Our team will investigate and develop Phuc Long tea products of Phuc Long Trading Production Co., Ltd in the Korean market over the next 5 years under the theme "INTERNATIONAL MARKETING
EXECUTIVE SUMMARY
The Korean market is regarded as one of the most promising for both local and foreign enterprises Korea is the 14th greatest trade power in the world, with a total turnover of about 1,786 billion USD (2014), and the world's sixth largest exporter (628 billion USD each year)
(628 billion USD) In 2014, imports totaled 536.6 billion USD (2014) When it comes to preserving excellent culture, tea is one of the most commonly utilized goods in the country of kimchi Tea is one of the most promising and rapidly expanding goods in Korea, with several rival brands Our team will investigate and develop Phuc Long tea products of Phuc Long Trading Production Co., Ltd in the Korean market over the next 5 years under the theme
"INTERNATIONAL MARKETING PLAN FOR PHUC LONG TEA IN SOUTH KOREA”
At the same time, it addresses concerns concerning the product's market potential, product supply, competition, the political climate, and Korea's advantageous qualities for developing tea goods of the company and difficulties that may arise while entering the market The study consists of the following main parts: Situational analysis, Analysis of the Internal Environment, Analysis of the External Environment, Target market description, International Marketing Goals and Objectives, Marketing Program, Evaluation, Measurement and Control.
SITUATION ANALYSIS
C OMPANY S MISSION STATEMENT AND SHORT PROFILE OF THE COMPANY ’
In 1968 in Bao Loc Plateau, Phuc Long was born with the expectation of bringing quality tea and coffee products Over the past 50 years, Phuc Long has continuously been a pioneer brand with many innovative ideas in the industry tea and coffee industry Currently, Phuc Long has built more than 80 stores in major cities across the country Besides increasing the coverage of products to supermarkets and convenience stores With the desire to constantly expand the market, Phuc Long wishes to create a Vietnamese brand with class and quality reflected in each product, thereby gradually asserting its position in the international market
Phuc Long sets out four missions to guide the company's development
• Become a pioneer of the times with innovative ideas at the forefront of the tea and coffee industry
• Let's bring brands to shine, motivate each other, and turn ideas into reality with the spirit of cohesion, interaction, listening and respect
• To create joy and affection for customer
I NSTANT T EA INDUSTRY SITUATION
The Korean tea market is expected to reach US$309.84 million (calculated at retail prices) by
2015 By 2025, the Korean tea market is forecast to reach US$458.14 million (calculated at retail prices), is growing at a rapid pace CAGR is 3.35 % per year for the period 2020-2025
This is a decrease from the roughly 4.54%/year growth registered during 2015-2019 Per capita consumption by value reached $6.15 per capita (in retail price) in 2015 Over the next 5 years, it grew at a CAGR of 4.13%/ five In the medium term (until 2025), this index is forecast to slow down and grow at a CAGR of 3.03%/year (Tea, 2021)
The tea market has grown significantly over the past few years along with changing consumer behavior Nowadays, tea drinkers are more interested in high quality products with a great story and the drink has specific health benefits for them, which has driven the demand for healthy green tea strong strong Strong botanical teas and herbal blends In addition, the concept of tea has also changed, as it is viewed by most young consumers as a sexy and healthy drink Premiumization is another positive development in the market, as customers are showing a strong preference for functional botanical blends and individual handcrafted teas More and more people are interested in innovative flavor combinations, as well as the authenticity and story behind a certain brand When it comes to different varieties, a recent trend suggests that natural, earthy alternatives like ginger, matcha, turmeric and cumin are in higher demand Cheese tea is another foodservice phenomenon, especially popular in Asian countries like Malaysia, Taiwan, and China
Another interesting trend in the tea market is the emergence of tea pairing menus As customers increasingly choose unique and experiential products, many restaurants have tried to enhance the dining experience by introducing multi-course tea fusion menus In addition, the tea market has been expanded beyond the hot beverage category with the development of new ready- -to drink beverages and iced tea variations For example, Kombucha has shown impressive growth over the past few years, from a niche product to a hit in mainstream supermarkets.
