(Tiểu luận) topic analysis of the phuc long’s marketingstrategy

HO CHI MINH OPEN UNIVERSITY

SCHOOL OF ADVANCED STUDY Mai Ngọc Anh Tâm2154010829 Nguyễn Võ Tường Nhi2154010641

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II.Marketing research 11

C SEGMENTATION, TARGETING, POSITIONING (STP) 15

A.PHUC LONG INTRODUCTION

*Development process

- Phuc Long was established in 1968 on tea highland in Bao Loc (Lam Dong) with the expectation of the quality tea and coffee goods.

- During the 1980s, three coffee shops was opened on Le Van Sy, Mac Thi Buoi and Tran Hung Dao streets to introduce pure Vietnamese tea and coffee.

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

- In 2007, Phuc Long owned a tea platation in Thai Nguyen At the same time, Phuc Long invested in a tea and coffee processing plant in Binh Duong.

-In 2012, Phuc Long Coffee Tea store at Crescent Mall District 7 was launched which maked a turning point in the development history This was the official expansion of Phuc Long into the food and beverage industry.

- In 2015, Phuc Long built 10 stores in Ho Chi Minh city Customers were attracted by the strong tea taste, coffee products and drinks.

- In 2018, Phuc Long built the second factory in Binh Duong and owned two tea hills Thai Nguyen and Bao Loc At the same time, more than 40 coffee shops were built in: Ho Chi Minh, Binh Duong, Nha Trang, Da Nang, Ha Noi.

- In 2019, 70 stores will be developed and expanded the store system stretching from South to North Besides, increasing the consumption of tea and coffee products to all supermarkets, convenience stores and e-commerce channels.

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HO CHI MINH OPEN UNIVERSITY

- Phuc Long is a pioneer brand with numerous ideas and an inventor at the forefront of the tea and coffee industry, with over 50 years of generating excellent products and expanding company.

I Marketing environment

1 Micro environment

a Company:

-Top management: Currently, both Mr Lam Boi Minh and billionaire Nguyen Dang Quang are the legal representatives of the company.

b Suppliers:

-Phuc Long has its own agricultural system and factory with advanced technology, so we take the lead in raw materials This appears to benefit not just Phuc Long by allowing us to easily manage pricing and supply resources, but also customers by allowing them to purchase drinks at a reduced price when compared to other prominent brands.

c Marketing intermediaries:

-Phuc Long has simply accommodated resellers with high-quality coffee and tea throughout the country, but they are now expanding their business by using raw materials (coffee and tea leaf) to make tasty drinks in their own coffee shops and investing in plant construction in Thai Nguyen and Binh Duong with a modern production line to meet domestic demand as well as export to the rest of the world.

-Cooperating with Masan, Phuc Long Coffee & Tea has made a strong transformation when appearing in all Winmart and Winmart+ stores in the form of take-out kiosks It is expected that in 2022, Phuc Long will open 1,000 milk tea kiosks in Winmart+ stores.Besides, they also cooperate with

supermarkets, convenience stores and e-commerce channels to sell their products.

-They now have 16 extremely desired locations in Ho Chi Minh City Half of the shops are in the city center, in district 1: Mac Thi Buoi, Ly Tu Trong, Le Loi, and so on.

d Competitors:

-Within a 600 – 800 meter radius of Ben Thanh market in district 1 (HCM city), there are 5 out of 9 Starbucks stores, 10 out of 17 Coffee Bean and Tea Leaf stores, over 10 Trung Nguyen coffee stores, and even Phuc Long, which was formed

lately, has 6 outlets => These overseas coffee companies have the potential to be formidable competitors for Phuc Long.

-In 2019, the chain recorded a revenue of about VND 779 billion, an increase of 65% compared to 2018 and nearly 3 times higher than the result of 2016 This helps Phuc Long become the leader in revenue, outperforming other competitors other

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competitors in the milk tea industry such as Tocotoco, Gong Cha, Koi Cafe, Bobapop or Dingtea, Sharetea.

-However, if placed next to the "big" coffee like Highlands Coffee, The Coffee House or Starbucks, Phuc Long is still quite modest Highlands Coffee ranks No 1 in the industry with revenue of about VND 1,628 billion in 2018 and VND 2,200 billion in 2019.

