Group 12

Phm Thu Hng 10160251

Bi Th An Nguyn 10160282
Bi Minh Chu 10160335
Nguyn Hng Linh 10160260
Table of Contents
INTRODUCTION.................................................................................................................... 3
MAIN BODY ............................................................................................................................ 5
I. Task 1: Compare ways in which organizations use elements of the marketing mix (7Ps) to
achieve overall business objectives ...................................................................................................... 5
1. 7Ps marketing mix .................................................................................................................... 5
2. How do Starbucks Viet Nam and Highlands Coffee achieve their overall business objectives
by marketing strategy?..................................................................................................................... 22
II. Task 2: Develop and evaluate a basic marketing plan ............................................................ 26
1. Company overview .................................................................................................................. 26
2. The importance and value of marketing plans ...................................................................... 26
3. Current Marketing Situation Analysis ................................................................................... 26
4. Marketing objectives ............................................................................................................... 34
5. Segmentation, Targeting and Positioning.............................................................................. 34
6. Tactics and Action................................................................................................................... 35
7. Allocation of Resources .......................................................................................................... 38
8. Evaluating and Monitoring marketing plans......................................................................... 38
CONCLUSION ...................................................................................................................... 39
REFERENCE LIST ............................................................................................................... 40
INDIVIDUAL CONTRIBUTION FORMS ......................................................................... 44
 INTRODUCTION
In our teams report, to give you a further look at how Marketing works in reality, we

would compare the ways 2 organizations use 7Ps Marketing Mix to achieve their

objectives. Also, in the second task in Main Body, we have developed a comprehensive

marketing plan to launch a new product for a specific company, as a practical method

to apply Marketing knowledge we have gained from lecturer and tutor.

There are 2 companies chosen to be prime samples in our report. The first one is

Starbucks, which also appears throughout both tasks in Main Body. Starbucks was

originally established in 1971, in Seattle as a local market store. The company had

decided to enter Viet Nam market in 2013 with products comprise of beverage, food,

souvenir and roasted coffee beans bag.

(www.circuscircus.com)

The second organization chosen as a competitor of Starbucks in Viet Nam market in

Task 1 is Highlands. Highlands entered the market as a supplier for roasted coffee beans
in 2000 and expanded as a cafeteria brand in 2002. Currently, the company offers

products: beverage, food, roasted and ground coffee beans bag for customers.

(vincom.com.vn)
 MAIN BODY

I. Task 1: Compare ways in which organizations use elements

of the marketing mix (7Ps) to achieve overall business
objectives
The companies chosen to be examined in Task 1 are Starbucks and Highlands,
as what we already mentioned in Introduction.

1. 7Ps marketing mix

Product
Both Starbucks and Highlands are selling consumer products which is
purchased for personal and non-business purposes. (courses.lumenlearning.com)
Starbucks Highlands

Products and Starbucks current marketing offerings
services consist of:
Beverage: Espresso beverages
(19 types); chocolate beverage;
Frappuccino blended coffee
(11 types); Frappuccino
blended crme (5 types) and
brewed tea (10 types).
Food: bakery (9 types);
muffins (5 types); cookies (2
types); cakes (6 types) and cold
sandwiches (3 types).
Roasted coffee beans bag: 23
types available in Viet Nam
market with different flavors
and level of roasting.
Highlands current marketing offerings
comprise:
Beverage: traditional coffee (iced
milk and black coffee); ice-blended
(green tea and caramel); espresso (6
types); fruit tea (5 types) and other
6 drinks (mojito; juice).
Food: banh mi (3 types); cakes.
Packaged coffee: ground coffee
bags; canned coffee.
(highlandscoffee.com.vn)
Souvenir: coffee mugs.
 Souvenir: coffee mugs; cups;
teddy bear.
(starbucks.vn)
Importance of Starbucks is considered as a famous, Highlands Coffee once was regarded as a
brands global, modern and luxury coffee luxury brand for businessman. However,
shop brand in Viet Nam. Because of since the company expands their market,
such a strong brand, Starbucks is able currently, Highlands is considered as a
to attract new customers to taste mid-end, thriving and widespread coffee
famous western and high quality shop brand. With such a brand, Highlands
coffee. Also, since it is a luxury would attract an enormous number of
brand, it effortlessly attracts customers, much bigger than their previous
customers with high income and target market.
living standard. Hence, it would
increase financial value for the
company.
Product Firstly, besides original US drinks, New product development of Highlands is
development Starbucks has developed new based mostly on seasons and occasions.
products based on Vietnamese taste to For example, in this year summer season,
better suit the preference of local the company launched a drink line called
customers. For instance, in Starbucks Tra he summer tea, which are green
menu, there are 2 drinks have apple tea, kumquat tea, strawberry tea and
influenced by ca phe sua da - Asian passion fruit tea.
Dolce Latte and Dolce Misto
(cafef.vn, 2016)
Secondly, product development also
is built on special occasions such as
Christmas holiday. In this year (Highlands Coffee Facebook)
holiday season, Starbucks Viet Nam
has launched new special drinks:
Christmas Tree Dark Mocha, Vanilla
 Nougat Latte to celebrate the
occasion. (starbucks.vn)

(Starbucks Vietnam Instagram)

