starbuck market share in vietnam

Reference this. Some stores even feature shelves lined with books that customers are encouraged to browse including books that inspire and encourage young Vietnamese patrons. Retrieved from http://www.worldstopexports.com/coffee-exports-country/. (“sustainable competitive advantage analysis | blekko”) Competitive advantage is defined as the strategic advantage one business entity has over its rival entities within its competitive industry. Vu said Trung Nguyen, which exports coffee to about 60 countries, will expand to at least 200 retail outlets in two years. (“Starbucks opens first store in coffee-loving Vietnam”) Starbucks opened its first cafe in Vietnam in Ho Chi Minh City as part of its strategy to expand across Asia, and plans to add more shops throughout the country. The grand opening of the HCM City store marked Vietnam as Starbucks’ 12th market in the Asia Pacific, and adding up to its chain of some 3,400 stores in the area. Nhận ngôi sao điểm thưởng cho mỗi chi tiêu tại Starbucks. This is not an example of the work produced by our Essay Writing Service. “Vietnam is one of the most dynamic and exciting markets in the world and we are proud to add Vietnam as the 12th market across the China and Asia Pacific region,” said John Culver, president, Starbucks China and Asia Pacific. He further added that Starbucks is famous and Vietnamese people want to be seen at popular places, which is very typical for Vietnamese. (“Starbucks Coffee Company”) In 1981, Starbucks chairman, president and chief executive officer, Howard Schultz, was drawn into Starbucks from his first cup of Sumatra, and joined Starbucks a year later. It’s understandable why the US Starbucks decided to set up its first shop in Vietnam in HCM City, a commercial hub. Free resources to assist you with your business studies! But you won’t find the traditional style in a Starbucks… It is their goal that 100% of their cups will be reusable or recyclable by 2015. In Vietnam, the five biggest coffee chains account for 15.3 per cent of the market share, of which, Highlands Coffee holds 7.2 per cent, while Starbucks, the second in revenue according to Euromonitor, has less than 3 per cent, showing that foreign players are losing to Vietnamese chains. VAT Registration No: 842417633. It is predictable that Starbucks stores and services in Vietnam may not be invested as much as in the U. S. They insist on Starbucks because they know they can count on its genuine service, an inviting atmosphere and a superb cup of expertly roasted and richly brewed coffee every time. It has a global recognition and good reputation for fine products and services. Marketing Cà phê espresso của chúng tôi, latte của bạn. Vu’s focus on specialty beans and roasting includes a variety called “Legendee” created to mimic the flavor of coffee brewed from beans that are recovered from the feces of civets, a weasel-like rodent. Taking Starbucks as an example to explore the marketing strategy of multinational companies in China. They believe that by buying coffee this way, it helps foster a better future for farmers and a more stable climate for the planet. Starbucks promoted a campaign based on the Chinese market, which offers custom beverages to fulfill Chinese taste and local approval. Copyright © 2003 - 2020 - UKEssays is a trading name of All Answers Ltd, a company registered in England and Wales. Company Registration No: 4964706. The company also pledges to promote responsible business practices and production standards with coffee farming communities. They also have an ongoing relationship with Vietnamese coffee growers. According to the World Bank, the average local salary is only $148 and presents the most significant proportion of the population. Health foods now represent a $50 billion industry, and Starbucks has been very open about their intention to expand into the market and establish themselves as a major player. Other Consumer Products Coffee and Tea include Whole bean and ground coffee (Starbucks and Seattle’s Best Coffee brands), Starbucks VIA® Ready Brew, Starbucks® K‐Cup® portion packs, Tazo® tea filterbags and tea latte concentrates. Global revenue of Starbucks 2003-2019 ... Market share … The first Starbucks store is opened in District 1, Ho Chi Minh city in January 2013 and after 5 years, Starbucks Vietnam has more than 30 stores in 4 cities Ho Chi Minh City, Ha Noi, Hai Phong and Da Nang. Their employees, whom they call partners, are at the heart of the Starbucks Experience. Well, it has happened – Starbucks has finally. Vu further added that Starbucks no longer has the personality it had when it first started and that its regime will soon end and will soon be replaced. One Vietnamese, Nguyen Tien Tam, 35 had been quoted as preferring Vietnamese coffee, which is stronger than Starbucks and that as a Vietnamese, he only love local coffee. You can view samples of our professional work here. Starbucks' CEO, Kevin Johnson (2018), confirmed that the company performance is not operating as good as expecting and indicated a necessary change to address the preferences and needs of its customers. A case study of Starbucks.