Highland Coffee Case Study

Topics: Coffee, Vietnam, Starbucks Pages: 16 (5210 words) Published: May 3, 2013
According to Scofield (2011), Vietnam is the second the largest coffee producer in the world which the amount goes up to thousand tons every year. Therefore, it becomes a potential market for any investors and Highlands Coffee is not an exception. Highland is a Vietnamese coffee shop chain and producer and distributor of coffee products, established in Hanoi by David Thai – a Vietnamese American in 1998. The founding of Highland Coffee Company marked the first time an Overseas Vietnamese was able to register a private company within Vietnam. In the 1980s and early 1990s, David Thai witnessed the rise of the Starbucks coffee chain from a small company in his hometown of Seattle to a multinational corporation. He later cited this as the inspirations behind the founding of registration marked the first time an Overseas Vietnamese was able to register a private company of any kind in Vietnam. Two years later in 2000, the company was registered as a joint stock company, again a first for an Overseas Vietnamese. Highland is now having about 668 million dollar for the domestic market size and is growing at double digits. With the three main kinds of products including Roast and Ground, 3in1 and RTD are served via supermarkets, hotels, restaurants and cafés, Highland Coffee wants to bring to customers feel comforted from the reassurance that comes with traditional and trusted value. Highlands is the only brand in Vietnam which combinesquintessence of the world and traditions of Vietnam, old and new, the East and the West. As of 2009, the company operated 80 coffee shops in six cities and provinces across Vietnam: Hanoi, Ho Chi Minh City, HaiPhong, Da Nang, Vung Tau and Dong Nai.

David Thái is the founder of Highlands Coffee. He was also the first overseas Vietnamese successfully register a private company on Viet Nam. Highlands coffee (HC) is one branch of Viet Thai International: F&B(food and beverage). Highlands coffee is state enterprise.

For more information, Nike and many more famous brands are brought and distributed in Viet Nam by VTI (Consumer Lifestyle). As we know, Highlands coffee has aimed to open more than 70 stores in 2007 and now, they’ve already had about 80 stores, these usually located in nice view of the big cities- the centre. Highlands coffee stores are located in nice view, in buildings, offices, near supermarkets or outdoors. When customers come to HC, they are served with free, fast, safe parking lots. Via visible and invisible values, HC has shown to their consumers the difference, the luxury and safety. The average price is about 40.000 VNĐ. This price is suitable because this is evaluated by consumers’ feelings. These places have a great number of officers, young people. Officers, youngsters, and middle-class are the main target of HC; and in crush time, it is possibly overload to only serve these potential consumers, so it seems that is not really necessary to boost advertising. This is the reason why they can steadily develop and avoid strong competitor until they are ready. HC stores, as we see, have western structure, 2 main colors: red and black combine make such great atmosphere. HC is a combination of the modern and the classic, of East and West. BUSINESS MODEL

There are 2 main business models that is
* Building brand and then franchise_ give franchise to others individual or company. * Another model is no franchise- the companies open their own stores and manage themselves. And Highlands Coffee main business model has been no franchise type until they (executives ) sells its 50 % stocks to Jollibee. And recently, Highlands coffee just have bought Phở 24.

The main export product is roasted coffee beans. They started to launch roasted coffee product via high-class hotels and supermarkets in 2000. They mainly export to Western Europe, Eastern Europe, North America, and The United States. They only...
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