, forceful, and straightforward.
Customer needs and preferences
Trung Nguyen Legend's customers have very diverse needs and interests, including:
- High-quality coffee
- Diverse products
- Convenience and reasonable price
- Brand reputation
Customer behavior
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- Trung Nguyen Legend customers buy coffee from a variety of places, including
supermarkets, convenience stores and online retailers. They also buy coffee
from Trung Nguyen Legend's own coffee shops.
- Trung Nguyen Legend's customers are brand loyal and likely to repurchase
Trung Nguyen Legend coffee. They will also likely recommend Trung Nguyen
Legend coffee to their friends and family.
Customer satisfaction
- Trung Nguyen Legend's customers are mostly satisfied with the company's
products and services. However, there is still some room for improvement in
terms of service.
Recommendations
- Continue to improve coffee quality: find sources of high quality coffee beans
and roast them according to standards.
- Improve customer service: improve customer service: provide more training for
employees and create connections with customers.
- Invest heavily in marketing: Trung Nguyen Legend needs to continue to invest
in marketing to increase brand awareness and attract new customers.
- Expand more product lines: Trung Nguyen Legend should expand its product
line to attract customers because they have more choices.
2.2.3. Porter Forces
2.1.2.1 Impact of the existence of substitutes on prices

Currently, the food and beverage market is very competitive, many other beverage
genres appear on the market and have a strong impact on consumers. Therefore,
consumers are willing to replace other products such as milk tea, energy drinks,
carbonated soft drinks or even fresh water. These substitutes are increasingly putting
pressure on Trung Nguyen's coffee products, especially because the price of their
substitutes is very competitive. On the market today, a cup of coffee in the store or a
package of instant coffee of Trung Nguyen costs about 50,000 VND but for other
substitutes, the price of those products ranges from 20,000 - 30,000 VND, so the price
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competition increases between brands. Trung Nguyen needs to reconsider and come
up with appropriate pricing strategies to be able to maintain and compete in the
market, or they need to prove the difference with respect to their products compared to
substitutes that the money to buy Trung Nguyen's cup of coffee they will exchange for
better value and must be appropriate, justified for the money spent by customers.
Overall, the pact of the existence of substitutes on prices is very high.
2.1.2.2 Impact on achievable structural profitability of clients'

ability to negotiate prices
Trung Nguyen Legend can bring profit to its brand if the price negotiation process
with customers is successful. For the current coffee industry market, fierce
competition on price will highly affect price negotiations with customers. But with
Trung Nguyen Legend, it is different, Trung Nguyen Legend is showing itself as a
high-end brand with coffee quality accompanied by creativity in brewing, creating
perfect products, so they have proven to customers extremely convincingly by the
strength of the product, so customers have very few alternatives and therefore Brands
may have an advantage in negotiating prices. The impact on achievable structural
profits of the customer's ability to negotiate prices is very low.
2.1.2.3 Impact of suppliers' bargaining power

Trung Nguyen Legend is a leading coffee producer in Vietnam, so the raw materials
are produced by the company itself, they have long-term partnerships with
cooperatives, farms and processing plants across the country. Trung Nguyen Legend's
influence on suppliers is huge and will affect the supplier's negotiating power. With a
big brand and a lot of demand from customers, Trung Nguyen Legend is a good
opportunity for suppliers, and at the same time helps Vietnam's agriculture develop
strongly in the coffee growing industry. But not so that Trung Nguyen Legend can be
subjective, the coffee market in Vietnam is very large and there are many different
competitors, brands need to set up a backup strategy to cope with changes by the
impact of competitors, Establish strategic partnerships with several key suppliers to
ensure stability in sourcing and also strengthen their negotiating power.
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2.1.2.4 New entrants Threat

With the market situation of the economy is developing extremely strongly today, a
lot of new competitors will appear. New brands can invest huge amounts of money in
the development process, Trung Nguyen Legend faces that threat from new
competitors in attracting customers. Although Trung Nguyen is at the top of the coffee
market, new competitors will not have much impact on the brand, but not so that
Trung Nguyen Legend ignores, the company needs to focus on improving the quality
of products and services and enhancing brand promotion more to be able to deal with
competitors other new.
2.1.2.5 Impact of Competitors

Competition from rivals can create pressure on prices, product quality, services and
market share of Trung Nguyen Legend in the Vietnamese industry and coffee market.
Especially with the quality of the company's products and services, which are
considered strengths but evaluated as equal or worse than other competitors. This
strongly affects profitability and forces the company to come up with solutions to
overcome and grow, potentially enhancing unique value to retain customers. If
competitors have the opportunity to promote brands and products better, attract more
customers of Trung Nguyen Legend, this has a serious impact on the company's
market share. To cope with the above competition, Trung Nguyen Legend needs to
focus on investing time and money to improve product quality, create more unique
products to make a difference, improve services and enhance brand promotion. In
addition, the company needs to review and evaluate the strategies of competitors in
order to exploit strengths and weaknesses, thereby devising appropriate strategies to
maintain and develop in the market.
2.3 Strategic Environment: Where we are