Product lifestyle Since Starbucks has entered Viet Nam In the context of Highlands, the companys
market for only 4 years, their products renowned products such as ice-blended
generally are not relatively familiar to and traditional coffee drinks are put in
consumers, as much as other older maturity stage, which have constant and
domestic brands. However, most higher sales volume than other products. In
Starbucks products in Viet Nam are contrast, ground coffee bag is considered
considered to be in growth stage, in decline stage, where sales volume
where sales are considerably growing declines significantly and does not receive
and receive greater consumer much customers attention.
awareness.
(productlifecyclestages.com) In other
words, they are stars in BCG
Matrix. Except for Frappuccino and
Latte 2 best-seller items of
Starbucks Viet Nam, they are in
growth stage since they already have
a significant number of loyal
customers and a constant sales
volume. (cafef.vn, 2016)
 Price
Starbucks
Pricing context, Firstly, since Starbucks is considered
strategies and as a luxury brand to Vietnamese
tactics customers and they offer fast serving
process and high-quality products, the
price is set at the highest level,
comparing to others.
Below are pricing strategies that
Starbucks Viet Nam has been adopting
and following:
International pricing
Since Starbucks is a multinational
enterprise, when entering a new
market, they generally would set a new Cong Caphe (Doanhnhanonline, 2014).
price, which is suitable for country-
specific factors. Particularly, in Viet
Nam, the price is set at a level which
does not have much difference from
other countries. Especially for a grand-
sized Latte, Vietnamese consumers
have to pay 8,18 USD, which is ranked price is lower when purchasing
at the 3rd place among 70 countries
Starbucks is doing business.
(kinhdoanh.vnexpress.net, 2017)
CEO of Starbucks Viet Nam Ms
Patricia Marques stated the reason
behind the companys pricing decision
is that even though labor wages in Viet
Nam are much cheaper, transportation;
Highlands
Below are pricing strategies that
Highlands Coffee has been adopting
and following:
Market-skimming pricing
Since its early establishment,
Highlands coffee aimed towards
business customers as a luxury brand
with high price and high quality.
However, since recent years, Highlands
coffee has decided to expand their
market by reducing significantly the
price, even lower when comparing to
Therefore, it can be seen that
Highlands entered the market with high
initial price, then lowers it overtime.
Product bundle pricing
Since now, Highlands has launched a
lot of product bundles, in which the
individually. For example, there are
banh mi and iced milk coffee combo or
cakes and ice-blended combo.
utility; tariff expenses are quite
expensive. (kinhdoanh.vnexpress.net,
2015)
Product bundle pricing
From Nov 27th Dec 11th 2017, to
boost sales volume for new drink:
Apple Joyful Medley Tea, Starbucks
has decided to put it along with
another product at lower price: Apple
(news.zing.vn, 2012)
Joyful Medley Tea (Tall) + Xmas
Promotional pricing
Pudding Cup = 100,000VND.
For example, buy one get one free
(Starbucks Vietnam Facebook)
scheme has been using frequently by
Promotional pricing
Highlands, especially when launching
In several cases, Starbucks would set
new products.
price temporarily lower than menu
price. For instance, for 2017 Black
Friday occasion, the company decided
to give discounts for 40% off on
selected products.

(Highlands Coffee Facebook)

(Starbucks Vietnam Facebook)

 Place
Starbucks
Channel In Viet Nam market, Starbucks
management directly controls and operates their
own distribution channel system. All
decisions of opening, managing
evaluating coffee shops are made
totally by Starbucks.
Since 2013, Starbucks has opened 29
coffee shops in total, located in HCM,
Ha Noi and Hai Phong.
(motthegioi.vn, 2017) Whenever
opening a new cafe, the company
takes into consideration carefully the
characteristics of local people such as
lifestyle. For instance, Ha Noi people
tend to go shopping outside shopping
malls, so that most Starbucks coffee
houses in Ha Noi are located in
crowded streets, rather than inside
shopping malls which is different
from HCM. (kinhdoanh.vnexpress.net, select, manage and evaluate each
2015)
Supply chain Currently, Starbucks Viet Nam does
management not directly purchase raw materials. It
is done by the parent company in US.
Starbucks US has their own
companies for the purpose of
purchasing coffee beans from a lot of
sources around the world including
Highlands
Similar to Starbucks, Highlands
Coffee also has its own coffeehouses
systems to distribute their products
directly to customers. Coffee shops are
also managed and controlled by
Highlands. Since now, they already
have 182 coffee shops locating around
the country. (highlandscoffee.com.vn)
Also, Highlands Coffee pays great
interest in locations of coffee houses.
It can be seen that they are all located
in famous shopping malls and crowded
streets.
However, since Highlands also has
launched canned coffee products, their
distribution channel system now
includes other intermediaries such as
supermarkets; wholesalers and
retailers. That requires Highlands to
intermediary.
Raw materials such as coffee beans are
collected through Highlands farms in
the Central Highlands of Viet Nam.
Then, they are thoroughly selected for
the best quality and transported to
factories to dry, roast and pack. After
that process, packaged coffee bags are
 Viet Nam. (cafef.vn, 2016) The delivered to coffee shops around the
unique supply chain management country. (highlandscoffee.com.vn)
action that Starbucks does is that they
have farming communities, which
directly invest, lend, help famers to
lower production cost and improve
coffee quality. (starbucks.com) Also,
input is directly purchased by
Starbucks, limiting the number of
intermediaries, which lowers the costs
for Starbucks and ensures the benefits
for farmers.
After purchasing raw materials, coffee
beans are dried, roasted, packed and
distributed to coffee shops around the
world, in order to ensure the standard
taste quality among coffeehouses.
(kinhdoanh.vnexpress.net, 2015)
Logistics
Transportation For raw materials such as coffee Highlands Coffee might use trucks to

Management beans, Starbucks Viet Nam takes in transport packaged coffee bags to each
charge of transporting once input is coffee shops over the country.
Logistics
imported. Means of transportation for
coffee beans through coffee shops
around the country might be via
trucks.
For transporting cakes, Starbucks uses
trucks or cars with refrigerator system
to preserve products.
(kinhdoanh.vnexpress.net, 2015)
 Inventory Besides having large warehouses to Similar to Starbucks, Highlands

Management store raw materials, products for the Coffee shops also have their own

Logistics whole country, each coffee shop has small warehouse to preserve materials.
its own space to store and maintain
materials.

Promotion
Starbucks
Advertising
Online Marketing
o Social Media Marketing
Starbucks Viet Nam is currently using Facebook and Instagram as
an advertising platform to increase brand awareness and promote
new products and campaigns. Starbucks actually rarely uses
Facebook and Instagram Ad since the number of followers of both
sites are quite enormous, over 300000 likes on Facebook and
47000 followers on Instagram. Therefore, the number of users they
have reached already is high.

