highlands coffee
TRANSCRIPT
“Big decisions can’t wait”
Facilitator: Mr. Moulik Zaveri
Authors: Nguyen Truong Minh Hien | Nguyen Lam Quoc Trung | Tran Thi Kim Mai|
Nguyen Thi Phuong Thao | O Quoc Vinh
HIGHLANDS COFFEE MARKET RESEARCH REPORT 2012
2
RMIT International University Vietnam BP181 Bachelor of Commerce Program
ASSIGNMENT COVER PAGE
Your submission will not be accepted unless all fields below are completed
Course Code:
MKTG 1254
Course Name:
MARKET RESEARCH REPORT
Location where you study:
SGS
Title of Assignment:
MARKET RESEARCH
File(s) submitted
1
Student name:
Nguyen Truong Minh Hien
Nguyen Thi Phuong Thao
Nguyen Lam Quoc Trung
Tran Thi Kim Mai
O Quoc Vinh
Student e-mail address:
Learning Facilitator in charge:
MOULIK ZAVERI
Assignment due date:
6 January 2012
Date of submission:
6 January 2012
Number of pages including this one:
73
Word Count:
4,984 words (applied for main contens)
3
CONTENTS
EXECUTIVE SUMMARY ............................................................................. ....4
1 BACKGROUND ........................................................................................ ….5
I. THE COFFEE MARKET IN VIETNAM ....................................... ….6
II. COMPANY PROFILE .............................................................. ….7
2 PROBLEM DEFINITION, PURPOSE &HYPOTHESIS ............................. ....9
A. MARKETING PROBLEM ......................................................... ..10
B. RESEARCH PURPOSE, OBJECTIVES, HYPOTHESIS .................. ..10
3 ALTERNATIVE METHODS, CHOSEN METHODS & TIMELINE .......... ..13
I. ALTERNATIVE…………………………………………………………………….…14
II. CHOSEN METHODS…………………………..……………………………….…16
III. REPORT TIMELINE……………………………………………………..…….…..18
4 PROPOSED SAMPLING & ACTUAL SAMPLING ................................. ..19
5 SAMPLE STATISTICS ............................................................................. ..21
6 ANALYSIS & FINDINGS ................................................................. . 28
I. QUANTITATIVE RESEARCH………………………………………………......29
II. QUANLITATIVE RESEARCH…………………………………………………...37
7 CONCLUSION, RECOMMENDATION & LIMITATION…………….….….40
I. CONCLUSION ........................................................................ ..41
II. RECOMMENDATION ............................................................. ..41
III. LIMITATION .......................................................................... ..45
REFERENCE ................................................................................... .46
APPENDICES .................................................................................. .48
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EXECUTIVE SUMMARY
This report is conducted to help Highlands solving some problems that are occurring in their
business. Firstly, based on the determinant attributes, Higlands can improve its marketing to
meet the consumer‟s needs and compete with the competitors. Next, some effective PR
strategies will be suggested to build trust and credibility through the analysis of favorable
publicity state. Finally, it will help Higlands to understand buyer behavior then they may
propose a more powerful 360 degree marketing and distribution to capture awareness and
stimulate sales.
The report firstly introduces the background of the company and the marketing problems
which are some difficulties in understanding the consumer determinant attributes for
purchasing R&G products in local market; remaining favourable publicity state of the brand
after its several severe scandals and exploring buyer behaviours of R&G products as well.
Then in order to deal with these problems, we apply both quantitative and qualitative research
methods which are survey and focus group discussion respectively to generate accurate and
reliable results. In the sampling methods, we choose non-probability methods which are
convenience and quota sampling because of time and human resources constraints. Next, we
assign the work to each member and set up a detail schedule. As soon as the survey is
designed completely, we start to conduct the survey and collect the data. Putting these data
into SPSS and analysing them, we can test for the hypothesis we established from the
beginning. Moreover, this report will provide some recommendations that are PR strategies to
rebuild the trust, refreshment with innovative package and diversified trade marketing. Along
with these recommendations, some limitations will be discussed as well. These are
unconscious misinterpretation, deliberate falsification, targeted population and shortage of
time as well. Finally, the report will end with a conclusion which summarizes all the key
points we discussed.
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CHAPTER 1
BACKGROUND OF HIGHLANDS
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According to GiaCaPhe (2011), coffee consumption in Vietnam achieved rapid growth in the
world with 31%, from 1.208 million bags in 2009 to 1.583 million bags in 2010.The research
of IAM in the habit of using coffee shows that there are 65% of consumers have used Vietnam-
consumers‟ coffee drink coffee seven times a week, in favour of males (59%); while about
21% of consumers use instant-coffee from 3 to 4 times a week and slightly leaning consumer
groups are women (52%). The usage rate of coffee at home and outside is equal to 49%-50%
(Tran 2010).
The graph above shows that the growth of Vietnam‟s coffee production over 16 market years
is very enormous. However, from 2009 to 2011, there was a fluctuation in the production of
Vietnam‟s coffee.
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Based on the chart, it is easily to recognize that Vietnam is the one of the top twelve coffee
exported-countries increase output in 2010 and 2011 with Brazil. Although there is increasing
the production, the exportation coffee and number of coffee drinkers, in general, the coffee
consumption in Vietnam decreases slightly compare with other countries. According to
International Coffee Organization (ICO), “Vietnam‟s domestic coffee consumption is only
3.6% of total production, the lowest of all exporting countries”. “Vietnam's rising living
standard has contributed to restructuring the group of coffee drinkers, with more young
people in cities picking the bitter beverage now while it was the choice of elderly people and
rich families in the past” (Reuters 2008). In recent years, many foreign coffee brands like
The-Coffee-Beans, GloriaJean or Illy have entered into Vietnam while domestic coffee
brands like VinaCafé, TrungNguyen or Higlandshave been able to maintain its strong
positions in the market. In fact, Higlandshas been in the market for several years producing
high quality coffee products for both Vietnamese and foreign consumers.
Higlandsis a coffee brand of VietThai Company (VTI). In 2002, the very first
Higlandscoffee shop was opened. Up till now, it has over 70 coffee shops in six provinces
including Hanoi, HoChiMinh, HaiPhong, DaNang, VungTau and DongNai.
Higlandsbelieves in serving people rich experiences, based around coffee which come from
doing everything well. Packaged R&G coffee products of Highlands are quite diversified,
contain both international and Vietnamese flavoured styles. For international coffee blend,
there are Espresso-Full City Roast, Espresso-Cinnamon Roast, Espresso-Arabica Supreme,
Espresso-Decaffeinated. For traditional Vietnamese blends, there are Gourmet, traditional
and Heritage.
Recently, Higlandshas been suffered from severe scandals like having a dead mouse inside
the cupcake several years ago or reprinting new expiry date for over 31,000 coffee cans.
Hence, many consumers really worried and do not believe about the quality of Highlandss‟s
products anymore. Those scandals make Highlands‟s image less value in consumers‟
perception in brand image.
Therefore, this marketing research aims to help Higlandsto realize its target market‟s
determinant attributes and buying behaviour of purchasing R&G product and its brand
favourability in consumer mind-set.
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CHAPTER 2
PROBLEM DEFINITION, PURPOSES & HYPOTHESIS
I. Marketing Problem
First problem: Higlands needs to understand the consumer determinant attributes for purchasing R&G products in local market.
Second problem: They have to figure out the favourable publicity state of the brand after its several severe scandals.
Third problem: To explore the buying behaviours of “R&G” consumers.
II. Research Purpose-Objectives-Hypothesis
Purposes Questions Objectives Hypotheses
1. Based on the determinant attributes, Highland would be able to promptly modify its marketing mix strategy to match consumers’ need and stay competitive in the market.
What are the attributes that influence consumer choices for R&G coffees? How do these attributes influence the consumers’ decision for R&G products? Which attribute is the most significant one?
To determine major factors influence consumers’ purchasing process in R&G market.
Ho: The taste of the R&G coffee brand is not the highest importance for the consumers. H1: The quality of the R&G coffee brand is the highest importance for the consumers.
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2. The analysis of favourable publicity state will help Highlands to come up with effective PR strategies to build trust and credibility.
What are the most popular brands currently in the coffee market? How well Highland is positioned inside consumer mind? How do consumers perceive Highland relative to its key competitors, Trung Nguyen and VinaCafe? How does favourable publicity determine the relationship between consumer-level perceptions of brands and their purchasing process? And how do promotional tools impact consumer preferences?
To obtain ratings and rankings in term of brand awareness between players in R&G market. To determine the Highland position in consumers mindset and to measure the gap to reach the desirable brand image. To identify whether favourable publicity play a significant role in decision-making of R&G consumers.
Ho: Highland is in the top 3 most preferable brand for R&G products. H1: Highland is not in the top 3 most preferable brand for R&G products. Ho: 50% of the qualified respondents are able to recognize Highlands ‘promotion and marketing activities. H1: Less than 50% of the qualified respondents are able to recognize Highlands ‘promotion and marketing activities.
