***

INS 3042-03
INTERNATIONAL MARKETING
FINAL REPORT

Topic:
MARKETING PLAN FOR HIGHLANDS COFFEE
IN KOREA

Lecturer: HO NGUYEN NHU Y

VU MINH QUAN
Class: INS 3042-03
Group: 06
Students: Nguyen Thi Phuong Hien
Luong Thi Ngoc Anh
Nguyen Thi Phuong Nhung
Nguyen Thi Thanh Hang
Nguyen Minh Son

Hanoi, Nov 25th, 2023

Contents
INDIVIDUAL CONTRIBUTION ...................................................................................................................................................... 3
EXECUTIVE SUMMARY ................................................................................................................................................................ 4
Part 1: OVERVIEW OF HIGHLANDS COFFEE ............................................................................................................................. 5
1. Introduction ................................................................................................................................................................. 5
2. Product Solution .......................................................................................................................................................... 6
3. Mission .......................................................................................................................................................................... 6
4. Vision ............................................................................................................................................................................ 6
5. Porter's five forces ....................................................................................................................................................... 7
Part 2: MARKETING PLAN............................................................................................................................................................ 10
I. Current Marketing Situation Analysis ......................................................................................................................... 10
1. Macro environment ................................................................................................................................................... 10
2. Micro environment .................................................................................................................................................... 12
3. Opportunities ............................................................................................................................................................. 13
4. Threats ........................................................................................................................................................................ 13
II. Objective and Goal ......................................................................................................................................................... 14
1. SMART Objective ..................................................................................................................................................... 14
2. SMART Goal.............................................................................................................................................................. 15
III. Opportunity analysis SWOT Model analysis .......................................................................................................... 17
1. Strengths: ................................................................................................................................................................... 17
2. Weaknesses ................................................................................................................................................................. 17
3. Opportunities ............................................................................................................................................................. 18
4. Threats ........................................................................................................................................................................ 18
IV. Marketing Strategy.................................................................................................................................................... 18
1. Demand of coffee in Korean ..................................................................................................................................... 18
2. Segmentation .............................................................................................................................................................. 19
3. Target strategy ........................................................................................................................................................... 20
4. Positioning .................................................................................................................................................................. 21
V. Marketing Mix (4Ps) ....................................................................................................................................................... 21
1. Product ....................................................................................................................................................................... 21
2. Price ............................................................................................................................................................................ 22
3. Place ............................................................................................................................................................................ 23
4. Promotion ................................................................................................................................................................... 24
VI. Budget ......................................................................................................................................................................... 26
VII. Action Program.......................................................................................................................................................... 26
CONCLUSION ................................................................................................................................................................................. 27
REFERENCE .................................................................................................................................................................................... 28

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 INDIVIDUAL CONTRIBUTION

Name Student ID Contribute

Nguyen Thi Phuong Hien (Leader) 20070713 21%

Luong Thi Ngoc Anh 20070677 21%

Nguyen Thi Phuong Nhung 20070767 20%

Nguyen Thi Thanh Hang 19071356 18%

Nguyen Minh Son 20070785 20%

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 EXECUTIVE SUMMARY

Highlands Coffee is a famous Vietnamese coffee brand, with more than 300 stores nationwide.
The brand is aiming to expand its market abroad, of which Korea is a potential market. Korea is
currently a developed country with strong capacity in capital, science and technology, deeply
involved in the global value chain, and is in need of a large, young market to continue its
development momentum. Meanwhile, Vietnam is a reforming, dynamic and proactive country
integrating internationally. These are advantages for the two countries to expand investment
cooperation. Business cooperation and people-to-people exchanges are a solid bridge for the two
countries' relations to continue to develop.
Highlands' marketing development project in the Korean market aims to expand and strengthen
the position of this famous Vietnamese coffee brand. The strategy focuses on thorough market
research, compatibility with local culture, and creating diverse products to meet the diverse
needs of Korean customers. At the same time, creative promotional campaigns and partnerships
with local celebrities are expected to increase brand awareness. Expanding the store network and
collaborating with strategic partners are important steps to optimize distribution channels.
Evaluating performance through key indicators will help adjust strategy over time, bringing
success and stability in the Korean market. Highlands Coffee promises a lot of development
potential because high economic growth combined with the introduction of Western lifestyles
has made coffee a favorite drink of Korean youth and Korean consumers. Country in general.

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Part 1: OVERVIEW OF HIGHLANDS COFFEE
1. Introduction
1.1. The history of company
Highlands Coffee is a brand of Viet Thai International Joint Stock Company (VTI). Viet Thai
International is a 100% Vietnamese joint stock company. The main office is located in Hanoi and
the transaction office is located in Ho Chi Minh City. Established in 1998 and focusing only on
packaged coffee, in 2002, the first Highlands Coffee coffee shop was officially launched. The
company quickly developed and expanded into a famous coffee shop brand. reputation and
constantly expanding its activities domestically and internationally. Currently, Highlands Coffee
is owned by Jollibee with more than 300 stores, the number 1 franchised brand in Vietnam.
Currently, Highlands Coffee still maintains manual coffee sorting to select each quality coffee
bean. Best of all, coffee is freshly roasted every day and served to customers with a bright smile
on their lips. The secret to Highlands Coffee's success: great space, excellent products and
attentive service at reasonable prices.