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e Customer markets:

-Phuc Long's marketing department pursues the "customers’thinking" planning strategy in order to deliver consumer value and happiness - Phuc Long may have found another bright direction while maintaining its chain business model when coming to the US They chose to open a store in Cam County, where a lot of Vietnamese people live Phuc Long has selected a product that is quite few sellers in the US They do not choose coffee as the main product, although coffee is also on the menu along with many other drinks and foods They choose tea, a familiar drink, a typical Vietnamese culture f.Publics:

-Internal publics are the most important in the company Because this place includes internal employees inside your business Instead of focusing on the customer too much, we also need to pay attention to the people inside our business It is employees who bring many benefits to customers If the employees are not comfortable, they will not bring the best service, make them understand the situation and know the company's services.

-Win a lot of support from the general public thanks to a diverse menu of drinks, which often changes to match trends and customer preferences.

-Phuc Long has magnificent views, professional customer service and especially a qualitative coffee and tea.

2 Marco environment

a Demographic:

-Visitors to Phuc Long are very busy, from working people, tourists to students.

-People who regularly drink Phuc Long are distributed in Ho Chi Minh City and Hanoi.

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-Students (Gen Z) because they need space to study and they are easy to update with trends They easily like new drinks.

-Customers of the stores are usually young people, office workers They do not "sit in the field" but go in and out continuously -Vietnam is regarded as one of the most densely populated nations, with people of working age constituting around 70% of the overall population It is an unambiguously good indication for Phuc Long, a new beautiful coffee chain with a concentration on this specific age group.

b Economic:

-All of Phuc Long's products, including tea, coffee, cake, and so on, have a distinct personality, appealing to "connoisseur" clients, assuring fussy guests, and providing tremendous value to customers They have a wealth of experience However, Phuc Long's pricing is just 50-70 percent of Trung Nguyen's and 30-50 percent of Starbucks, The Coffee Bean & Tea Leaf, an advantage that all consumers appreciate The pricing is "cheap," but the service is always trustworthy.

c Technological:

-Phuc Long has taken advantage of technology to promote its products They used Grab food, GoViet, Shopee, to introduce customers to many new drinks Besides, many great deals will easily attract customers.

d Cultural:

-Vietnamese coffee culture exists and develops because of the Vietnamese soul Coffee philosophy and the seductive power of the coffee bean's humanity That miracle is a priceless gift that nature has bestowed on man So it seems that coffee is very attractive to

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Vietnamese people and has been handed down and improved to this day.

e Natural:

-Vietnam has a number of advantages in terms of terrain suitable for the growth of tea leaves, creating a unique flavor.

3 SWOT

a Strength

-Brand: Phuc Long is a famous name in the F&B industry with more than 9 years of business with large capital and strong investment from Masan.

-Material:

+ Thanks to two huge tea hills, Bao Loc and Thai Nguyen, Phuc Long has a plentiful source of tea materials - a strength that allows Phuc Long to compete in terms of flavor, appearance, and quality of Thai tea to the maximum

+ Coffee ingredients in Phuc Long are also the most plentiful and authentically Vietnamese, ranging from Central Highlands roasted coffee to roasted Voi coffee with both a beautiful color and a powerful flavor, or blended beans Moka, Culi, Arabica, and Cherry develop each quality to fit the tastes of diners + Especially popular with international clients are flavored coffees such as Chocolate coffee, Vanilla coffee, Hazelnut coffee, Caramel coffee, Rich coffee, and so on.

Establish a processing plant near where raw materials are cultivated in order to preserve the intrinsic "quality" of tea Furthermore, there is one additional large-scale processing facility in our country's huge industrial park - Binh Duong - that fulfills HACCP criteria and assures the supply of quality raw materials for chain shops, the domestic market, and client demands Exporting via challenging

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markets such as the United States, Japan, Indonesia, and the Philippines, among others.

Based on the advantage of raw materials, Phuc Long develops a highly fair and customer-friendly pricing strategy; the price of beverages is only 50% - 70% of the price of similar drinks at Highland and Starbucks, even if the ground rent remains the same To meet the demands of each consumer, the menu includes 63 various kinds of milk tea Fruit tea, smoothies, coffee, and crushed ice are all equally delicious, helping to broaden guests' options when they visit Human resources: include properly qualified bartenders, as well as the majority of the service workers, who are vibrant, creative, and passionate young individuals.

b Weakness

Seating and space are limited in the city center; clients who do not have a seat must wait a long time or order takeaway.

Parking space is narrow and scarce.

Having a large number of drinks that are identical to well-known brands provides no competitive advantage.

F&B websites and applications are poorly maintained, have little interaction with customers, and many customers complain about poor customer care.