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3. By understanding different attitudes and usages in the process of buying decision (people’s attitude toward information, the choice of the purchase place, getting aware of the price…), Highland may propose a more powerful 360 degree marketing and distribution to capture awareness and stimulate sales.
Where and when do consumers usually purchase R&G products? How often do they shop? How much are they willing to spend per purchase? Is it more likely that consumers buy R&G products from their favourite coffee shops? Are consumers buying decision process influenced by other end-users references such as friends, family, co-worker…? Who is the purchaser and who is the end users?
To observe consumers attitudes and usages when shopping for R&G products. To define the connection between coffee and café. To identify relationship between personal and references and reference groups with purchase intentions To determine whether R&G purchaser is the real end-user.
Ho: Vietnamese consumers prefer to enjoy coffee at the café shops H1: Vietnamese consumers do not prefer to enjoy coffee at the café shops Ho: Consumers normally purchase R&G coffee products at the café shops. H1: Consumers normally do not purchase R&G coffee products at the café shops. H0: Consumers normally purchase R&G coffee products once every three weeks. H1: Consumers normally do not purchase R&G coffee products once every three weeks. H0: Consumers normally spend around 50,000 vnd to 99,000 vnd to purchase R&G coffee/ time. H1: Consumers normally spend less than around 50,000 vnd to purchase R&G coffee/ time. Ho: There is a weak connection between a coffee store and R&G goods of the same gourmet brand. H1: There is a strong connection between a coffee store and R&G goods of the same gourmet brand. Ho: There is a significant relationship between purchasers of R&G coffee and the end-users. H1: There is no a significant relationship between purchasers of R&G coffee and the end-users. H0: Highland is in the top 3 most preferable brand for R&G products. H1: Highland is not in the top 3 most preferable brand for R&G products.
ALTERNATIVE METHODS, CHOSEN METHODS &
REPORT TIMELINE
CHAPTER 3
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I. Alternative Methods
1. Qualitative research methods
According to Belk (2006), qualitative research is the method for the researchers to gather
all information, opinions and data collected from focus group discussion, in depth
interview, secondary data analysis and projective technique to understand deeply the
consumer‟s behaviour, their attitudes and beliefs toward a specific product of one brand.
Furthermore, the most important element that we concerned about is what the answers of
the respondents are in words not just the number of respondents. In our research, by
applying these methods for R&G coffee of Highlands, we want to know what are the
factors that influence Vietnamese coffee drinkers and their attitude with the R&G coffee in
general and specifically for Highlands.
QUALITATIVE
METHODS
EXPLANATION ADVANTAGES
Focus Group Discussion
This is an unstructured and free-flowing
interview with one moderator and six to
ten participants, who together discuss a
particular subject (Zikmund et al 2011).
Similarly, in a study by Morgan (1997),
focus group, which is a method
included in qualitative research, gathers
data via group interaction
Developed in the short time, using FG
discussion, designed topics for
respondents and get their opinions in an
hour of discussion.
Effective technique for idea generation,
because lack of new ideas, instead of
trying to find it out, asking for
respondents‟ opinions to improve the
product
Flexibility, it is really easy to find
participants and switching the time for
the convenience with respondents
The interviewees are willing to answer
the questions without hesitation because
they are put under no pressure.
Snowballing: a comment by one
individual often triggers a chain of
responses from the other participants.
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2. Quantitative research methods
Quantitative research, which is including survey questionnaires, mail survey, Internet
survey and personal interview, are the basic methods that required researchers to collect the
statistics and data and based on what researchers receive to analysis the main problem of
the research. Moreover, in this quantitative research, we mainly focus on the numbers and
the statistics to determine the respondents‟ beliefs. In addition, using these tools for our
research, we have found out the determinants that affect the purchasing power of customers
though R&G products.
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II. Chosen Methods
By applying a mixed-model of both Qualitative and Quantitative Research Method, our
team believes that it could help to generate more accurate, credible and reliable results than
utilizing just one amongst two most common methodologies.
1. Quantitative Research
In order to learn more about coffee preferences, brand awareness, and attitude of the
Quantitative
Method
Explanation Advantages Disadvantages
Survey
Questionnaires
Survey is one of the most
popular methods in
quantitative research for
collecting primary data
by communicating with a
representative sample of
individuals (Zikmund et
al 2011).
Can be done quickly.
Low cost.
Efficient and accurate
means of assessing
information about
population.
Large sample is feasible
so the sample‟s result is
more likely to close to
the population.
Variety of errors.
Questionnaires may be
structure, with limited
choices, or
unstructured, to allow
open-end responses.
Mail Survey Mail survey is a self-
administered
questionnaire that
researcher can build a list
of questionnaire and send
to respondent through
email (Zikmund et al
2011)
Geographic flexibility,
do not concern where
respondents coming
from, as long as they
have an email is enough.
Low cost.
Respondent
convenience.
Anonymity of
respondent sensitive
problems are solved.
Absence of interviewer
respondent cannot
question the
interviewer when they
have problem in
understanding the
questionnaires.
Response rate it is a
significant obstacle
because respondents
consider these emails
are spam
Personal
Interview
This is a face-to-face and
two-way conversation in
which an interviewer
asks a respondent to
answer questions
(Zikmund et al 2011).
Providing the
opportunity to give
feedback to the
respondent.
Completeness of
questionnaire.
High participation.
Probing complex
answers.
Length of interview
perhaps up to 90
minutes more in-
depth information
collected.
Interviewer influence.
Expensive for each
interview.
Possibility of
interviewer‟s bias.
Respondents are
unwilling to speak
truthfully because of
sensitive reasons or
lacking of anonymity.
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consumers, a set of self-administered questionnaires is designed for the purpose of
getting responses from different sampling sub-groups. Known as cost- effectiveness,
less time-consuming and highly geographical flexibility, it helps to generate a broad
view of the whole R&G coffee market consumption with the sampling size of 127
consisting of students, office workers, households and so on. Moreover, the detailed
sampling plan is clearly demonstrated on how the sample is chosen for the use of this
study‟s research methodologies and techniques in the following section of this report.
2. Qualitative Research
Primary data generated from the use of self-administered questionnaires technique is
insufficient for the market research team to understand thoroughly all-marketing
problems that have been raised. Therefore, a focus group discussion will be conducted
by professional moderator leading discussion for groups of 6 homogeneous consumers,
aged from 18 to 35, class A, B, and living in HCMC. In fact, having a focus group
discussion does not require lots of money or valuable incentives for the interviewees as
compared to in-depth interview while still being able to carry on the expectation of
providing an in-sight into the consumption of Vietnamese coffee products.
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REPORT TIMELINE
Process In charge members
W6 W7 W8 W9 W10 W11 W12
Research the background of R&G market in HCM City
Thao X
Determine the marketing problems, research purposes, research questions and research objectives and hypothesis of the research
Trung X
Choose appropriate methodologies (including quantitative, qualitative)
Hien X
Submit the proposal and get feedback from teacher
All members X
Make appointment with interviewees by emails and prepare questions for focus group discussion
Mai X
Run 1 hour of Focus group discussion within 10 interviewees
Hien X
Design pre-tested and practice on 15-25 respondents as the quantitative research
Vinh X
Develop to the real surveys by both emails & papers directly to respondents in 5 days with 100 respondents
Mai, Thao X X
Collect and analyze the data All members X X
Integrated information and make conclusions and recommendations based on the final data
Trung, Hien X X
Finish the whole project and waiting for teacher’s feedback
All members X
Review, print and submit the final project
All members X
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RP
CHAPTER 4
PROPOSED SAMPLING & ACTUAL SAMPLING
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Based on the information of the current Vietnam‟s coffee market, Coffee is a competitive
product with many potential domestic competitors such as TrungNguyen and Vinacafé, Highlands
started from the very last brands in the coffee market and it is a big disadvantage for Highlands to
complete with the strong built brands. In addition, this project mainly focuses on the Roast &
Ground coffee of Highlands, which is allotted in almost entire super markets and markets around
Vietnam. Moreover, Vietnamese usually use coffee every morning before going to work as a habit
and on average; they drink every 2 cups per day. Therefore, the population that we obviously
target on is the coffee drinkers who are from 18 to 35, 38 to 55 and above 55, only consumers
who live in Ho Chi Minh City. However, because the price of each R&G‟s Highlands package is
higher than other brands so we aim at people with the middle and high income. Normally, the
coffee drinkers that we want to seek for the project are business woman/man, employees and
employers.
Otherwise, the target population size of R&G coffee is quite large, including all of the
purchasers and coffee drinkers. From the report, we use survey and focus group to apply for our
research. For the survey, we prepared specific questions and choose 130 random respondents that
we found in the super markets, markets and office but only 127 responses. However, the research
team had to eliminate 10 respondents who don‟t drink coffee. Hence, there are only 117 qualified
respondents for our research, it took us nearly 1 week to collect the answers and 1 week to classify
all of 150 answers. For the focus group discussion, firstly we designed a full 9 topics in 9 different
questions for the respondents and decided to find 10 people but to the very last minutes, there are
only 6 people who are willing to help us, 3 of them are housewives and 3 of them are coffee
drinkers. Thus, proving a camera recording, it is easier for us to follow the conversation.
