THE RMIT INTERNATIONAL UNIVERSITY

SAIGON SOUTH CAMPUS

MKTG1205: Marketing Principles

Propose to Mr. Pakawat Kietisaksopon

MARKETING PLAN
GLORIA JEAN’S COFFEE
Group 13 - Team 1
1. Tran Dan Khanh (s3202038)
2. Nguyen Tran Minh Hung (s3192968)
3. Huynh Thanh Huy (s3192957)
4. Nguyen Pham Xuan Phuc (s3193986)
5. Nguyen Phu Quoc Nam (s3193337)

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Table of Contents
I. Executive Summary: ....................................................................................................................... 4
II. Introduction:.................................................................................................................................... 5
III. Situation Analysis: ...................................................................................................................... 5
A. Macro Environment: ................................................................................................................... 5
1. Demographics: ........................................................................................................................ 5
2. Economics:.............................................................................................................................. 6
3. Natural Force .......................................................................................................................... 7
4. Cultural Force ......................................................................................................................... 7
5. Political Force ......................................................................................................................... 8
6. Technology: ............................................................................................................................ 8
B. Micro Environment: .................................................................................................................... 9
IV. SWOT Analysis: ....................................................................................................................... 10
A. Strength: .................................................................................................................................... 10
B. Weaknesses: .............................................................................................................................. 11
C. Opportunities: ........................................................................................................................... 11
D. Threats: ..................................................................................................................................... 11
E. SWOT Matrix: .......................................................................................................................... 12
V. Product objective: ......................................................................................................................... 12
A. CORPORATION OBJECTIVES:............................................................................................. 12
B. MARKETING OBJECTIVES: ................................................................................................. 12
C. FINANCIAL OBJECTIVES: ................................................................................................... 13
VI. Market segmentation, targeting and positioning ....................................................................... 13
A. MARKET SEGMENTATION: ................................................................................................ 13
B. TARGET MARKETING: ......................................................................................................... 14
C. POSITIONING: ........................................................................................................................ 15
VII. Marketing mix strategies:.......................................................................................................... 18
A. PRODUCT ................................................................................................................................ 18
B. PRICE: ...................................................................................................................................... 21
1. Competition Based Pricing: .................................................................................................. 21
2. Product Line-pricing: ............................................................................................................ 21
3. Optional product pricing: ...................................................................................................... 22
4. Product bundle pricing: ......................................................................................................... 22
5. Geographic pricing: .............................................................................................................. 23
C. ............................................................................................................................................ PLACE:
24

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 D. PROMOTION: .......................................................................................................................... 26
1. Promotion Mix Strategy ........................................................................................................ 26
2. Advertising:........................................................................................................................... 26
3. Sales promotion: ................................................................................................................... 27
4. Direct marketing: .................................................................................................................. 27
5. Public Relations: ................................................................................................................... 28
VIII. Control Program........................................................................................................................ 29
IX. Control program: ....................................................................................................................... 29
X. Reference: ..................................................................................................................................... 30
XI. Appendix:.................................................................................................................................. 30

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 I. Executive Summary:
The marketing plan is used for Gloria Jean’s Coffee from the end of September of 2009 to
the end of September of 2010. Gradually, the marketing plan will guide the company to
achieve its goals by researched and logical methods. Furthermore, the company desire to
create a joyful and passionate working environment and to be an excellent coffee supplier and
service provider in Vietnam. As the result, these main points have to be the company main
objectives which will lead them to the success. In addition, Gloria Jean’s Coffee also plan to
get 15% market share and grow the current sales up to 30% from the end of September of
2009 to the end of September of 2010

Particularly, the marketing plan will evaluate the market’s opportunities, threats through
analyzing its strengths and weaknesses and researching the domestic micro and macro
environment. Thus, a sufficient understanding of market will guide the company to be a
leader of the market.

In 4P marketing mix strategy, every single aspect is researched and planned in details to
guarantee consistence between marketing plan’s main subjects. In pricing strategy, the
company imports all coffee beans from Australia so the staff has to apply variety of pricing
strategy to set appropriate and reasonable prices. There are “Cost based pricing”, “Competitor
based pricing, “Product line pricing”, “Optional product pricing“, “Product bundle pricing”,
“Geographic pricing” which the company uses to get advantage on direct competitors.

For distribution channel, Gloria Jean’s Coffee is bought by franchising pro forma, so the
company follows vertical distribution channel.

Gloria Jean’s is a large brand name in the world, but it has just entered the Vietnamese
market since 2007. Therefore, it is necessary to use line extension and brand extension for
developing its products and brand awareness. In details, Gloria Jean’s will add fruit juices
and cakes to its current menu.

In promotion, Gloria Jean’s invests its budget to advertise on magazines, sponsor to

public events, sales promotion. Furthermore, the direct marketing method is under progress to
launch in the future. Through these promotion strategies, the company desire to be a well-
known coffee brand and a successful foreign company in Vietnam.

However, the company has to face numerous of challenges when entering the market.
Firstly, it will get barrier of entrance from competitors such as Highlands coffee, Trung
Nguyen Coffee, The Coffee Beans. Moreover, high prices, new flavors and tastes will be also
an obstacle for the company. Finally, the company’s density of stores will make a boundary
of brand awareness for local customers.

This marketing plan is going to launch from the end of September of 2009 to the end of
September of 2010. The final step of this marketing plan is control program in which some
tasks will be run. These activities will reflects the efficiency of the company’s marketing plan
through results of sales, revenue, profits and feedback of customers.