Coffee consumers are really high; there are many brands of coffee, but Trung Nguyen is at
the top. According to Tien Phong News on August 22, 2023, Kantar announced in June that
customers choose Trung Nguyen to buy coffee the most.
Trung Nguyen is known as a coffee tycoon in Viet Nam; their product has spread throughout
the country till now. Especially when Trung Nguyen opened the coffee shop abroad in more
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than 100 countries such as China, Southeast Asia, Europe, America,... These are all the top
coffee markets in the world.
As Tien Phong News mentioned on June 19, 2023, there is a cup of Trung Nguyen coffee
sold in every 18 cups of coffee. From 2022 until now, 800 million cups of coffee were sold in
China. This is proof of Trung Nguyen Legend's large coffee sales volume. It leads to the
conclusion that Trung Nguyen Legend is in a volume environment because of its large
number of sales.
2.4. Product Life Cycle & History of the Industry and forecast.
Product life cycle
There are four main stages of product life cycle:
Introduction: Trung Nguyen released G7 instant coffee for the first time in 2003. The firm
organized the “G7 Instant Coffee Festival” at the Independence Palace, which attracted
thousands of participants. With a starting point almost from "0": no name, no sales team, no
distribution system, no experience, no abundant financial resources,... but G7 has made it
happen. The "miracle" of winning a foreign brand with a history of more than 100 years in a
blind test, with 89% choosing G7 at the festival.
Growth: G7 coffee has conquered consumers rapidly because of its taste, which combines the
essence of the most delicious Buon Ma Thuot Robusta coffee beans with modern technology
and mysterious Eastern mixing secrets. On November 23, 2017, Trung Nguyen Legend
officially opened a representative office in Shanghai, China, creating rapid development steps
for G& in this billion-dollar market and quickly spreading throughout the world.
Maturity: Trung Nguyen could now be in the maturity stage. It is now widely spread abroad
and has received high evaluations from customers around the world. Up to now, G7 has risen
to the top of the ranking of the most popular and trusted coffee brands in China, as well as
holding a large market share in the online coffee market, with wide coverage across the
supermarket system, shopping malls, convenience store chains, and e-commerce channels in
China. Besides, in Viet Nam, G7 continues to affirm that it is a genuine coffee brand by
getting into the top 3 most chosen instant coffee brands in four key cities and rural areas in
2022 (according to the research unit’s Brand Footprint report of market research unit Kantar).
Decline: Currently, Trung Nguyen coffee is still in the maturity stage. However, the Viet
Nam market still goes up and down, and the price of the supply chain increases day by day,
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so Trung Nguyen needs to have a suitable strategy for the products. The company should
proactively manage and create more marketing strategies to revitalize the product and extend
its life cycle.
History of the industry and forecast
History:
People believed that coffee originated in Ethiopia; it also led people to believe that in the 15 th
century, coffee was moved to the north, crossing the Red Sea to Yemen. Then it was planted
in Yemen, and by the 16th century, it was known in Persia, Egypt, Syria, and Turkey. It
became extremely popular because of its abilities to boost wakefulness and alertness, which
let people spend more time praying about spiritual matters. In 1475, the first coffee shop was
established in Constantinople, which is now Istanbul. In addition to being a daily habit,
drinking coffee at home was also a sign of hospitality to visitors. In addition to drinking
coffee, individuals would go to coffee shops outside of their homes to converse, listen to
music, see performances, play chess, gossip, and catch up on news. Without the
contemporary technologies we take for granted today, coffee shops swiftly evolved into hubs
for communication and information gathering. "Schools of the Wise" was a common moniker
for them.
Forecast:
The coffee market is a dynamic segment of the worldwide beverage industry that includes the
production, processing, distribution, and utilization of coffee beans and associated products.
The diversity of the coffee market is evident in the various regions that create unique profiles
and flavors due to variables such as height, climate, and processing techniques. The market's
significance as a morning ritual, social glue, and economic engine for coffee-producing
countries highlights its cultural and social significance. The coffee market is expected to
increase from its 2020 valuation of USD 104.22 billion to USD 151.92 billion by 2028, with
a compound annual growth rate (CAGR) of 4.5% between 2021 and 2028.
In Viet Nam, the coffee market is predicted to increase at a compound annual growth rate
(CAGR) of 5.70% from USD 490.84 million in 2023 to USD 647.62 million by 2028.
Vietnam's demand for organic food and drink, especially tea and coffee, is rising more
quickly than it used to as a result of shifting lifestyle patterns, rising food and drink prices,
growing awareness of healthy eating, changing meal schedules and eating habits, and the
desire to try new products. Accordingly, Vietnam is maintaining a high level of coffee
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production in line with customer demand, which is anticipated to increase sales in the nation.
Thus, the FAO reports that Vietnam produced the most green coffee in 2021—nearly 1.85
million tons—making it the top producer.
2.5. Key Success Factors - Opportunities and Threats

In 2023, Trung Nguyen is ranked third in the “Decison Lab F&B Rankings 2023," which are
calculated by daily data from Vietnam's YouGov online panel for the company's flagship
YouGov BrandIndex solution. What makes it successful are:
– Quality: Trung Nguyen is well known for providing a wide range of coffee blends
with unique flavor characteristics. The richness, depth, and harmony of flavors are
frequently used to assess the quality of coffee. Different blends can accommodate a
range of tastes. It is important to use coffee beans of a certain quality. Traditionally,
Trung Nguyen has employed a blend from several geographical areas, such as
Excelsa, Robusta, and Arabica beans. The origin and quality of these beans affect the
overall flavor.
– Competitive advantage: Trung Nguyen has a suitable geographical conditions to plant
coffee and develop that market.
– Seize the opportunities: when the coffee market was rising with more competitors,
Trung Nguyen was the first brand to introduce roasting coffee in Vietnam. It is a step
forward for Trung Nguyen to expand its market and hold strong positions in the
market.
– Marketing: Trung Nguyen knows how to use internal potential to make marketing
strategies. The company combined national cultural values and the desire to improve
the quality of Vietnamese coffee. The firm makes an impression on everyone because
marketing campaigns are always community-oriented. From meaningful messages
about each product type to positive social activity programs, Outstanding advertising
campaigns for Trung Nguyen coffee include Trung Nguyen Legend Energy Coffee
Beans, Celebrate Tet Differently: Tet Special, and Trung Nguyen Legend x Vietnam
Airlines.
From these key successes, there are many hidden threats that risk the company. To begin
with, Trung Nguyen has a number of challenges to face in the field of coffee production in
order to uphold quality control throughout its activities. Maintaining uniform quality in
various batches and sources of coffee beans can be an impossible task. Variations in the
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quality of raw materials can have a substantial effect on the delicate taste of Trung Nguyen's
coffee products as well as the general satisfaction of customers. Moreover, Trung Nguyen's
coffee produce are seriously threatened by the constant threats brought on by climate change.
The growth and productivity of coffee beans can be harmed by changes in weather patterns
and unanticipated environmental problems. As Trung Nguyen's ideas succeed, the market for
roasted coffee may become oversaturated. A more competitive environment due to market
saturation may have an effect on profit margins and pricing policies. Additionally, the
effectiveness of Trung Nguyen's marketing tactics may inspire other businesses to take
competitive action. Competitors may reply with similarly appealing marketing strategies,
raising the level of competition for the attention of customers.
However, not only those threats but opportunities are also chances for the firm to develop.
First, with its dedication to quality, Trung Nguyen is well-positioned to carve out a space for
itself as a premium brand within the industry. This drive to excellence has the potential to
attract customers who are looking for the highest-ranking products, allowing Trung Nguyen
to set higher pricing and establish itself as a leader in the premium coffee segment. Moreover,
the company can also use its advantage in the region to create a compelling origin story that
highlights the special and advantageous growing conditions for their coffee. By doing this,
Trung Nguyen can build a relationship with clients by connecting with those who respect the
origin and provenance of their products. Additionally, Trung Nguyen has an enormous
competitive advantage since he was a pioneer in the field of coffee roasting. Due to its
history, the brand is able to create a strong sense of identity for itself as well as stand out in
the marketplace. Trung Nguyen can influence customer perceptions by presenting itself as a
leader in the field and establishing high standards for excellence through skillful storytelling.
By adopting this strategic approach, Trung Nguyen may increase brand loyalty and establish
itself as a reliable and creative member of the coffee industry. Furthermore, Trung Nguyen
has the chance to expand internationally by using a community-focused approach and then
customizing its marketing methods to make them culturally appropriate. Because it appeals to
a wide range of customer bases, this cultural relevance can be a potent strategy for entering
global markets. Trung Nguyen can build a global footprint that embodies its dedication to
quality, innovation, and community values by engaging the community and taking cultural
quirks into consideration. This consequently provides continued growth on a global scale and
opens doors to new prospects.
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3. INTERNAL ANALYSIS: THE COMPANY
3.1 Value Chain
3.1.1. Inbound logistics
Suppliers form an important initial component in every business's supply chain, as