C OMPETITOR ANALYSIS
Dong Suh 1968 Buckwheat tea, Brown
Rice Green Tea, Purple Corn, and Solomon’s Seal
Dong Suh has always been a leader in Korea's FMCG industry, so it's no wonder they're also at the top of ice cream in Korean tea brands
Osulloc Tea 1979 Volcanic Rock Semi-
Fermented Tea, Samdayeon, Matcha, Rooibos, Green Tea
Most Korean Osulloc teas, grown in Jeju Island, are USDA, FSC and Carbon Footprint
3 certified They are also 100% organic
Corn, Honey Citron, and Korean Ginseng Tea
Nokchawon is one of Korea's tea brands specializing in supplying brewed tea to Michelin-starred restaurants, airports, luxury hotels and the like
Frescas, Orange Passionfruit Jasmine Green Tea, Mango Pineapple Aguas Frescas
Lipton is a proud national sponsor of American Heart Association’s Life is Why program that inspires people to live healthier, longer lives
(Song-I, 8 BEST KOREAN TEA BRANDS IN 2021, 2021)
ANALYSIS OF INTERNAL ENVIRONMENT
V ISION
Phuc Long aspires to be a firm specialized in the manufacture and export of high-value tea and coffee in Vietnam, with the aim to continually grow the market - sustainable development Phuc Long aspires to build a Vietnamese brand that reflects class and excellence in every product, progressively establishing itself in the worldwide marke t.
M ISSION
Become a modern-day trailblazer with new ideas at the forefront of the tea and coffee industries Let's make companies shine, motivate one another, and transform ideas into reality in the spirit of collaboration, engagement, listening, and respect Each of us must continually shine in order to bring delight and affection to our clients Do not allow your capacity to sleep to lapse; you must continuously push yourself and rejuvenate yourself Create high value via comprehension, empathy, and genuine value propositions that meet consumer pleasure
BT Vật lý 2 lần 2 - Lecture notes 3123
SWOT ANALYSIS
- Korean customers' demand for convenience products is increasing
- Vietnam has ideal conditions for growing tea that produce top quality products
- When joining TPP, the Government of Vietnam will attract foreign investment
- Joining the TPP is also an opportunity to change the tax barrier from low to zero
The export of tea from Vietnam to other countries is much more convenient, so Phuc Long will be able to bring their brand to the world
- In recent years, the erratic behavior of pests and diseases has been negatively affecting the quantity of tea
- Many tea companies outside of Vietnam will see an opportunity to make a profit
- Phuc Long will have to compete with many opponents
- The Covid-19 pandemic has affected exports and imports
- Phuc Long targets a wide range of customers
- Using local products, using raw ingredients like tea leaves to make their flavorful products
- With climate conditions, the taste of Vietnamese tea is more delicious
- The prices of Phuc Long's products are suitable and
- Strongly promote the export of packaged products of Phuc Long
- Develop Signature products, eliminate the way products are saturated, and research products
- Wide distribution of product network
- Building a brand image that increases competitiveness with other competitors
- Differentiate products in terms of quality and convenience, take the initiative for users who need it whenever they need it
- Good reputation due to its perfect quality
- Always understand customers and make them happy
- Phuc Long's logo design is considered impressive with the combination of colors and letters
- Rarely exposed to the media to promote brands, products, e tc.
- Lack of creativity and impression in packaging product design
- Promote your products on e-commerce platforms
- Promote and communicate so that customers know more about the product
- Supplementing Marketing budget to promote Marketing activities
- Redesign product packaging for more impression and creativity
S TRATEGY EVALUATION
The Korean market is one of the prospective markets for tea product development Because Koreans consider tea to be an exquisite delight, a traditional culture filled with national identity The firm considers the growth and penetration of Phuc Long tea in Korea to be a challenge In Vietnam, tea has the benefit of ranking second in the world in terms of export volume, quality Furthermore, Phuc Long is one of the most well-known brands in Vietnam, with a high level of customer confidence However, when it comes to exporting to Korea, we encounter significant hurdles due to the large number of rivals Some people have complained about the low quality of Vietnamese items The severe outbreak of the COVID-19 pandemic, along with the implementation of social distancing measures, has disrupted the movement of commodities, causing supply chains to be disrupted and hurting production and commercial operations
As a result, Phuc Long Trading Production Co., Ltd must devise a clear market research approach, comprehend Korean consumer behavior, and push the Marketing Mix strategy in order to tap into customer psychology At the same time, firms involved in import and export must be informed of COVID-19 developments in the global market in order to capitalize on all
6 possibilities and preserve their export strengths Use market development techniques such as digital marketing channels to continue to grow your business At the same time, businesses need to improve their competitiveness and adaptability to overcome all difficulties.
