GROUP 03-Beverage - Trung Nguyen Lengend
GROUP 03-Beverage - Trung Nguyen Lengend
GROUP 03-Beverage - Trung Nguyen Lengend
FINAL REPORT
Subject: Online Consumer Behavior
Study how consumers choose the beverage of
Trung Nguyen Legend Brand
Lecturer: Nghiem Tan Phong
Class: EBU1127E.A02E
Group: 03
LIST OF TABLES
Table 1. Competitors of Trung Nguyen Legend ............................................................ 4
Table 2. Segmentation of Trung Nguyen Legend .......................................................... 5
Table 3. Portrait of Consumer ...................................................................................... 6
Online Consumer Behavior UEF
ABSTRACT
In today's volatile and competitive consumer world, analyzing and understanding
consumer behavior is not only a basic task but also a key factor in determining the success of a
brand. For Trung Nguyen Legend, one of the leading coffee brands in Vietnam, understanding
consumer psychology, needs, and behavior not only helps this brand optimize products and
services but also assists in building creative and effective marketing strategies. This requires an
ongoing research process and a deep understanding of the market, as well as the ability to
flexibly adapt to changes in consumer behavior and needs.
This report aims to analyze and evaluate in detail the factors affecting consumer
behavior of Trung Nguyen Legend and the strategies that Trung Nguyen Legend has been
applying to continue steadily on its journey. Through this, we can see a deep understanding as
well as how Trung Nguyen Legend optimizes its products and experiences to exceed customer
expectations, thereby building trust and loyalty to the signal brand.
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Online Consumer Behavior UEF
I. INTRODUCTION
1. Overview Trung Nguyen Legend
On the 22nd anniversary of its establishment (June 16, 1996 - June 16, 2018), the Trung Nguyen
Legend Group officially launched a new premium coffee product line called Trung Nguyen
Legend
Trung Nguyen Legend is one of three prominent brands of Trung Nguyen Group, including two
other brands such as Trung Nguyen and G7. Trung Nguyen is the leading coffee business group
in Vietnam, founded in 1996 by Mr. Dang Le Nguyen Vu. Trung Nguyen specializes in
producing and distributing roasted and ground coffee, instant coffee, premium coffee…
Figure 2: Trung Nguyen Group products: G7, Trung Nguyen Legend, Trung Nguyen
Trung Nguyen is deeply ingrained in Vietnamese coffee culture. It resonates with local
consumers who appreciate quality coffee and take pride in supporting a homegrown brand. 11
out of 17 million Vietnamese households are estimated to purchase Trung Nguyen coffee
products, making it a household name in the country.
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Online Consumer Behavior UEF
The store, Trung Nguyên Legend Café, a well-known coffee chain, has made its mark in the
middle and high-end segment. Presently, they operate 80 locations, with 60% being self-
operated and the remaining 40% being franchised outlets. These cafes are not just about serving
excellent cups of energy coffee; they also offer a unique experience that can change lives.
In VietNam, Trung Nguyên Legend café chain of stores nearly 100 stores
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Online Consumer Behavior UEF
Highlands Coffee is the second largest Vietnamese coffee shop chain after Trung Nguyen
Coffee and is a manufacturer and distributor of coffee products, founded in Hanoi in 1998. The
establishment of Highlands Coffee Company marks the first time an overseas Vietnamese can
register a private company in Vietnam.
3.2. Starbucks:
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Online Consumer Behavior UEF
Gender: Both men and Lifestyle: active, likes to Brand choice: Loyal to
women exist, with a higher experience, Likes to meet Trung Nguyen Legend
proportion of men friends, work or simply brand
relax in the coffee space
Income: High, has a Core values: Passion, Purchasing channels:
certain position in society, creativity, self-assertion Trung Nguyen Legend
who are willing to pay a stores, supermarkets,
premium for quality and agents,...
an exceptional coffee
experience.
Occupation: Viewpoint on coffee: Online shopping: Tend to
Businessman, manager, Coffee is a drink that shop on e-commerce
office worker,... shows class, a place to platforms, where choices
meet and exchange, and a are made based on
source of creative feedback or the brand's
inspiration reputation.
Geographic location: Big Participate in activities:
city, developed economic Participate in activities
area organized by Trung
Nguyen Legend
2. Consumers’ portrait.
Consider a detailed portrait of your target customer - someone who not only demands high
quality from coffee products but also appreciates the cultural value and authentic enjoyment
experience that Trung Nguyen brings.
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Online Consumer Behavior UEF
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Online Consumer Behavior UEF
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Online Consumer Behavior UEF
• Comfort and convenience: The space needs to bring a feeling of comfort and relaxation to
customers.
• Experiential: professionalism in service, meeting personal needs with friendliness
2. Product attributes:
2.1. About core values:
• Passion and creativity: Trung Nguyen Legend always values passion and creativity,
constantly innovating to bring unique coffee products.
• National pride: Trung Nguyen Legend is always proud of Vietnamese coffee culture and
wishes to spread this cultural value to the world.