they provide the necessary inputs to the production process, thereby influencing the
quality and price of the product. output product. Trung Nguyen selectively sources its
supply from five distinctive sources, namely Buon Ma Thuot Robusta beans, Jamaican
Arabica beans, coffee originating from the historical birthplace of Ethiopian coffee,
Brazilian coffee, and Colombian coffee.
With a favorable geographical location right in the heart of Vietnamese coffee, Trung
Nguyen enjoys many benefits when buying raw coffee. Trung Nguyen uses two main
forms of purchasing: purchasing through private enterprises and traders and
purchasing directly from farmers. But with the first form of procurement, when the
economy declines and causes many challenges for private businesses and traders, they
default, thereby negatively impacting the supply chain. Due to not meeting the
standards in terms of quantity and quality required, Trung Nguyen has limited its
dependence on this supplier. Instead, the company has found a new path to sourcing
raw materials, including investing in and overseeing coffee farms owned by the
farmers themselves. This strategy integrated the coffee farms as part of the business,
allowing the company more control in sourcing strategic raw materials while fostering
closer relationships between the businesses. and coffee farmers. Trung Nguyen has
revealed that the coffee beans used are purchased from small-scale coffee farmers who
have farming certificates and adhere to sustainable agricultural practices. Furthermore,
the company has obtained these coffees at preferential prices from these farmers.
3.1.2. Operations
The use of super-advanced NANO technology, recognized as the most modern in the
world, this is the first application in Vietnam that allows coffee to be ground to a very
small size and processed at subzero temperatures. Especially when combined with
mysterious Eastern secrets to help create masterpieces of Trung Nguyen Legend
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coffee. Retains 100% of the typical fresh, roasted coffee flavor. The group currently
has 3 factories: 1 coffee factory in Saigon, 2 Trung Nguyen instant coffee factories in
Binh Duong, and Bac Giang.
3.1.3. Outbound logistics
Trung Nguyen is the first enterprise to apply the franchise business model by building
a widespread franchise system domestically and in major markets such as the US,
Japan, Singapore, Thailand, China, Cambodia, Poland, and Ukraine. Since its
inception and development, Trung Nguyen has so far owned about 1,000 franchised
coffee shops. In particular, in 2017, Trung Nguyen Legend officially opened a
representative office in Shanghai (China), and in 2023, it opened a representative
office in Korea. Trung Nguyen E-Coffee, a coffee retail chain belonging to Trung
Nguyen Legend Group, where the quintessence of three coffee civilizations—
Ottoman, Roman, and Zen—converges, was launched in August 2019. Trung Nguyen
E-Coffee is considered an optimal solution for the business community, startups with
coffee, office workers, grocery store owners, traditional coffee shops, students, and
domestic companies. The fields of franchising, cuisine, tourism, transportation, retail,
etc. can all participate in cooperation. The versatility of its design allows for its
implementation in a variety of locations. In addition, Trung Nguyen E-Coffee offers a
very favorable cooperation policy for all partners, including cooperation packages,
training, consulting, and operational support programs.
Regarding traditional distribution channels, Trung Nguyen Coffee mainly focuses its
efforts on popularizing mid-range and mass-market coffee at affordable prices.
Because these items are easily consumed and easily accessible to the vast majority of
patrons, they have attracted immense popularity and won the trust of many consumers.
To facilitate their products' penetration into the consumer market, Trung Nguyen has
linked up with three levels of distribution: wholesalers (including distributors and
networks of both large and small supermarkets), retailers (including local suppliers,
retail establishments, and grocery stores), and ultimately the end user.
Furthermore, Trung Nguyen has also established the Trung Nguyen Legend Café
chain, an ideal meeting place for coffee lovers and enthusiasts. This place offers
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excellent cups of coffee, especially iced milk coffee. Enjoying Legend macrobiotic
loaves of bread made from the purest, most natural ingredients and life-changing
foundational books selected from the quintessence of human knowledge will bring a
unique experience. to consumers. In September 2022, the Trung Nguyen Legend
Coffee World space opened along West Nanjing Road, the city's bustling and
luxurious street, attracting countless global coffee enthusiasts to join in on its services.
On July 25, 2023, Trung Nguyen Legend Coffee World inaugurated its second
location at One East Shopping Center, located at 788 Zhong Shan Nan Yi Road in
Shanghai. After a successful breakthrough in China, Trung Nguyen Legend embarked
on opening a coffee shop in the United States, starting operations on September 29,
2023. According to Trung Nguyen Legend's assertion, promoting coffee Filtered
coffee and iced milk coffee for international customers is one of the brand's efforts to
fulfill its commitment to accompany Buon Ma Thuot city, thereby striving to enhance
the cultural significance of coffee. Vietnam is ranked as an intangible cultural heritage
of humanity recognized by UNESCO.
The prominent trend in recent years has been online business and putting products on
e-commerce sites. Grasping this trend and realizing its ambition to conquer the global
market, Trung Nguyen Legend has cooperated with Amazon and Alibaba, two leading
e-commerce platforms, to establish a "coffee supermarket" on the Internet. Trung
Nguyen is directly responsible for providing all coffee-related products as well as
coffee processing tools for Amazon. Trung Nguyen orders delivered to Amazon will
be processed and expected to be delivered to the warehouse within a three-week
period. Regarding pricing, Amazon will set different prices based on specific regions
and countries. For Alibaba's commerce platform, Trung Nguyen products will
participate in business-to-business (B2B) transactions. Alibaba acts as an
intermediary, facilitating connections between businesses and allowing stakeholders
to independently negotiate their own transactions. After a successful transaction,
Alibaba will present the most profitable shipping and payment methods for both sides
of the operation.
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3.1.4. Marketing and sales
Trung Nguyen prioritizes investing in the quality of their products and services rather
than their marketing efforts. 2018 marked the official launch of the Trung Nguyen
Legend brand, The Energy Coffee—Coffee That Changes Life. Through this
transformation, Trung Nguyen Legend has successfully implemented a comprehensive
overhaul of its products, model, and organization, establishing a new empire guided
by a unique and differentiated strategy.
The franchise system has been enhanced with stricter rules and engagement protocols.
This key element ensures consistency in presentation, service style, recipes, and
pricing, allowing customers from all locations to experience the brand's distinct
identity.
Administrators of distribution channels must consistently provide guidance,

