PROMOTION PLAN PROPOSAL

TRUNG NGUYEN
COFFEE

By:
Tran Thi Anh Nguyet
Tang Buu Nguyet
Tran Kim Khanh
Tran Le Quang
Nguyen Tuyet Trinh
Tran Ngoc Quynh Giao
 Table of content
In this section
Introduction ....................................................................................................... page 3

Environment Analysis ...................................................................................... page 4

Industrial Review .................................................................................. page 4

Company and Products Review............................................................ page 5

Competitors Review............................................................................... page 6

Target Market ................................................................................................... page 7

Marketing & Communication Objectives ...................................................... page 8

Promotion Mix & Budget ................................................................................. page 9

Creative Concepts & Ads Sample.................................................................... page 12

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Introduction
In the 21st century, Marketing has been an ultimately powerful means for companies in
doing businesses. Marketing has been used for many purposes, but the main reasons are to boot
the sales and to perform better than competitors. Every company has to have a good marketing
plan in order to survive. However, the markets have been becoming indifferent products, and
firms must find a new way to do marketing. It has not only been about products, price,
promotion, and place any longer. It requires a new method to reach the market, and Integrated
Marketing Communication was born.

Integrated Marketing Communication (IMC) uses promotion mix to contact to target

customers and maintain the relationship with customers. Advertising is not the only tool but
direct marketing, personal selling, sales promotion, public relation, and so on are used too. These
tools do not only help to transfer the message about the product to customer effectively, but they
also can help to build the company brand name and image, and compete well with other rivals.

Trung Nguyen Coffee was one of the very soon Vietnamese companies using IMC to do
its business. It was a phenomenon that has been reminded until today. However, despite those
effort at the beginning, Trung Nguyen’s successful is just a memory now. It needs an effective
promotion plan to perform well in both local and international markets. Among started the run
for Vietnamese instant coffee, and it was the biggest phenomenon at that time. In this promotion
plan proposal, we mainly focus on G7 of Trung Nguyen for domestic market, which has been
famous not only in Vietnam but around the world.

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 Environment Analysis
Industry Review
Market Size

Vietnam is the second coffee producer and exporter in the world, behind Brazil. Its
internal markets are over 80 countries and territories around the world. In 2010, Vietnam
exported 1.1 million tons of coffee, earning close to $ 1.7 billion US dollars. The biggest market
which consumes Vietnamese coffee today is Germany accounting for 13.5%, followed by the
United States with a share of 12.7%. In local market, , the current market share of instant coffee
accounts for 65% in value compared with 34% of the value of roasted coffee according to the
measure in six major cities.

Trend

In first months of 2011, coffee export of Vietnam reached 520 thousand tons, worth over
a billion dollars, up 49.4% in quantity and increased to 122.3% in value over the same period last
year. Overall, the exported coffee volume to most major markets during the first quarter 2011 is
rising sharply over the same period in 2010. Export prices for March 2011 up to $ 2,273 USD/
ton, rising 8% from the previous month and increased strongly over the same period last year.
This is the highest price since 2008 to date. Export price of Vietnam's coffee in the near future
will continue at high levels because of the domestic demand as well as the world still remains
high.

Key factors

With the geopolitical location advantages ad relatively pristine natural resources, the
coffee production and coffee quality of Vietnam still remains high and stable. Diverse human
resources are another advantage. However, Vietnam commonly export raw materials, and the
opportunity for processed coffee is not still reached yet.

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Trung Nguyen Coffee – Company and Products Review
Brief History

Trung Nguyen Coffee was established on June 16 th, 1996 in Buon Ma Thuot, the most
famous place of growing coffee. The company business at that time was manufacturing and
selling coffee, and tea. Here are some most important times of Trung Nguyen Coffee:

̶ 1998: Trung Nguyen appeared in Ho Chi Minh City with the slogan "Bringing new
creative inspiration" and the No. 100 Trung Nguyen coffee shops.
̶ 2000: Marking the development by the presence in Hanoi and the first franchise to
Japan.
̶ 2001: Trung Nguyen was available around the country and continued franchising in
Singapore, followed by Cambodia, Thailand.
̶ 2002: Tien Tea was produced.
̶ 2003: G7 coffee was launched and exported to developed countries.
̶ 2004: Trung Nguyen coffee established shops in Japan, the network 600 coffee shops
in Vietnam, 121 distributors, 7000 points of sale and 59.000 retail products.
̶ 2005: inaugurate a roasting factory in Buon Ma Thuot and the biggest instant coffee
factory in Binh Duong in Vietnam.
̶ Recently, Trung Nguyen has been the most favorable coffee shop in Japan.

