topic propose a new product coconut milk coffee to highlands coffee and propose a plan to launch this new product

Vietnam and a strong passion forcoffee.- Originating from the desire to elevate Vietnam''''s long-standing coffee heritage,spreading the spirit of pride and harmonious connection between tr

FPT UNIVERSITY- CAMPUS CAN THO

Group Assignment [MKT101]

COFFEE TO HIGHLANDS COFFEE AND PROPOSE A PLAN TO LAUNCH THIS NEW PRODUCT.

Name of group memberContribution (%)

1 Lâm Nguyễn Thúy Vy ( 20%)2 Hồ Hồng Bảo Ngân ( 20%)3 Huỳnh Cao Minh Thông ( 20%)4 Nguyễn Thành Phúc ( 20%)5 Nhâm Hoàng Thiệu ( 20%)

Cần Thơ, 7/2022

TABLE OF CONTENTS

I INTRODUCTION 1

II METHOD AND CONCEPTUAL FRAMEWORK 1

III ANALYSIS RESULTS 1

1 Overview about the company 1

2 Analyze the current status of the company's products in the market 3

3 Target market and customer The need of target markets & customers for the company 5

4 Suggest new products, value of benefits Brand value and the positioning statement of the new product 5

5 The competitors of the company 6

6 A plan to launch this new product 7

a Objective of your marketing 7

b Target customers 8

c The communication message and content 8

d Demo Poster 9

e Total budget of the plan 9

f How to get feedback result 9

IV CONCLUSION 10

V REFERENCES 10

I INTRODUCTION

Highlands Coffee is one of the famous coffee brands in Vietnam market With thededication in offering quality and diverse products and a quiet, polite space suitable forall ages from students, office workers, elites, Highlands receives very high rating fromcustomers Besides these successes, the competitive market also requires Highlands toincreasingly diversify products and not only satisfy the demand for newness fromcustomers Therefore, with our knowledge, our team would like to propose to Highlandsa new product - coconut milk coffee - as well as a marketing strategy for that product.

II METHOD AND CONCEPTUAL FRAMEWORK

In this new product strategy, our team uses the knowledge of marketing strategies thathave been learned First of all, it is about the brand expansion strategy, we choose theproduct expansion strategy in a typical product portfolio of the brand, developing in thedirection of adding a product with a new flavor combination to attract customers'curiosity Next is the product promotion strategy by public relations through promotionalvideos and videos, post reviews of famous KOLs and through the sharing of customers'own experiences at the store I hope it will be useful for this new product launch in ourplanning.

III ANALYSIS RESULTS

1 Overview about the company

- Highlands Coffee - a famous coffee brand in Vietnam, belongs to Viet Thai InternationalJoint Stock Company (VTI), founded in Hanoi in 1999 by David Thai - an overseasVietnamese businessman with great love for coffee Vietnam and a strong passion forcoffee.

- Originating from the desire to elevate Vietnam's long-standing coffee heritage,spreading the spirit of pride and harmonious connection between tradition and modernity- Highlands Coffee was born from the goal of becoming the most loved brand, servingVietnamese people anytime, anywhere.

- The outstanding development stages of Highlands Coffee:+ 2000: Started with packaged coffee products in Hanoi.

+ Since 2002: Quickly developing into a famous coffee shop brand and constantlyexpanding domestic and foreign activities.

+ 2008: Served more than 4 million cups of coffee along with 2 million meals to 5million customers (A very respectable number for established coffee and fast foodbrands in Vietnam).

+ 2014: Reaching 75 stores in big cities from North to South.+ 2016: Reaching 100 stores.

+ 2017: Opened more than 200 stores nationwide and won the Global MarketingAward.

+ Up to now, there are more than 300 stores in 26 provinces and cities.

The outstanding development stages

- For more than two decades, Highlands Coffee has always brought delicious, qualitycoffee with hand graded coffee, freshly roasted every day Not only coffee, other drinksas well as food (specifically bread) are also highly appreciated for their quality andvariety The space is comfortable, polite, the service attitude is warm, enthusiastic and theprice is stable.

* Brand positioning

- For a long time, Highlands has positioned itself very well in terms of "coffee forbusinessmen" and "coffee for high-income intellectuals" But later on, Highlandsexpanded its brand positioning in many different ages, including students and middle-income people who can enjoy products at Highlands In the long term, Highlandspromises to always bring customers quality and diversified products that are suitable formany customer segments and their needs for a quality coffee brand with delicious taste.Great space and great service.

