The purpose of the thesis is to identify problems pertinent to relatively lower quality of customer service at Cong Caphe in the Korean market. The study is carried out by colleting and analyzing evaluations from customer service providers, customers or service users and the researcher’s observations. In the final sections, thorough recommendations are provided with the aim of improving customer service quality and increasing the positive perception of the Cong Caphe brand. This study is divided into three parts. The first part – Introduction - contains overall information about the research: rational, aims, the scope, methods and organization of the study. The second part includes three chapters. Chapter One is the review of literature review on different theories of branding, brand strategies and the role of customer service in building a brand strategy. Chapter Two – named The Study - consists of basic information about Cong Caphe Company Limited, its customer service providers, data collection instruments, data collection procedures, and the findings of the study. Chapter Three is dedicated to the researcher’s recommendations, providing and supporting suggestions made to improve the quality of customer service at Cong Caphe in the Korean market. The final part is Conclusion. This section provided the final overview of and concluded the study.
Rationale of the study
Vietnam is rapidly emerging as a top destination for tourists and investors, particularly from developed nations like Korea In 2019, the Korean Tourism Bureau reported a remarkable increase in Korean tourists to Vietnam, reaching 2 million—an impressive 21.3% rise compared to the previous year Additionally, Korea plays a significant role in Vietnam's economic growth, investing in diverse sectors such as mechanical engineering, cosmetics, and furniture Prominent Korean companies operating in Vietnam include industry giants like Samsung, Hyundai, and Daewoo.
Vietnam ranks as the world's second-largest coffee exporter, following Brazil, primarily producing Robusta beans, which differ from the Arabica beans favored in countries like Korea The coffee culture in Vietnam contrasts sharply with that of Korea, where coffee consumption is often more commercialized, with individuals quickly sipping take-away cups before work, predominantly using coffee machines for preparation.
Vietnamese coffee culture emphasizes savoring the experience, as friends gather to socialize and watch coffee slowly drip through the filter This leisurely approach contrasts with the quicker coffee habits found in Korea Expanding Cong Caphe internationally is a unique opportunity to share and celebrate Vietnamese traditions with the Korean community.
To successfully expand a brand internationally, it's essential to develop a robust brand strategy that effectively communicates core values to inspire employees in their interactions with customers In the customer service industry, including Cong Caphe, prioritizing customer satisfaction is crucial With a unique culture influenced by Vietnam's subsidy period, Cong Caphe has established a clear marketing strategy; however, international expansion presents challenges due to varying customer demographics, cultural differences, languages, and lifestyles.
The researcher conducted a study on the advantages and challenges of Cong Caphe's expansion into developed Asian countries, aiming to enhance the quality of customer service for the café chain internationally.
Aims of the study
This thesis focuses on three primary objectives: first, it offers an overview of Cong Caphe Company Limited and highlights its competitive advantages for expansion into the Korean market Second, it details aspects of the customer service process for Cong Caphe's international locations Lastly, the research presents solutions and recommendations aimed at enhancing the quality of customer service at Cong Caphe in Korea and other international markets.
Scope of the study
This study will concentrate on the Korean market rather than all developed Asian countries, due to the researcher's limited time and global business experience Furthermore, it will prioritize a practical analysis of customer service as a key component of branding strategy, rather than focusing on online marketing through social media channels like images, videos, and email.
Methods of the study
The study employs three data collection instruments to gather insights on Cong Caphe's branding strategy in Korea First, online questionnaires are utilized to capture the experiences of customer service providers Next, a document review of Cong Caphe’s customer satisfaction measurements assesses the effectiveness of the branding strategy Finally, observations are conducted to obtain objective insights by examining the operational processes involved in expanding the Cong Caphe brand and delivering exceptional customer service in the Korean market.
LITERATURE REVIEW
Brand strategy
1.2 Customer service as a part of Branding strategy
Suggestions to improve quality of customer services at Cong Caphe in the Korean market.
CHAPTER 1: LITERATURE REVIEW 1.1 Brand strategy
In today's world, brands are omnipresent and integral to our daily language, playing a crucial role in a company's success and overall value A brand embodies the complete 'personality' of a company, establishing a vital connection with its audience, as noted by Melissa Davis in her 2009 work, The Fundamentals of Branding.
According to her perspective, customers encounter brands through various channels, influencing their feelings and perceptions of a company To effectively engage customers, it is essential to tailor both tangible and intangible branding elements—such as products, services, and personnel—to meet the specific needs of the target audience.
