The Coffee House entered the

F&B market in Vietnam quite

late, it seemed that this brand
would be swallowed up by other
famous coffee brands. However,
thanks to the right Customer
Insight strategy and
understanding of the Vietnamese
domestic market, The Coffee
House has taken the right steps
to focus on customers, helping
this brand quickly become one of
the chains, the fastest growing
coffee brand in the market today.

Realizing the change in the way

Vietnamese people enjoy coffee:
going to drink coffee is not only
to enjoy coffee, but also to meet
and chat with friends, enjoy the
spatial experience, since then.
The Coffee House has chosen
"quality of service" as its
differentiator.

Target customers of The Coffee

House are
a combination of Highlands
Coffee and Starbucks.
Accordingly. The Coffee House's
target customers focus on mid-
range students and employees.
They go to coffee not only to talk
but also exchange, network,
looking for a large, quiet,
comfortable space to study, work
and create. They love to
experience luxury cafes at
localized prices.

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2.3. Suppliers

According to The Coffee House,

the company bought the coffee
department of Cau Dat Farm
company in Da Lat. Accordingly,
The Coffee House will own a
coffee farm at Cau Dat and The
Coffee House will officially
become one of the first coffee
chains to operate a private
coffee farm.

At the coffee farm in Cau Dat,

mainly Arabica coffee beans. It is
known that the farm transferred
to The Coffee House has an area
of about 33 hectares, fresh
coffee output reaches about 200
tons per year. Production in 2019
reached nearly 400 tons. Arabica
beans come from The Coffee
House farm in Cau Dat, the soil
to grow the best Arabica coffee
heans in Vietnam. Arabica coffee
is prepared wet, distilled with the
flavor of ripe fruit. pleasantly
sour, with a hint of caramel and
chocolate with a long lasting
sweet finish.
In addition, The Coffee House's
Robusta beans are selected from
the most prestigious Robusta
suppliers in Vietnam from the
Central Highlands (Dak Lak, Gia
Lai, Lam Dong). Besides, The
Coffee House
has been and is one of the
typical partners of DPPLAM
Quang Dai. DPP Lam Quang Dai
is currently a supplier of ceiling-
mounted and wall-mounted air-
conditioning units for stores at
The Coffe House.
Until now. The Coffee House has
always used its own delivery
service. The Coffee House also
operates its own delivery team
from the switchboard staff to the
forwarder, specifically
implementing delivery services in
the city through the website
thecoffeehouse.com and the
phone application The Coffee.
House. Up to now, The Coffee
House has cooperated with a
number of food delivery service
providers such as Lala,
Ahamove, Shopee Food,... and
in the recent months

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of 2021, we have seen a number

of
products appear. of The Coffe
House on Beamin, but the
number is not much.

2.4. Human resources

The supply in the current labor

market is quite plentiful.
Especially for the F&B industry,
the demand for young people,
especially students wishing to
find jobs is huge, the number of
job applications is on the rise
(now doubling, creating a market.
fierce job competition). The
number of students today is
increasing significantly, so this is
the source of selecting the least
expensive. candidate, but in
contrast, the recruitment
efficiency is not high due to the
lack of knowledge and
experience to work immediately,
spend the cost of retraining and
adding more urgent professional
skills. According to a
representative of The Coffee
House,
currently The Coffee House has
a chain of 180 stores and more
than 2,500 employees. "People-
centered" and "Leaders
accompany employees are some
special points in The Coffee
House's human resources
manager.

2.5. Competitors

The market is almost saturated

with a large share of the market
share for many big brands such
as Nest Coffee (Nestlé) (32%),
G7 (Trung Nguyen) (23%),
Vinacafe (Vinacafe Bien Hoa)
(38%), Moment (Vinamilk) and
some other brands. This is a
market with a high level of
competition, requiring large
investment and less ability to
differentiate products.

In addition to the sidewalk cafes.

The Coffee House also has to
compete with international
brands, such as Starbuck or
local domestic brands that have
a strong position such as Trung
Nguyen Coffee and Highlands
Coffee.
In addition to the sidewalk cafes,
The Coffee House also has to
compete with international
brands, such as Starbuck or local
domestic brands that have a
strong position such as Trung
Nguyen Coffee and Highlands
Coffee.
The Coffee House also has
competitors from alternative
products such as famous milk
tea brands such as KOI, Phuc
Long. Ten ren, The Alley, Toco
toco,....In addition, on the
market, there are al variety of
other award products with a
variety of genres, designs, and
tastes, such as C2, O degree
green tea, carbonated drinks
such as Pepsi, Coca Cola or
Number One... are products that
compete strongly in the young
market segment.