Midterm Presentation for Business Course Post Graduate

presentation for course

1. Successful Strategy of Trung Nguyen corporation Final Presentation 1 BUI QUANG NHA D9905803 Human resource management

2. Contents 2 Introduction 1 Mission and Core values 2 Analysis of Core values 3 Evaluation & Recommendation 4 Conclusion 5

3. Introduce about Trung Nguyen corporation Trung Nguyen corp. was established in Buon Me Thuot, central coffee plantation in Vietnam Trung Nguyen is Vietnamese No 1 coffee Brand with over 1,000 cafes world-wide, and coffee exports to over 40 countries. General Director of Trung Nguyen corporation 1

4. 1996: Trung Nguyen start operation in Dak Lak province, the largest coffee plantation in Vietnam 1998: First coffee outlet in Ho Chi Minh City, marking it first presence in Vietnam . 2000 The first coffeehouse introduced in Hanoi, Trung Nguyen franchise coffeehouses set up 2002: Franchised successfully in Thailand, Cambodia, Japan 2003: G7 instant coffee mix was introduced, started the combat with Nescafe & other brands 2006: Opened coffee shop in Germany, New York, Malaysia, China Launch G7Mart chain in Vietnam, G7 products appeared in over 43 countries 2008: Launched new franchise coffeehouse system in Vietnam and other countries. Launched Coffee Village in BMT and aims to become Coffee Metropolis in Vietnam Trung Nguyen Milestone 2005: received EUREPGAP certificate with international recognition 1

5. Vietnam coffee market Vietnam is the country of coffee, but before 1996 most of coffee shops were no brand name Brand name for instant coffee: 5 Vinacafe (1983) Trung Nguyen (1996) Nescafe from Nestle (1995) 1

6. Mission and Values 6 Slogan “Creative Inspiration” Trung Nguyen Mission Create a leading coffee branch enriched by Vietnamese culture. Brining to everyone a source of creative inspiration and enjoy by their own styles Develop and protect Brand Strong human resource asset Promote social responsibilities and community development Inspire the source of creativity Market strategy Midterm Presentation Competitive strategy Final Presentation 2

7. 7 Inspire the source of creativity With 170,000 hectares of coffee, Dak Lak is strong basement for Trung Nguyen ambition With European advanced technology and Trung Nguyen’s unique know-how formula for brewing coffee And the trump card-General Director Dang Le Nguyen Vu who can raise the love for drinking coffee 3 Inspire the source of creativity

8. Market strategy 8 Sustain success Diversification Development Expansion penetration 3 Market strategy

9. Market penetration Enter market with its own style: Drinking coffee for free in 10 days And many others activities Maintain by its strategic triangular: 1+2 9 Market strategy 3

10. Market strategy 10 Sustain success Diversification Development Expansion penetration Market strategy 3

11. Market expansion Oversea market expansion with flexible franchising system: First franchised in Singapore market The Brand appeared in Japan, Thailand, Singapore, China and Czech Rep. Also appeared in supermarket in US, EU, Russia.etc 11 400 café in Japan Clark, Singapore Market strategy 3

12. Market strategy 12 Sustain success Diversification Development Expansion penetration Market strategy 3

13. Product development 13 Creative 2 Creative 1 Creative 5 Creative 4 Creative 3 Creative Invest in deep for Product Development Enjoy coffee with your own style Market strategy 3

14. Market strategy 14 Sustain success Diversification Development Expansion penetration 3 Market strategy

15. Diversification (1/4) Trung Nguyen has created more than 30 coffee products, each with unique aroma Create specific products for different market segments Create 9 levels of aroma for each product and make it as the unique style of Trung Nguyen coffeehouse 15 3 Market strategy

16. Diversification (2/4) Premium 16 Diamond (1-5) Legendee Weasel kopi luwak 3 Market strategy

17. Diversification (3/4) Mid-level Products 17 Creative (1-5) Passiona : low coffein coffee Gourmet Blend Mix coffee 3 Market strategy

