OVERVIEW OF FOUR SPRINGS TEA HOUSE AND MY INTERNSHIP
Introduction of Four Springs Tea House
Full Name Four Springs Tea House
Slogan The taste of nature
Director Mr Luu Hong Dang
Location No 9 Hoang Cau street, O Cho Dua district, Ha Noi
Contact E-mail: tiemtra4s@gmail.com
Type of company Family owned company –
Four Springs Tea House is a distinguished Vietnamese brand in the F&B industry, offering premium tea drinks and exceptional service It provides an inviting space for customers to study, work, or hold meetings while enjoying expertly crafted flavored teas The brand's slogan, "The taste of nature," encapsulates its commitment to delivering a natural and delightful tea experience.
Four Springs Tea House embraces a minimalist and eco-friendly approach, reflecting its marketing strategy that prioritizes simplicity and efficiency This unique business model not only creates a lasting impression on customers but also aligns perfectly with the brand's values.
Four Springs Tea House, situated on Hoang Cau Street in the heart of Hanoi, caters to a bustling community with its minimalist design This inviting space is ideal for busy professionals seeking a tranquil environment and families looking for a nearby spot to unwind and enjoy refreshing beverages.
Our primary offerings include a variety of teas such as Original tea, milk tea, and fruit tea, along with a selection of cakes Despite the limited number of products, the diverse categories allow customers to effortlessly find the perfect beverage to suit their preferences.
Four Springs Tea House is dedicated to providing an exceptional customer experience by maintaining a single location that prioritizes product and service quality The establishment adheres to stringent standards, ensuring that the ambiance, Wi-Fi connectivity, and restroom facilities all contribute to customer satisfaction.
Starting from January 2019, the steady growth in revenue is a testament to the success in brand positioning for customers of Four Springs Tea House
Figure 1 : Total revenue of Four Springs Tea House in 2019, 2020 and first 6 months 1
Introduction of my project
1.2.1 Reasons for choosing the topic
As society evolves and the demands of consumers and businesses grow, marketing has emerged as a crucial component of any business operation A well-crafted marketing strategy is essential for businesses and brands to maintain their competitive edge in the market This is particularly evident in Vietnam's rapidly expanding food and beverage (F&B) industry, which has seen significant growth in recent years.
Four Springs Tea House has reasonable marketing strategies to survive and grow revenue The core factor that Four Springs Tea House focuses on are Customer and Product Quality Tea
Four Springs Tea House has implemented marketing programs aimed at enhancing customer satisfaction and addressing significant industry competition Despite facing considerable challenges in development and integration, the business possesses substantial financial resources and growth potential.
In this article, I will analyze the marketing strategies of Four Springs Tea House to identify its strengths and weaknesses This analysis aims to provide insightful suggestions for enhancing the establishment's marketing efforts.
- My internship position at the company: Marketing Excutive
During my internship in the Marketing department, I played a key role in introducing, building, and developing marketing programs for a premium tea brand and its products The department consists of two main staff members, allowing for focused collaboration on innovative marketing strategies.
Diagram 1.1: Four Springs Tea House operating organizational diagram
OP department Khối cửa hàng
During my internship, I had the privilege of being guided by Mr Luu Hong Dang, a Marketing Manager with eight years of experience in the media and advertising industry His enthusiastic support provided me with valuable insights into the company's structure and deepened my understanding of the tea house's operations.
1.2.3 My position responsibilities at the company
Get used to working environment
Doing the reall marketing activities including
- Operating Marketing programs and strategies with other departments
- Update news and trends of the market
- Administration and development of social networking channels
- Interact with customers; always responding and supporting the needs of customers
- Propose ideas for brand and product marketing strategies; building, developing and improving the content of effective marketing programs
- Connect and solve problems quickly and professionally
- Respond and report back on the results of marketing-related programs/issues
- Research the market, analyze competitors and their strategies
Conduct a surver on customers’ opinion
To gain insights into customer demand and satisfaction regarding the tea house's services, my tutor and I conducted a survey targeting customers who have utilized the company's offerings.