implementation, and monitoring of channel operations. Additionally, effective
management is necessary to maintain consistent quality across all stakeholders and
ensure equitable growth across stores, ultimately benefiting all stakeholders.
3.1.5. Service
The first is the privacy policy. All customer data is processed by the Personal Data
(Privacy) Ordinance in Vietnam. Under no circumstances will Trung Nguyen
participate in the sale, sharing, or use of any personal information provided by
customers for purposes other than product-related communications, reservations, or
invitations to their events. The preservation of customers' data is always guaranteed.
Only authorized employees, representatives, and subcontractors (who have agreed to
maintain the security and confidentiality of data) have access privileges to said
information. Any electronic correspondence and newsletters disseminated from this
platform provide customers with the option not to receive future mailings.
Trung Nguyen always tries to provide outstanding-quality coffee products as well as

the most optimal delivery service with competitive fees for all orders. They support
nationwide delivery with policies such as contacting customers for a maximum of two
deliveries (in case the initial delivery is unsuccessful, a staff member will contact you
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to schedule a second delivery two with customers). After a successful purchase,

customers can verify the status and quantity of items in their order and proceed to
choose from a variety of payment methods, including “Cash on receipt," "Pay via
Momo e-wallet, Zalopay," and "Pay with a bank account." Shipping costs for an
extremely economical purchase only range from 15,000 to 30,000 VND, depending on
the area, and you will receive free shipping for orders over 200,000 VND.
Besides that, there is a warranty and return policy. For food and beverage items,
Trung Nguyen is always committed to ensuring product quality according to
established standards and ensuring food safety by carefully adhering to aspects such as
ingredients and deadlines. use, clearly stated on the packaging. For machinery and
equipment items, they will conduct a thorough inspection and carry out necessary
repairs within the specified warranty period, and customers will not have to bear any
costs related to the warranty within the specified warranty period. The warranty period
is predetermined according to the manufacturer's regulations for machine equipment.
In the case of cups, items, etc., the customer will check the condition of the goods
immediately upon receipt. If the delivered goods have technical errors or are broken,
the customer has the right to return them, and Trung Nguyen will proceed. exchange
for new products for customers.
Finally, there is the return and refund policy. In cases such as: the customer paid but
did not receive the product, or did not receive all the products ordered, or received a
product that is fake or counterfeit, the product is defective or damaged during
transportation before being delivered to the customer. Delivering the wrong product to
the buyer (for example: wrong size, wrong color, etc.); the product the customer
receives is clearly different from the information provided in the product description;
the returned product is not a restricted return product; the company has made an
agreement and agreed to let the customer return the goods. Trung Nguyen will commit
to canceling orders and promptly refunding money to its customers.
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3.2 SCA > SW

3.2.1. SCA
In the current market, Trung Nguyen Legend has chosen to undergo a remarkable
transformation into The Energy Coffee: Coffee That Changes Life, operating under
the strategic framework of "Different, Special, and Unique." The first step in this
transition, as outlined in the Heart Brief by Trung Nguyen Legend, involves the
introduction of three series of instant roasted energy coffee products: Trung Nguyen
Legend iced milk coffee, Edition, especially Trung Nguyen Legend, and Trung
Nguyen Legend Classic. In creating these three separate energy coffee products,
reputable coffee experts with more than 15 years of experience have researched and
combined the essence of Robusta coffee and Arabica coffee from Buon Ma Thuot and
Cau Dat. (Vietnam), Jamaica, Brazil, Colombia, etc. Furthermore, Trung Nguyen
Legend has significantly differentiated itself from previous products, brands, and
competitors by moving away from the usual red-black color scheme and familiar
coffee cup image. Instead, black and white are used, combined with images of
influential figures from around the world and inspirational quotes related to the pursuit
of success. Product packaging uses modern printing techniques, resulting in a striking
visual presence when displayed on supermarket counters and shelves. Notably, Trung
Nguyen Legend has also ventured into the field of capsule coffee products, offering
three flavors: Roman, Ottoman, and Zen. While this product line is popular
worldwide, Trung Nguyen Legend stands out by using eco-friendly and biodegradable
organic capsule shells, a concept that has yet to be adopted by capsule companies.
large adoption due to profit concerns.
3.2.3. SW
In addition to sustainable competitive advantages, Trung Nguyen has significant

