Final projectbuilding a digital transformationsolution for enterprises

Phuc Long kiosk model combined with Vinmart source:phuclong.com.vn...9Figure 1.3 Bestsellers ’s Phuc Long tea...11Figure 1.4 Interior space at Phuc Long store.. Overview of the enterpris

FINAL PROJECT BUILDING A DIGITAL TRANSFORMATION

SOLUTION FOR ENTERPRISES

GROUP 7

PHUC LONG BUSSINESS

Teacher: PhD Lâm Hồng Thanh

TABLE OF CONTENTS

I Overview of the enterpri

1.1 The history of fo

1.2 Vision, mis

1.2.1 Vis

1.2.2 M

1.3 B 4

1 4

5

5

6

8

8

1.3 8

1.3.8 Cost structur 10

1.3.9 Revenue Stream 10

1.4 Business operation overview 10

1.4.1 Field of Business 10

1.4.2 Phuc Long's products 10

1.4.3 Price 11

1.4.4 Primary activities in stores 11

II Analysis of enterprise 12

2.1 SWOT 12

2.1 1 Strengths: 12

2.1.2 Weaknesses: 14

2.1.3 Opportunities: 14

2.1.4 Threats: 15

2.2 Solution/Recommendation: 15

2.2.1 Identify the problem 15

2.2.2 Role of the App: 16

2.2.3 Leverage social media to share brand stories through gamification 23

2.2.4 The benefits of solving these problems: 24

III Implementation 25

3.1 Planning 25

3.1.1 Long-term goals: 25

3.1.2 Short-term goal: 25

3.2 Implementing 27

3.2.1 Phase 1: 27

3.2.2 Phase 2: 28

3.3 Risk management 32

3.3.1 "Inherent" corporate culture: 32

3.3.2 High cost: 32

3.3.3 Information leakage: 32

IV Conclusion 32

4.1 Solution Evaluating 32

4.1.1 Suitability: 32

4.1.2 Feasibility: 33

4.2 Solution Controlling 34

4.3 ROI 36

REFERENCES 40

LIST OF FIGURE

Figure 1.1 Phuc Long's memorable milestone 2

Figure 1.2 Phuc Long kiosk model combined with Vinmart (source: phuclong.com.vn) 9

Figure 1.3 Bestsellers ’s Phuc Long tea 11

Figure 1.4 Interior space at Phuc Long store .12

Figure 2.1 Phuc Long App’s project (Source: behance.net) 17

Figure 4.1 Phuc Long's business results over the years 36

Figure 4.2 Revenue and profit after tax of Phuc Long compared to other brands .37

I Overview of the enterprise

1.1 The history of formation

In the famous tea plateau Bao Loc ( province Lam Dong), Phuc Long was createdwith the anticipation of bringing quality tea and coffee products in 1968

In the 80s, Phuc Long operated the first three Ho Chi Minh City stores on TranHung Dao, Le Van Sy, and Mac Thi Buoi streets to introduce pure Vietnamese teaand coffee products to domestic and international customers In particular, the PhucLong Mac Thi Buoi store located in the center of District 1 is the first to servePhuc Long's signature brewed tea drinks and high-class brewed coffee Thesestores were usually only operated at luxury stores and restaurants of that period

In 2000, Phuc Long Trading Production Co., Ltd was officially launched.