(Instagram post by Starbucks Viet Nam to announce their sales promotion

program for Black Friday)
 o Video and Content Marketing
Keeping up with Video marketing trend, Starbucks also has
launched several advertising videos with good content that ties
closely to customers emotions.

A video talking about the journey of a Starbucks coffee from its

origin in farms to ending customers. (Starbucks Vietnam
Youtube)
Outdoor Advertising:
Starbucks puts pano, posters, signboards outside their coffee shops to
promote their new products or sales promotion programs. Since their
cafs are located in crowded streets, as what I mentioned in Place,
their posters would catch peoples attention easily.
 (Image cut from our video clip in Task 2)
Sales promotion
Coupons
When purchasing a certain number of products, Starbucks customers
would get coupons that give them saving for future purchase.
For example, when customers complete these 2 below challenges:
Challenge 1: Buy any one (1) Xmas food and one (1) Xmas drink
Challenge 2: Buy any two (2) Xmas drinks
They will receive 3 COUPONS for future purchase. (Starbucks
Vietnam Facebook)
Discounts
On special occasion, such as Black Friday, Starbucks would launch a
sales promotion program - discounts for 40% off on selected
products.(Starbucks Vietnam Facebook)
Free goods
Via Starbucks Rewards Card, customers will earn one Star for every
VND 40,000 they spent, and after the first 5 Stars, they are able to get
a second drink for free and receive a free preferential treat during
birthday month. (card.starbucks.vn)
Public Relations
o News
 When Starbucks entered in Viet Nam market, they got unfavorable
rumours on their pricing decision that even though labor wage in
Viet Nam is much cheaper, the price is still similar to other
countries. Patricia Marques CEO of Starbucks Viet Nam has
politely handled them via news that the costs for transportation;
utility and tariff are the reasons behind. (kinhdoanh.vnexpress.net,
2015)
o Special events
Starbucks has proved that they are not a typical enterprise that sells
coffee, they also spread the culture and the art of the making-
process of coffee beans.
For instance, on 1st December, Starbucks Viet Nam has hold a
Coffee Seminar Workshop that present Coffee beans and 3
processed methods in HCM. The workshop has received a great
interest from their customers. (Starbucks Vietnam Facebook)
Highlands Coffee
Advertising
o Online Marketing
Similar to Starbucks Viet Nam, Highlands Coffee Vietnam also
uses their own website www.highlandscoffee.com.vn , Fan page
on Facebook to update all the information about new products,
campaigns, other activities such as discounts to the customers and
viewers. They also send emails to inform subscribers about
marketing message, discounts, personalized deals, or other
programs. Moreover, they create a fan page called Coffee lovers
to share all images, videos, ideas about the art of tasting coffee,
and add their advertisement on it. In addition, the company also
cooperates with other sites to promote even more widely their
discounts; vouchers, preferential programs for customers on:
www.jamja.vn, www.khuyenmaiviet.vn,
Sales promotion
 Highlands Coffee uses a lot of sales promotion tools to boost their
sales volume. For instance, There are: discounts on special
occasions, coupons; Buy 1 get 1or Buy 2 get 1 programs for
new products, product bundles: Drink and Bread for Lunch and
Special event (Golden Hour for office workers).
Public Relations
o Special event
Highlands Coffee is a dynamic member of social activities.
Since 3rd March, Highlands Coffee cooperates with Wild for
Life Global Campaign by United Nations - a campaign aims
to prevent trading and hunting wild animals. To be specific,
with each Combo #WildforLife priced at 59,000VND,
customers will contribute 5,000VND to the Save Vietnam's
Wildlife Center.

(Highlands Coffee Facebook)

o News:
Highlands also corporates with press agency to create and place
a position in customers mind as a thriving and ambitious
coffee brand.
 (soha.vn, 2016)

(vietnamnet.vn, 2016)

People
Starbucks Highlands

Roles of people Customer-interfacing staff roles Customer-interfacing staff roles

in marketing include receiving orders from include receiving and
customers; making or offering implementing orders such as
drinks, cakes; receiving money drinks, cakes from customers;
 from customers; cleaning tables,
floors; preserving furniture,
equipment in the store and
dealing with issues such as
customers direct complaints or
problems. Also, they have to
follow orders from store
managers and support office.
Support personnel roles include
planning marketing strategies
for the company for the whole
year or a specific product
(situational analysis, planning);
ensure effectiveness and
consistency in operations of
activities throughout stores and
evaluate the outcomes.
Also, since Starbucks is a
multinational enterprise, they
also have to comply with orders
and rules from the parent
company in US.
Skills of people Good teamwork skills
delivering products Leadership skills
to customers Problem solving skills
Communication skills
(starbucks.vn)
Attitudes and Among thousands of customer reviews
behavior of people on Facebook, it can be seen that one of
the most repetitive problems
receive payment; cleaning
tables, floors; preserving
equipment in the store and
dealing with issues such as
customers direct complaints or
problems. Also, they have to
follow orders from store
managers and support office.
Support personnel: Similar to
Starbucks, they also have to plan
marketing strategies for the
whole company; convert them
into actions and control it.
Basic English speaking skills
Communication skills.
Problem solving skills
Be able to work under pressure
(vticareers.talentnetwork.vn)
Highlands Coffee also counters a lot of
complaints from customers in
Facebook comment section, relates to
delivering products mentioned relates to customer service,
to customers which is the bad attitude and behaviour disrespect to processing orders slowly.
of staff. Problems vary from long
payment process; receiving incorrect
orders, showing disrespect to
customers and so on.
Though those problems do not incur
frequently and in every stores, they
still leave unsatisfied experience to
customers.
Physical evidence
Starbucks
Decoration Below is a picture of a Starbucks coffee
Interior and store in HCM, they use wood as the main
Exterior material, install led signs to catch
design attention and follow a minimal and
simple decoration style.
(Inside Retail Asia, 2013)
Inside a coffeehouse, there are different
section for different purposes: family,
friend meeting; working and so on. They
use brown as a theme color and arrange
bad attitudes of staff. From showing
That may be due to the low salary that
Highlands pays for staff (especially
cashiers; waiters and bartenders):
which varies from VND 1.5 to 2.5
million per month with prolong
working hours.
Highlands
Inside Highlands coffee shops are designed
with a Western-influenced style, with
square and round wood tables; small sofas;
modern and impressive paintings. Tables
and chairs also are arranged at a suitable
distance, that makes it easy to walk around.
(Carina, 2016)
Moreover, Highlands also takes advantage
of the outdoor areas. The balcony and
 tables quite near each other to create a garden area of the place is arranged with
cozy environment. Souvenirs also are tables and chairs made of bamboo
displayed around the shop both for portraying a traditional but still modern and
selling and decorating. elegant image.

