GloriaJeans Marketing Plan

THE RMIT INTERNATIONAL UNIVERSITY SAIGON SOUTH CAMPUS MKTG1205: Marketing Principles

Propose to Mr. Pakawat Kietisaksopon

MARKETING PLAN GLORIA JEAN’S COFFEE Group 13 - Team 1 1. 2. 3. 4. 5.

Tran Dan Khanh Nguyen Tran Minh Hung Huynh Thanh Huy Nguyen Pham Xuan Phuc Nguyen Phu Quoc Nam

(s3202038) (s3192968) (s3192957) (s3193986) (s3193337)

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Table of Contents I.

Executive Summary: ....................................................................................................................... 4

II.

Introduction:.................................................................................................................................... 5

III.

Situation Analysis: ...................................................................................................................... 5

A.

Macro Environment: ................................................................................................................... 5 1.

Demographics: ........................................................................................................................ 5

2.

Economics:.............................................................................................................................. 6

3.

Natural Force .......................................................................................................................... 7

4.

Cultural Force ......................................................................................................................... 7

5.

Political Force ......................................................................................................................... 8

6.

Technology: ............................................................................................................................ 8

B.

Micro Environment: .................................................................................................................... 9

IV.

SWOT Analysis: ....................................................................................................................... 10

A.

Strength: .................................................................................................................................... 10

B.

Weaknesses: .............................................................................................................................. 11

C.

Opportunities: ........................................................................................................................... 11

D.

Threats: ..................................................................................................................................... 11

E.

SWOT Matrix: .......................................................................................................................... 12

V.

Product objective: ......................................................................................................................... 12 A.

CORPORATION OBJECTIVES:............................................................................................. 12

B.

MARKETING OBJECTIVES: ................................................................................................. 12

C.

FINANCIAL OBJECTIVES: ................................................................................................... 13

VI.

Market segmentation, targeting and positioning ....................................................................... 13

A.

MARKET SEGMENTATION: ................................................................................................ 13

B.

TARGET MARKETING: ......................................................................................................... 14

C.

POSITIONING: ........................................................................................................................ 15

VII.

Marketing mix strategies:.......................................................................................................... 18

A.

PRODUCT ................................................................................................................................ 18

B.

PRICE: ...................................................................................................................................... 21 1.

Competition Based Pricing: .................................................................................................. 21

2.

Product Line-pricing: ............................................................................................................ 21

3.

Optional product pricing: ...................................................................................................... 22

4.

Product bundle pricing: ......................................................................................................... 22

5.

Geographic pricing: .............................................................................................................. 23

C. ............................................................................................................................................ PLACE: 24 2

D. PROMOTION: .......................................................................................................................... 26 1.

Promotion Mix Strategy ........................................................................................................ 26

2.

Advertising:........................................................................................................................... 26

3.

Sales promotion: ................................................................................................................... 27

4.

Direct marketing: .................................................................................................................. 27

5.

Public Relations: ................................................................................................................... 28

VIII.

Control Program........................................................................................................................ 29

IX.

Control program: ....................................................................................................................... 29

X. XI.

Reference: ..................................................................................................................................... 30 Appendix:.................................................................................................................................. 30

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I.

Executive Summary:

The marketing plan is used for Gloria Jean’s Coffee from the end of September of 2009 to the end of September of 2010. Gradually, the marketing plan will guide the company to achieve its goals by researched and logical methods. Furthermore, the company desire to create a joyful and passionate working environment and to be an excellent coffee supplier and service provider in Vietnam. As the result, these main points have to be the company main objectives which will lead them to the success. In addition, Gloria Jean’s Coffee also plan to get 15% market share and grow the current sales up to 30% from the end of September of 2009 to the end of September of 2010 Particularly, the marketing plan will evaluate the market’s opportunities, threats through analyzing its strengths and weaknesses and researching the domestic micro and macro environment. Thus, a sufficient understanding of market will guide the company to be a leader of the market. In 4P marketing mix strategy, every single aspect is researched and planned in details to guarantee consistence between marketing plan’s main subjects. In pricing strategy, the company imports all coffee beans from Australia so the staff has to apply variety of pricing strategy to set appropriate and reasonable prices. There are “Cost based pricing”, “Competitor based pricing, “Product line pricing”, “Optional product pricing“, “Product bundle pricing”, “Geographic pricing” which the company uses to get advantage on direct competitors. For distribution channel, Gloria Jean’s Coffee is bought by franchising pro forma, so the company follows vertical distribution channel. Gloria Jean’s is a large brand name in the world, but it has just entered the Vietnamese market since 2007. Therefore, it is necessary to use line extension and brand extension for developing its products and brand awareness. In details, Gloria Jean’s will add fruit juices and cakes to its current menu. In promotion, Gloria Jean’s invests its budget to advertise on magazines, sponsor to public events, sales promotion. Furthermore, the direct marketing method is under progress to launch in the future. Through these promotion strategies, the company desire to be a wellknown coffee brand and a successful foreign company in Vietnam. However, the company has to face numerous of challenges when entering the market. Firstly, it will get barrier of entrance from competitors such as Highlands coffee, Trung Nguyen Coffee, The Coffee Beans. Moreover, high prices, new flavors and tastes will be also an obstacle for the company. Finally, the company’s density of stores will make a boundary of brand awareness for local customers. This marketing plan is going to launch from the end of September of 2009 to the end of September of 2010. The final step of this marketing plan is control program in which some tasks will be run. These activities will reflects the efficiency of the company’s marketing plan through results of sales, revenue, profits and feedback of customers.