A brand encompasses the unique characteristics that differentiate an organization from its competitors, including elements such as a name, tagline, logo, design, and brand voice According to Neil Russell Jones and Lynne Jones in "Marketing Pocketbook," a brand represents the distinct features that make an offering appealing to customers Allie Decker, in HubSpot's "The Ultimate Guide to Branding in 2020," emphasizes that a brand also reflects the overall experience a customer has when engaging with a business, whether as a shopper, customer, social media follower, or casual observer.
Dan Wieden, co-founder of Wieden & Kennedy and creator of the iconic Nike tagline "Just Do It," emphasized that consumers seek connections, narratives, and enchantment rather than merely products and services This insight highlights the importance of storytelling in branding, as a robust brand strategy is essential for a business's survival and success in today's competitive market.
Carly Stec (2018) claimed in a post on Hubspot’s blog about Brand strategy
A brand strategy is a comprehensive plan focused on achieving long-term goals through the development of a recognizable brand identity It encompasses the essential elements of a company's character, influencing every facet of the business A well-crafted brand strategy aligns with consumer needs and emotions while navigating competitive landscapes, ultimately driving success.
A brand strategy is a formal plan that businesses use to shape their image in the minds of current and potential customers, as defined by Kasza (2015), an instructor at Study A successful brand strategy ensures that a company is easily recognizable and understood by its audience, conveying who they are and what they offer without the need for explicit communication.
1.1.3 Key elements of brand strategy
A lack of a unified brand identity indicates that a company is unclear about its purpose, beliefs, and goals, resulting in employees not fully understanding the company's essence This confusion can negatively impact various aspects of the organization, including its content, culture, and core business operations The widespread nature of this issue stems from the fact that developing a robust brand strategy requires significant time, effort, and commitment.
To establish a strong and recognizable brand, companies must adhere to key elements of a comprehensive brand strategy that effectively communicates their story at every customer interaction According to Stec (2018), essential components of this strategy include purpose, consistency, emotion, flexibility, employee involvement, loyalty, and competitive awareness By focusing on these elements, businesses can ensure their brand remains impactful and enduring.
A clear and defining purpose is essential for an effective brand strategy, as it enables a company to stand out from competitors According to Adamson (2009), in a market characterized by low consumer confidence and heightened budget awareness, a strong purpose distinguishes one brand from another By understanding its commitments to customers, a company can strategically position its products and services in the minds of its target audience.
A business's purpose can be defined in various ways, primarily through functional and intentional perspectives Functional purpose, as noted by Somma (2014), evaluates success based on immediate commercial outcomes In contrast, intentional purpose emphasizes a broader definition of success, linking it to the ability to generate profit while also contributing positively to society.
IKEA, a multinational group based in the Netherlands with Swedish origins, has a clear and intentional purpose that goes beyond mere profitability While the company aims to be financially successful, it also strives to "create a better everyday life for many people," as stated in its 2020 vision This commitment to enhancing customer experiences allows IKEA to attract a broad audience by delivering value that extends beyond the initial purchase.
To achieve brand consistency, companies must focus solely on actions that enhance their brand identity, ensuring that every post, like a photo on Facebook, is thoughtfully considered Each action should align with the intended message to avoid customer confusion By maintaining cohesive outward messaging, a brand establishes a strong platform that fosters recognition and ultimately builds customer loyalty (Kimbarovsky, 2020).
Coca-Cola exemplifies brand consistency, as its unwavering commitment ensures that all marketing elements align harmoniously This cohesive approach has contributed to its status as one of the most recognizable brands globally (Lally, 2020) The seamless integration of its branding is particularly evident across its social media platforms.
To enhance brand coherence and avoid confusing potential customers, companies should develop a comprehensive style guide This guide should outline key elements such as the brand's tone of voice, color schemes, and product positioning strategies By clearly defining these aspects, businesses can significantly strengthen their overall brand identity and improve customer perception.
Customers often make irrational choices, as exemplified by Harley Davidson, where consumers willingly pay thousands more for a motorcycle compared to equally reliable and cheaper alternatives like Honda This phenomenon highlights the significant role of emotions in brand loyalty, as Harley Davidson fosters a strong community among its consumers Asher (2015) emphasized that the emotional connection between the brand and its customers not only unites them but also strengthens their bond with the brand itself.