advantages in coffee production because Vietnam is the world's largest coffee
exporter. The company sources its coffee beans from four regions known for high-
quality coffee: Robusta beans from Buon Ma Thuot, Arabica beans from Jamaica,
coffee from coffee's original homeland, Ethiopia, and Brazil. Trung Nguyen benefits
from its location in Vietnam's coffee capital, allowing it to easily purchase coffee
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beans through private businesses, traders, and direct purchases from farmers. Trung
Nguyen has invested in and directly managed coffee farms to ensure a stable supply of
high-quality coffee beans, establishing strong relationships with coffee farmers.
Trung Nguyen's coffee products are highly appreciated by consumers, especially the
G7 brand, known for its high quality and unique flavor. G7 has become an iconic
coffee brand in Vietnam, with a presence in over 80 countries and territories, and is
continuously ranked as a favorite brand in many markets. The G7 has achieved rapid
growth in online channels in countries such as South Korea, the United States, Japan,
and Russia. In China, G7 has experienced rapid growth and is the country's most
popular instant coffee brand, with a strong market share. G7 is widely available on
global e-commerce platforms such as Amazon and Alibaba and popular Chinese
platforms such as Taobao, Tmall, Yihaodian, and JD.com. G7 has received many
awards and recognition in the Chinese market, including five awards for innovation
and marketing in 2019. In Vietnam, G7 is among the top 3 most purchased instant
coffee brands in big cities and rural areas.
Trung Nguyen has a wide distribution network with more than 1,000 stores
nationwide and is the first company to apply the franchise business model, bringing a
unique coffee culture experience with Vietnamese characteristics. Trung Nguyen's
franchise locations aim to bring customers delicious and traditional Vietnamese
coffee. Trung Nguyen introduced a new coffee concept at Changi Airport in
Singapore, leading to the creation of more franchise locations. The franchise locations
are creatively designed to provide a comfortable and uplifting experience for coffee
lovers, promoting a positive and fun atmosphere for people from all walks of life.
festival.
Trung Nguyen has a strong presence in more than 60 countries, including the US,
ASEAN, Japan, Canada, Singapore, and China, and Trung Nguyen coffee products are
widely sold in supermarkets and stores. In the US, Germany, Eastern Europe, France,
and Russia, this is a significant strength in their SWOT analysis. In addition, they
have successfully grown and exported premium and rare coffee, such as civet coffee,
to developed countries.
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Besides, there are also many weaknesses, such as the constant change of signage
systems, colors, designs, and packaging, which causes many forms of identification to
flood the market, making it difficult for customers to distinguish between each other.
is Trung Nguyen real or fake, which is the Trung Nguyen franchise? The continuous
turnover of personnel gradually erodes stability and trust within Trung Nguyen,
affecting employee morale. Trung Nguyen Group is burdened by too many projects
and ambitions to pursue at the same time, subject to the dispersion of resources,
whether material, human, or other. Therefore, Trung Nguyen Coffee Joint Stock
Company is not specifically focused on investing in consolidating and expanding
business activities. This is also a flaw that needs attention.
4. SWOT
4.1. Strengths
Trung Nguyen benefits from its position in Vietnam, the world's largest coffee
exporter, allowing Trung Nguyen to easily supply high-quality coffee beans. The
company has invested in and directly managed coffee farms to ensure a stable supply
of high-quality coffee beans. Trung Nguyen's coffee products, especially the G7
brand, are highly appreciated by consumers in Vietnam and internationally. The G7
has achieved rapid growth in online channels in countries such as South Korea, the
United States, Japan, and Russia.
Trung Nguyen has a wide distribution network with more than 1,000 stores
nationwide and is the first company to apply the franchise business model in Vietnam.
The company has a strong presence in more than 60 countries, including the US,
ASEAN, Japan, Canada, Singapore, and China, and its coffee products are widely sold
in supermarkets and stores. in the US, Germany, Eastern Europe, France, and Russia.
Trung Nguyen has successfully developed and exported high-end and rare coffee,
such as civet coffee, to developed countries.
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4.2. Weaknesses
Trung Nguyen faces challenges in maintaining its brand identity due to constant
changes in signage, colors, design, and packaging, leading to confusion among
customers.
The constant turnover of personnel affects stability and morale within Trung Nguyen,
while the company's many projects and ambitions lead to resource dispersion,
hindering focused investment in business operations.
4.3. Opportunities
Trung Nguyen has the opportunity to establish itself as a premium brand in the market
by utilizing its dedication to quality. This may lead to more discriminating clients and
higher prices.
Trung Nguyen is able to convey a compelling origin story by making use of its
regional advantage. By highlighting the special growing conditions for coffee, a brand
can attract customers who appreciate the provenance of their goods and increase their
authenticity.
Trung Nguyen was a pioneer in the field when it came to roasting coffee. This offers
the chance to create a strong brand identity, influence consumer attitudes, and set
standards in the marketplace.
Trung Nguyen may look at chances for international growth by utilizing the
achievements of community-oriented marketing. Modifying the approach to make it
more culturally relevant could lead to the opening of new markets.
4.4. Threats
Trung Nguyen might be difficult to maintain consistent quality across various coffee
bean batches and sources. Variations in the quality of raw materials might affect
consumers' overall satisfaction and flavor.
Moreover, the climate change can potentially threaten coffee plantations through
altered weather patterns or unanticipated environmental difficulties. To ensure an
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ongoing supply of premium coffee beans, Trung Nguyen has to keep an eye on and
reduce these risks.
As a result of Trung Nguyen's strategy's success, the market for coffee roasting may
become saturated. Pricing and profit margins may be impacted by this increased
competition.
In additionally, rivals may react with similarly attractive advertising strategies of

Trung Nguyen, raising the competition for consumers' attention. This might decrease
the effect of Trung Nguyen's advertising campaigns.
5. Segmeting – Targeting – Positioning

5.1. Segmenting Vietnamese Market
5.1.1 Coffee market segmentation according to basic needs (Level 1)
- High-end Coffee segment: this is a coffee product produced from high-quality

coffee beans, harvested and strictly inspected, so it also comes with high prices.
For example, the product line, Legend Coffee (weasel coffee), Trung Nguyen's
8 creative coffee, and Cau Dat Coffee, etc are all aimed at the luxury segment
market, so the price and quality Quality is of course superior to the other two
segments.
- Mid-range Coffee segment: is a coffee product made from good quality coffee
beans, harvested, inspected and processed according to standard procedures
and priced at a mid-range level aimed at middle-class customers. save. Some
products include roasted ground coffee from brands such as Trung Nguyen
Legend, Phuc Long, Highlands coffee, etc
- Regular coffee segment: is a coffee product made from quite good quality
coffee beans and processed through a regular process, so the price for this
product is low. can be suitable for almost all consumers. Examples include
instant coffee products and canned coffee.
5.1.2 Coffee market segmentation (Level 2)
Segmenting the coffee market by demographics:
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For a long time, coffee has become a familiar drink for Vietnamese people and has
unconsciously become an indispensable drink for everyone.
- By gender:
+ Men: coffee is one of the drinks that shows their manliness. Men tend to
consume more coffee than women. They can say that they can drink it
every day and often enjoy strong coffee with high caffeine content.
+ Women: compared to men, women often drink less coffee and will
enjoy mild coffee with low caffeine content.
- By age: The age group for coffee consumption is usually from 18 to 55 years
old. However, the age group from 25 to 35 years old is the group of consumers
with the highest demand for coffee consumption.
- By profession: Coffee is a drink that is mostly suitable for all types of
professions, including students. So anyone who wants to enjoy a delicious cup
of coffee can drink it.
- According to income: this is one of the important factors leading to the
decision to enjoy a cup of coffee. People with high incomes are certainly
willing to pay for a delicious, expensive cup of coffee. On the contrary, even if
people have a low income, they can still choose to drink a more basic cup of
coffee or they may not drink it depending on whether they want it or not.
However, a cup of coffee will now cost around 20,000 VND or more, which is
not an expensive price and does not require consumers to have a high income
to enjoy it.
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With the wide variety of prices paid for a cup of coffee, it shows that today's
consumers are more liberal in paying for a cup of coffee, which is extremely
high. Therefore, income is no longer a reason for concern but now depends
only on the needs and preferences of consumers.
Segmenting the coffee market by geographics location:
- The North: from ancient times to the present, the North is one of the places
with the oldest coffee-drinking tradition. In the North, typically Hanoi, the
culture of people in the old town here uses Robusta coffee, which is a popular
type to use to make concentrated black coffee brewed with a filter, brown
coffee, etc. They often enjoy coffee in the morning to start the day full of
energy or in the afternoon for a relaxing feeling.
- Central region: is the place where coffee-drinking culture intersects between
the North and the South. Here you can easily find many different types of
coffee, some people like to drink filter coffee and some people like to drink
instant coffee. From there, creating a very diverse color for this place.
- The South: is one of the regions with a high population density, a bustling and
hurried place. In addition to typical coffee-drinking cultures such as black
coffee, iced milk coffee, etc., instant coffee is also one of the favourite drinks
of the people here because of their modern lifestyle and convenience. profit.
- Besides, according to a statistic showing that: "Hanoi consumes coffee mainly
in winter (31%) and on Tet holidays (62%), while Ho Chi Minh City consumes
mainly on Tet holidays. accounts for (84%), but most of them do not consume
seasonal differences and drink almost all year round (16%).”
Segmenting the coffee market by psychographics:
This is a subjective segment because two customers assume the same demographic
information but have different buying behaviours and choices. However, research on
customer psychology is all prediction and it is based on general psychology surveys so
it still has a fairly high accuracy basis.
- Uses:
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+ Enjoy coffee in the morning: to start a new day full of energy, coffee is
one of the great choices to achieve consumers' psychological goals,
helping them stay alert and focused.
+ Relax and reduce stress: drinking coffee also helps the drinker relieve
feelings of fatigue and anxiety because coffee contains serotonin, which
helps relieve stress, bringing more positive energy and relaxation.
+ Express yourself: coffee is a drink that helps users express themselves,
their style and their personality.
- Desired benefits:
+ The psychology of customers when using a cup of coffee is to always
enjoy the delicious flavour as well as high quality to be able to fully
enjoy a cup of coffee.
+ Convenience: development is increasing, and along with that the
busyness of many people is also increasing. So convenience is also one
of their top priorities. For example, enjoy a cup of instant coffee that still
has a delicious taste or a can of coffee instead of having to wait for a cup
of coffee to brew.
+ Health: in addition to drinking coffee just to enjoy it, more and more
people drink coffee today to bring health benefits such as good for the
liver, and preventing cancer, etc
- Value: the value that coffee brings to consumers is extremely numerous such
as:
+ It is an essential drink in daily life.
+ It is a drink that brings pleasure through the way it is mixed and used.
+ As a lifestyle symbol that helps express personality, lifestyle, etc
Segmenting the coffee market by behavioral:
- The coffee consumption habits of Vietnamese people are researched and