(Foody)
(Torresi, 2014)
Staff uniform A black T-shirt and a green apron with A red T-shirt and a black apron with
Starbucks logo featuring a mermaid. Highlands logo featuring a coffee bean.

(starbucks.vn)
(highlandscoffee.com.vn)
Menu Menu is designed simple, only contains Highlands Coffee menu also follows a
the English names of drinks and the simple design. However, unlike Starbucks,
price. However, it might cause the case the products are labelled both in
when customers do not understand Vietnamese and English. Moreover, there
English, leads to troubles in ordering. are pictures of products to help customers
And also, the font size of words is too make buying decision easier.
small to read in a distance. Menu is also big enough for customers to
read.
 (Foody) (Foody)
Light Starbucks makes the most of natural light Similar to Starbucks, Highlands also pulls
in daylight and uses a yellow light system all curtains on daylight and turns on
in night time. The reason behind is that yellow light when it turns dark.
under those kind of light, products would
be taken pictures in the most beautiful
condition. Therefore, it would enhance
the product images especially when they
are posted on social media.

Process
Starbucks Highlands
Ordering, paying In general, the process at Starbucks is In contrast, even though Highlands
and serving process relatively faster than other coffee applies technology to shorten the length
shops. of time, the process is still considered as
Normally, when customers step into slow since there is limited number of
Starbucks, they would hear a warm bartenders comparing to the number of
greeting from the staff: "Hello, customers.
welcome to Starbucks." Then, There are also 2 payment methods that
customers queue, wait for their turns Highlands accepts: in cash and credit
to order items. Cashiers receive orders cards.
by typing on the computer and double After taking orders from customers,
check to customer. Customers then are cashiers would give customers a buzzer
required to pay immediately after to inform when their items are ready.
ordering the drink. There are 2 Therefore, they do not have to queue or
 payment methods which are in cash pay attention to hear the name in order
and credit cards. After making to receive drinks.
payments, Starbuckss staff would ask Similar to Starbucks, staff also greets
for the customer name and then and says thank you to customers when
rewrite the name in the bill and the they enter and leave the coffee shop.
cup as well. After the beverage is
made, waiters would call the customer
name to receive the drink. Then, when
customers are about to leave, they will
be once again heard the staffs voice:
Thank you. Hope to see you again.

2. How do Starbucks Viet Nam and Highlands Coffee achieve their

overall business objectives by marketing strategy?
The shift from 4Ps to 7Ps and the significance of extended
marketing mix
While 4Ps is a basic model that can be applied in any industry, 7Ps marketing
mix is famous for using in service industry. However, since 4Ps is already
outdated and also, 7Ps takes a more comprehensive approach than 4Ps, there
is a current shift from using 4Ps to 7Ps.
Below is an analysis on how extended marketing mix (7Ps) helps 2
companies to achieve their goals.
Starbucks Viet Nam
Since Starbucks has only entered Viet Nam market for only 4 years, one of
their objectives in such an early stage must be to increase market share.
Ms. Patricia Marques has stated that the growth rate of Starbucks in Viet Nam
has exceeded the companys expectation (kinhdoanh.vnexpress.net, 2015)
Consequently, it would lead to a significant growth in market share.
Marketing mix strategy definitely plays a vital role in that success.
 First and foremost, thanks to such a wide and Western-styled variety of
products and constant new product development, it continuously attracts new
customers to enjoy high-quality Western standard coffee and retain existed
customers by providing new product experience.
Secondly, by considering carefully consumer habit, even though Starbucks
coffee shops system does not spread widely around the city, it is still
convenient to find and meet customers needs. Also, since raw materials
source is imported directly from US and standardized, it ensures the
consistency in taste through out coffee shops and among countries.
Therefore, customer experience would enhance as well.
Thirdly, even though the price is set at a high level, there are a lot of sales
promotion programs launching frequently such as discounts, coupons and
free goods, which still increases customers demand for Starbucks products.
Moreover, since labor force in Starbucks is skilled labor, even though the
company continuously attracts more and more customers, the wait time in
serving process is still shorter than other competitors.
Last but not least, the unique decoration style, which is modern, cozy and
inspiring, is an ideal place to either meet friends, family gathering or
working.
Without these 5 advantages points in marketing mix strategy, Starbucks
would not achieve their goals in increasing market share.
Highlands Coffee
The overall and long-term business objective of the company is to become
the leading coffee shop brands in Viet Nam market.
It seems to be clear that Highlands is taking closer to achieve such an
ambitious goal thanks to extended marketing mix strategy.
Below are 5 advantages in 7Ps that have been helping Highlands to transform
that goal into reality quicker.
Firstly, the current product Highlands is offering to the market is a great
combination of both traditional and western drinks and food. It definitely
 suits a wide range of customer groups: from teenagers to businessman, from
foreigners to local and so on.
Secondly, the price is set at a competitive level compared to the market price,
which is also the major change when Highlands expands its target market.
Obviously, Highlands has succeeded in acquiring new customers vary from
college students to entrepreneurs, thanks to the reasonable price.
Thirdly, the location of Highlands coffee shops is definitely the companys
biggest competitive advantage. They are not only located in both famous
shopping malls and in crowded streets, not only in big cities such as Ha No,
HCM, Da Nang but also exists in Ha Long, Bac Ninh and so on. Widespread
coffee shop systems throughout the country definitely increase significantly
market share for Highlands.
Furthermore, by constantly giving a lot of great price deals to customers such
as product bundles, coupons, discounts, the demand for products would grow
as a consequence.
Last but not least, the modern interior and exterior design gives customers a
sense of both traditional and modern spirit. That creates differentiation for
Highlands Coffee.

