Marketing plan for Trung Nguyen coffee company.
Trung Nguyen is the premier brand of coffee in Viet Nam- the second largest exporting coffee country in the world after Brazil and the world's biggest producer of Robusta coffee beans. Our strategy is to spread the reputation of our coffee label well beyond Vietnam's borders. Hence, having taken the domestic market by storm with over 400 outlets, Trung Nguyen is looking to go global. In the present, our company has dipped the toe in more than 40 nations in America, Europe, Asia, Oceania; accounting for 20% of output such as United States, Germany, Australia and Canada, Taiwan, Russia, Hong Kong, China, Japan, Thailand.
In part company’s strategy to become a competitive brand in the world coffee market, we are on the brink of launching our products into a lucrative market in a dynamic economy- South Korea. The current trend towards an increase in the number of entrepreneurs and competition amongst existing companies presents an opportunity for Trung Nguyen to penetrate the market. Our Trung Nguyen’s goal is to become the leading brand of coffee by selling the finest quality coffee and by providing each customer a unique “Vietnam Experience”. Primary target markets will be students, yuppies, professionals and retail stores. Coffee chain Trung Nguyen’s products will be positioned at the high end of the market in terms of both quality and price.
Our marketing strategy will be based mainly on Trung Nguyen’s most special coffee formula: Good material, modern technology, Oriental secret and new concept of coffee. Hence we intend to implement a market penetration strategy that will ensure that we are well known and respected in our respective industry in Korea. The marketing effort will convey the sense of quality and satisfaction in every picture, every promotion, and every publication.
Trung Nguyen is primarily targeting a market share of 15% in our initial year. Trung Nguyen forecasts a modest net profit in the first three years. The commensurate modest profit margin will be achieved from sales.
- STIUATION ANALYSIS
- MARKET ANALYSIS
Market Demographics: the population of South Korea population (2008) was estimated at 49,232,844 (CIA World Factbook). People ages 15-64 make up the largest percentage of the population (72.1% -Source: CIA World Fact book), and therefore will have greater control of the market than any other sector. This implies that the most important target market for Trung Nguyen is people within this age group.
- Market Needs: Koreans need quality coffee and comfortable coffeehouses to sit and socialize.
- Market Trends: Korean is going away from traditional coffeehouses to franchise coffeehouses with specialty coffee. People like the variety and quality. This is a long-term trend.
- Market Growth
South Korea's still at the early stage of development when it comes to quality coffee. So there's still huge room for growth. The Information Center for Agriculture and Rural Development (AGROINFO) forecasts that Korean will continue to increase its coffee import turn-over and the country is included in the list of high potential coffee importing countries in the year 2009. While the world economic context is declining leading to the diminishing tendency of the demand for coffee consuming in the main markets of coffee, Korea is considered as one of good markets for the world exporting coffee industry.
- Describe the macro environmental trends that affect the market
- Economic: according to International Monetary Fund (IMF) GDP Growth rate in 2008: (IMF) 5.0%, estimated GDP growth rate in 2009: 4.1%. The growth rate of GDP suggests that the economy is growing, and therefore there is opportunity for Trung Nguyen to expand business.
- Technological: High-technology information system upgrades will improve all aspects of business, especially inventory control, tracking of shipments, and communication with clients in import countries.
Social/ Culture: For the first time, Korean women are fully in the workforce. They enjoy meeting with friends and co-workers to socialize in trendy coffeehouses. There is also a gradual shift from a six-day to a five-day workweek in Korea. Now, with the five day work week, Koreans have more time to go out. Besides, more Koreans traveled and studied abroad, and became exposed to coffeehouse culture. In addition, the younger generation is also more westernized. They prefer better quality coffee, a comfortable place for social time with friends and having taste choices.