VietNamNet
Bridge – All the coffee brands have to
compete fiercely with each other to scramble for the pieces of the cake.
The
figures released by TNS, a market survey firm, showed that in 2010-2011,
Vinacafe led the coffee market, followed by Nestcafe and Trung Nguyen’s G7.
However, there would be some changes with the second and third positions, as
the owners of the brands have been “bent on winning at any costs.”
It’s tit for tat
The
three biggest brands have been competing with each other fiercely by making
heavy investments in technologies, plants, lowering sale prices and offering
sales promotion campaigns. Meanwhile, the other lesser known brands have also
been trying to diversify their products to share the remaining modest market
share.
The ad
campaigns launched by the three biggest brands alone can show the stiff
competition of the enterprises. Right after Nestcafe launched the slogan “Khoi
dau ngay moi” (start a new day), Vinacafe launched the slogan “Ca phe thien
nhien thuan khiet” (pure natural coffee).
When G7
promoted the ad campaign with the slogan “Giup suy nghi manh hon” (help think
stronger), Nestcafe launched the slogan “Ngon hon, vi ca phe manh hon” (More
delicious, stronger coffee taste). Immediately, G7 replied with the slogan “Vi
ca phe cuc manh” (Very strong coffee taste).
The
battle of words continued when Nestcafe said “Ban da du manh de thu” (Is your
strong enough to try” and G7 replied: “Manh chua du, phai dung gu” (Being
strong is not enough, it’s necessary to consumers’ liking).
Tung
from Vinacafe said that Vinacafe would continue making investment in
technologies to maintain its competitiveness – the high quality of products.
Besides, Vinacafe would also make investment in research and development,
marketing and sale.
He also
said that the processing capacity of Vinacafe would increase significantly from
the third quarter of 2012, when it puts the new coffee processing plant with
the capacity of 3200 tons per annum into operation.
Prior
to that, Vinacafe opened a café in Hanoi. The move, in the eyes of branding
experts, could be seen as the first step in Vinacafe’s plan to confront Trung
Nguyen in café chain development.
While
domestic brands G7 and Trung Nguyen are still “dueling”, a foreign coffee brand,
MacCoffee, has been quietly preparing for the plan to conquer the Vietnamese
market.
In
fact, MacCoffee has been present in Vietnam since 1990. However, until 2010,
its products, made with the same formula applied to 70 other markets, did not
fit the taste of Vietnamese people. Moreover, as the materials were imported
from other countries, the prices of MacCoffee were higher than other products,
making it unable to compete with other brands.
Analysts
also comment that MacCoffee’s market share remains modest due to the company’s
business strategy at that time: it just simply explored the market and found
out the taste of the Vietnamese consumers.
Not to
be outdone by the rivals in the competition, Nescafe is still spending heavily
on advertisement campaigns, offering many sales promotion programs, trying to
make the brand more friendly by organizing writing and photography contests.
Especially,
Nestcafe has launched a lot of new products that fit the taste of consumers in
different regions. In 2011, for example, the company spent 270 million dollars
to build a plant which allows making both soluble coffee and decaffeinated
products for women, so that they can drink coffee but do not lose sleep.
Doanh
Nhan Saigon
Business & Investment Opportunities
YourVietnamExpert is a division of Saigon Business Corporation Pte Ltd, Incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Strategy, Investment and Management, focusing Healthcare and Life Science with expertise in ASEAN. We also propose Higher Education, as a bridge between educational structures and industries, by supporting international programmes. Many thanks for visiting www.yourvietnamexpert.com and/or contacting us at contact@yourvietnamexpert.com
Dear
Reader,
May I
invite you to visit our new blog: IIMS-Asean http://iims-asean.blogspot.com/
News
and activities of the International Institute of Medicine and Science Asean
Chapter of IIMS, Inc. California, USA - Health care, Life Science, Education,
Research, Philanthropy. Asean is the economic organisation of ten countries
located in South East Asia: Brunei Darussalam, Cambodia, Indonesia, Lao PDR,
Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam. IIMS is a
non-profit organization.
No comments:
Post a Comment