GROUP ASSIGNMENT COVER SHEET
Unit Detail
Unit name CONSUMER BEHAVIOR
Lecturer THU NGUYEN
Class CB-S320WSB-1
Student Details Contribution
Student name PHAN DUONG NGOC HANH
Student name TRAN KHANH CHI
Student name NGUYEN DANG MINH QUAN
Student name PHUNG THANH TAM
Student name NGUYEN NGOC TRAM
Student name
Student name
Group Name 3
Assignment
Detail https://drive.google.com/file/d/1CYVdS1D5tZgw5r9YQNQAPLV-
pWgoyvxp/view?usp=sharing
Title Group Report
Link to
Date submitted 06/12/2020
OVERVIEW OF THE MARKET 3
SWOT OF PHUC LONG 6
SWOT OF THE COFFEE HOUSE 7
THE RESEARCH OBJECTIVE & FOCUS GROUP 9
DATA ANALYSIS
12
RECOMMENDATION & LIMITATION 13
APPENDIX 14
REFERENCES 16
2
OVERVIEW OF THE MARKET
Vietnam is famous in the world for its coffee culture. In general, Vietnam is the country with the
second-largest coffee export volume in the world, with a total output in 2015 reaching 27 million
tons (International Coffee Organization). However, according to the World Coffee Association,
the amount of coffee used per capita in Vietnam was recorded at about 3.6%, the lowest among
coffee producing countries. The general data of I.A.M and the report published in 2009 by AC
Nielsen show that Vietnam domestic consumption accounts for only about 5% of the total coffee
export volume, equivalent to 61,000 tons / year (Maria and Santiago, 2012). Currently,
Vietnam's coffee market has not clearly differentiated between the two coffee markets, which are
mass coffee and specialty coffee. Mass coffee can be mentioned as Trung Nguyen in Vietnam or
Taster's choice of Nestlé in America. Special coffee can be mentioned as HighLand in Vietnam
or Starbucks in the US. Compared to the mass coffee market, the specialty coffee market is
relatively small to influence coffee market share.
The growth rate, share
According to data from VIRAC, The Coffee House's revenue reached 669 billion VND in 2018,
successfully reaching the second position in the coffee chain brand sales ranking. At the same
time, The Coffee House grew nearly 100% in revenue. Nikkei Asian Review at the end of 2018
evaluated The Coffee House as one of the chains with the highest growth rate today. The sales
department also reflects the number of stores per chain. In the same year 2018, The Coffee
House had 145 stores, second only to Highland Coffee with 240 branches. However, The Coffee
House is the chain with the highest loss in the leading group, with a negative profit of over 80
billion dong. With the highest gross profit margin in the coffee chains, the main reason for this
chain's loss is too high selling costs. (Hai An, 2020)
Trend
4
Due to the influence of the Covid19 epidemic, The Coffee House encourages and offers many
promotional incentives for customers to use brand apps. Delivery in quarantine has become the
new "ultimate weapon" for The Coffee House to support the sale when the number of app
delivery downloads exceeded 100,000. This is also a success of The Coffee House when it does
not put the store on food delivery apps but rather manages the app for itself.
SWOT OF PHUC LONG
Strengths
The rich menu is also one of the great strengths of Phuc Long, compared to The Coffee House
menu of Phuc Long gives you more choices. If The Coffee House has the strength in coffee,
Phuc Long is more inclined to tea, tea-based drinks make up 4 out of 8 menus.
Weaknesses
Compared with the number of customers coming to the shop, Phuc Long's staff is quite small.
The customers are crowded but there are few employees, so when you come to Phuc Long, you
mostly have to serve yourself. For example, when giving water, the staff will instruct you were
to get a straw or a spoon. If you go about 2 people, the waiting time for water will be about 5
minutes. But if you go in a larger group, the water waiting time will be quite long. Sometimes it
will be a little inconvenient because the shop will run out of parking space, you have to park
your bike at another point then walk to the shop. That is a big minus point of Phuc Long
Opportunities
If customers love the drinks here, they can buy and process if they do not have time to go
directly to the restaurant to enjoy. Usually, the products will have prices ranging from a few tens
of thousands to several hundred thousand depending on the needs of each person. When
choosing the products here, there will be staff to advise you depending on your preferences.