1.2.Meaning of brand logo

The Highlands Coffee logo has a distinct highlight that helps customers remember and easily
recognize it. Inspired by the symbols of mountains, land and flows in the highland area, the
image serves as the company's affirmation of product origin or quality. Regarding the use of
color, brown in the design is the color of the soil, also the color of coffee beans. Red symbolizes
passion, white brings purity and sophistication. The choice of logo and brand name reminiscent
of mountains and hills makes Vietnamese customers feel familiar. At the same time, it is also a
way to promote the country's image to international friends.

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1.3. Slogan
Highlands Coffee understands the spirit of national pride in every Vietnamese child. Therefore,
each brand slogan used emphasizes this element:
• "Proud to be born from Vietnamese land".
• "The high place is not in the physique - It's in the wide perspective."
• "The rich place is not only about silver and gold, but also about the country's proud
heritage."
• "Where pride surges in the blood to carry into the coffee."

2. Product Solution
Highlands Coffee is a Vietnamese coffeehouse chain that offers a variety of coffee-based
beverages and snacks.

• Coffee Varieties: Highlands Coffee typically serves a range of coffee varieties, including
traditional Vietnamese coffee, espresso-based drinks like cappuccinos and lattes, and iced
coffees. They may also offer single-origin coffees or specialty blends.
• Traditional Vietnamese Coffee: a popular choice at Highlands Coffee is the traditional
Vietnamese coffee, often made with Robusta beans and brewed using a metal drip filter
called a Phin. It is typically served with condensed milk, resulting in a rich and sweet
flavor.
• Iced Coffee: Given Vietnam's warm climate, iced coffee is a favorite choice. Highlands
Coffee may serve iced versions of their coffee offerings, such as iced Vietnamese coffee or
iced lattes.
• Blended Coffee Drinks: Highlands Coffee might offer blended coffee drinks, where coffee
is combined with ice, milk, and flavorings like chocolate or caramel to create a refreshing
and indulgent beverage. Popular options include blended mochas or Frappuccino.
• Non-Coffee Beverages: In addition to coffee, Highlands Coffee often provides a selection
of non-coffee beverages. These may include teas, fruit juices, smoothies, or other specialty
drinks.
• Snacks and Pastries: To complement their beverages, Highlands Coffee typically offers a
variety of snacks and pastries. These might include sandwiches, cakes, cookies, or
traditional Vietnamese treats like banh mi (baguette sandwiches) or banh bao (steamed
buns).

3. Mission
Mission: Highlands' goal is to establish Highlands as a brand that represents both the continent
and the globe, with the heart at its center, championing deliciously affordable modern
Vietnamese coffee and cafe lifestyle experience. This is accomplished by bringing the finest of
the world to Vietnam and the best of Vietnam to the world. Vietnamese values and soul When it
comes to larger-scale growth, that is Highlands.

4. Vision

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Highlands' vision is to become the leading Vietnamese coffee brand in the Vietnamese market.
Highlands creates an effective franchise opportunity for Vietnamese people, using raw materials
from Vietnamese soil to honor the unique culture of "phinning" and serving Vietnamese people.

5. Core values

• Be proud and share with the community about Vietnamese land

• Always keep your passion burning
• Respect and integrity in business
• Promote the spirit of cooperation
• Pay attention to customers

6. Porter's five forces

6.1. The threat of newcomers
• Increasing competition: As Korea's coffee industry expands, more domestic and foreign
coffee businesses will want to get into the market and fight for consumers. This offers
additional options and marketing funding that may draw clients away from Highlands.
• Novel formats/experiences: To adapt to shifting consumer tastes, newcomers may test out
novel shop layouts, digital/mobile experiences, delivery methods, etc. In order to stay up,
Highlands would also need to innovate.
• Brand recognition: Well-known international companies, such as Starbucks, have a far
greater level of brand awareness, which initially draws in customers. Highlands would
require aggressive marketing to launch and set itself apart from well-known rivals.

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 • Pricing pressure: In order to swiftly capture market share, larger multinational competitors
may choose to use special pricing or discounts; without these scale advantages, Highlands
may find it difficult to match these tactics over the long run.
• Access to the supply chain: International chains may benefit from the ability to source
reliable and consistent coffee beans from a global source. Highlands would have to have
strong sourcing practices to compete with larger rivals' diversity and supply.
• Capital resources: Well-funded new competitors might enter the market and aggressively
grow the number of outlets they run by franchising or opening company-owned locations.
Highlands could find it difficult to maintain the rate of expansion of additional stores.

6.2. Threat of substitutes

• Tea culture: Drinking tea is quite popular in Korea. Specialty teas might be utilized in its
place, particularly for local clients who aren't accustomed to drinking coffee.
• Ready-to-drink coffee: Canned or bottled coffee items that are ready to drink provide
excellent alternatives.
• Independent cafés: Specialty coffee and unique experiences are the main draws of small,
independently owned cafes, which are growing quickly. They provide alternatives to the
typical Highlands encounter.
• Food-based cafes: By combining coffee with other treats, cafes with a stronger emphasis on
food and/or baking provide alternatives to traditional beverage establishments.
• Home brewing: With better tools and expertise, consumers may manufacture high-quality
coffee alternatives at home rather than purchasing it elsewhere.
• Energy drinks: Those looking for quick bursts of caffeine instead of leisurely coffee shop
encounter products like Red Bull as alternatives.
• Social media/gaming: Online alternatives to café hangouts, such as video games,
streaming, etc., are in competition for consumers' free time.
• Shifting work styles: Remote and flexible work minimizes the need for frequent coffee
shop trips compared to office-based routines.