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 II. Introduction:
The Gloria Jean’s Coffees is one of the most popular brand names of coffee shops in the
world, with more than 750 coffee shops in Australia and 45 countries. The company was
established in 1979 in USA and transferred to Jirek International, an Australian company in
1995, and then Gloria Jean’s has become a successful coffee shop in Australia. Moreover,
Gloria Jean’s coffee has sold 1.26 billion cups of coffee with more than $3 billion income last
year.

In Vietnam, the Gloria Jean’s Coffees was franchised by VietLifestyle JSC company in
2007. The first shop was opened in Dong Khoi street where many luxurious stores such as
D&G, Louis Vuitton, Gucci…etc have appearances. Now, Gloria Jean’s expands to the third
coffee shop which adds the total to four shops in Ho Chi Minh city and for one in Hanoi.
After two years, Gloria Jean’s has become a favorite destination of Vietnamese and
international coffee fans and numbers of new coffee shops keep increasing rapidly. However,
Gloria Jean’s still has to overcome many challenges in such a competitive coffee market in
Ho Chi Minh city. For surviving through strong competitions from Trung Nguyen coffee,
Highlands coffee or The Coffee Bean, the company has to research the market and do
marketing strategies adequately.

III. Situation Analysis:

A. Macro Environment:
1. Demographics:

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Figure 1.1

According to figure 1.1, the Vietnam population is approximately 83 millions which highly
focus from 15-39. This age range is also targeted customer s of Gloria Jean’s coffees.
Therefore, Vietnam is a potential market of Gloria Jean’s coffees shops at the moment and in
the future.

2. Economics:

Since 2000, Vietnam GDP is increasing rapidly which is reflect in consumers spend also
increased. This will offer a high opportunity for our coffee market.

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Vietnam joined WTO in 2006 let more foreign company get into the country. This made
Vietnam GDP grew in 2008 was one of the highest in the world. This is expected that people
will spent more for their life styles than needs as in the past.

However, inflation rate in vietnam is also high will increase risk that people will cut down
expenses as much as possible.

3. Natural Force
The weather of the west highland of Vietnam, which is known as “Tay Nguyen, is sunny and
dry in most of the year. Furthermore, the geological structure of this region is joined by
basalt. Therefore, coffee trees can grow very well with warrantee quality and quantity. For
sub ingredient such as milk, Vietnam milk industry is developing fast with high quality
product with competitive price to foreign producers such as Holland, New Zealand,
Australia…etc. Hence, the company has ability to reduce production cost by using domestic
materials.

4. Cultural Force
Coffee culture appeared in Vietnam in the colony of France period. At the first time, coffee
were only for the French and rich Vietnamese business men. Then, Vietnamese coffee culture
developed more by numerous of western style coffee shops such as Brodards, Ciao café…etc
were opened in DongKhoi street, a central business street of Saigon. From that time, coffee
beans have widely got close to lower classes of Vietnamese society from urban workers to
farmers. At the current, coffee is a national beverage which used by a wide range of ages of
people, jobs and purposes.

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 5. Political Force
Increase business regulation:

When customers come to the coffee shop or food shop, their rights need to be made sure that
their health are not affected and the food shop as coffee or restaurant are in response to
accomplish this goal. In addition, the coffee shop need to have 2 certificate from health
department as HACCP and Food Health Certificate. The logo, the style of shop and the menu
are registered and no shop can copy to make sure that our coffee shop always serve best
quality and safe products by these regulations.

Increase emphasis on ethics and socially responsible actions:

Every shop have own strategy to get the belief of customers. the company shows the
customers the effect of unsafe, unhealthy food. Moreover, we also show the source of
materials that we make the coffee for them, introduced the customers how to protect their life
by washing hand before eating or drinking and throw the plastic glass into the waste box. All
strategies to make us prestigious.

6. Technology:

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 In the 21st century, the development of science and technology make the life of
people is improved, so the demand of human is increasing everyday, and also demand of
enjoying the best quality of food and drink is high day by day. Most of famous coffee shops
in Vietnam are imported the coffee from around the world. Carefully sorted and expertly
roasted on our premises to bring out their unique flavors, then sealed to ensure the freshest of
coffee. After that coffee was passed a roasting process to produce finished coffee..
Furthermore, in order to attract more customers, most of coffee shops create different kinds
of mix coffee such as cappuccino. In addition, some of famous coffee brands also produce the
coffee packs that provide in the market to serve the consumers. Most of coffee packs are kept
in a paper or plastic packs that can warranty in 1 or 2 years.

B. Micro Environment:

1. Suppliers:
The difference between Gloria Jean Coffee and another coffee shop is coffee beans.
All of them are imported from Australia. This definitely brought the high quality and unique
taste that customer can not enjoy anywhere else. As the results, the Gloria Jean Coffee
became famous and high standardized services. However, substitute ingredients are like
sugar, fruit juices and milk which are available in the domestic market and passed the quality
test of the health care department, the company will choose instead of importing all the
ingredients to reduce cost.

2.. Customers
Gloria Jean’s main customer markets are people in middle and high class, most of them are
generation Y. Actually, generation Y is given money by parents, so can say that generation X
paid for that Gloria Jean’s products.

Business market: Gloria Jean’s have some products that can make at home such as Premium
Beans, Classic Beans and Flavoured Beans, so companies buy a lot of that kind of coffee for
their employees and staff. Because of that, companies will save a lot of time in go to a Gloria
Jean’s coffee shop.

