Marketing Management

BUS 2205-3
Marketing Management

Individual assignment

Trung Nguyen Coffee

Name: Kwai Chung Ying

Student ID: 4024016

 Trung Nguyen Coffee was introduced by four university students in 1996 and it is leaded by Dang Le Nguyen Vu now. It is originated from Vietnam so Trung Nguyen Coffee’s first coffee shop was opened in Ho Chi Minh City. After that, Trung Nguyen Coffee rapidly expand its business to other Asian countries and cities. Now Trung Nguyen Coffee is the top company among the whole coffee market and already became the top coffee brand in Vietnam. Its coffee already brought to everywhere around the world. Trung Nguyen Coffee offers many types of coffee, such as roasted coffee and instant coffee (G7 series) which can meet different customers’ needs in the market.  

 Nowadays, teenagers like following the trends on the current market which led to the rapid economic growth. Since the average monthly income of people increased, they started to pursuit for higher living standard and want to have a better quality of life. This is the reason why people nowadays have higher purchasing power and love following the newest trends in the market. Many people think that coffee only meet Western lifestyles, for example, spending a whole day long on drinking a cup of coffee. But the fact is that coffee already spread to many Asian countries and every coffee brands put a lot of efforts to develop different types of coffee that can suit Asian flavors since Asia is a big potential market. Nowadays, there are nearly forty percent of Chinese people drinking coffee everyday which means that coffee assimilate into Chinese people’s life. In addition, whether a company fulfill its social responsibilities gradually becomes a vital question for many consumers, since nowadays they concern more about the social issues if compared to the past time.

Trung Nguyen Coffee’s target market is Vietnamese since it is the national coffee brand which represent Vietnamese lifestyles and culture. This feature is unique from their competitors like Starbucks. Trung Nguyen coffee focus more on its own region market while Starbucks focus on the whole world market. As a result, Trung Nguyen Coffee can have advantages on satisfying local customer's needs and wants.  Trung Nguyen coffee can easily enter the Asian market since the company based is in Asia, it has deeper understanding about the needs of Asian. Trung Nguyen Coffee is the top coffee shop in Vietnam, it provides various kinds of coffee such as roasted coffee for the high-income consumer that love the rare taste of coffee and are affordable to buy for more expensive coffee. Take passiona coffee as an example, passiona coffee is specifically designed for the female consumers. It also changed people’s traditional beliefs about coffee attributes. Some people may think that coffee can cause harmful effects to the health, because it contains high amount of caffeine. However, Passiona coffee is good for women because of its special ingredients and formulas which can enhance the skin quality, skin complexion, and skin health. Therefore, it attracts many female customers to buy which occupy the female’s market. Trung Nguyen Coffee also offer instant coffee with different flavors for people who does not have enough time to make coffee by themselves. The wide range types of coffee can meet different customer’s needs. Trung Nguyen Coffee started a franchise, and created a convenience store chain (G7 marts) which can create a huge network to distribute their products and improve their competitive advantages in the industry. These are the strengths of Trung Nguyen Coffee. For the weaknesses, since Trung Nguyen Coffee focus on different groups of customers that the needs are different so that the brand image is not clear and identical enough. In addition, the tastes and flavors of coffee are limited and it does not produce any coffee related products. On the other hands, since the brand is new to the Western people, it is difficult to compete to other Western coffee brands such as Starbucks and Pacific Coffee now. For threats, nowadays there are many different types of drinks for customer to choose in the market like milk tea from Hong Kong and bubble tea from Taiwan.  Also in the convenience stores and supermarkets there are hundred types of instant coffee produced by different coffee brands, so the competition is really intense. In addition, nowadays people do not have time to make a cup of high quality coffee at home.