Products

Trung Nguyen Coffee products are mainly instant coffee. There are brand names:
Weasel, Legendee, Sáng Tạo, G7, and Passiona for women.

Competitors Review
In local market, there are two main competitors for instant coffee that Trung Nguyen has
to deal: Nescafe of Nestlé and Vinacafe. The market share evenly distributed to three opponents
Vinacaphe (38%), Nescafe (32%) and G7 (23%). This market has a dangerous shifting for
Vinacafe when growth reached only 27% compared with 51% and 88% of Nescafe and G7 in
recent years. Later, Vinamilk also jumped into the market with its own products, and Food
Empire Holding (Singapore) with Maccoffee.

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 In order to fight back Trung Nguyen testing campaign in 2007, Nestlé had a
communication campaign to gain its market share as followed:

̶ Nescafe has changed the name from Nescafe-Red Cup to Nescafe-Café Việt with a
new slogan: “You have enough to try?”
̶ Nestlé also organized many roadshow through Vietnam entitled "You were strong
enough to step up the car?” For young men 25-35 years old from playing the game
challenges, thrills.
̶ At the inaugural Buon Ma Thuot coffee festival in Dak Lak, Nestlé has the
impression of Vietnam maps range from the world's largest coffee beans.

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Target market
In the local market, there are two main markets that we want to focus: Ho Chi Minh City
and Hanoi Capital. According to survey data of the General Statistics on 04.01.2010, HO Chi
Minh population is 7,382,287 people. Statistics show that in the history of Hanoi's population
increased rapidly in the last half century day. According to results of Census April 1, 2009,
Hanoi's population is 6,451,909 people.

First we must pay attention on the culture. The Vietnamese people often drink coffee in
the morning, in social gathering, and when working. We can see that every morning everyone
drinks coffee wherever they are (home, pavement, coffee shop…). We can call that is the
subculture of Vietnamese. Because in a research is that: population in these 2 regions intend to
tea and coffee. In fact, in HCM they know about Trung nguyen brands is 58%, Hanoi is 61% and
consumer for coffee in Ho Chi Minh is higher than Hanoi is 4,5%. But 2 regions have
consumers higher than the middle regions.

Secondly, Hanoi and Ho Chi Minh are the 2 biggest cities in Vietnam. Ho Chi Minh has a
lot of buildings and companies with lots of factory workers, office workers and foreign people
working here. Base on those advantages about Trung Nguyen coffee in VN, we just focus on 2
regions Hanoi and Ho Chi Minh.

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Marketing & Communication objectives
Marketing objectives
As we know that Vietnam is a second country produce coffee all over the world. But
Vietnam just receive 2 billion in 100 billion $ from this black gold industry. Our purpose is how
to get 20 billion dollars from in next 15 years. Try to increase market share in Vietnam, G7 of
Trung Nguyen will be familiar with worker in general. Become a top coffee in Vietnam. Every
time they talk about their job, their business they will look back on G7 immediately; and it is not
only just in Vietnam, but also all the buildings and offices all over the world. In order to reach all
targets above, we must base on SMART strategy…

Communication Objectives
Due to its slogan “Khơi nguồn sáng tạo” (Dedicated to creativity), main focused
customers of G7 coffee will be students, businesspeople, and artists in both local and
international markets.

For domestic customers, they have little product recognition, and knowledge about
product whether it has other products similar to competitors. Bellow are what we have to do to
gain customers’ acknowledgement and loyalty:

1. Building recognition
2. Serving knowledge
3. Creating positive impression
4. Reaching the advantage position in customer’s mind
5. Customers’ attention

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Promotion Mix and Budget
Promotion mix
Trung Nguyen gets closer to its customers by the means of sponsoring, sampling events,
and print advertising. Trung Nguyen developed its first branding concept with selective colours,
a logo, a slogan and especially the so-called ‘franchise’ branded coffee shops. The rapid growth
of these retail branded shops created the "café Trung Nguyen" as something new and never seen
before, and was enough to attract the curiosity of consumers. This fathered very strong brand
awareness and can be regarded as the first success of Trung Nguyen.