3.. Competitors:
With a major of vietnam populaion, Gloria Jeans still a new brand name of coffee. the
company have to compete with other brands which were established for long time such as:

Source: Trung Nguyen coffee website

 Trung Nguyen has bee established from 1996 and one of the most famous
coffee brand in Vietnam

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 Source: Highland coffee website

 Highland coffee belongs to an American – Vietnamese and has been

established from 1998. They opened a lot of branches through Vietnam by
using demographic strategy.

Source: The Coffee Bean & Tea Leaf website

 The Coffee Bean has been established in 1963, all coffee bean are produced from
high altitude in Costa Rica, Colombia, Ethiopia and Papua New Guinea.

 Other Coffee Shops: Appeared In Vietnam for hundred years which are small and
locates in sidewalk areas. Their prices are low as level of quality.

4. Intermediaries:

Physical distribution firms

Gloria Jean’ s does not have the manufacturer to produce the coffee in Vietnam, all coffee are
imported from Australia. However the price of products they sell in vietnam is same with
price in Australia. Moreover in Vietnam they have to pay the shipping cost and tax of
shipping. So it is not the best way to sell in vietnam from importing because it cost much. It
will limit their asset to advertise and develop their shop in vietnam.

IV. SWOT Analysis:

A. Strength:
 Established in 1979, so they are really an expert in coffee industry.

 Is popular in the world by 750 shops in Australia and 45 countries.

 provides different kinds of coffee to meet the customer demand.
 Ingredients are high quality and controlled very strictly.
 The employees are trained well. Honesty and friendly are their objectives.

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  All the shops are designed in common luxurious style, customers will feel
comfortable and satisfy with free wifi.

B. Weaknesses:
 The price is quite high.
 Unpopular brand name in Viet Nam.
 Shops just exist in Ho Chi Minh City and Ha Noi.
 The product line is quite narrow and few products are not suitable for
Vietnamese taste.
 Do not have bonus or discount to attract more customers.
 Staff training is not really mentioned to satisfy clients.

C. Opportunities:
 Viet Nam is an agriculture country, the most famous products that are
exported over the world are rice and especially coffee. Coffee is grown in Tay
Nguyen can pass the highest quality standard and the company can use the
domestic coffee instead of importing to save the budget.
 Vietnamese prefer to use coffee every day, coffee is the culture of Viet Nam.
Every people want to enjoy coffee and in the market, lack of high class coffee
for business man or people like to enjoy the western coffee style.
 The machine and equipment to make Gloria Jean Coffee are imported and
produce under the latest technology that are the same ways as Australia and
United States.
 The economic of Viet Nam is increasing rapidly and the demand of customers
to enjoy the high quality from foreign brand also increase.
 Most of population in Viet Nam are young people and they are affected by the
Western lifestyle, people will easily go and enjoy coffee from Gloria Jean.
 Viet Nam joined WTO and products from foreign company can spread their
channel more easily in Viet Nam.

D. Threats:
 Many new coffee shop are opened in the center in Ho Chi Minh City and Ha
Noi as Highland, Window 4, Bud’s Café.
 The inflation over the world reduce the income of customers and they do not
often go to the luxury coffee shop.
 TV advertisement is too expensive and Gloria Jean Coffee have to change
through newspaper and magazines.
 The price of coffee, milk, sugar increase and it makes price of coffee increase,
Gloria Jean’s Coffee will face with the price from the competitors.
 Gloria Jean’s Coffee shop are often located in the central of the city, the price
of renting increase is a serious threat for the company.

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  Staff training is not easy, the behavior of staff when they serve customers very
important, when the clients do not feel satisfied, they may not come to Gloria
Jean’s Coffee again.

E. SWOT Matrix:

Internal /
Strength
External
Present cheaper price of Coffee to
serve different kinds of customers
that everyone can enjoy the
Coffee.
Opportunities Do more promotion and marketing
strategies to spread the brand
name.
Introduce more tastes of Coffee
that are suitable with Vietnamese.
Cooperate with the local coffee
company, Trung Nguyen Coffee to
supply more kinds of coffee and
Threat buy the ingredients from the
domestic supplier to reduce the
price.
Weakness
Open new shops in the big city
of Viet Nam.
Advertise the coffee of Gloria
Jean as the the first choice
when customers want the
place to enjoy high quality
coffee.
Find the location to open the
shop that is the affordable
price and maintain the price.
Join the domestic exhibition
of coffee industry to introduce
more to Vietnamese
customers.

V. Product objective:
A. CORPORATION OBJECTIVES:
According to Gloria Jean’s Australia (2009), the Gloria Jean’s Coffee aims to be the most
loved and respected coffee company in the world by providing the best quality coffee with an
outstanding personalized service in vibrant store atmosphere, base on:

 Commitment to be an excellent coffee supplier and service provider.

 Integrity and trust are basic value to build partnerships with suppliers.
 A belief in changing live and people.
 Creating a joyful and passionate working environment in the company.

B. MARKETING OBJECTIVES:
 Gain market share by 15% from the end of September of 2009 to the end of
September of 2010

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  Improve brand awareness by promotion and events sponsor from the end of
September of 2009 to the end of September of 2010
 Keep the growth rate from 4% to 6% from the end of September of 2009 to the
end of September of 2010.
 Increase current sales to 30% from the end of September of 2009 to the end of
September of 2010.

C. FINANCIAL OBJECTIVES:
The Gloria Jean’s coffee understands that a good company must have a good financial
result. Thus, financial plans and goals are really important to every activity of the company.
Moreover, customers and investors will have a creditable clue to choose Gloria Jean’s coffee
by successful financial results.