Threat
Techniques are not developed, technologies are not modern compared to The Coffee House,
Phuc Long sometimes still produces poor quality products or has not created more new products.
The space of the coffee shop is usually quite small and the distribution of branches is not as
much as the Coffee House.
6
SWOT OF THE COFFEE HOUSE
STRENGTH WEAKNESS
People-oriented Strategy (1 of 4 Values of Menu: Not so appealing
The Coffee House is Care - We put customers, because customers come
employees, and the community at the centre of more for the spaces and
every decision.) services
Technology: the second pillar of The Coffee Delivery: Do not collaborate
House after Human factors: Free mobile app with Food Delivery Platforms
with over 100,000 users, leading far compared (Baemin, Now, Gojek, ...) -
to other brands (included Pickup, Delivery compared to other
service) competitors like Phuc Long,
Brand Proposition: Even though The Coffee Highlands Coffee, ...
House come into the market rather late, the
brand have filled in the gap in the coffee shop
market for the price from 40,000-60,000 VND
Management: Focus on building employees'
ownership and loyalty; thereby maintaining the
dedication, enthusiasm, sincerity in service as
well as ensuring the quality of the whole
system during the operation. (From 2015, the
company is committed to re-share 15% of the
company's shares to employees from the store
level)
Variety of menu: Besides traditional coffee,
there are also teas, ice-blended, macchiato,
fruit drinks, ...
Good service: Employees are well-trained to
have a good attitude and fast actions towards
customers
Spaces: not only modern but also cozy for
customers to study/work, have a talk with
friends, ...
Place: Over 150 stores at 16 provinces/cities
with the goal to bring the experience as closest
as possible to customers
OPPORTUNITY THREAT
Technology: With the demand from Gen X - Customized menu for
the most potential customers at the moment customers to distinguish with
and the advancement of technology evolution, other brands
the advantage of technology is leading The Unpredictable factors (e.g
Coffee House ahead of its competitors (eg: The Covid-19, people go out less
mobile app with Pick-up service) and it affects The Coffee
The variety and improvement in the menu: House the most as it’s
The Coffee House can release more collections focused on the in-store
of drink to test out customers’ preferences and atmosphere and not the
create its own signature drink in compared to menu)
other brands
Places: More coffee shops to be opened and
served more demand from customers
Collab with Payment Apps (Momo, Loship)
THE RESEARCH OBJECTIVE & FOCUS GROUP
8
The research objective: This research aims to investigate The Coffee House's weakness in the
menu and customer service to originate suggested solving approaches.
DISCUSSION GUIDE
1. Aim: Examine and investigate the Vietnamese coffee market of The Coffee House and
consider the achievement and weaknesses of the brand. Dissociate the pros and cons of
the collected data through recording and statistics to observe the brand's potentials and
drawback. Through this to assess the potential impacts of the transformation that our
group will recommend as well as how the sub-factors will influence this proposal such as
reducing customer consumption, creating more competitors, ......
2. Object: All students at Ho Chi Minh city. Number of participants in a group discussion:
4-5 people / 1 interview
3. Time, place, method, tool:
· Discussion time: 90-120 minutes
· Location: randomly
· Method: surveys by group and questionnaire
· Data collection tools: paper, pen and questionnaire answered.
4. Performers:
· Performer: All team members propose ideas, each person will be in charge
of interviewing several groups.
·
5. Step to conduct a group discussion:
a. Introduce familiarity and state the main topic of the group discussion:
clearly state the purpose and requirements of the topic to be studied and consult
other member's opinions and point of view.
b. Conduct group discussions: Encourage the whole group to present their
arguments positively. After providing their opinion, the team leader will distribute
the task for each person according to each segment of the report and synthesize at
the end of the day. The team leader divides and votes on great opinions and
recommendations.
c. End of discussion: One group member will summarize the main points,
take note of what was assigned to each person.
