Trung Nguyen Coffee: Coffee Exports To The US

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TRUNG Coffee

Exports
NGUYEN to
the
COFFEE US
GROUP 5
Phạm Quốc Lâm
Trần Anh Dũng
Vũ Thanh Hiếu
Phan Hồng Loan
Lê Quang Huy
I.COMPANY PROFILE
HISTORY
In 2000,
On June
Trung
16, 1996, In 2014,
Nguyen
Trung Trung
was
Nguyen September In 2008, Nguyen
present in
was 2002: the launched a
Hanoi,
established Successful company Coffee
implementi
in Buon franchising established Supermar
ng the
Ma Thuot in an office in ket -
franchise
city Singapore. Singapore. cafe.net.vn
model

On August 2001 On In 2012,


20, 1998, Successful 11/23/2003 Trung
Trung Franchise Trung Nguyen
Nguyen's Company Nguyen's became the
first store in Japan G7 instant most
opened in coffee favorite
Ho Chi brand was coffee
Minh City born brand
among
Vietnames
Slogan of Trung Nguyen:

MISSION “Khơi nguồn sáng tạo”

“Connecting and growing coffee lovers and


enthusiasts around the world”

Faith of Trung Nguyen:


Coffee makes the world a better place
Coffee is the energy for the Knowledge Economy
Coffee brings creativity towards harmony and
sustainable development
VISION VALUE

"Becoming a corporation that promotes Big ambition


the rise of the Vietnamese economy,
National spirit, international spirit
maintains the national economic
autonomy, and arouses and demonstrates Constantly creating and breaking through
an aspiration of the country Dai Viet
discovers and conquers." Well executed
Value creation and sustainable
development
PRODUCT
1. PREMIUM TRUNG NGUYEN
COFFEE:
 Weasel weasel coffee Legandee weasel coffee Creation 8
2. ROASTED COFFEE
Group of popular Group of processed Creative product group
roasted and ground products
products
Processing 1 Creation 1
Aspiration letter I

Processing 2 Creation 2

Conquer the letter S


Processing 3 Creation 3

Processing 4 Creation 4
House Blend

Creation 5
Processing 5
3. PURE COFFEE BEANS
Arabica bean coffee Coffee beans Culi Robusta
4. G7 INSTANT COFFEE
G7 coffee includes 3in1, 2in1 (Iced Black), Instant Black, Strong Gu X2 (2in1 and 3in1), Cappuccino,
Passiona and White Coffee.
G7 3in1
G7 2in1 (Stone Black):
G7 Black Soluble (no sugar)
Strong G7 Gu X2
G7 Cappuccino:
G7 Passiona:
G7 White coffee
5. NATURAL COFFEE
Traditional fresh coffee with rich, Stylish fresh coffee with a smooth,
popular flavor. characteristic aroma.
CERTIFICATIONS AND
HONORS
The 2012 National Brand Award mentioned
Trung Nguyen brand.
National Quality Gold Award 2011
Vietnam Gold Star Award 2010
Award for high quality Vietnamese goods
Trung Nguyen Coffee was selected by the
Ministry of Foreign Affairs as "Cultural
Diplomatic Ambassador"
Certificate of Excellence in Asia - Pacific
Enterprise 2014
INTERNATIONAL
OPERATION
1. Trung Nguyen Group’s US market penetration strategy:
Period through normal export
In early October 2011, G7 instant coffee of Trung Nguyen Coffee Company officially entered the retail supermarket system of two leading
corporations in the world, Costco (3rd in the US) and E-Mart (No. Korean).
The first order of 100 containers of G7 instant coffee will be delivered to Costco and 15 containers to E-Mart between now and the end of 2011.
To enter these supermarkets, G7 instant coffee must pass many rigorous testing steps by international inspection units SGS and Bureau Veritas
representing these two partners. Must meet more than 20 criteria, from factory policy, equipment infrastructure, processing technology, research
and experiment, to raw materials, inspection process, quality control production, storage, transportation, environmental sanitation, occupational
safety, as well as regulations and policies on working with suppliers… G7 is the first Vietnamese coffee brand present in the Costco system. .
Penetration through franchising
Trung Nguyen approaches the US market, in addition to exporting goods, will open Trung Nguyen restaurant after the agreement on franchising
of Trung Nguyen in this country. Vietnamese coffee has been exported to 59 countries and territories, most concentrated in EU countries,
Singapore, Hong Kong, Japan and the United States. The G7 - Mart model is also a form of franchising that Trung Nguyen is implementing to
dominate and compete with foreign distributors. Trung Nguyen's G7 - Mart model continues to be considered a breakthrough in franchising to
compete with foreign distributors to dominate the retail market. Rice Field Company (USA) officially accepted to be Trung Nguyen’s agent in
2003.
2. PRODUCT STRATEGY