 Obtain 15% increase of revenue from the end of September of 2009 to the end
of September of 2010
 Achieve 8% increase of ROE and 5% of ROA every year.
 Restrain increase of production cost under 15% from the end of September of
2009 to the end of September of 2010.
 Maintain proportion of increase of products’ quality and growth of price
between 3%- 1% and 3%-2% from the end of September of 2009 to the end of
September of 2010.

VI. Market segmentation, targeting and positioning

A. MARKET SEGMENTATION:
When entering in Viet Nam, Gloria Jean’s Coffee has a mission statement to be the most
successful coffee company in Viet Nam; company want to bring to its customer tasty and feeling
of products including coffee, cake and modern space, which is suitable for people focus on
teenagers and middle age people. These are reasons why they pay their attention on the
subsequent market segments:

Demographic Age: company is loved by every people who enjoy coffee. However, this is more
interesting in teenagers and middle-aged people. It targets on young people in average
age from 15 - 40 years old.

Income: Gloria Jean’s set the price that suitable with people have middle or high
income, and it will be more than 5 millions. With coffee and cake, they charge
customers different price base on kind and size of their products. However, just people
have middle and high income can buy these products, lower income customer might not

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 interest in that product because of price.

Geographic This franchise is currently targeting in Ho Chi Minh city and Ha Noi city, especially focus
on Ho Chi Minh people who live in district 3, District 1 and District 7 cause of the average
income of people in those areas. However, Gloria Jean’s try to establish more coffee
shop in through Viet Nam to beat Trung Nguyen’s coffee, become the top franchiser in
Viet Nam.

Psychographic Social class: Gloria Jean’s focus on two social classes: middle and high class.

Lifestyle: company produces many kinds of products to suitable with variable life style
of consumers. People who want to enjoy a cup of coffee in a modern and comfortable
environment are customer of Gloria Jean’s. They want not only a cup of coffee or a cake
but also the service and environment around.

Behavioral Regular occasions: enjoy Gloria Jean’s Coffee when working, chatting and handing out
with friends.

Attitude toward the product: solemn and excited.

B. TARGET MARKETING:
Niche- marketing

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As we know, Gloria Jean’s is opened in vietnam in 2007 with 2 outlets in Hochiminh city. First of all
their name is famous in the world and the Gloria Jean’s in Australia has advertised by using
differentiated marketing strategy. Thus many people in the world know Gloria Jean’s fame and when
they open in vietnam, everyone have known about their name. Moreover they have just entered in
vietnam, so they don’t focus too much on marketing. And they just focus on selling and opening

BRANCH LOGO PRICE QUALITY

more franchises in Vietnam. Therefore they just use niche marketing to advertise their coffee by
using banners, discount banners in coffee shop. In addition, They have used this strategy beacause in
vietnam there are many famous coffee shops that exist a long time, so vietnam is the large market of
coffee. However they just want to use this strategy to test the market before investing more.
Moreover Niche Marketing helps them to achieve more effective and efficenct in business with the
low advertise expense.

C. POSITIONING:
There are a lot of coffee shop are running on over Ho Chi Minh City. To determine where Gloria
Jean’s standing, below is a small table that analyze coffee shop in Ho Chi Minh City.

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 Gloria Jean’s 60.000 – 100.000 High

Highland Coffee 40.000 – 60.000 Medium, high

30.000 – 50.000 medium

Trung Nguyen

The Coffee Bean

60.000 – 90.000 High

Other coffee shop 20.000 – 50.000 Low, medium

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  Image differentiation:

By offering an image of a cup of hot coffee, Gloria Jean’s make

customers always feel warm when they think about our products. the company always want
to make customers feeling as ease as they are at home when they enjoy our coffee. This
makes a strong impression in customers mind when they consider buying coffee.
 Product differentiation:

Gloria Jean’s try to provide as much kind of coffee as possible for difference segments
or even the same segment can enjoy coffee in difference ways. At the mean time, Gloria
Jean’s already had 50 kinds of coffee to serve our valuable customers.

 People differentiation:
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 All the staffs in Gloria Jean’s are trained very careful before they can face the
customers in every shop. the company provide a warm environment when customers come to
Gloria Jean’s outlet to enjoy coffee and feel as much comfortable as possible.

There are a lot of coffee shop are running on over Ho Chi Minh City. To determine
where Gloria Jean’s standing, below is a small table that analyze coffee shop in Ho Chi Minh
City.

VII. Marketing mix strategies:

A. PRODUCT
Gloria Jean’s coffee shop has quality bring out both tangible product and intangible product.
Moreover Gloria Jean’s has characteristics of convenience products that the customer buying
behavior is frequently purchase with a low price and convenient locations. And they just use the
micro promotion to advertise their products

Three levels of products:

Core benefit:

The Core benefit of Gloria Jean’s is drinking, enjoying, relaxing, entertaining and propriety.

Actual product

Knowing the characteristics of core benefit of Gloria Jean’s product that means we can know how
the value of product from Gloria Jean’s supply to us. After that the consumers should know the
actual products of Gloria Jean’s in order to know the quality, brand name, feature, design and
packing to supply successfully to the customers.