An overview of marketing planning process and marketing

strategy

(Tran Cam Tu, 2017)

Marketing planning process is process that seeks to establish a clear direction and

unified purpose for all marketing efforts. There are 10 steps in strategic marketing

planning process. First of all, the company will define what they want to accomplish in

the larger environment and set their strategic objectives and goals which must be

SMART to increase market share, create local partnership and increase promotion.

Then, the company will analyze the current situation which is understood as market

analysis including micro-environment and macro-environment. The company will use

SWOT analysis tool including their strengths and weaknesses, opportunities and threats

to identify the needs and wants of their customers (Lorette).

After identify mission and objectives, marketing strategies are what a business decide

which customers they will serve (Segmentation and Targeting) and how their customers

will be served (Differentiation and Positioning). Market segmentation is the division

into different groups of customers related to 4 major segmentations which are

geographic, demographic, behavioral and psychographic, then the company chooses

specific targeted customer groups to meet their needs. Positioning is the process that

the company made their products and services to have a clear, distinctive and desirable

place on customers minds (Porral and Stanton, 2017).

After that, the company will forecast the expected results, create alternative plans, and

develop Marketing Mix which is the set of marketing tools that the firm uses to pursue

its marketing objectives in the target market. Lastly, the company will turn all their

marketing plans into efficiency and effectiveness actions to achieve desired goals,

measure and evaluate actual performance of marketing activities such as marketing

budgets, market shares or client feedback, compare to the objectives and take the

corrective needed actions (Grunert).

II. Task 2: Develop and evaluate a basic marketing plan

1. Company overview
Starbucks was originally established in 1971, in Seattle as a local market store.
The company had decided to enter Viet Nam market in 2013 with products
comprise of beverage, food, souvenir and roasted coffee beans bag. Since 2013,
Starbucks Viet Nam has opened 29 coffee shops, located in Ha Noi, HCM and
Hai Phong. (motthegioi.vn, 2017)

2. The importance and value of marketing plans

According to Ghose, marketing planning is that the company sets up strategic
objectives and then clarify and schedule the actions necessary to achieve that
objectives. A marketing plan allows a company to know its market and
understand its business about its strengths and weaknesses, then find the
opportunities within those strengths and weaknesses in order to meet
organizations objectives. Marketing planning helps to evaluate performance,
take advantage of strengths and minimize weaknesses and threats and figure out
new opportunities. By developing marketing strategy, organizations can promote
their business, attract customers and protect the reputation of the firm
(Rosenfarb, 2004).

