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GROUP ASSIGNMENT COVER SHEET
STUDENT DETAILS
Student name: Nguyễn Vũ Minh Anh Student ID number: 23006107 Student name: Nguyễn Ngọc Quỳnh Anh Student ID number: 23005287 Student name: Nguyễn Đình Vĩnh Hưng Student ID number: 23004808 Student name: Nguyễn Huỳnh Vân Anh Student ID number: 23006191 Student name: Lê Bảo Ngọc Student ID number: 23005120 Student name: Nguyễn Ngọc Mai Student ID number: 23006015 Student name: Nguyễn Ngọc Bình Student ID number: 23005216 UNIT AND TUTORIAL DETAILS Unit name: Consumer Behavior Unit number: CB-T224WSB- Tutorial/Lecture: Class day and time: Tue 8 AM Lecturer or Tutor name: Vo Van Dung ASSIGNMENT DETAILS Title: Group Report Length: 2992 words Due date: August 04, 2024 Date submitted: August 04, 2024 DECLARATION I hold a copy of this assignment if the original is lost or damaged. I hereby certify that no part of this assignment or product has been copied from any other student’s work or from any other source except where due acknowledgement is made in the assignment. I hereby certify that no part of this assignment or product has been submitted by me in another (previous or current) assessment, except where appropriately referenced, and with prior permission from the Lecturer / Tutor / Unit Coordinator for this unit. No part of the assignment/product has been written/ produced for me by any other person except where collaboration has been authorised by the Lecturer / Tutor /Unit Coordinator concerned. I am aware that this work may be reproduced and submitted to plagiarism detection software programs for the purpose of detecting possible plagiarism (which may retain a copy on its database for future plagiarism checking). Student’s signature: Minh Anh Student’s signature: Quynh Anh Student’s signature: Vinh Hung Student’s signature: Van Anh Student’s signature: Bao Ngoc
Student’s signature: Ngoc Mai Student’s signature: Ngoc Binh Note: An examiner or lecturer / tutor has the right to not mark this assignment if the above declaration has not been signed.
Table of contents
- Market Overview
- 1.1. Market situation
- 1.2. Competitive situation
- 1.3. Market size and potential growth
- 1.4. Market trends
- Brand Overview
- 2.1. Introduction of the company
- 2.2. Product description
- 2.3. Target segment
- 2.4. SWOT analysis
- 2.5. Company business problem and reasons
- 2.6. Company objective
- Market Research
- 3.1. Research objective
- 3.2. Research Summary
- 3.3. Data Analysis
- 3.4. Consumer Insights
- Marketing Recommendations
- Recommendation
- Recommendation
- Recommendation
- Recommendation
- Recommendation
- Appendices
- Appendix
- Appendix
- Appendix
- Appendix
- Appendix
- Appendix
- Appendix
- Appendix
- Appendix
1. Market Overview 1.1. Market situation Vietnam's food and beverage market is constantly evolving due to influences from the youth demographic, technology, spending behavior, etc (Son, 2024). This evolution makes the F&B market dynamic, driving economic growth and contributing approximately 15% to the national GDP. Growth is also accompanied by intense competition, businesses that are not systematically invested in, lack clear competitive advantages compared to similarly positioned competitors and are not aligned with the behaviors and needs of Vietnamese consumers will face difficulty in suffering and succeeding in this market (VietnamNet, 2024). 1.2. Competitive situation The coffee shop market in Vietnam is highly competitive, the 2023 F&B market in Vietnam experienced a 1.26% increase in coffee/tea shops, totaling 317,299 stores (Minh An, 2024). There are already many major players such as Highlands Coffee, The Coffee House, Trung Nguyen Legend, and Phuc Long in the coffee shop market, consequently, Katinat must directly compete with these giants. At the end of 2023, Trung Nguyen Legend turned out to be the leader of Vietnam’s coffee shop market share with about 20% of the market share in revenue (Vietdata, 2024). With a market share of approximately 12% and 2023 revenue nearing 4,000 billion VND, Highlands Coffee secured the second position in the market. In third place, PhucLong Coffee & Tea accounted for 4.52% (Vietdata, 2024). Katinat, a relatively new player, holds a modest 1.35% market share, significantly lagging behind the dominant coffee chains. Figure 1: Market share of coffee shop brands (Vietdata, 2024)
work on assignments. The reasons for this trend could be accounted for by the relaxed and comfortable atmosphere and the affordability and availability of amenities such as AC or Wi-fi (Phuong, 2023). ● Changes in the timing of coffee visits Moreover, there is a notable shift in the timing of coffee shop visits. Typically, coffee drinkers would choose the time before or after school and work for a quick caffeine boost; however, there is an increasing trend towards young people visiting coffee shops during unconventional hours. For example, a store of Phê La in Ha Noi has changed its working hours to 4:00 AM - 23:00 PM, which arouses the interest of teenagers, having them prepare from as early as 3 AM, described as “thrilling” to get a chance to experience the taste of the early coffee. The varied visit times reflect more flexible options for coffee shops to cater to diverse needs and schedules (Pham, 2024). ● A favor towards drinks with local ingredients There is a growing demand for transparency and local economic support in today's market, requiring fresh and high-quality ingredients. This tendency can be explained by the preference for nearby or local producers to know the origins and trust for unique flavors with a better overall experience. Another reason could be the willingness to support the local community. Eco-conscious consumers also value the reduced carbon footprint making locally sourcing ingredients an attractive and environmentally friendly option (Hạ, 2024). ● An increasing number of freelancers in Vietnam Many young Vietnamese professionals leave their full-time jobs to become freelancers, seeking higher income and more knowledge (Binh, 2024). This trend, which gained momentum during the COVID- pandemic, continues as the economy recovers. When choosing to work as freelancers, most people prefer to work outside their homes; therefore, they tend to seek comfortable workplaces and often prefer coffee shops.