I intended to survey customers who have used the services of the shop.I planned to collect 150 customers in 1 month (1/4/2021 1/5/2021) –
In fact, we only collected 121 right response due to the covid 19 and social distance
Method of the survey: indirect method
We utilized the shop's Wi-Fi system to gather customer questionnaires, allowing customers to voluntarily participate in the survey while accessing the internet Due to COVID-19 social distancing measures, our customer traffic was limited, resulting in only 121 valid responses All collected data was analyzed to identify factors influencing the shop's marketing activities.
Support for the Board of Managers in company management
Besides my main tasks above, I also support the board of managements on the development and operation of Marketing programs to distribute products professionally
1.2.4 My main aims during the internship
- Expand brand popularity increases customer base and give the brand the opportunity to cooperate with appropriate partners
- Provide brand and product information to customers: Brand of high-end tea products, professional services, providing space to work/meet
- Increase revenue for the company through the development of Marketing programs to increase product distribution in the market
- Demonstrating the professionalism of the brand
My internship plan
Table 1.1: My internship plan at Tea house
Get acquainted, learn about the company, learn about the parts and how the company operates
Knowledge on the activities and main products of the tea house and its operation
Learn about business environment, projects of the organization
Knowledge on the business environment, the project overview
Analyse the SWOT matrix, Doing Survey
A questionnaires Week 12 - 16 Analysis of the results obtained Data analysis and report
FACTORS AFECTING MARKETING ACTIVITIES OF FOUR SPRINGS
Macro-environment
Government policies such as trade, tax, and competition regulations present both challenges and opportunities for Vietnam's food and beverage (F&B) industry Traders and investors must adapt their business strategies to align with these evolving policies to thrive in the competitive market.
Trade agreements like the EVFTA and CPTPP have significantly enhanced foreign investment and international integration in Vietnam, creating numerous growth opportunities for the country's food and beverage (F&B) industry.
The food and beverage (F&B) industry has emerged as one of the most promising sectors for significant and sustainable growth in recent years With approximately 540,000 restaurants operating, the industry generated a remarkable revenue of $200 billion in 2019 Despite facing substantial challenges due to the Covid-19 pandemic, which affected both the F&B sector and the broader economy, the industry's business activities remain dynamic and resilient.
As society evolves, so do consumer expectations, leading customers to seek more than just food and beverage offerings The F&B experience of a brand has become a crucial criterion for evaluating restaurants and hotels Exceptional service not only enhances a brand's reputation but also attracts customers, providing a significant competitive edge in the industry.
In order for the brand to exist and develop stably, businesses need to have brand positioning strategies with the most accurate and most appropriate strategies
Domestic and international trade agreements present both opportunities and challenges for businesses in the food and beverage (F&B) industry The rapid development of this sector can largely be attributed to technological advancements, which enhance operational efficiency Solutions such as transportation management software (TMS) and warehouse management software (AMS), along with applications for sales and operational planning, are crucial for optimizing supply chain operations.
A real-life example that can see the influence of technology on the F&B industry: In March
In 2020, as major cities in Vietnam implemented closures of non-essential business services, Starbucks Vietnam experienced a remarkable 50% increase in revenue from its delivery segment, driven by a surge in online sales promotions.
In the food and beverage industry, plastic packaging and bags are crucial for customer convenience and maintaining food hygiene and safety However, the widespread use of disposable bags and cups contributes significantly to waste, posing challenges for waste management and negatively impacting the climate, environment, and public health.
It is estimated that every year, about 78 million tons of plastic packaging are produced worldwide, but the rate of recycling after use is very low field is not processed
In recent years, numerous businesses in the food and beverage sector have implemented changes to minimize plastic waste by replacing traditional straws, cup covers, and bags with biodegradable materials.