2.2. About materials and quality:
• 100% Robusta: Trung Nguyen Legend uses 100% premium Robusta coffee ingredients,
grown in the legendary basalt land of Buon Ma Thuot.
• Closed production process: Trung Nguyen Legend applies a closed production process,
from planting, and harvesting to processing, ensuring the highest product quality.
• Unique flavor: Trung Nguyen Legend possesses a secret formula that creates a rich, strong,
and distinct coffee flavor.
• Trung Nguyen Legend uses nanotechnology to grind coffee into microscopic sizes and
preserve coffee at subzero temperatures.
2.3. About price and distribution:
• Higher price: Trung Nguyen Legend has a higher price than other coffee segments in the
market.
• Selective distribution: Trung Nguyen Legend only distributes products at reputable stores
and agents.
2.4. About the experience:
• Unique coffee ecosystem: Trung Nguyen Legend creates a unique coffee ecosystem,
including coffee shops, coffee museums and scholarship funds.
• Feeling of pride and class: Using Trung Nguyen Legend products gives customers a feeling
of pride and class.
• Providing gift consulting and packaging services for customers, with unique and limited
edition products, creating the best impression for gift recipients.
• Different spiritual values: Trung Nguyen Legend not only provides coffee products but also
brings customers unique experiences and different spiritual values.
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Online Consumer Behavior UEF
IV. How Cultural, Socical, Individual, Psychological factors affect consumers’ buying
decisions?
1. Cultural influences:
Culture is the basic, first cause that guides human behavior in general and consumer behavior
in particular. People with different cultures will have different consumption behaviors.
• In the North, typically Hanoi, they often choose filter coffee from Trung Nguyen because
it has a mild bitter taste, suitable for sitting and sipping and talking.
• Southerners often choose Trung Nguyen's instant, iced milk coffee because it is less bitter
than filter coffee.
Another social component that might affect consumer behavior is social class, which is
characterized by elements like occupation, wealth, income, education, power, and prestige.
Trung Nguyen specifically targets the intellectual class as well as other social classes:
• Elite: They can spend a lot of money to choose their favorite drink line and Trung Nguyen
has done that, the company has launched high-end product lines suitable for people in the
market. This class: Weasel.
• Middle class: With the current social structure, it can be said that the middle-class social
group mainly includes elite members of the basic classes and strata in society. Trung
Nguyen Coffee also has product lines that meet the needs of this class: Legend Coffee
• Lower class: The lower class are working people who are not well off. They work as
unskilled laborers and earn average salaries, although they always strive to reach a higher
class. Trung Nguyen Coffee also has many types of coffee at very affordable prices, suitable
for many people with average incomes such as Legend Classic.
2. Social Influenced :
The family is one of a person's most significant reference groups. Family dynamics have a
significant impact on a consumer's thoughts and behavior.
• In the heart-connecting coffee campaign, Trung Nguyen has connected hearts that love
knowledge together, bringing people with the same passion for reading together to enjoy
rich cups of coffee and the same flavor. experience each other.
Role and Status: A person's role is nothing more than a specific behavior depending on the
situation and their position in it. According to the survey, most consumers learn about coffee
through relatives and friends.
• Because many people around us regularly buy Trung Nguyen products, we ourselves are
inspired to try new things and avoid being considered outdated or successful like other
members in a group.
3. Personal influences:
Age: They are a group of customers in the "golden age" from 25 to 45, who have the ability to
spend and are the main spending group in society, especially with high-end products in society.
Occupation:
• Office workers: Due to the busy nature of work and the need for high concentration, office
workers often need to use coffee to increase alertness and concentration. Trung Nguyen
Legend coffee with its strong, rich flavor and high caffeine content is considered a suitable
choice for this group.
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Online Consumer Behavior UEF
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Online Consumer Behavior UEF
• Selective Distortion: Someone who already enjoys Trung Nguyen Legend might interpret
an ad for a competing brand as weak or bland, even if it objectively highlights different
flavor notes. Their existing belief about Trung Nguyen Legend's quality "distorts" their
perception of the competitor.
• Selective Retention: A positive experience with Trung Nguyen Legend might be strongly
remembered, influencing future purchases. Conversely, a negative experience with another
brand might be quickly forgotten, making them more likely to consider Trung Nguyen
Legend next time.
Learning:
• Drives: These are internal motivations that push individuals to act. In the context of buying
Trung Nguyen Legend coffee, a drive could be the desire for a caffeine boost or the
enjoyment of a rich coffee flavor.
• Stimuli: These are external factors that grab our attention and trigger a response. Seeing an
advertisement for Trung Nguyen Legend or smelling fresh coffee brewing could be stimuli
for a coffee purchase.
• Cues: Cues are subtle signals that guide our response to stimuli. Noticing colleagues
drinking Trung Nguyen Legend coffee in the break room could be a cue to try it yourself.
• Responses: These are the actions individuals take in reaction to stimuli and cues. In this
case, the response would be deciding to buy Trung Nguyen Legend coffee.