statistics are as follows: "65% of consumers who use Vietnamese coffee drink
coffee 7 times a week. Leaning towards men (59%). Regarding instant coffee,
(21%) consumers use instant coffee 3 to 4 times/week. Leaning towards female
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consumers (52%). The rate of using coffee at home and outside is equal to
49%/50%. The most popular time to drink coffee is from 7-8 am.”
- In the household: coffee will be purchased in the family to serve when you
want to use such as roasted and ground coffee, instant coffee, canned coffee,
etc for convenience, no need to go to the shop.
- Outside of households: one of the benefits of companies and businesses is that
they buy coffee for their employees to serve their daily needs.
- In addition, on special occasions such as holidays and Tet, consumers in
Vietnam often buy coffee to give as gifts to loved ones.
5.2. Targeting or Selecting our Best Segment of the market or all
Because the goal our group is aiming for is the G7 coffee segment in particular and
instant coffee in general. So we have targeted and selected the best market segment as
follows:
G7 Coffee is Trung Nguyen Legend's instant coffee product line and our team has
chosen this brand to be classified in the regular coffee segment. For the following
reasons:
About need
- Price: G7 is a product that is considered to have high quality and unique flavor,
but G7 only has an average price and can be said to be cheap compared to
regular coffees. Showing the price of instant coffee is one of the biggest plus
points for the majority of consumers.
- Convenience: the product is easy to prepare quickly, no need to use a coffee
maker. This is very convenient and helps save time for people who are busy or
do not have time to make filter coffee traditionally. Also very suitable for
traveling, not bulky. Not only that, you can buy G7 anywhere such as at Trung
Nguyen E-Coffee stores nationwide, supermarkets, convenience stores and
even on commercial floors electronics.
38
- Easy to preserve: compared to other types of coffee, instant coffee is generally

easy to preserve and has a long shelf life without deterioration, helping
consumers feel secure in using it without worrying about quality.
About demographics
- By gender: Trung Nguyen Legend knows how to please its customers by

launching many products suitable for both men and women.
+ Men: most of the target customers are men with G7 product lines such
as "G7 black instant coffee", "G7 2in1 coffee", "G7 instant coffee strong
taste G7 3in1" coffee, etc are all suitable for men's taste, providing rich
coffee flavor, strong coffee quality, and unique seductive aroma that no
other instant coffee product can achieve.
- Women: in addition to G7, Trung Nguyen Legend also launched the coffee
product line "Legend Passiona" specifically for women.
- By age: Trung Nguyen Legend aims to serve the target group of young to
middle-aged people from 25-45 years old. As mentioned above, the group of
people aged 25-35 years old has the highest demand for coffee, including
roasted and ground coffee and instant coffee.
- By occupation: customers are mainly office workers, businessmen, middle and
senior managers are the majority.
- According to income: people with average to high-income levels and especially
those who have the habit of using coffee regularly.
About geographics
Trung Nguyen Legend Coffee is mostly concentrated in urban areas and cities with
dense populations such as Ho Chi Minh City, Hanoi, Hai Phong, and Da Nang. In
Trung Nguyen's most important market Legend that is Ho Chi Minh City and Hanoi.
This market segmentation represents the overall view of Trung Nguyen's market, and
is a step in determining the market segment quite accurately, bringing the brand and
position to where it is today.
About psychographics
39
The target customers are people who are confident, assertive, and especially capable
and in control of their lives and work.
About behavioral
- Lifestyle behaviour: target customers are people who are always exploring,
learning, and discovering new knowledge and experiences related to the topic
of business and entrepreneurship.
- Usage behaviour: according to a survey conducted on 700 people in 5 major
cities, the survey found that: "They often use G7 3in1 instant coffee often most
often today with a frequency of at least 3 times/week. Of these, men account
for 40% and the remaining 60% are women; 40% are 18-24 years old and 60%
are 25-35 years old; have average income or higher.”
5.3. Positioning  Create a SCA
Positioning
To position the G7 instant coffee brand in particular and Trung Nguyen Legend in
general, our team created 1 consumer survey including 4 instant coffee brands
including Trung Nguyen Legend, Vinacafe, Nescafe and Cafe Street. Evaluate the
factors of price, popularity, satisfaction, packaging design and quality, taste and
finally product diversity of the brands mentioned above.
From the survey, we collected 51 samples from December 7, 2023, to December 8,

