IV.

Competitors:
Direct competitors : Highland Coffee's direct competitors include The Coffee House, Trung Nguyen
Legend, Phuc Long, Starbucks, etc.

In 2020, Highland coffee continues to be the largest coffee chain in Vietnam with a total revenue of
nearly VND 2,140 billion and the 2nd place has a disturbance, when The Coffee House with a relative
decline has fallen to 3rd place. Phuc Long grew slightly, rising to No. 2. The situation at Starbucks is
not much different from The Coffee House. These three coffee chains recorded revenue in the range
of 700-800 billion VND.

Phuc Long

If you are a fan of milk tea, surely no one can ignore the formidable name Phuc Long. It can be said
that Vietnam is one of the famous countries for tea. Therefore, the taste of Vietnamese people
about this food group has also become more demanding and strict than common sense.
Understanding that, Phuc Long researched and developed new tea flavors but still kept the tradition.
(unique USP research)

Like milk tea, the same hot product on the market, Phuc Long sells at a relatively soft price. A cup of
tea only ranges from 35,000 - 75,000 VND/cup, equal to 50 -70% compared to the selling price of
Trung Nguyen and 30 - 50% of Starbucks, The Coffee Bean, and Tea Leaf. => With a "comfortable"
price, it is one of the ways to help Phuc Long bring its brand to all consumers in the fastest way.
Phuc Long's menu is also very rich with 63 different milk tea flavors. With coffee-flavored drinks,
outstanding drinks can be mentioned such as caramel coffee, rich milk, cappuccino, vanilla coffee,
mint iced coffee, etc. In addition, tea dishes are also popular with young people such as peach tea.
milk, red milk tea, Tieguanyin tea...

The coffee house

The Coffee House was founded by Mr. Nguyen Hai Ninh and held the CEO position in the early years.
In 2014, Mr. Ninh founded The Coffee House chain with the first stores with the inspiration, "Going
for coffee" has long been not only a cup of coffee but also an opportunity to meet and chat with
friends. . The Coffee House values the connection between people and customer experience.

Space features : The Coffee House has the atmosphere of a teenager, leaning towards office space
and workspace. Usually appears in places with a large number of teenagers and major roads

About customers : The Coffee House targets middle-class students who like to experience luxury
cafes but with local prices (ranging from 30,000 VND to 65,000 VND).

Taste menu : The coffee house's menu is somewhat similar to highland coffee, but the taste of both
shops is different for coffee lovers, Highland is always the preferred choice, Golden Lotus Tea and
Tea Peach is also another popular dish in these two brands, but the taste of Highland is more
delicate and fragrant.

Indirect competitors : Besides major competitors such as The Coffee House, Phuc Long, etc.
Highlands also have competitors for substitute products such as famous tea brands: KOI THÉ, The
Alley ,Toco Toco,.. Besides instant coffee products such as G7, Nestcafe, Vinacafe,...

In addition, on the market, there are a variety of beverage products rich in design and taste such as
Coca cola, 7 up, etc., which are strongly competitive products in the youth segment market.

2.Suppliers
The domestic supply is relatively abundant, Vietnam has recently surpassed Brazil to become the
world's number one coffee exporter. Vietnam's annual output in recent years fluctuates around 1.4 -
1.6 million tons/year. Currently, Vietnam's coffee-growing area is 571,000 hectares.

However, the expansion of the chain of stores will make Highlands Coffee difficult in terms of high-
quality supply because in Vietnam currently, the production of coffee produced only accounts for 3-
5%.

Highlands Coffee puts all its faith in giving customers the most exquisite coffee experience. All stages
are carried out to strict and strict standards, so they only work with reputable suppliers for the best
grade A coffee beans. To preserve the best coffee beans, the Sanaky refrigerator freezer provided by
Winline Vietnam is one of the products trusted by Highland Coffee.
Highlands especially attracts customers with its filter coffee products, which is partly thanks to the
company's own wise choice when choosing premium Robusta and Arabica coffee beans grown in the
highlands of Vietnam like Buon Ma Thuot, Lam Dong,...

5. Publics

Financial Public.

Highlands Coffee is owned by Viet Thai Group, founded in 2002 by David Thai, an overseas
Vietnamese. However, in 2012, this brand was transferred to a foreign enterprise, Jollibee of the
Philippines. This group spent 25 million USD to buy 49% of the Vietnam business division and 60% of
the business division in Hong Kong (China) of Viet Thai International Group, which is owned by
businessman David Thai. Besides, Jollibee lent David Thai's company an additional $35 million at 5%
interest.