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II.

Introduction:

The Gloria Jean’s Coffees is one of the most popular brand names of coffee shops in the world, with more than 750 coffee shops in Australia and 45 countries. The company was established in 1979 in USA and transferred to Jirek International, an Australian company in 1995, and then Gloria Jean’s has become a successful coffee shop in Australia. Moreover, Gloria Jean’s coffee has sold 1.26 billion cups of coffee with more than $3 billion income last year. In Vietnam, the Gloria Jean’s Coffees was franchised by VietLifestyle JSC company in 2007. The first shop was opened in Dong Khoi street where many luxurious stores such as D&G, Louis Vuitton, Gucci…etc have appearances. Now, Gloria Jean’s expands to the third coffee shop which adds the total to four shops in Ho Chi Minh city and for one in Hanoi. After two years, Gloria Jean’s has become a favorite destination of Vietnamese and international coffee fans and numbers of new coffee shops keep increasing rapidly. However, Gloria Jean’s still has to overcome many challenges in such a competitive coffee market in Ho Chi Minh city. For surviving through strong competitions from Trung Nguyen coffee, Highlands coffee or The Coffee Bean, the company has to research the market and do marketing strategies adequately.

III.

Situation Analysis:

A. Macro Environment: 1. Demographics:

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Figure 1.1 According to figure 1.1, the Vietnam population is approximately 83 millions which highly focus from 15-39. This age range is also targeted customer s of Gloria Jean’s coffees. Therefore, Vietnam is a potential market of Gloria Jean’s coffees shops at the moment and in the future. 2. Economics:

Since 2000, Vietnam GDP is increasing rapidly which is reflect in consumers spend also increased. This will offer a high opportunity for our coffee market.

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Vietnam joined WTO in 2006 let more foreign company get into the country. This made Vietnam GDP grew in 2008 was one of the highest in the world. This is expected that people will spent more for their life styles than needs as in the past.

However, inflation rate in vietnam is also high will increase risk that people will cut down expenses as much as possible. 3. Natural Force The weather of the west highland of Vietnam, which is known as “Tay Nguyen, is sunny and dry in most of the year. Furthermore, the geological structure of this region is joined by basalt. Therefore, coffee trees can grow very well with warrantee quality and quantity. For sub ingredient such as milk, Vietnam milk industry is developing fast with high quality product with competitive price to foreign producers such as Holland, New Zealand, Australia…etc. Hence, the company has ability to reduce production cost by using domestic materials. 4. Cultural Force Coffee culture appeared in Vietnam in the colony of France period. At the first time, coffee were only for the French and rich Vietnamese business men. Then, Vietnamese coffee culture developed more by numerous of western style coffee shops such as Brodards, Ciao café…etc were opened in DongKhoi street, a central business street of Saigon. From that time, coffee beans have widely got close to lower classes of Vietnamese society from urban workers to farmers. At the current, coffee is a national beverage which used by a wide range of ages of people, jobs and purposes. 7

5. Political Force Increase business regulation: When customers come to the coffee shop or food shop, their rights need to be made sure that their health are not affected and the food shop as coffee or restaurant are in response to accomplish this goal. In addition, the coffee shop need to have 2 certificate from health department as HACCP and Food Health Certificate. The logo, the style of shop and the menu are registered and no shop can copy to make sure that our coffee shop always serve best quality and safe products by these regulations. Increase emphasis on ethics and socially responsible actions: Every shop have own strategy to get the belief of customers. the company shows the customers the effect of unsafe, unhealthy food. Moreover, we also show the source of materials that we make the coffee for them, introduced the customers how to protect their life by washing hand before eating or drinking and throw the plastic glass into the waste box. All strategies to make us prestigious.

6. Technology:

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In the 21st century, the development of science and technology make the life of people is improved, so the demand of human is increasing everyday, and also demand of enjoying the best quality of food and drink is high day by day. Most of famous coffee shops in Vietnam are imported the coffee from around the world. Carefully sorted and expertly roasted on our premises to bring out their unique flavors, then sealed to ensure the freshest of coffee. After that coffee was passed a roasting process to produce finished coffee.. Furthermore, in order to attract more customers, most of coffee shops create different kinds of mix coffee such as cappuccino. In addition, some of famous coffee brands also produce the coffee packs that provide in the market to serve the consumers. Most of coffee packs are kept in a paper or plastic packs that can warranty in 1 or 2 years.

B.

Micro Environment:

1. Suppliers: The difference between Gloria Jean Coffee and another coffee shop is coffee beans. All of them are imported from Australia. This definitely brought the high quality and unique taste that customer can not enjoy anywhere else. As the results, the Gloria Jean Coffee became famous and high standardized services. However, substitute ingredients are like sugar, fruit juices and milk which are available in the domestic market and passed the quality test of the health care department, the company will choose instead of importing all the ingredients to reduce cost. 2.. Customers Gloria Jean’s main customer markets are people in middle and high class, most of them are generation Y. Actually, generation Y is given money by parents, so can say that generation X paid for that Gloria Jean’s products. Business market: Gloria Jean’s have some products that can make at home such as Premium Beans, Classic Beans and Flavoured Beans, so companies buy a lot of that kind of coffee for their employees and staff. Because of that, companies will save a lot of time in go to a Gloria Jean’s coffee shop. 3.. Competitors: With a major of vietnam populaion, Gloria Jeans still a new brand name of coffee. the company have to compete with other brands which were established for long time such as:

Source: Trung Nguyen coffee website

 Trung Nguyen has bee established from 1996 and one of the most famous coffee brand in Vietnam

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Source: Highland coffee website

 Highland coffee belongs to an American – Vietnamese and has been established from 1998. They opened a lot of branches through Vietnam by using demographic strategy.