2023. Here are the results of the survey, our team will use the price factor as a
benchmark to compare with other factors.
40
41
42
Perceptual map
First of all, we will comment on the price factor of Trung Nguyen Legend. Although
the G7 instant coffee brand is said to be a brand with a lower price than other coffees
of the same brand. In general, compared to other instant coffee brands, Trung Nguyen
Legend leads with high prices evaluated by consumers through surveys. However, this
higher price of the G7 will come with additional features and value that will give
consumers the most benefits.
● Price vs popularity
From the perceptual map, Trung Nguyen Legend reaches the leading position in both
price and brand popularity. Despite the high price, Trung Nguyen's popularity is still
very popular among consumers. Next is Nescafe, Vinacafe and finally Cafe Pho.
● Price vs satisfaction
43
Similar to the above, the price compared to brand satisfaction of Trung Nguyen still
ranks first compared to the other 3 brands.
● Price vs packaging
Similar to the above 2 perceptual maps, Trung Nguyen still excellently leads due to
the number of votes from consumer surveyors on eye-catching and beautiful
packaging. In addition, there is also a change in the position of the Cafe Pho brand,
44
compared to Vinacafe, consumers have voted for Cafe Pho which is more eye-
catching and preferred in this brand.
● Price vs taste
We can see that the Nescafe brand is leading in taste quality because of its rich,
moderately delicious coffee flavor that matches the taste of the surveyors. Trung
Nguyen Legend is also not a lightweight competitor with the taste is also rated on par
with its rival Nescafe. The two brands Vinacafe and Café Pho are rated lower in terms
of quality and taste but compensate for the low price, suitable for the income of many
people.
● Price vs product diversity
45
In terms of product diversity, perhaps Trung Nguyen Legend must cede this
leadership to Nescafe because Nescafe's instant coffee line was launched to serve
more customer needs than Trung Nguyen. Then came Vinacafe, occupying the 3rd
position in terms of diversity after Trung Nguyen. And at the bottom is Cafe Pho.
Create a competitive advantage (SCA) for Trung Nguyen Legend
From the above positioning factors of price, popularity, satisfaction, product

packaging design, taste and product diversity from consumers, it also shows that G7
has always positioned itself as "the No.1 instant coffee brand in Vietnam". That is
expressed through two main factors, cost leadership and differentiation.
First of all, about "cost leadership", it can be said that cost leadership is not the main
competitive advantage that Trung Nguyen Legend aims for. The reason is that as
mentioned above, compared to 3 other brands in the same industry, the price that G7
brings is higher. It is impossible to attract consumers through low prices, but it is
worth mentioning here, that although located in the high-price segment, the G7 is
always chosen and trusted by many people because the quality is difficult for any
brand to match. Here are some potentials for Trung Nguyen Legend to achieve
competitive prices compared to other brands including:
46
- Apply flexible pricing policies to attract consumers and the purpose is to

increase the competitiveness of the brand. Prices will change in correlation
with market fluctuations, consumer trends, and the future movement of
competitors.
- The G7 needs to focus on the bright spot which is the difference in quality and
benefits of instant coffee products so that consumers will accept price changes
instead of racing lower prices compared to other competitors.
Next is about "differentiation", when it comes to differences, Trung Nguyen cannot
help but be proud that they always want to bring consumers with the concept of
"always leading to be different". Back on 23/11/2003, Trung Nguyen launched G7
instant coffee, which caused a stir in the domestic and foreign coffee markets. And it
is G7 that is one of the first and only Vietnamese coffee brands that dares to directly
challenge foreign brands. The "blind test" at the Reunification Palace stated that "up to
89% of users love it, Trung Nguyen's G7 has made its mark on the map of instant
coffee market share in the domestic market". The success of the G7 is based not only
on the quality of its products but also on its distinctive "differentiation" positioning
strategy. Although the aspiration to develop the brand reaches the global brand level,
G7 still retains its Vietnamese cultural identity, asserting itself as "real coffee" and in
line with its goal of "serving the community". Thanks to the creativity and special
charisma of the G7, foreign brands have abandoned the pride of the giant, must
change to suit Vietnamese tastes and apply "localization" strategies to compete.
6. Marketing Mix Strategies
Marketing Mix Strategies is one of the very effective tools to orient businesses and
help businesses achieve their desired goals. This strategy has been applied by Trung
Nguyen Legend and has been very successful. Trung Nguyen Legend has become one
of the largest enterprises and leaders in the current coffee market in Vietnam, giving
users the best taste quality experience. Let's discuss the current marketing mix
strategies for Trung Nguyên Legend in Vietnam:
47
6.1. Which Strategies the Company is following now in Vietnam
 Product:
Trung Nguyen Legend is known for a lot of coffee products ranging from pure bean
coffee, roasted coffee and especially instant coffee. In 2003, the G7 coffee brand was
born and marked the "coffee revolution of Vietnam". According to the BrandsVietnam
article, when the G7 product was just launched, a small brand like Trung Nguyen
dared to compare the product with one of the current coffee giants at that time, Nestle.
But the results came out very surprising when only 2 months after launch, the G7 has
captured 35% market share. As of early 2005, it shows the outstanding success of
Trung Nguyen when "The cake of the instant coffee market has been divided quite
spectacularly. Nescafé's market share is only 44.05%, Vinacafé is 28.95% and G7 has
21.8%.". This is a great success for Trung Nguyen Legend, as the product has just
been released to the market that has been able to have a strong impact and scare big
brands.
Up to now, Product plays an extremely important role in the development career of

Trung Nguyen Legend. Therefore, they decided to invest a lot of money and effort
into research to be able to develop products, ensure their products always meet
consumer needs and provide a special experience of coffee taste. Through many times
of research, Trung Nguyen Legend has expanded its products to include creating more
types of roasted coffee mixed together, coffee capsule, Drip back coffee ... Because
the Vietnamese coffee consumer market loves to use coffee with a rich and delicious
flavor, Trung Nguyen Legend's filtered coffee products are highly appreciated by
customers and become a best-selling product of Trung Nguyen Legend. In addition,
the brand offers other by-products such as sugar, milk, and filter coffee sets.
Because of his efforts in market research as well as his coffee products, Trung Nguyen
has affirmed its leading position in the Vietnamese coffee market, beating previous
big brands. Trung Nguyen Legend's products always meet the needs of customers,
accompanied by high product quality and diversity. Trung Nguyen Legend product
line is designed with luxurious, modern packaging, showing class and sophistication.
The products are carefully packaged, ensuring the best quality of preserved coffee. In
48
the future, Trung Nguyen Legend will continue to research and develop products, to
bring a great coffee experience to customers.
 Price
Price is an important factor that helps the company position its brand and compete
with other competitors in the market. Trung Nguyen Legend's current pricing strategy,
although it is a high-end product brand, Trung Nguyen Legend has built a flexible and
diversified pricing system for all types of coffee products. This brand offers a variety
of pricing options to meet the diverse needs of consumers. With such a pricing
strategy, Trung Nguyen Legend creates flexibility in meeting the needs of the market
and optimizing sales. Trung Nguyen Legend always knows how to balance between
price and product quality. The brand not only focuses on providing premium, quality
products, but they also ensure that prices are also reasonable, in line with product
quality and customer affordability. This helps Trung Nguyen Legend build a strong
image with a high level of prestige, gain the trust of customers.
 Place
Currently, Trung Nguyen Legend has an extremely large distribution channel, using
multiple distribution channels including agents, grocery supermarkets, convenience
stores, cafes, hotel restaurants and online sales objects. This helps Trung Nguyen
Legend easily reach many different customers. As for the communication distribution
channel, they usually distribute mid-range and mass products at moderate prices,
suitable for many people and easily accessible. Trung Nguyen Legend also distributes
products through modern online channels such as websites, social networks, e-
commerce platforms to enhance potential customers, catch up with the times and
create convenient and fast shopping opportunities for customers. In addition, they also
apply the franchise system and the brand has been widely available from domestic to
international, with rich and creative delicious taste from Trung Nguyen Legend's
products, the brand is easily accessible and has become popular in many big countries,
especially with fastidious markets like Japan. Although the distribution channel is
49
very large on globally, but Trung Nguyen Legend still controls the quality and image
of brand products, ensuring their unity.
 Promotion
Trung Nguyen Legend uses a lot of multimedia tools to be able to promote its
products to consumers such as television, newspapers, social networks ... Most
recently, the campaign "Energy Coffee – Coffee Changes Life" has left a deep
impression on consumers by its extremely deep and interesting tagline. These
advertising campaigns not only emphasize the quality and taste of the product, but
they also convey the message of the spiritual values, life philosophy and mission of
Trung Nguyen Legend.
The brand also focuses on participating in domestic and foreign organizational