According to the Jollibee representative's share with the press, this money will be invested by Viet
Thai in the future. Currently, Jollibee has raised its stake to 60% in the joint venture company
SuperFoods Group established after the deal with David Thai.

Media publics.

Highlands's communication team is very active to launch programs and events to attract customers.
Communication activities also help the brand get closer to customers. Highlands coffee has had
many good activities in the media.

- Organize programs with the presence of famous artists at Highlands' festivals to attract young
customers, and thereby promote the brand.

-Create incentives for customers, along with promotions, vouchers, ... also attract a large number of
customers.

- Having its fan page for each store helps consumers easily find out and choose the best service and
is also a tool to get closer to customers.

- Highlands coffee also has its website to serve customers who can follow the brand, most
conveniently, and for consumers to conveniently learn about products and know more about them.
company before the experience.

Government publics.

The management of Highlands Coffee is always interested in government implementations, and

marketing experts regularly consult with lawyers in the company on issues of food safety,
authenticity in advertising, and other issues to minimize situations that may be detrimental to their
company. Highlands coffee always cooperates well and transparently with strict government checks
on food safety and ensures the company's ingredients

Citizen action publics.

A corporate marketing decision can be a matter of consumer organizations, environmental groups,
minorities, and other groups. The public relations department can help the company reach out to
consumer and community groups. Community activities will help Highlands come closer to
consumers, and directly promote the brand to customers.

Local publics.

Every business must communicate with the local community such as local organizations, neighbors.
To maintain each relationship, Highlands often appoints a local communication specialist and
organizes meetings to respond to local questions, comments, or contributions.

General public.

The company is very concerned with the general public's attitude towards its products and
operations. The image of the company in the public eye will affect the purchasing power, so
Highlands Coffee regularly surveys the taste of consumers, and the company also regularly has
meaningful community activities to increase its image value. of the company. : “Highlands Coffee
with the idea of “Green Lantern” to light up the “Green Mid-Autumn Festival” for more than 700
children”, “Modernize Dong Ho paintings”, “Love Mid-Autumn Festival- Class for children 2017”. This
action is to make the Highlands win sympathy and advantage in the hearts of the public.

Internal publics.

This group includes workers, managers, volunteers, and the board of directors. Managers, staff, and
volunteers are generally young, dynamic, and enthusiastic, so they always give customers a feeling
of full of energy. They work very flexible and often support each other to save time.

6. Customers

The customers that Highlands Coffee targets are the middle class, office workers, and the dynamic
young generation.

Drinking coffee here makes customers feel that they belong to the upper classes. Or customers from
the upper classes, who can't drink coffee at an ordinary shop without a brand, have to drink at
Highlands Coffee - where the brand is reputable, partly to affirm their class.

Highlands Coffee always focuses on creating a comfortable and exciting atmosphere for customers
to enjoy every day.

Highlands Coffee is a reasonable place suitable for business people when doing business, negotiating
contracts with partners in a luxurious space.

Combined with enjoying coffee, customers coming to the cafe also have the purpose of relaxing and
de-stressing after stressful working hours, especially for office workers.

Highlands also target a group of customers who are young businesses, who have studied abroad, so
they are familiar with European - American styles such as drinking coffee at a luxury restaurant,
highlighting the style of the place they used to live.

For young people, Highland Coffee is often a meeting place, group meeting, or dating.
Macro

1. Demographic environment

The current population of Vietnam is more than 98 million people as of November 2021, according
to the latest figures from the United Nations.

The percentage of Vietnamese people using coffee is quite high, especially in big cities. Of the total
drinks selected for a week in Ho Chi Minh City, this drink accounted for 26%. This number can be
said to be quite high compared to the range of drinks available on the market.

According to the survey, 90% drink coffee with breakfast, 50% drink before breakfast, 10% drink
after breakfast, 10% drink after sports, 10% drink before bed, 90% drink as soon as they wake up.
(cnay làm cái mô hình cx đc) Many times use coffee as if it has contributed to the increasing
percentage of Vietnamese people using coffee.

Therefore, with a chain of stores covering the whole country, Highlands easily becomes a familiar
coffee shop for many people. Customers coming to Highlands coffee are the location and space with
quality products, this is also Highland's strong point for competitors.