In 2007, Phuc Long owned a tea hill in Thai Nguyen Phuc Long finds Thai

Nguyen Tea to be competitive in terms of taste, appearance, and distinctive waterquality, but like teas in other localities, controlling residues by food hygiene andsafety standards Products of the world, Thai Nguyen tea still suffers the same fate

of "not meeting standards" Clearly defining the goal to maintain and protect theinherent natural quality of Thai Nguyen tea, Phuc Long quickly decided to invest

in building a tea processing factory in Thai Nguyen Phuc Long hopes that bysetting up the factory right in the raw material area, it is possible to ultimatelymaintain the "quality" of Thai tea while minimizing the conditions for growing,harvesting, and processing to ensure overall quality management issues At thesame time, in 2007, Phuc Long invested in a tea and coffee processing plant inBinh Duong, equipped with many modern equipment and machines, with HACCPcertification This process ensures food safety and hygiene standards, intending toprovide the supply of quality products, serve the domestic market, and meet export

demand Also, from here, Phuc Long Tea has fully met the standards to be present

in fastidious markets such as the US, Japan, Indonesia, and the Philippines…

In 2012, one of the Phuc Long Coffee & Tea stores at Crescent Mall District 7 was

launched, marking the official expansion of Phuc Long into the food & beverageindustry (Food & Beverage) Also, the Phuc Long store was operated under theautomatic model served in a modern space Together with our team of effectiveassociates, Phuc Long made an event marking a turning point in the developmenthistory of Phuc Long

In 2015, Phuc Long built ten stores in Ho Chi Minh City Step-by-step brand

positioning is associated with strong tea and coffee products and drinks incustomers' minds

After three years, the second factory in Binh Duong was built, owning two tea

hills, Thai Nguyen and Bao Loc Likewise, more than 40 Phuc Long stores werebuilt in Ho Chi Minh City, Binh Duong, Nha Trang, Da Nang, and Hanoi 2018 isalso the year Phuc Long decided to expand the brand to the North, after a period ofresearch and market survey with Phuc Long's first store located in Hanoi

In 2019, develop 70 stores and continue to build and expand the store system

stretching from South to North Besides, increasing the coverage of tea and coffeeproducts to all systems: supermarkets, convenience stores, and e-commercechannels

100% (5)

17

Trắc nghiệm Chuyển đổi số

78% (27)

2

Practical 02 Google Teachable Machine

Chuyền

đổi số 100% (1)

31

Figure 1.1 Phuc Long's memorable milestones

Phuc Long believes that each tea and coffee product will be more and moreexcellent when created from constant striving and passion Furthermore, theconnection based on trust, honesty, and trust contributes to bringing the beauty oftea & coffee culture to fly higher and further Continuing efforts, from the firststore, until now, Phuc Long has built more than 80 stores in the areas of Ho ChiMinh City, Binh Duong, Bien Hoa, Can Tho, Da Nang, Nha Trang, and Hanoi,serving fresh drinks from tea and coffee Not stopping there, Phuc Long continues

to develop and expand the storage system from South to North Increase productcoverage to all systems: supermarkets, convenience stores and

1.2 Vision, mission, and core values

1.2.1 Vision

With the view of its corporation constantly expanding the market - sustainabledevelopment- Phuc Long strives to become a company specializing in producingand exporting high-value tea and coffee in Vietnam

Phuc Long wishes to create a Vietnamese brand with class and quality reflected ineach product, slowly maintaining its role in the international market

Chuyền đổi

số 75% (4)

11

To create joy and affection for customers, we must constantly shine Do not let theability to sleep regularly challenge difficulties; constantly renew the insidevaluable.

Create high value by understanding, empathy, and fundamental value propositions,satisfying customer satisfaction

1.2.3 Core values

For customers: Committed to providing the best quality products and services.For employees: Building a professional, dynamic, creative, and humane workingenvironment, creating favorable conditions for high income and fair developmentopportunities

For society:

Harmonizing business interests with social benefits

Actively contributing to community-oriented activities

Demonstrating a sense of responsibility towards society

Electronic payment apps: Customers have additional options due to Phuc Long'spartnership with electronic payment applications like Momo, Shopee Pay, and

Airplay, and apps that offer discount codes during special events will encouragecustomers to visit the shop more often to use the discount coupons.