• Reinforcement: This is the consequence of a response that determines if the behavior is
repeated. If you enjoy the taste of Trung Nguyen Legend , you're more likely to buy it again.
Belief and Attitudes:
• Knowledge: If you've researched and learned that Trung Nguyen Legend uses high-quality
coffee beans, you might believe their coffee is superior.
• Opinion: Someone might simply believe Trung Nguyen Legend tastes better than other
brands, even without having tried all options.
• Faith: A person might believe Trung Nguyen Legend uses traditional roasting methods
based on faith in the brand's heritage, even if they haven't witnessed it firsthand.
• Cognitive Component: This refers to the thoughts and beliefs a person holds about the
object. Someone might believe Trung Nguyen Legend uses high-quality beans and offers a
premium product.
• Affective Component: A person might feel happy, energized, or even sophisticated when
drinking Trung Nguyen Legend coffee.
• Behavioral Component: This refers to the intention to act based on the overall evaluation.
Enjoying Trung Nguyen Legend coffee might lead someone to consistently choose it over
other brands.
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Online Consumer Behavior UEF
In a challenging world economic context, Trung Nguyen Legend has shown its determination
to realize its global brand vision, affirming Vietnam's position as a robusta coffee powerhouse,
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Online Consumer Behavior UEF
while promoting the development of Vietnamese brands, and contributing to the prosperity of
the country and people.
2. Communication Strategy
Strategy for integrating culture into Trung Nguyen legend's brand: "different, special and
unique".
Stemming from the fact that "after 20 years, Trung Nguyen Legend is no longer new". With the
current market size, Vietnam has welcomed most of the world's major coffee brands, creating
fierce competition. Trung Nguyen Legend builds a new strategy, turning coffee into a
philosophy, emphasizing its historical and cultural importance. The company invests in
storytelling, community service, and unique coffee shop experiences to make a difference. In
the past 5 years (June 16, 2018 - June 16, 2023), Trung Nguyen Legend has initially
implemented the proposed strategy.
2.1. Goal
Turning coffee into a "philosophy", not just a drink but also a source of inspiration and
knowledge.
Distinct brand identity: Premium coffee - Life-changing coffee. With keywords that stimulate
creativity and awaken spiritual power.
Trung Nguyen Legend system is growing strongly, expanding throughout Vietnam and building
a reputation in the international market.
Creating a position for the Vietnamese coffee industry, becoming a leader in the coffee industry
with the convergence of the quintessence of the 3 world coffee civilizations.
2.2. Featured campaigns
To communicate that position Trung Nguyen legend is a coffee brand that is not just a drink
put into the stomach, but a cultural experience, a part of lifestyle and thinking.
Trung Nguyen Legend not only wants consumers to enjoy the taste of coffee but also experience
and learn about the history, culture, and philosophy behind it, emphasizing the connection
between coffee and creativity and thought. thinking, and expressing personality.
• Campaign “Journey From the Heart”
Journey From the Heart - Journey of Great Will - Starting a business to build the nation for 30
million Vietnamese youth" was initiated by Trung Nguyen Legend to encourage young people
to learn, absorb and apply the quintessence of human knowledge. from which to change
thinking, build strength to achieve success and true happiness. Implemented from 2018 up to
now, Journey from the Heart has organized many programs to spread knowledge, giving away
tens of millions of books in the life-changing foundation bookshelf.
The highlight of this campaign is that Trung Nguyen chose expensive supercars as models for
the campaign, as a symbol of wealth and luxury, and this successfully attracted the attention of
target customers who are ready to conquer and achieve big dreams.
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Online Consumer Behavior UEF
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Online Consumer Behavior UEF
Targeting the segment of customers who regularly use airplanes for different purposes, this is
an opportunity to show during boring hours when customers are waiting on the plane. The
campaign ended with success in hitting the emotional mark in customers' minds with delicious
cups of coffee next to valuable books. Affirming its position as the number 1 coffee in Vietnam.
In a challenging world economic context, Trung Nguyen Legend has shown its determination
to realize its global brand vision, affirming Vietnam's position as a robusta coffee powerhouse,
while promoting development. of Vietnamese brands, contributing to the prosperity of the
country and people.
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Online Consumer Behavior UEF
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Online Consumer Behavior UEF
VI. Conclusion:
Summary
By understanding these concepts, Trung Nguyen Legend can develop targeted marketing
strategies that:
• Craft clear and memorable messages that cut through the clutter and reach their target
audience.
• Highlight positive aspects of the brand that resonate with existing beliefs and create positive
associations.
• Create memorable experiences that reinforce positive perceptions and build brand loyalty.
Address perceptual biases by crafting messages that are clear, informative, and counter negative
biases consumers might hold.
Final Thoughts:
The world of consumer behavior is complex, but understanding these fundamental
psychological concepts equips Trung Nguyen Legend to make data-driven decisions and
develop effective strategies to win over customers and build brand loyalty.
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Online Consumer Behavior UEF
REFERENCES
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