ANALYSIS OF EXTERNAL ENVIRONMENT
M ICRO ENVIRONMENT
Culture is greatly influenced by Chinese and Japanese cultures The industrialization and urbanization of South Korea, especially Seoul, have brought many changes to the way Korean people live A healthy lifestyle is a trend, young people are now more interested in drinking tea every day to have a healthy body instead of the habit of drinking coffee as before But Korea's tea ceremony culture can't keep up with their pace of life, so it is gradually being replaced by more convenient packaged tea products that are in line with modern trends (안녕하세요 (Hello) and Welcome to our Guide to South Korean Culture, Business Practices
According to Pew Research Center (2010), about 46% of the population have no religious affiliation, 23% are Buddhist and 29% are Christians (Religion in South Korea, 2021)
Korean people are known for their intelligence and work ethic It is no wonder why the country has one of the highest average annual work hours (Working in South Korea, 2020)
According to Statista, In 2020, the population in South Korea increased by about 0.14%, compared to the previous year (O'Neill, South Korea: Population growth from 2010 to 2020,
In South Korea, approximately 71.67 percent of the population was between 15 and 64 years old in 2020, while those above the age of 64 made up around 15.8 percent The youngest generation made up an even smaller percentage than the elderly, but were the only group that did not increase in size over the last decade, partly due to a decrease in births since 2007 (O'Neill, 2020)
80% of South Korean high school graduates go on to university Large majorities of South Korean students go on to enroll in some form of tertiary education and leave higher education with a tertiary qualification In 2017, the country ranked fifth for the percentage of 25- to 64- year-olds that have attained tertiary education with 47.7%, 69.8% of South Koreans aged 25 to
34 years old have completed some form of tertiary education with 34.2% of South Koreans aged 25 to 64 having attained a bachelor's degree which is one of the highest among OECD countries (Mani, 2018)
In 2019, there were around 47.6 million inhabitants living in urban areas in South Korea Urban areas referred to areas used for residential, commercial, or industrial purposes According to the source, approximately 91.8 percent of South Korean citizens were living in urban areas that year (Yoon, Urban and rural population in South Korea from 1997 to 2020, 2021)
The Government of South Korea is a centralized democratic republic with the three primary branches of government; executive, legislative and judicial (Government of South Korea,
The National Election Commission, the police force, local government, the ceiling recruitment strategy, and procurement policy (Government of South Korea, 2021)
Political stability index (-2.5 weak; 2.5 strong), 1996 - 2019: The average value for South Korea during that period in 2019 was 0.48 points (South Korea: Political stability , 2020)
South Korea's economic freedom score is 74.0, making its economy the 24th freest in the 2021 Index Its overall score is unchanged, with an improvement in the government spending score offset by declines in investment freedom and financial freedom (South Korea, 2020)
The country's legal system is based on a civil law system The President is elected every 5- years by popular vote and Prime Minister is appointed by the President South Korea is divided into nine provinces and has a total of 232 lower-level governments within metropolitan cities (South Korea , 2021)
• Openness to foreifn direct investment (FDI):
FDI Inward Flow (million USD) 17,913 12,183 10,566
Value of Greenfield Investments (million USD) 5,234 8,539 3,608
In 2020, the value of foreign direct investment (FDI) inflows to South Korea totaled approximately 20.75 billion U.S dollars based on report amount and decreased by 11.1 percent compared to the previous year Despite the rapid decrease of FDI in the first half of 2020 due to the COVID-19 pandemic, it recovered quickly in the second half Hereby FDI to South Korea has stayed above the 20 billion U.S dollar level since 2015 While global FDI suffered a drastic fall in the pandemic, the decrease in South Korea has been comparatively moderate, showing that South Korea is a safe place to invest even during the pandemic (Yoon, 2021)
South Korea to maintain expansionary fiscal policy, slowly shift toward monetary tightening
As of May 2021, the financial stability index (FSI) of South Korea reached 1.8 points, showing a decrease compared to the previous months The index value reached the highest level in April
2020 and fell thereafter (Financial stability index (FSI) in South Korea from January 2019 to May 2021, 2021)
The major programs included in the system are the National Pension, National Health Insurance, Long-Term Care Insurance, Child Care, and the National Basic Livelihood Security System (Sunju, 2015)
Healthcare in South Korea is universal and funded through a combination of government subsidies, outside contributions, and tobacco surcharges Hospitals and clinics are modern and
9 efficient, and expats will find a variety of both Western and Eastern treatment option (Health Insurance and the Healthcare System of South Korea Explained, 2020)
Area: 98,480 square kilometers (38,023 square miles)
Longest distances: 642 kilometers (399 miles) from north-northeast to south-southwest; 436 kilometers (271 miles) from east-southeast to west-northwest
South Korea has four major rivers: the Han River and the Kum River, the Naktong River and the Somjin River (Geography of South Korea, 2021)
Big cities: Busan, Daegu, Daejon, Kwangju, Incheon, Ulsan
The climate is temperate, with 4 distinct seasons
South Korea has a continental climate, with hot, rainy summers and cold winters Temperatures range from 22°C to 29°C (71°F to 83°F) in the summers and from -7°C to 1°C (19°F to 33°F) in the winter months, with warmer winter temperatures along the southern coast and cooler temperatures in the interior (Geography of South Korea, 2021).
M ACRO ENVIRONMENT
South Korea is an OECD member and a member of the G20 states In 2020, South Korea's GDP was around 1.63 trillion U.S dollars (Economy of South Korea, 2021)
• GDP per capita (purchasing power parity (PPP))
South Korea Gross Domestic Product (GDP) per Capita reached 31,637.300 USD in Dec 2020, compared with 31,928.800 USD in Dec 2019 (Economy of South Korea, 2021)
In 2019, the share of people in South Korea living with less than half of the median disposable income was 16.3 percent, showing a slight decrease compared to the previous year While the relative poverty rate has fallen steadily in recent years, the figure is still relatively high by global standards, especially among the elderly (Economy of South Korea, 2021)
In 2020, the average inflation rate in South Korea amounted to about 0.54% compared to the previous year (Economy of South Korea, 2021)
Of the 34% share of industry to South Korea’s GDP, 23% was contributed by manufacturing alone in 1980 The share increased to 25% of the 39% contribution of the industrial sector in
1991 and in 2014, while manufacturing contributed 30% of the 38% industrial sector share to the gross domestic product As of 2021, manufacturing accounts for 28% of GDP South Korea’s largest industries are electronics, automobiles, telecommunications, shipbuilding, chemicals, and steel (Economy of South Korea, 2021)
As of 2019, the length of paved national roads in South Korea is about 13,865 km National highways in South Korea are defined as roads connecting major cities, ports, airports and tourist destinations and are under the control of the Ministry of Land, Infrastructure and Transport MOLIT) of Korea The Korean government will invest a total of 28.9 trillion won ($24.4 billion) in road infrastructure in 2020 in the hope that its social projects will not only ease congestion traffic around the country but also support the country's stagnating economy The ministry expects SOC's road upgrade projects to help generate 85.5 trillion won in economic growth and create 290,000 new jobs Once the projects are completed, the total length of the national highway will reach about 5,000 kilometers and traffic congestion will be reduced by 49.4%, the ministry expects (National highways of South Korea, 2021)
South Korea has 35 operational civilian, military and paramilitary airports Including 8 international airports: These Korean airports serve domestic and international passengers on all continents (List of airports in South Korea, 2021)
Depending on the type and amount of amenities provided on board, trains can be classified as
“KTX Express, KTX-Sancheon, Saemaeul, ITX-Saemaeul, ITX-Cheongchun, Mugungwa and KORAIL cruise ships ” (Trains, 2017, paragraph 2)
South Korea's two main high-speed KTX railways are known as the Gyeongbu and Honam lines Gyeongbu travels from Seoul to the southeast region with a stop in Busan Honam travels along the western part of the Peninsula to Mokpo Both pass through the central part of the country
Korea has a total of 60 seaports Of which, there are 31 commercial seaports (national port, local port) and 29 coastal ports (directly managed by the locality)
Hanaro Mart, Lotte Super, GS Supermarket are among the top supermarkets in terms of number of stores The main hypermarkets are EMART, Home Plus and COSTCO Finally, CU, GS25 and Seven Eleven are the biggest convenience stores
In South Korea, terrestrial television broadcasting is common and popular As terrestrial broadcasters, there are five channels with four television stations: KBS 1TV, KBS 2TV, MBC, EBS, SBS According to DTV Korea, the rate of digital TV sets in use is about 60% (2010) (Mass media in South Korea, 2021)
A search result of the Pew Market Research Center (USA) shows that up to 94% of adults in Korea use smartphones and this country has become the world's leading country in terms of usage rate smartphone use (Mass media in South Korea, 2021)
When it comes to Internet use, South Korea ranked third in the world in 2003 According to statistics of the Korean Ministry of Information and Communication, 78.5% of families own a computer, of which 93.6% use the Internet (2005) Many businesses utilize the Internet in Korea for services such as news, social media, shopping, banking, games, and educational content Korea has the fastest internet speed in the world (Mass media in South Korea, 2021)
• Types of media available (TV, cable, radio, newspaper, magazines, outdoor, )
Radio: As standard radio stations, there are KBS, MBC, SBS, EBS In 2018, the penetration of radios among South Korean households was 3.5 percent, down from 5.2 percent in the previous year (Mass media in South Korea, 2021)
Newspaper: Nowadays, Chosun Ilbo, Dong-A Ilbo, and Jung-Ang Ilbo e the major ar newspapers with conservative views; Hankook Ilbo is moderate; Kyunghyang Shinmun and The Hankyoreh are the major newspapers with liberal views In South Korea, conservative newspapers are more widely read Maeil Business Newspaper and Korea Economic Daily are the major business newspapers In South Korea, as in many other countries, newspaper subscribers are decreasing (Mass media in South Korea, 2021).