Discussion content:
1. General information about the interviewers: Age, occupation, hobby, ...
2. Introduce briefly about The Coffee House at the Vietnam market to the interviewee (for
all object):
Brand reviews of interviewees about current coffee brands.
Customer cognition about The Coffee House compared to other brands
The way customer approached The Coffee House
3. How the circumstance of menu concerns at The Coffee House influences consumer
buying behavior:
The situation of limited dish and flavor on the menu affect consumer buying’s
decision
The situation of the menu’s external such as menu decoration, organize, font, ...
Price is restricted and not affordable to some other market participants such as
students, children, ...
If you change the menu, it will positively or negatively affect the customers'
demand.
Customer opinion can or cannot be good ideas for improving brand flaws.
4. How the circumstance of customer service and view concerns and delivering at The
Coffee House influences consumer buying behavior:
Customer service attitude is likely to increase or decrease the need to use the
service in the store. According to Reve Chat, employee attitudes and perspectives
affect the customer experience at the store. These can damage the reputation of
brands as well as affects to loyalty customer
10
How brand employees deal with mild to large conflicts between customers and
customers or customers to employees that give interviewee the most sympathy.
If customers come to the brand for space, should they invest all in this area?
Can we turn customer service or view into a competitive advantage with other
brands?
How do you think about the pros and cons of delivering service?
Covid19 disease has created advantages for home delivery service, but The
Coffee House does not have this service that directly affects the needs of
customers.
5. Evaluate proposals and offer solutions:
If the reform of The Coffee House operation, how will attitudes and needs of
customers be affected?
One group member will summarize all of the information.
Thank you and ending the interview process!
Interviewees profile:
1. Ly Xuan Linh - Age: 21 - Occupation: student
2. Luu Dang Anh Nhi - Age: 22 - Occupation: student
3. Nguyen Hong Khanh Ngan - Age: 20 - Occupation: student
4. Bui Quang Huy - Age: 20 - Occupation: student
DATA ANALYSIS
According to the collected data, TCH receives a score of 3 out of 5 when talking about price,
brand safety and brand reputation. The reason customers choose this specific brand to drink
coffee is because of the taste, rather than the price or the location, which is why, interviewees
have many different options when it comes to choosing between coffee shops. People heard of
TCH through many different places such as social media, family or friends, and most of them
drink coffee with friends at TCH once a week.
When asking the interviewees about the menus of the brands, most of them think that the menu
offers a wide range of options and they do not feel uncomfortable about it. When asking about
opinions about changing the menu, about 42.9% said that they wanted to keep it, while the others
shared that they wanted to change the menu. Overall, the majority of interviewees said that if
they have a chance to change the menu of the shop, they chose to change the decorations.
Considering the services of TCH, the contestants said that TCH’ employees are courteous and
polite as they are very friendly and thoughtful. Half of the people that were asked share that TCH
atmosphere was comfortable, and the space and furniture are fine as well. After completing the
survey, about 57.1% of the interviewees said that they would definitely come to TCH to have a
drink again, while 28.6% of them said that they will need to reconsider it.
12
RECOMMENDATION & LIMITATION
Compared to Phuc Long, The Coffee House is still losing in the market competition, mainly
because of the differences in strategy. For example, other coffee brands have their name and
partnered on several food delivery apps, while The Coffee House only uses their own delivery
service. TCH should have a better advertising strategy because customers might not be aware of
the unique delivering app since the other delivery services such as Now or Foody are far more
famous, and with the partnership with the big delivery apps, other coffee brands could attract
customers much easier than TCH.
Menu improvement: TCH need to make sure that they can attract more customers because of the
products that they provide, not just the hospitality of the service that they offer their customers.
(Most customers reviewed that the services of TCH are good, employees are very friendly)
Perhaps trying some new flavors or products can also help improve the menu.