THE STUDY
RECOMMENTDATIONS
Improvements in the design and use of souvenir counters
Many customers and service providers agree that each souvenir should have a compelling story to attract buyers To enhance this experience, it is recommended that the souvenir counter features a catalogue detailing the stories and meanings behind each item Additionally, incorporating small information tags on each souvenir can provide brief explanations of their significance These narratives not only help customers appreciate the cultural importance of the items but also foster excitement and emotional connections, ultimately increasing the likelihood of purchases.
The placement of the souvenir counter is a common concern among customers and service providers, as a strategically located counter can significantly enhance the shopping experience Positioning the souvenir counter in a prominent area within the store allows customers to browse souvenirs while waiting for their drinks, creating an engaging atmosphere Designers should prioritize visibility and accessibility for the counter, enabling cashiers to easily promote items on sale while taking orders Additionally, implementing specialized training for staff on cross-selling souvenir items can boost brand image and increase overall sales.
Improvements in seating space and traffic flow of a store
Effective store design plays a crucial role in optimizing seating space and traffic flow, which can greatly improve the quality of customer service at Cong Caphe In countries where individuals typically have larger frames compared to Vietnamese people, it is essential to incorporate wider furniture and allow for more spacious movement areas to accommodate customers comfortably.
To enhance customer experience, it is essential to avoid arranging tables and chairs too closely, as patrons require space for movement and privacy Cong Caphe should prioritize conducting surveys in potential markets to gather insights on customer preferences for design By focusing on both emotional and physical comfort, Cong Caphe can increase its appeal and acceptance in foreign markets.
Improvements in speed of fulfilling orders
The speed of order fulfillment is a key concern for businesses, and researchers recommend that store staff receive additional training before officially starting their roles Given that barista skills vary internationally due to cultural differences and equipment variations, enhanced training will help employees master Cong Caphe's specific methods Additionally, optimizing the arrangement of in-bar equipment is essential for improving efficiency and facilitating better usage by staff.
Improvements in attitudes of customer service providers
Addressing complaints about service providers' negative attitudes is crucial for brands like Cong Caphe that prioritize excellent service The researcher believes that enhancing staff training can effectively tackle this issue While Cong Caphe's training is thorough, it is vital to focus on increasing employees' awareness of the brand's vision and professionalism By recognizing their role as the face of Cong Caphe, staff can engage more responsibly with customers Implementing a reward system, such as a 'staff of the month' program, can also incentivize outstanding service and address poor performance.
Improvements in frequency of annual product offering
Service brands globally, including those in Korea, are prioritizing brand enhancement by consistently launching new products Some brands emphasize health-oriented offerings, while others concentrate on products that align with seasonal trends.
Cong Caphe can enhance its brand image by aligning with the beauty-focused aspects of Korean culture through the promotion of natural and organic products Utilizing its current practice of incorporating fresh fruits in its beverages, the brand has an opportunity to further explore market trends and innovate its product offerings This strategic approach could not only attract new customers but also strengthen the loyalty of its existing clientele.
Improvements in the quantity of promotion programs
Enhancing the quality of promotional programs through enticing gifts and vouchers can significantly boost brand visibility and enhance its image By addressing existing issues while preserving strengths such as appealing vintage designs, excellent customer service, and regular product launches, effective promotions become crucial for achieving success Increased promotional efforts will spark curiosity and excitement among customers, encouraging them to visit the store for new gifts and exclusive discounts.
This paper analyzes the challenges faced by the Cong Caphe brand in the Korean market, a leading developed economy in Asia, with a focus on customer service To provide a comprehensive analysis, the researcher employs three data collection methods: an online questionnaire, a review of customer satisfaction feedback, and personal observations Suggestions for addressing these issues will also be provided.
Despite the researcher’s dedicated efforts, the study encounters limitations related to geographical constraints and data availability Primarily, the focus is on customer service to enhance the Cong Caphe brand strategy, although brand image improvement encompasses various aspects Additionally, the research is informed by a brief observational period at a Cong Caphe location in Korea, which may introduce biases due to the limited timeframe Nonetheless, the researcher’s months of experience working in Cong Vietnam help mitigate these limitations.
Despite its limitations, this research provides a solid foundation for expanding into Asian and other international markets Cong Caphe and similar food and beverage companies can leverage these insights to enhance customer service, ultimately boosting their brand image and awareness.