3. Current Marketing Situation Analysis

Internal Audit
We will use Value chain model developed by Porter to conduct internal
analysis.
 (kfknowledgebank.kaplan.co.uk)
Primary Activities:
Inbound logistics:
After receiving packaged and processed materials from parent company in
US, Starbucks Viet Nam is in charge of transporting materials to coffee shops
by trucks. Then, each coffee shop stores them in a small warehouse and
preserve it.
Outbound Logistics:
Customers can purchase Starbucks products from Starbucks stores with a
range of products such as packaged coffee, tea, drink ware or other
specialized bottles and cups.
Starbucks Vietnam coffee shops chain currently consists of 29 shops, located
in Ha Noi, HCM and Hai Phong. (motthegioi.vn, 2017)
Marketing & Sales:
Since 2013, when Starbucks entered in Viet Nam market, the company has
done a lot of marketing activities to raise customer awareness and increase
demand. For example, from PR corporating with press agencies to boost
brand awareness when first entering, offering free coffee cups when opening,
launching frequent sales promotion programs such as coupons, discounts (as
what we already discussed in Promotion part in Task 1)
 Service: In training process, Starbucks staff are already learnt to listen to their
customers to maintain customer brand loyalty, however, in Viet Nam coffee
stores, there are public complaints on Facebook that Starbucks staff shows
disrespect to customers.
Support Activities:
Procurement
Raw materials are purchased by parent company in US. (cafef.vn, 2016) In
particular, coffee beans are bought from a lot of sources around the world
including Viet Nam. Then, coffee beans are dried, roasted, ground and
packed. From this point, Starbucks coffee products are distributed throughout
the world to ensure that all flavors in the stores meet a common standard.
Human Resource Management:
Starbucks Viet Nam recruits employees who can communicate in two
languages: Vietnamese and English, pay a great interest in the job, put
customer at first, have good teamwork skills; always seek out opportunities
to develop career; and have certain knowledge on coffee and Starbucks.
(starbucks.vn) Therefore, it can be said that the labor force of Starbucks is
quite skilled.
Starbucks also focuses on employee training, bringing a dynamic working
culture to every employee.
Technology Development:
Starbucks uses technology not only for coffee-making processes (to ensure
consistency in taste and quality) but also to manage customers data. In
Starbucks Viet Nam official website on Card section: a customer can create
a Starbucks account and keep track of special sales promotion programs for
members.
External Audit
Micro-environment
Porters 5 forces framework would be used to analyse micro environment of
Starbucks that includes suppliers; intermediaries; competitors and customers.
 (CGMA, 2013)
1. Threat of new entrants: Low
Establishing a large coffee shop chain in Viet Nam takes a lot of financial
capital, efforts and time to develop economies of scale to reduce production
cost per unit and to create a strong branding. Customers have already built
certain loyalty to Starbucks because of the taste and the shops atmosphere,
which makes it difficult for a new entrant to acquire customers from
Starbucks.
2. Threat of substitutes: High
A survey conducted by FT Confidential Research in the five largest ASEAN
economies (except for Singapore) in 2015 shows that Vietnam is the only
country where Starbucks is not the most popular coffee franchise chain due
to the popularity of domestic brands such as Trung Nguyen and Highlands.
In Viet Nam market, customers have a wide range of choice when it comes
to coffee shops. Therefore, they can switch brands from Starbucks to other
easily and at a low switching cost.
Moreover, beside direct substitutes, Starbucks Viet Nam also has to counter
threats from other indirect substitutes such as coffee which is sold at
 vendor, quite common in Viet Nam or milk tea a current thriving beverage
market.
3. Degree of rivalry: High
Starbucks competitors such as Highlands Coffee, The Coffee House are
innovating constantly to satisfy customers needs and wants and planning
marketing strategies to acquire customers. Moreover, the switching cost is at
a quite low level for customers, which makes the competition even more
intense for Starbucks.
4. Bargaining power of customers: Moderate
The thing that customers want when they come to a Starbucks coffee shop
is not only for the products but also the premium service of the brand.
(Keller, 2001). Starbucks always enhances the brand awareness through their
original products, and continue to introduce new products that adapt to
changes in customers taste and preference or the difference demands in
different markets. Because of Starbuckss unique taste and atmosphere, the
company has earned brand loyalty from a significant number of customers.
They would continue to purchase when the price increases.
However, if the price increase significantly, there would be the case when
customers walk away since switching cost is low and there are a lot of
substitutes in the market.
Overall, bargaining power of customers is considered as Moderate
5. Bargaining power of suppliers: Low
In the context of Starbucks, the company purchases raw materials from a lot
of sources around the world. Therefore, large overall supply lowers
significantly the impact of individual supplier on the company. Moreover,
except for Arabica coffee which is only grown under strict conditions, other
types of coffee beans are easy to find a supplier. Then, switching cost of
supplier for Starbucks is low. To conclude, suppliers in general has low
bargaining power to Starbucks.
Macro-environment
The model used for macro environment analysis in this part is PESTEL with
P,E,S,T,E,L represents for Political, Economic, Socio-cultural,
Technological, Environmental and Legal, relatively. However, I would focus
particularly on Political, Legal, Economic and Social-cultural factors that
have great and direct impact on business operations of Starbucks Viet Nam.
Political
Vietnam has only one Party controlling the entire country since Viet
Nam is the Socialist Republic country. Therefore, it ensures political
stability for enterprises doing business in Viet Nam, which avoids acts
of terrorism, the consequences of strikes and so on.
Legal
For a foreign company like Starbucks Viet Nam, raw materials have
to be imported from overseas. Therefore, high tariff expense is a
significant issue to Starbucks, which also is one of the reasons why
the price is set at a high level. (kinhdoanh.vnexpress.net, 2015)
Economic
o Economic growth
National Gross domestic product (GDP) in 2016 raised by 6.21%
comparing to 2015. In July 2017, GDP was 7.46%, increasing by
0.7% compared with the same period last year. (Statistical
Handbook of Vietnam in 2016)
The growth of GDP is a good new for Starbucks since GDP growth
results in an increase in the demand for goods and services
(dankinhte.com).
Socio-cultural
o Increasing population
The country population in 2016 was 92.70 million persons,
increased by 985.3 thousand persons, in which, urban population
is 31.99 million. Moreover, young population, from 15 to 55 years
old, accounted for approximately 61%. (Statistical Handbook of
Vietnam in 2016)
 Increasing population especially in urban areas is an opportunity
for Starbucks since it expands the number of potential customers.
o Increase Income and consumption
In 2016, the monthly average income is 3 million VND, increasing
by 15.6% compared to 2014. Moreover, the monthly average
expenditure is 2,1 million VND in 2016, growing by 14.3% over
2014. (Statistical Handbook of Vietnam in 2016)
It has shown that Vietnamese generally earn and spend more
money, which is a good sign for Starbucks since their price is set
at a high level. Increasing income would also mean an increase in
the number of consumers can afford Starbucks products
o Drinking coffee culture
On the report on Agriculture in Viet Nam written by BMI
Research, the amount of coffee consumption saw a significant
increase 3 times higher in a decade from 2005 to 2015, 0,43 kg
per person per year to 1,38 kg. The figure is also expected to rise
to 2,6 kg per person per year in 2021. (cafef.vn, 2017)
Viet Nam is a country has an increasing and high consumption of
coffee, therefore, Starbucks does not need to change consumer
habit from drinking tea to coffee, like other Asian countries. The
coffee shop market in Viet Nam is surely promising to Starbucks.
SWOT
Basing on Internal and External Audit and 7Ps Marketing Mix in Task 1, we have
a SWOT analysis table.
 Strengths
+ A strong branding with various high
quality Western standard products would limits the market scope of Starbucks in
attract new customers to taste the famous Viet Nam.
coffee brand and experience premium
service environment.
+ Raw materials are processed and
standardized by parent company, which
leads to consistency in taste among
coffee shops.
+ A skilled labor force results in short
waiting time for customers when
serving, which enhance customer
experience.
Opportunities
+ Stability in political conditions would
result in high level of safety when doing
business.
+ Viet Nam is a country with a
developing economy, increasing income
and living standard. It would be an
attractive market for Starbucks since the
number of potential customers are
significantly rising.
+ Vietnamese already developed a
coffee-tasting culture with high amount
of coffee consumption per person. When
entering in Viet Nam, Starbucks does
not need to change customers habit from
Weaknesses
+ Price is set in such a high level that it
+ Behavior and Attitude of staff leave
unsatisfied experience to customers,
which would worsen customer brand
loyalty.
+ Promotion activities are not invested
enough capital to raise brand awareness
more effectively.
Threats
+ Switching cost of customer from
Starbucks to other brands is low, so
bargaining power of consumer is higher.
Starbucks would need to consider it
when planning to increase price, the
number of customers would decrease.
+ Degree of rivalry and threat of
substitutes are high. It leads to intense
competition among brands.
+ Tariff expense is expensive. To a
foreign company needs to import
materials, that results in a significant
increase in production cost per unit.
tea to coffee. Therefore, it saves time
and efforts for Starbucks.

