URGENT PLEASE : This is the case study and below there are questions related to the case study.

QUESTION:

1. Identify the product mix/lines of Saigon Coffee and the target market for each of the product line.

Coffee culture is growing in Vietnam as retailers are seeking new ways to improve quality and enhance product reputation in the country. For the Vietnamese, coffee provides not only energy but also a way of life. Coffee outlets range from counters with plastic stools on the sidewalk to contemporary cafes with roasters on the premises. When you ask anyone about their favorite coffee, various top brands may be mentioned including Starbucks, Nescafe, Coffee Beans, or Tully's Coffee. However, for the Vietnamese, or foreigners who have lived in Vietnam or spent a significant amount of time there, there is a favorite choice: Saigon Coffee. Introduced to the market in 1996, Saigon Coffee is the most sought-after coffee brand among consumers in Vietnam. The signboard of a Saigon Coffee is one of the most prominent features in the streetscape of every city in the country. It has established itself as a leader in the local coffee industry, expanded to other countries in Asia, and brought its unique blends to other markets in the Western world. What is the story behind the success of this brand? The story dates back to 1996 when four founders started the Saigon Coffee company in the highland region of Vietnam. Back then, the company was just a small coffee-roasting house operated by four people. With the vision of creating a famous coffee brand name, the young entrepreneurs wanted to introduce authentic Vietnamese coffee to the whole world. When the founders established Saigon Coffee, they soon realized the need to reach out to the public with their new brand. Borrowing money from family and friends, they set up a coffee shop in a busy commercial area of Ho Chi Minh City. Two years after its inception, Saigon Coffee entered the biggest market in Southern Vietnam; not long after that, the brand created a so-called "Saigon Coffee phenomenon in this vibrant and competitive city. People were amazed with the new coffee lifestyle that Saigon Coffee introduced and were captivated by the rich, authentic Vietnamese coffee it offered. Subsequently, with its slogan of "Explore creative inspiration," the company expanded to other provinces and cities across the country. Saigon Coffee is the number one brand in Vietnam and it is estimated that 11 out of 17 million Vietnamese households have purchased Saigon Coffee products. Saigon Coffee opened franchise coffee shops in Thailand, Japan, Cambodia, and Singapore, and today, Saigon Coffee is shipped to 60 countries, including Western markets such as the U.S., Canada, France, Germany, and England. Bringing the coffee to the world, the company management not only wants to promote the product itself but more importantly, to disseminate the image of Vietnamese coffee, and the cultural and spiritual values of the nation. The company's mission statement is: "Creating the leading brand by bringing to everyone in drinking coffee a source of creative inspiration and pride of Saigon Coffee style that is rich in Vietnamese culture. With the vision of becoming a major force in boosting the Vietnamese economy; upholding stability of the national economy; partaking in the establishment of a Great Vietnam, with hopes of discovering and conquering new ideals," Saigon Coffee products account for about 60 percent of the one million tons produced annually and is the country's leading exporter of coffee. Vietnam, with a history of coffee cultivation dating back to the 18th century, is now the second largest producer of coffee in the world, after Brazil. CORPORATE VALUES Saigon Coffee understands and honors its five core values, namely grand desire, inspired creativity, national spirit, practicality and sustainable development strategy. In particular, the company strongly encourages value in creativity among its consumers as well as employees, promotes Vietnamese cultural and spiritual values, and participates actively in improving the welfare of the community and the development of society. At the center of Saigon Coffee's core philosophy is a desire to improve the lives of coffee growers as well as the community in the highlands. Because of this philosophy, Saigon Coffee does not purchase green coffee beans only as a commodity. Saigon Coffee purchases beans from contract growers and farmers who are provided with material support, and green coffee beans are bought at well above commodity traders' prices. In return, every grower must meet all the protocols set down by EurepGAL, a Swiss based standard for socially and environmentally sustainable agriculture. To date, Saigon Coffee is the only