Cable : There are many cable operators in South Korea, such as Tbroad, C&M, CMB, and CJ
HelloVision (Mass media in South Korea, 2021).
I NTERNATIONAL BUSINESS ENVIRONMENT
With an import-export turnover of $66 billion in 2020 (exports of 19.1 billion USD and imports of 46.9 billion USD), South Korea is Vietnam's third-largest trade partner after China and the United States When the corporation entered the Korean market, it utilized export as a business environment for international trade This has resulted in many advantages and benefits, but it has also been fraught with obstacles and difficulties (Samuel, 2021)
A significant contribution to economic restructuring, production development, double profits, business innovation, and risk and dependency reduction has been made possible by the export of Phuc Long coffee to the Korean market supply and demand of the firm As a result of the Covid-19 outbreak, exporting products has been a challenge Company must keep an eye on the pandemic scenario so that it may devise the best methods for exporting products into the country of Korea.
TARGET MARKET DESCRIPTION
S EGMENTATION
Phuc Long entered the market starting from big cities, where a large number of office workers, tourists to students are concentrated According to demographics, Phuc Long targets young customers in the age group of 20-40 This is a group of customers of generation Y and Z, unlike previous generations, these two groups are interested in health care from a fairly early age but still have to meet the convenience to accompany their fast-paced lives.
T ARGET MARKET
Occupation: Mainly office workers who have a hobby of drinking tea
Income: With low-middle income
Mainly concentrated in big cities like Seoul, Daejeon, Changwon, Busan, And areas where many Vietnamese people live like Ansan
P OSITIONING
In Phuc Long's tea product positioning strategy, Phuc Long's target customers are all tea lovers This group of customers has the common characteristic that they have had time to contact and get used to the taste of tea, not just the traditional taste
A cup of tea per day will bring consumers good health, a youthful and energetic body Science has proven that tea contains many antioxidant compounds that help prevent the aging process and cell damage, prolong youth, protect the cardiovascular system, prevent the risk of diseases, cancer as well as prevent cancer very effective
With a long-standing enthusiasm in the tea industry, the company is confident that it can beat other competitors in terms of price and product quality, Phuc Long is proud of its closed model, from cultivation to production and processing and distribute the product to the market Phuc Long uses quality ingredients from Bao Loc, Di Linh (Lam Dong) and Thai Nguyen to keep the flavor of each type of tea when it reaches consumers.
INTERNATIONAL MARKETING GOALS AND OBJECTIVES
1 Return on investment (ROI) should reach 10% by the second year of operation
2 From 16 to 18 percent of the market share in the fiscal year
3 Reputation improvement for the company through a 50% increase in local charity expenditure over the next five years
4 Enhance the customer referral rate by investing in marketing
5 Push up consumption to increase sales
6 Achieve 90% product awareness by making the product better and better, regularly holding events over the next 2 years
7 Expand the market through producing new goods, discovering new unexplored regions, and broadening the possible consumer group, etc
8 Incorporate new technology and modernized specialist equipment This is done through investing in the development of sophisticated science and technology, as well as by training a team of qualified technicians and workers to satisfy the company's development requirements
9 Increasing website traffic is a common goal for companies hoping to put their products in front of more people The company might focus on digital marketing terms like click-through rate (CTR), cost-per click, and impression