Brand: Gloria Jean’s coffee shop is the famous brand name coffee shop in Australia. They
have opened first in Australia, after that they have opened many brands in many countries in the
worlds such as New Zealand, USA, Canada, and Vietnam….Symbol of Gloria Jean’s Is a cup of coffee
which has a smell spreads that means in Gloria Jean’s always supply to customer the perfect coffee.
Furthermore Gloria Jean’s has the rule that they mix cup of coffee from 23 to 27 minutes. Below 23
or above 27 minutes, that cup will not give to the customer

Packaging: if the customers want to enjoy coffee outside, Gloria Jean’s has a glass by paper
and they have bags are whisked around the country to their stores so that their guests can enjoy the
freshest espresso. That is the way to packaging in Vietnam. Furthermore, in Gloria Jean’s also they

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sell many kinds of coffee that contain in packs in order to server customer at home who want to mix
coffee themselves and don’t have free time to go Gloria Jean’s coffee shop

Design:

Gloria Jean’s coffee is contained in nice cups to attract customer and they will feel relaxing
when enjoying the coffee at Gloria Jean’s coffee shop. Moreover the coffee packs that various kinds
of coffee with different designs on the wrapping with the symbol of Gloria jean, the kind of coffee
inside packs and the modern view to attract customer. In addition, Gloria Jean’s send to the
consumers the modern and best quality coffee of Gloria Jean’s in their design.

Quality:

“All products of Gloria Jean’s is imported from around the world, the highest quality Arabica
beans arrive in Sydney roasting plant, each bringing their own distinct flavor and aroma from their
region of origin. Carefully sorted and expertly roasted on their premises to bring out their unique
flavors, they are then sealed to ensure the freshest of coffee for guests. After that they supply coffee
to outlets in the world. So the quality of Gloria Jean’s is the best coffee” (Gloria Jean’s Australia,
2009)

Features:

In Vietnam, Gloria Jean’s coffee shop deliveries the hot drinks (Classic Coffee, Specialties
Coffee, Tea and Hot Chocolate) and cold drinks (Coffee Over Ice, Espresso Chiller, Mocha Chiller,
Chocolate Chiller and Fruit Chiller) which each kind has various drinks. Beside this in other countries,
Gloria Jean’s supply the Gloria at home products with coffee packs. Moreover Gloria Jean’s sell
travel mugs, rainforest alliance mugs, tea and coffee accessories. In addition Gloria Jean’s sell the
coffee machines in order to serve the customers can have the best quality machine to mix coffee. (
See in appendix 1)

Improvements:

 In Vietnam Gloria Jean should supply more the coffee pack to sell to resellers to
open the market and consumers.
 The coffee packs should made by paper or the products can be recycled to protect
the environment.
 They should have many kinds mix of coffee to attract more customer
 The coffee products should make to be more art and more color to attract the young
customer, because the young customers like drinking coffee are many

Augmented product:

All products from Gloria Jean’s are imported directly from Australia and most products have
guarantee one year in the packs. Moreover all products from Gloria Jeans are examined by the
Vietnamese Health Department. Furthermore in Vietnam they have the customer service centre to
protect the consumers. In addition, the coffee packs have a date of production and one year
guarantee. Gloria Jean’s always hope delivery the best quality for the customers to enjoy. In the US,
they have the website of Gloria Jean’s that the customer to order online through internet.

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 Improvements:

 Gloria Jean’s in Vietnam should have the website to advertise products and has the
shopping online in the website to delivery to the customer easily
 They should have the hotline number of service centre to ensure interests of
consumers
 Imported any kinds products of coffee to serve for all of ages ( decaffeinated, flavor
and black coffee) in order to protect the health of customers

Brand development

In Vietnam market, Gloria Jean’s apply two strategies of brand development that are line
extension and brand extension. There are many various kinds of flavors in line of all coffee products
in Gloria Jean’s

With line extension strategy, Gloria Jean’s has a list of menu that includes classic coffee with
the main flavor is coffee and the mix of coffee and milk. Moreover they create the coffee with the
taste of Italian and some line of products is high flavor of coffee to serve who one wants to enjoy.
They sell existing products in the Hochiminh market to explore the market in Vietnam before
opening in other cities in Vietnam by using their famous products. As Gloria Jean’s is the famous
brand coffee in the world so they want to everyone know about their products, That is a reason why
they build their brand name to be famous with their products by using the market development
strategy in the other markets in the world.

Gloria Jean’s also use the brand development to attract more customers by selling other
products. Gloria Jean’s see the demand of customers that whenever they come to the coffee shop,
firstly they want to sit at the comfortable, modern and convenience place. Secondly they want to
enjoy the famous coffee, but nowadays there are many business women in here and some of them
do not like coffee, so the Gloria Jean’s supply the fruit juice. Moreover many guests come to Gloria
Jean’s also want to something to eat, thus Gloria Jean’s create different delicious cake. In addition,
Hochiminh city is a busy city, and there are many young teenagers like going coffee shop to talking
with friend, so the part of customers are teenagers and Gloria Jeans supply for them the mix of
coffee, milk, fruit and cream. Especially, Gloria Jean’s sell their own vacuum tumblers and mini
machines that consumers can mix coffee at home and office. As a result, Gloria Jean’s still in the
market but open the products to attract any kinds of demands’ consumers. (See in appendix2)

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 B. PRICE:
1. Competition Based Pricing:
In coffee industry in Ho Chi Minh City, price of products is an effect each other by some
main brands name of coffee like Trung Nguyen, Highland and Gloria Jean’s. By using
competition-based pricing strategy, Gloria Jean’s set the price while comparing with their
main rivals in the market and make sure that is the most suitable price.
When setting the price base on “more for more” strategy, consumers will pay more for Gloria
Jean’s products than others in coffee industry but the quality is higher. When doing that,
Gloria Jean’s will not be affected much by the decreasing of price of their competitors, but
they will charge customer more if their competitors such as Highland increase the price. For
Illustrate, Highland Coffee have cappuccino with the price is around 30.000VND to
40.000VND per cup but Gloria Jean’s set the price is around 60.000VND to 120.000VND up
to the size.
Competition-based pricing help Gloria Jean’s Coffee put prices more flexible with their
competitors and it does not requirement to do market research such as advertising or demand
of people. Moreover, this pricing policy may also help Gloria Jean’s set their products price
easier cause staffs of Gloria Jean’s just do market research of their competitor’s price and
then charge the price a little bit higher. This action also helps create an image in people mind
when day design to drink what coffee’s brand. For instance, when they see that Gloria Jean’s
set a price higher than others coffee company, they would think that coffee which make from
Gloria Jean’s has a better quality than others. As the result of that, when setting the price
higher than competitors, Gloria Jean’s has a competitive advantage and it makes their profit
increasing.