Â, Nguyen, H. (2017). Starbucks is also monitoring Vietnam’s rising coffee demand. Since the beginning, Starbucks has been a different kind of company. Starbucks is attempting to slowly expand in a market where it was once shunned.. Besides, providing excellent service quality and top quality products, high-end customers appreciate fast service for their busy schedule and quite environment where they can discuss business. Dang Le Nguyen Vu, founder and owner of Trung Nguyen said he’s ready to compete against Starbucks with a plan he’s developed over the past three years. Members also enjoy complimentary slice of cake on birthday month. Starbucks, “the third place”, and creating the ultimate customer experience. Coffee giant Starbucks takes advantage of a fast-growing economy and a middle class growing in Vietnam.  Businesses are built primarily by importing a business model and adjusting a business model to adapt to local conditions (Fischer & Roy, 2019).  Starbucks uses a similar approach to run its business around the world.  Therefore, there is also an integrated strategy for Vietnam.  Starbucks faces new challenges in constantly launching new stores.  Currently, the company has one store for every 1.7 million people in Vietnam, which is much lesser than other Asian countries like Thailand, Philippine, or Singapore.  Vietnamese coffee chains have a better understanding of the domestic market and are rapidly expanding their network in the local market.  The fastest-growing coffee chain is The Coffee House, based in Ho Chi Minh City. Company Registration No: 4964706. Their stores are a neighborhood gathering place for meeting friends and family. In 2010, Starbucks first introduced nine different types of tea drink selections, including both Chinese and exotic teas. Registered office: Venture House, Cross Street, Arnold, Nottingham, Nottinghamshire, NG5 7PJ. He had commented on an email to The Associated Press that Starbucks is looking forward to growing with Vietnam’s already vibrant coffee industry and making a positive impact in the communities where they operate. One of the customers, Angelica R. from Salt Lake City said she can’t wait till Evolution is worldwide so she could go back again. She confirmed that Vietnam with a population of over 90 million people is a large market and provides opportunities for many coffee brands to develop. And Nestle instant coffee which is engineered to suit the Vietnamese palette is sold widely in Vietnamese supermarkets. Our academic experts are ready and waiting to assist with any writing project you may have. Why Starbucks has less than 3% of Vietnam’s billion dollar coffee and tea... As the world’s second largest coffee exporter, Vietnam knows its … Starbucks® Ice Cream is also available in Super‐premium coffee and coffee‐free flavors. Venue options, which range from mobile coffee carts to locally-owned cafes to big-but-still-local names like Trung Nguyen, are pretty much unlimited. In HANOI, Vietnam, Nghiem Ngoc Thuy has been providing coffees to thirsty Vietnamese for 20 years in her colonial-style villa with peeling shutters, and she and her customers aren’t too worried that Starbucks will alter their time-tested coffee traditions. Starbucks revenues in Vietnam exceed target VietNamNet Bridge – The Starbucks Corporation, one of the world’s leading coffee brands, has claimed initial success in Vietnam. We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.co.uk. (“Starbucks opens first store in coffee-loving Vietnam”). A customer, Nguyen Phuong said many in Vietnam know of Starbucks and want to be fashionable. There is also a wide range of merchandize and product that is available which include bags, cups and mugs. According to the World Bank website, Vietnam had reached what the World Bank calls lower middle-income status in 2009, with per-capita income having increased more than 10-fold since the ruling Communist Party started market-oriented reforms in 1986. The people who go into a Starbucks may want to show that they are modern and stylish and a coffee lover will go to them instead. Even though Starbucks has been very successful internationally, it is facing particular problems in the Vietnam market.Â. The civet coffee is considered a delicacy. Lee and Nguyen (2017) conducted a study to examine important product traits in purchasing decisions for American brands versus local fashion brands revealed by Vietnamese consumers.  The finding showed that consumers value subjective standards, and symbolic attributes such as the latest fashion, country of origin, and popular brands.  Even though local businesses are advantages to lower prices, American brands can better compete by actively promoting their brands, offering quality products, and having the right marketing campaign (Lee & Nguyen, 2017).  Indeed, Vietnamese buyers find that foreign brands from developed countries are more attractive, higher quality, and more reputable than local brands (Dao & Heidt, 2017).  