Source: The Coffee Bean & Tea Leaf website  The Coffee Bean has been established in 1963, all coffee bean are produced from high altitude in Costa Rica, Colombia, Ethiopia and Papua New Guinea.

 Other Coffee Shops: Appeared In Vietnam for hundred years which are small and locates in sidewalk areas. Their prices are low as level of quality.

4.

Intermediaries:

Physical distribution firms Gloria Jean’ s does not have the manufacturer to produce the coffee in Vietnam, all coffee are imported from Australia. However the price of products they sell in vietnam is same with price in Australia. Moreover in Vietnam they have to pay the shipping cost and tax of shipping. So it is not the best way to sell in vietnam from importing because it cost much. It will limit their asset to advertise and develop their shop in vietnam.

IV.

SWOT Analysis:

A. Strength:  Established in 1979, so they are really an expert in coffee industry.    

Is popular in the world by 750 shops in Australia and 45 countries. provides different kinds of coffee to meet the customer demand. Ingredients are high quality and controlled very strictly. The employees are trained well. Honesty and friendly are their objectives. 10

 All the shops are designed in common luxurious style, customers will feel comfortable and satisfy with free wifi.

B. Weaknesses:    

The price is quite high. Unpopular brand name in Viet Nam. Shops just exist in Ho Chi Minh City and Ha Noi. The product line is quite narrow and few products are not suitable for Vietnamese taste.  Do not have bonus or discount to attract more customers.  Staff training is not really mentioned to satisfy clients.

C. Opportunities:  Viet Nam is an agriculture country, the most famous products that are exported over the world are rice and especially coffee. Coffee is grown in Tay Nguyen can pass the highest quality standard and the company can use the domestic coffee instead of importing to save the budget.  Vietnamese prefer to use coffee every day, coffee is the culture of Viet Nam. Every people want to enjoy coffee and in the market, lack of high class coffee for business man or people like to enjoy the western coffee style.  The machine and equipment to make Gloria Jean Coffee are imported and produce under the latest technology that are the same ways as Australia and United States.  The economic of Viet Nam is increasing rapidly and the demand of customers to enjoy the high quality from foreign brand also increase.  Most of population in Viet Nam are young people and they are affected by the Western lifestyle, people will easily go and enjoy coffee from Gloria Jean.  Viet Nam joined WTO and products from foreign company can spread their channel more easily in Viet Nam.

D. Threats:  Many new coffee shop are opened in the center in Ho Chi Minh City and Ha Noi as Highland, Window 4, Bud’s Café.  The inflation over the world reduce the income of customers and they do not often go to the luxury coffee shop.  TV advertisement is too expensive and Gloria Jean Coffee have to change through newspaper and magazines.  The price of coffee, milk, sugar increase and it makes price of coffee increase, Gloria Jean’s Coffee will face with the price from the competitors.  Gloria Jean’s Coffee shop are often located in the central of the city, the price of renting increase is a serious threat for the company.

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 Staff training is not easy, the behavior of staff when they serve customers very important, when the clients do not feel satisfied, they may not come to Gloria Jean’s Coffee again.

E. SWOT Matrix: Internal / External

Strength

Opportunities

Threat

V.

Present cheaper price of Coffee to serve different kinds of customers that everyone can enjoy the Coffee. Do more promotion and marketing strategies to spread the brand name. Introduce more tastes of Coffee that are suitable with Vietnamese. Cooperate with the local coffee company, Trung Nguyen Coffee to supply more kinds of coffee and buy the ingredients from the domestic supplier to reduce the price.

Weakness Open new shops in the big city of Viet Nam. Advertise the coffee of Gloria Jean as the the first choice when customers want the place to enjoy high quality coffee.

Find the location to open the shop that is the affordable price and maintain the price. Join the domestic exhibition of coffee industry to introduce more to Vietnamese customers.

Product objective:

A. CORPORATION OBJECTIVES: According to Gloria Jean’s Australia (2009), the Gloria Jean’s Coffee aims to be the most loved and respected coffee company in the world by providing the best quality coffee with an outstanding personalized service in vibrant store atmosphere, base on:    

Commitment to be an excellent coffee supplier and service provider. Integrity and trust are basic value to build partnerships with suppliers. A belief in changing live and people. Creating a joyful and passionate working environment in the company.

B. MARKETING OBJECTIVES:  Gain market share by 15% from the end of September of 2009 to the end of September of 2010 12

 Improve brand awareness by promotion and events sponsor from the end of September of 2009 to the end of September of 2010  Keep the growth rate from 4% to 6% from the end of September of 2009 to the end of September of 2010.  Increase current sales to 30% from the end of September of 2009 to the end of September of 2010.