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CHAPTER 5
SAMPLE STATISTICS
21
Gender structure of Respondent
In the survey that we made, including more than 20 different questions with 4 sections and there
are 130 respondents, because some of the respondents are not reliable so it is remaining only 110
surveys that we collected, it is nearly 86% of the total surveys. Moreover, the number of female
respondents is more than 27% and there is 64% number of male„s respondents, it can be explained
by our random selection of the respondents. Thus, coffee is a daily-consumed product and it is not
a separated product that is only for male or female, with this product we don‟t distinguish the
gender between male and female. Therefore, most of the female„s respondents are students and
employees who need to drink more coffee to save more energy for their activities.
Age Structure of Respondent
From the information that we have found, there are 4 groups of age in the survey. In addition, the
group with the highest portion is age from 18 to 25, it take approximately 66% of the total
population. The second group is age from 26 to 35 with 20% and standing in the third place is age
from 36 to 45, only 8 % out of 100% respondents. Finally the fourth group age from 46 to 55 is
respectively 6%. Therefore, there is no one above 55 and under 18.
Overall, Age from 18 to 25 is largest; it is because they are mostly students and young office
workers who are dynamic and hardworking, that‟s why they need to consume more coffee than
other groups.
Male 70%
Female 30%
Gender Structure of Respondents
22
Income Structure of Respondents
Only focusing on the middle and high class. In this survey, the income is calculated for the whole
family not for one person. Though the chart below, more than 50% income of the total family is
over 20 million VND. From 10 million VND to 19 million is 29% and from 5 million to 9 million, it
is constantly 9%. With 2 % is for the income under 5 million. Furthermore, we did the survey in
several of international universities and some international high schools like Raffle and RMIT
University where we can find students who live in family with high income.
66%
20%
8% 6%
Age Structure of Respondents
From 18 to 25 From 26 to 35 From 36 to 45 From 65 to 55
2%
10%
31% 57%
Income Structure of Respondents
Below 5 million VND
5 million - 9 mllion
10 million - 19 million
Above 20 million
23
Occupation Structure of Respondents
Based on the chart below, it reflected that more than 50% people are students while number of
employees (office workers) reached to 33%. Constantly, there are only 8 employers (owners of
organizations) out of total 130 respondents and remaining with a modest percentage 6%. Thus,
unemployed and people who are looking for jobs are 6 out of 130 surveys, about 6% of the total
population. The lowest percentage is 1% for housewife and 0% in retirement. By tracing following
the occupation, we know exactly who we should target on based on the total occupation structure.
Frequency Coffee Purchasing of Respondents
Observing from the shopping habit of customers in our survey, we figured out that 39 consumers go
to super markets or markets to buy coffee for each half month, with hold 31% of total frequency
purchased coffee. Moreover, 29% people buy coffee more than three weeks, with every three week,
there is 14%, it take longer time for each purchase and by watching their frequency coffee
purchasing times, we should provide a package of coffee that contain more coffee than the usual
one to be more convenient and save time for consumers. Otherwise, some of the customers who
have more time spending on shopping, usually buy coffee each week, coffee is one of important
drinks for these consumers and the number purchasing times is quite high 18% with 23 respondents.
59%
29%
7% 5%
0%
Occupation Structure of Respondents
Students Employees Employers Unemployed Retired
24
Location Structure of Coffee Purchases
For the Vietnamese in general, the places that they always go for shopping are supermarkets and
markets and in the survey, an interesting thing that we have found is almost 65% Vietnamese often
go to supermarkets and 31% go to markets to buy coffee. Therefore, we should focus on marketing
mainly in supermarkets and markets to attract more customers. And the next places are shopping
mall; convenient stores and coffee shops go from 18%, 16% and 15% of the total respondents. In
Vietnam, the family stores are very popular and there is 12% consumers buy coffee at the family
stores.
0 5 10 15 20 25 30 35
1 week/time
2 week/time
3 week/time
More than 3 week/time
18
31
14
29
Frequency Coffee Purchases
15 18
64
31
16 12
0
10
20
30
40
50
60
70
Coffee shops Shoppingcenters
Supermarkets Markets Convenientstores
Family stores
Location Structure of Coffee Purchases
25
Purchasers & buying decision makers in family
In general, consumers answered that they often buy coffee by themselves for their personal
purposes, about 43% of customers while the person who usually buy coffee for the whole
family is the mother or father, remaining at 33%. Staying equally, respondents who often buy
coffee in the family are husband or wife and brother or sister with 4% for both. In many
Vietnamese, there are maids who work in as helpers who usually do house works in the
family; these maids are the persons who often go to the markets or super markets to buy
coffee for their bosses, by 9% of total purchasers.
Sometimes the purchasers are not always the end users of a product, they may buy for their
husbands, wives, sons or daughters and it is hard to observe the actual decision makers of a
product like coffee. In some cases, purchasers buy coffee and they made decision to choose a
coffee brand by themselves but in some other case like wives who buy coffee based on the
brands that their husbands used and their husband‟s decisions
.
52
42
4
0
4
12
Myself
My mother/Father
My wife/Husband
My son/Daughter
My brother/Sister
Maids
Purchasers of Coffee in the family
Purchasers of Coffee in the family
26
65
46
2
0
3
1
0 10 20 30 40 50 60 70
Myself
Mother/Father
Wife/Husband
Son/Daughter
Brother/Sister
Maids
Decision Makers of Purchasing Coffee
27
CHAPTER 6
ANALYSIS & FINDINGS
28
I. QUANTITATIVE RESEARCH
Marketing Problem #1: Higlandsneeds to understand the consumer determinant attributes
for purchasing R&G products in local market.
Research Question - What are the attributes that influence consumer choices for
R&G coffees?
Hypothesis 1:
Brand is the determinate attribute that influence consumer choice for R&G products.
Based on the research, the amount of respondents chose “Brand” attribute which occupied
44.4%. It is one of the most important factors when purchasing coffee. Perhaps, when people
believe in quality of the brand, it is quite easy to prevent them switching to another brand.
Next, “Packaging” has 35.9% of respondents. It is likely that having nice packaging design
can attract more people to buy the products. “Taste” and “Price” occupy 34.1% and 20.5%
respectively. These figures demonstrate that not so many respondents can exactly
differentiate between the tastes and flavour. Therefore, consumers might think that taste and
price are not one of the important attributes when purchasing coffee products. Based on the
analysis, it is sufficient to conclude that the hypothesis 1 is accepted as brand is the most
important attribute that have an impact on the consumer choice for R&G coffee products.
LeastUnimportant
Unimportant Neutral ImportantMost
important
Packaging 3.40% 9.40% 23.90% 27.40% 35.90%
Brand 3.40% 5.20% 12.80% 34.20% 44.40%
Taste 6.80% 6.80% 29.10% 2.80% 34.10%
Price 6% 16.20% 27.30% 30% 20.50%
0%10%20%30%40%50%60%70%80%90%
100%
Attributes for purchasing R & G products in local market
29
Marketing Problem #2: Higlandshas to figure out the favourable publicity state of the brand
after its several severe scandals.
Research Question 1: How do consumers perceive Highlands relative to its key
competitors, TrungNguyen and VinaCafe?
Hypothesis 1: Highlands is in the top 3 most preferable brand for R&G products.
Null hypothesis H0: Highlands is in the top 3 most preferable brand for R&G products.
Alternative hypothesis H1: Highlands is not in the top 3 most preferable brand for R&G
products.
The respondents were asked to rank five roasts & ground coffee brands based on their level
of satisfaction including Higlands and its competitors such as TrungNguyen Café, Vinacafé,
Nestle and The Coffee Been & Tea Leaf. In order to generate data for this finding, the
research team was design a scale from 1 to 5 (1 for the least satisfaction and 5 for the most
satisfaction) each brand name for the respondents to rank based on their perception and
experiences with each particular coffee brand. The results are critically analysed as below.
As statistically shown on the illustration, VinaCafé prevails over other coffee brands with the
average point of 4.475/5 while Trung-Nguyen Café is occupied the 2nd
rank with 4.15. In
fact, it can be seen that there is no significant difference between Trung-Nguyen and
Higlandsas it follow by 3.974/5 seizing the third place in the most favourable coffee brands.
Predictably, Nestle and Coffeebean are reckoned to be the least favourable with 3.51 and 2.94
respectively. Hence, the hypothesis is accepted as Higlands fall into the top three favourable
brands.
Research Question 2: To what extent do the customers get to know
HiglandsR&G coffee products?
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
Highlands TrungNguyen
Vina Café Nestle Coffeebean
Average 3.974 4.15 4.475 3.51 2.94
Ave
rage
Po
int
30
To understand more about the level of brand recognition and brand awareness towards
HiglandsR&G products, the respondents were asked to recall their past memories of knowing
any of Higlandsmarketing & promotion activities.
Out of 57 respondents qualified for this question, only 10 persons (make up 18%) has been
participated in those activities while other 47 persons win a vantage position with 82%
meaning that they are not able to recognize any marketing activities hosted by Highlands. Out
of 18% of the objects, many of them could not exactly indicate the name of its activities or
campaigns.
Hypothesis 2:
50% of the qualified respondents are able to recognize Highlands‟ promotion and marketing
activities
The method of Chi-square goodness of fit is utilized to verify the above hypothesis. The
proportion of “Recognition of Highlands‟ promotion and marketing strategies” is a variable
to be verified against the hypothesis proportion of 50% “YES” and 50% “NO”.
Recognition of Highlands’ promotion and marketing
strategies
Observed N Expected N Residual
Yes 10 50 2.7
No 47 50 -2.7
Total 57
YES 18%
NO 82%
Percentage of people have been recognized any of Highlands's promotions and advertising
campaigns
31
Test Statistics
Recognition of Highlands‟ promotion
and marketing strategies
Chi-Square .410a
df 1
Asymp. Sig. .641
a. 0 cells (.0%) have expected frequencies less than 5. The
minimum expected cell frequency is 31.2.
According to the result generated by SPSS, the Chi-square of .410 which is larger than the
critical Chi-square .384 (originated from the Chi-square Distribution Table) with degree of
freedom is 1 and significance interval equals to 0.05. It is sufficient to conclude that there is a
difference between the sample distribution (proportion) and the hypothesized proportion.
Therefore, the Null Hypothesis H0 of 50% “YES” and 50% “NO” (50% of people that have
been surveyed have recognized any of Highlands‟s marketing activities) is rejected.
Marketing Problem #3: To explore the buying behaviours of “R&G” consumers.
Research Question 1: Where is the most favourable place to drink coffee?
Hypothesis 1:
Vietnamese consumers prefer to enjoy coffee at the café shops
Based on the graph, only 6% of respondents prefer to drink coffee at office or school while
nearly 48% of respondents would like to enjoy coffee at home. Most of respondents often
drink coffee at café shop with 82%. In fact, the hypothesis 1 states that most of the
Vietnamese consumers are prefer to drink coffee at the café shops will be accepted.
Research Question 2: Where and when do consumers normally purchase R&G
products?
Hypothesis 2:
Consumers normally purchase R&G coffee products at the café shops.
60%
35% 5%
Preferrable places to drink coffee
Café Shop
Home
Office/School
32
The responses explore the fact that number of respondents who choose to buy the products at
supermarket occupying 41% which has highest percentage among all the alternatives. Apart
from the convenience, many consumers seem to believe in the quality of products which are
sold in supermarkets more than via other channels. With 20% of respondents, market is
chosen to be the second place to shop for coffee products. In fact, café shop, shopping center
and convenience shop are ranked at 10%, 11% and 10% respectively. Grocery store is
ranked at the bottom (11%) meaning that respondents rarely buy coffee at those places. In
short, the hypothesis 2 indicates that consumers normally purchase R&G coffee products at
the café shops should be rejected.
Hypothesis 3:
Consumers normally purchase R&G coffee products once every three weeks
When asked about the times to buy R&G coffee, the answer for 48% of those surveyed had
purchased is approximately once over three weeks. About 15% % of people buying R&G
coffee over one every three weeks occupied the second position. Next is the percentage of
respondents with 12 % who buy on once a week. Final portion is nearly 25% for those who
buy once every two weeks. To conclude, the hypothesis 3 is accepted since the findings
illustrate that consumers normally purchase coffee products once over 3 week.
10%
11%
41%
20%
10%
8%
Places to buy R&G coffee products
Café shops
Shopping Centre
Super Market
Market
Convenience Shop
Grocery Shop
12%
25%
15%
48%
Number of times spend on buying R & G coffee products
Once a week
Once every two weeks
Once every three weeks
Once every over threeweeks
33
Research question 3: How much are they willing to spend per purchase?
Hypothesis 4:
Consumers normally spend around 50,000 vnd to 99,000 vnd to purchase R&G coffee/ time
The number of respondents who spend for buying coffee from 50,000- 99,000 VND is 40 %,
whereas 17% of respondent spend over 150,000 VND. Another 26 respondents (22%) said
that they often spend from 100,000 -149,000 VND. With 21.0% of people buying coffee
products spend less than 50,000 VND. Due to the findings stated as above, the hypothesis 4
will be accepted.
Research question 4: Is it more likely that consumers buy R&G products from
their favourite coffee shops?
Hypothesis 5:
Null Hypothesis H0 = There is weak connection between a coffee store and R&G goods of the
same gourmet brand.
Alternative Hypothesis H1= There is strong connection between a coffee store and R&G
goods of the same gourmet brand.
The research team utilizes the ANOVA technique which is computed by SPPS in order to test
the hypothesis as above.
ANOVAb
Model Sum of
Squares df
Mean
Square F Sig.
1 Regression 4,815 1 4,815 ,498 ,478a
Residual 1383,744 148 9,349
Total 1388,559 149
a. Predictors: (Constant), buy R&G coffee product
b. Dependent Variable: Perception of the buying at same gourmet brand
21%
40%
22%
17%
The amount of money spend per purchase
Less than 50.000 VND
50.000 - 99.000 vnd
100.000 - 149.000 VND
More tha n 150.000 VND
34
ANOVAb
Model Sum of
Squares df
Mean
Square F Sig.
1 Regression 4,815 1 4,815 ,498 ,478a
Residual 1383,744 148 9,349
Total 1388,559 149
a. Predictors: (Constant), buy R&G coffee product
Coefficients
Model
Unstandardized Coefficients
Standardized
Coefficients
t Sig. B Std. Error Beta
1 (Constant) 27,125 1,487 22,158 ,000
Buy R&G coffee
product
,244 ,330 ,067 ,799 ,489
a. Dependent Variable: Perception of the buying at same gourmet brand
As shown on the table, the confidential level is 95% meaning that the ANOVA analysis is
going to be compared with α=0.05. Our hypothesis is only accepted if the significant level is
higher than .05; otherwise, the alternative hypothesis will be accepted. In this particular
situation, our null hypothesis is rejected because the significant level is .478 which is
extremely bigger than α=0.05. In another word, the alternative hypothesis H1= There is
strong connection between a coffee store and R&G goods of the same gourmet brand is
accepted.
Research question 5: Who is the purchaser and who is the end user?
Hypothesis 6:
Null Hypothesis H0 = There is a significant relationship between purchasers of R&G
coffee and the end-users.
Alternative Hypothesis H1= There is no a significant relationship between purchasers of
R & G coffee and the end-users.
Model Sum of Squares df Mean Square F Sig.
1 Regression 54,569 1 54,569 5,999 ,015a
Residual 1346,264 148 9,996
Total 1400,833 149
SPSS technique is used to test. In the Anova table:
If the significant number produced is less than 0.05, H0 will be accepted.
If the significant number is greater than 0.05, H1 will be accepted.
35
According to table above, the significant number is 0.015 less than 0.05. Based on the rule of
acceptance or reject of one –way test Anova, the null hypothesis H0 is accepted. This means
that there is a significant relationship between the purchases of R & G coffee and the end
users.
Last but not least, the survey respondents were also encouraged to recommend new strategies
and giving feedbacks for the current roast & ground coffee product line by indicating their
concerns into the provided textbox. Amongst the numerous constructive feedbacks and
valuable, implementing more promotion strategies, marketing campaigns and improving
packaging designs are most recommended. Higlands is suggested to come out with effective
marketing strategies along with attractive promotions in order to retain current customers and
obtain the prospective ones. The packaging of R&G was criticized by several persons as the
coffee would not be able to remain its aromatics once the coffee pouch is opened.
Question
Similarities Differences Discussion
Question 1: How do you
describe a premium
coffee brand?
Premium coffee brand needs to have a
best combination of the blend, the
bean, the roast and the final taste. It is
these qualities that make the difference
between commercial coffee brand and
premium gourmet coffee brands. The
product starts with only the finest
beans, custom roasted to a perfect
medium-intensity. It is made from
uniquely flavored beans that are
processed with special care.
Comment #1: Quality and taste of
coffee products determine the value of
brand, premium or not.
Comment #2: Beside the best quality
product, the premium is enhanced by
brand credibility.
Comment #3: A factor that makes
them so special is the exclusivity. The
price of gourmet coffee brands is
therefore not merely decided by its
quality, but by how it is made and
where it comes from.
Each interviewee has their
individual opinion about this
question. However, in general,
they think that a premium coffee
brand is defined as which has
value of brand, high quality,
expensive price, mordent
technology for producing
process, selecting of the best
coffee bean, imported coffee
bean from other countries.
Question 2: What are
your favorite coffee
brands? Are you willing
to experiment with
different brands and
flavors? And why?
Most of them love Vinacafé due to the
brand credibility of selecting the finest
and freshest coffee bean and its
authenticity Vietnamese coffee.
Moreover it has many flavors. The
second most favorable coffee brands
are TrungNguyen because it is strong
coffee brand with traditional tastes
which suitable for Vietnamese. They
are willing to experience other brands
and routinized purchase that brands as
long as they perceive they obtain
something more value of the brand.
Comment #1: A few participants are
loyal to a certain brands.