10 Reach sales levels to become one of the 50 largest tea producing companies in the world.
MARKETING PROGRAM
P RODUCT STRATEGIES
7.1.1 How innovative is the product
After more than 50 years of extracting the quintessence from green tea buds and the desire to bring customers the most valuable experience when enjoying, Phuc Long is continuously a pioneer brand with many ideas The pioneering innovation in tea is expected to bring users high quality tea products, preserving the traditional Vietnamese flavor combined with a modern enjoyment style Each tea package when reaching consumers is produced and packaged by Phuc Long according to the most advanced technology, enhancing the penetration of the tea to the outside and enhancing the rich flavor, re-experience the whole experience when enjoying
Besides the traditional flavored products, Phuc Long giving birth to teas with extremely delicious flavors (lychee tea, rose tea, peach tea )
With the current vibrant pace of life, the outside culture has also been more or less imported into Vietnam and also does not exclude the culture of enjoying tea, and that more or less changes the taste for enjoying tea of young people Therefore, the company needs to continue to research new products to better suit the tastes of customers
Improving product quality, constantly searching for excellent tea varieties, constantly researching - improving production methods to produce pure-tasting products, constantly improving the quality of production technology and machinery , improve the quality of production materials
A beautiful and eye-catching product packaging will be easier for customers to notice and choose to buy, so it is necessary to focus on creative and impressive product packaging design to attract customers' choices
7.1.3 Compare it to competitors’ products
Phuc Long, when entering the Korean market, will encounter many other strong competitors such as Osulloc tea, Lipton tea, Nokchawon tea, and Dongsuh tea its products Because Vietnam is one of the famous countries for tea Therefore, the taste of Vietnamese people about this food group has also become stricter and stricter than common sense Phuc Long Tea is sourced from two tea hills that we own in Thai Nguyen and Bao Loc - these are also two places that are considered famous tea estates of Vietnam
Grasping the increasing demands of customers, Phuc Long has constantly searched for high- quality tea varieties, constantly researched - improved production methods to produce high- quality teas with high flavor Tea is new but still retains the traditional features, the company has also diversified its products so that customers have more choices
P RICING STRATEGIES
7.2.1 Applying penetration pricing strategy in the Korean market
Price Penetration Strategy is the use of a low initial selling price for a new product to entice customers to quickly grow the market and improve sales volume The aim is that after a period, the company will have a significant market share and will be able to lead in terms of market share This method is appropriate for companies with large-scale economies of scale and experience lines to increase efficiency, which means that the more goods produced by the firm, the cheaper the unit cost of the product It is frequently utilized as a key technique to generate a huge market for the company
After doing study on the price-influencing elements in the Korean market, such as tariffs and income The business agreed on a price of 10,000 won for Phuc Long tea Penetration pricing may be an effective marketing approach for increasing market share and sales volume of Phuc Long's tea goods if the firm has the proper price plan Furthermore, greater sales volume can lower production costs and accelerate product turnover
Penetration pricing strategies are designed to maximize sales, gain widespread market acceptance, and capture large market shares quickly by setting relatively low initial prices Company cost in manufacturing the product is an important factor in pricing Based on production costs, the company can set a temporary discount to stimulate sales or store traffic Therefore, it will help Phuc Long easily enter the Korean market, increase brand recognition from customers, and gradually become the Top of Mind of customers
7.2.2 Compare it to competitors’ price
Competitors for tea goods in the Korean market frequently adopt a competitive price approach That is, the process through which a company determines strategic pricing for its goods by exploiting the prices of other competing products or services on the market With a changing
17 price of 10,000 won and minimal earnings, rivals' market penetration may be hampered Despite the low price, the quality delivered will earn Korean consumers' confidence and use Dongsuh Foods is expected to retain its overall leadership position in tea into 2021, despite continuing to lose market share to competitors such as Korea Ginseng Corp, a leader in the herbal/energy fruit tea industry through the highly rated Cheong-Kwan-Jang red ginseng brand for its antioxidant and anti-inflammatory effects on the Asian population, and Damtuh
Co Ltd, which dominates the largest volume instant tea category That's good for Phuc Long's entry into the Korean market, when big companies are competing fiercely, it always opens up new opportunities for other companies to enter the industry.
P ROMOTION STRATEGIES
Customers are attracted by well designed large-format billboards, posters, and banners in business hubs and huge buildings where a significant number of people are passing by Increase awareness of Phuc Long tea by investing in social media advertising In order to attract clients, TVCs must target Korean psychology and consumer behavior, such as inspiring reasoning, invoking emotions, and evoking morals
To boost sales or market share by educating customers about items and changing their attitudes and views about the company, advertising is used, making the business stand out from rivals by creating a distinct brand
In order to enhance its product, the firm will distribute samples in stores for customers to test and review
In order to promote its business, the corporation gives out items to clients without collecting any money You might provide clients insulated mugs or heated water bottles, for instance Apply discount programs during golden hour, purchase two for one, etc
Create a series of activities for the community in order to promote a positive image of the organization So, the company might host Tea Workshops, or cultural exchanges between Vietnam and Korea Phuc Long will also work with big Korean firms to build up vaccine- supporting demons and provide assistance to families afflicted by the Covid-19 pandemic At the same time funding for some programs to make live coverage of the brand
Regularly organize product introduction events, a series of product introduction activities and attracted many customers Customers can approach and try the product from there, which will help increase the recognition of the company brand as well as Phuc Long products In addition, Phuc Long also sends emails or messages to customers to see them have comments or reflections on the quality of their services or products not from there improve to be better In addition, customers can contact the phone number or the company profile on Facebook for any questions
As part of their personal selling efforts, salespeople strive to persuade consumers to buy Phuc Long tea goods, or provide them with information and advice goodwill and a positive connection, resulting in future sales possibilities As a result, the firm must provide the essential product knowledge to the sales team in order for them to assist consumers when needed in the future Using personal selling as an advertising, sales, and customer service strategy, it helps to link the firm with its target consumers By collecting input from customers, a firm may better tailor its product to fit its target market
7.3.6 Compare it to competitors’ promotion
When entering Korea, Phuc Long tea product line belongs to the introduction stage in the product life cycle Promotional efforts are therefore necessary to enlighten and enhance consumer awareness about the goods, affecting those customers who are ready to acquire the product (who readily alter their behavior) Because the product life cycle of Osulloc, Lipton, Nokchawon, and Dongsuh teas is nearing maturity and decline, they will no longer focus on promotional activities, therefore no marketing will be conducted
Promote Phuc Long tea, thus, has a major edge over its competitors Through promotional efforts, help buyers get familiar with your items.