In conclusion, Korea serves as a pivotal entry point for Cong Caphe's global expansion As the brand's inaugural foreign market, it encounters challenges stemming from limited experience However, this venture offers valuable insights into cultural differences and customer preferences To facilitate further growth, Cong Caphe must continually adapt by enhancing its research and understanding of international consumers.
2011 Customer Experience Impact Report USA: Oracle, 2012 Print.
Amaresan, S "10 Undeniable Reasons Customer Service is Important to Your Business." HubSpot, Dec 20, 2019 2019, Print.
Asher, Dean "Brand-Building in 7 Essential Steps." Foreword Online, Aug 13,
Baumeister, Roy F., and Mark R Leary "The Need to Belong: Desire for Interpersonal Attachments as a Fundamental Human Motivation." Psychological
Bernazzani, S "Customer Service 101: The Ultimate Guide." HubSpot, Sep 19,
Budelmann, Kevin, Yang Kim, and Curt Wozniak Brand Identity Essentials: 100
Principles for Designing Logos and Building Brands Kindle Edition 1st ed USA:
Davis, M The Fundamental of Branding 1st ed ed AVA Publishing, 2009 Print.
Decker, A "The Ultimate Guide to Branding in 2020." HubSpot, Dec 16, 2019.
Grant, M "Customer Service." Investopedia, Sep 10, 2019 2019, Print.
Kasza, A "What is Brand Strategy?" Study, June 6, 2015 2015, Print.
Kimbarovsky, Ross "what is Brand Identity and how to Create a Unique and Memorable One in 2020." Crowdpring, Jan 09, 2020 2020, Print.
Lally, Micah "30 of the most Recognizable Brand Logos of all Time." Blueleadz
"Real GDP growth: Annual percentage change." May 12, 2020 2020 Web.
.
Russell-Jones, N., and L Jones Marketing Pocketbook 4th Revised ed ed. Management Pocketbooks, 2004 Print Management Pocketbook Series.
Stec, C "Brand Strategy 101: 7 Essentials for Strong Company branding." HubSpot, Oct 11, 2017 2017, Print.
Subramaniam, A "Six Ways to Build Your Brand through Customer Service." Harvard Business Review, sec Apr 06, 2009 2009, Print.
Wagner, R., & Stern, A Employee Motivation in the United States USA: BiWorldWide, 2016 Print.
"World's largest coffee producing countries in 2018.” (2019, January
2019) Statista Retrieved from Statista: The Statistics Portal for Market Data Jan
2019 2019 Web .
Survey Qquestionnaires for customer service providers
This questionnaire aims to gather insights on the effectiveness of customer service at Cong Caphe in the Korean market following a period of operations The information collected will solely be utilized for this research paper and will not be used for any other purposes Your participation in this survey is crucial for the success of this study.
Please choose Yes or No for each question below and give reason (if any)!
Question 1: Satiric and humorous skit written in Cong Caphe stores in Korea – do they bring about expected results in improving brand image as well as Vietnamese culture in Korea?
Question 2: Is customer service team’ attitude considered up to par with your expectations?
Question 3: Speed of order – Does it need to be improved for better services?
Question 4: Souvenir counters – do they contribute much to the store revenues? Yes
Question 5: Food and beverage quality – is it up to the standard set forth by Cong Caphe?
Question 6: Frequency of new beverages and food – does it need to increase on an annual basis?
Question 7: Gift and promotion programs – do they need to increase on an annual basis?
Thanh you so much for your help!
NHẬN XÉT CỦA ĐƠN VỊ THỰC TẬP
Họ và tên người nhận xét: Nguyễn Thị Kim Dung
Chức vụ: Giám đốc Điều hành Công ty TNHH Cộng Cà phê
Nhận xét quá trình thực tập tốt nghiệp của Sinh viên: Nguyễn Thu Uyên
Khóa: CQ54 Lớp: 51.04 Đề tài: “The advantages and challenges of expanding to developed Asian countries for Cong Caphe”
1 Về tinh thần, thái độ thực tập của sinh viên:
2 Về ý thức kỷ luật, tuân thủ quy định của đơn vị thực tập:
3 Về kỹ năng giao tiếp, kỹ năng mềm:
4 Về kiến thức chuyên môn:
Supervisor: Pham Thi Lan Phuong
Topic: “The advantages and challenges of expanding to developed Asian countries for Cong Caphe”