6.3. Bargaining power of customers

• Increasing competition: As more coffee shops open up shop in Korea, consumers have
more options and can quickly switch brands depending on little variations in cost or quality
of service.
• Brand/product differentiation: Customers may consider Highlands' chains to be
interchangeable with other brands if the company's goods are not significantly different or
unique. Highlands' capacity to demand high pricing is weakened by this.
• Location is important: Consumers can select stores depending on how conveniently located
they are. Highlands has to be at strategic locations to draw in a lot of passing trade.
• Modest switching costs: Customers may easily switch to a new chain at a modest trial cost
from their usual coffee shop. Highlands needs to keep drawing in and keeping clients.

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 • Mobile and delivery alternatives: As online platforms expand, consumers have access to
more convenient ordering methods, which gives them a stronger advantage over physical
retailers.
• Price sensitivity: When it comes to commoditized coffee items, Korean consumers could be
quite price sensitive. Highlands has to weigh price competitiveness against luxury
positioning.

6.4. Bargaining power of suppliers

Bargaining power of supplier is the negotiating power of the supplier. In the case of Highlands
Coffee when it wanted to enter the Korean market, we assessed the supplier's negotiating power
at an average level.
Some factors that impact the negotiating power of suppliers that we rely on to evaluate include:
• Supplier concentration: The coffee market in Korea is booming and it is likely that supply
will exceed demand. The number of coffee shops is increasing rapidly, so retaining
customers requires many factors.
• Substitutions: If there are many substitute products or services available, the bargaining
power of the supplier will be low.
• Importance of the product or service to the customer: If the supplier's product or service is
important to the customer, then the supplier's bargaining power will be high.
In the case of Highlands Coffee, Korea is a large and developed market with high demand for
coffee consumption. However, this market also has many domestic and international coffee
suppliers. Additionally, coffee is a popular product and there are many different substitutes.
Therefore, the bargaining power of coffee suppliers for Highlands Coffee is at an average level.

6.5. Competitive rivalry

Competitive rivalry is the level of competition between businesses in the same industry. In the
case of Highlands Coffee when it wants to enter the Korean market, the level of competition is
considered high.
Some factors that impact the level of competition include:
• Number of competitors: There are many domestic Korean coffee companies and coffee
companies from abroad. Cong Coffee of Vietnam is a typical example, they have had
certain success here.
• Similarities between products or services: Requires Highlands Coffee to make every effort
to create enough difference to retain customers.
• Level of profit difference: profits in the industry are considered high, so businesses will
have stronger competitive motivation.
In the case of Highlands Coffee, Korea is a highly competitive market with the presence of many
famous coffee brands such as Starbucks, Coffee Bean & Tea Leaf, and Ediya Coffee. In addition,
this market also has many domestic coffee brands that are growing strongly. Therefore, the level
of competition that Highlands Coffee faces in the Korean market is considered high.

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Part 2: MARKETING PLAN
I. Current Marketing Situation Analysis
1. Macro environment
1.1. Demographic
The Korean population aged 15-64 accounts for 71.4%, which shows that this is an advantage for
Highlands Coffee to penetrate the market. Because Korea's main coffee consumers are students,
many types of coffee shops are concentrated around school areas. The rapid increase in the
number of coffee shops not only vividly demonstrates the increase in the scale of the business,
but also shows the Korean people's love for coffee and enthusiasm for creating their own coffee
culture. .
In addition, Koreans love going to coffee shops, about 50% of people aged 20-60 interviewed
said they go to coffee shops on average 3-4 times a week.

1.2. Economical
Covid-19 has caused a shock to the economies of all countries in the world and pulled South
Korea's economic growth rate in the second quarter of 2020 to its lowest level since the financial
crisis of 2020. 1998.
However, after 1 year, in the second quarter of 2021 (from April to June), the Korean economy
grew by 0.7% thanks to a strong recovery in private consumption.
Korea's GDP per capita (GDP/person) is 31,489 USD/person in 2020. Korea's GDP per capita
growth rate reached -1.09% in 2020, down -357 USD/person compared to figure of 31,846
USD/person in 2019. Korea's GDP per capita in 2021 is expected to reach 31,174 USD/person if
the Korean economy maintains the same GDP growth rate and population level as last year.
The Korean economy is growing steadily, with an average GDP growth rate of about 3% in
recent years. This creates opportunities for businesses, including Highlands, to expand their scale
and market share. In addition, Korea is an open economy, with extensive trade relations with
countries around the world. This helps Highlands reach more potential customers.

