Banking Academy of Vietnam

International School of Business

A final report

on

THE ADOPTION OF MARKETING STRATEGY IN HIGHLANDS COFFEE

Teacher: Vaage Catalina

Student: Nguyen Thi Minh Thu

Class: CO2C

Course: Project 1

Hanoi, D/M/2023
 A final report
on
The adoption of marketing strategy in Highlands Coffee

by

Nguyen Thi Minh Thu_CO2-188

Class: CO2C

Lecturer: Vaage Catalina

Course: Project 1

Hanoi, D/M/2023

2
TABLE OF CONTENT
I. Introduction 3
II. Profile of Highlands Coffee 3
2.1. History of development
2.2. Main business
2.3. Organizational structure of Highlands coffee
2.4.Core values of Highlands coffee

III. The adoption of Highlands Coffee

3.1.Product strategy
3.2.,Pricing Strategy
3.3.Distribution Location Strategy
3.4. Promotion Strategy
3.5. HR Strategy
3.6. Infrastructure Strategy
3.7. Operations Strategy

IV. Evaluation
V. Conclusion
References

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THE ADOPTION OF MARKETING STRATEGY IN HIGHLANDS COFFEE

I. Introduction:

This report analyzes the marketing approach that allows businesses to reach

every consumer with their goods. One organization that has successfully

used marketing is Highlands Coffee. Therefore, this report will provide a

comprehensive overview of the company and detailed analysis of the steps

required to implement this strategy.

II. Profile of Highlands Coffee

2.1. History of development

Highlands Coffee was founded by David Thai in 1999. The brand started in

Hanoi with a line of packaged coffee products. After that, Highlands Coffee

quickly developed into a strong and famous coffee brand chain at home and

abroad.

In 2012, the owner of Highlands Coffee (Viet Thai International) sold 60% of

shares in Hong Kong and 49% in Vietnam for $25 million to Jollibee

(Philippines). The goal of this action is to expand the brand and conquer

other countries in Asia.

Highlands Coffee then expanded rapidly, even surpassing global brands like

Starbucks in the Vietnamese market. After a long journey of development,

the Highlands Coffee brand has always been marked by delicious and quality

coffee products in a comfortable and polite space.

2.2. Main business

Highlands Coffee operates in two areas:

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 - At Highlands Coffee chain of coffee shops: Products are beverages

(coffee, ice, fruit tea ..) and fast food (bread).

- According to consumer channels such as supermarkets, traditional

markets, and grocery stores: Black coffee or powdered milk are

available for purchase at Highlands Coffee, which can be packaged

or canned, canned or canned liquid, for easy transportation and

storage.

Coffee products produced and traded by the company include:

- The best Robusta and Arabica beans farmed in Vietnam's highlands

are used to make Highlands Coffee Roasting, a traditional coffee of

the Central Highlands. The product maintains its rich, authentic

flavor thanks to contemporary technology, a closed production

procedure, and the harvesting, drying, roasting, and grinding of

coffee beans. Offering customers appealing, delectable, and rich cups

of coffee, the best variation of Vietnamese coffee. In the plastic bag

that holds Highlands coffee, there is a moisture-proof layer that you

can use just once.

- Highlands Black Coffee: Highlands coffee with 100% pure coffee

ingredients, gives you an unforgettable rich feeling. Highlands black

coffee in the form of water has been prepared in 185ml cans and still

retains the delicious taste of coffee. Cans are designed high,

luxurious and convenient for users. How to drink: Use immediately

after opening the can, can add sugar, milk or ice. Chilled cans will

taste better. Reference price. You can buy 6 cans Highlands Lot

Black Coffee for about 65,000 VND.

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 - Highlands instant coffee: is a type of coffee that is produced in the

form of a fine powder and has been prepared according to taste.

People process instant coffee by dry roasting method, in the coffee

already has sugar and milk. Highland instant coffee is packaged in a

plastic bag, with a moisture-proof lining inside, which is very safe

for you to use once.

- Highlands Coffee canned milk in the form of water has been

prepared in cans and still retains the delicious taste of coffee, the

aroma of milk, is very sweet and easy to drink. The price is only

about 13,600 VND/can.

- Culi Highlands coffee: is a Highlands coffee produced as roasted

and ground coffee from premium coffee beans, selected from

Arabica and Robusta coffee beans, so it has a higher caffeine content

than regular beans (the type of coffee beans). regular coffee beans

have two coffee beans). Culi Highlands coffee is packaged in a

plastic bag, with a moisture-proof lining inside, which is very safe

for you to use once.