4. Marketing objectives
Our group decided to come up with a marketing plan to introduce Starbucks Viet
Nams new products, which are 2 Christmas holiday drinks:

Christmas Tree Dark Mocha Vanilla Nougat Latte

(Starbucks Vietnam Facebook) (Starbucks Vietnam Instagram)

For the 2 new products, we set the following marketing objective to be achieved:
Sales volume: 17,000 cups for each product in one month. Equivalent 20 cups
per day per coffee shop on average.
This objective is attainable since holiday drinks from Starbucks always attract a
large number of customers to taste.

5. Segmentation, Targeting and Positioning

Segmentation
We decided to divide Viet Nam market into small segments:
Geographic:
o Regions: 3 regions: North, South and Central.
o Cities: 3 cities: Ha Noi, HCM and Hai Phong.
Demographic:
 o Age: 12 19; 19 30; 30 45; 45 65 and above 65.
o Gender: Male and Female.
o Income: Low, Medium and High.
o Occupation: Students; Officers; Businessman and so on.
o Nationality: Vietnamese; America; English and so on.
Psychographic
o Lifestyle: Western or Eastern.
o Personality traits: family-oriented; caring; considerable;
fearless and so on.
Behavioral
o User status: nonusers, ex-users, potential users, first-time
users and regular users.
Targeting
We would base on demographic segments to choose targeted market. The target
segments we choose for 2 new products are customers aged from 19 30 and 30
45 and have medium to high income level. The reason behind choosing
segments is that since the 2 products are set at high level, that segments can
afford to pay for that price.
Positioning
Positioning is an activity to make the product to gain a clear. Distinctive and
desirable place in consumer mind. (Tran Cam Tu, 2017)
The competitive advantage or the differentiation of 2 holiday drinks lies in the
product itself the special and limited drinks for this year holiday season.

6. Tactics and Action

Basing on 7Ps marketing mix analysis in Task 1, for the 2 new products, besides
product, physical evidence and promotion, other Ps do not have any adjustments.
Product Style and Design (Level 2 of Product: Actual product)
o Packaging: A new color-in holiday cup
 (USA Today, 2017)
The design of a cup is a combination of icons representing for Christmas
spirit, connection, love and giving joy. Leaving symbols uncolored and
lot of blank spaces encourage customers to design their own version by
adding color.
o Appearance: Christmas Tree Dark Mocha
By utilizing the existed recipe: Dark Mocha, Starbucks creates
differentiation by imitating Christmas Tree look with a green swirl of
whipped cream and green and red sprinkles.
Physical evidence
The decoration inside the coffee store also has changed to suit Christmas
spirit.
A Christmas tree made of Red Starbuck cups.
 (Image cut from our video clip)
A new colorful menu board for Holiday products.

(Image cut from our video clip)

Promotion
o A special sales promotion program

(Photo edited by our group)

1 Plus 1 program: When purchasing a grand-sized Christmas beverage
in happy hour: 3pm 5 pm on Wed, customers would receive a free
Christmas beverage. That would definitely boost sales volume for the 2
new products
o Our advertising video:
 Link:
https://drive.google.com/file/d/1TeWOULyoJySJlL13PSrlzQCEz
hn1E8K2/view?ts=5a20199a
Hope you enjoy it!

7. Allocation of Resources
Budget allocation
Budget for marketing activities for 2 new products would get from 5% of total profit.
In which, following activities expenses account for a specific percentage of total
budget for marketing.
Decoration expense: 25%.
Printing new cup, banner, menu expense: 25%.
Filming advertising video expense: 50%.
People allocation
Decorating in each coffee shop: 2 people.
Manage marketing activities consistent throughout branches: 3 people in
HCM, 2 people in Ha Noi and 1 people in Hai Phong.
Taking charge of printing and distributing new cups, banners, menu: 2
people.
Taking charge of hiring filming teams and managing filming advertising:
3 people.

8. Evaluating and Monitoring marketing plans

Each weak, a people in Marketing Function of Starbucks Viet Nam in each region
would supervise and evaluate Marketing activities in every coffee shops.
Also, after each weak, sales analysis and cost-profitability analysis reports are
conducted on each marketing activities and each product.
If the sales analysis of product does not meet initial expectation, prompt actions
would be taken such as launching a discount program or selling the drink in a combo.
If the cost-profitability analysis shows negative result (such as cause loss) in any
activities, the activities would be stopped implementing in the next weak.
 CONCLUSION

After finishing this assignment, we get to understand more about the importance
of Marketing mix in and how Starbucks and Highlands Coffee use Marketing Mix
to accomplish their overall business objectives, and the reason why Starbucks has
made a huge succeed in its market is that they bring to their customers not only a
quality cup of coffee, but also the best experience and customer service at any
stores.
We have learnt many things by identifying strategies the company used to meet
the customers demand. We also gave a basic marketing plan for it which
introduce Starbuckss new products.
Finally, we want to say thank you to our lecturer and our tutor who have taught
and supported us a lot in this semester.
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 INDIVIDUAL CONTRIBUTION FORMS
PHAM THU HUONG - INDIVIDUAL
CONTRIBUTION FORM
Module: Marketing Essentials (ME), Semester 1, 2017/18
Assignment title:
Group number: 12
Are you satisfied with
Group members Group members part of Contribution
his/her work and attitude?
name contribution evaluation
(Why?)

Bui Minh Chau Yes 80

Nguyen Hong Linh Yes 80

Bui Thi An Nguyen Yes 80

Product
Place
Explain the shift from the 4Ps to the
7Ps & the significance of the
extended marketing mix
Pham Thu Huong Current Marketing Situation
Marketing Objectives
Tactics & Action
Allocation of resources
Evaluating and Monitoring
marketing plans
(1) What part(s) of group assignment you have done?
In this assignment, I compared the ways in which those two organizations use Place
element to achieve their overall business objectives, and explain the shift from the 4Ps to the

7Ps and the significance of the extended marketing mix. I also analyzed Current Marketing

Situation, Marketing Objectives, Tactics & Action, and Allocation of resources. I also with
my group mates discussed the idea for our Promotion video.