1.3. Natural
South Korea is located on the Korean Peninsula, a peninsula stretching 1,000 km from north to
south, in the northeastern part of the Asian continent, where its waters meet the westernmost part
of the Pacific Ocean. The north of the peninsula borders China and Russia. To the east of the
peninsula is the East Sea, and beyond is neighboring Japan. In addition to the main peninsula,
there are more than 3,200 small islands.
The total area of the Korean peninsula is 222,154 km2.
Cultivated land area is 99,617 km2, accounting for 45% of the total area, mountainous terrain
accounts for 2/3 of the territory.
Korea is bordered on three sides by the sea, surrounded by the Yellow Sea to the West, the East
Sea to the East and the South Sea to the South. The South and West of Korea are mainly plain

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terrain, the East and North are mountainous terrain. Korea's highest mountain is Bach Dau Son
Mountain (2,744m).
Although the area is quite large, due to the characteristics of the soil type as well as the way to
keep the fresh flavor of the coffee, the quality is not high, the unique flavor is not the same as
that of Vietnam, so even though a lot of coffee is grown, coffee in Korea China still cannot
surpass our country's coffee. Therefore, despite having a large coffee growing area, Korea still
imports delicious coffee from other countries to serve the increasingly demanding needs of
consumers.

1.4. Technological
The country of Korea is now known to the world as a Science and Technology powerhouse,
famous for Samsung smartphones, the world's highest Internet connection speed, and outstanding
creative capacity. Korea focuses on investing in Science and Technology. Among them is the
Institute of Science and Technology
Korea Institute of Science and Technology (KIST) was founded in 1966 and is one of the world's
top 10 technology application bases. With Vietnam's advanced coffee production and processing
technologies combined with Korea's technological environment, Highlands Coffee Company has
complete advantages in terms of technology and technology to produce and export coffee.

1.5. Legal Policy

The Korean government has a stable and business-friendly economic policy. This creates
favorable conditions for Highlands' business activities. In addition, Korea's legal system is
considered transparent and fair. This helps Highlands minimize legal risks when doing business
in Korea.
However, some regulations of the Korean government may cause difficulties for business
operations of foreign enterprises, including Highlands. For example, the Korean government has
regulations on the ratio of foreign workers in businesses. This regulation may make it difficult
for Highlands to recruit and employ foreign workers.

1.6. Cultural – Sociality

Like many other Asian countries such as China, Japan, India, the people of the land of Kimchi
learned about coffee quite late compared to the "cradles" of coffee in the world. It was not until
the reign of King Gojong (around 1800) - a man with a special love for coffee - that this drink
was used in the royal court and began to be popular among the people. Thus, it can be affirmed
that Coffee culture is a continuation but does not repeat the essence of the tea ceremony. Coffee
is a drink for all classes, helping people get closer together.
In modern Korean society, the most common social conversation is not "Let's talk" but "Let's
find a coffee shop." Coffee culture in Korea is always associated with conversations, discussions
and exchanges between people. Korean style coffee with friendly, open, approachable and

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sophisticated characteristics. Furthermore, Koreans also pay great attention to physical beauty.
Coffee that suits your taste is not enough, you also have to decorate it beautifully and skillfully.
Most Koreans like milk coffee, even a lot of milk, creating aroma and fatty taste, but the
sweetness must be harmonious. That is the sophistication of Korean coffee culture. Perhaps that
taste is a bit similar to Americans, because Korea receives many influences from America, not
just coffee culture. If Americans prefer big-sized paper coffee cups with mainly bland flavors,
Koreans are not like that. They prefer elegance, gentleness and comfort. Coffee is for enjoying,
not drinking until full like American style. Therefore, this is still a promising destination for
Highlands Coffee to enter the Korean coffee market.
In terms of design, Korean coffee shops often follow the coffee shop trend with glass doors, cozy
atmosphere and lighting, helping to take advantage of natural light and expand the space. This
style brings a modern feel, often office workers love such spaces. Quiet enough to enjoy coffee,
just poetic enough to watch the street and passersby through the glass windows. In particular,
Highlands Coffee's decoration style is very suitable for the preferences of the people here.
Korean people's coffee taste is like a neutral color when compared to the coffee taste of some
countries. It's not too rich or strong like pure coffee, nor is it bland like instant coffee. Instead,
the combination of moderately bitter and fragrant coffee, sweet and slightly fatty milk creates
attractive and easy-to-drink lattes, suitable for almost everyone from students to students.
students, officials, businessmen and other classes.

2. Micro environment
2.1. Competitor
The Korean coffee market is fiercely competitive, with the participation of many businesses,
including domestic coffee businesses and international coffee businesses. Highlands' main
competitors in the Korean market include:
• Starbucks
• Costa Coffee
• Ediya Coffee
• Coffee Bean & Tea Leaf
• Twosome Place
These competitors have strong financial potential, many years of experience in the coffee
industry, and an extensive store network. Highlands needs an effective competitive strategy to
compete with these competitors.

2.2. Customers
Highlands' customers in the Korean market include many different groups, from young people to
middle-aged people, from office workers to students, with the average age that Highlands targets
is 18-50 years old. Korean customers tend to be interested in products with high quality,
reasonable prices, and comfortable spaces. Highlands needs to understand the needs of Korean
customers to better meet their needs.

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2.3. Suppliers
Highlands Coffee, a lifestyle brand, is committed to providing consumers with the most premium
coffee experiences possible. Highlands Coffee always focuses on building good cooperative
relationships with suppliers to ensure a stable supply of raw materials and reasonable prices.
Highlands Coffee also regularly evaluates the product and service quality of suppliers to ensure
they meet Highlands standards. All steps are performed strictly and to the right standards to
achieve that. From choosing the best coffee beans to roast to setting up a cozy and stimulating
environment for coffee consumption. Highlands Coffee partners exclusively with trusted sources
to source the highest grade A coffee beans, demonstrating their dedication to quality from the
beginning of the coffee bean purchasing process. Product samples are then tested in the
laboratory to ensure compliance with strict regulatory requirements. Once inside the warehouse,
staff will identify and remove poor quality seeds. The quality of a cup of coffee can be
completely ruined just because of one bad coffee bean left behind.
Highlands Coffee in Korea has cooperative relationships with many suppliers, including raw
material, packaging, and service suppliers. Highlands Coffee uses Arabica and Robusta coffee
grown in Vietnam and other countries around the world, uses pure Korean fresh milk and
toppings imported from other countries around the world. The plastic and glass cups and mugs
that Highlands uses are made in Korea, and the paper packaging is made in Vietnam.