Vietnamese coffee manufacturer to be awarded the EurepGAR certificate. Furthermore, Saigon Coffee places great emphasis on practicing corporate social responsibility (CSR) and contributing to the community. It has been supporting numerous initiatives to promote entrepreneurship in Vietnam. Some examples include campaigns called "Creative for Vietnam Branding, Building Brands for Vietnamese Agriculture Goods," and sponsorship for the famous "Apprentice" TV show, a program designed to showcase entrepreneurial talents. PRODUCTS Saigon Coffee offers a variety of coffee products including roasted as well as instant coffee. Each category targets different consumer groups and also provides coffee drinkers with a variety of choices and a wide assortment of flavors. Roasted Coffee Saigon Coffee's roasted coffee is sold in ground or bean forms. The ground coffee is sold under different brands (Saigon Creative One to Saigon Creative Five), each with different flavors and different caffeine levels, mostly in 250-gram packaging but with a select few in 340-gram packaging. Saigon also offers coffeehouse ground coffee blends under the brands of Saigon Gourmet Blend, Saigon Premium Blend, and Saigon Buon Ma Thout Special, all in 500gram packaging. The bean coffee is sold under different brands (Saigon Drip No 1 to Saigon Drip No 8 and Saigon Drip Espresso Buon Ma Thuat), each with different flavors and all in 1,000-gram packaging. Low Caffeine Coffee Passiona coffee is naturally low caffeine coffee using selected Arabica and Chari beans. It comes in two forms of roasted coffee beans and instant coffee (both in 250-gram packaging) to cater to different segments of coffee drinkers. Saigon Passiana roasted coffee is a good choice for first-time coffee drinkers. Passiona, coffee is a product designed especially for women. Understanding its female customers' perception about the effects of coffee on their complexion, Saigon formulated Passiona with a special recipe to help enhance the skin complexion and deliver an exceptionally enchanting flavor. Thanks to the breakthroughs of top coffee specialists, Passiona is the first coffee in Vietnam to use dietary sugar. It is also the only coffee enriched with Collagen, Vitamin PP, and rare oriental herbs, which help the skin become more beautiful and healthy. As a special product made exclusively by the company, Saigon Passiona brings about alertness, concentration, and a beauty benefit to women. For those who seek convenience, G7 Passiana uses the same coffee ingredients to produce low caffeine instant coffee. Weasel Coffee Saigon offers weasel coffee, which is produced by a wild weasel, native to the area, that lives on coffee plantations, eating the best and ripest coffee cherries. Its gastric juices alter the taste of the coffee and give it a unique chocolaty, earthy flavor. Vietnam is one of the few countries in the world that has this rare coffee. Saigon has been raising weasels on coffee plantations, giving them a safe environment in which they can enjoy their favorite fruits and continuously produce this unique type of coffee. Saigon Weasel coffee comes in 250-gram packaging with a high price at around US$350 per kilogram. Saigon's scientists in Europe have developed an enzyme treatment process that mimics the changes produced in the coffee beans by the weasel. This coffee is just as good as the genuine weasel coffee but is only sold for a tenth of the weasel coffee price. Saigon Legendee coffee is offered under Saigon Classic Legendee as whole beans in 250-gram packaging, and Saigon Legendee, Gold as ground coffee in 250-gram and 500-gram packaging. The special process used in making this coffee seems to release a whole spectrum of flavors that normally lie dormant. Rich and complex, this coffee is superb when served hot, sensational when served iced, and is certainly one of the finest coffees in the world. Instant Coffee In an effort to diversify its products and increase market share, G7 Instant Coffee was launched in November 2003, and was the first instant coffee product offered by the company. During the launch, G7 Instant Coffee was established as a "preferred brand" over Nescafe, one of the most popular brands of instant coffee, through a blind taste test and a voting system. With a total of 13,000 respondents, 89 percent voted in favor of G7 Instant Coffee, while 11 percent chose Nescafe. Offering a variety of product types including G7 Instant 3-in-1, G7 Mocha, G7 Cappuccino, G7 Hazelnut, and G7 Pure soluble coffee, G7 Instant Coffee caters to coffee lovers who wish to enjoy the unique aroma of Saigon coffee but cannot afford the time needed to roasted coffee. SAIGON'S SPECIAL COFFEE FORMULA The special formula lies in four elements: quality ingredients, modern