creating a marketing plan for cozys new product self brewed milk tea in period 1 2022 12 2022

Our marketing plan for “Cozy’s new product - Cozy Self Brewed Milk tea” is honest and has not been published in any form before.. Mission The mission of Cozy tea and the ECO Products are

THE FINANCIAL

UNIVERSITY OF FINANCE & MARKETING

Class: CLC_20DMA09 Course code: 2111702006009

CREATING A MARKETING PLAN FOR

COZY’S NEW PRODUCT - SELF BREWED MILK TEA IN PERIOD 1/2022 – 12/2022

Majors: MARKETING

Ho Chi Minh city, 2021

THE FINANCIAL

UNIVERSITY OF FINANCE & MARKETING

Class: CLC_20DMA09 Course code: 2111702006009

CREATING A MARKETING PLAN FOR

COZY’S NEW PRODUCT - SELF BREWED MILK TEA IN PERIOD 1/2022 – 12/2022

Instructors: Master Đặng Huỳnh Phương

Student Implementation:

Ho Chi Minh city, 2021

GUARANTEE

We hereby declare that this is our own marketing plan under the guidance of Mr.Dang Huynh Phuong Our marketing plan for “Cozy’s new product - Cozy Self Brewed Milk tea” is honest and has not been published in any form before The data in the tables for analysis, comments and evaluation are personally collected from different sources with clearly stated origins If we detect any fraud, we will take full responsibility for the content of our essay

ACKNOWLEDGEMENT

First of all, we would like to express our deep gratitude to my teacher Mr.Dang Huynh Phuong, who wholeheartedly guided us throughout the course of studying Marketing Management He helped us orient the topic, layout the lesson, correct the content and present the lesson in a scientific and effective way

Although there were many difficulties in the process, we tried our best to complete the lesson to the best of our ability However, it is inevitable that there will be shortcomings, we’re looking forward to receiving comments and evaluations to be able to improve Finally, we would like to wish all the teachers in the Faculty of Marketing good health, always success in your career as well as in life and keep enthusiasm to continue to carry out your noble mission of conveying knowledge for future generations

Thank you sincerely!

EXECUTIVE SUMMARY

Cozy tea brand today is no longer too strange to Vietnamese consumers They are a business that always tries to bring consumers delicious and safe tea cups Today, with the extremely complicated Covid-19 epidemic, it has partly affected consumer behavior in consuming its products Today's consumers tend to enjoy homemade products for processing, partly because of the epidemic, partly because they care more about their health What if consumers could make themselves a cup of milk tea at home? Therefore, our group decided to implement the topic "Creating a Marketing Plan for Cozy’s new product – Self brewed milk tea in period 1/2022 – 12/2022” And the work will be discussed with the structure of the thesis consisting of 6 main chapters:

Chapter 1: Ecological Products Joint Stock company overview Chapter 2: SWOT & Macro - Environmental Analysis

Chapter 3: STP Strategy

Chapter 4: Marketing Mix Strategy Chapter 5: Action plan & Finance

2.2 CURRENT MILK TEA MARKET SITUATION 4

2.2.1 Size and growth rate of Vietnam's milk tea market 4

2.2.2 Trends of milk tea consumption 4

2.2.3 Competition in the Vietnamese milk tea market 5

4.3.3 Distributor incentive policy 15

4.3.4.Distribution channel management 15

4.4 MARKETING COMMUNICATION STRATEGY 16

LIST OF PICTURE

Picture 1.1: Logo of ECO Products Company 1

Picture 3.1: Positioning Cozy's products with other brands 10

Picture 4.1: Cozy milk tea Packaging 11

Picture 4.2: Cozy brand 12

Picture 4.3: Cozy’s website 13

Picture 4.4: Cozy’s distribution channel 14

LIST OF TABLE

Table 3.1: Divide Vietnamese market of Cozy 9 Table 4.1: Comparison price 14 Table 4.2: Cozy’s social networking channel 17

Picture 1.1: Logo of ECO Products Company

1.1 Vision

Constantly creating and improving to bring tea product lines with attractive, unique and different flavors to satisfy the needs of Vietnamese consumers to enjoy tea In addition, the company also has a policy to take the lead in creating modern consumer trends and styles, committing to bring clean, environmentally friendly and healthy tea products to consumers

1.2 Core values

The Cozy tea brand has oriented its business to combine the quintessence of Vietnam and modern technology with the adoption of world tea cultures to create truly valuable products and imprint not only in the domestic market but also ready to make a mark in the international market Besides, they are also committed to bringing clean, environmentally friendly and healthy tea products to consumers No matter who you are, at any age, prefer traditional or modern tea flavors, there are product lines to satisfy your tea drinking needs