3. Opportunities
• The Korean coffee market is growing strongly with an average growth rate of about 5% in
recent years. This creates opportunities for Highlands Coffee to expand its scale and market
share in this market.
• Korean consumers tend to be interested in high quality coffee products, produced from good
raw materials. This is consistent with Highlands Coffee's brand positioning as "high quality
coffee".
• Highlands Coffee is a famous coffee brand in the Vietnamese market. This gives Highlands
Coffee an advantage when entering the Korean market.

4. Threats
• The Korean coffee market has the participation of many large businesses, including
domestic coffee businesses and international coffee businesses. This creates challenges for
Highlands Coffee in competing.
• Korean consumer tastes are changing rapidly. This requires Highlands Coffee to be flexible
in adjusting products and services to meet customer needs.
• Economic, political, and social factors in Korea may affect Highlands Coffee's business
activities. For example, an economic downturn may reduce demand for coffee, or changes in
legal regulations may cause difficulties for Highlands Coffee's business operations.

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II. Objective and Goal
1. SMART Objective
Highland Coffee, a well-known coffee chain, has set its sights on entering the Korean market. To
ensure a successful entry and establish a strong presence, Highland Coffee has defined clear
objectives and goals.

1.1. Specific objectives

• Launch a specialty coffee chain in Korea within 1 year via a joint venture with ABC Foods
Co., a leading domestic cafe operator
• Open flagship stores in Seoul, Busan, and Daegu with at least 5 additional locations across
other major cities within 2 years.

1.2. Measurable goals

• Achieve annual sales of $1 million in year 1, $2 million in year 2, $3 million by year 3
from Korean operations
• Obtain a 5% market share in the specialty coffee shop segment within the first 5 years of
launch.

1.3. Achievable targets

• Sign a joint venture agreement and establish a local operating entity within 6 months of
market scoping
• Secure prime high street retail spaces for flagship stores through partner's industry
connections
• Onboard 200000 loyalty members on partner's existing reward programs within 2 years.

1.4. Relevant objectives

• Expand customer base and trial globally recognized Vietnamese coffee in East Asia
• Leverage the partner's local infrastructure and supply chain to minimize investment risks.

1.5. Time-bound goals

• Conduct market research and financial feasibility within 3 months
• Complete store designs incorporating local preferences within 6 months
• Launch innovative social media campaigns within 1 year leveraging partner's influencer
networks
• Attend 2 major F&B trade shows annually to showcase the brand and cultivate B2B
customers

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 • To achieve these clearly delineated SMART objectives, Highland Coffee has allocated an
initial budget of $500,000 for the joint venture. The company's experienced CEO will lead
operations together with 2 local hires including a Marketing Head.
• Flagship stores will focus on comfortable in-store experiences highlighting sustainable
Vietnam sourcing alongside new product launches every season. A rewards app targeted at
millennial users will integrate payments and loyalty programs.
• The joint venture partner ABC Foods brings crucial capabilities around real estate access,
supply chain management, logistics, and an existing customer base of 1 million loyalty
members.
• Together with optimized above-the-line promotions crafted by specialized agencies, these
efforts aim to quickly saturate major cities and establish Highland Coffee as a credible cafe
brand offering an 'Instagrammable' coffee experience.

2. SMART Goal
Increase Highland Coffee's market share in the Korean coffee market by 10% within the first
year of operation. Increase brand awareness of Highland Coffee among the target audience in
Korea by 20% within six months. Increase customer satisfaction ratings for Highland Coffee in
Korea to an average of 4 out of 5 within one year.

2.1. Specific goals

• Launch the first cafe in Seoul by Q2 2023 through a joint venture partnership with ABC
Foods, a leading Korean F&B operator
• Open flagship stores showcasing Vietnamese coffee culture in Seoul, Busan, Daegu, and 3
additional major cities by 2025
• Increase Highland Coffee's market share in the Korean coffee market by 10% within the
first year of operation.
• The objective is to enhance brand awareness, which refers to the level of familiarity and
recognition of Highland Coffee among the target audience in Korea.
• Increase customer satisfaction ratings for Highland Coffee in Korea to an average of 4 out
of 5 within one year.

2.2. Measurable targets

• Achieve KRW 3 billion (USD 2.3 million) annual sales by 2025 through a network of 15
company-owned stores
• Obtain 10% market share in the specialty coffee segment within Seoul by 2025
• The goal is to achieve a 10% increase in market share, which can be measured using sales
data and customer surveys.
• The goal is to achieve a 20% increase in brand awareness, which can be measured through
surveys, social media engagement, and website traffic.

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 • The goal is to achieve an average customer satisfaction rating of 4 out of 5, which can be
measured through customer feedback surveys and online reviews.