technology, Vietnamese traditions, and a new concept of coffee. This formula has changed the philosophies of many European and American coffee firms that have dominated the world coffee industry for a long time. Quality Ingredients Saigon Coffee uses beans from four of the world's tastiest coffee zones: robusta, coffee grains, famous in Vietnam and rated the most delicious in the world with strong taste and flavor; Ethiopian beans, the origin of coffee; Arabica grains from Jamaica; and Brazilian coffee beans. Modern Technology and Vietnamese Traditions The combination of state-of-the-art technology with Vietnamese traditions is unique in Saigon Coffee. The company possesses world-class production facilities and receives environmentally friendly technology from world-class manufacturers. The Vietnamese traditional component is the blending of rare medicinal herbals, special sources of energy from gemstones, and special ingredients. A New Concept of Coffee Saigon Coffee does not see coffee as a normal drink, but as an energy drink that enhances brainpower, serves as a source of creativity, and fuels the knowledge economy. BRAND VALUES Inspired Creativity Can a cup of coffee inspire creativity? Saigon Coffee believes that "Coffee is compared to the blood of the knowledge economy in the way that oil is compared to the blood of the industrial economy." It also believes that "coffee is a second language, connecting passion and cultural values." With this view in mind, one of its management philosophies is to create special coffee spaces to provide coffee lovers with intensive experiences with culture and spiritual values, thus stimulating creativity. May 2009 witnessed the opening of the Saigon Creativity Coffee House in Hanoi, the capital of Vietnam. According to both consumers and the media, Saigon Creativity Club House is an interesting innovation. "The club house features beautiful space, oriental arrangement, and impressive coffee." At the club house, foreigners can enjoy the true taste of Vietnamese coffee while at the same time, experience Vietnamese coffee cultural events such as literary and artistic exhibitions. Intellects and artists see this as a good place to join cultural and artistic activities, and to present paintings, photos, and sculptures. One government official expressed his feelings at his first taste of Saigon Coffee at the Creative Coffee House as "the most delicious coffee" because he could enjoy it in a beautiful, sentimental, and creativity motivated ambience. New Coffee Lifestyle Saigon Coffee seeks to expand and bring to the world the best coffee from Vietnam. But more importantly, the message that Saigon Coffee wants to convey to the consumers through its coffee is the style and culture of Southeast Asia and especially Vietnamese coffee growing, brewing, and enjoyment. Vietnamese coffee is well known for its unique brewing style, in which the roasted coffee beans are placed in a filter, boiled water is poured through it, and the coffee slowly emerges, drip by drip. Drinkers enjoy the anticipation as the pleasant coffee aroma dissolves into the air while they wait for the coffee. Saigon Coffee puts it aptly, "Vietnamese coffee and tea are not just products. They reflect a lifestyle that takes pleasure in the small things that enrich our lives." This also reflects a more thoughtful approach to beverages such as coffee and tea, in which the brewing is part of the contemplative enjoyment of the drink. In today's fast paced world of "grab a coffee to go," Southeast Asian coffee style, especially Vietnamese coffee, is a refreshing and interesting alternative. Just like the tea ceremony of the Japanese, or a slow-pour Guinness to an Irishman who understands that Guinness is not just a beer, a cup of Vietnamese coffee deserves a little time set aside for an experience whose essence and flavor will carry with coffee drinkers through the day and beckon them to come back for another cup. Saigon believes that coffee is not a normal drink; "just as tea drinking is an art and a philosophy, so too can coffee be brought to another level." Variety Saigon Coffee brings to the market a wide range of products and therefore is known for its variety and diversity. To a certain extent, this may confuse consumers because they may not know about all of these products and may not be able to distinguish among them. However, Saigon Coffee believes that different consumers have different tastes and prefer different levels of caffeine, and hence seeks to create many products of special value catered to specific consumer groups. Moreover, this belief is associated with the Vietnamese culture. Because coffee was introduced to Vietnam by the French colonists in the late 19th century, the diversity of style has become as much a part of Vietnamese coffee culture as in the wine industry in the Western world. 