Khúc Phương Hoa – 22k150025 – No.

09

Trung Nguyên, a Vietnamese coffee giant, has carved a unique niche in the
global market, has established its own position in the global market in just 10
years. With a commitment to quality, innovation and sustainability, Trung
Nguyên has successfully captured the hearts of coffee enthusiasts worldwide.
This essay will thoroughly analyze Cafe Trung Nguyen's marketing mix,
focusing on the product, pricing, place, and promotion strategies employed to
satisfy its target customers.

Cafe Trung Nguyên is a renowned coffee brand synonymous with excellence in

Vietnamese coffee culture. Established in 1996 by Mr. Đặng Lê Nguyên Vũ in
Buôn Ma Thuột, the heart of Vietnam's coffee-growing region, Cafe Trung
Nguyên has grown into one of the largest and most beloved coffee companies in
Vietnam and beyond. At the core of Cafe Trung Nguyên's success lies its
commitment to quality and innovation. The company prides itself on sourcing
the finest Arabica, Robusta, and Excelsa coffee beans from the lush highland
regions of Vietnam, where ideal climatic and soil conditions have yielded coffee
beans with exceptional flavor and aroma. Through sustainable farming practices
and close partnerships with local farmers, Cafe Trung Nguyên ensures the
highest quality coffee beans while supporting the livelihoods of coffee growers
in the region. Cafe Trung Nguyên offers a diverse range of coffee products to
cater to different tastes and preferences. From traditional Vietnamese-style
coffee, bold and robust with a hint of chocolatey sweetness, to specialty blends
crafted for espresso enthusiasts, there is something for everyone in their
extensive product line. Furthermore, the company's creative packaging ensures
freshness and convenience, whether enjoying coffee at home or on the go. In
addition to domestic success, Cafe Trung Nguyên has expanded its reach
internationally, with a growing presence in markets worldwide. Through
strategic partnerships and a relentless focus on customer satisfaction, the
company continues to spread the joy of Vietnamese coffee to coffee lovers
everywhere. Essentially, Cafe Trung Nguyên is a testament to the rich heritage
and enduring allure of Vietnamese coffee culture. With steadfast commitments
to quality, innovation, and customer experience, the brand sets the bar for
excellence in the global coffee industry.

Cafe Trung Nguyên's product strategy revolves around providing a diverse

range of coffee products to meet different consumer preferences and all
customer segments from budget-friendly to premium with the best quality.
Currently, Trung Nguyên coffee is divided into 4 main groups: specialty coffee,
ground coffee (powdered coffee), instant coffee, and coffee beans. Instant
coffee includes varieties such as G7 Coffee, Trung Nguyên Legend Coffee,
Trung Nguyên specialty instant coffee (Trung Nguyên Legend Cappuccino
Mocha, Cappuccino Coconut…), and phin-brewed coffee. Ground coffee
includes: Regular ground coffee (Khát Vọng I Coffee, S Conquering Coffee,
Sức sống Coffee), medium-high range ground coffee (Premium Blend, Gourmet
Blend, House Blend). Coffee bean products: Trung Nguyên Legend Success
beans (1,2,3,8), Drip beans (1,2,4,5,8), and Buôn Ma Thuột Espresso beans.
Specialty coffee (Premium coffee) includes: Legend Coffee (civet coffee),
Weasel coffee, and Creative 8 coffee. Moreover, Cafe Trung Nguyên
emphasizes product innovation to stay ahead in the competitive coffee market.
The brand has also introduced the Legend Passiona coffee specifically for
women. With low caffeine content, it helps supplement collagen, anti-aging
agents, and diet-friendly sugars that many women trust. Each product line of
Trung Nguyên has its own marketing strategy tied to the mission and vision that
the brand brings. A notable marketing strategy is G7 coffee's product
differentiation following its slogan: "Energy Coffee - Life-Changing Coffee".
This marketing strategy of Trung Nguyên coffee has created a big impact. The
new product and effective marketing strategy have completely changed the
landscape of the instant coffee market at that time. With its rich flavor and
preserved aroma, G7 coffee has affirmed itself as the "real coffee", creating a
great impression on customers and increasingly spreading its brand worldwide.
Furthermore, Cafe Trung Nguyên pays attention to packaging design, ensuring
that it reflects the brand's premium positioning and attracts the target customer
base. Beautiful packaging, informative labels, and visually appealing designs
contribute to the overall product experience and help differentiate Cafe Trung
Nguyên from its competing rivals. Trung Nguyen always aims for quality and
flavor. Each coffee bean is carefully selected, and the roasting process is applied
using state-of-the-art equipment. Additionally, the unique roasting and drying
formula combine to bring a distinct flavor in every cup of coffee. Trung
Nguyen's product marketing strategy focuses on "creative coffee" and
"personalization." Products are launched based on market research investment
as well as the needs and preferences of customers. Trung Nguyen targets a
diverse customer base from young adults to the elderly. Each age group has
different coffee taste preferences. Therefore, Trung Nguyen has implemented a
"personalization" strategy. The brand introduces various lines from Robusta
Coffee, Arabica Coffee, Weasel Coffee for premium customers to G7 Passiona
specifically for women with low caffeine content, less sugar combined with
various Oriental herbs to supplement collagen and anti-aging ingredients. Trung
Nguyen is one of the pioneering companies investing in intellectual value.
"Journey From the Heart – Journey of Great Aspiration – Entrepreneurship for
30 Million Vietnamese Youth." The marketing strategy initiated by Trung
Nguyen Legend Group has brought about a philosophy of life, creating a
differentiation for the brand. By giving tens of millions of life-changing books
to Vietnamese youth, Trung Nguyen has added the power of correct and
comprehensive knowledge. The expected number of books is over 200 million
copies with a cost of nearly 5 billion dollars. The book-giving campaign has
received enthusiastic responses from former ministers to economists, organized
artists, social organizations, businesses, philanthropists, influential figures,
intellectuals, and the media, thereby spreading knowledge and affirming the
brand value it brings to the community.