2. Product Line-pricing:

According to “new product development” (n.d), this is important for business to release a
new kind of product base on the old one to keep up with rivals and increasing market shares.
When applying this theory and product line –pricing strategy, Gloria Jean’s try to create more
kind of coffee for people. Actually, the price of each kind of product is a little bit different
and normally the new products are stetted the price higher than the old products. For instance,
in hot drink we have coffee latte and coffee mocha, actually this is use the same main coffee
is espresso but mocha coffee is a development product so they set the price higher, about
5000VND to 10000VND.

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 3. Optional product pricing:
This strategy is usually use for car or electronic industry but Gloria Jean’s can also apply
this strategy in to their business. People who come to a Gloria Jean’s Coffee shop are already
wanting a cup of coffee that make by that company but they also have different taste, too. For
example, someone like more milk or someone likes more cream than normal. So they can
offer employees in Gloria Jean’s put more what they want into their coffee and they will be
charged as a higher price than a normal. For example, company have flat white is the mix of
espresso and steamed milk below a thin layer of smooth silky milk, but if customer want more milk
or coffee, Gloria Jean’s will charge 10.000VND to 20.0000VND higher. This strategy has an
advantage point that Gloria Jean’s can serve their customer whatever they like, make
consumers more please and feel good about this coffee company. Furthermore, Gloria Jean’s
can get a little bit higher prices for their product when using this strategy.

4. Product bundle pricing:

Product bundle pricing is becoming a popular strategy nowadays and Gloria Jean’s
applies it in a suitable way, too. All of thing Gloria Jean’s does is put their products into “set”
or “combo” such as “combo A” have cappuccino and cake but the price for that combo is
90.000VND, which is cheaper than when consumers buy each product individually,
75.000VND for macchiato and 30.000VND for a cake. The reason why Gloria Jean’s does it
is they want customers buy more their products and feel that they get benefit from buying a
“group” of products like that. Therefore, product bundle pricing can increasing Gloria Jean’s
profit and make people who buy the products feel that it is cheaper so they can save money.

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 5. Geographic pricing:
Gloria Jean’s now has 5 coffee shops in Vietnam: 4 in Ho Chi Minh City and 1 in Ha Noi
City; however, this company charges their customers different price base on where they enjoy
Gloria Jean’s coffee. For instance, a cup of coffee in District 7 are likely 10.000VND higher
than the same cup of coffee in District 1, it mean 80.000VND up to now, both stores are
located in Ho Chi Minh City. The reasons for that different price may cause of the different
of target segments and different suppliers; actually, Gloria Jean’s always try to set the same
price of their products like any franchises company such as Highland Coffee or KFC
restaurants. However, that differentiation may cause a little bit specialization for both Gloria
Jean’s and customers make them feel separate from another.

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 C. PLACE:

Vertical
Distribution
System
Australia

Gloria Jean's
in Vietnam

Outlet in Outlet in Outlet in

District 1 District 3 District 7
At the moment, Gloria Jean’s has applied the vertical distribution system. It has opened
as the franchise organization that was bought by Phong Cach Song Viet Company. The
Partner in business is head office of Gloria Jean’s in Australia; they supply service from firm-
sponsored to retailer franchise system. Because Gloria Jean’s is the famous brand name in
coffee in the world but it still not open in Vietnam, so Phong Cach Song Viet Company want
to try the name of foreign coffee to Vietnam. Moreover Gloria Jean’s in Vietnam opens at
district 1-the centre of Hochiminh City, so many people love coffee that know about their
fame. And because opening in the centre of Hochiminh city, so there are many people and
tourists that come to Gloria Jean’s coffee shop. Furthermore in district 1 is the busiest district
and concentrates many departments, building and shopping centers, so with a convenient
place and a famous name that make the distribution of Gloria Jean’s in Vietnam are
developing year by year. The result is after 2 years Gloria Jean’s in Vietnam has opened more
2 outlets in district 7 and 3. Gloria Jean’s always choose the convenient and crowded place
that have many departments and shopping centre, because it can help them to increase the
sale and that is also the marketing method- mouth of word- in order to promote Gloria Jean’s
to everyone

Current address of Gloria Jean’s in Ho Chi Minh city:

1. 131 Đồng Khởi, Bến Nghé Ward, Distrcit 1

2. 106 Nguyen Thi Minh Khai, Ward 6, District 3
3. Grandview building, Phu My Hung, District 7

24
 Australia

Gloria Jean's in
Vietnam

Selling online Direct selling at

through telephong Gloria Jean's coffee Retailers Resellers
and internet shops

Consumer Consumer Consumer Consumer

Segment 1 Segment 2 Segment 3 Segment 4

Hybrid marketing channel

In the future, Gloria Jean’s should apply the hybrid marketing channels to develop the name
of their coffee in the market. Because Vietnam is developing year by year, so the life of everyone
also develops and demands of people is increasing. Besides, enjoying the coffee at Gloria Jean’s
coffee shop many people want to drink coffee at home to enjoy, especially business man and
woman want to drink coffee when they work at night. Thus Gloria Jean’s should build the selling
online through the telephone especially in the internet because most of people now go to the
internet everyday. That is one of the best methods to increase their sale and service. In addition,
Gloria Jean’s should import coffee packs to Vietnam and supply it to resellers such as
supermarket, because of this they can open more market in Vietnam and day by day everyone in
Vietnam will know and enjoy their coffee. Furthermore, Gloria Jean’s Vietnam can sell their
coffee to other coffee shop to everyone can enjoy their coffee everywhere.