Supermarkets and convenience stores: Phuc Long collaborates with supermarketsand convenience stores to display and sell its tea and coffee goods

Cooperation with Masan: On May 24, Masan invested 15 million USD inpurchasing 20% of Phuc Long Heritage Joint Stock Company As a result, morethan 2,200 Vinmart stores now have "Phuc Long kiosk" Although it wasimpossible to meet customer demand for on-site services during the epidemicbecause of Directive 16, a partnership with Vinmart to open Phuc Long takeawaystores still allowed customers to use the company's products As a result,corporations could generate profits at that moment when most of the coffeeindustry was severely impacted by Covid 19

Shipping unit: To address the demands of clients during the epidemic periods, PhucLong also works with other transportation applications, including Gojek,GrabFood, Baemin, and the shipping firm itself

1.3.2 Key activities

Sell tea and coffee products: Phuc Long's main activity is to sell tea and coffeeproducts Due to the supply from two sizable tea hills in Thai Nguyen and BaoLoc, the cost of products is relatively low It makes this activity a lucrativeenterprise and Phuc Long's primary source of revenue

Sell new goods for special events: Additionally, introducing new goods for specialoccasions, such as mooncakes, gift bags, water glasses, keychains for openings,Etc It helps customers be more enthusiastic and interested in Phuc Long on everyspecial occasion

1.3.3 Value propositions

Always available when customers need:

Phuc Long focuses on building its brand and always chooses to launch in density areas of prominent metropolia like Hanoi and Ho Chi Minh City, whichwould easily make their target customers notice and remember So, Phuc Long'sreputation has been in customers' minds ever since Additionally, by buildingseveral branches close to schools, Phuc Long is now simple for customers to findeverywhere

high-Reasonable price, suitable space for customers' needs:

Customers at Phuc Long range from visitors to students to working people Thusthe prices are affordable for most individuals Additionally, Phuc Long's customersmay study, work in groups, or even work alone, thanks to the design of open space,high-rise, and group tables and chairs

Good product quality: Products from Phuc Long are praised for having uniquetastes and robust tea flavors, which keeps customers coming back

1.3.4 Key resources

Two tea plantations and factories:

The most significant potential source for Phuc Long is its ownership of two teaplantations in Lam Dong and Thai Nguyen, as well as two factories in Binh Duong.These places enable Phuc Long to allocate capital among its retail locations andsell its tea and coffee products With more than 80 locations and more than 50years of experience in the tea and coffee-growing industries, Phuc Long hascemented its name in customers' hearts, which helps maintain a continuousconnection with suppliers

Proper training program: Along with having extensive experience operatingstores, Phuc Long has an appropriate program of training that ensures thatcustomers always perceive the employees and products to be of the highest caliberand to be friendly and professional.

Prime locations, social media (Facebook platform): In the past, Phuc Longprioritized selecting prime locations to dazzle customers rather than spendingmuch time advertising on social media and the internet At the moment, Phuc Long

is focusing on Facebook Fanpage promotion and conducting reviews andadvertisements on Facebook videos about its new campaigns and items

1.3.4 Value propositions

Always available when customers need:

Phuc Long corporation focuses on building its brand and always chooses to launch

in high-density areas of famous areas like Hanoi and Ho Chi Minh City, whichwould easily make their target customers notice and remember As a result, PhucLong's reputation has been in customers' minds ever since Additionally, bybuilding several branches close to schools, Phuc Long is now simple for customers

to find everywhere

Reasonable price, suitable space for customers' needs: Customers at Phuc Longrange from visitors to students to working people; thus, the prices are affordablefor most individuals Additionally, Phuc Long's customers may study, work ingroups, or even work alone, thanks to the design of open space, high-rise, andgroup tables and chairs

Good product quality: Products from Phuc Long are praised for having uniquetastes and robust tea flavors, which keeps customers coming back