To survive in the market, pricing is an incredibly important factor. With the

price-conscious mindset of Vietnamese consumers, Trung Nguyên always
strives to maintain average prices. Depending on different product types, the
prices are adjusted accordingly to fit the market segments and target customers.
Furthermore, Cafe Trung Nguyên applies a value-based pricing method,
emphasizing the quality and unique benefits of the product rather than solely
focusing on cost-based pricing. By highlighting the exceptional flavor, aroma,
and ethical sourcing of coffee beans, Cafe Trung Nguyên creates perceived
value among consumers, making them willing to pay a higher price. Moreover,
Trung Nguyên implements preferential pricing policies tailored to different
customer segments. With product prices ranging from 7,000 to 140,000
Vietnamese dong, every segment can afford to purchase a cup of coffee to
enjoy. For customers who prefer G7 instant coffee products, they can easily find
their preferred products at prices ranging from 21,000 to 200,000 Vietnamese
dong. Furthermore, the brand occasionally offers promotional discounts or
bundle deals to attract price-sensitive consumers and encourage trial purchases.
The pricing strategy has helped Trung Nguyên gain a competitive advantage
over products from major competitors such as Nescafe, Vinacafe, etc. By saving
a significant amount of transportation costs during the distribution process from
the factory to the stores, the prices of each Trung Nguyên coffee type have been
lowered, stabilized, and become more competitive. For franchising, Trung
Nguyên's franchisees price each cup of coffee 50% higher than Starbucks coffee
and 25% higher than domestic coffee products. This strategy has led to many
successes for Trung Nguyên, notably the franchise brand in the capital city of
Tokyo. This is also the largest leverage for the development of the Trung
Nguyên system worldwide.

