ACCOUNTING FOR MARKETING MAKING DECISION ACC 601
IN GLOBAL ENVIRONMENT
Student: Doan Kim Hiep
Lecturer: Dr. Huy, Pham Quang Trainee: Mr. Hiep, Doan Kim
Lecturer: Ms. AnhTho Andres Mr. Nguyen Van Hoan COURSE CODE: Final Assignment MKT 601 - DOAN KIM HIEP
UBIS INTAKE 2012 - 2013
Name of student: Doan Kim Hiep Class: MBA UBIS INTAKE 2 Case of study: Export strategy of Trung Nguyen Coffee Company I. INTRODUCTION Vietnam’s leading coffee company, Trung Nguyen is looking to turn Vietnam into a global coffee powerhouse. Coffee is a massive global market: roughly 2.5 billion cups of coffee are consumed around the world every day and sales exceeded more than $70 billion a year. Vietnam is a major player, currently the number two global exporter of coffee, behind only Brazil. However, while the country earned a record $2.7 billion in exports last year, many feel that it only represents a fraction of what the coffee industry here can become. Vietnam’s number one coffee company, Trung Nguyen, is trying to help move the nation’s coffee up the value chain from primarily an exporter of beans into a recognizable symbol of its own quality right. Author is going to use the theories about Marketing Mix, Marketing Environment, Potter’s five forces model, PESTEL, Target Marketing, Marketing Segmentation and cultural elements to analyze and define an export strategy to foreign market for Trung Nguyen. II. GENERAL COMPANY DESCRIPTION Vietnam is a major player in coffee and is the number two exporter of the socially acceptable bean in the world. Trung Nguyen is Vietnam’s number one coffee producer, processor and exporter and with coffee shops that incorporate the key to touch points of global franchises but provide a very Vietnamese application, retaining the identity of home-grown society. It dominates the coffee culture in Vietnam reassuringly and the young and ambitious Chairman, Dang Le Nguyen Vu, is intent on developing Vietnam’s coffee approach to challenge the global marketplace. Innovation strategy colors of this young and energetic company but not at the expense of what is proven to work. It’s a very Vietnamese approach. Final Assignment MKT 601 - DOAN KIM HIEP Page 2
Main office: 82 – 84 Bui Thi Xuan Street, Ben Thanh Ward, District 1, Ho Chi Minh City. Date of founding: 16/6/1996 Tel: (84.8) 39251852 Fax: (84.8) 39251848 Website: www.trungnguyen.com.vn Email: email@example.com Mission, vision and core value The mission: To connect and develop coffee lovers in the world Vision and core value: Great ambition National and international spirit Unceasing creativity and break through Good execution Value generation and sustainable development
Customers of Trung Nguyen: Various types of customers with different favourite tastes of coffee in Vietnam and the world. The coffee industry - The domestic coffee’s industry is growing. The number of consumed coffee is increasing rapidly year by year. The foreign coffee market is very large, potential and still has a lot of spaces for Trung Nguyen to develop. The most important strengths of Trung Nguyen are its famous brand name and its strong marketing. III. EXPORT STATEGY
Author is going to define the export strategy based on the theories about Marketing Mix ( 4P), Market/ Environment ( Porter’ five forces model, PESTEL ) Target Marketing, Market Segmentation and cultural elements,....that Trung Nguyen had used . 3.1 Products and Services 3.1.1 Theory Final Assignment MKT 601 - DOAN KIM HIEP Page 3
To describe deeply Trung Nguyen’s products, author will use the theory about Marketing Mix - The 4P. Marketing mix is the set of marketing tools that the firm uses to pursue its marketing objectives in the target market (Kotler, 2002). The marketing mix has an important role in determining a product or brand's unique selling point The marketing mix is classified into four broad...
References: Coffee Barometer 2012 report. (2012). Tropical Commodity Coalition Coffee in Italy report. (2010). CBI. Ministry of Foreign Affairs of the Netherlands E. Jerome McCarthy. (1999). Basic Marketing: A Managerial Approach. 13th ed. (Homewood, IL: Irwin) Ms. Anh Tho Andres. (2012). Teaching Material MBA program subject Marketing in Global Environment. UBIS Philip Kotler. (2002). Marketing Management, Milenium Edition. Pearson Custom Publishing. Boston Porter, M.E. (1979). How Competitive Forces Shape Strategy. Harvard Business Review Silvia Giovanazzi. (2010). The Italian coffee market 2010 report. Global Agricultural Information Network. GAIN report number IT 1047. USDA Foreign Agricultural Service Website: www.cbi.eu www.ecocert.com www.ico.org www.intracen.org www.iucn.org www.teacoffeecocoa.org www.trungnguyen.com.vn Appendices Appendix 1: The organizations
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Ecocert is an organic certification organization, founded in France in 1991. It is based in Europe but conducts inspections in over 80 countries, making it one of the largest organic certification organizations in the world. EurepGap is a common standard for farm management practice created in the late 1990s by several European supermarket chains and their major suppliers. GAP is an acronym for Good Agricultural Practices. It is now the world 's most widely implemented farm certification scheme. Fair-Trade certification is a product certification system designed to allow people to indentify the products which meet agreed environmental, labor and developmental standards. ICO (The International Coffee Organization) is the main intergovernmental organization for coffee. The ICO’s mission is to strengthen the global coffee sector and promote its sustainable expansion in a market-based environment for the betterment of all participants in the coffee sector. ITC (The International Trade Centre) is the joint agency of the World Trade Organization and the United Nations. ITC 's mission is to enable small business export success in developing and transition-economy countries, by providing sustainable and inclusive development solutions to the private sector, trade support institutions and policymakers. IUCN (The International Union for Conservation of Nature) is the world’s oldest and largest global environmental organization. It is a democratic membership union dedicated to finding "pragmatic solutions to our most pressing environment and development challenges."
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