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Trung Nguyen coffee – Truong Van Hung

1. Founding story
Introduction: Trung Nguyên involves in the production,
processing and distribution of coffee. Trung Nguyên is
the leading domestic coffee brand within Vietnam, and
exports its products to more than 60 countries like: USA,
EU, China, etc.
Idea for business: In 1996, Vietnam was one of the
leading coffee producers in the world, but almost solely
producing "green" coffee (unroasted beans). This resulted
in no control over the final coffee quality or prices. The
Highland region of Vietnam is one of the world's "top
10" best environments. The owners of Trung Nguyen
saw that the future for producing gourmet coffee and
being reasonably independent of the world co mmodity
markets was to once again follo w the best possible
growing and processing techniques to produce a world class coffee, and carry it through all the way to the
packaged product.

Key pl ayers: On June 16, 1996, Dang Le Nguyen Vu
founded Trung Nguyen. The initial cap ital investments
consisted of only an old bike, unwavering faith and
strong will o f youth as well as a genuine desire to build a
famous coffee brand, bringing the flavor of Vietnamese
coffee to all corners of the world.
2. Key factors of success
Marketing strateg y: 4Ps of market ing, emphasized on
Production and Place (franchised store). Trung Nguyen
coffee is a co mb ination of good materials, high
technologies, Eastern’s secrets and new opinion about
coffee, making inimitable secret formu la and unique
flavor. Trung Nguyen has been giving its coffee-lovers a
unique environment to experience Vietnamese coffee
A coffee philosophy transcends language and culture
“Coffee is not just a simp le drin k, but an inspiration to
human creat ivity”. This philosophy has been the
guideline in co mpany’s franchising system development
Uni que know-how: Trung Nguyen coffee is co mbined
and refined fro m 5 famous kinds of coffee in the world
including Vietnam, Ethiopia, Jamaica, Brazil and
Colu mb ia to achieve the most special ingredients &
flavors by the latest technology. Through the careful
selection of Vietnamese Highland’s finest coffee beans
and the application of Trung Nguyen’s unique know –
how in roasting and brewing, a gourmet coffee brought to
customers with variant of flavors and aromas.
With a wide product portfolio ranging fro m ground
coffee, espresso to whole beans categories, Trung
Nguyen proudly satisfies the mutable needs of its coffeePage 1





Company’s strateg y: “In Trung Nguyen, we select the
best coffee beans mixed with the tremendous passion to
create perfect energy source for brain, to assist
creativeness and success, to connect and develop a
community of loving coffee for the prosperous and
sustainable world.”
Target market: Do minating domestic market,
conquering international markets, develop franchise
system in Viet Nam and foreign countries as well. The
expansion of the market based on both national network
& international network d istributors. National network
includes a nationwide network of distributors,
supermarkets, resorts, bookstores and thousands of retail
shops & coffee shops. In international network, Trung
Nguyen has distributors in more than 40 countries like
US, Canada, Australia, EU, Japan, Ch ina, etc. The main
export markets are the center economic in the world, the
stable business environment, polit ical stability.
Consumers have the habit of using good quality products,
high prices, the co mpany will not under pressure to
reduce costs.
Key factors for success (5 key factors): Firstly, the
Co mpany has a competitive advantage of perfect
geographical conditions for growing and develop ing
coffee market. Secondly, Trung Nguyen was one of the
pioneers of roasting coffee in Vietnam at that time when
there were not so many co mpetitors, so the Co mpany
seized a great opportunity to expand the market and
position its brand. Thirdly, the Co mpany has wellmanaged system and advanced technology (Eurep GAP,
HACCP certificates). Next , Trung Nguyen developed the
unique know-how of coffee selecting, roasting and
brewing procedures. Finally, the co mpany set up a clear
and effective marketing as well as company strategy.
3. Reflection
Conclusion: Trung Nguyen coffee still has great
potential to develop & expand the market. Trung Nguyen
brand becomes more & more similar with coffee lovers
around the world. However, the co mpany is also in
strong competition with international coffee brands such
as Nestle, Maccoffee, Starbucks coffee, etc.
Lessons: 1) Good businesses usually come up with a
great idea beyond money. 2) Clearly understanding your
local potentials & local cultures is one of the keys to
succeed in business. 3) Market ing strategy is always
important for business.


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