1.3 Mission

The mission of Cozy tea and the ECO Products are to become a leading corporation in Vietnam in the field of tea, bringing the Vietnamese brand off in the integration period, to not only succeed in the country but also reaching out to the world market, affirming the "Pride of Vietnamese Tea"

1.4 Marketing Objectives

As a Vietnamese tea brand with nearly 20 years of age, Cozy is loved and known by many people Cozy is too famous for products such as tea bags, instant tea However, those

products are almost unable to meet the needs of the current Z generation youth, at the time of 2018 the epidemic had not broken out, milk tea was always the top favorite product of young people So, with home-brewed canned milk tea, we hope to reach about 60% - 80% of today's young people, especially students

1.5 Brand Objectives

Expanding cozy's brand awareness among Vietnam's Gen Z Developing into a tea brand for both students and college students Always at the forefront of consumer trends, providing a full range of traditional and modern tea products, suitable for all ages Besides, it strives to become the number 1 tea brand in Vietnam and is known in many countries around the world

1.6 Financial Objectives

In the first year, sales of about 9,088,500 tea boxes earned about 318 billion VND Marketing costs are about 5% - 10% per year

CHAPTER 2

SWOT & MACRO – ENVIRONMENT ANALYSIS 2.1 SWOT OF COMPANY

Strengths

• Have a long existence: With nearly 20 years of experience in the tea industry,

Ecological Products Joint Stock Company has developed Cozy becoming the leading tea brand in Vietnam

• Advanced and modern production lines: Imported processing and packaging lines

according to modern and leading technology in Italy, Germany and Japan, having the leading scale of machinery in Southeast Asia

• Recognized in the international market: Won a gold medal in the “International

Tea Competition” held in Canada Won the award "Typical Brand of Asia - Pacific 2018"

• Having a diverse distribution system: It has appeared in almost every region of

the country Besides Cozy also cooperates with big distributors such as Tiki, Highland Coffee, Lotte, Coop mart, Central Group Vietnam,

• Source of quality ingredients: Cozy has invested in many areas of clean tea

ingredients and cooperated with farmers in traditional tea areas The process of taking care of tea from planting to harvesting, preliminary processing is accompanied by enterprises, and guides farmers carefully to ensure that they get the best ingredients

Weakness

• Lack of innovation: Although Cozy has the advantage in product quality, they have

little improvement, lack of freshness and modernity

• Difficulty in managing distribution channels: The distribution is too wide,

making distribution channel management difficult

Opportunity

• Choosing the right audience: The generation that Cozy targets is the Millennial

generation (from 25-35), with convenient refreshments and drinks habits

• Green living trend: With the emerging movement in green living, healthy living,

consumers are tending to use products from nature

• Going beyond the international market: Having gained international recognition,

won many awards in tea competitions, Cozy has succeeded in building a good image with international friends

• “It's time for Vietnamese agricultural products to take off”: The success story

of Cozy Jasmine Tea in the US market is expected to open doors for Vietnamese agricultural products to confidently enter the world Experts also affirmed that this

is the right time for Vietnamese agricultural products to "take off", with appropriate steps

Threats

• The alternative: Cozy brand creates products that are packaged teas, this is a market

that can be said to have fierce competition

• Increasing competition: When Vietnamese agricultural products have been

recognized, new businesses will appear that can compete directly with Cozy

2.2 CURRENT MILK TEA MARKET SITUATION 2.2.1 Size and growth rate of Vietnam's milk tea market

Milk tea has appeared in Vietnam a long time ago, but it was not until 2013 that this market really developed and exploded with a series of brands both at domestic and international According to a beverage market study conducted in 2018, milk tea ranks second among the most popular beverages in the Vietnamese market, after ground ice drinks and above coffee The biggest drinkers of milk tea were women (53%) and young people aged 15 to 22 (35%) (Marketing AI, 08/2020) Despite being a potential market and tending to continue to grow However, with the emergence of Covid-19 at the end of 2019, the milk tea market was also affected quite badly According to some food and beverage (F&B) industry reports in 2019, the milk tea market in Vietnam will slow down in the near future and is expected to remain at only a natural growth rate of 5.7% per year That means the growth rate dropped sharply to only a quarter compared to the peak period two years ago, when the growth rate reached 200%

In 2019, 4 high-end milk tea brands: The Alley, Koi Thé, Gong Cha, Phuc Long all expanded their market share throughout the country But a year later due to the great impact of the COVID-19 epidemic, many milk tea brands had to relocate and have to return the rental premises Although a new normal has now been established, people are still afraid to eat in crowded places

