|Vietnam, Hanoi, 2011 September 7 |
Coffee history in Vietnam
Highlands Coffee vs Starbucks Coffee in service
Coffee history in Vietnam
Coffee was introduced into Vietnam by French colonists in the late 19th century. Vietnam quickly became a strong exporter of coffee with many plantations in the central highlands. The beverage was adopted with regional variations. Because of limitations on the availability of fresh milk, the French and Vietnamese began to use sweetened condensed milk with a dark roast coffee.
Vietnamese-Americans introduced the practice of adding chicory to coffee, and many Americans today believe that all true Vietnamese coffee contains chicory. One brand that uses chicory is Cafe du Monde, often cited as the coffee to use when brewing Vietnamese iced coffee. However, Cafe du Monde originated in New Orleans, and chicory coffee is an American phenomenon. In Vietnam, coffee is never served with chicory. Thus, a "true" Vietnamese iced coffee will not contain chicory, but will instead be a Vietnamese brand such as Trung Nguyen, Indochina Coffee or Highlands Coffee three of which are headquartered in Vietnam and offer exclusively coffee grown in the central highlands.
Nowadays in Vietnam, coffee drinking habits have increased a lot due to the rapid changes of society. Stressful working hours and regular business meeting are the main factors affecting the growth of cafés. Vietnamese people often seek the space to relax after many hours of working in a comfortable chair with a nice cup of coffee, which will get them refreshed enough to enable them continue their work. Also, cafés are regarded as one of the best places for businessmen to discuss minor issues as well as sign contracts.
Therefore, as customer’s needs and wants soar day by day, Vietnamese café service industry sector has expanded vividly in recent years leading to the birth of one of the most famous and prestige brand – Highlands Coffee. This potential market of course did not escape eyes of the giant famous international coffee chain in the world – Starbucks Coffee. But how can they compete with the Vietnam king coffee supplier Trung Nguyen? Do they have the ability to persuade customers to come to their cafés instead of purchasing Trung Nguyen coffee? To answer these questions, we will compare Highlands Coffee and Starbucks in culture, design, relationship management as well as location strategy. But before that, let us look back at the two cafés background first.
Starbucks Corporation is an international coffee and coffeehouse chain based in Seattle, Washington. Starbucks is the largest coffeehouse company in the world, with 17,009 stores in 50 countries, including over 11,000 in the United States, over 1,000 in Canada, over 700 in the United Kingdom, and over 150 in Turkey.
Starbucks sells drip brewed coffee, espresso-based hot drinks, other hot and cold drinks, coffee beans, salads, hot and cold sandwiches and panini, pastries, snacks, and items such as mugs and tumblers. Through the Starbucks Entertainment division and Hear Music brand, the company also markets books, music, and film. Many of the company's products are seasonal or specific to the locality of the store. Starbucks-brand ice cream and coffee are also offered at grocery stores.
From Starbucks' founding in later forms in Seattle as a local coffee bean roaster and retailer, the company has expanded rapidly. In the 1990s, Starbucks was opening a new store every workday, a pace that continued into the 2000s. The first store outside the United States or Canada opened in the mid-1990s, and overseas stores...
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