In addition to coffee, the Highlands brand also develops other

product lines to accompany and give gifts to the company's

customers. It is a thermos bottle and Highlands porcelain cup.

2.3.Organizational structure of Highlands coffee

District Manager
(Highlands Coffee
Shop)

Store Manager 1 Store Manager 2 Store Manager 3

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 Store Manager
Assistant

Barista

Waiter Cashier Shipper Security

2.4. Core values of Highlands coffee

- Vietnamese values are underscored and raised not only on the design
of each cup or mug but also on premium barbecue and floor coffee
packaged foods, and the coffee shop design showing the world the
beauty of Vietnamese culture, bringing the "belonging and love"
sensation, while still being extremely fragile in the available land,
filled with the light of each Highlands Coffee site.

- With Highlands Coffee, David Thai has produced a mass-market

aspirational café brand that is infused with traditional Vietnamese
values and expertly combines them with the modern lifestyle of a
vibrant Vietnam.
- Highlands Coffee has grown increasingly engrained in Vietnamese
society over the course of its nearly 20 years of experience delivering
Vietnamese coffee and tea to the Vietnamese. People's attitudes have
changed as a result, and they now have a completely new way to
enjoy and appreciate coffee and tea while still respecting the
essential cultural values of the country.

At Highlands Coffee, which again was established to maintain

Vietnamese traditions, we take great delight in offering you the
highest quality coffee and tea as well as substantial, flavorful, and
notably nostalgic traditional Vietnamese foods. Consider the "best
buddy" of many individuals who are hungry: the combo of "Phin Sa

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 with Banh Mì" (Vietnamese flatbread and instant coffee with
whipped cream).
- In order to uphold Vietnamese values, become the country's favorite
café, and promote a delectable and reasonably priced modern
Vietnamese coffee, tea, and café lifestyle experience everywhere,
every day, and for every customer, Highlands Coffee cautiously
wants to attend every one of the minute things when making a choice
raw goods and components and decorating. The objective is to offer
consistently excellent items to the Vietnamese community at
affordable costs. A clever company strategy that places a strong
emphasis on advancement and research helps to achieve this aim.
- Vietnamese people may now relax and enjoy the deliciously robust
caffeine-free tea and coffee solutions in the welcoming and sociable
café setting that is rich including all Vietnamese values and also
where both contemporary and traditional features are harmoniously
merged. With around 300 coffee shop sites spread throughout 21
municipalities and provinces, in addition to those...
III. The adoption of Marketing Mix 7P in Highlands Coffee
3.1. Definition
Several potential consumers for Highlands Coffee have been drawn in
by its marketing mix approach. Highlands Coffee's goods are quite
diverse and ideal for a wide range of consumers, to start. Office workers
and millennials are the target market for the business, thus in addition to
the classic varieties, Highlands Coffee has developed more exotic
Arabica flavors. Highlands Coffee is a brand name that focuses a lot of
attention on giving customers the best coffee experience. Everyone has
to adhere carefully to the standard in order to achieve it. With locations
in practically all significant structures and economic hubs in Hanoi and
Saigon, Highlands Coffee is perhaps the most successful network of
coffee shops in Vietnam. In 2000, the company began producing coffee
in Hanoi. After that, Highlands Coffee quickly grew and became a

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 network of coffee shops. The first two Highlands Coffee shops debuted
in Hanoi in 2002. It has 200 shops in Vietnam after 16 years in business.
Some other competitors are outperformed by the growth in income in
addition to the boost in scale. Cao Nguyen Coffee Service Joint Stock
Company, the company that owns Highlands Coffee, recorded purchases
exceeding VND 1,237 billion in 2017, a 47% improvement from the
preceding year. This was nearly three times Starbucks, more than
approximately twice The Coffee House, and much more nearly four
times Phuc Long (Thi Hà, n.d.). This shows the existence of tremendous
development after the new style has been in use for five years. In 2011,
Jollibee also made a $25 million investment to acquire 60% of the Hong
Kong-based Viet Thai International Group's Business Department as
well as 49% of Viet Thai, the parent company of Highlands Coffee.
Currently, Highlands Coffee operates 269 outlets, 234 of which are in
Vietnam and 35 of which are in the Philippines. Sales are up more than
50%, while profits are up 106%. The world's greatest coffee company in
2017 was Highlands Coffee. Highlands Coffee wants to establish 100
shops in 2018, largely in the Vietnamese market (Bch Lc, 2018). One of
the independent coffee shops with the highest market sales is Highlands
Coffee after outpacing a number of its competitors.
3.2. Analysis
3.2.1. Product strategy
Alcoholic beverages and meals are among the two primary product
categories offered by Highlands Coffee. The following important groups
of drinks are specifically included in the beverages industry:
- Cafe collective: The flagship brand is Phin Sua Da, and there are also
PhinDi, Café, and Cafe Espresso.
Golden Lotus Tea seems to be the flagship product for the tea group,
which also includes flavored teas, lotus tea, and green tea.
- Freeze Green Tea is a representation of a collection of ground ice
(Freeze).

