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In 2007, Phuc Long invested in building a tea processing factory in Thai Nguyenprovince and a tea & coffee processing factory in Binh Duong province Phuc Long, 2020.All are equipped with
Trang 2II Target customers and Positioning……….6
III Analysis of the marketing mix……….7
IV Marketing plan for the next year……… 8
C Conclusion……….9
D References ………10
E Appendices………11
Trang 3A Introduction
Phuc Long Coffee & Tea was established in Bao Loc tea plateau, Lam Dong Province byMr Lam Boi Minh in 1968 In 200, Phuc Long Trading Production Co., Ltd was officiallyestablished In 2007, Phuc Long invested in building a tea processing factory in Thai Nguyenprovince and a tea & coffee processing factory in Binh Duong province (Phuc Long, 2020).All are equipped with modern equipment and machinery and have HACCP certification.Thereby, bringing quality products for domestic services and meeting export demand (PhucLong, 2020) Also from here, Phuc Long tea has conquered fastidious markets such as the US,Japan, Indonesia,…
In 2012, Phuc Long continued to expand its F&B business with a self-service store and amodern space In 2018, the second tea & coffee processing factory was built in Binh Duong.Along with that, there are more than 40 new stores built and opened by Phuc Long In 2019,Phuc Long continued to develop 70 new stores and expanded the system stretching fromSouth to North (Phuc Long, 2020).
After more than 50 years of development, Phuc Long constantly refines the quintessence tocreate excellent products At the same time, the desire to bring customers the most valuableexperience Phuc Long continuously pioneers many leading innovative ideas in the tea andcoffee industry This Vietnamese brand, rich in tradition, quintessences, and strong changes,is increasingly being accepted by generations of customers.
(Source: Phuc Long, 2020)
B Body
Trang 41 Micro-environment analysis.1.1 Industry Competitors.
Talking about the main competitors of Phuc Long, we can mention some competitors suchas Starbucks, Highlands Coffee, Trung Nguyen, The Coffee House,…
Phuc Long’s competitors all make a difference They stand firmly in the Vietnamese marketand are constantly competing.
Competitive price of products: Starbucks (45.000-110.000 VND), Highlands Coffee(30.000-85.000 VND), Trung Nguyen (50.000-100.000 VND),…
` From there, we can see that Phuc Long has a relatively cheap price, only 50-70% comparedto the price of Trung Nguyen, 30-50% compared to Starbucks With a reasonable price, it iseasy to bring many different customers such as students, office workers, etc.
1.2 Alternative products
On the menu of Phuc Long, customers will find tea, milk tea, juice, and coffee Phuc Long’smenu is also very rich with 63 different milk tea flavours With coffee-flavored drinks,outstanding drinks can be mentioned such as caramel coffee, rick milk, cappuccino, vanillacoffee, and iced mint coffee (drinks, 2020) In addition, the following tea dishes are alsopopular with young people's favourites such as peach milk tea, and pink milk tea Diversechoices for customers from young to elderly customers.
In addition to favorite drinks, Phuc Long also includes snacks such as moon cake, bread,…All products such as coffee, tea, and food,… are provided by Phuc Long as substituteproducts Among them, there are many substitute products with lower prices than PhucLong’s products This makes the threat of substitute products to this brand high.
1.3 Suppliers
In 2007, Phuc Long owned a tea hill in Thai Nguyen and built a tea processing factory there.In the same year, Phuc Long invested in a processing factory in Binh Duong (Phuc Long,2020), equipped with many modern machines, certified to ensure food safety and hygienestandards, with the goal of ensuring the supply of quality products, serving the domesticmarket and meat export demand Because of that, suppliers can only exert low to moderatepressure on Phuc Long.
1.4 Customers
With a mission to become a pioneer of the times with innovative ideas at the forefront of thecoffee and tea industry The brand also develops more youth-oriented drinks with “softer”prices than competitors.
Phuc Long focuses on customer groups from working people to students Phuc Long wants toreach out to the public more, attract a large number of customers, and have many choices.However, Phuc Long has the advantage of space, store location, and a special pure
Trang 51.5 Potential rivals
There are certain barriers when entering this industry, setting up a chain of stores like PhucLong requires a huge investment as well as a lot of time to develop the brand and gain brandloyalty Phuc Long has positioned its products in the hearts of customers, which is pureVietnamese flavour In fact, there are plenty of similar stores at the local level that has beensuccessful in growing the customer base in their area, but the threat from new entrants to PhucLong is moderate.