2 Analyze the current status of the company's products in the market

Highlands Coffee is trading mainly 2 main product groups: Food and Drinks.

- About Food, Highlands Coffee has cakes and breads Bread is one of the products thatreceive positive feedback from customers because it is a popular dish for Vietnamesecuisine, famous in the international market Moreover, bread is suitable for all customersof all ages, can be eaten anytime and anywhere.

- About Drink, Highlands Coffee is divided into 3 main groups: Tea (the representative ofyellow lotus tea), coffee (the representative of iced milk filter), and freeze (therepresentative of freeze green tea) These are products that are considered “Best sellers”,highly appreciated by customers for their quality and taste In addition to products servedon-site, Highlands also trades in many other products such as packaged roasted coffee,canned coffee, fashion mugs, water bottles, etc.

Drink and Food

- Highlands Coffee products are sold at different prices ranging from 29,000 to 75,000VND In addition to direct selling, Highlands also implements take away form throughcooperation with delivery units such as Grab, Baemin, Shopee food, Gojek,,… so thatcustomers can easily buy products wherever they are In addition, the company alwayshas special promotions for customers who order takeout Even customers who order onthe app have a better price than when buying at the shop Moreover, Highlands' packagedproducts are also sold in supermarkets and convenience stores nationwide.

Menu of Highlands

Products os Highlands Coffee

- However, due to "market volatility", Highlands Coffee recently announced an increasein product prices Immediately after the announcement was made, many followers ofHighlands Coffee expressed dissatisfaction, even saying "break up" with the brand Somecustomers sympathize with the brand Despite the difficulty of making the decision toraise prices, Highlands Coffee always seeks to affirm and preserve the value ofVietnamese coffee beans with a unique filter-making culture, wherever the brand'sfootprint is located.

3 Target market and customer The need of target markets & customers for thecompany

* Market and customers

- Customers in Highlands are mostly teenagers and adults, office and young consumers,middle-income and even upper-class people Highlands stores always create a relaxing,modern and quiet space suitable for lifestyles of all ages and activities for working,studying in groups and gathering with friends.

- Highlands stores are spread from North to South and are located in prime locations inthe city center Concentrated mainly in economic center areas such as Hanoi and Ho ChiMinh City Open at any time frame both during the day and at night (usually from 8:00 to22:00) even on holidays, Tet and often crowded at peak hours All of this helps Highlandsto have a diverse target market with customers from middle to high income workers,foreign tourists and even students to expand its market share more.

* The need of target markets and customers

- Choosing a reputable coffee brand helps customers affirm their social status as well asfeel appreciated Besides quality, customers also pay attention to the variety of products,so Highlands needs to have more new products to suit the needs of customers.

- At the same time, with the current fiercely competitive market, Highland is required tohave more innovation, originality, creativity or to have more new and diverse dishes inthe menu to be able to compete with other brands other.

4 Suggest new products, value of benefits Brand value and the positioning statementof the new product

- With a competitive market, Highlands Coffee is required to diversify its products butstill retain its characteristics, so the group has a new product proposal that is "coconutmilk coffee" This is a drink that combines the characteristics of Highlands as coffee andadds a new fatty aroma from coconut milk, both combined will create a boom Not onlythat, the product also has high health value, it provides energy and is especially low incalories.This boom is sure to generate high profits.

- As a famous Vietnamese brand, the design ideas of Highlands Coffee are inspired bycoffee beans imbued with national values Highlands sells quality products, building corevalues associated with coffee beans and tradition Each product is carefully designed,focusing on quality and taste.

- New product positioning: Coffee with coconut milk is a new combination, instead ofcoffee combined with fresh milk, it is now combined with the fatty aroma of coconutmilk Targeted to be sold to all ages but mainly focused on those who like low-caloriefoods or people who are losing weight but still want to enjoy coffee at Highlands.

Besides, it also sells to office workers, students - who go to work early in the morningand need an energy product - and coffee enthusiasts.

5 The competitors of the company

- As a company with extensive experience and success in other countries, it is easy to seethat when returning to Vietnam, Starbucks is completely a big competitor.

* Strength:

- Brand influence: Starbucks is now a famous beverage brand around the world, so whenreturning to Vietnam, the level of curiosity and customer attraction is higher Especiallybecause this is an American brand, a global economic power known for the quality of itsproducts.

- Coffee standards: Even in different countries, they maintain the brand's standard qualityand distinctive coffee taste Offering the best coffee experience for those who enjoystrong flavored coffee.