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 The typical beverage products which meet a wide range of consumer
demands and provide significant revenue for Highlands.
Cakes and bread are part of the cuisine group at Highlands Coffee. The
company somehow doesn't heavily emphasize earnings for these items.
In order to draw guests, bread is introduced to Highlands' menu as a
connection item. The company also introduced fresh lines of goods,
including such glass bottles, packaged coffee, processing plants,
fashionable mugs, etc., to assist Highlands Coffee broaden its consumer
marketing techniques.
3.2.2. Pricing Strategy
The current valuation range for Highlands Coffee's goods is 30,000 to
75,000 VND. In comparison towards the surrounding area, this pricing
is not cheap. Nonetheless, given that the company's targeted audience
consists mostly of middle-class individuals with reliable income, this
pricing is quite realistic and appropriate.
Highlands Coffee wants to draw in and increase their client base among
various demographics. As a result, the price disparity across the market
segments is evident. This contributes significantly to Highlands'
aggressive pricing policy.
Compared to other beverages, popular coffee preparations are
substantially less expensive. Those who are interested in experiencing
Highlands' excellent service and cozy atmosphere at the same time must
pay this amount.
Other drink categories target wealthy consumers as well as young
consumers who enjoy a variety of beverages and simple flavors with
much higher pricing.
3.2.3. Distribution location strategy
The business plan for Highlands Coffee that focuses on fulfillment
centers is also quite effective. In 24 provinces and cities around
Vietnam, there are more than 300 locations for the company. Central

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 areas of big cities with good transit and dense populations are where
stores are focused.
Highlands is quite picky about the caliber of the property, the shop's
position, and assuring a lovely view. Highlands shops are typically
found in prominent areas, close to well-known sites, and in large
business hubs.
In addition, Highlands' countrywide store count has grown quickly,
partly due to the leasing approach.
Nevertheless, Highlands also works with other alcohol courier
companies, like Shopee Food, Baemin, Grab, and others, to provide
transportation to consumers. Moreover, pharmacies and several retail
outlets around the country carry merchandise from Highlands.
3.2.4. Strategies on marketing methods
In order to attract customers, Highlands Coffee usually creates a variety
of deals, like a special combination, purchase three get that one
complimentary, a complimentary buy a bigger, etc.
The company is highly engaged with social networking sites,
specifically Facebook. 96% of Facebook posts and buyer testimonials
about Highlands Coffee (according to statistics from Buzzmedia).
The Communication campaigns for the industry are also focused. The
"Green Arms" promotion, in particular, was started to encourage
consumers to bring their personal plastic cups while conducting
countertop orders. This program seeks to reduce small plastic use among
individuals in the interest of environmental sustainability.
3.2.5. HR strategy
The people management business strategy for Highlands Coffee is then
comprehension and learning. At Highlands, employees are thoroughly
screened and put through extensive training. They regularly provide the
highest level of service and are well-liked.
To guarantee the greatest standard of job performance and consumer
experience, Highlands Coffee thoroughly screens prospective