C. FINANCIAL OBJECTIVES: The Gloria Jean’s coffee understands that a good company must have a good financial result. Thus, financial plans and goals are really important to every activity of the company. Moreover, customers and investors will have a creditable clue to choose Gloria Jean’s coffee by successful financial results.  Obtain 15% increase of revenue from the end of September of 2009 to the end of September of 2010  Achieve 8% increase of ROE and 5% of ROA every year.  Restrain increase of production cost under 15% from the end of September of 2009 to the end of September of 2010.  Maintain proportion of increase of products’ quality and growth of price between 3%- 1% and 3%-2% from the end of September of 2009 to the end of September of 2010.

VI.

Market segmentation, targeting and positioning

A. MARKET SEGMENTATION: When entering in Viet Nam, Gloria Jean’s Coffee has a mission statement to be the most successful coffee company in Viet Nam; company want to bring to its customer tasty and feeling of products including coffee, cake and modern space, which is suitable for people focus on teenagers and middle age people. These are reasons why they pay their attention on the subsequent market segments:

Demographic

Age: company is loved by every people who enjoy coffee. However, this is more interesting in teenagers and middle-aged people. It targets on young people in average age from 15 - 40 years old.

Income: Gloria Jean’s set the price that suitable with people have middle or high income, and it will be more than 5 millions. With coffee and cake, they charge customers different price base on kind and size of their products. However, just people have middle and high income can buy these products, lower income customer might not 13

interest in that product because of price.

Geographic

This franchise is currently targeting in Ho Chi Minh city and Ha Noi city, especially focus on Ho Chi Minh people who live in district 3, District 1 and District 7 cause of the average income of people in those areas. However, Gloria Jean’s try to establish more coffee shop in through Viet Nam to beat Trung Nguyen’s coffee, become the top franchiser in Viet Nam.

Psychographic

Social class: Gloria Jean’s focus on two social classes: middle and high class.

Lifestyle: company produces many kinds of products to suitable with variable life style of consumers. People who want to enjoy a cup of coffee in a modern and comfortable environment are customer of Gloria Jean’s. They want not only a cup of coffee or a cake but also the service and environment around.

Behavioral

Regular occasions: enjoy Gloria Jean’s Coffee when working, chatting and handing out with friends.

Attitude toward the product: solemn and excited.

B. TARGET MARKETING: Niche- marketing

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As we know, Gloria Jean’s is opened in vietnam in 2007 with 2 outlets in Hochiminh city. First of all their name is famous in the world and the Gloria Jean’s in Australia has advertised by using differentiated marketing strategy. Thus many people in the world know Gloria Jean’s fame and when they open in vietnam, everyone have known about their name. Moreover they have just entered in vietnam, so they don’t focus too much on marketing. And they just focus on selling and opening BRANCH

LOGO

PRICE

QUALITY

more franchises in Vietnam. Therefore they just use niche marketing to advertise their coffee by using banners, discount banners in coffee shop. In addition, They have used this strategy beacause in vietnam there are many famous coffee shops that exist a long time, so vietnam is the large market of coffee. However they just want to use this strategy to test the market before investing more. Moreover Niche Marketing helps them to achieve more effective and efficenct in business with the low advertise expense.

C. POSITIONING: There are a lot of coffee shop are running on over Ho Chi Minh City. To determine where Gloria Jean’s standing, below is a small table that analyze coffee shop in Ho Chi Minh City.

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Gloria Jean’s

60.000 – 100.000

High

Highland Coffee

40.000 – 60.000

Medium, high

30.000 – 50.000

medium

60.000 – 90.000

High

20.000 – 50.000

Low, medium

Trung Nguyen The Coffee Bean

Other coffee shop

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

Image differentiation:

By offering an image of a cup of hot coffee, Gloria Jean’s make customers always feel warm when they think about our products. the company always want to make customers feeling as ease as they are at home when they enjoy our coffee. This makes a strong impression in customers mind when they consider buying coffee.  Product differentiation: Gloria Jean’s try to provide as much kind of coffee as possible for difference segments or even the same segment can enjoy coffee in difference ways. At the mean time, Gloria Jean’s already had 50 kinds of coffee to serve our valuable customers. 

People differentiation: 17

All the staffs in Gloria Jean’s are trained very careful before they can face the customers in every shop. the company provide a warm environment when customers come to Gloria Jean’s outlet to enjoy coffee and feel as much comfortable as possible.

There are a lot of coffee shop are running on over Ho Chi Minh City. To determine where Gloria Jean’s standing, below is a small table that analyze coffee shop in Ho Chi Minh City.

VII. Marketing mix strategies: A. PRODUCT Gloria Jean’s coffee shop has quality bring out both tangible product and intangible product. Moreover Gloria Jean’s has characteristics of convenience products that the customer buying behavior is frequently purchase with a low price and convenient locations. And they just use the micro promotion to advertise their products Three levels of products: Core benefit: The Core benefit of Gloria Jean’s is drinking, enjoying, relaxing, entertaining and propriety. Actual product Knowing the characteristics of core benefit of Gloria Jean’s product that means we can know how the value of product from Gloria Jean’s supply to us. After that the consumers should know the actual products of Gloria Jean’s in order to know the quality, brand name, feature, design and packing to supply successfully to the customers. Brand: Gloria Jean’s coffee shop is the famous brand name coffee shop in Australia. They have opened first in Australia, after that they have opened many brands in many countries in the worlds such as New Zealand, USA, Canada, and Vietnam….Symbol of Gloria Jean’s Is a cup of coffee which has a smell spreads that means in Gloria Jean’s always supply to customer the perfect coffee. Furthermore Gloria Jean’s has the rule that they mix cup of coffee from 23 to 27 minutes. Below 23 or above 27 minutes, that cup will not give to the customer