2 Macro-environment analysis2.1 International market
With the current trend of globalization, businesses not only develop domestically but alsowant to reach out to the world, so competition becomes stronger For the domestic coffeemarket, competitors are not cheaper coffee shops in the country anymore, but also high-endbrands in the world that are approaching the Vietnamese market such as Starbucks, CoffeeBeans,…
- Opportunity: Domestic coffee chains are winning over foreign coffee, so the domesticcoffee chain market still has many opportunities for domestic business to rise up.- Challenge: With the trend of globalization, the penetration into the coffee chain market ofthe world’s giants makes the competition in this market more fierce In addition, thepandemic situation is complicated, it seriously affects the economy, customers’ income, andstore consumption.
2.2 Economic factor
When the economy develops, income increases and demand also rises, creating conditionsfor production and business to develop According to the General Statistics Office, in 2023,Vietnam is growing economically at around 8-9% and this could strengthen Phuc Long’sposition in the market.
- Opportunity: The coffee market in Vietnam is a big market, our economy has grown overthe years, which is an opportunity for businesses to develop more Resident’s income alsorises, so the demand for entertainment spirit rises, making the coffee business moreopportunities.
- Challenge: residents’ income is still low, and the demand for a cup of coffee high-end is nothigh, so to compete with cheap street cafes.
2.3 Politics
The Vietnamese government is focusing on promoting investment and economicdevelopment over the next decade Along with a stable political background, policies, anddecrees support businesses to develop and protect their legitimate rights and interests.- Opportunity: Our country’s legal system has created great conditions for domesticenterprises to develop.
- Challenge: Negative effects on laws and institutions, especially taxes.2.4 Technology
Phuc Long applies many scientific achievements (machines for dispensing, serving,
Trang 6the Internet and smart robots are increasingly being applied to life, penetrating many fields toreplace humans.
- Opportunity: Technological development, the process of serving or dispensing all becomeconvenient, fast, and save effort In addition, the promotion and sales on electronic channelsmake the coverage stronger,
- Challenge: If businesses do not catch up with technology, they will soon be priced out of thefiercely competitive market today.
2.5 Culture-Society
Vietnamese culture is very oriental Targeted at office workers, young people, students, etc.Because they spend a lot of time at the shop to work, study or entertain themselves.- Opportunity: With a large population and habit of drinking coffee as much as Vietnam, thisis a potential market.
- Challenge: Street coffee culture in Vietnam is hard to change, psychology and culture areobstacles for high-end coffee chains.
2.6 Natural environment factors
In our country, each region has its own distinct climate characteristics and climatecharacteristics are factors that Phuc Long needs to pay attention to in order to have the bestservice Besides, weather, climate, and soil also affect the quality of coffee beans and tea.Environmental protection is always a challenge in business activities, and for coffee chains,the issue of environmental protection is quite closely associated with coffee cups and coffeestraws.
II Target customers and Positioning2.1 Target customers
While big brands like Starbucks or The Coffee Bean & Tea Leaf position themselves as ahigh-end brand when targeting office workers, high-income customers, and foreign guests.foreign coffee Or Trung Nguyen coffee brand positioning as a mid-range brand but clearlyidentifying the mid-range segment as customers who love traditional coffee flavors.Then Phuc Long Coffee & Tea determined its market segment based on Demographics andPsychology when targeting the market segment of the middle class with stable income, officepeople "connoisseurs" of tea and coffee.
It can be said that in order to compete with the big boys in the coffee industry, Phuc Long wasvery smart when choosing this market segment with a large number of customers Thisprecise choice has helped Phuc Long gain a target market with diverse customers frommiddle- to high-income workers to tourists and students.
Trang 7III Analysis of the marketing mix
3.1 Marketing strategy for Phuc Long's product
The product is seen as being the most crucial element in determining a brand's success Aquality product not only draws in customers but also fosters loyalty and trust, encouragingrecurrent use As a company, Phuc Long is aware of this and continually focuses on creatingitems of the greatest caliber Finding its Unique Selling Proposition (USP), whichdifferentiates it from competing brands, has been a priority for Phuc Long The flavor of PhucLong's products, which must be distinctive, distinctive, and different from other brands, is itsUSP This quality is reflected in the development of tea products with strong flavors thatappeal to consumers with discriminating palates.
