Trung Nguyen coffee – Truong Van Hung TRUNG NGUYEN COFFEE THE BEST COFFEE IN VIETNAM Founding story Introduction: Trung Nguyên involves in the production, processing and distribution of coffee Trung Nguyên is the leading domestic coffee brand within Vietnam, and exports its products to more than 60 countries like: USA, EU, China, etc Idea for business: In 1996, Vietnam was one of the leading coffee producers in the world, but almost solely producing "green" coffee (unroasted beans) This resulted in no control over the final coffee quality or prices The Highland region of Vietnam is one of the world's "top 10" best environments The owners of Trung Nguyen saw that the future for producing gourmet coffee and being reasonably independent of the world co mmodity markets was to once again follo w the best possible growing and processing techniques to produce a world class coffee, and carry it through all the way to the packaged product Key pl ayers: On June 16, 1996, Dang Le Nguyen Vu founded Trung Nguyen The initial cap ital investments consisted of only an old bike, unwavering faith and strong will o f youth as well as a genuine desire to build a famous coffee brand, bringing the flavor of Vietnamese coffee to all corners of the world Key factors of success Marketing strateg y: 4Ps of market ing, emphasized on Production and Place (franchised store) Trung Nguyen coffee is a co mb ination of good materials, high technologies, Eastern’s secrets and new opinion about coffee, making inimitable secret formu la and unique flavor Trung Nguyen has been giving its coffee-lovers a unique environment to experience Vietnamese coffee culture through its gourmet coffee cup A coffee philosophy transcends language and culture “Coffee is not just a simp le drin k, but an inspiration to human creat ivity” This philosophy has been the guideline in co mpany’s franchising system development strategy Uni que know-how: Trung Nguyen coffee is co mbined and refined fro m famous kinds of coffee in the world including Vietnam, Ethiopia, Jamaica, Brazil and Colu mb ia to achieve the most special ingredients & flavors by the latest technology Through the careful selection of Vietnamese Highland’s finest coffee beans and the application of Trung Nguyen’s unique know – how in roasting and brewing, a gourmet coffee brought to customers with variant of flavors and aromas With a wide product portfolio ranging fro m ground coffee, espresso to whole beans categories, Trung Nguyen proudly satisfies the mutable needs of its coffeePage lovers around the world Company’s strateg y: “In Trung Nguyen, we select the best coffee beans mixed with the tremendous passion to create perfect energy source for brain, to assist creativeness and success, to connect and develop a community of loving coffee for the prosperous and sustainable world.” Target market: Do minating domestic market, conquering international markets, develop franchise system in Viet Nam and foreign countries as well The expansion of the market based on both national network & international network d istributors National network includes a nationwide network of distributors, supermarkets, resorts, bookstores and thousands of retail shops & coffee shops In international network, Trung Nguyen has distributors in more than 40 countries like US, Canada, Australia, EU, Japan, Ch ina, etc The main export markets are the center economic in the world, the stable business environment, polit ical stability Consumers have the habit of using good quality products, high prices, the co mpany will not under pressure to reduce costs Key factors for success (5 key factors): Firstly, the Co mpany has a competitive advantage of perfect geographical conditions for growing and develop ing coffee market Secondly, Trung Nguyen was one of the pioneers of roasting coffee in Vietnam at that time when there were not so many co mpetitors, so the Co mpany seized a great opportunity to expand the market and position its brand Thirdly, the Co mpany has wellmanaged system and advanced technology (Eurep GAP, HACCP certificates) Next , Trung Nguyen developed the unique know-how of coffee selecting, roasting and brewing procedures Finally, the co mpany set up a clear and effective marketing as well as company strategy Reflection Conclusion: Trung Nguyen coffee still has great potential to develop & expand the market Trung Nguyen brand becomes more & more similar with coffee lovers around the world However, the co mpany is also in strong competition with international coffee brands such as Nestle, Maccoffee, Starbucks coffee, etc Lessons: 1) Good businesses usually come up with a great idea beyond money 2) Clearly understanding your local potentials & local cultures is one of the keys to succeed in business 3) Market ing strategy is always important for business