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International Busniness Strategy of Trung Nguyen Coffee

Group 3:

Vu Thi Loan

Doan Duy Tien

Nguyen Thi Hien

Nguyen Thi Ngoc Anh

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Outline

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Introduction 1

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International Strategy

Entry Strategy

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4 Conclusion

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1. Introduction In1996: Establishment of Trung

Nguyen Coffee Company.Mission: To connect and develop

to community of coffee lovers

with a passion for creative coffee

in order to achieve a prosperous

and sustainable world.Vision: TO BECOME THE

WORLD’S COFFEE LEADER

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- Target: to unify domestic market, to conquer international

markets, develop franchise system in Viet Nam and

foreign countries.

- 1000 coffee shop franchised in Viet Nam and 8 foreign

countries

- 13.265.826.449 cups of coffee are consumed up to 2013

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Differential Product: formula of coffee and space of stores

- In Western’s coffee = good material +

high technology + some opinion about

cultures.

- Trung Nguyen coffee = good material

+ high technology + Eastern’s secret

+ new opinion about coffee.

2. International Strategy

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- Good material: Trung Nguyen chose 4 the best material areas in the world. - Robusta coffee beans of Buon Ma Thuot which is the most famous

in Vietnam. - Coffee beans come from Ethiopia which is home country of coffee. - Arabica coffee beans of Jamaica. Coffee beans which are original from Brazil

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- High technology: Trung Nguyen is leading group in transfer

technology which is friendly with environment

- Eastern’ s secret: the mix between rare medicinal herbs, special

power resources from gemstone and special additive during roasting

and grinding coffee.

- New opinion about coffee: coffee is blood of knowledge

economic. Coffee helps start brain, motivate innovation and bring

light future

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Space of coffee store- The combination between Eastern culture and Western culture: the warm, comfortable, light and wonderful music atmosphere but it still keep the convenient and smart of Western style.

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Choosing international strategyReduce cost: low

Coffee is popular drinking in Western

Coffee is protected right and brand by Government, support

product cost and give advantage to export oversea. Allow

establish association to develop together.

Vietnam joined WTO that help Trung Nguyen become well-

known not only in domestic but also foreign countries

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Local responsiveness: low

- Each country, each local has different taste about enjoying coffee.

- Trung Nguyen have more

than 30 kinds of product which

can satisfy all type of customer.

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3.1.ExportingTrung Nguyen coffee has more than 60

countries: US, the UK, Japan,

Singapore, China.etc

The main export markets:

- the center economic in the world

- the business environment is less

risky, so political stability

3. Entry Strategy

=> Consumers have the habit of using good quality products, high prices, the company will not under pressure to reduce costs.

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The ways to export

1. Export through distributors

In UK: Dragon Coffee company

In Canada: H&O company Coffee

2. Online website

The customer can buy products’ Trung Nguyen through website :

http://www.trung-nguyen-online.co.uk/

http://trung-nguyen-online.com/trung-nguyen-coffee-order.php:

http://vietnamese-coffee.com/index.php

http://www.trung-nguyen-online.co.uk/

http://trung-nguyen-online.com/trung-nguyen-coffee-order.php:

http://vietnamese-coffee.com/index.php

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The challenge

Competition:

In the world, the Trung Nguyen brand is not well-know elsewhere.

Trung Nguyen has to compete with rivals of local coffee products

and instant coffee brand famous.

Competitors:Nestle (Switzerland)- leading the world with 70 years of history- the innovative breakthrough in enjoying coffee + instant coffee make from roasted coffee beans (1952) + freeze-dried instant coffee (1965)

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MacCoffee (Singapore): is a

trademark 3 in 1 coffee with

unique blend of premium coffee

beans, sugar cream delicate

flavor, and perfect quality.

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3.2. Franchise

- Franchise is Arrangement where one party grants another party

the right to use its trademark or trade-name as well as certain

business systems and processes, to produce and market a good or

service according to certain specifications.

- 1998: Open first coffee store, in Ho Chi Minh city.

- 2000: Appear in Hanoi and the first time franchise abroad to

Singapore. Trung Nguyen became the first Vietnamese company

applied “franchising” model domestically and internationally.

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- 2001: New slogan “Explore creative inspiration”, have

franchising stores in over Vietnam and expanded to

other countries: Japan, Thailand, Cambodia, etc.

- Up to now: Trung Nguyen has had franchised stores in

many countries: Japan, Singapore Thailand, Cambodia,

China, Ukraine, Poland, USA, etc.

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Requirements for franchised stores:

- Trung Nguyen wants to bring to customers not only the most

delicious coffee cups but also special coffee culture, Vietnam

coffee culture.

- Serving highest quality coffees.

- Using the modest technology and specially oriented secrets.

- Serving staffs are trained and deeply understand about coffee.

- The special space bring creative inspiration for customers.

- Interior and decoration carry Vietnamese style that make

customers feel they are resting in a Vietnam miniature.

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Franchised Stores

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Advantages and Disadvantages

Advantages

Cost effective growth

Commitment

Reduced involvement

Co-operative advertising

Reduce local risks

Disadvantages

Loss of ownership

Exclusivity

Management and

personnel skills

Loss of flexibility

Confidentiality

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