There are seven main aspects of a promotional mix. These are:

1. Advertising  Print ads, radio, television, billboard, catalogs, signs, in-store displays,
posters, Web pages, Face book Trung Nguyen was very good at utilizing support from
the Government and the mass media. It tried to expose the brand as much as possible,
owing to being the first and because of the Government support in developing
Vietnamese brands and promoting agriculture and export products. As a pioneer in
branding among Vietnamese companies, Trung Nguyen was an inspiration to journalists,
who then contributed a great deal to its brand exposure to the public. (3) Not ready for
hot expansion, Trung Nguyen has faced the challenge derived from the fast growth of its
chain of branded coffee shops. The company has seemingly overslept; it has an
increasing number of outlets but forgotten to prepare a proper strategy for the control of
quality consistency and plan for further development.
2. Sales promotion  – sweepstakes, product samples, rebates, exhibitions. (Free shipping
over $ 75, $7 off shipping on order over $ 50, $5 off shipping over $ 35)
3. Public relations The range of marketing activities of Trung Nguyen was released:
- Branding program of agricultural products in Vietnam.
G7-ultimate festival, trial products (blind test) with 89%of
participants selected G7.
- Roadshow at Trung Nguyên Showroom.

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 4. Sampling events at Trung Nguyen’s coffee shop owned or franchise by Trung Nguyen’s
coffee. This kind of sampling should be used to show the distinct relative advantages of
the fresh coffee of Trung Nguyen coffee. In addition, premium should be offered in some
period when introducing a new coffee product.
5. Trung Nguyen will not use any low price promotion because it will lower the image of
the brand and can change the loyal customer opinion toward the brand.
6. Trying Nguyen also conducts promotion by print advertising such as magazine,
newspaper.
7. In addition, Trung Nguyen will create a sophisticated website (http://www.trung-nguyen-
online.com/ ) to improve communication capabilities, and provide information about
Trung Nguyen. The website also allows the customer a place to post and share idea about
Trung Nguyen.

Budget
A. Printed and Broadcast Ads

We plan to advertise in two main newspapers is Tuoi Tre newspaper and Thanh Nien
newspaper. They are popular newspapers throughout country and they have a big numerous
reader. The advertisement in these newspapers will include pictures and information about
product or promotion. Besides, we also give places where consumer can buy product.

Price per time

Item Quantity (day) Total
(VND)
Tuoi Tre 15 17 million 255 million
Thanh Nien 15 14 million 210 million
Total 465 million

B. Electronic media: TV advertisement

Now, TV became very popular in every family. At night, after a working day, everyone
in family is usually sitting to watch TV together. So, TV ads are an important part in marketing
strategy. We choose two main channels are HTV7 and VTV3 because those are popular channel
in Vietnam. We will broadcast our ads in the period from 19h-19h30. This period has a large
number of people watch TV.

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 Price per time
Item Quantity Total
(VND)
HTV7 15 18 million 210 million
VTV3 10 35 million 350 million
Total 560 million

C. Non-traditional Ads: Website and Direct mail

1. Website

We also advertise by a big logo on website www.vnexpress.net in one month. We choose

this website because VnExpress always have the largest number of visiting in Vietnam.
Furthermore, VnExpress is in the top 300 websites is the most accessed in the world.

Besides, through direct website of Trung Nguyen (www.trungnguyen.com.vn), customer

can know information about overview of Trung Nguyen, details of products, promotions, book
online or contact information.

Price per time

Item Quantity (week) Total
(VND)
VnExpress 4 15 million 60 million

2. Facebook:
We will display ads on Facebook, the largest social networking site based
on active users

Cost per click Expected Frequency of

Item Total
(USD) number ads
Facebook $0.52/click 50/day 180 days $4680

3. Direct mail

Target audience will be wholesaler or retailers such as market or supermarket. Through

direct mail, we will provide information about product, sale promotion, schedule working,
contact information…

Budget for Christmas event in HCM, Vietnam: 100,000,000 VND

Sponsorship budget: 50,000,000 VND

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Creative concept & Sample Ads
To create a concept that coffee G7 is different from other coffee brands, and when people
talk about coffee, they would talk about G7, we would apply the slogan “It’s coffee, it’s G7”.

Moreover, G7 would bring “enjoyable”, and “creative”. It is the best coffee for students,
for those who work in creativity, and for those who want a perfect resting time.

Here are the ads sample:

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