Most of interviewees choose
Vinacafé as their favorite coffee
brand. Besides, they are willing
to try a new one and switch to
other coffee brands to have more
experience if they have better
quality.
II. QUANLITATIVE RESEARCH
This qualitative research in form of focus group discussion is conducted with 6 respondents.
37
Question 3: How do you
describe an ideal cup of
coffee?
All participants agree that a well-
balance cup of coffees is the most
desirable. That no one particular flavor
dimension is dominant -- acidity,
body, flavor notes. Full of body,
perfectly balanced, and wonderfully
smooth makes it perfect for any
occasion, any time of day.
Decadent, intense flavors create a truly
indulgent taste experience.
Comment: Some people say that an
ideal cup of coffee which have high
quality coffee bean.
The interviewees agree that an
ideal cup of coffee is which has
strong body, good smell, perfect
balanced between taste and
flavor, high quality coffee bean.
Question 4: Where do
you usually have coffee?
Why?
Almost interviewees answer that they
would like to drink coffee at home
with family members because they
feel quite comfortable. Other people
like to drink coffee at coffee shop with
their friend to chat
Comment: Besides that, an
interviewee usually drinks coffee at
office before working.
Overall, interviewees often drink
coffee at home and at coffee.
Question 5: Some coffee
drinkers perceive coffee to
be a morning drink to
get the day started. What
is your thought on this?
All people strongly agree that they are
likely to drink coffee in the morning to
get the day started. They thought that
it can help them refresh their mind
before starting a new day to work.
Moreover it also brings to them more
energy.
Almost people respond that they
usually drink coffee in the
morning at home or coffee shop.
It seems to be their habit when
starting a new day.
Question 6: Do you prefer
instant coffee or R&G
coffee products? Which
would you choose?
Some people think that instant coffee
does not have good taste while R & G
coffee bring the authentic taste and
aroma like Vinacafé.
Comment #1: There is only one person
chooses instant coffee because of
convenience and cheap price.
In general, the interviewees
prefer R & G coffee product to
instant coffee even though it
requires longer time. In
additional, it also has different
taste with instant coffee. It has
more authentic taste and aroma
than instant coffee.
38
Question 7: What are the
criteria that make you to
decide to buy a
particular R&G product over other alternatives?
Why?
Many people think that strong brand
without scandal can make them feel
trust. They gave an example about a
scandal of Highland coffee which have
mouse in its products and print more
day for expiry of products. This
scandal makes them scare when
thinking about Highland coffee‟s
product. To many interviewees, they
do not care too much about the price.
They are willing to pay high price for
high quality product.
Comment #1: The respondents will
buy if it has good and particular taste.
Comment #2: A factor makes them
buy R & G product is that a coffee can
have some standard to retain aroma.
Comment #3: Nice designed
packaging
Comment #4: Size is also one of the
important criteria to decide to buy R &
G product. Because some product
have small size. It is not convenience
for people because they do not often
go to supermarket.
The interviewees answer that
trust brand/strong brand can
bring to them belief when
deciding to buy o particular R &
G product. They mentioned
about Highland coffee scandal
which nearly make them
dissatisfied and feel scared.
Moreover, having wonderful
taste, nice designed packaging
and big size also are factor make
them to decide to buy product.
They gave recommendation
about bigger size for R & G
product. Because they do not
have time for going to
supermarket frequently.
Question 8: How do you
perceive Highland coffee
as a premium coffee
brand?
The respondents think that Highland
coffee is opened by David Thai who
also is owner of Hard Rock coffee.
Highland coffee has more than 100
coffee shops. Furthermore, its product
has expensive price and some type of
coffee have nice taste.
Comment #1: An interviewee thinks
that when the first time, she hears
about Highland, she thinks that it is a
foreign coffee brand.
Comment #2: Another interviewee say
that Vietnam coffee brand create
unbelief for her about the quality.
Many interviewees responded
that Highland coffee is opened
by talent owner. Besides that the
price of product is quite
expensive. However, some
people do not believe that
Highland coffee as a premium
coffee.
Question 9: Do you have
a brand in your mind
before you usually shop
for R&G coffee? If yes,
which one and why?
Lots people do not think exactly the
coffee brand before go shopping. They
think that in the supermarket, it has
too many competitive coffee brands.
They seem to have many choices.
Comment #: 1Some people are loyal
customer of their favorite coffee
brand. Therefore they do not spend too
much time for thinking about brand
before they buy. They just go to
supermarket and buy their favorite
coffee brand.
Overall, not many people think
about the coffee brand before go
shopping.
CHAPTER 7
CONCLUSION, RECOMMENDATION &
LIMITATION
40
I. CONCLUSION
In the timely manner, the extensive research was carried out successfully and generated
worthwhile findings. Moreover, the work attempts to propose a diversified yet feasible
solution with the aims to resolve marketing problems Highlands Coffee have been dealing
with across all these years, re-position brand image perceived in the consumer mind and
enhance competitive advantages to confront against key players like VinaCafe and
TrungNguyen. The data collected reflect major changes in Vietnam consumers‟ tastes,
purchase criteria, usage rates, consumption patterns, and many other attributes. For instance,
it appears that nowadays the rising population of the young-aged with hip and hop
characteristic, as well as the creation of a large pools of coffee competitors, brand-switching
rate in R&G coffee market seem higher than ever. These results reinforce the facts that it is so
important for Highlands Coffee to have more effective and efficient marketing programs to
differentiate the brand apart from other alternatives, attract new potential segments and retain
those who have beloved Highlands products. We strongly believe that with the willingness to
achieve higher results and well-managed implementation of the proposed integration
marketing, Highlands Coffee will eventually gain back the trust in the public and definitely
obtain a niche position in Vietnam R&G market in the near future.
II. RECOMMENDATION
It is proven that most coffee consumers are willing to spend money for a premium coffee
products with an enticing packaging, in which upholds and maintains a unique aroma and
incomparable flavours. Based on the above findings and discussion, there is a clear gap
between what majority of consumers demand and what value Highlands products intents to
bring. We proposed a plan of realistic and applicable strategies for Highlands based on
customer determinant attributes and purchase behaviours to match the market needs, enhance
brand values and clearly position Highlands Coffee in R&G intense competition. Particularly,
celebrity endorsement, social interaction activities, highly functional new packaging, and
trade marketing all compliment and compromise each other, thus generating a powerful
integration marketing mix to attain the ultimate objectives of Highlands.
Positioning Statement
41
“Highlands Coffee roast & ground is the leading brand in Vietnamese premium coffee
market; fully packed of deep, rich and bold flavors, extraordinary taste, and incomparable
aroma until the last drop.”
Marketing Messages
“Highlands Coffee – Big decisions can’t wait”
Striking with a strong statement at the first impression, the message aims to trigger cognitive
thoughts inside consumers mind and strive directly at what the market cries for. Highlands
Coffee sets the pace for life of those who are young, energetic and need to make tactical calls
every day. The product restores mental alertness, increase flow of thoughts and increase work
productivity, leading to unexpected but brilliant creativity and lucid decisions. Additionally,
implication behind the word “Big” also directs at the new bigger-size package that we will
discuss below. After all, this emotional message distinguishes Highlands Coffee from other
competitors and clearly defined the benefits of the brand‟s products to the target customers.
1. PR strategy to rebuild trust
Many businesses have been struggling the loss of credibility in customers‟ perspectives and
acted quickly yet appropriately to overcome the damage (Pitta & Katsanis 2005). However,
Highlands Coffee haven‟t taken any actions seriously upon the scandals it has been through,
creating uncertainty and stereotype among the public against the brand all these years.
So what is the magic to save Highlands Coffee from being mired in the muck and rebuild its
image again? There isn‟t one. Rebuilding a reputation for a brand takes time and efforts. But
it is possible if we have a long-term effective promotional mix strategy to spread the positive
terms about the brand and increase favourable publicity (Fitzgerald 2003).
Celebrity endorsement is capable to re-establish brand credibility and build up a sense of trust
in the target audiences (Bettman 2009). It also helps to attract potential consumers, reinforce
other marketing activities, and increase media coverage. We recommend Ngo Thanh Van
and Johnny Tri Nguyen to appear as the key visuals for all of the marketing tools and events
Highlands Coffee engages in. Undoubtedly, the strategy is high in execution cost;
nevertheless, this is the right time to utilize such a powerful tool to breathe a new life into
Highlands Coffee brand.
42
On the other hands, the brands should partner with well-known non-profit organizations,
namely Operation Smile, SOS Children‟s Villages… and involves in different activities like
charity work, raising funds, conducting social-welfare programs (for example dedicating a
percentage amount of one month‟s product sales to orphanage houses, so the children could
celebrate a warm Lunar New Year like others).