To operate legally, business entities and enterprises must prepare essential documents for business registration in compliance with the law Key information required includes the determination of the business type, selection of the company model, completion of business registration documents, obtaining a certificate of eligibility for food safety products, announcing business registration details, and creating a seal along with a seal sample announcement.
According to Article 3 of Decree 39/2007/ND-CP, all types of coffee shops, including book cafes, garden cafes, and game cafes, are not exempt from obtaining a business license as mandated by state regulations.
In the realm of business operations, companies and brands are required to pay various taxes, including Value Added Tax (VAT), Corporate Income Tax (CIT), Personal Income Tax (PIT), and licensing fees Additionally, standard business households are subject to VAT, PIT, and licensing fees as well.
Four Springs Tea House has also completed legal documents and procedures for successful business registration in the form of business households.
Micro-environment
Vietnam's food and beverage sector boasts nearly 600,000 businesses, with new brands emerging alongside innovative customer attraction services In this competitive landscape, establishments like Four Springs Tea House face constant challenges, underscoring the need for businesses to enhance their offerings To thrive, companies must prioritize understanding what value they can deliver to both customers and their own operations.
In the competitive F&B sector, Four Springs Tea House, a small retail business, is less affected by supplier market share due to its modest raw material needs By prioritizing simplicity and optimization, the tea house utilizes homemade processing materials and eco-friendly products, ensuring that supplier relationships focus more on enhancing product quality than on market share dynamics.
Taste Healthy degree of product
Space eco- friendly degree Product quality
Figure 2.1: Customers' satisfaction on the services very satisfied
A recent customer survey at Tea Shop revealed that the primary factors influencing customer satisfaction are product taste, accounting for 47.9%, and product quality and spacious environment, which contribute 43.8% This highlights the significance of high-quality ingredients and materials, emphasizing the crucial role suppliers play in the food and beverage industry.
In today's competitive market, a multitude of brands offers a wide range of colors and options, allowing customers to select products that align with their individual preferences and needs To attract and retain new customers, businesses must adopt a brand-oriented approach and establish a strong, long-term brand image By targeting customers whose characteristics align with their offerings, companies can effectively tap into their potential market and enhance their customer base.
At Tea House, customers can select from a variety of drinks, cakes, and toppings tailored to their preferences The overall customer experience and public feedback play a crucial role in shaping the brand's image Reviews on the official Facebook Fanpage serve as a valuable assessment of Four Springs Tea House's quality, influencing potential customers' perceptions through genuine evaluations from real patrons.
The Vietnamese food and beverage (F&B) industry is experiencing intense competition, with an anticipated growth rate of 18% in the near future To thrive in this dynamic market, businesses must engage in thorough research and market analysis, maintain close relationships with customers, and stay attuned to evolving market demands Only those well-prepared will succeed in the competitive landscape of the F&B sector, both in Vietnam and globally.
Beverage brands continually innovate by introducing new flavors and enhancing their product offerings to capture customer interest and influence purchasing decisions To thrive in this competitive market, it is essential to nurture relationships with loyal customers while also implementing effective marketing strategies to attract new clientele.
Currently, for F&B businesses, they do not need to worry too much about another industry threatening this industry, because the customer's demand is extremely large and its benefits are undeniable.
Market analysis
In the second quarter of 2016, a report from Decision Lab revealed that restaurants in Ho Chi Minh City, Hanoi, and Da Nang attracted 340 million guests (excluding children), generating quarterly revenue of $1.1 billion This suggests that the annual sales for the food and beverage industry in these three major cities could reach approximately $4.4 billion, a notable figure when contrasted with the overall national value of food and non-alcoholic beverages, which was $22 billion in 2016.
Vietnamese consumers' dining expenditures vary based on their location Statistics from Decision Lab reveal that the average spending per meal in three major cities reflects this trend.