D ISTRIBUTION STRATEGIES
Indirect exporting- Phuc Long will sell to a buyer in home country, which in turn export the product.Customers are large retailers such as supermarkets (E-mart, Lottemart, ) and convenience store (GS25, 7-Eleven, ), wholesale supply houses, trading companies, and others that but to supply customers abroad
Tea is a consumed product that is easily replaced by competitors should adopt a mass distribution strategy
• Goods are gathered at the company's warehouse
• Order directly from sales manager or sales manager to receive goods
• Delivery and receipt of goods directly at the distributor's warehouse by the shipping company intermediaries within 48 hours from the time of ordering in the shortest time, saving best
• Order through the distributor's retail channel staff or distribution agent
• Goods are delivered and received at the agent within 24 hours excluding holidays
• Payment via bank transfer or cash
• Delivery to the supermarket's warehouse within 24 hours
• Support product display: at agents, grocery stores, retail points, companies support shelves, cabinets, panners, posters, signs, etc to display products to make them stand out and attraction for the product
• Product trial support: when a new product launches or adds a flavor new for the tea product line, the company held a trial of the product at the grocery store near densely populated areas and public areas such as parks, supermarkets, schools learn…
• Capital support: for small shops that do not have enough financial capacity to be announced the company supports by importing goods in the month until the end of the month to pay or borrow money through the company's credit fund
• Shipping support: with grocery stores or retail stores supported by the company free and local delivery What about major agents and distributors besides delivery to the warehouse, the company supports the purchase of truck installments for convenience of goods subordinate intermediaries obtain goods from agents or distributors
• In addition, when shipping goods to intermediaries that have problems with goods If the specification is wrong, the quality is not guaranteed, it will be returned to the company and the company will usually compensate for all damage costs.
EVALUATION, MEASUREMENT AND CONTROL
E VALUATION
As tea consumption has increased in Korea in recent years, it has become a lucrative market for companies As a result, Phu Long firm must conduct research and create goods, as well as marketing methods for Phuc Long tea items, in order to get access to a big market In addition to researching marketing techniques suited for the Korean market, the firm must examine the effectiveness of the plan through feedback from intermediaries, or consumers, to enhance this product more and more better Determining and promoting the government's export policies and plans is also essential It's also critical that the firm has a clear target market and marketing plan Many possibilities and difficulties await Vietnamese tea exporters in the future, therefore promoting tea exports to Korea should be a priority Tea exports are expected to rise in the next years, as well as Phuc Long Vietnam tea's international reputation.
M EASUREMENT
Korea is one of the potential markets for tea consumption, so seizing that opportunity, the research team targeted this potential market and built a strategic plan to penetrate the tea market in Korea Bringing premium tea flavor and preserving the value of tea leaves
After exploring this potential market, the team started planning and costing The company's overall operation plan in the strategy of bringing its products to the Korean market for a total of 5 years, clearly stating the specific plan and costs in the strategy
Phuc Long's product strategy to penetrate the Korean market has a very high ability to reach new customers because of the quality that Phuc Long brings to the market
Detailed and specific measures when entering the Korean market, making the transmission more effective for the implementers and minimizing risks for the company
After the team has researched and investigated this potential market and has developed a strategy to import Phuc Long's tea to the Korean market, the group has thoroughly understood this market, eliminating the conflicts of the strategy and limit unwanted risks for their products when entering this new
Because it is a strategy to penetrate through a new market, the import and export of products is highly focused so that when reaching consumers, the quality of the product remains uniform.