2. Refresh with innovative package
Our target market, due to the change in demographic and behaviour attributes, nowadays
demands a R&G product from a reputable brand that has the best taste and is stored in the
best looking and functional display. Thus, a change in Highlands R&G‟s package and design
is necessary. Highlands Coffee has introduced vacuum-sealed coffee pouches with valve
application since the first day of entering the market. This type of bags is the standard for any
coffee packaging and provide ultimate barrier against oxygen, moisture and simplified
packaging process. However, the problem usually happens during post-purchase, after several
times consuming and storing the products improperly. Vietnamese consumers usually use
rubber bands to tight the packages, in which still allows moisture from external environment
to steadily damage the inner products. Besides that, the pouches cannot stand on themselves
since they are solely made from foiled, that explains why our products couldn‟t display
beautifully on countertops of any households‟ kitchens.
Although every R&G players focus on supplying the finest coffee in the world, they usually
forget to pay attention to how consumers store their products. Although, pouches may be
convenient and low in price, they are not capable to remain the entire sensational aroma that
coffee upholds and, unfortunately, diminishing quality over time (Hoenicke & Gatermann
2010). The best tool to make the most of consumer coffee experience matching the
excellence of the world class coffee that Highlands humbly provide is to store the products
inside an airtight jar (Labuza, Cardelli & Shimono 2009). Airtight canister jar can eliminate
harmful effects such as air, moisture, excessive heat and direct sunlight that R&G products
might expose to all the time. Made of borosilicate glass and featured a stainless steel lid with
removable silicone gasket, this stylist clear coffee is ensured an air-tight seal and product
freshness. Moreover, it is designed to spell classy and elegance and able to hold several
pounds of coffee – most preferable 1 kilogram. As proven, life is too busy to allow the target
market to visit their favourite shopping sites frequently, thus a bigger size match nowadays
fast beat of life and allows a convenient option of refilling the emptied canister for the next
43
purchase of Highlands Coffee pouches. Bigger size, 1 kilogram, gives an edge to Highlands
in competing against other big fish in the market by fulfilling the insight of modern
consumers.
In short, with the same existing high-quality Highlands R&G coffee, line extension is used by
introducing new size and new packaging material. Canister jar is definitely an instant eye
catcher and ensure an authentic and exceptional taste of Highlands Coffee. Additionally, it
refreshes the brand image and meets the needs of showing off premium brands that nowadays
young coffee enthusiasts possess.
Pricing Strategy
It depends on the production, marketing and other costs associated to determine an exact
price for this new package product. But still, we recommend that price of a 1kg canister of
Highlands Coffee Gourmet Blend should be charged in the range of 230-240 VND, since a
200g pouch of the same flavor is sold to end-consumers at the price of 50,000 VND. It is
quite expensive, but then it compromises with the quality and value the products possess. One
sip will make consumers realize that the price is worth it.
3. Diversified trade marketing
To restate the previous parts, coffee consumers are likely to make purchase decision during
evaluation process rather being aware of what they want to purchase. We can‟t stress enough
the importance of trade marketing in this industry that comprises of many alternatives. With
limited brand awareness, consumers will not purchase Highlands Coffee‟s premium products
unless they realize there are obvious differences in value and satisfaction they obtain
compared to those of other key players. Side by side with the PR campaigns we proposed,
sampling and booth activations are the keys of success. These two methods with effective
implementation are the easiest way to generate awareness, product trial, and brand switching.
Firstly, sampling allows potential consumers opportunities to experience Highlands high-
quality coffee, re-evaluate their negative stereotype towards the brand, driving immediate
sales volumes at the selling points. In frequency manner, Highlands should conduct a two-
month sampling programs during peak hours of the trading sites to attract public attention and
promote the new-package products. A team of 3 to 4 promotion girls will lead the activities,
44
invite customers for free tastes, and educate them the benefits of the products. Eventually,
repetition purchase and brand loyalty will be built.
Secondly, standees, hanging mobile, and mock-ups will be utilized to inform the availability
of Highlands R&G products, deliver the marketing messages, and eventually set the brand
apart from the large pools of competitors. Not only those tools will be displayed in every
supermarket products shelves, they will also be visible among Highlands café chains as table
tops, posters and brochures, taking advantage of the strong relationship between café and
coffee consumption.
III. LIMITATION
One of the biggest errors that we met when doing this research is the unconscious
misinterpretation which is concerning about the respondents‟ problems that they don‟t really
understand some of the questions and tend to answers incorrectly. For instance, there is a
question that required respondents to rank the given brands form 1 to 5, 1 for the weakest and
5 for the strongest; many of them made the same mistake that they did not ranked but only
estimated each brand. In addition, there are two main problems, which are acquiescence bias
and extremely bias. Thus, some of the respondents answer quickly the questions by only say
yes and some of them answers no for all the questions without thinking.
The second problem that found out is deliberate falsification that is the troubles that
existed when the respondents are willing to answers the survey but they intend to give the
wrong or untrue answers. For example, when we ask them about their occupation, they never
answer that they are unemployed instead of students or employees. Moreover, in the income
questions, the respondents also gave the untrue answers; they may answer higher 5 million,
only 2% of the respondents in the range of fewer than 5 million.
The third problem is the targeted population; we first targeted on the high and middle
class including employees, employers and in general is the business woman or business man.
However, when we actually collected the survey and the result that we have found out is 59
in 100% respondents are students.
The final problem, which is the shortage of time, we only have 1 week to design a
complete survey and one week to get them back. After that we have to analysis and
45
emphasize all of the answers. If there were more time, we would like to spread out the
number of respondents for the accurateness.
46
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Australia.
Bettman, J 2009, „Celebrity Endorsement, Brand Meaning, and Self-Brand Connections‟,
Connecting with Celebrities,viewed 25 December 2011.
CaféF 2011, “Tieu thu ca phe tai Vietnam tang truong nhanh nhatthe gioi”, Gia Ca Phe,
viewed 2 December 2011, <http://giacaphe.com/13063/tieu-thu-ca-phe-tai-viet-nam-tang-
truong-nhanh-nhat-the-gioi/>.
Fitzgerald, N 2003, „Rebuilding Trust in Business‟, CSR, viewed 28 December 2011.
Gray, PS, Williamson, JB, Karp, DA & Dalphin, JR 2007, The Research Imagination: An
Introduction to Qualitative and Quantitative Methods, Cambridge University Press, New
York, USA.
Highlands Coffee 2007, Highlands Coffee, viewed by 6 Decemeber, 2011,
<http://www.Highlandsscoffee.com.vn/vn/index.html>.
Hoenicke, K & Gatermann, R 2010, „Studies on the Stability of Arcylamind in Food During
Storage‟, Jounral of AOAC International, vol. 88, no. 1, 2005, viewed 28 December 2011.
Labuza, T, Cardelli, C & Shimono, E 2009, „Physical Chemistry of Roasted and Ground
Coffee: Shelf life Improvement‟, Journal of DOF, viewed 28 December 2011.
Morgan, DL 1997, Focus group as qualitative research, 2nd
edn, Sage Publication, California,
USA.
Nhu, H 2008, “Highlands khong hieu vi sao co banh trong chuot”, tuoitre, viwed 11
December 2011, http://tuoitre.vn/Chinh-tri-Xa-hoi/282525/Highlands-Coffee-khong-hieu-vi-
sao-trong-banh-co-chuot.html
Pitta, D & Katsanis, L 2005, „Understanding brand equity for successful brand extension‟,
Journal of Consumer Marketing, vol. 12, no. 4, viewed 25 December 2011.
47
Reuters 2008, “Vietnam's coffee consumption to accelerate”, Asean, viewed 7 December
2011,
<http://www.coffeeasean.org/details.asp?Object=23&news_ID=221256281&ID_Con=2>.
Tran, Hao 2010, “Thi truong ca phe Viet nam va co hoi cho doanh nghiep trong nuoc”, IAM,
viewed 4 Decemeber 2011, <http://www.iamvn.com/vn/default.aspx?news_id=201>.
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48
APENDICES
APPENDIX 1:
HIGHLANDS COFFEE KHÔNG HIỂU VÌ SAO TRONG BÁNH CÓ
CHUỘT
TTO - Những ngày qua, cư dân
mạng xôn xao truyền cho nhau
thông tin về một sản phẩm của
công ty Việt Thái có "kèm" một
chú chuột nhắt “ẩn mình”. Và cho
đến chiều tối 9-10 thì thông tin trên
bùng phát dữ dội trong cộng đồng
mạng.
Thông tin trong thế giới mạng mô tả
sự việc xảy ra vào chiều chủ nhật (5-
10) khi một khách hàng đang dùng
bánh kem tại quán cà phê Highlands
the Manor (91 Nguyễn Hữu Cảnh,
P.22, Q.Bình Thạnh, TP.HCM) - trụ
sở chính của Highlands Coffee, thuộc
tập đoàn Việt Thái International - thì
phát hiện có một con chuột con nằm
ngay trong bánh. Bà đã ngất xỉu tại
chỗ.
Sau khi vụ việc xảy ra, các nhân viên
của Highlands Coffee gọi điện cho báo
cho cấp quản lý cao hơn để giải quyết vấn đề.
Chiều ngày 9-10, bà Nguyễn Ngọc Hân – Giám đốc Marketing của Công ty TNHH Việt Thái
Quốc Tế cho biết: sau khi nhận được phản ánh của khách hàng về vụ việc này, Ban Giám đốc
Công ty đã ghi nhận vụ việc một cách hết sức nghiêm túc nhằm điều tra làm rõ nguyên nhân.