2.3. Achievable milestones

• Sign joint venture agreement and establish local subsidiary by Q1 2023
• Roll out loyalty program integrated with partner's existing customer database of 500,000
members by 2024
• A 10% increase in market share is a realistic goal considering Highland Coffee's brand
reputation and the growing demand for coffee in Korea.
• A 20% increase in brand awareness is attainable through targeted marketing campaigns,
collaborations with local influencers, and strategic partnerships.
• Improving customer satisfaction to an average rating of 4 out of 5 is achievable through
staff training, personalized customer service, and continuous improvement of product
quality.

2.4. Relevant objectives

• Introduce Highland Coffee to new Korean customers and drive trial through unique
brewing techniques and flavors
• Leverage partner ABC Foods' local expertise, resources, and over 15 years of cafe
operations
• Increasing market share is directly aligned with Highland Coffee's business growth strategy
in the Korean market.
• Enhancing brand awareness is crucial for attracting new customers and building a strong
customer base in the Korean market.
• Customer satisfaction is crucial for customer retention, positive word-of-mouth, and long-
term success in the Korean market.

2.5. Time-bound goals

• Conduct market research and feasibility study within 6 months of scoping Korea
opportunity
• Develop customized store designs reflecting local tastes by Q3 2023
• Launch a multi-channel brand campaign with the partner's 1st influencer networks by Q2
2024
• Attend the Korea Food Show annually to strengthen B2B ties with importers and
distributors
• The goal is to achieve this increase within the first year of operation, providing a specific
timeframe for evaluation.
• Customer satisfaction is crucial for customer retention, positive word-of-mouth, and long-
term success in the Korean market.

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 • The goal is to achieve this average rating within one year, providing a specific timeframe
for evaluation.

III. Opportunity analysis SWOT Model analysis

1. Strengths:
• Brand Recognition: Highland Coffee is a well-known brand with a strong presence in the
coffee market. Its reputation for quality and unique offerings can give it an advantage over
competitors. Strong brand presence and recognition in the Korean market.
• Product Differentiation: Highland Coffee offers a wide range of coffee products, including
specialty blends and unique flavors. This diversification can attract diverse customer
segments and cater to different preferences.
• Store Locations: Highland Coffee has strategically located stores in prime areas, such as
busy shopping districts and commercial centers, which can attract a large customer base.
• Quality Control: Highland Coffee maintains a high level of quality control throughout its
supply chain, ensuring that customers receive consistently good coffee.
• Customer Loyalty: Established customer loyalty programs and a dedicated customer base.

2. Weaknesses

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 • Limited Market Share: Highland Coffee faces strong competition from both local and
international coffee chains in Korea. Its market share may be relatively small compared to
dominant players.
• Pricing: Highland Coffee's pricing may be perceived as higher compared to some
competitors, potentially limiting its appeal to price-sensitive customers.
• Limited Menu: While the focus on coffee is a strength, Highland Coffee's menu may lack
diversity compared to competitors that offer a wider range of food and beverage options.
• Limited Brand Awareness: Despite its reputation, Highland Coffee's brand may not be as
well-known among Korean consumers as some of its competitors, leading to lower
customer recognition.

3. Opportunities
• Growing Coffee Culture: Korea has a growing coffee culture, with an increasing number of
consumers embracing specialty coffee. Highland Coffee can tap into this trend by offering
unique blends and emphasizing its expertise in coffee.
• Online Ordering and Delivery: The rise of online platforms and delivery services presents
an opportunity for Highland Coffee to expand its reach and convenience by offering
delivery options and online ordering.
• Expansion into New Locations: Highland Coffee can consider expanding its presence in
other key cities or regions in Korea that may have untapped market potential.
• Collaboration with Local Partners: Partnering with local suppliers or brands can help
Highland Coffee incorporate local flavors and ingredients, appealing to the preferences of
Korean consumers.

4. Threats
• Intense Competition: The coffee market in Korea is highly competitive, with both local and
international chains vying for market share. Competitors may offer similar products,
pricing, or more extensive menus, posing a threat to Highland Coffee's market position.
• Changing Consumer Preferences: Consumer preferences and trends can shift rapidly, and
Highland Coffee needs to stay attuned to evolving tastes and preferences to remain relevant
and meet customer expectations.
• Economic Factors: Economic fluctuations, such as recessions or changes in disposable
income, can impact consumer spending and affect Highland Coffee's sales and profitability.
• Regulatory Environment: Changes in regulations related to food safety, labeling, or labor
laws can impact Highland Coffee's operations and increase compliance costs

IV. Marketing Strategy

1. Demand of coffee in Korean

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Coffee consumption is linked to work productivity. To cope with workload and stress, people
drink coffee every day. It also promotes creativity and focus and provides instant energy.
Due to the busy pace of life, people increasingly choose cafes with quick service and quality
delivery services. Because of their constant search for new restaurants and cafes, Millennials and
Generation Z make for great demographic targets. Finding new, branded coffee shops or the
store's achievements will come easily to them.
The Korean Council of National Consumer Organizations recently said that the daily coffee
consumption and monthly coffee costs of 70% of Korean adults are at least one cup and 103,978
won, respectively. In its survey, 12.2% of respondents said they drink coffee 5 to 6 times a week
and 8% and 4% mentioned 3 to 4 and once or twice, respectively.