ð This is a great opportunity for home-made milk tea products 2.2.2 Trends of milk tea consumption

According to a recent Nielsen study, consumers are being affected by four new patterns of behavior and socioeconomic patterns that are forming after the pandemic According to these models, in the future, consumers will tend to buy health products, spend on more necessary products and form a lifestyle at home While it has been damaged by Covid, there is no denying that it opens a new era

The majority of consumers will pay more attention to the issue of immune enhancement And when it comes to the basic ingredients in milk tea processing, black tea is the leading ingredient, followed by green tea, olong tea and white tea High in vitamins E, C, B2, minerals and rich in antioxidants (much higher than green tea and olong tea),

black tea helps reduce the risk of cardiovascular disease, reduce cholesterol levels, lose weight, is good for the digestive and immune systems Currently when buying milk tea at chains such as Phuc Long, Tocotoco, toocha, Although there is a discount code, to own a cup of milk tea at home, customers have to spend a fairly high price from 50,000 VND to 90,000 VND In the past people were willing to spend but now they tighten their spending and choose more carefully than they used to buy Therefore, products such as homemade milk tea or homemade milk tea at a cheaper and safer price are gradually becoming a new trend of the milk tea market in the coming time

2.2.3 Competition in the Vietnamese milk tea market

Currently, the country has about 1,500 milk tea shops with about 100 fiercely competitive brands It is a profitable market so it is not uncommon for not only famous brands to enter this market but also many individual and small stores The market can be divided into three main groups:

• First group: Vietnamese brands with franchise policy such as Bobapop, Toco

Toco

• The second group: milk tea brands from other countries or the average of about

50 stores nationwide such as DingTea, The Alley, Koi Thé, Gongcha, Phuc Long

• The third group: is a small and medium-sized group, take away

In Hanoi, with the monopoly of Ding Tea brand always leads with 195 stores nationwide, followed by brands such as Tocotoco or Gongcha In Ho Chi Minh City, the three biggest brands can be mentioned: The Coffee House, Phuc Long, Highlands Coffee has developed tea or milk tea and topping for drinks on the menu such as golden lotus tea, peach tea, macchiato black tea, Phuc Long milk tea…

Due to the epidemic situation, recently packaged milk tea companies, homemade milk tea is also thriving The first is NESTEA Milk Tea, a product of Nestlé Group, VTea Thai Milk Tea, Mr Brown Homemade Milk Tea, In addition, there are two products that are loved by many young people today: Hillway homemade pearl milk tea and The Alley homemade milk tea These two types are considered by consumers, especially young people to have a taste that is no different from the restaurant but the price is very cheap from 10,000 VND - 20,000 VND to own a glass of milk tea at home

Direct competitors

It's a very competitive market Although there are many products ahead, due to the taste, convenience and price is quite high, so it is less popular and known In Vietnam, two fast-growing products after the epidemic and are direct competitors of Cozy are probably Nestle, Lipton, Dilmah

Indirect competitors

As a profitable market, there will be many big people in the industry involved in this pastry To meet the desired needs of users, brands such as: The Coffee House, Phuc Long, Ding tea, Ready to launch a product that can be used at home Or even big corporations like Lipton, Dilmah,

2.3 SWOT OF PRODUCT Strengths

• Origin, ingredients are clearly printed: Currently, in the market there are many

milk tea shops selling milk tea that have unknown origin and ingredients, which makes consumers feel unsafe for their health Self brewed Milk Tea will be a good choice for consumers because they can know the origin and ingredients printed clearly on the box

• Environmentally friendly materials: Self brewed Milk Tea box is a very

eco-friendly paper box

• Bringing convenience: Convenient and always available whenever customers crave

milk tea as well as saving their time and money to make a cup of milk tea by themselves more than when ordering a cup of milk tea at shops

• Make in the way customers want: Self brewed Milk Tea can satisfy fastidious

consumers because they can adjust the sweetness according to their personal preferences

Weaknesses

• Milk tea boxes made of paper, when pouring hot water into the cup, it can heat the

consumer's hands

• Not diverse in taste because there is only one traditional milk tea flavor

• There are no specific instructions for use, so consumers may not know how to

make or make it in the wrong way

Opportunities

• Origin, ingredients are clearly printed: Because of the Covid-19 epidemic,

consumers tend to establish a ‘Home Lifestyle’ which means they form the habit of "doing everything by themselves" and have a greater need to experience the brand at home They want to find products that are more suitable for their lifestyle at home Instead of ordering a cup of milk tea from the shop to drink, consumers want to experience making a cup of milk tea by themselves

