analyze the marketing strategy of an existing or self created brand

2.2.1 The supplier:2.2.1 Picture from Xuan Thinh FarmTo be able to create a packaged milk tea product with quality and quantity to ensure thecompany needs to import the necessary materia

I INTRODUCTION:

In an ever-changing world, humans are constantly creating new things Due to creativity, theculinary world becomes richer Milk tea is a novel beverage and attracts a lot of users Currently, in the market with famous brands such as Phuc Long, Koi, etc., homemade milk teashops are appearing all over the street But everything has two sides not except milk tea It can bebought at the shop will quickly spoil and cannot be preserved for a long time Moreover, theshipping cost per cup of milk tea is very high Milk tea shops will not be open all day, socustomers cannot buy milk tea at certain time frames

Understanding consumer psychology, the company has researched and created new products.mTEA is a milk tea package with pearls, made in 2022 "Quality - Convenience - CustomerSatisfaction" is the criterion that the company uses when bringing products to consumers.With tea leaves cared for by farmers, the tea will be rich and delicious, boosting the user's spirit Raw materials of clear origin help customers feel secure when using them Those are thecommitments our company brings when launching this product

II CHAPTER 1: OVERVIEW mTEA

mTEA is a new company established in 2017 specializing in milk tea production at a cheap pricefor purchasers mTEA's products are always highly appreciated in the market and chosen bymany customers Moreover, based on the needs of our customers, we have launched a newproduct that is packaged milk tea The packaged milk tea was created with the aim of helpingcustomers not have to go to the store many times to buy milk tea and can be preserved for a longtime

III CHAPTER 2: CURRENT MARKETING SITUATION2.1 Macroenvironment:

2.1.1 Demographic environment:

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Vietnam is a country with nearly 99 million people (updated data in 2022) It has a rate ofpeople living in urban areas up to 40% and the economy is growing strongly Moreover, thepopulation of Vietnam accounts for the majority in the age group of 15-44 At this age, they arevery easily influenced by trends, promotions or eye-catching images Therefore, the potentialcustomers in this market are Millennials (those born between the 1980s and early 1990s) andGen Z (those born around 1995 or later) Moreover, the fact that many people live in urban areasfacilitates transportation, trade and customer access.

2.1.2 Economic environment:

From 2002 to 2020, the GDP of Vietnam increased 3.6 times, reaching nearly 3,700 USD.While the poverty rate (according to the standard of 1.9 USD/day) dropped sharply from over32% in 2011 to less than 2%

Vietnam's economy has shown remarkable resilience during periods of crisis, most recently theCOVID-19 pandemic GDP growth slows to 2.58% in 2021 due to the arrival of the Delta variantbut is recovering to 5.5% in 2022

In December 2021, the import and export of goods continued to be a bright spot of the economywith the total import and export turnover of goods estimated at 66.5 billion USD, up to 6.4%compared to the previous month, previous year and increased by 19.7% over the same period lastyear In general, in 2021, the total export and import turnover of goods reached USD 668.5billion, up 22.6% over the previous year, of which exports increased by 19%; imports increased

by 26.5%

In 2021, Vietnam's GDP will reach about 368 billion USD, ranking 5th in the region and 41st inthe world Vietnam's GDP per capita in 2021 will reach about 3,743 USD, ranking 6th in theregion and 124th in the world Moreover, according to our survey, on average Vietnamese peoplewill spend 50,000VND or less on their drinks and mostly 20,000VND

The development in the economy can increase the demand of people and the willingness to payfor them in this country so it can create a significant change for our company

2.1.5 Political environment:

The stable legal and political situation of Vietnam is decisive in economic development,creating jobs, increasing incomes for workers, and increasing the consumption demand of thesociety This also has a positive impact on the creation and implementation of strategies inVietnamese enterprises in general and those in the dairy industry in particular

2.1.6 Cultural environment:

In Vietnam, consumers are fond of using sweets as well as canned products or related products Vietnamese people have a high demand for Internet access such as through theInternet, newspapers, television, etc Therefore, marketing, advertising and distribution activitiesfor customers become more convenient

milk-2.2 Microenvironment:

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2.2.1 The supplier:

(2.2.1) Picture from Xuan Thinh Farm

To be able to create a packaged milk tea product with quality and quantity to ensure thecompany needs to import the necessary materials including tea, milk powder, bubble, spice, andother ingredients such as brown sugar, white granulated sugar, etc

We choose some companies to become the main source of raw materials including:Xuan Thinh milk tea ingredients provide a full range of ingredients fromTopping, milk tea powder, pearls, and teas, Besides, the wholesale price is alsorelatively affordable

Vua an toan Co., Ltd also provides modern and safe milk tea-making tools andmachines

Sieu thi nguyen lieu currently owns a chain of 4 stores that provide safe,reputable and quality milk tea ingredients

2.2.2 The competitor:

(2.2.2) The milk tea market in Viet Nam

The milk tea market in Vietnam has fierce competition According to statistics, there arecurrently about 20 significant brands divided into 3 groups by size Firstly, the group has a largemarket share, with a scale of up to 150 stores These are mainly Vietnamese brands with flexiblefranchising policies such as Bobapop and TocoToco The second group concentrates on popularmilk tea brands with about 50 stores nationwide This group brands from China and Taiwan withhigh franchising costs such as Ding Tea, Phuc Long, and The Alley The third group is the groupwith about 20 stores in the system This group also focuses on many famous names but is stillstruggling to make a breakthrough in expanding chains like The Koi, and Easy Life The milk teamarket is considered a fertile business land Therefore, the phenomenon of widespread explosion

of milk tea shops will continue to take place, the market will be more and more exciting.2.2.3 Marketing intermediarises:

Resellers: we choose grocery stores, and convenience stores to display and sell ourproducts

Physical distribution firms: We cooperate with Transimex to transport goods and servethe service needs of customers

Financial intermediaries: we received a loan package with a low-interest rate to supportbusinesses from Vietcombank

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2.2.4 Customers:

(2.2.4) Accodring to the milk tea market research in 2020Currently, the main customers that milk tea brands are targeting are the Gen Y and Gen Zclasses, usually between the ages of 15-35, of which the most prominent is the age between 18-

25 who want to drink milk tea right away at home without having to go to milk tea shops orhave to pay shipping costs They are a group of young customers, accounting for a largeproportion of the population structure and enjoying milk tea so they can give the company alarge amount of profit At a reasonable provide tea with packaged pearl topping will be suitablefor the affordability of customers with low and medium incomes

IV CHAPTER 3: OBJECTIVES

The mTEA’s goals are guaranteed according to the SMART principle to help shape theshop's operations clearly and in the right direction for future planning When settingreasonable goals, investors can assess their capabilities and plan to implement them.SMART principles include:

S – Specific – easy to understand

M - Measurable: Measure

A – Attainable: Within your capabilities

R – Relevant: Relating to a shared vision

T – Time-Based: There is a deadline

Business goals:

2017 - 2018: The shop goes into stable operation, 100% of employees must beproficient in the job, and 100% of tools and equipment work well

Revenue in the first year of 2018 reached 2,000,000,000 VND

Profit in the first year reached VND 400,000,000, reaching 20% of revenue

By 2019, the business will return and start to have a net profit of 600,000,000 peryear The average number of products consumed per day is 350 products, the averagenumber of products per year is 127,750 products

The company's revenue is 20,000,000,000 with a product consumption quantity is800,000 in 2021 and will increase 15% in 2022

By 2025, mTEA plans to open more than 20 branches in Ho Chi Minh City Ho ChiMinh City and Hanoi with a scale close to and equivalent to the head office.Achievement:

The reputation of our brand is widespread in Vietnam and has some influence inneighbouring countries

The number of customers buying our product is stable

Received a good rating from customers on service quality through the surveys oncustomer satisfaction

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Can add new toppings to packaged milk tea but still retain the same taste as buyingmilk tea from other brands Produce more different flavours such as matcha, OreoCake Cream…

Open stores that only display our products in Ho Chi Minh City and Hanoi.Vision:

mTEA milk tea shop came into operation on July 3, 2019

mTEA will become a supplier of clean, health-friendly packaged milk tea tocustomers

In 2030, mTEA will establish a chain of milk tea shops providing Vietnamesebranded food services

Create a strong, solid brand when customers use our product

Increase the value of the store so that the management is satisfied, ensuring thepreservation of capital and increasing profits

V. CHAPTER 4: SEGMENTING, TARGETING AND POSITIONING

Age: Our main objection is children from 8 to 16 years old

Gender: both male and female

Income: with product’s low price, we focus on low-income consumers

4.1.3 Behavioral:

Personality traits: energetic, enthusiastic

4.1.4 Psychographic:

Lifestyle: interested in exploring new things

In conclusion, the main customers of our company are children and teenagers

4.2 Positioning Strategy:

As I mentioned, mTEA will be the first company to produce milk tea packagesincluding topping at low prices We bring into the market a product both old andnew It gives the purchasers the familiar flavor while trying new delicioustoppings

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VI. CHAPTER 5: S.W.O.T ANALYSIS:

5.1 Strength:

There are a few brands that produce package milk tea, and we are the first company toproduce package milk tea including topping

With package products, we easily take them away on trips or vacations

The price of our product is the cheapest on the market until now

Packaging is material that is friendly to the environment

There will be more competitors entering the market

There have been predictions of favoritism toward foreign brands among customers whoprefer Taiwan goods to domestic

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VII. CHAPTER 6: MARKETING MIX STRATEGIES

6.1 PRODUCT STRATEGY:

6.1.1 Product’s attributes:

mTEA packaged milk tea is a bag of milk tea powder with pearls, all ingredients arecompletely natural, safe for users' health Tea brought from the farm to the factory iscarefully processed through each stage, then fresh tea leaves are dried Fresh milk isbrought from the farm, through many steps of pasteurization, evaporation and coolinginto milk powder Pearls are imported from high-class brands, censored by the Ministry

of Health

6.1.2 Value propositions:

mTEA assures customers to bring quality products, fresh ingredients, and moderatesweetness like milk tea in stores In addition, mTEA also wants to let busy customers stillenjoy this wonderful drink

6.1.3 Packaging:

mTEA milk tea bags can make a cup of milk tea size L with a capacity of 750ml with a20g bag of pearls All are contained in biodegradable, environmentally friendly materials.The highlight of this product's packaging is that it is difficult to pour and can bepreserved for a long time

6.1.4 Branding:

6.1.5 Labeling:

(6.1.5) The front of mTEA Milk Tea

(6.1.5) The backside of mTEA Milk TeamTEA's main color is light brown, a simple color as our commitment to customers Thefront of the bag is a milk tea cup with the brand logo Behind is the date of manufacture,expiry date, and ingredients Moreover, the box is made of paper, the front is shaped like

a tea bag and the back, in addition to the basic information, also has instructions on how

to use the product

6.1.6 Product support services:

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The company now has a website as well as a fanpage of mTEA milk tea bags to serve andanswer questions for customers about related issues Not only that, customers can contactthe hotline to reflect directly.

6.2 PRICE STRATEGY:

The price strategy we choose is Customer Value-Based Pricing From our survey weknow that the customers need to use our packaged milk tea products and the costcustomers are willing to pay for our product is from 20,000-30,000VND so we choosethe customer value-based pricing to suit and attract more customers Then we charge theprice at 25,000VND and determine the cost to produce our product is lower than25,000VND It can be from 10,000 to 15,000VND

Moreover, this price we set is suitable for market-penetration pricing With this price, itcan help our new products penetrate deeper into the market and sell in more quantities

In addition, mTEA will provide many discounts up to 15% for the package of milk teaand many interesting events such as buy one get one free, get some free items

6.3 MARKETING COMMUNICATION STRATEGY:

6.3.1 Advertising:

Social media

The time people use their phones is increasing, advertising on social networks isvery easy mTEA is the favorite milk tea brand of young people, communicatingbetter through social networks and online newspapers mTEA's customers areyoung people who love milk tea from 18 to 30 Currently, in Vietnam, there are 4main social networks: Facebook, Tiktok, Youtube, Instagram We will inviteTiktokers or KOLs with 5000 to 10000 followers to review products and bringthem closer to customers

(6.3.1) mTEA’s social networking channel

Informational pages:

For customers to know about the product is a very important process In addition

to social networking sites, today's young people like to read blogs written aboutlife, psychology and health Therefore, we choose 3 newspaper pages: Zing,Baomoi, Vietnamtre We will contact you to post product introduction, usage,preservation and combine it with the newspaper page to make a postcard to attractyoung people by many ways of making milk tea at home with our products

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Quantity: 1500 boxes in Viet Nam

Promotion form 2: Promotion programs for distributors to promote theconsumption of products

Purpose: In this way, measures to encourage distributors to stimulate demand andincrease product consumption