2. Segmentation
2.1. Demographic segmentation
Highland Coffee can target the Millennial and Gen Z demographics, which show a strong
preference for coffee consumption.
In addition, middle-aged people under 55 years old also consume coffee very strongly due to
their high need for concentration at work and their coffee drinking habits have been formed over
a long period of time.

2.2. Psychographic segmentation

Highland Coffee can meet the growing demand for ethically and sustainably sourced products. A
Nielsen study found that 73% of global consumers are willing to pay more for sustainable and
environmentally friendly products. This aligns with the values of health-conscious individuals
who prioritize organic and sustainable food and beverage options.
The need to use big brand products is also one of the things that will attract Highlands Coffee
customers.

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2.3. Behavioral segmentation
Highland Coffee can target frequent coffee shop visitors, those who appreciate a high-quality
coffee experience, and those who enjoy social networks and regularly update their statuses. This
indicates a significant market of regular coffee drinkers who tend to visit specialty coffee shops.

3. Target strategy
Highland Coffee will position itself as a middle-class coffee brand providing a unique and classy
coffee experience. By focusing on elements such as superior flavor, ethically sourced coffee
beans, and a warm and inviting atmosphere in its cafes, Highland Coffee is able to differentiate
itself from the chains. coffee. Highlands Coffee regularly and positions itself as a destination for
coffee enthusiasts.
Difference:
• Product:
Highland Coffee differentiates itself by offering a wide variety of specialty coffees. It will offer
coffee sourced from Vietnam, highlighting the unique flavors and characteristics of each origin.
It can also introduce limited edition seasonal blends to create excitement and thrill for its
customers. Vietnamese Cuisine is currently a trend and it is very popular with Koreans.
• Media:
To effectively reach its target audience, Highland Coffee will leverage social media platforms
such as Instagram and TikTok, which are popular among Millennials and Gen Z consumers.
Collaborate with influencers and creating visually appealing content to promote coffee services
and cafe experiences, Highland Coffee can increase brand awareness and engagement.
• Distribution channel:
In addition to traditional coffee shops, Highland Coffee may explore online sales and delivery
options. By providing an easy-to-use online ordering system and partnering with food delivery
platforms, Highland Coffee will meet growing consumer demand for convenience and
accessibility.
• Outstanding features of infrastructure:
Highland Coffee can invest in creating unique and Instagrammable interiors for its cafes. By
incorporating aesthetic elements such as cozy seating areas, vibrant murals, and greenery,
Highland Coffee is able to attract customers who are looking for an inviting and visually
appealing environment to hang out in. relax. Enjoy coffee and share on social networks.

By leveraging these specific segmentation strategies and using targeted differentiation tactics,
Highland Coffee is able to attract the attention and loyalty of identified target market segments.
effective. By tailoring its offerings to consumer preferences and trends, Highland Coffee is able
to establish a strong brand presence in the competitive coffee market.

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4. Positioning
When entering the Korean market, Highlands Coffee chose positioning as "Modern Vietnamese
Coffee, imbued with cultural identity". This positioning is based on the following factors:
• Vietnamese Coffee: This is a strength of Highlands Coffee, because Vietnam is a country
with a long coffee tradition and is famous for high quality coffee beans. Highlands Coffee
has taken advantage of this strength to create coffee products with strong Vietnamese
flavors, loved by Koreans.
• Modern: Highlands Coffee is a modern coffee brand, with a youthful, dynamic design,
suitable for the tastes of Korean youth. In addition, Highlands Coffee also regularly
updates new trends in the coffee industry, bringing customers new experiences.
• Cultural identity: Highlands Coffee not only focuses on product quality but also focuses on
preserving Vietnamese cultural identity. This is shown through small details in store
design, menus or brand communication activities.
This positioning has helped Highlands Coffee make a good impression with Korean consumers.

V. Marketing Mix (4Ps)

1. Product

To position and develop the brand, businesses cannot skip the step of strategic planning for
product lines. Continuously creating and improving products with a unique impression can help
the brand become more special in the eyes of consumers. It can be clearly seen that Highlands
Coffee's marketing strategy for products focuses on both drinks and food.
Regarding drinks, Highlands has divided products into 3 main groups:
Group 1: Coffee with Phindile, Espresso, Coffee, in which Iced Milk Filter was chosen as the
main product in this group.
Group 2: Tea with green tea, yellow lotus tea and fruit teas, of which Golden Lotus Tea is the
main product.
Group 3: Freeze (Iced Blend) with Green Tea Freeze as the main product.

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These are 3 product lines that are favored throughout Highlands' marketing campaigns because
they are "best sellers" and bring a huge percentage of revenue to Highlands.
Next, about food products. Highlands divides food into two main lines: Bread and cakes.
In addition to the popular choice in most modern cafes, cakes, Highlands' store also uses bread to
its menu as a link product. Because bread is a familiar dish, the "national soul" of Vietnam.
Bread is also a favorite food of all ages and classes. In addition, this is a dry food that easily
causes thirst. When customers order bread at this store, it always comes with a glass of water. So
choosing bread is considered wise and wise for this brand.
In addition, Highlands Coffee's marketing strategy also includes additional product lines such as
packaged products, canned products, etc. to reach far away customers. Furthermore, this brand
also launches fashionable water bottles and cups to attract young people. At the same time, the
launch of these product lines also encourages customers to bring cups to reduce waste into the
environment.

