Dream of Vietnam's Coffee King

Starbucks is looking at new overseas market and coffee shops around the world. However, many people find this expansion affecting their private life or interrupting them in an unwanted and annoying way and are scared of the Americanization of their culture. To prove these negative feelings towards their brand and in order for foreign customers to find more appealing, Starbucks needs to tell a story. The most attractive one being the story of the coffee bean, grown on an exotic island. Starbucks is taking on local aspects, like specific flavours and cultural habits, for example green tea Frappuccino in Asia, in order to distance themselves more from their American roots. In order to get rid of the negative image that American chains put local stores out of business, Starbucks is recruiting locals (Eline Van Lombeek, 2010,

The gourmet coffee market is concentrated in the largest cities of the country and mainly fed by multinational franchises coffee machine sellers that managed to advertise their products well, to the point of creating a new culture of coffee in Brazil (Rust, 2014)

And finally, on February 1st, Starbucks Coffee Company opened its first store in Vietnam at the New World Hotel in downtown Ho Chi Minh City. The company has studied Vietnamese market since 1991 and made VERY, VERY careful steps when entering this market. The only partner licensed to operate Starbucks stores in Vietnam is Coffee Concepts Vietnam, a subsidiary of Hong Kong Maxim’s Group. The signing with Coffee Concepts Vietnam will maximize the growth potential of Starbucks in Vietnam as the partner has experience in managing 130 stores in Hong Kong and China. Starbucks’ strategy is to bring unique coffee experience to customers at its stores. Besides, Starbucks will boost the localization of stores in its business strategy in Vietnam to make Starbucks stores the third destination for local people, following their home and office. “Starbucks provides much more than just the best cup of coffee, we will offer a place where people come together, connect with family and friends and celebrate the local Vietnamese coffee culture and heritage”, said Jinlong Wang, President of Starbucks Asia Pacific. Now let us begin our SWOT analysis. One of my team members, Lan Huong, is going to show you some strengths of Starbucks Coffee Company.

Many multinational corporations in the coffee industry have succeeded tremendously such as Starbucks. Each of these corporations has strategies that helped them continue to expand to nations of different cultures, ethnicities, governmental practices, and locations.

coffee in the world while maintaining our uncompromising principles as we grow.” The six guiding

The global instant coffee market share is occupied 70% by Nestle. Through puerile way, Nestle achieves a global coffee market enlightenment and the rapid popularization, causing a high degree of monopoly and the lack of sufficient competitive market situation. The high-end market is the lack of impressive brand, its fast, low prices are

The café’s are said to specialize in handcrafted teas, bagged teas, and iced teas at a tea bar. There will also be a selection of pastries and treats, all well appreciated in the Asian culture (Best/Hawkins/Mothersbaugh, 2010). If

It can be said, Trung Nguyen coffee is a marvelous success of branding in Vietnam in recent years. In just 10 years, from a small coffee company located in Buon Me Thuot coffee capital, Trung Nguyen has emerged into a powerful corporation and has been present in all parts of the country. However, the rapid development of the coffee industry has resulted in the appearance of emerging brands in the country and the penetration of international rivals, the initial success of Trung Nguyen should be preserved and developed some strategies that refresh itself and promote its’ existing supremacy. Trung Nguyen will constantly innovate to bring to customers new products, quality deserves its reputation as well as well as develop the franchise system that made the name of Trung

In 1926 Ya Kun’s founder Loi Ah Koon came to Singapore soil as a Chinese immigrant and was hired as an assistant in a Hainanese coffee stall (Loi, 2002). As Loi Ah Koon began to experience the coffee business he then decided to his own coffee stall in Telok Ayer Basin accompanied by 2 Chinese immigrants that later left him to explore their own business somewhere else (Loi, 2002). His business served tea, coffee, toast and egg. Customers would often come to the coffee stall with satisfaction. Ah Koon later then would visit his hometown in China and get married in 1936 (Loi, 2002). His wife came with him in Singapore and she introduced the company’s trademark kaya toast. Loi Ah Koon was passionate in his business. He had to do a lot of sacrifices that made Ya Kun Coffee as successful as it is today.

Nowadays, coffee is not only one kind of drinks which can refresh people, but also reflects the high quality of modern life. With the constant improvement in the living standard, as the western style drinks, coffee is accepted by more and more people in China, especially some big cities like Beijing and Shanghai. There are many cafes in many big cities in China and more young people are becoming passionate advocate of coffee. However the prospects of potential market of cafes are very broad. With a population of 5 million in Finland, the annual coffee consumption is 1 million cups, comparing with only 20-400000 cups with a population of 1.3 billion (SPR COFFEE 2013). The number of potential consumers in china is about 250 million, which equal to the current market of United States, the world’s largest coffee consumption market. Japan and the UK have abundant tea cultures and now they have developed into huge coffee market. Similarly as a country that has strong tea culture, China has broad coffee consumption potential and is becoming the biggest market through the world. The coffee consumption in China is increasing at an annual rate of 15 percent, comparing with the world’s consumption at an annual rate of only 2 percent (Olivier 2013). The per-capita coffee consumption in China from 2008 is increasing by 30 percent annually (Olivier 2013). As a conclusion China is expected to become the large market with the highest potential in the following years.

From the beginning, he wanted to make the company into so much more than what it was. A specific way that Howard contributed to the growth was when he traveled to Italy. This unique experience gave him insight on the operations and the intimacy of coffee shops. Furthermore, Howard has transformed the company into a successful business that not only produces coffee beans, but creates the final product as well as initiated the expansion of the product offerings.

Christophe Reale, the managing director of Espressamente at Illy, acknowledges the demand prospects for coffee, and is aware of the growth of niche markets in traditional consuming countries and the opportunities of new consumers in emerging and exporting countries. Christophe anticipated Espressament’s place within the global market and the company’s opportunities for future growth, he knew the importance of prioritizing markets to achieve the global route to markets. Based on previous given knowledge, sales potential analysis and a ton of research, Chistophe decided to focus only on the markets or countries with the most potential. And with this diligent research and vast experience Christophe will foresee where the greatest potential for success lies, and what kind of strategy should be pursued

The drink was no longer just a utilitarian morning stimulant and has a satellite pastime very European style: the windows from floor to ceiling, special atmosphere, soft music, dozens of varieties of coffee. However, besides all this, coffee is a business not only successful, but also has today a huge potential for development.

Since Coffee businesses such as Starbucks and Dunkin Donuts are rapidly increasing as well as its recognition worldwide this can be a serious constraint when it comes to identifying my product features which can lead my business to a perfect competitive environment which implies low profit. To lower the chances of ending up in this type competitive environment, our coffee beans are going to be exported from Brazil, Vietnam, India, and Dominican Republic even though the Dominican Republic is not included on one of the top coffee producing countries; I will like to open up opportunities for Dominican coffee brands to supply coffee beans to my industry. For customer satisfaction our coffee is going to be naturally produced and serve; by naturally serve I mean is not going to include any milk or other substances that takes away the true natural and pure flavor of coffee even though both Starbucks and Dunking Donuts have this type of option in their menu, it will be going to address different consumer needs. Besides the fact that nowadays coffee is really predominant, my service is going to provide not only satisfaction to my customers, but also it will inspire them to achieve their goals and ambitions.

Though 80% of the population of Laos is directly or indirectly related to agriculture most people lack adequate knowledge about farming. The trained farmers lacked the necessary skills to transfer their trainings to work.