Communication is not diversified, only facebook ads c Opportunities

Phuc Long's early success at its California branch is the driving force behind and opens up many new chances for Phuc Long to grow into other markets, due to the tremendous support of abroad Vietnamese and local people.

Vietnam has been a member of TTP for about 7 years and has established solid ties with various nations such as the United States,

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Australia, and Japan, among others, which will serve as a foundation for Phuc Long's commercial development in these areas.

With MasanGroup's hospitality and support, Phuc Long is actively pursuing the Point of Life strategy, and the potential to develop its network of its own stores and kiosks in Wincomerce will help the revenue figure rise.

-Foreign clients' tastes, particularly those from Europe, will differ from those of Asians, thus the brand flavor must be upgraded while retaining the intrinsic essence of Phuc Long.

-Changing purchasing habits is a constant problem for Phuc Long, and firms in the F&B industry in general.

-Strong rivalry from F&B industry heavyweights such as Highland Coffee, Starbucks, The Coffee Bean & Tea Leaf, and others.

II.Marketing research

1 Description of the results of the survey sample.

-Gender: Of the total of 57 respondents, 70.2% are female-39 people and 16 are male, accounting for 28.1% And 1.8% of other sexes.

- Occupation: 68.4% are students (39 people); there are 18 people and 31.6% are office workers (people)

-Purchase decision:89.5% customers affected by their family members, friends and colleague Anh 10.5% of other affected by advertisement.

2 Assess the level of customer satisfaction for Phuc Long’s products and services.

a Level of product satisfaction:

From the pie chart that we have surveyed, it can be seen that Phuc Long is the type of coffee and tea store that many people

appreciate The index shows: 98.2% of people find it delicious 1.8% of end customers unsatisfactory.

Customers pleasure with the quality products which make up 93% ( 53 people) and 5.3% with special offer And 1.8% with the price.

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b View:

-Through the survey, we can see that the majority of customers are pay attention for the price, quality and location (around 49 – 50 people) and nearly 45 people who concern about a discount and 42 people who care the fame of brand.

c Why do customers choose Phuc Long?

- The majority of customers (38.6%) said they liked the famous brand and 36.8% people who love quality of Phuc Long's drinks.

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- The remaining few like (14%) choose to come to Phuc Long to service experience The location is easy to find and extremely convenient for purchase (8.8%)

C SEGMENTATION, TARGETING, POSITIONING (STP)

I Segmentation

Demographics and Psychology are used by Phuc Long Coffee & Tea to identify its market category.

a Demographic Age:

-Under 18: Phuc Long is a place chosen by a large number of customers in this age group This group of customers are mostly students Need a place to gather friends after school because coffee shops have air conditioning systems and free wifi access or a place to do homework together

-18-30: This group of customers are mostly office workers or freelancers and have stable incomes This group of customers often choose Phuc Long to rest at lunch and work The first reason is that

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Phuc Long's shops are opened in places where there are many companies that are convenient for commuting.

-30-50: This is a group of married customers, successful people, people with stable jobs This group of customers often go to tea with family and friends on the weekend, or to discuss business with their customers.

-Gender: male and female

-Occupation: students, office workers, freelance workers, professional.

b Psychographic

-Class: a wide range of clients from the middle to upper classes, including office workers, students, and tourists.

-Lifestyle: minimalist lifestyle c Behavioral

-Quality: special tea taste, spacious and clean shop space, beautiful views to check-in.

-Convenience: Shops located in central places II Targeting

To compete with the big players in the coffee industry, Phuc Long made a wise choice in selecting this market niche with a huge number of clients Phuc Long has been able to target a wide range of customers, from middle- to high-income workers to tourists and students, thanks to this careful selection.

III Positioning

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D.4P’s MARKETING PLAN

I Product

1 Information about the new drink.

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-Name: “ Phuc Long cherry long nhan tea”

-Material: Paper cups and paper straws At the present most people are aiming to live green and protect the environment Using paper materials will strike right into the minds of young people who want to protect the environment

a Three levels of product

 Core customer value : Committed to offering quality products and the best service.

 Actual Product

Brand name: Phuc Long

Quality level: Phuc Long uses the high-quality tea and coffee from their farm

Packaging: Phuc Long logo is printed on cups for easy recognition.

 Augmented product

Delivery and credit: In a direct way, customers can go to supermarkets, convenience stores, or Phuc Long’s stores to buy products Besides, you can buy products by online apps like

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