Cafe Trung Nguyên strategically distributes its products through a combination

of multiple channels to effectively reach its target customers. To ensure the
most efficient distribution system, Trung Nguyên has established 5 branches in
most major cities of Vietnam, including Hanoi, Ho Chi Minh City, Da Nang,
Lam Dong, and Can Tho. Regarding distribution channels, the brand currently
utilizes 3 main channels: Traditional channel, modern channel, and franchise
system. In the traditional distribution channel, Trung Nguyên primarily focuses
on distributing medium and large quantities of coffee. These are the product
lines most widely accepted and trusted by consumers. Products are priced at a
mid-range level, accessible to the majority of customers. Traditional distribution
channels include wholesalers, retailers (small shops or retail stores such as
convenience stores), and end consumers. Since 2010, Trung Nguyên has had 4
coffee roasting factories, 2 instant coffee processing factories throughout
Vietnam, a network of 600 coffee shops in Vietnam, 121 exclusive distributors,
7,000 branches, and 59,000 retail stores. Cafe Trung Nguyên collaborates with
distributors, wholesalers, and selected hotel businesses to expand its reach and
availability in various markets. These strategic partnerships allow the brand to
penetrate new territories and reach different consumer segments while
maintaining control over product quality and brand image. In addition to
physical retail presence, Cafe Trung Nguyên also has a strong online presence,
selling products through its official website and e-commerce platforms. As part
of Trung Nguyên's distribution strategy, the brand has established the G7 Mart
system. This is the first franchised retail system in Vietnam, helping to
overcome the shortcomings of traditional channels, with 200 suppliers for the
entire G7 store chain nationwide. According to Trung Nguyên's vision, the G7
Mart system was created to serve the small-scale shopping habits of consumers.
With a preference for shopping near their homes, G7 Mart stores are typically
small-scale convenience stores. In addition to offering Trung Nguyên coffee
products, the system also provides consumer goods. Furthermore, products are
distributed on e-commerce platforms such as Shopee, Lazada, Amazon,
Taobao.com… Utilizing technology on online shopping platforms like Grab,
Now, Go Food, Loship… strengthens cooperation with online payment partners,
combined with doorstep delivery. This multi-channel approach allows the brand
to reach a wider audience and cater to the preferences of both offline and online
shoppers. Moreover, Cafe Trung Nguyên ensures seamless integration between
offline and online channels, providing click-and-collect services, loyalty
programs, and personalized recommendations to enhance the overall customer
experience. Trung Nguyên was the first Vietnamese coffee brand to implement
domestic and international franchising in 1998. In recent years, Trung Nguyên
had approximately 3000 coffee shops across 63 provinces and 8 franchise stores
abroad. With this model, Trung Nguyên aims to cater to those who want to fully
enjoy the flavor and value of coffee. Therefore, carefully selected coffee types,
advanced processing technology, and professional service teams have satisfied
consumers' spiritual value of coffee, providing them with a direct and rich
coffee experience. These coffee shops serve as premier destinations where
customers can not only purchase Cafe Trung Nguyên products but also enjoy
freshly brewed coffee and other beverages in a cozy and inviting atmosphere.

Cafe Trung Nguyên implements integrated marketing communication strategies

to build brand awareness, promote customer interaction, and stimulate
purchasing behavior effectively. The brand leverages a combination of
traditional marketing channels and digital techniques to reach its target audience
efficiently. In terms of traditional marketing, Cafe Trung Nguyên invests in
print advertisements, billboards, and sponsorship opportunities to enhance brand
visibility and reach consumers at key geographical locations. These traditional
channels are complemented by strategic partnerships with influencers,
celebrities, and coffee experts who endorse Cafe Trung Nguyên products,
expanding the brand's message to a wider audience. Through PR activities, the
coffee products' logo of Cafe Trung Nguyên embodies a modern style. With a
three-dimensional block carved on a sea background, along with sharp color
tones. The tower-like structure symbolizes aspirations, placed on a brown
background expressing a solid foundation for growth. Trung Nguyên does not
focus solely on advertising but concentrates on PR activities. The company
injects national identity into the logo, slogan, and ignites national pride in each
product. With a memorable and impactful slogan "Igniting creativity." The
corporation also brings many positive values to the community, notably
committing to sponsor overseas study scholarship projects, supporting other
brands in difficulty such as Thanh Long Vietnam, the World Coffee Capital
project in Dak Lak. This helps the brand quickly gain trust from the community.
Trung Nguyên also heavily invests in advertising. Trung Nguyên's
advertisements are often aired during prime time on national television channels
such as VTV1, VTV3… This helps the community remember the brand. Trung
Nguyên's advertising campaigns make people familiar with slogans related to
"creativity" or "national spirit." The brand has directed viewers' attention to the
creativity factor throughout the campaign "Trung Nguyên - The coffee group
specializing in stimulating creativity." Trung Nguyên has demonstrated a very
strong and assertive attitude through quick, powerful, decisive images, ending
the video with the declaration "When you need creativity, choose Trung
Nguyên”. Trung Nguyên's coffee marketing strategy also implements
promotional programs that are both suitable for each period and compatible
with long-term campaigns, such as: Buy 1 thermos and get 10 energy coffee
cups, or organize mini-games on October 20th.ect. Furthermore, Trung Nguyên
collaborates with online payment services such as Moca and launches a 50%
discount promotion when paying through this platform. Leveraging influence on
social platforms like Facebook, Youtube to carry out free advertising
campaigns. These experiential marketing initiatives enhance consumer
engagement, generate word-of-mouth referrals, and drive traffic to their cafes
and retail stores.

In conclusion, Cafe Trung Nguyên's success in satisfying its target customers in

the coffee industry can be attributed to its comprehensive marketing mix
strategy. Through a combination of product excellence, premium pricing,
strategic distribution, and integrated promotion, Cafe Trung Nguyên has
effectively positioned itself as a leading player in the global coffee market. By
continuously innovating, adapting to consumer preferences, and staying true to
its brand values, Cafe Trung Nguyên remains well-positioned for sustained
growth and success in the years to come.