1.3.5 Customer relationships

The self-service model Phuc Long offers customers technological equipment andappropriate areas for their customer base One way of communicating withcustomers is by improving technology like self-service vibrating cards and socketsfor customers to utilize electrical equipment in the store Furthermore, Phuc Longconsistently gives customers trust in the quality of their products and services Forinstance, when a customer found duct tape in their tea cup at a branch in District 1,Phuc Long immediately contacted the hospital and offered to make up for thedamage Customers can feel entirely safe in the company's reputation thanks tothis

Additionally, Phuc Long always seeks customer feedback on environmentalconcerns, so it is wise to use its lenses and temporarily reduce plastic usage.Moreover, Phuc Long has channels for communicating with its customers,including a website and a Facebook fan page It regularly runs specials and sharesfacts about the company to make customers aware of it and feel more comfortable.1.3.6 Customer segments

Phuc Long has two customer groups: Those who buy finished products such as tea,coffee, and items for special occasions like Tet and the Mid-Autumn Festival andthose who purchase prepared goods from the chain's counter

Phuc Long targets various customers, from working people and tourists tostudents Especially, Phuc Long pays attention to female customers; that is why itfocuses on milk teas that are good for health and skin In addition, low-sugar, fat-reducing drinks are also considered by the company

1.3.7 Channels

Direct communication channel:

This channel is distributed in Phuc Long stores in expensive locations and kiosks

in Vinmart Phuc Long has set up stores in prime locations in big cities such asHanoi and Ho Chi Minh City Ho Chi Minh In the first year, Phuc Long expanded

to Hanoi with its first store in the IPH mall, which, although not the best choice, isalso close to many office areas and universities Currently, Phuc Long has nearly

100 stores across the country, and the stores are concentrated in big cities with allgolden locations and extremely potential lands Phuc Long's products are not onlydisplayed and sold at stores but also in many supermarkets and commercialcenters, convenience stores, Etc

Figure 1.2: Phuc Long kiosk model combined with Vinmart (source:phuclong.com.vn)

Indirect communication channel:

We tend to concentrate on the website phuclong.com.vn and social media such asour Facebook fan page Phuc Long's Facebook page now has more than 450,000followers This promotion of communication helps Phuc Long push productscloser to customers

1.4 Business operation overview

1.4.1 Field of Business

Currently, Phuc Long operates in two fields:

Producing, exporting, and trading in packaged tea and coffee products

Foodservice business at the system of stores and kiosks: all kinds of food, drinks,cakes, savory cakes, and door-to-door delivery services

1.4.2 Phuc Long's products

Phuc Long's products are divided into two categories: drinks at the store andpackaged beverages In, Phuc Long's menu at the restaurant includes:

Classical Coffee: A line of drinks for typical coffee lovers such as cappuccino,Phuc Long Cappuccino, Cafe Latte, and Chocolate in which black coffee and milkcoffee stand out.

Cold Blend Beverage: A line of blended iced drinks with highlights such asChocolate Blend with Almonds and Iced Green Tea

Special Tea: The beverage line makes Phuc Long's name and brand with topfavorite tea dishes such as Phuc Long milk tea, jasmine tea, peach tea, strawberryOolong tea, herbal tea, Etc

Figure 1.3 Bestsellers ’s Phuc Long tea

1.4.3 Price

The selling price of Phuc Long tea ranges from 30,000 VND to 55,0000 VND fordifferent sizes

The cost of Phuc Long Cafe ranges from 35,000 VND to 45,000 VND

The cost of other dishes at Phuc Long, such as cakes and bread, are all the sameprice, from 19,000 VND - 35,000 VND

1.4.4 Primary activities in stores

When there are orders, Phuc Long staff will prepare orders according to customers'requests and deliver them directly (when customers buy now at the store) or

indirectly(when customers buy online, Phuc Long will deliver the goods to thecarrier) to the customer.