2. Price

Price is one of the important factors affecting the overall marketing mix strategy and consumer
purchasing decisions. For businesses, prices affect their ability to compete in the market and their
profits.
Highlands' current selling price ranges from 30,000 - 70,000 VND/product. This is considered a
wide price range, suitable for most incomes in Vietnam and in Korea it will range from 7,000 to
10,000 won (about 120,000 to 180,000 VND). Compared to the level of invested coffee brands.
Basically, this price is not really low but not too high either. For customers who are mainly
middle class and have a stable income, it is still acceptable.

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Highlands has also chosen a market-based pricing strategy. Most product lines have prices
suitable for the middle class. However, traditional coffee lines will be sold at a much lower price
of only 7,000 won, so that everyone can access and experience the brand's products.
Besides, with a big brand like Highlands, the cost to make a cup of coffee is not only input
materials but also other costs such as premises, staff costs,... advertising and communication
activities. ,…

3. Place

According to the latest statistics from the National Business Registration Portal, Highlands
Coffee currently has nearly 40 branches distributed throughout the country. The official website
also shows that the system has 505 stores. Of these, Ho Chi Minh City is the most concentrated
place with 176 stores, followed by Hanoi with 124 stores. Highlands Coffee was the earliest
F&B chain to go abroad in 2011 and has more than 39 stores in the Philippines. Index revenue
increases relatively steadily, so the brand has more and more opportunities to expand and
increase market share.
Choosing distribution locations in the marketing mix strategy also helps Highlands reach the
target audience effectively. These are prime locations in big cities, where there is a dense
population, many shopping centers, schools, offices and convenient and accessible transportation
systems.

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In KOREA We will focus on development in the capital Seoul first and then expand to
neighboring cities. The selected cities will be fairly developed cities, typically: Busan, Incheon,
Daegu, Gwangju
In addition, the system's distribution strategy also focuses on brand franchising. This can help
increase brand recognition by increasing the number of stores while minimizing costs. Not to
mention Highlands also distributes additional packaged product lines at convenience stores,
supermarkets nationwide and will be available on Baemin and online food purchasing
applications developed in Korea.

4. Promotion
4.1. Promotion

In Highlands Coffee's Marketing strategy, we will deploy many promotional programs such as
collecting three stamps and getting a bottle of iced milk for free, or free upsize on special
holidays of the year, buying combos with big promotions...
In addition, Highlands will also deploy a membership and VIP card system with special benefits
to maintain customer loyalty.

4.2. PR activities
As a big brand and always orienting the brand towards the high-end segment, Highlands Coffee
still uses plastic cups to serve customers drinks on-site and to-go. This has become a weakness of
Highlands Coffee and caused this brand to receive many criticisms and complaints.
Understanding that opinion, we will launch a campaign called "Green Bracelets" to encourage
customers to bring personal bottles when ordering at the counter. This campaign has received

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many positive comments as well as the participation of many customers at stores that have
applied it.

4.3. Social Media

Taking advantage of the explosion of social networks, especially the world's leading social
network Facebook, Highlands Coffee's Marketing strategy has taken advantage of and
implemented communication activities on these platforms very well. Articles about the brand
when shared on the official fanpage always receive a lot of customer interaction. According to
statistics, the brand has received a customer discussion and feedback rate on Facebook of up to
96%, while other channels only account for 1-2%.

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VI. Budget

VII. Action Program

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 CONCLUSION
This marketing plan report has proposed marketing strategies to help Highlands Coffee succeed
in the Korean market. These strategies are built based on market analysis and brand positioning
of Highlands Coffee. If implemented effectively, these strategies will help Highlands Coffee
achieve its goals in the Korean market.
However, it should be noted that the Korean market is a fiercely competitive market. Highlands
Coffee will face competition from large, famous coffee brands such as Starbucks, Coffee Bean &
Tea Leaf, and Ediya Coffee. Therefore, Highlands Coffee needs a systematic marketing strategy
and effective implementation to be able to compete and succeed in this market.
Here are some specific recommendations for Highlands Coffee:
• Focus on building brand awareness and love: Highlands Coffee needs to deploy strong
marketing activities to build its brand awareness and love in Korea. These activities may
include advertising, PR, and direct marketing activities.
• Developing coffee products suitable for Korean tastes: Highlands Coffee needs to research
the tastes of Korean consumers to develop coffee products suitable for their needs. These
products need to meet quality, taste, and price criteria.
• Expanding store network: Highlands Coffee needs to expand its store network in major
Korean cities to reach more customers. Highlands Coffee stores need to be modernly
designed and imbued with Vietnamese identity.
With careful preparation and effective implementation, Highlands Coffee can conquer the
Korean market and become one of the leading coffee brands in this market.

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 REFERENCE

1. Philip R. Cateora, R. Bruce Money, Mary C. Gilly, John L. Graham. (2022).

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international-marketing-plan/.

3. Highlands Coffee. (n.d.). Retrieved November 17, 2023, from

https://www.highlandscoffee.com.vn/.

4. MISA AMIS. (2023). Chien lược marketing cua Highlands Coffee chi tiet nhat.
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5. Hai, V.T. (2023). Phân tích môi trường vĩ mô của Highland Coffee chi tiết 2023. Retrieved
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6. Hai, V.T. Quangcaosieutoc. (2023). Chien luoc marketing cua Highlands Coffee.
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