Packaging: if the customers want to enjoy coffee outside, Gloria Jean’s has a glass by paper and they have bags are whisked around the country to their stores so that their guests can enjoy the freshest espresso. That is the way to packaging in Vietnam. Furthermore, in Gloria Jean’s also they 18

sell many kinds of coffee that contain in packs in order to server customer at home who want to mix coffee themselves and don’t have free time to go Gloria Jean’s coffee shop Design: Gloria Jean’s coffee is contained in nice cups to attract customer and they will feel relaxing when enjoying the coffee at Gloria Jean’s coffee shop. Moreover the coffee packs that various kinds of coffee with different designs on the wrapping with the symbol of Gloria jean, the kind of coffee inside packs and the modern view to attract customer. In addition, Gloria Jean’s send to the consumers the modern and best quality coffee of Gloria Jean’s in their design. Quality: “All products of Gloria Jean’s is imported from around the world, the highest quality Arabica beans arrive in Sydney roasting plant, each bringing their own distinct flavor and aroma from their region of origin. Carefully sorted and expertly roasted on their premises to bring out their unique flavors, they are then sealed to ensure the freshest of coffee for guests. After that they supply coffee to outlets in the world. So the quality of Gloria Jean’s is the best coffee” (Gloria Jean’s Australia, 2009) Features: In Vietnam, Gloria Jean’s coffee shop deliveries the hot drinks (Classic Coffee, Specialties Coffee, Tea and Hot Chocolate) and cold drinks (Coffee Over Ice, Espresso Chiller, Mocha Chiller, Chocolate Chiller and Fruit Chiller) which each kind has various drinks. Beside this in other countries, Gloria Jean’s supply the Gloria at home products with coffee packs. Moreover Gloria Jean’s sell travel mugs, rainforest alliance mugs, tea and coffee accessories. In addition Gloria Jean’s sell the coffee machines in order to serve the customers can have the best quality machine to mix coffee. ( See in appendix 1) Improvements:  In Vietnam Gloria Jean should supply more the coffee pack to sell to resellers to open the market and consumers.  The coffee packs should made by paper or the products can be recycled to protect the environment.  They should have many kinds mix of coffee to attract more customer  The coffee products should make to be more art and more color to attract the young customer, because the young customers like drinking coffee are many Augmented product: All products from Gloria Jean’s are imported directly from Australia and most products have guarantee one year in the packs. Moreover all products from Gloria Jeans are examined by the Vietnamese Health Department. Furthermore in Vietnam they have the customer service centre to protect the consumers. In addition, the coffee packs have a date of production and one year guarantee. Gloria Jean’s always hope delivery the best quality for the customers to enjoy. In the US, they have the website of Gloria Jean’s that the customer to order online through internet. 19

Improvements:  Gloria Jean’s in Vietnam should have the website to advertise products and has the shopping online in the website to delivery to the customer easily  They should have the hotline number of service centre to ensure interests of consumers  Imported any kinds products of coffee to serve for all of ages ( decaffeinated, flavor and black coffee) in order to protect the health of customers Brand development In Vietnam market, Gloria Jean’s apply two strategies of brand development that are line extension and brand extension. There are many various kinds of flavors in line of all coffee products in Gloria Jean’s With line extension strategy, Gloria Jean’s has a list of menu that includes classic coffee with the main flavor is coffee and the mix of coffee and milk. Moreover they create the coffee with the taste of Italian and some line of products is high flavor of coffee to serve who one wants to enjoy. They sell existing products in the Hochiminh market to explore the market in Vietnam before opening in other cities in Vietnam by using their famous products. As Gloria Jean’s is the famous brand coffee in the world so they want to everyone know about their products, That is a reason why they build their brand name to be famous with their products by using the market development strategy in the other markets in the world.

Gloria Jean’s also use the brand development to attract more customers by selling other products. Gloria Jean’s see the demand of customers that whenever they come to the coffee shop, firstly they want to sit at the comfortable, modern and convenience place. Secondly they want to enjoy the famous coffee, but nowadays there are many business women in here and some of them do not like coffee, so the Gloria Jean’s supply the fruit juice. Moreover many guests come to Gloria Jean’s also want to something to eat, thus Gloria Jean’s create different delicious cake. In addition, Hochiminh city is a busy city, and there are many young teenagers like going coffee shop to talking with friend, so the part of customers are teenagers and Gloria Jeans supply for them the mix of coffee, milk, fruit and cream. Especially, Gloria Jean’s sell their own vacuum tumblers and mini machines that consumers can mix coffee at home and office. As a result, Gloria Jean’s still in the market but open the products to attract any kinds of demands’ consumers. (See in appendix2)

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B. PRICE: 1. Competition Based Pricing:

In coffee industry in Ho Chi Minh City, price of products is an effect each other by some main brands name of coffee like Trung Nguyen, Highland and Gloria Jean’s. By using competition-based pricing strategy, Gloria Jean’s set the price while comparing with their main rivals in the market and make sure that is the most suitable price. When setting the price base on “more for more” strategy, consumers will pay more for Gloria Jean’s products than others in coffee industry but the quality is higher. When doing that, Gloria Jean’s will not be affected much by the decreasing of price of their competitors, but they will charge customer more if their competitors such as Highland increase the price. For Illustrate, Highland Coffee have cappuccino with the price is around 30.000VND to 40.000VND per cup but Gloria Jean’s set the price is around 60.000VND to 120.000VND up to the size. Competition-based pricing help Gloria Jean’s Coffee put prices more flexible with their competitors and it does not requirement to do market research such as advertising or demand of people. Moreover, this pricing policy may also help Gloria Jean’s set their products price easier cause staffs of Gloria Jean’s just do market research of their competitor’s price and then charge the price a little bit higher. This action also helps create an image in people mind when day design to drink what coffee’s brand. For instance, when they see that Gloria Jean’s set a price higher than others coffee company, they would think that coffee which make from Gloria Jean’s has a better quality than others. As the result of that, when setting the price higher than competitors, Gloria Jean’s has a competitive advantage and it makes their profit increasing.

2. Product Line-pricing:

According to “new product development” (n.d), this is important for business to release a new kind of product base on the old one to keep up with rivals and increasing market shares. When applying this theory and product line –pricing strategy, Gloria Jean’s try to create more kind of coffee for people. Actually, the price of each kind of product is a little bit different and normally the new products are stetted the price higher than the old products. For instance, in hot drink we have coffee latte and coffee mocha, actually this is use the same main coffee is espresso but mocha coffee is a development product so they set the price higher, about 5000VND to 10000VND.

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3. Optional product pricing:

This strategy is usually use for car or electronic industry but Gloria Jean’s can also apply this strategy in to their business. People who come to a Gloria Jean’s Coffee shop are already wanting a cup of coffee that make by that company but they also have different taste, too. For example, someone like more milk or someone likes more cream than normal. So they can offer employees in Gloria Jean’s put more what they want into their coffee and they will be charged as a higher price than a normal. For example, company have flat white is the mix of espresso and steamed milk below a thin layer of smooth silky milk, but if customer want more milk or coffee, Gloria Jean’s will charge 10.000VND to 20.0000VND higher. This strategy has an advantage point that Gloria Jean’s can serve their customer whatever they like, make consumers more please and feel good about this coffee company. Furthermore, Gloria Jean’s can get a little bit higher prices for their product when using this strategy.

4. Product bundle pricing:

Product bundle pricing is becoming a popular strategy nowadays and Gloria Jean’s applies it in a suitable way, too. All of thing Gloria Jean’s does is put their products into “set” or “combo” such as “combo A” have cappuccino and cake but the price for that combo is 90.000VND, which is cheaper than when consumers buy each product individually, 75.000VND for macchiato and 30.000VND for a cake. The reason why Gloria Jean’s does it is they want customers buy more their products and feel that they get benefit from buying a “group” of products like that. Therefore, product bundle pricing can increasing Gloria Jean’s profit and make people who buy the products feel that it is cheaper so they can save money.

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5. Geographic pricing:

Gloria Jean’s now has 5 coffee shops in Vietnam: 4 in Ho Chi Minh City and 1 in Ha Noi City; however, this company charges their customers different price base on where they enjoy Gloria Jean’s coffee. For instance, a cup of coffee in District 7 are likely 10.000VND higher than the same cup of coffee in District 1, it mean 80.000VND up to now, both stores are located in Ho Chi Minh City. The reasons for that different price may cause of the different of target segments and different suppliers; actually, Gloria Jean’s always try to set the same price of their products like any franchises company such as Highland Coffee or KFC restaurants. However, that differentiation may cause a little bit specialization for both Gloria Jean’s and customers make them feel separate from another.

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C. PLACE:

Vertical Distribution System

Australia Gloria Jean's in Vietnam Outlet in District 1

Outlet in District 3

Outlet in District 7

At the moment, Gloria Jean’s has applied the vertical distribution system. It has opened as the franchise organization that was bought by Phong Cach Song Viet Company. The Partner in business is head office of Gloria Jean’s in Australia; they supply service from firmsponsored to retailer franchise system. Because Gloria Jean’s is the famous brand name in coffee in the world but it still not open in Vietnam, so Phong Cach Song Viet Company want to try the name of foreign coffee to Vietnam. Moreover Gloria Jean’s in Vietnam opens at district 1-the centre of Hochiminh City, so many people love coffee that know about their fame. And because opening in the centre of Hochiminh city, so there are many people and tourists that come to Gloria Jean’s coffee shop. Furthermore in district 1 is the busiest district and concentrates many departments, building and shopping centers, so with a convenient place and a famous name that make the distribution of Gloria Jean’s in Vietnam are developing year by year. The result is after 2 years Gloria Jean’s in Vietnam has opened more 2 outlets in district 7 and 3. Gloria Jean’s always choose the convenient and crowded place that have many departments and shopping centre, because it can help them to increase the sale and that is also the marketing method- mouth of word- in order to promote Gloria Jean’s to everyone Current address of Gloria Jean’s in Ho Chi Minh city: 1. 131 Đồng Khởi, Bến Nghé Ward, Distrcit 1 2. 106 Nguyen Thi Minh Khai, Ward 6, District 3 3. Grandview building, Phu My Hung, District 7