2. Brand Overview 2.1. Introduction of the company a, History: Katinat first appeared in 2016 under the management of CP Café Katinat Company. From its humble origins in the vibrant districts of Saigon, Katinat quickly gained popularity with its innovative menu offerings and uniquely designed cafe spaces. Until now, Katinat has expanded impressively, operating over 70 locations across ten provinces. Recently, in April 2024, Katinat announced a change of its positioning from “Katinat Saigon Kafe” to “Katinat Coffee & Tea House” while continue pursuing the initial core value, it promises to blow a wind of change to deliver high-quality products and services to customers with ingredients from different resources (Duong, 2024). This commitment to deliver value could be seen through their new tagline, 'Journey to Explore New Tastes.' Through a blend of tradition and modernity, Katinat fosters a culture of creativity and inclusivity, making it a beloved destination for coffee enthusiasts seeking quality and authenticity. b, Market presence: Katinat has built a reputation as a coffee chain that offers trendy combinations and stylish ambiance, appealing to a young and vibrant customer base. On top of that, the stores are decorated with contemporary and aesthetically pleasing interiors with cozy and comfortable seating. Therefore, Katinat has become a favored destination for those wanting to relax, socialize or work.
2.3. Target segment
2.4. SWOT analysis
3. Market Research 3.1. Research objective The objective of this research is to gain comprehensive consumer insights by the end of Q4 2024, identifying the key factors that influence customer attraction and retention at Katinat. By conducting detailed focus groups and market analysis, we aim to gather actionable data that will enable us to formulate targeted recommendations for the brand. This research will support Katinat in achieving its strategic goal of increasing store footfall by 25% within a year. 3.2. Research Summary The interviews were conducted face-to-face and via Google Meet, with a total of 21 participants. They are all Katinat customers and have a habit of going to coffee shops. We conducted a total of 3 sessions, each lasting 40-50 minutes and involving 7 participants, to dive into what customers need to retain their loyalty. - The focus group discussion and discussion flow (see Appendix 3).
Applied theory: 3.3. Data Analysis ● Lack of Distinction : The new strategy lacks uniqueness as 23.8% of customers indicated that the new positioning of Katinat did not distinguish itself from the old positioning. Among these, some customers supposed the new positioning is similar to the positioning of “The Coffee House” - another coffee chain in the Vietnamese coffee market.
● Conducive Environment for Studying and Working Interestingly, 30.8% (4 out of 13) of respondents expressed a desire for Katinat to create a more conducive environment for studying and working. This includes incorporating bookshelves and quiet areas. By providing such spaces, Katinat can attract students and professionals, thereby broadening its customer base and adding a new dimension to its image. 3.4. Consumer Insights Insight 1: GenZ customers are often impressed by brands that have unique and differentiated positioning Gen Z is more likely to support brands that have a clear and distinct positioning that sets them apart from competitors. Brands that can clearly communicate what makes them unique and different from competitors are more likely to capture the enthusiasm of Gen Z consumers. Insight 2: Gen Z tends to choose coffee shops that are suitable for working and studying. Gen Z prefers coffee shops that offer a comfortable and functional environment for working and studying, with reliable Wi-Fi, ample power outlets, and a quiet ambiance. They value modern design and a welcoming atmosphere that supports their tech-savvy and productive lifestyle Insight 3: Gen Z Strongly Prefers Coffee Shops Using Local Vietnamese Agricultural Products Gen Z values sustainability and authenticity. They prefer coffee shops that support local agriculture and offer products that reflect their cultural heritage. Insight 4: Gen Z consumers are influenced by online review Consumers, especially Gen Z, significantly rely on online reviews before making purchase decisions. Some familiar methods they can use such as word of mouth or social media, for instance, the impact of an emerging platform, Tiktok, have become particularly influential. This allows users to find quick, engaging reviews and recommendations, which often amplify their spread and impact. Insight 5: Gen Z consumers are drawn to trendy and dynamic coffee shops. Young people nowadays have a strong preference for coffee shops that are trendy and dynamic. Most of the time, they often seek places with unique and stylish interiors, along with a cozy atmosphere. Therefore, coffee shops with preferred designs and ambiance draw young people and make them their top choice.