18. Diversification (4/4) 18 Distribution of popularity of coffee brands by coffee types (%) in Vietnam 3 Market strategy

19. 3.3 Branding strategy 19 Sub-brands: G7 for instant coffee Weasel kopi luwak and Legendee Passiona Creative Branding strategy Franchise: Building success upon partner’s success. 3 Develop and protect Brand

20. 3.3 G7 : successful sub-brand 20 Convenient Shop system 3 Develop and protect Brand

21. market expansion by franchise strategy 21 3 Develop and protect Brand

22. II. Mission and Values 22 Slogan “Creative Inspiration” Trung Nguyen Mission Create a leading coffee branch enriched by Vietnamese culture. Brining to everyone a source of creative inspiration and enjoy by their own styles Develop and protect Brand Strong human resource asset Promote social responsibilities and community development Inspire the source of creativity Market strategy Midterm Presentation Competitive strategy Final Presentation 3

23. Competitor analysis 23 Competitive strategy 3

24. Positioning strategy of Trung Nguyen Corp. 24 Competitive strategy Trung Nguyen Nescafe Vinacafe MacAfee Price Benefit 3

25. Competition strategy 25 Innovation as key point to compete With the motto: “to defeat the foreign brand in Viet Nam before go to the world”. Trung Nguyen has changed the face of the market share of soluble coffee in short time: Nescafe reduce market share of 45%, accounting for 21% G7, the rest belong to others. This is result of product innovation strategy of Trung Nguyen at the strongest time. Weasel Coffee US$ 3,000 per kilo Passiona coffee for women Clubhouse top of famous mountain Competitive strategy 3 Leader portrait made by coffee bean

26. Competition strategy 26 Widening its vertical chain: Opening it’s own distribution channel: G7 mart Investment in developing and growing coffee plantation Competitive strategy 3

27. Trung Nguyen organizational structure 27 Strong human resource asset 3

28. Human resources Name Position % stock share Shareholders 1 Mr. Đặng Lê Nguyên Vũ Chairman 23.89% 2 Ms. Nguyễn Thị Thu Trang Committee member 0.05% 3 Mr. Nguyễn Văn Hoàn Committee member 23.77% 4 Mr. Hoàng Nguyên Học Committee member 8.6915% 5 Ms. Nguyễn Thị Hồng Committee member 10.0598% Executive Board 1 Mr. Đặng Lê Nguyên Vũ CEO 23.89% 2 Ms. Nguyễn Thị Thu Trang CFO 0.05% 3 Mr. Nguyễn Văn Hoàn Chief Logistic Director 23.77% 4 Mr. Hoàng Nguyên Học Executive Director of Material Development 8.6915% 5 Ms. Nguyễn Thị Hồng Project Manager 10.0598% 28 3 Strong human resource asset

29. Social activity 29 Social responsibilities and community development 3 Corporate with Thanh Nien Newspaper to launch " Innovation for Vietnam Trademark " program found the investment fund " Creative inspiration " which financing for the winning contestants on the show's Business Start VTV3 Support the charity program "Connect the heart rate" to perform heart surgery for children with congenital heart disease Trung Nguyen always the important sponsor for any summit in Vietnam and provide the official coffee drink to those summit.

30. Analysis 30 SWOT analysis 4

31. Recommendation 31 Expand in new market segment: canned coffee Concentrate on main product line instead of too diversify: G7mart, etc. Standardize franchising system 4

32. Conclusion Create more value to customers by: Provide customers with a lot of choices with good quality Provide each customer unique style of drinking coffee Trung Nguyen café is not only the place to drink, but also sharing the way to taste coffee Raising Vietnam Coffee Value 32 B C Control reasonable cost by : Take advantage of abundant coffee raw material in Dak Lak Franchise helps Trung Nguyen expand its system with low cost Strong human asset and creation also help Trung Nguyen lower the cost 4

33. THANK YOU