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Australia

Gloria Jean's in Vietnam

Selling online through telephong and internet

Direct selling at Gloria Jean's coffee shops

Consumer Segment 1

Consumer Segment 2

Retailers

Consumer Segment 3

Resellers

Consumer Segment 4

Hybrid marketing channel In the future, Gloria Jean’s should apply the hybrid marketing channels to develop the name of their coffee in the market. Because Vietnam is developing year by year, so the life of everyone also develops and demands of people is increasing. Besides, enjoying the coffee at Gloria Jean’s coffee shop many people want to drink coffee at home to enjoy, especially business man and woman want to drink coffee when they work at night. Thus Gloria Jean’s should build the selling online through the telephone especially in the internet because most of people now go to the internet everyday. That is one of the best methods to increase their sale and service. In addition, Gloria Jean’s should import coffee packs to Vietnam and supply it to resellers such as supermarket, because of this they can open more market in Vietnam and day by day everyone in Vietnam will know and enjoy their coffee. Furthermore, Gloria Jean’s Vietnam can sell their coffee to other coffee shop to everyone can enjoy their coffee everywhere.

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D. PROMOTION: 1. Promotion Mix Strategy

The Pull Strategy

The Gloria Jean’s chooses “Pull Strategy”. While doing “Pull Strategy”, the Viet lifestyle company which is in charge selling brand franchise, will advertise through traditional and alternative media such as newspapers, magazines and internet. In addition, Viet lifestyle usually does large sales promotion for new opening stores to attract customers. Moreover, the company also tries to contribute its successful business to the local society by sponsoring for charities and events. Although, Gloria Jean’s is a new entrance in Vietnam market, many coffee fans are coming to Gloria Jean’s stores in Hochiminh city and Hanoi. However, the company still has to overcome many barriers of entrance from existing competitors such as Trung Nguyen and Highlands coffee. It also leads the company to push their promotion strategy ahead by more impressive and aggressive. 2. Advertising:

A Pattern of Gloria Jean’s Coffee Advertisement Gloria Jean’s selects “image” as their main language in designing the advertising message.  Magazines: Consumers will see an advertising pattern whose content is a hot and attractive mocha coffee cup with smoke over head in a quite brilliant decoration coffee store. In addition, the company also uses informative advertising to promote in the internet. The key is they 26

choose high viewers ranking magazines to post PR articles which include the company’s background, fame and special coffees of Gloria Jean’s. 3. Sales promotion:

Gloria Jean’s uses two types of sales promotions which are determined as temporary and permanence.  Temporary promotion: the company usually releases the promotion for special events such as launching a new product or a new opening store. For every 2 months, Gloria Jean’s will add a new kind of coffee, tea or cakes in their menu. In order to increase sales, Gloria Jean’s combines the new kind of coffee with a existing or new cake whose total cost is lower than buying separatedly. Furthermore, Gloria Jean’s also offer a 30% off for a new kind of product for small or medium size. Typically, customers tend to try a new product because of a cheaper price. In a case of their new store in Lotte Mart, Gloria Jean’s is willing to reduce 50% off of every kind of coffee, tea and cakes for any customer represents Lotte Membership’s Card. As the result, Lotte Mart consumers have intention to buy drinks from Gloria Jean’s than other adjacent coffee shops.  Permanent promotion: Gloria Jean’s applies “10 for 1 free” program. It means that for every 10 coffee or tea cups purchased at any time and for any kind of, customers will receive back 1 free medium cup of coffee. Thus, Gloria Jean’s attract many customers, especially crowded group of people and loyal customers who usually put Gloria Jean’s as their “coffee homes”. 4. Direct marketing:

Gloria Jean’s company will create a new catalog which contains full menu of coffee, tea and cakes. The catalog will be also made in two versions which are papers and digital. Furthermore, the company public relations department will send the catalog to target customers such as managers, business men, international schools and universities. Moreover, the company will set “internet and telephone order” in the end of September of 2019. In the catalog, customers may find information of ingredients, flavors and origins of all kinds of Gloria Jean’s coffee, tea and cakes. Gloria Jean’s aims to upgrade a advantage step of service and quality which customers easily select their favorite and avoid untended allergies.

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5. Public Relations:

Although, Gloria Jean’s is a new entrance, they are trying to adapt to Vietnam culture and society by some programs from the end of September of 2009 to the end of September of 2010:

 Promotion Girls: the company will recruit 10 groups of PG which have 45 PGs in every group. Then, they are sent to large supermarkets in Hochiminh city such as Co-op mart, Maximart and Lotte Mart. PGs will invite customers to try new products and operate small lucky draw. To build brand awareness and make public attention are aim of this activity.

 Charity: the company understands a necessity of contribution to the local society. As the result, the company will take a part of this annual budget to sponsor for some charity programs which support finance for poor students from the end of September of 2009 to the end of September of 2010.

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VIII. Control Program

IX.

Control program:

The marketing plan will be processed from January of 2009 to January 2010. The control program is one of the most important parts which will stick all departments of the company to process tasks together and ensure the success of company’s objectives:  Promotion Girl: Most of coffee drinkers are male and to attract more clients, the company has a special promotion that using the promotion girl. Young and cute girls will be chosen and these girls will stand at the crowded places as big supermarket: Coopmart, Citimart or Metro and the office that most of people work. The shop will put the mix coffee machine at those places and people will be invited by the promotion girls to enjoy hot coffee with high quality of Gloria Jean, people can enjoy and give the feedback about the taste of coffee. Base on these feedback, the shop will improve the quality and produce more tastes of coffee that are suitable for most of people. The task of the girls is that they will attract people come to Gloria Jean Coffee kiosk and introduce the history also the products of Gloria Jean coffee, these girls wear formal clothes because the potential customers of the company are high class people. 