2.2.1.2 Analysis of the consumer's segments
According to Q&Me's statistics, Vietnamese consumers exhibit distinct preferences in beverage consumption, with adults over 30 years old frequently visiting cafes 2-3 times a week, while young individuals aged 18-23 show a strong preference for milk tea shops, also visiting them at a similar frequency.
Four Springs Tea House also analyzes customer segments to perfect the best service quality for customers
Figure 2.2: Survey of customers' occupation Four Springs Tea House
A recent survey reveals that working professionals and students make up 70% of the clientele at Four Seasons Tea Shop In response, the shop has tailored its marketing strategies to prioritize simplicity and efficiency Recognizing that customers have limited time for extensive promotions, Four Seasons Tea Shop utilizes concise methods like Wifi marketing and standees at the cashier to deliver quick, accessible information that effectively engages its audience.
2.2.1.3 Characteristics of the buyer and analysis
With different type of customers, businesses need to pay attention to small details to bring satisfaction to many customer groups, thereby bringing better revenue growth
According to Euromonitor's report, there are 5 main customer type divided by consumer buying characteristics:
Minimalist seekers, comprising 19% of consumers, prioritize minimalism in their purchasing decisions They value high product quality and emphasize environmental sustainability in both the production and use of items This group is particularly focused on the benefits of simplicity in the products they choose.
Impulsive seekers, comprising 23% of consumers, are eager to embrace new trends and make swift purchasing decisions This group demonstrates a strong inclination towards owning and utilizing the latest products, highlighting their potential as trendsetters in the market.
Undaunted striver - 17%: The group enjoys life, has impulsive shopping habits, They both value the brand value and value the shopping experience
The Secure Traditionalist consumer group, comprising 16% of shoppers, is characterized by their loyalty to specific shopping styles and a tendency to save while shopping Retailers aiming to attract this demographic should focus on maximizing convenience and streamlining the shopping process to enhance the overall customer experience.
2.2.2.1 Analysis of the strategies developed
Four Springs Tea House, a family-owned business established in January 2029, specializes in premium tea lines and fat-free pastries Offering a welcoming atmosphere, it provides customers with the opportunity to study, work, or meet while enjoying expertly crafted tea beverages and professional service, all made by skilled tea professionals.
2.2.2.2 Identification of the strategies developed
Four Springs Tea House focuses on a marketing and development strategy centered around simplification and optimization This approach is exemplified in their streamlined menu, which features three main tea lines, providing customers with ample choices while maintaining a straightforward selection.
Figure 2.3: Customer's favorite type of tea in Four Springs Tea House
In communication strategies, Four Springs Tea House always keeps its core values: Optimization and simplification There are no trending events, or updates on hot trends, like
What is your favorite tea in Four Springs Tea House?
Four Springs Tea House effectively engages young consumers by promoting popular beverages like milk tea and fruit tea, often with the help of celebrity endorsements Utilizing social media platforms such as Facebook and Instagram, they maintain a consistent customer outreach strategy through word-of-mouth referrals and culinary reviews Unlike many competitors, Four Springs Tea House embraces a minimalist approach in both product offerings and operations, providing familiar items in a comfortable store environment Additionally, they cater to the growing demand for sustainable living by using eco-friendly, recyclable materials for takeaway orders.
Four Springs Tea House has successfully embraced minimalism in its communication and operations, optimizing revenue and enhancing brand identity without excessive time, cost, or gimmicks This approach has allowed the tea house to maintain a loyal and stable customer base while staying true to its core value of simplicity.
Figure 2.4 Why customers know about Four Springs Tea House :
Four Springs Tea House is well-known among customers, with 44.6% discovering it through friends, highlighting the importance of word-of-mouth referrals The establishment's commitment to core values fosters trust and loyalty among its clientele However, the company faces challenges in management and marketing as competition intensifies in the current market landscape.
Recommended by friends Social media ads Reviewer post Near home/work Other
Four Springs Tea House offers a versatile store layout that caters to various customer needs, whether for studying, working, or relaxing alone or with friends With both indoor and outdoor seating options, patrons can select their preferred environment to enhance their experience.