Trung Nguyen (R&G) and G7 (instant)


instant coffee have really made solid steps in
the US. Trung Nguyen receives a large
amount of support from its partners. This
Vietnamese coffee brand exports indirectly
through intermediary exporters.
G7 coffee products:
+ G7 3 in 1
+ G7 2 in 1
+ G7 dissolves black
+ G7 cappuccino
3. CHALLENGES WHEN TRUNG NGUYEN ENTERS THE US MARKET

Names that are difficult to read


TRUNG NGUYEN is a Vietnamese name that is
not easy to pronounce for foreigners and perhaps
Trung Nguyen’s branding team knows this. They
need to choose a different name, but if so, right
now they need to focus the story around the new
name that will fight Starbucks.
A good suggestion is the G7, for two reasons
Firstly, G7 is the name of instant coffee that has
appeared in shops in Vietnamese quarters in other
countries, and is also quite popular.
Second, Trung Nguyen has painstakingly built a
story behind this brand. Would you like to drink
the coffee once enjoyed by heads of state?
3. CHALLENGES WHEN TRUNG NGUYEN ENTERS THE US MARKET

Culture of drinking coffee


In the US, time is very tight, so the need of
Americans is how to have a delicious cup of
coffee without spending a lot of time waiting.
People can stop the car, go into the shop to buy a
cup of coffee and then leave within a few minutes
and the coffee is still delicious. What they need is
quick and cheap without losing the true bitter
aroma of coffee.
Just like Vietnamese people feel unfamiliar with
the $3.5 coffee in Starbucks paper cups,
Americans probably don't have the patience to
watch every drop of coffee drip into the cup.
3. CHALLENGES WHEN TRUNG NGUYEN ENTERS THE US
MARKET
Brand domain name
After the Legendeecoffee brand domain name was acquired by others, Trung Nguyen was at risk of being blocked from exporting
Legendee Coffee branded coffee in the US market.
On the USPTO’s system, it has also shown that the copyright of Trung Nguyen Coffee, G7 coffee and Trung Nguyen brand is owned
by Trung Nguyen Vietnam, but Trung Nguyen does not register the copyright of Legendee Coffee.
Thus, if Trung Nguyen wants to develop the Legendee Coffee brand in the US, it will have to negotiate with the owner of the
Legendee Coffee brand in this country.
The cost of licensing Legendee Coffee in the US was revealed to be 165 USD, equivalent to more than 3 million VND.
Main competitor in the US is Starbucks
In the US and many other countries, Starbucks is known as a “take away” coffee - coffee bought to take away, the cafe is also
compactly designed and has limited seating. The strategy that Trung Nguyen chose to make his mark was to associate his name with
another already well-known name, Starbucks. Trung Nguyen wants to buy roasters in the US and open stores in Seattle, New York
and Boston this year. This intention of the largest coffee retailer in Vietnam was made right after the world's largest coffee restaurant
chain, Starbucks, opened its first store in Ho Chi Minh City.

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