activities such as events and promotional activities such as exhibitions, customer
meetings, or cultural exchange programs. This helps Trung Nguyen Legend create a
good connection with customers and create closeness, Brand-friendly. Besides, the
brand also knows how to satisfy and thank customers when Trung Nguyen Legend
regularly applies promotions, discounts and accompanying gifts to stimulate
customers' shopping needs. This helps the brand generate excitement and create a
positive effect in increasing sales.
6.2. 5 proposals to add
 Enhance customer experience: Currently, Trung Nguyen Legend's product

quality has met the maximum requirements and is suitable for customers, besides the
café space is an important factor contributing to the perfect experience when
combining taste and space, bring fun to customers. Trung Nguyen Legend needs to
create a comfortable, relaxing and suitable space for everyone, decorate the café in
accordance with each advertising theme that the brand has set, turn the café space
into an art exhibition museum where customers can experience from sight to taste.
Besides, providing basic services such as power sockets, wifi ... is a necessity.
Training knowledge for employees about products, communication skills, customer
50
consulting. Trung Nguyen Legend can organize workshops for all types of customers
to admire and experience the process of creating the perfect coffee taste.
 E-commerce development: Trung Nguyen Legend can enhance e-commerce
development by improving its online sales website, cooperating with major e-
commerce platforms, and launching promotions exclusively for online customers.
 Market expansion: Trung Nguyen Legend can expand the market with
abundant and quality supply. With the climate and abundant natural resources in
Vietnam, they can grow coffee trees and produce quality coffee beans that no other
country has, from which they can export their products to other countries, especially
for countries with developed and long-term coffee cultures.
 Sustainable development: Trung Nguyen Legend can use its own coffee
sources or other quality farms to ensure stable supply but also help build a positive
image. Strengthen cooperation with localities to develop long-term coffee cultivation
models, encourage farmers to use reasonable growing practices, avoid using drugs or
chemicals on crops, affecting products. Apply biological plant protection measures,
ensuring safety for plants as well as finished products.
 Actively participate in social activities: Trung Nguyen Legend can continue to
actively participate in social activities to enhance the brand image and show
corporate social responsibility. It is possible to apply measures to protect the
environment, minimize impacts on the environment, increase the use of clean and
renewable energy sources, invent products to replace plastic with coffee grounds.
Participate in volunteer activities to make a good impression on the eyes of
consumers.
51

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BỘ GIÁO DỤC ĐÀO TẠO

ĐẠI HỌC HOA SEN

Lecturer: Jorge Martínez

Full name ID % Complete

Lã Nguyễn Triều Tân 22102423 100%

Nguyễn Thị Mỹ Anh 22110607 100%

Mai Đào Tuyết Trâm 22104397 100%

Phạm Ngọc Thiên Trang 22117394 100%

Nguyễn Bảo Toàn 22106381 100%

Number Name ID Final Homework Evaluate

+ Segmenting Vietnamese Market

To successfully complete the report on "Marketing Strategy of Trung Nguyen

Thank you very much!

3. INTERNAL ANALYSIS: THE COMPANY..........................................................25

5. Segmeting – Targeting – Positioning.......................................................................34

5.1. Segmenting Vietnamese Market........................................................................34

6. Marketing Mix Strategies.........................................................................................46

 The History of Coffee - Ethiopia or Yemen | NESCAFÉ India. (n.d.). Nescafe.

“BUILD THE UNIFIED HUMANITY UNDER THE VALUE SYSTEM OF THE

“THE GREAT ORGANIZATION THROUGH SERVING HUMANITY”

Trung Nguyen Legend's vision statement highlights the organization's goal of

1.2. The portfolio of the company (BCG MATRIX, Matrix Arthur D.

Favorable: Vietnam is currently a peaceful country without conflict or violence; The

Besides, Vietnam's economy is growing and disposable income is increasing. This

Unfavorable: Inflation problem in Vietnam: currently inflation is increasing, this can

Favorable: Developing coffee culture: Vietnam is a country with a very long-

User preferences: Nowadays, Vietnamese consumers are very focused on product

Unfavorable: Demographic change: The younger generation today has different

Favorable:E-commerce: Currently, e-commerce platforms in Vietnam are very

Automation: Trung Nguyen Legend has implemented automation processes in many

Unfavorable: The development of technology: technology is growing and changing

- Trung Nguyen Legend intends to be a high-end brand aimed at high-income

Packaging: The packaging of Trung Nguyen Legend and Nescafe is highly

2.2.2. Customer Analysis

- Focused, competent, and in control

Customer needs and preferences

2.2.3. Porter Forces

2.1.2.1 Impact of the existence of substitutes on prices

2.1.2.2 Impact on achievable structural profitability of clients'

2.1.2.3 Impact of suppliers' bargaining power

2.1.2.4 New entrants Threat

2.1.2.5 Impact of Competitors

2.3 Strategic Environment: Where we are

There are four main stages of product life cycle:

History of the industry and forecast

2.5. Key Success Factors - Opportunities and Threats

3. INTERNAL ANALYSIS: THE COMPANY

3.1 Value Chain

3.1.1. Inbound logistics

Suppliers form an important initial component in every business's supply chain, as

3.1.3. Outbound logistics

3.1.4. Marketing and sales

Administrators of distribution channels must consistently provide guidance,

Trung Nguyen always tries to provide outstanding-quality coffee products as well as

to schedule a second delivery two with customers). After a successful purchase,

3.2 SCA > SW

In addition to sustainable competitive advantages, Trung Nguyen has significant

In additionally, rivals may react with similarly attractive advertising strategies of