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Trung Nguyen Coffee Swot Analysis

1356 words - 6 pages

1. Trung Nguyen has great raw material to produce coffee because Trung Nguyen has production plant located in the coffee capital of the Buon Ma Thuoc where soil and and weather are supportive of coffee growing. Besides, Viet Nam, which is the home of Trung Nguyen brand, is the largest coffee exporter in the world. This advantage helps Trung Nguyen not to depend very much on suppliers. This location is also convenient for transportation.
2. Trung Nguyen is an old brand in Viet Nam, they have got the fame spread out the nation. This is considered “home advantage” when Trung Nguyen understands culture and life style of Vietnamese people. The product quality meets customers’ need ...view middle of the document...

6. Trung Nguyen’s public relation is effective with creative strategies in building customer interest and loyalty. Trung Nguyen coffee village is open in the highland city of Buon Ma Thuoc to attract tourists. The global coffee museum and coffee research institute help native and foreign people to learn about coffee. These ways create Trung Nguyen unique image in coffee market.

1. Franchise system is lack of consistency in many aspects. To be more specific, there is clear difference in price, quality control and service in Trung Nguyen coffee shops which is resulted from two main causes. Firstly, Trung Nguyen are using price discrimination strategy which is the practice of setting a different price for the same product for different classes and ages. The objective of this strategy is to maximize profits. However, it is not a smart move in franchising which may make the customers neglect the shops with bad coffee quality and choose other coffee shops with better one. Secondly, it is the consequence of the massive marketing strategy when quality is beyond the control. Basically, it is due to the fact that Trung Nguyen cannot control all its partner brands so they just function on their own.
2. Too engross with the intensive competition with Starbucks, Highland Coffee and the Coffee Bean, Trung Nguyen has not focused much on commodities which are the contributors for the highest sales for Trung Nguyen. It is reflected in its recent uncreative marketing strategies.
3. Trung Nguyen has too many projects and ambitions at the same time to accomplish well which disperses the financial, material and human resources.
4. The constant changes in signage, color, design, packaging system has made the operation of the whole system become increasingly stagnant, and as a result, there are many different forms of identification in the market which confuse the customers with differentiating whether it is Trung Nguyen's genuine products or not.
5. The continuous changes in human resources makes Trung Nguyen lose its stabilization and even confidence of the staffs working in the group.

1. Trung Nguyen Coffee brand pioneered the revolution called "Spirit of Vietnam" which represents the dream of Vietnamese who dare to stand up to challenge and prove themselves, and the spiritual fervor of yearning for becoming the number one on the world. Also, it was the pioneer enterprise of Vietnam whose target is to meet the taste of Vietnamese.
2. Trung Nguyen is protected by State about interests and trademark, supported production costs and facilitating exports abroad.
3. After Vietnam joined the WTO in November 7th, 2007, Trung Nguyen has been well known not only domestically but also in global market.
4. Trung Nguyen has extensive marketing strategy and scale along with the promoting the image and its coffee quality with the coffee chains franchise.
5. Nowadays, instant coffee has become "everyday product" since drinking coffee becomes...

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