Trả lời TTO, sáng 10-10, ông David P.Thái, Tổng giám đốc - người sáng lập Công ty cổ phần
Việt Thái Quốc Tế cho rằng sự việc xảy ra rất đáng tiếc vì HiglandsCoffee là một thương
hiệu lớn trên thị trường bán lẻ cà phê và luôn có quy trình chặt chẽ đối với một mẻ bánh.
Hiện công ty đang thành lập một ban thanh tra nội bộ để tìm hiểu vì sao một quy trình chặt
chẽ, ngay cả con kiến cũng không lọt qua, mà lại xảy ra sự cố đáng tiếc như vậy và sẽ sớm
công bố trong thời gian tới.
Hệ thống HiglandsCoffee đã hoạt động tại Việt Nam từ 6 năm nay.
[…]
49
Translation:
These days, many Vietnamese online community transmitted information about a product
of Vietnam Thai companies "with" one focus mice "hiding". The incident was happened
on Sunday afternoon when a customer was ussing coffee cake at the Highlands the Manor
(91 Nguyen Huu Canh, P.22, District, HCMC) - the head office of
HiglandsCoffee, Vietnamese Thai International group - the detection of a mouse inside the
cake. She fainted on the spot.
After the incident, the staff of Highlands Coffee phoned to tell higher management level to
solve problems.
On the afternoon of October 9th
, Nguyen Ngoc Han - Director of Marketing Vietnam Co.,
Ltd.Thai International said that after receiving the customer's reflection on this incident, the
Director of the Company has recorded a case seriously and going to investigate the reasons
immediately.
Reproduced from http://tuoitre.vn/Chinh-tri-Xa-hoi/282525/Highlands-Coffee-khong-hieu-vi-
sao-trong-banh-co-chuot.html
50
APPENDIX 2:
Cà phê Higlands"bắn lại hạn sử dụng” 31 nghìn sản phẩm
Ngày 11-5-2011, thông tin từ Chi cục quản lý thị trường (QLTT) TP Hà Nội cho biết, đơn vị
này vừa phát hiện và tạm giữ 31 nghìn sản phẩm cà phê đóng lon của hãng cà phê nổi tiếng
HiglandsCoffee có dấu hiệu “bắn” lại hạn sử dụng.
Trước đó, ngày 10-5-2011, một đội công tác của Chi cục QLTT TP Hà Nội phát hiện tại kho
hàng của Tập đoàn Việt Thái, nằm tại xã Tựu Liệt, huyện Thanh Trì, Hà Nội, 31 nghìn sản
phẩm cà phê đóng lon được “bắn” lại hạn sử dụng. Tập đoàn Việt Thái là doanh nghiệp
chuyên sản xuất và kinh doanh cà phê, nhãn hàng HighlandssCoffee. Một cán bộ phòng
nghiệp vụ Chi cục QLTT TP Hà Nội cho biết: Bên ngoài các
lon cà phê này, ngày, tháng sản xuất và hạn sử dụng (in lần
đầu) được tẩy xoá nhưng vẫn còn mờ, chưa sạch, bên cạnh đó
là ngày tháng sản xuất và hạn sử dụng mới. Và bên
HiglandsCoffee cũng đã thừa nhận việc “bắn” lại hạn sử dụng
này. Theo họ (người phía HiglandsCoffee – PV) thì do chất
lượng của các sản phẩm này vẫn còn sử dụng tốt nên họ đã
gia hạn cho tuổi đời của các sản phẩm này(!?). Việc “bắn” lại
hạn sử dụng này được thực hiện ở nhà máy trong miền Nam,
sau đó hàng được vận chuyển ra Bắc để tiêu thụ.
Translation:
HIGLANDSCOFFEE “SHOOTS” THE EXPIRATION DATE FOR 31 THOUSAND
PRODUCTS
On 11-5-2011, the information from market department management (Market Management)
of Hanoi, discovered the unit coffee and temporarily seized 31 thousand canned coffee
products coffee's famous HiglandsCoffee signs of "firing" the expiration date.
Previously, on 10-5-2011, a work team of the Hanoi Market Management Department found
out that in the warehouse of Viet Thai Group, located in the commune Tuu Liet, Thanh Tri
district, Hanoi, 31 thousand coffee products Canned coffee is "fired" the expiration date.
Vietnam Thai Group is an enterprise specializing in manufacturing and trading of coffee,
51
HiglandsCoffee brand.
An official division of Hanoi Market Management Department said that outside the coffee
cans, date of manufacture and expiry (in the first time) to be erased but still fuzzy, not clear,
besides that is the date of production and the new expiry date. And the HiglandsCoffee has
also admitted to "shoot" the use of this term. According to them (who the HiglandsCoffee -
PV) is the quality of the product is still good, so their use has extended the lifespan of these
products (!?). The "shoot" the term used is made here in the South, and then shipped to the
North for sale.
52
APPENDIX 3
SUVERY’S QUESTIONS
Do you drink coffee?
o Yes Go to Section 1 and Section 2
o No Thanks for spending time with us
Section 1: Contact Information
Q1
Gender SA
Male 1
Female 2
Q2
How old are you?
SA
Less than 18 1
18-25 2
26-35 3
36-45 4
Above 45 5
Q3
Level of your education
SA
Primary Education 1
High school 2
Intermediate Education 3
University 4
Q4
Your occupation
SA
Student 1
Employee 2
Employer (Self employed) 3
House wife/husband 4
Unemployed 5
Retired 6
Q5
How many members in your
family?
SA
0-1 1
2-4 2
5-6 3
More than 6 4
Q6
Please indicate your monthly
income range
SA
Under 5 million VND 1
5,000,000 – 9,999,999 VND 2
10,000,000 – 14,999,999 VND 3
15,000,000- 19,999,999 VND 4
Above 20 mil VND 5
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Section 2: About drinking coffee
Q7 You usually drink coffee in: SA
Café 1
Home 2
Office 3
Others 4
Q8 On average, how many cups of
coffee do you consume daily?
SA
1 cup a day 1
2 cups a day 2
3 cups a day 3
More than 3 cups a day 4
Q9
Who often buys coffee in your
family?
SA
Myself 1
My mother/father 2
My Brother/sister 3
My wife/husband 4
Son/daughter 5
Maid 6
Q10 Who decides the coffee brand? SA
Myself 1
My mother/father 2
My Brother/sister 3
My wife/husband 4
Son/daughter 5
Maid 6
Q11 How often do you buy coffee? SA
Once a week 1
Once every 2 weeks 2
Once every 3 weeks 3
Once over 3 weeks 4
Q13 Where do you normally buy
coffee?
SA
Super markets 1
Coffee shops 2
Markets 3
Family stores 4
Convenience stores 5
Q14 How much do you spend per
purchase?
SA
Less than 50,000 VND 1
51,000 – 100,000 VND 2
110,000-150,000VND 3
More than 150,000 VND 4
54
Q16
How important is each of the following to you when purchasing/ordering coffee? Please indicate your answer
from least unimportant to most important ( Tick options in the table below)
Least
Unimportant
Unimportant Neutral Important Most
important
Price
o o o o o
Taste
o o o o o
Brand
o o o o o
Packaging
o o o o o
Q17
What is the factor that influences
your purchase decision the most?
Choose one only
SA
Price 1
Taste 2
Package 3
Brand 4
Q18
Have you ever heard about
Higlandscoffee?
Yes Go to section 3
No Thanks for spending time with us
Section 3: About HiglandsCoffee
Q19
In order of preference, please
rank these brands from 1-7
Highlandss
Trung Nguyen
Vinacafe
Nestle
The Coffee Bean & Tea Leaf
Q20
In your opinion, what are the
differences of Highlands coffee
compared with other coffee
brands? Choose one only
SA
Strong taste and quality 1
Available everywhere 2
Appealing packaging 3
Favorable brand 4
Others______________ 5
Roast and Ground Coffee
Coffee beans are harvested from the coffee plantations, and then through the process of roasting and grinding into
powder, coffee powder is packed to a small package before distributing to the supermarket and other stores.
Q21
Have you ever bought/drunk
Highlands R&G coffee?
Yes Go to section 4
No Thanks for spending time with us
Section 4: About Highlands R&G coffee
SA
55
Q22 How did you find out about
Highlands R&G coffee?
Friends-Families 1
Internet 2
Newspapers & Magazines 3
Display at point of coffee shops 4
Advertising 5
Display at point of sales 6
Q23
What do you think about
Highlands R&G coffee?
SA
Good quality 1
Unique taste with Vietnamese people 2
Suitable price 3
Represent the status 4
Q24
Have you ever seen any promotion
or advertising of Highlands coffee?
o Yes
o No
If YES, please specific your answer:
Q25
If you are allowed to give advice
for R&G product‟s improvement,
what would you suggest?
