Group Apple pen:Marketing Planning Project

HELLO 5 COFFEE CAFÉ CHAINImprove The Customer Satisfaction

Hoàng Kim HữuNguyễn Thiện ThànhVũ Thanh ThiệnNguyễn Thị Ngọc TrâmNguyễn Thu Trang

1

Contents• Introduction

• Situation analysis

• Marketing Objectives

• Research Methodology

• Findings and Discussion

• Marketing Strategy

• Budget and Implementation

• References

2

Introduction• Established by Mr. Tran Tan Thien in July 2012

• New coffee brand in the coffee market.

• Commit to serve 100% fresh and fine coffee to all users

• Competitors: Trung Nguyen, Highland…

• Products: Hello 5 coffee blended, Hello 5 roasted bean, and deluxe gift sets

3

Introduction• Distribution channels: supermarkets and airports.

• Coffee shop chain: Five coffee shops in Ho Chi Minh city, located in:

₋ AEON Mall, Tan Phu Dist.

₋ 58 ABACUS Building, Nguyen Dinh Chieu St., Dist. 1

₋ 126 Hong Bang St., Dist. 5

₋ Vimedimex Building, Cong Quynh St., Dist. 1

₋ Satra supermarket, 3/2 St., Dist. 104

5

Situation analysis

6

Vision and Mission

• Vision: Hello 5 Coffee proudly

becomes the breakthrough

Viet Nam coffee brand

creatively in five continents

• Mission: Creating happy and

healthy lifestyle for people by

providing real products and

great services honestly

7

Brand Positioning

8

Market analysis

Source: “Market Analysis Report 2012: Foodservice profile Vietnam,” by International Market Bureau, Agriculture and Agri-Food Canada, 2012, p.6.

9

Competitors Analysis

- Café chain is the most attractive industry in Vietnam.- Threats of other foreign coffee brands due to the globalization trade policy.

The power of customers is quite high due to the low switching cost and undifferentiated products and services of Hello 5 Coffee.

- Popularity of coffee machine and instant coffee → people can enjoy coffee at home.- But Hello 5 Coffee offers wide range of products → low threats of substitutes.

- Vietnam is the second largest coffee production country.- Modern technology and plantations to product raw coffee to produce coffee beans.

- In a high-level competitive in café chain industry.- Competitors: Trung Nguyen Coffee, Highlands Coffee, etc.

Potential New Entrants Buyers Substitutes Suppliers Competitive

Rivalry

10

POLICY ECONOMIC SOCIAL TECHNOLOGY

On October 5, 2012,

Resolution No.13/NQ-CP

and On December 19,2013,

Resolution No

210/2013/NĐ-CP was

enforced on solutions to

reducing land tax, remove

difficulties for production

business and market

support (Vietnam

Government Portal, 2012).

Inflation rate is well-

controlled at low level

•GDP growth reached

6.68% in 2015

-> In 2015, VN had the

highest GDP growth rate

and the lowest inflation

rate.

•Personal income increased

57 USD compared to 2014

•CPI growth of the Food

and Drink sector were

always on top 3 from 2013

to 2015.

• Population: young

population, from 15 to

54 age: 62,6% → a

good opportunity for

Hello 5

• GDP: is growing

steadily. Reached

$2105/capita in 2015

(vnexpress.net) → a

promising market.

•The effective technology is a

key factor for production

innovation especially in food

and beverage industry.

Equipment is complicated

and expensive that requires

strong financial system.

Investing in machines in the

fundamental technology

competition and the core

success factor of a coffee

company.

PEST Analysis

11

Hello 5 Coffee’s SWOT AnalysisSTRENGTHS- High quality products- Develop coffee resources for both export and domestic markets.- Eco-friendly package design.- Modern technology - Ambitious management- Japaneses partner supported

OPPORTUNITIES - End users are preferring safe products- Government is fighting with dirty products- TPP, AEC- Vietnam is recognized as one of the biggest countries to export coffee bean.