However, western companies like Starbucks are facing copyright infringement.  Nguyen states that copyright enforcement in Vietnam has become challenging as the violation of copyright rate is high.  Shopfronts that appear to be rip-offs of famous brands like Starbucks are not challenging to find.  Fake stores like Sunbucks in Ho Chi Minh city or Wumart in Shanghai are examples of violations.  Such lack of brand awareness causes customers are more likely to systematically reprocess information and allow those kinds of unethical businesses to compete unfairly against foreign brands that have been massive investment and effort put into building their brands (Sun, Zheng, Su & Keller, 2017). We're here to answer any questions you have about our services. Information in this assignment should not be used to form the basis for any kind of financial or investment advice, as the content may contain inaccuracies or be out of date.. 4316 words (17 pages) Business Assignment, 4th Nov 2020 They’re a neighborhood gathering place which has become a part of their daily routine. Starbucks will be seeking to compete with local rivals in a country known for its strong cafe culture. We're here to answer any questions you have about our services. He plans to increase the number of cafes in Vietnam to 200 in the next two years. Vietnam's economy is the fastest-growing in the world, with a 7.1% GDP steady growth in 2019.  As Vietnam grows and incomes rise, so the desire for a better life deepens.  Young people crave way of life and need places where they come together to talk and relax.  Vietnam is a lucrative market for coffee companies to exploit and develop their brands.  With the expansion of participation in the Vietnamese coffee market, many other competing companies, such as Coffee Bean and Tea Leaf, Coffee House, and Highland Coffee, began to realize the enormous potential of this market. From just a narrow storefront, Starbucks offered some of the world’s finest fresh-roasted whole bean coffees. On Wall Street, that is, where its shares have been heading south in recent months, bucking the market trend. It also helps create a long‐term supply of the high‐quality beans which they have been carefully blending, roasting and packing fresh for more than 40 years. Starbucks is more than Coffee, they are passionate sources of coffee and everything else that goes with a rewarding coffeehouse experience. Starbucks said it was monitoring the coronavirus situation but is still aiming at an opening in summer 2021. Coffee is not just coffee but more a way of life in Vietnam. This is not an example of the work produced by our professional assignment writers. Business model development: a customer-oriented perspective.Â, Workman, D. (2020). Joints like Starbucks and Coffee Bean and Tea Leaf succeed at higher-priced specialty drinks, while coffee carts focus on their classic offerings at extremely low prices. A regular customer, an electronics salesman Do Thanh Tung, said he is eager to see if Starbucks coffee really is different from the Vietnamese blends he has been drinking since he was 10 years old. The key to all coffee vendors surviving in Ho Chi Minh City may come down to menu offerings. Registered Data Controller No: Z1821391. Companies required to make decisions to attract and retain customers. One local coffee store owner, Nguyen Phi whose shop is located in the chaotic traffic in the roundabout just west of the New World Hotel and of Phi’s newest neighbour and competitor, Starbucks commented that they don’t operate on the same battlefield and belong to two different businesses. They also believe in fostering thriving communities, from the neighborhoods where their stores are located to the ones where their coffee is grown. Starbucks' Entry into Tea-Drinking India.Â, Starbucks.  (2018).  Retrieved from https://stories.starbucks.com/press/2018/starbucks-announces-strategic-priorities/, Sun, L., Zheng, X., Su, M., & Keller, L. (2017). Starbucks said it was monitoring the coronavirus situation but is still aiming at an opening in summer 2021. Over the past few years, the fresh fruit smoothie industry has bloomed into a billion dollar industry. All work is written to order. Culver said Starbucks will price its products in a premium position that is competitive. He developed Trung Nguyen from a shop he founded as a student into a coffee retailer with more than 3,000 employees. The logo is also inspired by the sea, featuring a twin‐tailed siren from Greek mythology. Tran Doan Kim, a business management professor at National University said the coffee chain will attract young Vietnamese who like to be fashionable, live a Western lifestyle and enjoy brand names. According to the company, Starbucks already purchases a “notable amount” of high-quality arabica coffee from Vietnam and are working to buy more. To export a reference to this article please select a referencing stye below: If you are the original writer of this assignment and no longer wish to have your work published on the UKDiss.com website then please: Our academic writing and marking services can