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 D. PROMOTION:
1. Promotion Mix Strategy

The Pull Strategy

The Gloria Jean’s chooses “Pull Strategy”. While doing “Pull Strategy”, the Viet lifestyle
company which is in charge selling brand franchise, will advertise through traditional and
alternative media such as newspapers, magazines and internet. In addition, Viet lifestyle
usually does large sales promotion for new opening stores to attract customers. Moreover, the
company also tries to contribute its successful business to the local society by sponsoring for
charities and events.

Although, Gloria Jean’s is a new entrance in Vietnam market, many coffee fans are coming
to Gloria Jean’s stores in Hochiminh city and Hanoi. However, the company still has to
overcome many barriers of entrance from existing competitors such as Trung Nguyen and
Highlands coffee. It also leads the company to push their promotion strategy ahead by more
impressive and aggressive.

2. Advertising:

A Pattern of Gloria Jean’s Coffee Advertisement

Gloria Jean’s selects “image” as their main language in designing the advertising
message.

 Magazines: Consumers will see an advertising pattern whose content

is a hot and attractive mocha coffee cup with smoke over head in a
quite brilliant decoration coffee store. In addition, the company also
uses informative advertising to promote in the internet. The key is they

26
 choose high viewers ranking magazines to post PR articles which
include the company’s background, fame and special coffees of Gloria
Jean’s.

3. Sales promotion:
Gloria Jean’s uses two types of sales promotions which are determined as
temporary and permanence.
 Temporary promotion: the company usually releases the promotion
for special events such as launching a new product or a new opening
store. For every 2 months, Gloria Jean’s will add a new kind of coffee,
tea or cakes in their menu. In order to increase sales, Gloria Jean’s
combines the new kind of coffee with a existing or new cake whose
total cost is lower than buying separatedly. Furthermore, Gloria Jean’s
also offer a 30% off for a new kind of product for small or medium
size. Typically, customers tend to try a new product because of a
cheaper price. In a case of their new store in Lotte Mart, Gloria Jean’s
is willing to reduce 50% off of every kind of coffee, tea and cakes for
any customer represents Lotte Membership’s Card. As the result, Lotte
Mart consumers have intention to buy drinks from Gloria Jean’s than
other adjacent coffee shops.
 Permanent promotion: Gloria Jean’s applies “10 for 1 free”
program. It means that for every 10 coffee or tea cups purchased at any
time and for any kind of, customers will receive back 1 free medium
cup of coffee. Thus, Gloria Jean’s attract many customers, especially
crowded group of people and loyal customers who usually put Gloria
Jean’s as their “coffee homes”.

4. Direct marketing:
Gloria Jean’s company will create a new catalog which contains full menu of
coffee, tea and cakes. The catalog will be also made in two versions which are papers
and digital. Furthermore, the company public relations department will send the
catalog to target customers such as managers, business men, international schools and
universities. Moreover, the company will set “internet and telephone order” in the end
of September of 2019. In the catalog, customers may find information of ingredients,
flavors and origins of all kinds of Gloria Jean’s coffee, tea and cakes. Gloria Jean’s
aims to upgrade a advantage step of service and quality which customers easily select
their favorite and avoid untended allergies.

27
5. Public Relations:
Although, Gloria Jean’s is a new entrance, they are trying to adapt to Vietnam
culture and society by some programs from the end of September of 2009 to the end
of September of 2010:

 Promotion Girls: the company will recruit 10 groups of PG which have 4-

5 PGs in every group. Then, they are sent to large supermarkets in
Hochiminh city such as Co-op mart, Maximart and Lotte Mart. PGs will
invite customers to try new products and operate small lucky draw. To
build brand awareness and make public attention are aim of this activity.

 Charity: the company understands a necessity of contribution to the local

society. As the result, the company will take a part of this annual budget to
sponsor for some charity programs which support finance for poor students
from the end of September of 2009 to the end of September of 2010.

28
 VIII. Control Program

IX. Control program:

The marketing plan will be processed from January of 2009 to January 2010. The control
program is one of the most important parts which will stick all departments of the company to
process tasks together and ensure the success of company’s objectives:

 Promotion Girl:

Most of coffee drinkers are male and to attract more clients, the company has a special promotion
that using the promotion girl. Young and cute girls will be chosen and these girls will stand at the
crowded places as big supermarket: Coopmart, Citimart or Metro and the office that most of people
work. The shop will put the mix coffee machine at those places and people will be invited by the
promotion girls to enjoy hot coffee with high quality of Gloria Jean, people can enjoy and give the
feedback about the taste of coffee. Base on these feedback, the shop will improve the quality and
produce more tastes of coffee that are suitable for most of people. The task of the girls is that they
will attract people come to Gloria Jean Coffee kiosk and introduce the history also the products of
Gloria Jean coffee, these girls wear formal clothes because the potential customers of the company
are high class people.