(2) Did you face any difficulty when doing group work?
To be honest, I did not have much difficulty while doing work with my group. I think that
working as a group can accomplish a task far more effectively than individuals working
independently. So working in a group does not mean to us like dividing the assignment and do
it separately. Firstly, we discuss together about each tasks in the assignment and what needs to
be done. Although there was some disagreement between us, but no fierce controversy.
Moreover, we are not in the same class, so the schedule of us is not similar, and we found it
too difficult to meet and discuss about the assignment together.

(3) How did you solve that problem?

Each member adjusted their timetable as much as possible to spend time with others, and
we spent most of free time to work together.

(4) What your future plan to deal with group work?

I will manage time better.
 BUI THI AN NGUYEN - INDIVIDUAL
CONTRIBUTION FORM

Module: Marketing Essentials (ME), Semester 1, 2017/18

Assignment title:
Group number: 12

Group Group members part of Are you satisfied with his/her Contribution
members name contribution work and attitude? (Why?) evaluation
Pham Thu
Yes 100
Huong

Bui Minh Chau Yes 90

Nguyen Hong
Yes 90
Linh
Promotion
Marketing planning process
STP & Value Chain & 5
Bui Thi An
forces
Nguyen
Marketing objective
Evaluating and Monitoring
marketing plan
(1) What part(s) of group assignment you have done?

In this assignment, I compared the ways in which those two organizations use Promotion
element to achieve their overall business objectives, and gave an overview of the marketing
planning process and marketing strategy with Linh. I also provided the information about the
value chain, STP analysis and 5 forces of the company we researched, and explain the
Evaluating and Monitoring marketing plan. I also with my group mates discussed the idea for
our Promotion video.

(2) Did you face any difficulty when doing group work?
Actually, I did not have much difficulty while doing work with my group, because we
understand that working in a group is not only to divide the tasks and complete the assignment
separately, so we always worked together. Everyone shared their own ideas and we came to a
decision.
However, therere still a difficulty we had to struggle with which is some members are in
another class, the schedule of us is not similar, so we found it too hard to set up available time
to meet and discuss about the assignment together.

(3) How did you solve that problem?

Each member adjusted their timetable as much as possible to spend time with others, and
we spent most of free time outside school to work together.

(4) What your future plan to deal with group work?

I will manage time better.
 BUI MINH CHAU - INDIVIDUAL CONTRIBUTION
FORM
Module: Marketing Essentials (ME), Semester 1, 2017/18
Assignment title:
Group number: 12

Please give a mark of 100 to the group member(s) who you believed made the greatest
contribution to the group (other than yourself). Please rate the contribution of each other
member of your group on a scale of 0 to 100. You are not required to rate your own
contribution.

Group members Group Are you satisfied with his/her work Contribution
name members and attitude? (Why?) evaluation (scale
part of 0 to 100)
contribution
Pham Thu Huong Im satisfied because she is the 90
leader who provided work for each
member.
Bui Thi An Nguyen Im satisfied. 80

Nguyen Hong Linh Im satisfied. 80

Bui Minh Chau Physical

(me) Evidence
Price
Tactics and
Actions
Filming and
Editing
videos

Briefly reflect your effort that contributed to group assignment. Generally, answer the question:

(1) What part(s) of group assignment you have done?

In task 1, I did 2P which are physical evidence and price. In task 2, I did tactics and action. In
video clip, I discussed ideas with members. I was a cameraman and editor.
(2) Did you face any difficulty when doing group work?
Previously I filmed and created videos to celebrate special occasions or send birthday wishes
to my friends. Overall, the clips are low resolution or edited with smartphone apps. This is the
first time I fully assume the role of editing a 1080p ad. The editing just ensure the image quality
brings quite a lot of difficulties for me.
(3) How did you solve that problem?
I read and watched the tutorial clips on the internet.
(4) What your future plan to deal with group work?
I would be more active when doing tasks.
 NGUYEN HONG LINH - INDIVIDUAL
CONTRIBUTION FORM
Module: Marketing Essentials (ME), Semester 1, 2017/18
Assignment title:
Group number:

Please give a mark of 100 to the group member(s) who you believed made the greatest
contribution to the group (other than yourself). Please rate the contribution of each other
member of your group on a scale of 0 to 100. You are not required to rate your own
contribution.

Group members Group Are you satisfied with his/her work Contribution
name members and attitude? (Why?) evaluation (scale
part of 0 to 100)
contribution
Phm Thu Hng Absolutely, she gives us a lot of 100
information, solves our mistakes
and has a lot of great ideas.
Bi Minh Chu Absolutely, she is good at making 100
groups video.

Bi Th An Nguyn Absolutely, because she helps us to 100

do a lot of difficult part.

Nguyn Hng Linh People,

Process (Task
1). Company
overview; the
importance and
value of
marketing plans
(Task 2)

Briefly reflect your effort that contributed to group assignment. Generally, answer the question:
(1) What part(s) of group assignment you have done?
In the first step of this report, I show the difference between Starbucks Coffee and Highland
Coffee in some part of 7Ps marketing mix. Specifically, I explain carefully the people,
process of Starbuckss marketing mix, and compare it with Highlands. In the next step, I
show an overview of the marketing planning process, including analysis, planning, marketing
strategies and implementation and control. Secondly, I introduce a little bit about the overview
of Starbucks Coffee. Last but not least, I explain the importance and value of marketing plans.
(2) Did you face any difficulty when doing group work?
Yes a little bit. We have difficult in meeting each other because we are in difference class.
(3) How did you solve that problem?
We will try expert the whole groups free times to meet each other and do this assignment
together
(4) What your future plan to deal with group work?
We will try harder to get an Distinction.