C ONTROL
• Determining Marketing Objectives: State the criteria the company wants to achieve
• Establishing Performance Standards: Based on the figures that the company shows through sales, marketing research
• Comparing Results with Standard Performance: Compare sales with objectives
• Analyzing the Deviations: analyze the result through research
• Rectification and Improvement: understand problems and suggest plan for next year
LIST OF REFERENCES
1.Armstrong, P K (2017) Principles Of Marketing Chicago: Global Edition
2 Kotler, P (2011) Marketing Management Chicago: Prentice Hall
3 Philip Cateora (2019) International Marketing New York: McGraw-Hill Higher Education
1 Song-I (2021) 8 BEST KOREAN TEA BRANDS IN 2021 From KOREA TRULY: https://koreatruly.com/korean-tea-brands/
2 Yoon, L ( 2021) Value of foreign direct investment (FDI) inflows to South Korea from 1996 to 2020 From Statista : https://www.statista.com/statistics/1221147/south-korea- foreign-direct-investment-fdi-inflows/
3 SOUTH KOREA: FOREIGN INVESTMENT (2021) From Santander Trade: https://santandertrade.com/en/portal/establish-overseas/south-korea/foreign- investment
4 Tea (2021) From Statista: https://www.statista.com/outlook/cmo/hot-drinks/tea/south- korea#revenue
5 Samuel, P (2021) Vietnam’s High Growth Import and Export Industries From Vietnam Briefing: https://www.vietnam-briefing.com/news/vietnams-high-growth-import-and- export-industries.html/
6 안녕하세요 (Hello) and Welcome to our Guide to South Korean Culture, Business Practices & Etiquette (2020) From Commisceo Global: https://www.commisceo- global.com/resources/country-guides/south-korea-guide
7 Religion in South Korea (2021) From Wikipedia: https://en.wikipedia.org/wiki/Religion_in_South_Korea
8 Working in South Korea (2020) From Just Landed: https://www.justlanded.com/english/South-Korea/South-Korea-Guide/Jobs/Working- in-South-Korea
9 Mani, D (2018) Education in South Korea From Wenr Wes: https://wenr.wes.org/2018/10/education-in-south-korea
10 O'Neill, A (2020) South Korea: Age structure between 2010 to 2020 From Statista: https://www.statista.com/statistics/242558/age-distribution-in-south-korea/
11 Yoon, L (2021) Urban and rural population in South Korea from 1997 to 2020 From Statista: https://www.statista.com/statistics/603679/south-korea-urban-population/
12 Government of South Korea (2021) From Wikipedia: https://en.wikipedia.org/wiki/Government_of_South_Korea
13 South Korea: Political stability (2020) From The Global Economy: https://www.theglobaleconomy.com/South-Korea/wb_political_stability/
14 South Korea (2020) From Heri Tage: https://www.heritage.org/index/country/southkorea
15 O'Neill, A (2021) South Korea: Population growth from 2010 to 2020 From Statista: https://www.statista.com/statistics/604670/population-growth-in-south-korea/
16 South Korea (2021) From The Nation Law Review.: https://www.natlawreview.com/jurisdiction/all-international/south-korea
17 Financial stability index (FSI) in South Korea from January 2019 to May 2021 (2021) From Statista: https://www.statista.com/statistics/1237820/south-korea-financial- stability-index/
18 Sunju, L (2015) Social Security System of South Korea
19 Health Insurance and the Healthcare System of South Korea Explained (2020) From InternationsGo: https://www.internations.org/go/moving- -south-korea/healthcare to
20 Economy of South Korea (2021) From Wikipedia: https://en.wikipedia.org/wiki/Economy_of_South_Korea
21 Geography of South Korea (2021) From Wikipedia: https://en.wikipedia.org/wiki/Geography_of_South_Korea
22 National highways of South Korea (2021) From Wikipedia: https://en.wikipedia.org/wiki/National_highways_of_South_Korea
23 List of airports in South Korea (2021) From Wikipedia: https://en.wikipedia.org/wiki/List_of_airports_in_South_Korea
24 Mass media in South Korea (2021) From Wikipedia: https://en.wikipedia.org/wiki/Mass_media_in_South_Korea
25 HÀNH TRÌNH CỦA TÁCH TRÀ ĐẬM VỊ (2015) From Phuc Long : https://www.phuclong.com.vn/tra/hanh-trinh-cua-tach-tra-dam-vi
26 VỀ CHÚNG TÔI (n.d.) From Phuc Long : https://phuclong.com.vn/ve-chung-toi
Yearly Sales forecast (Won) Amount Unit Price Sales
Appendix: Member’s group work assessment
1 Company’s mission statement and short profile
Doan Minh Phuoc 1 Instant coffee industry analysis
6 Financial paper and expense budget
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CHƯƠNG 2 mkt service - Marketing dịch vụ
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Chapter 7 - Tiếng Anh căn bản
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Chapter 11 - Tiếng Anh căn bản
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BT Vật lý 2 lần 2 - Lecture notes 3123