Images 2.1: The space inside the Four Springs Tea House
Effective space optimization, featuring well-arranged seating areas that prioritize comfort and privacy, significantly enhances the customer experience This thoughtful design encourages customers to utilize the service repeatedly for various purposes, ultimately driving increased sales for the store.
Four Springs Tea House enhances customer experience by simplifying product segments into three main categories: Original tea, fresh fruit tea, and milk tea All offerings are crafted from high-quality ingredients using a clean and professional formula, ensuring they cater to a wide range of customer preferences.
Diagram 2.5: 3 main type of tea in Four Springs Tea House
Diagram 2.6 Evaluate the difference of product flavor of Four Springs Tea House : compared to other brands
MY INTERNSHIP ASSESSMENT
My contribution to the company
Interns understand how to operate in a professional working environment, support the Board of Directors to operate effectively, so that:
Research and contribute ideas on issues, especially issues related to the marketing segment of Four Springs Tea House
Proposing, perfecting and operating marketing programs on online and offline platforms, bringing effective revenue to the company
The company greatly values and supports the intern's research efforts, providing timely and experienced assistance that enhances the internship experience This strong support system has significantly contributed to the successful execution of the internship project, leading to positive outcomes in the final report.
My difficulties and solutions
The transition to a new working environment has brought about significant changes in my daily routine and work style, particularly in adapting to early mornings and a structured schedule during my internship Initially, I faced challenges in acclimating to this new atmosphere, leading to some confusion regarding the expectations of the job However, over time, I embraced these changes and developed a more positive and effective approach to my work.
Lack of work experience and specialized knowledge: lack of specialized knowledge in marketing, some activities I have to research and learn to get the knowledge I want.
Experience gained
Interns develop essential skills during their internship, including research and data analysis, professional job operation, information selection, problem-solving and decision-making, strategic planning, and software proficiency on various platforms.
Upon finishing the internship and study program, both the intern and the company will engage in discussions regarding the potential for continued collaboration The invaluable experiences and lessons gained during the internship are cherished by the interns, who express their gratitude to Four Springs Tea House for the opportunity.
The analysis of Four Springs Tea House's marketing strategy highlighted the critical role of strategic preparation and investment in marketing and communication for brands within the F&B industry and beyond.
During my internship, I developed essential soft skills with the guidance of my teachers, tutor, and family I enhanced my communication abilities with leaders, colleagues, and clients, gaining valuable experience that lays the foundation for my future studies and career I gained a comprehensive understanding of marketing activities, learned to analyze real situations, and evaluated service quality through direct customer surveys, all with the support of my dedicated teachers and colleagues.
My internship at Four Springs Tea House has significantly enhanced my writing and communication skills, both academically and in real-life situations Despite some shortcomings in my report, I am committed to further developing my abilities and aspire to become a qualified marketing professional in the future.
Thank you for participating in the Tea Shop survey, which aims to gather your valuable feedback on the quality of our products and services that you have experienced.
Your answers & Personal information will be kept confidential & used only for the purpose of improving the quality of products & services at Tea Shop
Tea Shop commits not to share any information with a third party or other purpose
5 How many time does you usually spend on Tea House?
6 Why do you know Tea House?
C Reviewer post of famous person
7 Your favorite type of tea in Tea House?
8 The reason why you comeback with Tea House after the first time?
9 How would you rate the experience with the staff of the Tea House?(Comment 1 - 10 point) ………
10 Will you come back to continue using Tea Shop products next time?
11 Do you feel any difference between Tea House's drinks and other brands? (Comment 1 -
12 Are you willing to recommend Tea Shop to your friends/relatives/colleagues?
13 What do you think if the Tea House continues to launch products (foods, drinks) that are good for your health, your life (Healthy)?
14 Please leave your Phone Number here so that the Tea Shop can take care of you & send you special promotions just for you!: ……….