Current situation in the case
1.TN wants to expand globally
2.Starbucks wants to enter the Vietnamese market but considered as a late entrant
3.TN has regional dominance / presence

Current competitive advantages of TN
1.Access to resources
2.Offer quality coffee
3.Low costs producer
4.Market leader in Vietnam – first mover advantage
5.Good relationship in SCM
6.TN’s coffee represents the rich Vietnamese culture

Challenges faced by TN in world market (including in Vietnam)
1.Low brand awareness
2.Vietnam does not have much appeal outside home market
3.Limited resources for global marketing effort
4.Lack of expertise in the world market
5.Competitive advantages not sustainable because they can be easily copied
6.Coffee consumption is declining – more health conscious consumers
7.Vietnam has limited exposure to the world market and very few would associate quality coffee with Vietnam. The challenge is for TN to change the mindset of the consumers. This has implication on the global positioning strategy of TN.

Key success factors of TN
1.Good relationship with franchisees in order to have wide distribution
2.Good marketing strategies
3.Good understanding of differences in consumers
4.Quality control when working with franchisees
5.Brand name – to detach itself from being too Vietnamese while still maintaining the rich Vietnamese culture
6.Good segmentation strategies to clearly identify the market segments that TN wants to target at. Remembering that this is a lifestyle brand catered to a specific group people.








Global positioning
The key issue to consider is how many are prepared to accept Vietnamese brand as on par with those in the West. It will be foolhardy for TN to position itself against the western competitors. What is important is for TN to locate an occupied position in the market and create a niche position in the world market.

(Draw the perceptual map and explain the position of TN)


Branding strategies
1. This is linked to the issue on positioning. Basically, what values should be associated with the brand.
2. Should TN go for a global branding strategy or a localized branding strategy. In the longer term, it will be more advisable for TN to go for a globalised / standardized approach

3. Firstly, we need to recognize that TN is difficult to pronounce for the non-Vietnamese consumers. TN has no meaning whatsoever to consumers outside Vietnam.

4. Secondly, changing the brand name might mean losing the uniqueness and the richness of the Vietnamese culture.

5. Other considerations :
·The level of acceptance and cooperation by franchisees in marketing the brand
·Country of origin effect – will Vietnam be able to convince the world market of its marketing capabilities

Recommendations :
·Change the Vietnamese brand to something more universal. The brand name need not have any meaning e.g. Sony
·The important thing is that it is easy for people to associate this brand name with the Vietnamese culture
·In the longer term, it is advisable that TN adopts a global brand approach.







New competitive advantages to be developed

We need to use the Porter’s Generic strategies

Recommendation : Focused (either low cost or differentiation)

Justify.