help you! According to the company’s website, the coffee roaster discovered enzymes that mimic civet digestion and developed a process to give the coffee the same “magical flavor. Copyright © 2003 - 2020 - BusinessTeacher.org is a trading name of All Answers Ltd, a company registered in England and Wales. A study was conducted on Starbucks's regular customers reveals that they have a unique cultural experience with the company (Talpau & Boscor, 2011). Coffee Concepts (Vietnam) Ltd., a Hong Kong Maxim’s Group subsidiary, will operate Starbucks Ho Chi Minh City store in Vietnam, and its first store will be in the city’s business district. The factors affect consumer purchasing behavior of Vietnamese branded coffee products in Hanoi city. Their customers enjoy quality service, an inviting atmosphere and an exceptional cup of coffee. John Culver, president of the company’s China and Asia Pacific region, said in a telephone interview that Starbucks will grow aggressively in Vietnam and there will be hundreds of stores for Starbucks though he didn’t give a time frame for the expansion. Retrieved from http://repository.vnu.edu.vn/handle/VNU_123/67911, Qian, Y & Xing, T. (2016) Starbucks VS Chinese Tea—Starbucks Brand Management Strategy Analysis in China.  Retrieved from http://dx.doi.org/10.3968/8197, Rajasekaran, R. (2015). According to an annual report by USDA Foreign Agricultural Service, in 2019, Vietnam is the second-largest coffee producer and exporter in the world, with more than 30.5 million bags of coffee has been produced.  The forecast growth rate is higher than 8% a year and expecting to increase steadily over the next five years.  Domestic consumption will also increase to 3.4 million bags, which is about 10 percent of total coffee production.  Vietnamese people are proud of their traditional robust, dark brew coffee. (NaturalNews) Starbucks, the coffee shop that is renowned for its seemingly limitless coffee varieties, is opening a new chain of juice bars in response to the growing health trend towards unprocessed and whole foods. (“Starbucks Coffee Company”) Starbucks have always believed in serving the best coffee possible and it is their goal for all of their coffee to be grown under the highest standards of quality, using ethical sourcing practices. Copyright infringement in Vietnam: recognizing the reasons and suggesting some solutions.Â, Pham, T. (2020). There are more than 30 blends and single‐origin premium coffees and Handcrafted Beverages which include fresh‐brewed coffee, hot and iced espresso beverages, Frappuccino® coffee and non‐coffee blended beverages, smoothies and Tazo® teas. Designers look at every aspect, such as nearby buildings, urban features, and try their best to integrate Starbucks into local structures. Starbucks has far less coverage than in regional countries. Back then, the company was a single store in Seattle’s historic Pike Place Market. Vu said he intends to build a “coffee empire” and a global brand within the next 10 years, rivaling Starbucks. “Starbucks is deeply respectful of Vietnam… Vu won a medical degree before starting his roasting business. While Starbucks - and other Western cafes - dispensing drinks from arabica and their beverage menus do not have the favorite beverages of Vietnamese consumers, local coffee chain stores in Vietnam have a good understanding of the local customers and better adapt to the market.  Local cafes are flexible in changing their menus to follow trends that are becoming popular among their target customers.  For example, Highlands Coffee and The Coffee House have added bubble tea, a popular drink among young people in Vietnam. He said that the company is also considering an initial public offering and the timing has yet to be decided. And both Phuong and Nga love the taste of Starbucks and accept the price. Reference this. (“Starbucks Coffee Company”) Today, Starbucks connect with millions of customers every day with exceptional products and nearly 18,000 retail stores in 60 countries. Phuong added that Starbucks has so many things like Cappuccino that other local coffee stores don’t have. Lee, Y., & Chau, M. (2019). Traditional Chinese furniture is suitable for small, elegant western bars, such as cafes and Chinese beverages and drinks, beautiful curtains, glasses, and old books. Study for free with our range of university lectures! Highlands Coffee stores, with overhead music and Wi-Fi Internet, are located in prime retail and landmark locations in Vietnam’s largest cities. They are proud to offer two landmark programs for their partners: comprehensive health coverage for eligible full‐ and part‐time partners and equity in the company through Bean Stock. John Culver, president of Starbucks China and Asia Pacific, tells AsiaLIFE that Starbucks is deeply respectful of Vietnam’s long and distinctive local coffee culture and they know coffee is a national pride for many Vietnamese and as such, Starbucks look forward to contributing and growing Vietnam’s already vibrant coffee industry. 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