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 employees. Because of this, the business is able to offer its customers
the best reliability, devoted provider, and a polished appearance thanks
to its employees.
3.2.6. Infrastructure strategy
Most of Highlands Coffee's stores have airy, spacious, and beautiful
spaces. Stores often have a combination of both outdoor and indoor
spaces, meeting the preferences of every customer.
The outdoor area's design is straightforward, in tune with nature, and
suited for individuals who enjoy activity and commotion. Those who
want seclusion and solitude can make use of the pleasant, elegant indoor
environment.
The primary color tones of the Highlands logo are brown and red.
Nearly every piece of furniture in the business, including the sofa, menu,
staff uniforms, tables and chairs, etc., bears the brand's name and
distinctive colors.
3.2.7. Operational process strategy
All processes at Highlands are aimed at simplicity and convenience to
help customers buy easily and save time. When going to the Highlands
store, customers just need to go to the counter to order drinks, then
receive a notification device and wait for drinks/food.
Moreover, customers can also easily pay with many other methods
besides cash such as e-wallets, cards, etc.
Besides the quality of products and services, Highlands Coffee's
marketing strategy is a decisive factor in the success of this brand as it is
today. Highlands Coffee is gradually becoming the leading coffee brand
in Vietnam, making great strides in both domestic and international
markets.
IV. Evaluation
Because of my love for Vietnam and my enthusiasm for coffee, I believe
Highlands Coffee's marketing plan to be highly successful. Highlands
Coffee was founded in 1999 with the goal of elevating Vietnam's rich

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 coffee legacy. spreading the feeling of pride while pleasantly blending
heritage and contemporary.
Highlands Coffee began selling packaged coffee in Hanoi in 2000,
developed quickly to become a well-known coffee shop brand, and has
been steadily growing its domestic and international activities since
2002.
In July 2019, Highlands Coffee officially hit 300 in the number of
coffee shops across the country, is the leading coffee brand in the
Vietnamese market, ready to serve all types of users from all over the
country. On this occasion, Highlands Coffee also launched many
attractive promotions to thank customers for making the shop's success
with their own bold stories.
V. Conclusion
In fact, Highlands Coffee has been extremely successful with smart
marketing strategies such as Product strategy,Pricing Strategy,
Distribution Location Strategy, Promotion Strategy, HR Strategy,
Infrastructure Strategy, Operations Strategy. That is what has made
Highlands Coffee extremely developed up to the present time.

Reference :
Ori Agency (2022). Chiến lược marketing của Highlands coffee: Giá trị
Việt trong ly cà phê. [online] oriagency.vn. Available at:
https://oriagency.vn/chien-luoc-marketing-cua-highlands-coffee.

‌Cho Thuê Nhà Phố. (2022). Tất Tần Tật Về Thương Hiệu Highlands
Coffee. [online] Available at: https://chothuenhapho.vn/tat-tan-tat-ve-
thuong-hieu-highlands-coffee/.

‌Highlands Coffee (2018). HIGHLANDS COFFEE: PROUDLY BORN

FROM THE VIET’S LAND SINCE 1999. [online]
Highlandscoffee.com.vn. Available at:

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 https://www.highlandscoffee.com.vn/en/highlands-coffee-proudly-born-
from-the-viet-s-land-since-1999.html.

‌Nam, B.T. giới & V. (2019). Mở 300 quán cà phê, Highlands Coffee
khẳng định sức mạnh thương hiệu Việt. [online] Báo Thế giới và Việt
Nam. Available at: https://baoquocte.vn/mo-300-quan-ca-phe-highlands-
coffee-khang-dinh-suc-manh-thuong-hieu-viet-
98398.html#:~:text=Highlands%20Coffee%20ch%C3%ADnh%20th
%E1%BB%A9c%20c%C3%A1n%20[Accessed%2018%20Mar.
%202023].

Navee Corporation. (n.d.). Phân tích chi tiết chiến lược Marketing của
Highlands Coffee. [online] Available at:
https://www.navee.asia/kb/chien-luoc-marketing-cua-highlands-coffee/.
‌
www.bachhoaxanh.com. (n.d.). Tổng hợp các sản phẩm của Highland
Coffee đang kinh doanh. [online] Available at:
https://www.bachhoaxanh.com/kinh-nghiem-hay/tong-hop-cac-san-
pham-cua-highland-coffee-dang-kinh-doanh-1403590.
‌
Cuong Khong (2016). Highland Coffee Launching Plan by Cuong
Khong. [online] Available at:
https://www.slideshare.net/CuongKhong1/highlandcoffee-final-
presentation-kichao.

VnExpress (n.d.). Chủ quản Highlands Coffee kinh doanh ra sao tại
Việt Nam? [online] vnexpress.net. Available at:
https://vnexpress.net/chu-quan-highlands-coffee-kinh-doanh-ra-sao-tai-
viet-nam-4498698.html.

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