3.2 Phuc Long's pricing marketing strategy
The "Good-value Pricing" technique has been used to design a pricing strategy by Phuc LongCoffee & Tea Additionally, they have put into practice appropriate and effective pricingtechniques including "Product line Pricing," "Promotional Pricing," and "Combo Pricing."Phuc Long Coffee & Tea has established a fair pricing strategy, focusing on its strengths inoffering premium tea and coffee Their rates are in the middle range, making them ideal for
Trang 8students, and visitors.
Beverage costs at Phuc Long continue to range from 35,000 to 75,000 VND Comparing thispricing range to rivals like Trung Nguyen and well-known brands like Starbucks and TheCoffee House, it is only approximately 50–70% lower (business strategy, 2019)
3.3 Marketing strategy for distribution of Phuc Long
A well-known coffee and tea brand in Vietnam, Phuc Long Coffee & Tea has an extensivedistribution network of 84 locations nationally (Phuc Long, 2022) Large cities including HoChi Minh City, Hanoi, Binh Duong, Dong Nai, Khanh Hoa, Da Nang, Lam Dong, Can Tho,and Nghe An are where you'll find most of Phuc Long's stores These stores, in particular, aresituated in excellent development-friendly sites.
Products from Phuc Long are not just on display and for sale in the businesses mentionedabove, but also in supermarkets, shopping malls, and a few other convenience stores.
The growth and expansion of Phuc Long's internet sales channel have been a priority.Through the official website of Phuc Long, customers can place direct orders Additionally,they can utilize food delivery services like Shopeefood, Grabfood, Baemin, and Foody toorder from Phuc Long ( Phuc Long’s services, 2021)
3.4 Marketing strategy for the promotion of Phuc Long
Both "push" and "pull" marketing methods are used by Phuc Long To draw in a huge numberof passersby, they purposefully place their chain of stores in prominent areas like Bitexco,Landmark 81, Vincom, and well-known streets like Le Loi, Cong Hoa, and Ngo Duc Ke.Additionally, Phuc Long promotes its brand image on social media sites including Facebook,Instagram, and Youtube With more than 400,000 fans on Phuc Long's Facebook fanpage,this strategy has been effective Despite not relying on distribution channels substantially,Phuc Long successfully pushes their items into supermarkets, shopping malls, andconvenience stores, enabling a targeted and effective approach to this strategy.IV Marketing plan for next year.
- The prices of Phuc Long's products remain the same as last year In addition, there is an ideato launch a new product for Phuc Long, such as plum tea, and introduce it to customers byattracting them through promotional programs, reasonable trial prices, or Combo Pricing(ordering any 2 Phuc Long products will allow customers to try the new product, buy 3 get anew product, etc).
- Apart from F&B business activities, Phuc Long also sells its tea products directly toconsumers With the idea of developing the marketing plan for Phuc Long next year, theproducts will be prominently displayed and sold in Phuc Long stores currently operating inthe market, supermarkets, shopping centers, convenience stores, and specialty tea shops.Additionally, Phuc Long will strengthen its product position on e-commerce platforms suchas Shopee, Lazada, Sendo, etc to reach consumers more effectively.
- Enhance the use of modern equipment and tools in the process of preparation or service(coffee and tea brewing equipment, beverage preparation) to facilitate and improveoperational efficiency.
Trang 9Extend the reach of the store chain to provinces and cities where Phuc Long is currently notoperating.
* Services of Phuc Long
- Quality Products: Phuc Long focuses on high-quality coffee and tea sourced from specialplantations This ensures excellent-tasting products for customers.
- Variety: Phuc Long offers a range of beverages such as coffee, tea, milk tea, and otherspecialty drinks This caters to the diverse needs and preferences of customers.
- Space and Design: Phuc Long stores are designed with a modern and sophisticated aesthetic,creating a comfortable and relaxing space for customers to enjoy their drinks The layout isthoughtfully planned to create a welcoming and friendly environment.
- Delivery Service: Phuc Long provides delivery services, allowing customers to convenientlyshop and receive their products at their desired location in a prompt manner.
- Customization Service: Phuc Long offers corporate gifting services, enabling companies tocustomize and imprint their own logos on coffee and tea products This creates unique andmemorable gifts for corporate customers.
C Conclusion.
In conclusion, Phuc Long is a brand that stands out for its commitment to quality, authenticity,and innovation in the tea and coffee industry With its focus on responsibly sourcedingredients, diverse beverage offerings, and inviting cafes, Phuc Long continues to delightand satisfy customers Whether you are a tea enthusiast or a coffee lover, Phuc Long providesa delightful experience that blends tradition with contemporary flavors.
Trang 10Kotler, P & Armstrong, G 2020: Principles of Marketing
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