THREATS- Many fake brands copy the designs- Strong competitors entrance: Starbucks, Highlands, Trung Nguyen, etc. - Unsafe coffee- Many coffee brands competitors.- The flat market

WEAKNESS- New brands → Low brand awareness - Cannot focus on quality to chain stores well- Limit resources like capital- Marketing activity is not much- Not a global brand name

12

Marketing Objectives

• Increase customer satisfaction and brand

awareness by 40% by the end of 2017.

13

Target Customers• Age: above 23 years old.

• Occupation: employees and officers.

• Purpose of go to coffee shops: relaxing, chatting, hangout or

workplace.

14

Research Methodology

15

Survey #1: Factors affecting customer

when choosing a coffee chain.

• Quantitative method: Online survey.

• Sample size: 50

• Target respondents: Above 23 years old.

• Place of living: Ho Chi Minh city.

16

Survey #2: Impressions and feelings of Hello 5 Coffee’s customers about its services.

• Quantitative method: Online and offline survey.

• Sample size: 145

• Target respondents: non-users and users of Hello 5

Coffee.

• Place of living: Ho Chi Minh city.

17

Findings and Discussion

18

Characteristics of Sample

Fe-male63%

Male37%

Age

Under 23 years old 45

From 23 to 39 years old 102

From 40 to 50 years old 9

Above 50 years old 1

19

Characteristics of Sample

31%

18%

5%

19%

24%

3%

Student

Officer

Businessman/Busi-nesswoman

In business

Freelancer

Retired

Others Under 4 m

illion VND

4 millio

n - under 6

millio

n VND

6 millio

n - 10 m

illion VND

Above 10 m

illion VND

22%32% 28%

18%

Income per month

20

Characteristics of Sample

Work/Study

Use services

Relax

Meet friends/family

Habit

Others

61%

64%

69%

62%

16%

5%

8%17%

43%

32%

Frequency

Every day4-5 times/week2-3 times/weekLess than twice

21

Addressing The Issues BRAND AWARENESS

Addressing The Issues EMPLOYEE

23

Reviews from Foody.com

24

WRONG ORDER

Addressing The Issues DESIGN

25

DESIGN

26

Cách trang trí bên trong quán

Cách bố trí bàn ghế Cách bày trí bên ngoài quán

Sự thoải mái, tiện nghi, thoáng đãng

Màu sắc , ánh sáng Âm nhạc

11%4%

0%4%

0% 0%

15%

7%

19%22%

19%15%

48%

37%

74%

19%

46%

75%

15%

48%

7%

48%

33%

7%11%

4%0%

7%0% 0%

Xin vui lòng cho biết đánh giá của anh/chị về KHÔNG GIAN và THIẾT KẾ quán hiện tại của chuỗi Hello 5 Coffee

Rất không hài lòng Không hài lòng Bình thườngHài lòng Rất hài lòng

27

Addressing The Issues PROMOTION

28

Marketing Strategy

29

  CONTRIBUTORS CUSTOMER DISSATISFACTION IN

PERCENTAGE

TOTAL INCREASEMNET SATISFACTION IN

PERCENTAGE = 40%

LAYOUT DESIGN

Inside decoration 25.92%

15 %

Table arrangement 11.11%

Outside decoration 18.52%

Atmosphere ( convenient, airy, comfortable,ect) 25.92%

Color, light 18.52%

Music 14.81%

PROMOTION

Free delivery

44.45% 10 %Variety of combo food and drink

Member card and discount

Voucher gift

EMPLOYEES’ ATTITUDE Employees 23,07 % 15 %30

31

Brands Customer dissatisfaction about employees’ attitude

Hello 5 coffee 23,07 %

My Life coffee 5,55 %

Highland coffee 13,5 %

Trung Nguyen coffee 0 %

Customer dissatisfaction about employee ‘s attitude of Hello 5 coffee and competitors

Design

32

6%

79%

12%

3%

The luminosity of a coffee shop

Bright

Slightly bright

Dim

No comment

30%

27%

39%

3%

The main colors of a coffee shop

Warm colors

Cool colors

Neutral colors

No comment

Design

33

3%

58%24%

9%6%

Music

Fast beat

Slow beat

Instrumental music

Others

No comment73%

15%

12%

Smell of a coffee shop

Smell of coffee

No smell

Others

Order and Payment

34

36%

58%

6%

Way to make an order

Order at the counter and take a number

Make an order at table when employee give you a menu.

Others

36%

9%

52%

3%

Time to pay bills

After orderWhen all plates are servedWhen you finish the mealOthers

Budget and Implementation

35

Budget: Promotion

36

PROMOTIONActivities Detail Quantity Unit Unit Price

(VND)Budget (VND)

Menu leaflets Menu for delivery service (A5 paper) 2,000 Sheet 375 750,000

Leaflet distributors (optional)

Hand out leaflets at office buildings and on the streets. 2 Person 100.000 for an hour

200,000 for an hour

Vouchers Discount vouchers for drinks and foods. (on special events or special hours)

2,000 Sheet 120 240,000

Coupons A combo coupon including 5 mini coupons for 5 weekdays with 5 different promotions. (5 coupons per set)

600 Set 11,000 6,600,000

Membership card Membership card for loyal customers of Hello 5 Coffee. 600 Card 6,000 3,600,000

Standees Put a standee in front of each branch to introduce some current promotions and attract people’s attention.

5 Sheet 100,000 500,000

Posters Posters hang up against the wall to show quality certifications that Hello 5 Coffee has been granted. (A3 paper)

5 Sheet 40,000 200,000

TOTAL 12,090,000

Budget: DesignDESIGN

Activity Detail Area of Store

Unit Unit Price (VND) Total (VND)

Design

- Design inside and outside store.- Interior decoration- Design electric power system,

sewage system, etc.

20 120,000 2,400,000

60 120,000 – 250,000 7,200,000 – 15,000,000

> 100 > 90,000 > 9,000,000

Construct - Civil work and finishing work

20

4,000,000 – 6,000,000

80,000,000 – 120,000,000

60 240,000,000 – 360,000,000

> 100 > 400,000,000

37

Implemetation

38

Thank you for listening

39

References• About us. (n.d.). Retrieved September 16, 2016, from http://hello5.vn/

• Coffee consumption in East and Southeast Asia: 1990 – 2012. (2014, February 27). Coffee Consumption in East and Southeast Asia:

1990 – 2012. Retrieved from http://www.ico.org/news/icc-112-4e-consumption-asia.pdf

• Hoang Van (2013). Người Việt chi bao nhiêu tiền cho việc ăn uống?. Retrived from http://cafebiz.vn/song/nguoi-viet-chi-bao-nhieu-

tien-cho-viec-an-uong-201304041451115804.chn

• Phuong Linh (2015). Thu nhập bình quân người Việt năm 2015 hơn 45 triệu đồng. Retrieved from

http://kinhdoanh.vnexpress.net/tin-tuc/vi-mo/thu-nhap-binh-quan-nguoi-viet-nam-2015-hon-45-trieu-dong-3333776.html

• Retrieved from http://www.theodora.com/wfbcurrent/vietnam/vietnam_people.html

• Retrieved from http://www.statista.com/statistics/315005/vietnam-per-capita-coffee-consumption/

• Retrieved from http://thietkequancafedep.vn/bang-gia/bang-gia-thiet-ke-quan-cafe-10.html

• Retrieved from http://thietkequancafe.info/tin-tuc/bang-gia-thiet-ke-quan-cafe-60.html

• Zeithaml, V. A., Bitner, M. J., & Gremler, D. D. (2013). Services Marketing (6th ed.). 40