4. Marketing Recommendations Recommendation 1 Run marketing campaigns to re-announce the repositioning of Katinat Coffee & Tea House and capture the attention of Gen Z (see Appendix 4): ● Video Series on TikTok : Produce a series of short, engaging videos showcasing the transition namely behind-the-scenes content, stories about the inspiration behind each land, etc. ● Influencer Partnerships : Collaborate with influencers who align with Katinat brand values to amplify the message. ● Encourage user-generated content via social media challenges : Launch challenges that encourage customers to share their Katinat experience using specific hashtags, for instance #Hanhtrinhchinhphucphongvimoi or #Journeytoexplorenewtastes. Then reward the best entries with prizes on Katinat's official channels. These actions will reinforce the repositioning with customers and capitalize on Gen Z's FOMO, encouraging them to come and experience Katinat's new mission. Recommendation 2 To broaden its brand and better suit expansion across various provinces, the company has officially rebranded to "KATINAT Coffee & Tea House." The focus will primarily be on two main offerings: tea and coffee. This change is aimed at targeting Gen Z customers and carries the message of "A Journey to Explore New Tastes." This shows that Katinat aims to create a story that leads customers on a unique journey of flavors, using ingredients sourced from local regions and continuously refined by skilled artisans. Although Katinat has shown its message since it rebranded in May, it has not represented any changes so we recommend Katinat maintain and develop more in this strategy by: ● Storytelling (see Appendix 5): Share engaging stories about the sourcing of ingredients from local farmers and the impact on the community. Highlight the journey from farm to cup to create a deeper connection with customers through: + In-store displays: Create in-store visuals, such as posters or digital screens, that tell the story of the journey from farm to cup. + Social Media Campaigns: Use platforms like Instagram and Facebook to share videos, photos, and stories about ingredient sources and the people behind them. + Website Content: Dedicate a section of your website to detailed stories about the ingredients and the regions they come from. ● Transparency : Provide information about the origins of ingredients and the sustainable practices involved.
Interior Design: Design the interiors to promote concentration and comfort. Include rooms or booths for individual or group study and a mix of high-back chairs and lounge seating with ample power outlets. Ambiance: Ensure the ambiance is calm and conducive to focus, with soft background music (jazz, acoustic, soft pop) and adequate lighting (with natural light and desk lamps for each table)
4. Special Promotions for K-STUDY ZONE (see Appendix 6)
- Discounts During Off-Peak Hours
- Special Study Group Rates
- Loyalty Programs
- Events and Workshops
- Partnerships Recommendation 4 (see Appendix 7): In terms of online reviews, Katinat is currently receiving mostly positive reviews from influencers and users, which has helped to boost Katinat's image and reputation further. Making good use of social media like Facebook and TikTok to share engaging and visually appealing content and positive user reviews has ultimately created a favorable online presence for Katinat. ● Collaborate with Key Opinion Leaders (KOLs) ● Collaborate with Key Opinion Consumers (KOCs) ● Create Shareable Content ● Monitor and Respond to Reviews Therefore, it is recommended that Katinat continue to maintain its good reputation, with some additional strategies to enhance its online presence on platforms. Recommendation 5 (see Appendix 8): A common perception among customers is that Katinat is often associated with a trendy, playful, and socialized person, so they would prefer Katinat to talk to friends and socialize. Since Katinat is going on the right track in this aspect, it should maintain and devise plans to create trends to reinforce that existing image further. ● Collaborations with Influencers ● Innovative Menu Items ● Host Trendy Events
5. Appendices Appendix 1 PRICE Katinat Coffee and Tea House Highlands Coffee Pricing Strategy : Katinat Coffee and Tea House positions itself in the mid-range market but emphasizes premium quality with slightly higher prices for some specialty drinks. Price Range : The average price ranges from 35,000 VND to 65,000 VND. Pricing Strategy : Highlands Coffee similarly adopts a mid-range pricing strategy, making it accessible to a broad customer base. Their pricing is competitive, offering good value for money. Price Range : The average price ranges from 29,000 VND to 59,000 VND. PRODUCTS Katinat Coffee and Tea House Highlands Coffee Product Offering : Katinat Coffee and Tea House offers a diverse menu. They emphasize high-quality ingredients and unique flavors. They also offer artisanal beverages catering to a more niche market segment. Product Offering : Highlands Coffee also offers a wide range of products. Highlands Coffee frequently updates its menu with seasonal and limited-edition items to attract new and repeat customers. PLACE Katinat Coffee and Tea House Highlands Coffee