Phuc Long's packaging is designed with a great liner with a one-way valve to drainwater and keep the freshness of the product to ensure product quality

Figure 1.4 Interior space at Phuc Long store

II Analysis of enterprise

2.1 SWOT

2.1 1 Strengths:

With a diverse customer base, Phuc Long targets customers: from working peopleand tourists to students

The price is suitable based on the available strength of tea and coffee, reasonablefor customers' pockets A cup of Phuc Long's tea only ranges from 30,000 - 45,000VND, equal to 50 -70% of the price of Trung Nguyen and 30 - 50% of Starbucks,The Coffee Bean & Tea Leaf An attractive price strategy has attracted manydifferent audiences, from schoolchildren and students to working customers or theelderly Thanks to many such customers, Phuc Long has become as famous andpopular as it is today.

Product quality is perfect, with investment, creating its mark in customers' heartsthrough the bold USP (Unique Selling Point) As a pure Vietnamese drink brand,with the characteristic of "bold" tea, it is hard to find in any other market inVietnamese market

Distributing in prime and convenient locations such as commercial centers,significant streets, and crowded places is convenient for traveling and createfavorable conditions for delivery to offices and companies

Beautiful logo, brand image "dyeing in dark green tea", creating an eye-catchingfeeling, easy to write in the mind of customers

Creating trust from customers by self-sufficient raw materials from fresh tea hills

on the plateau, not dependent on third parties,

Applying technology to their business model: Currently, Phuc Long's products areavailable online food ordering applications such as Gojek, Baemin, and NOW, They are trying to bring their products and "touch" more customers In addition,Phuc Long accepts many forms of payment, such as payment via credit card and e-wallet, for more convenience for customers At the end of November 2020, PhucLong launched the "Phuc Long Gift Card - a cashless card" In addition, Phuc Longalso issues membership cards (membership), including levels: Diamond, Vip, and

Member, so that customers can accumulate discount points It is also a gooddirection to improve customer loyalty with this coffee chain.

With a network of more than 2,200 Vinmart stores nationwide, Phuc Long willhave more large distribution channels to reach consumers, and this is anopportunity for the North to advance because this brand is not strong in theNorthern market

Communication and customer interaction on social media platforms have not yetdeveloped strongly Phuc Long's two main communication channels are Facebookand the Website Agree that Phuc Long focuses more on product quality, price,distribution, human factors or equipment, facilities, Etc However, communicationactivities about the story Branding and communication activities on digitalplatforms are also ways to retain loyal consumers and attract new probableconsumers

2.1.3 Opportunities:

Vietnam's milk tea market can be considered a "gold mine" for investors because

of its high profit and good revenue As reported by market research firmEuromonitor, Vietnam's milk tea market has an annual growth rate of about 20%.Through the cooperation with Masan, taking advantage of this group's extensiveretail chain, Phuc Long can open up new export opportunities on the cross-bordere-commerce platform

2.1.4 Threats:

The F&B industry has a high level of competition among brands Phuc Long has toconfront giants like Starbucks, The Coffee Bean & Tea Leaf, but Phuc Long alsohas to compete with domestic rivals such as Trung Nguyen Legend, Highlands,The Coffee House, and Cong Cafe

The low entry barrier makes many people flock to the F&B business Phuc Longfaces many new competitors and a high level of competition every day With idealconditions for growing tea and coffee, the Vietnamese market is being evaluatedwith a reasonable growth rate In the future, Vietnam will have more big playersentering the market Phuc Long will likely compete with more economicallyresourced competitors in the future

Changing buying behavior is always a big challenge for Phuc Long and businesses

in the F&B industry

Recently, they require much experience doing business in the international market.Currently, Phuc Long is still young in the international business segment and doesnot have much experience in this field, so entering the US market will not be easy

2.2 Solution/Recommendation:

2.2.1 Identify the problem

Thanks to the SWOT analysis, group 7 has identified strengths and weaknesses andopportunities and challenges that Phuc Long is facing Our team's solution to PhucLong will focus on improving the customer experience First, that is, solving thefollowing problems:

Customers' tastes change over time, requiring Phuc Long to find new directionsCustomers have to wait to buy Phuc Long's drinks at peak hours, which is quiteinconvenient

Communication and customer care activities on digital platforms are not strongenough

The quality of service and preparation at Phuc Long's branches is still unevenSolution: In the early stages, focus on improving the customer experienceLaunching a separate mobile application for Phuc Long to solve the problem ofimproving customer experience:

Phuc Long has operated very effectively when cooperating with transportcompanies such as Grabfood, Shopee Food, Baemin, Etc However, after takingadvantage of the significant number of customers available on these platforms,Phuc Long should consider "retaining" these customers to "stay" with Phuc Long.Moreover, building a separate mobile application will solve the problem ofexploiting customer insights and personalizing customer experience to better takecare of loyal customers and attract new potential customers

2.2.2 Role of the App:

The online App delivers an information channel for Phuc Long With completeinformation and functions such as website, App with full product information, findthe nearest store

Figure 2.1 Phuc Long App’s project (Source: behance.net)

Create excitement and increase customer loyalty with the membership cardprogram When trading at the store and ordering online: for every 10,000 VND,you will get 1 point and 50 points corresponding to 500,000 VND, and customerswill receive a drink of their choice Customers have voluntarily updatedinformation and are more motivated to come to The Coffee House thanks tomilestones

Send notifications to separate customer groups An account that has never placed

an order through the App will continuously receive a buy 1 get one voucher andencourage booking through the App It helps Phuc Long approach its loyalcustomer file and attract new potential customers

The App provides an electronic menu, ordering, and payment feature: The App has

a beautiful, easy-to-use interface with visually displayed food images and anintelligent dish suggestion system to introduce to customers New drinks, featureddrinks or favorite drinks at the shop make it easier for customers to make choicesand stimulate them to order more, try new, or order more possible dishes, whichthe ability to generate higher revenue and profit This recommendation system alsoreplaces part of the staff who is recommending dishes so they can focus on othertasks that provide the best customer experience

Virtual reality technology applications for Phuc Long

Phuc Long business AR card: usually, when businesses introduce their products tothe crowd, now virtual reality technology with AR cards introduces smallbusinesses, people will easily access information With just a smartphone and scanthe QR code on the Phuc Long referral card, customers will automatically find outall that information by using that application within about 5 minutes as history,forming goals Company's online sales app Since then, with small business cardslike other traditional companies, now through AR cards, it has become a versatileand attractive, unique tool

AR Menu: when entering the Phuc Long tea shop, the essential thing for customers

is to order Ordering will no longer be as traditional as before, as customers willask the staff what is the best seller, looking at the Menu in front of them blankly.Now with AR Menu technology, it will be easy to reach out to customers The

Menu also presents all dishes and drinks, down to their prices Customers decidewhat to order and pay for and understand your brand story These first steps alldepend on the Menu in their hand AR Menu Phuc Long allows customers to:Preview a 3D image of the drink you order, along with indicators such as calories,nutritional content, components, and ingredients.

Choose your language, and enjoy your choice of drinks and food so that it willattract a large number of international guests

The food and beverage processing process is transparent, hygienic, and highquality

See reviews and comments of previous customers

Customers actively choose dishes, so it will help save the shop's peak hours andsave a source of human resource costs at the restaurant

AR signs/banners/billboards placed at stores and busy places such as commercialcenters, many passersby: To increase brand awareness, billboards introducing thecompany's Logo are indispensable

The company's vision and mission, Phuc Long, reaches many customerseverywhere The company's brand logo is the first point to attract customers who

do not know the shop Nevertheless, augmented reality (AR) technology will do it

to make Phuc Long different from other companies With a smartphone, customerscan bring the Phuc Long logo, then a series of virtual videos and images willappear to attract customers who want to set foot in the store quickly AR menu willhave features such as: