I.

Trung Nguyen's mission and vision

i. Slogan
"Explore creative inspiration
ii. Mission:
"Creating the leading brand is carried out by bringing to everyone drinking
coffee a source of creative inspiration and pride of Trung Nguyen" style that
is rich in Vietnamese culture"
iii. Vision:
To become a major force in boosting the Vietnamese economy; To uphold
stability of the national economy; To partake in the establishment of a Great
Vietnam, with hopes of discovering and conquering new ideals.
iv. Corporate Values:
1 - Inspired Creativity
2 -Develop and protect our brand
3 - Consumer's Orientation
5 - Develop strong human resource
6 - Base on effectiveness.
7 - Promote social responsibility and community development"

II. Situation Analysis
The rapidly development of Trung Nguyen coffee is undeniable. For a short
time, it has quickly gain reputation and become the most familiar coffee
brand to consumers both inside and outside the country. It is the testimony
for the success of Vietnam branch.
i. Market Summary
The company developed the first Vietnamese franchise of coffee houses and
expanded throughout Vietnam and then a number of other countries.
Especially, in 2003, Trung Nguyen coffee appeared G7 brand which is
considered an important milestone of Vietnamese coffee. Trung Nguyen coffee
products and G7 instant coffee was exported to 43 countries around the
world with key markets like the U.S. and China. Besides, it has developed a
system of more than 1,000 convenience stores and nationwide distribution
centers G7Mart.



ii. SWOT analysis
Strengths
- Trung Nguyen was the first
coffee company to take the franchise
system, and has wide distribution
channels.
- They have big market
share, regulation both inside and
outside Vietnam.
- Also, the quality is good,
and coffee has special taste, so Trung
Nguyen coffee determined the
position of branch to customers.
- Trung Nguyen has their
own factory for raw materials in
Buon Me Thuot city, Vietnam with
the most modern technologies.
Therefore they dont depend too
much on suppliers. Moreover, the
distribution of Trung Nguyen coffee
is very strong around the country.
Weakness
- Their system identification is
not consistent. Can see clearly the
difference in price, quality and even
service different coffee shop of
Trung Nguyen. It seems that their
services and managements are not
as good as a few years ago, so they
lost market share for competitors
- The market of Trung Nguyen
coffee is too big when Trung
Nguyen now markets its coffee in
more than 40 countries. It hard to
determine target market and invest
capital.
- Moreover, in domestic
market, Trung Nguyen coffee doesnt
focus on a segment target, their aim
is majority of Vietnamese people.
Opportunities
- Trung Nguyen coffee is
protected by the state about brand,
interests as well as support and
create advantage conditions to
export.
- Trung Nguyen coffees always
focus on national character. They
show the dream to strive and prove
Vietnameses spirit, so they are
supported by most of people.
- Vietnam joined WHO, so it
created more opportunities for
Trung Nguyen coffee to develop
international markets
Threats
- The global economy is crisis,
also Vietnams economy is unstable
and the inflation increase quickly =>
its hard to business.
- There are many competitors
such as Nescaf, Vinacaf, Highlands
or Starbucks.
- The important things more is
Trung Nguyen must control their
brand after they did a massively
franchising campaign. Trung Nguyen
cannot control all the partners, so
they can't keep their consistent image
and style.

iii. Marketing environment

1. Demographics
- The population in Vietnam was 91,519,289 (July 2012). The median age
total was 28.2 years (male: 27.1 years and female: 29.2 years). The
population growth rate was 1.054% in 2012.
- In 2010, the urban population was 30% of total population. Predictable, it
will increase 3% annual rate of change from 2010 to 2015.
- Vietnamese people are from 15 to 54 which made up 63.1% of total
population.
- 94% of Vietnams citizens know how to read and write.

2. Cultural and social
In Vietnam society, most of Vietnamese people value nationalism, it means
Vietnamese people use Vietnamese product.
This factor is a huge competitive advantage with other foreign coffee brand.
Many Vietnamese people, especially the intelligent like coffee and drink is
everyday
3. Economics
- According to the International Coffee Organization Vietnam is the 2
nd

largest producer of coffee in the world (after Brazil)
- Vietnam had been a member of Association of Southeast Asian Nations
(ASEAN) since 1995, Asia-Pacific Economic Cooperation (APEC) since
1998 and World Trade Organization (WTO) since 2007.
- In 2012, Vietnamese GDP (gross domestic product) was $320.5 billion,
GDP growth was 5.0%. The inflation rate was 9.2% which decreased
about 2 times than 2011 (18,7%)
- The unemployment rate was 4.3%.
- The PPP (purchasing power parity) in 2012 was $3,500 billion.
4. Technologies, Suppliers and Distributions
Coffee science is a multidisciplinary field encompasses chemistry, physics, and
food science throughout the stages of processing, shipping, roasting, and
packaging. Trung Nguyen coffee had received technology transfers from the
worlds leading corporations with will equipped. Trung Nguyen follows
Oriental secret recipes using a special blend of rare herbal ingredients. Also,
the special additives n the roasting and grinding process help to create the
best gourmet coffee.
Especially, G7 is a unique and superior gourmet instant coffee, due to a
processing plant built by Italian coffee technology experts that uses a
proprietary process to create flavorful instant coffee from unroasted, green
coffee beans. The beans are roasted and powdered in one process that
eliminates the usual bitterness of freeze-dried coffee common to other
processes.
Now, Trung Nguyen has a network of nearly 1,000 coffee shops around the
country to personally hand over to customers. Moreover, Trung Nguyen
product are tested and accepted by food and drug administration (FDA) in
order to the FSSC 220000 certification. As the results, Trung Nguyen can
exploit to over 60 countries around the world.
Trung Nguyen takes the material form 5 best coffee religions in the world
included Vietnam (Buon Ma Thuot coffee beans), Jamaica (Arabica coffee
beans), Ethiopia which is the home land of coffee, Brazil and Colombian.
However, the major material resource is famous Buon Ma Thuat Robusta
coffee beans.

5. Competition
Trung Nguyen has been in Vietnam since 1996. When they founded, they
faced to many competitors included big brand like. However, more than a
decade passed and the company has been achieving a numerous of
entrepreneurial prizes and recognitions from Vietnam government. Trung
Nguyen now is recognized worldwide as one of the best coffee brand.
In domestic market, Trung Nguyen coffee not only compete with others
famous brand like Vinacafe, but also face to big foreign competitors such as
Starbucks and Highlands coffee or Nescafe. More and more coffee stores are
opened every month. Therefore, Trung Nguyen coffee must compete about
both the quality of product as well as service with others brand. Now,
Vietnamese people, especially the young generation prefer using foreign
products, also they demand the high service. Whereas Trung Nguyen coffee
stores seem unsatisfied most customers.
- Vietnam National Coffee Corporation (Vinacafe) established in 1995
which is the biggest state owned corporation specializing in coffee
producing, processing, and exporting in Vietnam.
- Starbucks had been the famous and long-standing American global
coffee company and coffeehouse chain over the world for more than 40
years.
- Nescafe is a branch name of Nestl which is the world's leading
nutrition, health and wellness company in Switzerland. Also, it is one of
the oldest and most popular in the world.