1 11 Vietnam. According to both consumers and the media, Saigon Creativity Club House is an interesting innovation. "The club house features beautiful space, oriental arrangement, and impressive coffee." At the club house, foreigners can enjoy the true taste of Vietnamese coffee while at the same time, experience Vietnamese coffee cultural events such as literary and artistic exhibitions. Intellects and artists see this as a good place to join cultural and artistic activities, and to present paintings, photos, and sculptures. One government official expressed his feelings at his first taste of Saigon Coffee at the Creative Coffee House as "the most delicious coffee" because he could enjoy it in a beautiful, sentimental, and creativity motivated ambience. New Coffee Lifestyle Saigon Coffee seeks to expand and bring to the world the best coffee from Vietnam. But more importantly, the message that Saigon Coffee wants to convey to the consumers through its coffee is the style and culture of Southeast Asia and especially Vietnamese coffee growing, brewing, and enjoyment. Vietnamese coffee is well known for its unique brewing style, in which the roasted coffee beans are placed in a filter, boiled water is poured through it, and the coffee slowly emerges, drip by drip. Drinkers enjoy the anticipation as the pleasant coffee aroma dissolves into the air while they wait for the coffee. Saigon Coffee puts it aptly, "Vietnamese coffee and tea are not just products. They reflect a lifestyle that takes pleasure in the small things that enrich our lives." This also reflects a more thoughtful approach to beverages such as coffee and tea, in which the brewing is part of the contemplative enjoyment of the drink. In today's fast paced world of "grab a coffee to go," Southeast Asian coffee style, especially Vietnamese coffee, is a refreshing and interesting alternative. Just like the tea ceremony of the Japanese, or a slow-pour Guinness to an Irishman who understands that Guinness is not just a beer, a cup of Vietnamese coffee deserves a little time set aside for an experience whose essence and flavor will carry with coffee drinkers through the day and beckon them to come back for another cup. Saigon believes that coffee is not a normal drink; "just as tea drinking is an art and a philosophy, so too can coffee be brought to another level." Variety Saigon Coffee brings to the market a wide range of products and therefore is known for its variety and diversity. To a certain extent, this may confuse consumers because they may not know about all of these products and may not be able to distinguish among them. However, Saigon Coffee believes that different consumers have different tastes and prefer different levels of caffeine, and hence seeks to create many products of special value catered to specific consumer groups. Moreover, this belief is associated with the Vietnamese culture. Because coffee was introduced to Vietnam by the French colonists in the late 19th century, the diversity of style has become as much a part of Vietnamese coffee culture as in the wine industry in the Western world. 1 11 THE GLOBAL COFFEE SANCTUARY The young entrepreneur envisioned the ambitious plan of turning Buon Ma Thuot city in the Central Highlands into a Global Coffee Sanctuary, or a Coffee Paradise. The Coffee Paradise would become a place where coffee lovers worldwide could find every type of coffee and everything related to coffee, such as coffee museums, coffee research institutes, etc. Furthermore, visitors would be able to relax at resorts, explore the highlands, and take part in coffee production phases. The ultimate goal of the Coffee Paradise is to promote the best coffee brand name and create a sustainable development model based on coffee. More than that, the founders hoped their ambitious initiative would lead to a boom of tourism to the Central Highlands, thus promote economic development of the area and, ultimately, of Vietnam. The long-term plan involves turning a 2,000-hectare site next to Buon Ma Thuot into an integrated coffee city. The first completed component in the plan is the Saigon Coffee Village, a complex of coffee shops, ancient houses, coffee gardens, waterfalls, and souvenir shops. Here, visitors can enjoy the tastes of Vietnamese authentic coffee while at the same time learn about coffee farming and processing techniques, as well as discover the hidden charm of the Central Highlands region. The next phase, currently under construction, is a 46-hectare coffee zone that will house a community exemplifying all the elements of sustainable development, including eco-tourism, schools, plantations, and housing for 16,000 people