- Solid economic foundation: In 2019, Starbucks achieved revenue of about $26.5 billionand profit of $3.6 billion This is really a record business result, a favorable situation forStarbucks to grow faster.

- Policy and strategy: They have successfully completed the task of determining marketshare of customers and characteristics of Vietnamese people Moreover, they have apolicy of balancing profit - culture, with environmentally friendly production processes,and good staff policies.

* Weaknesses:

- High price: because Vietnam is a developing country As a result, the middle incomemarket share is still larger than other countries, making Starbucks less attractive at thehigh end.

- Lack of variety: despite its success in product quality and environmental friendliness,people will remember Starbucks as a beverage and fast food outlet rather than a brandedproduct.

- The taste of the locals: Starbucks has the same drink menu in each country, which isbeneficial for production, but the big downside is that it doesn't suit the taste of the locals,especially is the Hanoi area, where there is tradition and strict coffee.

6 A plan to launch this new product

a Objective of your marketing * Marketing plan:

- Play promotional videos on Facebook of Highlands and Youtube.

- Let customers try the product for 1 week.

- Through well-known and trusted KOLs to test the product and provide feedback toattract customers more interested in the actual use and experience of the product Thespillover to customers will increase thanks to these objective views.

- Display posters at stores and large banners at crossroads to attract the attention of manycustomers.

- Search Engine Optimization (SEO) Users will love your brand more if it performs wellin Google searches for related keywords, customers have more opportunities to interactwith the brand The popularity and trust level of customers will quickly increase Manyconsumers who have never used it will garner interest, laying the foundation for word ofmouth marketing, a tactic that never goes out of style and goes viral with a high level ofcustomer trust.

* Objective of marketing plan

- Revenue: for a branch in 1 month (30 days), plan to sell about 500 cups of product foreach size in a day, the price will be divided by size.

+ Small size: 39.000 VND+ Medium size: 48.000 VND+ Large size: 54.000 VND

Total expected revenue: 70.500.000 VND- Evolution:

+ Attraction: achieved more than 100.000 interactions on social network accounts ofKOLs Reached more than 1.000.000 searches.

+ Retain 70% of customers who buy the product again after a 1-week trial campaign.+ The share of customers who have tried it reaches 80%

+ Market share: about 0.7% for coffee categories at coffee brands.

- Brand awareness: When mentioning Highlands, it is impossible not to mention coffeeand especially the fresh and fatty taste of new products Leave a unique experience,remember in the hearts of customers

b Target customers

- Coconut milk coffee is a drink that is not too strange for coffee enthusiasts This is adrink suitable for all ages From the elderly to the young, everyone can enjoy a cup ofcoffee with a fresh taste, which will help you full of energy for a working day We may betoo bored with regular coffee, we want to change the taste a bit, coconut milk coffee isnot a bad choice Coconut milk is described as an “energy” food, meaning that when it

enters your body – it burns more fat Every day you drink coffee, mixed with coconut oil,burns 120 Calories in the body In addition to the direct calorie-burning energy, coconutmilk coffee can also help you feel full, so weight loss will be effective Weight losspeople still want to enjoy a delicious drink but also want it to not contain too manycalories This shows that coconut milk coffee is also very suitable for customers who arelosing weight, they can use it comfortably without worrying about gaining weight.Coconut milk coffee is recommended as a good drink when going to work in themorning, because it has the effect of improving work productivity, suitable for officeworkers or people who often go to work early (students) every morning Office workersand students early in the morning are the ones who need a delicious drink and give themenough energy for a working day The upper and middle classes can both enjoy this novelflavor without worrying about the price.

c The communication message and content

- Promoting program: “Cà phê cốt dừa - thơm béo - đậm vị Việt Nam”

- Message: Coffee with coconut milk - a delicious, special drink that brings out thecharacteristics of Vietnam The combination of greasy coconut milk with a bit ofbitterness of coffee brings something special to this drink This is a drink for those wholove coffee but like the creamy taste With an exclusive formula, a high quality coconutmilk coffee will satisfy the most fastidious customers.

- Form of promotion:

+ Poster and TVC advertise new dr on the main fanpage and branch fan pages ofHighland on Facebook, Instagram, In the ad, mention the taste of coconut milkcoffee - a special combination

+ Advertising banner and poster for a new drink – coconut milk coffee - Vietnameseflavor At the same time, customers can trial new drink at a promotional pricewhen buying combos of 2 drinks or 1 drinks and 1 cake.