APPENDIX
PEER EVALUATION FORM
Overview: Do each topic separately but edit them together
MEMBERS ATTITUDE CONTRIBUTION
Phung Thanh Tam + Finished all assigned tasks
as discussed within a group
20%
+ In charge of the following
sections:
Overview of the market
Tran Khanh Chi 20% + Finished all assigned tasks
as discussed within a group
+ In charge of the following
14
sections:
Swot of The Coffee House
Phan Duong Ngoc Hanh 20% + Finished all assigned tasks
as discussed within a group
+ In charge of the following
sections of:
Swot of Phuc Long
References
Appendix
+ In charge of directing based
on an agreed plan, fixing,
checking, organizing, and
gathering all parts including
The Report and PPT of
members
Nguyen Ngoc Tram + Finished all assigned tasks
20% as discussed within a group
+ In charge of the following
sections of:
The Research Objective
Focus group
Nguyen Dang Minh Quan 20% + Finished all assigned tasks
as discussed within a group
+ In charge of the following
sections of:
Data Analysis
Recommendation
REFERENCES
An, H. (2020, September 27). Highland, Starbucks, Phúc Long, và The Coffee House -cuộc 'đại
chiến' về kinh doanh như thế nào?. Retrieved from
https://cafebusiness.vn/highland-starbucks-phuc-long-va-the-coffee-house-cuoc-dai-chien-ve-
kinh-doanh-nhu-the-nao-1709.html
Maria, A.G.P., Santiago, G.V (2012). Cooperation in coffee markets: the case of Vietnam and
Colombia. Retrieved from http://scholar.google.com.vn/scholar_url?
url=https://www.academia.edu/download/30864139/17026051.pdf&hl=vi&sa=X&ei=TIPGX7W
SI86KygTc1qrYBw&scisig=AAGBfm1s9m5zDFPyVPPQjYLLmv1c0JNfHA&nossl=1&oi=sch
olarr
An, Bình. “Vì Đâu The Coffee House Quyết Không Bán Hàng Trên GrabFood Như Phúc Long,
Starbucks, Nhưng Lại Xuất Hiện Trên App MoMo, LoShip?” Kênh Thông Tin Kinh Tế - Tài
Chính Việt Nam, Cafef.vn, 19 Aug. 2020, https://cafef.vn/vi-dau-the-coffee-house-quyet-khong-
ban-hang-tren-grabfood-nhu-phuc-long-starbucks-nhung-lai-xuat-hien-tren-app-momo-loship-
2020081909414945.chn
Như, Quỳnh. “Vì Sao Công Nghệ Là Trụ Cột Thứ Hai Tạo Nên 50% Sức Mạnh Của The Coffee
House?” Kênh Thông Tin Kinh Tế - Tài Chính Việt Nam, Cafef.vn, 18 June 2020,
https://cafef.vn/vi-sao-cong-nghe-la-tru-cot-thu-hai-tao-nen-50-suc-manh-cua-the-coffee-house-
20200618142849046.chn
“Câu Chuyện Thương Hiệu.” The Coffee House, 2020,
https://www.thecoffeehouse.com/pages/cau-chuyen-thuong-hieu
Patel, S. (2020, August 27). 7 Examples of Bad Customer Service Experience (And How to Fix
Them). Retrieved from https://www.revechat.com/blog/bad-customer-service/
16
Mộc, Bạch. “Cuộc Chiến Chuỗi Cafe: Phúc Long, Starbucks Tăng Tốc, The Coffee House Đột
Ngột Lỗ Lớn, Trung Nguyên Đều Đặn Lỗ.” Kênh Thông Tin Kinh Tế - Tài Chính Việt Nam,
Cafef.vn, 23 Sept. 2020, https://cafef.vn/cuoc-chien-chuoi-ca-phe-phuc-long-starbucks-tang-toc-
the-coffee-house-dot-ngot-lo-lon-highlands-van-duy-tri-the-ap-dao-20200922144855303.chn