_______________________________________________________
____________________________________________________________
__________________________________________________
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APPENDIX 4:
FOCUS GROUP DISCUSSION’S TRANSCRIPT
Moderator: Warmly welcome to the focus group discussion of Highlandss‟s coffee, so today
is 31/12/2011 and also is the last day of the year, we would like to say Happy New Year to
everyone.
Moderator: Ok, Happy New Year. We would like to say thank you to all of you for spending
time with us to participate in the focus group discussion so that we could understand more
about your perception and buyer behaviors toward the R&G coffee product of Higlandsand
before we start with the discussion, may I have the brief introduction of each respondent so
can we start with the first person, please introduce yourself in full name as well as your age
and occupation.
Tran Thanh Nam: Hello everyone, My name is Tran Thanh Nam, right now I am working in
a bakery and my age is 26
Bui Minh Hieu: Hello everyone. My name is Bui Minh Hieu, I‟m 27 years old and I am
working for a insurance company.
Nguyen Thi Moc Mien: I cannot speak English. I am 30 years old and am a housewife.
Moderator: Because the third respondent cannot speak English so I would like to take turn to
translate her answer into English and her full name is Nguyen Thi Mong Mien, 30 years old,
currently she is a housewife. Thank you, Mrs. Mien.
Pham Kieu Nga: My name is Pham Kieu Nga, 29 years old. I am working as a cashier for
Minh Tuan Campany.
Moderator: Thank you Ms. Nga. And how about the guy who is standing at the corner?
Le Minh Ky: Hi, everyone. My name is Ky, Le Minh Ky, 27 years old. I work as a policeman
at the District 1 police counter.
Pham Thanh Thao: hello everyone, my name is Pham Thanh Thao. I am a student of The
Open University, stream banking finance, nice to meet you.
Moderator: Ok, should we start with the first question? And the first question for the
discussion is how do you describe a premium coffee brand according to your perception and
experience. You may start now.
Tran Thanh Nam: May I start first? I drink a lot of coffee and experience a lot of coffee
brands so my definition about a premium coffee brand is quite complicated. It can rise up the
brand, the position at the market, the price, the quality of the product making up the premium
57
for that brand. So I think a premium coffee brand can be determined, the most determinant
attribute is the price. That brand must be expensive
Moderator: According to his experience and perception, a coffee product that has a high
price equal to that product is a premium brand. Is that right?
Bui Minh Hieu: I think a premium brand is a brand that has its brand name and coffee shops
extensively appear everywhere throughout the cities and countries. So that is my opinion.
Moderator: So you mean a wide distribution equals to a premium brand?
Bui Minh Hieu: yes
Moderator: How about Mrs. Mien? Because she cannot understand the question so I am
going to translate the question.
Mrs. Mien: I think high price and high quality.
Ms. Nga: In my opinion, a premium brand has to be modern technology and consistent
producing process from selecting the fresh seed of the coffee to produce a very delicious cup
of coffee.
Mr. Nam: So your point is selection of the best determine the premium of that brand. So must
that coffee bean come from local or foreign?
Ms. Nga: I think is in local. Because, you know, transportation, shipping from other countries
cost a lot of money.
Moderator: So Ms. Nga seems having a good understanding of the coffee industry, right?
You may have so much experience drinking coffee. Well, can I have something from Mr.
Ky?
Mr. Ky: I think a good coffee product means good packaging because I need to buy coffee to
give it to my boss, so good design and beautiful can show my respect to my boss.
Moderator: Thank you, Ky. That is very interesting answer. He needs a coffee product with
a good design so he can give the coffee to his boss with the high respect from the boss, and
how about Ms. Thao?
Ms. Thao: I agree to all of you and I want to support for Nga‟s opinion. I think a premium
coffee brand that have the bean come from Brazil, one of the top ten country import in the
world.
Ms. Nga: I want to add more. The other important factor is quality of the coffee bean, you
know, to create a special taste you have to consider where to import or just using the local
bean.
Moderator: You guy have any other comment or enough?
58
Mr. Nam: I think I care the best ingredients, high quality technology, well manage process of
producing coffee, I think Ms. Nga makes a good point of it. I want to add another thing, the
brand positioning in the market can also determine the premium, like if the consumer
perceive that brand is credible and trustable, they can value that product very high.
Moderator: I really appreciate your ideas. To sum up, I would like to have a quick look. All
of you agree that modern technology with the high quality coffee bean and flavor should be
strong and the price must be expensive because it reflects the quality of the coffee and we
also have certain response that people also care about the packaging. Before move to the
second question, I would like each of you name your favorite coffee brand.
Mr. Hieu: Trung Nguyen because I spend a long time with it from I start drinking coffee. The
taste is quite good.
Ms. Mien: Vinacafe, do not want to change because it has a special taste.
Ms. Nga: Vinacafe, willingly to change because want to try something new.
Mr. Nam: Vinacafe, stick to one brand, it has different flavors. Nothing beat Vinacafe
because Vinacafe „s taste is the best.
Mr. Ky: not addict to one brand, young and want to try something new.
Mr. Thao: Trung Nguyen, strong brand in Vietnam, suitable taste to Vietnamese, willing to
try if it has a better taste.
Moderator: Mr. Nam and Ms. Nga are not willing to change. The rest is willing to change.
Now, the third question is how do you describe an ideal cup of coffee?
Mr. Hieu: contain elements: strong taste, smooth state, strong body of the coffee.
Mr. Nam: romantic, smell taste good, flavor intend.
Ms. Thao: taste, flavor, nice smooth to attract.
Ms. Nga: flavor, ingredient.
Moderator: If no further opinion, we will move to fourth question that is where do you
usually drink coffee?
Mrs. Mien: drink at home with her husband.
Ms. Nga: coffee shop and home.
Ms. Thao: coffe shop.
Mr. Ky: at home and office, keep concentrate at work, drink with father.
Mr. Nam: at home, morning and evening, to focus on working.
Moderator: Some coffee drinkers perceive coffee to be a morning drink to get the day
started. What is your thought on this?
Mrs. Mien: comfortable, smart, work better.
59
Ms. Nga: hobbit, more energy for a long day working.
Mr. Nam: getting busy, do not have time to seat down to relax, solve complex in my head,
help to make the wise decision.
Mr. Ky: smart and wise to face with challenge.
Moderator: Do you prefer instant coffee or R&G coffee products? Which would you
choose?
Ms. Nga: R&G, has different taste to instant coffee.
Mr. Nam: Instant coffee is convenience, cheap, taste differ to Vietnamese coffee. Prefer
R&G even it takes a longer time.
Mr. Ky: As I said before, I love Vinacafe, has 2 types. Do not like instant because it is not
like real, prefer R&G reserve authentic taste, most important I drink coffee because I addict
to the aroma taste, not because for fun.
Moderator: Thanks. It is very interesting that most of them prefer to R&G coffee, even
though our life is getting busier and it is not easy to make R&G coffee. Take 5 minutes break.
Moderator: Welcome back, next question is what are the criteria that make you to decide to
buy a particular R&G product over other alternatives? Why?
Mr. Nam: many competitors in super market, most important criteria is brand and package.
Quality important, Vinacafe, Trung Nguyen promise to provide the best taste.
Ms. Thao: High quality coffee. Vinacafe, Trung Nguyen has no scandals.
Ms. Nga: Higlandshas many scandals. Scandals about the mouse, cheating on expire date.
Mr. Nam: Do not want to try Highlandss.
Mr. Ky: stick a new date on the can, do not respect the customer. The size is the most
important because I cannot buy frequently.
Ms. Nga: The taste is not consistent.
Moderator: That is interesting that the question asking the criteria to make the customer
purchase product, but most of you reveal the scandal of Highlandss.
Mr. Nam: mentioning the decreasing quality, I do not choose the coffee bag. After a certain
time, the coffee has no taste anymore. I prefer the coffee can.
Moderator: Thanks, Mr. Nam. The next question is how do you perceive Highlandss‟s
coffee as a premium coffee brands not a coffee shop?
Mr. Nam: Higlandsis popular nowadays. The owner comes back from USA and originally
from Vietnam, David Thai.
Mr. Nga: Because of scandals, I do not want to purchase any products from Highlandss.
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Ms. Mien: I think Higlandsis popular, after joining the discussion group, I afraid of
Highlandss‟s coffee.
Moderator: And now is the last question, I am not going to take your time anymore. Do you
have a brand in your mind before you usually shop for R&G coffee? If yes, which one and
why?
Mr. Nam: I usually do not because every time I go shopping, there are many alternatives. I
look at the package and brand.
Ms. Nga: I do not think about this when shopping. Base on the price and package, I decide
the coffee that I buy.
Mr. Ky: Yeah, before going to super market. I check out what product is in my house. Go to
that and find if there is a new product with a sample, so I will try it.
Moderator: Ok thank you everyone for the great answer and on my hand now is the
incentives for each of us. Please consider these incentives as a special thank from the research
team to everyone. So this is for Mr. Nam, Mr. Hieu. Because we have 3 females, so I think it
would make you very happy when you open it. Thank you again for your time and
enthusiastic. Goodbye.
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Photos taken during the focus group discussion at RMIT Saigon South Campus