 Membership card

29
The same as other company, Gloria Jean Coffee will have many benefits for closed customers that
use the products for a long time. When people come to the shop, the shop will give a card for
customer, one time user drink coffee at the shop, people will receive 1 tick and 20 ticks, people will
have a member card of Gloria Jean Coffee. People will have many bonus and discount when
customers have member card, diamond card will be reduced 20%, gold card is 15% and silver card is
10%. If people become a close customer, customers will have many advantages as people can test
the latest coffee and can join every activities of the shop as party night or picnic. In addition, when
people have member card, people will also be reduced the price when they come to another
restaurants that Gloria Jean is the partnership as Kfc or Lotteria. Company hope with this program,
many customers will come to the shop.

 Happy Family:

Happy family is the program for a group of customers. When 10 people or more come to the shop,
customers will be reduced 10% on the bill and received free 1 pack of coffee. The shop will have
more profit with a group of people more than the individual client. In addition, in the middle day of
week, people do not often come to enjoy coffee, the shop also have a bonus that people will be
received 1 free pack of coffee when people buy with the value is more 80.000 VND. Moreover, the
shop also celebrate funny activities for child to attract parents let their children go to the shop. The
competition between families also mentioned to spread the brand name more closer to customers,
every family can join and mix the coffee together, the prize will be belonged to the family that they
have a special way to mix the most delicious coffee. The shop has a plan that every day of week, the
shop is always crowded.

X. Reference:
1. The Nielsen Company, 2008.” Vietnam Grocery Report 2008”. [pdf]
Available at:
http://vn.nielsen.com/site/NielsenVietnamGroceryReportOctober2008.pdf[Accessed 20
July 2009].
2. The Gloria Jean’s Coffee Australia, 2009, “Our Commitment”, viewed in 09 September
2009 http://www.gloriajeans.com.au/ourStory/ourcommitment.aspx
3. The Gloria Jean’s Coffee Australia, 2009, “Make A Great Coffee”, viewed in 09
September 2009
<http://www.gloriajeans.com.au/aboutgreatcoffee/makeabettercoffee.aspx>

XI. Appendix:
Appendix 1:

PRODUCT FEATURE PACKING PRICE

Cappuccino The famous and It is the hot drink so
popular mix coffee in it is contained in cup
the world. Rich, or paper cup of
creamy flavor with a Gloria Jean’s
hint of cinnamon. Its
formula is espresso

30
 and steamed milk
beneath dense
velvety smooth milk.
It makes everyone
feel sweet and
satisfying.

Caffe’ Latte That is the espresso It is the kinds coffee

and steamed milk of hot drink and is
below a thin layer of contained in cup or
smooth silky milk paper cup of Gloria
Jean’s

Flat white It is espresso and It also contains in the

steamed milk. It cup of coffee or can
create the plain and be contained in
simple feeling for paper cup to
customer everyone can go
outside and enjoy
Long Black Freshly heated water It is the hot drink so
added to espresso it is contained in cup
resulting in a full- or paper cup of
flavored coffee. It is Gloria Jean’s
mixture of bold and
black coffee. It is for
who wants to enjoy
the charming taste of
coffee
Short Black Gloria Jean's Special It contains in the cup
Espresso Blend of coffee or can be
coaxed to yield the contained in paper
essence of fine coffee. cup to everyone can
Wonderfully intense go outside and enjoy
and aromatic.

Ristretto(Italian for The first 15-20ml of The volume depends

‘restricted’) the espresso on the cup of coffee
extraction for the that contains it.
sweetest, purest and Always 15-20ml in a
most intense coffee. cup

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Macchiato It is an espresso with It contains in a cup of
dollop of velvety milk coffee.
foam

Piccolo latte That is a mini version It also contains in the

of café latte. A single cup of coffee or can
Ristretto layered with be contained in
a small amount of paper cup to
creamy steamed milk. everyone can go
outside and enjoy

Caffe’ Mocha It is the kind rich It contains in a cup of

chocolate, espresso coffee.
and steamed milk
finished with whipped
cream and chocolate
sprinkles

Caramelatte A classic Gloria Jean’s It contains in a cup of

favorite. Delicious coffee.
toasty, buttery rich
caramel syrup added
to Caffe Latte then
topped with creamy
caramel sauce

White Chocolate Mocha Sweet, tempting fine It contains in the cup

white milk chocolate, of coffee or can be
espresso and milk contained in paper
topped with whipped cup to everyone can
cream and chocolate go outside and enjoy
sprinkles.

Irsih nut crème An indulgent blend of

Irish Crème and
Hazelnut syrup,
delicate white
chocolate, espresso

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 and milk. Finished off
with whipped cream
and green sprinkles
for the luck of the
Irish

Very vanilla latte The smooth, aromatic

flavor of vanilla
combined with
espresso and milk,
topped with whipped
cream

Minicino It is a great before

and after school
delight for primary
school aged kids. That
is a small cup of
steamed milk flavored
with Caramel, Vanilla
or Strawberry syrup
Babycino It is perfect for It is contained in a
sophisticated pre- piccolo cup
schooler. That is
simply warm milk and
dollop with of milk
foam.

List of Tea

English breakfast
Green Tea
Earl Grey
Peppermint
Darjeeling
Assam Organic
Ceylon Orange Pekoe
Ceylon decaffeinate, Chamomile

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 Chai Tea Latte

Other drinks

Fruit chiller
Italian Sodas
Fruit Smoothies

34