Membership card

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The same as other company, Gloria Jean Coffee will have many benefits for closed customers that use the products for a long time. When people come to the shop, the shop will give a card for customer, one time user drink coffee at the shop, people will receive 1 tick and 20 ticks, people will have a member card of Gloria Jean Coffee. People will have many bonus and discount when customers have member card, diamond card will be reduced 20%, gold card is 15% and silver card is 10%. If people become a close customer, customers will have many advantages as people can test the latest coffee and can join every activities of the shop as party night or picnic. In addition, when people have member card, people will also be reduced the price when they come to another restaurants that Gloria Jean is the partnership as Kfc or Lotteria. Company hope with this program, many customers will come to the shop.  Happy Family: Happy family is the program for a group of customers. When 10 people or more come to the shop, customers will be reduced 10% on the bill and received free 1 pack of coffee. The shop will have more profit with a group of people more than the individual client. In addition, in the middle day of week, people do not often come to enjoy coffee, the shop also have a bonus that people will be received 1 free pack of coffee when people buy with the value is more 80.000 VND. Moreover, the shop also celebrate funny activities for child to attract parents let their children go to the shop. The competition between families also mentioned to spread the brand name more closer to customers, every family can join and mix the coffee together, the prize will be belonged to the family that they have a special way to mix the most delicious coffee. The shop has a plan that every day of week, the shop is always crowded.

X.

Reference:

1. The Nielsen Company, 2008.” Vietnam Grocery Report 2008”. [pdf] Available at: http://vn.nielsen.com/site/NielsenVietnamGroceryReportOctober2008.pdf[Accessed 20 July 2009]. 2. The Gloria Jean’s Coffee Australia, 2009, “Our Commitment”, viewed in 09 September 2009 http://www.gloriajeans.com.au/ourStory/ourcommitment.aspx 3. The Gloria Jean’s Coffee Australia, 2009, “Make A Great Coffee”, viewed in 09 September 2009

XI.

Appendix:

Appendix 1: PRODUCT Cappuccino

FEATURE The famous and popular mix coffee in the world. Rich, creamy flavor with a hint of cinnamon. Its formula is espresso

PACKING It is the hot drink so it is contained in cup or paper cup of Gloria Jean’s

PRICE

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and steamed milk beneath dense velvety smooth milk. It makes everyone feel sweet and satisfying.

Caffe’ Latte

That is the espresso and steamed milk below a thin layer of smooth silky milk

It is the kinds coffee of hot drink and is contained in cup or paper cup of Gloria Jean’s

Flat white

It is espresso and steamed milk. It create the plain and simple feeling for customer

It also contains in the cup of coffee or can be contained in paper cup to everyone can go outside and enjoy

Long Black

Freshly heated water added to espresso resulting in a fullflavored coffee. It is mixture of bold and black coffee. It is for who wants to enjoy the charming taste of coffee Gloria Jean's Special Espresso Blend coaxed to yield the essence of fine coffee. Wonderfully intense and aromatic.

It is the hot drink so it is contained in cup or paper cup of Gloria Jean’s

The first 15-20ml of the espresso extraction for the sweetest, purest and most intense coffee.

The volume depends on the cup of coffee that contains it. Always 15-20ml in a cup

Short Black

Ristretto(Italian for ‘restricted’)

It contains in the cup of coffee or can be contained in paper cup to everyone can go outside and enjoy

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Macchiato

It is an espresso with dollop of velvety milk foam

It contains in a cup of coffee.

Piccolo latte

That is a mini version of café latte. A single Ristretto layered with a small amount of creamy steamed milk.

It also contains in the cup of coffee or can be contained in paper cup to everyone can go outside and enjoy

Caffe’ Mocha

It is the kind rich chocolate, espresso and steamed milk finished with whipped cream and chocolate sprinkles

It contains in a cup of coffee.

Caramelatte

A classic Gloria Jean’s favorite. Delicious toasty, buttery rich caramel syrup added to Caffe Latte then topped with creamy caramel sauce

It contains in a cup of coffee.

White Chocolate Mocha

Sweet, tempting fine white milk chocolate, espresso and milk topped with whipped cream and chocolate sprinkles.

It contains in the cup of coffee or can be contained in paper cup to everyone can go outside and enjoy

Irsih nut crème

An indulgent blend of Irish Crème and Hazelnut syrup, delicate white chocolate, espresso 32

and milk. Finished off with whipped cream and green sprinkles for the luck of the Irish

Very vanilla latte

The smooth, aromatic flavor of vanilla combined with espresso and milk, topped with whipped cream

Minicino

It is a great before and after school delight for primary school aged kids. That is a small cup of steamed milk flavored with Caramel, Vanilla or Strawberry syrup It is perfect for sophisticated preschooler. That is simply warm milk and dollop with of milk foam.

Babycino

It is contained in a piccolo cup

List of Tea English breakfast Green Tea Earl Grey Peppermint Darjeeling Assam Organic Ceylon Orange Pekoe Ceylon decaffeinate, Chamomile 33

Chai Tea Latte Other drinks Fruit chiller Italian Sodas Fruit Smoothies

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