CHAPTER 3: COMPARISON BETWEEN THE COFFEE HOUSE, HIGHLANDS
COFFEE AND DEN DA COFFEE
3.1. The coffee house
3.1.1. Overall
The coffee house is one of the popular coffee brands in Vietnam which was ranked
top 10 in 2021 by modern and youthful style, professional staff and especially excellent
quality of drinks. The first Coffee House appeared at 86-88 Cao Thang, Ho Chi Minh
City in 2014 and it grew rapidly with sixty stores at Ho Chi Minh City over the next three
years. Especially, that name of this brand is The Coffee House by the main purpose is
that to bring people closer together such as family members to help customers feel
respectable and highly appreciating the value of human connection, and also help them
find joy and intimacy by quality coffee cups in the process of experiencing and enjoying
drinks at the store.
Figure 3.1. Logo of The Coffee House
Additionally, The Coffee House has successfully created a famous brand thanks to
3 main factors that are creativity, sincerity and carefulness. Creativity is that The Coffee
House wants to create a unique impress for Vietnamese coffee. Employees always aim to
thank customers and see them as a source of motivation to strive positively to bring the
best products to make the customer experience better every day. Sincerity is that The
Coffee House believes that if they work with all sincerity and respect, everyone who
comes to The Coffee House will receive small joys, be better and make others better each
day and that is also this coffee brand's mission of giving happiness – “Deliver
Happiness”. Carefulness is that The Coffee House always focuses on the human element
in each of its products and campaigns. It is people who are the source of energy for The
Coffee House to spread good values to young Vietnamese people.
Figure 3.2. The internal space of The Coffee House
Figure 3.3. The external space of The Coffee House
3.1.2. Location
Currently, The Coffee House chain stores appear everywhere from North to South
of Vietnam including 146 branches where these are simple and easy to find areas, easy to
come at parking lot, stay at front of the center of the district which has an eye-catching
street view. This shows that Vietnamese people prefer to use services and drinks of this
brand.
Table 3.1. The Coffee House's Store List in Vietnam
Area Number
Ho Chi Minh City 72
Hanoi 37
Hai Phong 7
Da Nang 5
Tay Ninh 2
Can Tho 3
Nha Trang 3
Kien Giang 3
Nghe An 3
Ha Tinh 1
Ba Ria Vung Tau 3
Dong Nai 1
Hung Yen 1
Bac Ninh 2
Hue 1
Thanh Hoa 2
Binh Duong 1
Source: The Coffee House
Address: 400A Huynh Tan
Phat, district 7, Ho Chi
Minh City
Open: 07:00 – 21:30
Service: Parking lot, take
away, on-site service
Figure 3.4. The Coffee House - HCM Huynh Tan Phat
Address: 219 Le Duan,
Nguyen Du, Dong Da,
Hanoi
Open: 07:30 – 18:30
Service: Parking lot, take
away, on-site service
Figure 3.5. The Coffee House - HN Le Duan
Address: 44 Tran Phu, Loc
Tho, Nha Trang City,
Khanh Hoa
Open: 07:00 – 21:30
Service: Parking lot, take
away, on-site service
Figure 3.6. The Coffee House – NTR AB Tower
In addition to selling directly at stores, The Coffee House also expands into online
sales and advertising through Facebook pages, websites, Youtube, etc. Currently, there
are more than 602,000 Facebook page followers, over 4.42 thousand subscribers on
Youtube channel. Customers are mainly interested in unique posts about promotions as
well as new product launches in stores. In general, thanks to these online tools, the
business can develop in a better way when it is easy to connect customers with The
Coffee House.
3.1.3. Customer segment
The Coffee House focuses on customers who love the style which they feel like
"staying at home" with light and warm feels. Additionally, the space of "Co-working
space" where there has an open work space to be easy and convenience for meeting
friends and work.
3.1.4. Production
The Coffee House supplied mainly coffee-based products such as Vietnamese
Coffee, Machine Coffee, and Cold Brew. Besides, there are also fruit tea, milk tea and
Macchiato, freeze, matcha, chocolate. There are side dishes such as some savory cakes,
pastries and snacks. In particular, coffee products have been specially formulated by the
bartenders when combining Tica's Arabica and Robusta coffee beans to create a bitter,
sweet and sour taste that makes the coffee taste both rich and delicious.
Figure 3.7. Coffee Vietnam
Figure 3.8. Cold Brew
Figure 3.9. Fruit tea
Figure 3.10. Sweet cake
3.1.5. Promotion
The Coffee House's content always takes the customer's story as the center, instead
of focusing on the product. A further point to note is that “Home” is not a place to come
and go, “Home” is a place where you are heard and shared. “Home” is also a place to
capture the emotions of you and your loved ones. Therefore, the images and posts of the
sharing and confiding columns, "Humans of The Coffee House" are very interested in the
investment brand. All activities in The Coffee House's Marketing communication
strategy are closely aligned with the "Home" positioning and insight from its target
customer.
3.1.6. Price
The Coffee House's pricing strategy was devised when they put themselves in the
role of a customer and asked the question: How much does an experience at a cafe like
this cost, and is the amount of money customers spend reasonable? Is the cost
commensurate with what they are entitled to? Can they afford to go to that cafe often?
and so on. From there, The Coffee House aimed at a price of 30,000 - 40,000
VND/person at that time, which was a reasonable cost, enough to entice customers to sit
regularly. Customers can pay in cash or via money payment apps like Momo, etc.
3.1.6.1. Internal factors
Product’s quality. The Coffee house's menu is very diverse. In addition to selling
coffee products, this brand also regularly improves the menu, focusing on products that
young people love such as Macchiato, milk tea, etc. with the goal of creating a feeling of
being at home. As well as providing many alternatives for customers to come to The
Coffee House and this makes a great contribution to customer retention.
Service attitude. The Coffee staff are friendly and provide good customer service.
They were guided through a knowledge of working processes and how to serve
comfortably without rudely to match the distinctive style of the brand.
3.1.6.2. External factors
Architecture. The space of The Coffee House is suitably designed for customers
who love the style which they feel like "staying at home". The stores are designed with
yellow-toned lights to increase the cozy feeling, high-rise architecture combines the use
of lots of glass and windows, creating an airy and open space, tables and chairs are
arranged in each area, and there are long tables with the style of "Co-working space" - an
open work space and with a round table for friends to meet, etc. Especially, the
"minorities" such as designing the outlet in the store for convenience, turning on music so
that it's smooth, the staff is friendly… also cared for by The Coffee House to bring the
best experience to customers.
Location. The location of The Coffee House's stores is always located in crowded
places such as district or city centers, in fronts where it is easy for customers to find and
easy to park. Especially places which has great street view.
3.2. Highlands coffee
3.2.1. Overall
Highlands Coffee is known for excellently experiencing coffee drinks by many
young Vietnamese people and foreigners. This brand was founded in Hanoi in 1999 by a
Vietnamese-American person that his name is David Thai. Highlands Coffee is famous
not only for the traditional values embedded in each Vietnamese coffee bean, but also for
the modern experiences of the Vietnamese lifestyle. Thus, over twenty years of
establishment and development, Highlands Coffee has grown into a famous chain coffee
brand with more than 230 stores across the country.
Figure 3.11. Logo of Highlands Coffee
Moreover, Highlands Coffee has also developed into the international market.
More specifically, in 2012, Highlands Coffee sold its 50% stock to the Philippine fast
food is that Jollibe brand and Highlands Coffee is still planning to conquer countries in
the Asian region. The successful reason of Highlands Coffee until now is that this brand
still maintains the stage of hand-sorting coffee to select the best quality coffee beans,
roasting fresh every day and serving customers with a bright smile on their faces. The
secret of the brand's success is "Awesome bar space, excellent products and attentive
service at a reasonable price". Besides, it also preserves the traditional values of
Vietnam's long-standing coffee heritage and reflects a modern and dynamic lifestyle of
the Vietnamese people.
Figure 3.12. The internal space of Highlands Coffee
Figure 3.13. The external space of Highlands Coffee
3.2.2. Location
Highlands Coffee distributes the store's featured products by selling directly at 441
branches in Vietnam. Highlands Coffee's stores are found around major streets or
historical sites such as Hanoi Flagpole, Opera House and so on or around and inside
commercial centers such as Vincom Ba Trieu, Bitexco, Saigon center and under many
office buildings, etc. Highland Coffee wants to reach out to more employees working in
office buildings as well as internal and external tourists.
Figure 3.14. Some Highland Coffee stores at the South of Vietnam
Table 3.2. Highlands Coffee Store List in Vietnam
Area Number
Ho Chi Minh City 162
Hanoi 115
Hai Phong 18
Da Nang 29
Binh Thuan 1
Khanh Hoa 16
Kien Giang 3
Nghe An 6
Ha Tinh 1
Ba Ria Vung Tau 10
Dong Nai 15
Hung Yen 2
Bac Ninh 10
Hue 8
Thanh Hoa 4
Binh Duong 16
Lang Son 1
Thai Nguyen 1
Phu Tho 2
Vinh Phuc 1
Quang Ninh 10
Bac Giang 1
Hai Duong 3
Nam Dinh 2
Thai Binh 3
Quang Tri 1
Quang Nam 3
Quang Ngai 1
Binh Dinh 3
Lam Dong 1
Long An 2
An Giang 2
Tien Giang 3
Vinh Long 2
Soc Trang 1
Source: Highlands Coffee
3.2.3. Customer segment
Moreover, with both classic and westernized style, Highlands Coffee's customers
are the middle-income class or above, have a stable job and have a habit of drinking
coffee.
Additionally, Highlands Coffee's stores are decorated with spacious spaces to help
customers feel comfortable when they come to the store to drink coffee every day.
Moreover, a part of Highlands Coffee's customers are office workers, so they need quiet
private spaces to work or talk with colleagues. On the other hand, another part of
international students returning from abroad or customers from abroad coming to
Vietnam to travel are also Highlands Coffee's customers because they are familiar with
the Westernized daily lifestyle as Highlands Coffee's style.
3.2.4. Production
The main products of the Highlands Coffee brand are coffee, freeze, tea and bread.
More specifically, Roasted Coffee is extracted slowly drop by drop through a metal filter
called 'Phin' as well as showing the depth of each thought and sincerity in the
relationships. Customers can choose to drink hot or ice, with or without condensed milk.
Table 3.2. Coffee Products of Highlands Coffee
Products Price
Phin Đen Đá 29,000 VND
Phin Sữa Đá 29,000VND
Phin Đen Nóng 29,000VND
Phin Sữa Nóng 29,000VND
Bạc Xỉu Đá 29,000VND
Phindi Hạnh Nhân 39,000VND
Phindi Kem Sữa 39,000VND
Phindi Hồng Trà 45,000VND
Phindi Choco 39,000VND
Latte 54,000VND
Cappuccino 54,00VND
Americano 44,000VND
Espresso 44,000VND
Caramel
59,000VND
Macchiato
Mocha Macchiato 59,000VND
Source: Highlands Coffee
Besides, customers who love what's new things and trendy to inspire and then they
can enjoy unique, natural-flavored blended freezes at Highlands Coffee to awaken all
their senses and create positive energies. There are also other unique tea drinks with
combinations of fresh and popular tropical fruits such as peaches and lychees. These
drinks are all priced at 39,000vnd for products such as Golden Lotus Tea, Peach Tea and
Lychee Tea with topping. Moreover, the store also sells traditional Vietnamese breads
which helping customers to add a variety of choices for customers for a nutritious snack.
A further point to note is that Highlands Coffee was sold in glass cups but later switched
to plastic cups with Highlands Coffee's logo and pattern to be convenient for customers
bringing this brand to many other areas while taking away.
Figure 3.15. Menu of Highland Coffee
3.2.5. Promotion
Highlands Coffee has many promotions such as collecting three stamps for one ice
milk filter or free upsize for women on October 20 or March 8, combo tea and cakes for
the afternoon, etc. In addition, in order to maintain customer loyalty, Highlands Coffee
also prepares a membership card system such as a VIP card with benefits such as
discounts, gift attachments or loyalty card, etc.
3.2.6. Price
Currently, the price of products at Highlands Coffee is ranging from 30,000 to
60,000 VND. With a market-based pricing strategy, Highlands Coffee's products are
considered for the upper middle-income class, specifically coffee for business
men/women. Besides, Highlands Coffee's coffee price is influenced by many internal
factors such as personnel costs, location rental, raw materials, marketing and
communication and so on.
3.2.6.1. Internal factors
Product’s quality. Highlands Coffee become one of the best coffee chain in
Vietnam because the quality of products is delicious and high-quality. Moreover, the
process of making the final product are meticulous as coffee beans are taken by
professional farmers in the fertility of highlands and then combine unique roasting art and
traditional filtering method ò Vietnam. These help Highlands Coffee is well-known with
customers because due to this standard procedure.
Service attitude. Highlands Coffee's employees are considered to be always
friendly to customers and serve customers in the best condition because Highlands
Coffee's employees normally will be able to participate in professional training programs
for three days after they come into the company.
3.2.6.2. External factors
Architecture. Highlands Coffee's design has brown, red and white colors which are
the mainstream. The logo is centered on a brown hill, representing a sunny and windy
highland that grows coffee. and this hill is surrounded by the words "Highlands Coffee"
in an oval symbol for coffee beans. Brown is the color of the earth and the oval is the
shape of a coffee bean, then the white text on a red background shows the sophistication
and enthusiasm for the spirit of Vietnamese coffee. Besides, the chairs in the stores are
made of many different materials such as wood, sofa, cushions, rattan... The interior of
Highlands Coffee always comes with the natural landscape creating a relaxed space and a
Westernized style through a system of wooden tables and chairs as well as white
umbrellas for outdoor coffee tables. This is a symbol commonly seen in coffee shops in
Italy or France. Additionally, the yellow decorative lights made from bamboo and rattan
create a familiar and cozy feeling for customers when entering the store. In modern
commercial centers such as Vincom, Parkson, Highlands Coffee stores become even
more prominent with wooden floors which is different from the rest of the stores next
door.
Location. Highlands Coffee's stores are widely distributed in many provinces
stretching from North to South of Vietnam. Customers can easily find these stores at
major roads or historical sites or around and inside commercial centers such as Vincom
Ba Trieu, Bitexco, the center of Saigon and under many office buildings, etc.
3.3. Den Da Coffee
3.3.1. Overall
Den Da Coffee was established in 2014 in Vincom Plaza by a founder whose
name is Tuan Truong. Den Da was born not only for the commercial or business purpose,
but with the passion of creating a Vietnamese brand that all the Vietnamese people could
be proud of. Den Da Coffee is a coffee-dessert-tea concept store, besides the retro interior
that holds the spirit of Saigon in the 90s, this brand is known as one of the most popular
dessert-toast spot in town.
Figure 3.16. Logo of Den Da Coffee
In 2018, Den Da Coffee successfully brought the name of the "Den Da" brand to
everyone in Ho Chi Minh City. As a result, Den Da Coffee has become one of the
pioneering and leading coffee chains in the vintage coffee concept. In addition, during 5
years of business operation, Den Da has affirmed its position through chain stores with
unique architecture, and innovative products to keep up with trends. These has
contributed to building the position of Den Da Coffee in the hearts of consumers.
In 2019, Mr. Tuan Truong aims to expand the store system in Ho Chi Minh City
and continue to bring the brand to big cities. In addition, Den Da will launch a bottled
product line in the future that will be distributed in domestic supermarket channels with
the desire to build a sustainable brand "Den Da Coffee" for young Vietnamese
consumers.
Figure 3.17. The internal space of Den Da Coffee
Figure 3.18. The external space of Den Da Coffee
3.3.2. Location
Currently, the Den Da Coffee brand has appeared in many areas in the South of
Vietnam such as Ho Chi Minh City, Can Tho, etc. It is concentrated in areas near schools,
companies, and big supermarkets like Vincom and is located in a frontage location near
the intersection so that target customers can easily find it as well as convenient for
moving.
Each branch of Den Da Coffee is associated with the name of a familiar place in
the hearts of Saigon people such as “Đen Đá Chợ Cũ” where it is located in a lively place
amidst the hustle and bustle of the old Ton That Dam market at district 1; “Đen Đá Dinh
Độc Lập” (service 24/7) which is located inside a French colonial villa with the age of
more than half a century, it is beautiful and poetic in the middle of magnificent Saigon.
Den Da Pasteur is the stop that never sleeps for many young Saigonese; “Đen Đá Xe
Lửa” in Phu Nhuan is a cozy and sincere place in the background of the loud train
whistles and the hustle and bustle of the expatriates; “Đen Đá Bờ Kênh” (service 24/7) is
a place to return to childhood with chicken cages and blue kites decorated in the store
premises; “Đen Đá Bách Hóa Emart” is inspired by the movie Co Ba Saigon with the
sound of old Saigon; “Đen Đá Làng Đại Học” (26-28 D2, Binh Thanh) has many green
patches, truly a peaceful resting place after a long day of studying and working; “Đen Đá
Kỳ Hòa” (service 24/7) has a fresh space which is located on the busiest street in District
10.
Table 3.3. Branches of Den Da Coffee in Ho Chi Minh City
Name Address
Đen Đá Coffee (Thành phố 177 Quang Trung, Ward 10, Go Vap
Hồ Chí Minh) District
Đen Đá Coffee (Đen Đá 366 Phan Van Tri, Ward 5, Go Vap
Bách Hoá Emart) District
Đen Đá Coffee (Đen Đá Bờ 279 Phan Xich Long, Ward 2, Phu
Kênh) Nhuan District
Đen Đá Coffee (Đen Đá Xe 110 Le Van Sy, Ward 10, Phu Nhuan
Lửa) District
Đen Đá Coffee (Đen Đá
182 Pasteur, Ben Nghe Ward, District 1
Dinh Độc Lập)
Đen Đá Coffee (Đen Đá 96 Ham Nghi, Ben Nghe Ward, District
Chợ Cũ) 1
Đen Đá Coffee (Đen Đá 26-28 Nguyen Gia Tri, Ward 25, Binh
Hàng Xanh) Thanh District
Đen Đá Coffee (Đen Đá Kỳ
543 Su Van Hanh, Ward 12, District 10
Hoà)
142 Yersin, district 1 or 169 Ky Con,
Đen Đá Coffee
District 1
Đen Đá Coffee 01 Le Thi Rieng, District 1
Source: Den Da Coffee
3.3.3. Customer segment
They are lovers of space decorated in a vintage style which bringing the breath of
Saigon in the 80s and especially is that followers of "virtual living". Moreover, the
pictures taken from the film camera will produce the "oldest" image quality, the oldest
suitable for this vintage space, creating an attraction for young people at ages between 18
and 35-year-old, students as well as office workers to come to check in and also enjoy
dishes and drinks in Den Da Coffee.
3.3.4. Production
Food and beverage of Den Da Coffee are varied and healthy leading to excitement
and cravings from customers. The main products of that store are Original Vietnamese
coffee, tea, Milk tea Express, Ice Blended and unique-made bake toast. Specially, fresh
tea leafs and coffee beans are collected from the Vietnamese farmers, embrace the best
texture and taste of signature Viet taste. First of all, Espresso has a very strong and
aromatic taste that is felt when you take the first sip. The strokes on the espresso cups are
also very skillful, it is beautiful in both appearance and delicious in taste. Next is Gia Lai
Den Da Cafe. This drink is extremely suitable in the early morning while customers are
reading a book and sipping a cup of coffee that has a bitter taste but does not make people
stop. Peach tea is also very delicious, the taste of tea is sweet, cool, crispy peach pieces
and it would be remiss not to mention the toasts which the toasts are grilled crispy,
depending on each taste such as salted egg, vanilla ice cream that the testers have
different feelings. However, they are all very round, perfect for breakfast.
Black Coffee
Mocha Cappuccino
Frappe Toast
Toast
Green Tea Latte
with Coffee
Figure 3.19. Some products of Den Da Coffee
The dishes on the menu have been specifically priced to show the quality as well
as the good service of the store. Some drinks like coffee, milk tea and fruit juices have
two size including S and M size. Basically, coffee bean products have the price from
30.000 VND to 57.000 VND. Besides, there are about ten different kinds of delicious
milk tea, prices range from 45,000 VND to 60,000 VND, slightly higher than coffee
dishes with great taste. Additionally, a variety of popular and unique toast have the
highest price with over 66,000 VND which the meaning is that these products have high
quality and perfect services.
Figure 3.20. Menu of Den Da Coffee
3.3.5. Promotion
From Monday - Thursday every week at 7am - 10am, customers will receive a
30% discount on the Italian cafe menu. In addition, there are many other programs such
as on Den Da Coffee's 6-year-old birthday, with the theme “BREAKING THURSDAY -
BUY ONE GET ONE ENTIRE MENU, SYSTEM APPLICATION”, which means that
in Den Da's 6-year-old birthday series, the program “Buy one get one free” every
Thursday applies to all food and drinks on the store's menu (except for ice blended and
toasts) and etc. This will create attractiveness for customers, leading to quick
consumption of the product and more people will know about Den Da.
Festive
Birthday
Woman Day
Sale 12/12
Figure 3.21. Promotion on some special days
3.3.6. Price
The price of products at Den Da Coffee is ranging from 30,000 to 65,000 VND.
Because this brand focuses on target customer who they are part-time students and other
students who come to this store with family members and office workers who can earn
source of income with mid-high affordability at over 6 million VND. So, the price of
each product is carefully selected as mid-range and high to be suitable for good service
quality as well as good places, delicious food and beverage, etc. to response their needs.
Besides, the product price can be changed by being dependent on market volatility as the
epidemic of Covid 19, marketing, cost of rental premises and so on.
3.3.6.1. Internal factors
Product’s quality. Den Da Coffee has a variety of drinks from coffee, tea, ice
blended to various kinds of cakes. The unique product of this brand is toast which is the
first choice for customers. Toast is a soft bowel and the outer crust is crispy that is
attractive decorated and eaten with diverse toppings such as whipped cream, jam, honey,
or fresh fruit combining with special recipe. That create a unique taste for this brand. It is
often served as a dessert cake or breakfast or snack as in Western countries.
Service attitude. Employees are trained in soft skills and specialized knowledge. In
addition, most of them are passionate people, love the hospitality industry and have
experience in cafes, restaurants or hotels. Furthermore, the attitude of employees is
always guaranteed to be sociable, happy in communication, enthusiastic, diligent and
honest at work. Additionally, they try to listen to customers' opinions to edit and develop
more.
3.3.6.2. External factors
Architecture. Den Da Coffee is built and decorated in a vintage style which
bringing the breath of Saigon in the 80s. Pretty corners decorated with vases, bird cages
or simply towels will be very suitable for those customers are followers of "virtual
living". Furthermore, there are a quality air conditioning system, high quality Wifi, and
with a quiet space, this will be a suitable place to gather friends and relatives on hot
summer days.
Location. The Den Da Coffee brand is concentrated in areas near schools,
companies, and big supermarkets like Vincom and is located in a frontage location near
the intersection so that target customers can easily find it as well as convenient for
moving. Furthermore, places have the spatial beauty of the old life such as in a lively
place amidst the hustle and bustle of the old Ton That Dam market at district 1, or inside
a French colonial villa with the age of more than half a century, or a cozy and sincere
place in the background of the loud train whistles and the hustle and bustle, etc.
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14.