• The milk tea market is extremely potential: Milk tea has long been a very familiar

drink for not only young Vietnamese but also middle-aged people And gradually enjoying milk tea is likened to a new culture because it is not only a drink for refreshment but also an enjoyment to satisfy people's passion for cups of milk tea

• Consumers now are very concerned about environmental issues: They tend to

use products with environmentally friendly packages instead of products packed with plastic

• Consumers are increasingly concerned about their health: They are willing to

pay more for a cup of quality milk tea instead of buying one with unknown origin and low quality

Threats

• High competitive rate

• Retailers such as supermarkets, convenience stores, department stores have many strict requirements when importing products for sale

• There is no specific guidance so the customer can do it the wrong way SO - ST - WO - WT Strategies

a) SO Strategies

S1 - O4: Printing clearly and accurately the origin and ingredients of milk tea on the

package, committing that the ingredients are not harmful to health, bringing trust to consumers

S2 - O3: Giving environmental protection messages through the production of

eco-friendly paper milk tea cups to attract consumers who care about environmental issues (Đưa ra thông điệp bảo vệ môi trường thông qua việc sản xuất ly trà sữa bằng giấy thân thiện với môi trường nhằm thu hút người tiêu dùng quan tâm đến vấn đề môi trường)

S3 - O2: Expanding distribution channels so that products can easily reach

consumers, serving their needs and preferences for drinking milk tea

b) ST Strategies

S4 - T3: Running advertisements about the taste of Self brewed Milk Tea and its

flexibility in adjusting the sweetness to show customers that the product has the same taste as a cup of milk tea at the shop and it can even change the taste according to personal preference

c) WO Strategies

W1 - O3: Advertising about the material of Self brewed Milk Tea is a very

environmentally friendly paper box that will make consumers accept the weakness of heating their hands when adding boiling water to the product

W3 - O1: Promote communication strategies, propagandize home lifestyle for

consumers

d) WT Strategies

W2 - T1: Focus on developing and perfecting the quality and taste of milk tea to

bring a good impression in the hearts of consumers

CHAPTER 3 STP STRATEGY 3.1 SEGMENTATION

The market is always diverse with different customers and one business cannot meet all the needs of all customers Businesses need to understand the needs of their customers Market research helps businesses divide the market into many small segments and then choose a segment to focus on Cozy divides the market into the following 3 main segments

Geographic

Region: Concentrated in big cities, near schools

Region: Concentrated in big cities, high-rise buildings, concentrated in a large number of offices , apartments,

Region: Concentrated in big cities, high-rise

buildings, concentrated in a large number of

apartments, parks,

Demographic

Gender: Male, Female

Gender: Male, Female Gender: Male, Female

Age: 15-23 Age: 23-30 Age: >30 Occupation:

Students, colleagues and postgraduates,

Occupation: Officers, Workers and Employees

Occupation: Officers, Workers and Employees

Family: Single Family: Newly married or having small children

Family: Stable, raising children.to independence Income: Have low

income ( depend on parents )

Income: Have stable income

Income: Have stable income

Education:High school, University

Education:

Bachelor degree, Master

Education: Bachelor degree, Master

Psychographic

Lifestyle: Dynamic, modern, easy to change, grasping fast trends

Lifestyle: Busy, attentive, catching up with trends

Lifestyle: Calm, care about health, catching up with

trends slower

Personality: Like to explore and

experience new things, like to hang out with friends

Personality: Experiencing new things, preferring to spend time alone rather than hanging out with friends

Personality: Quiet, stable, difficult to accept

innovation, less like to experience

Motivation: care about taste

Motivation: care about taste, product quality and health

Motivation: care about taste, product quality and health

Behavioristic

Interests looking for: Attractive taste, reasonable price, eye-catching design.

Search interests: Attractive taste, product quality, health benefits , less interested in product design

Searching benefits: Attractive flavor, Product quality and health benefits, less interest in product design

Loyalty: Low, easy to change to catch up with new trends.

Loyalty level: Medium high.

Loyalty level: High, once they put their trust in them, they rarely change.

Price sensitive: High Price sensitive: MediumPrice sensitive: Low

Reference group: Friends, influencers like youtuber, idol, KOL, tiktoker, others,…, media

Reference group: Family, colleagues, friends, social networks

Reference group: Family, friends, colleagues

Table 3.1: Divide Vietnamese market of Cozy

3.2 TARGETING

The main target market that Cozy targets for this product is segment 2 The audience in this segment is from 23-30 years old, living and working in urban areas Segment 2 is a potential market for Cozy because the characteristics of consumers in this segment are consistent with the characteristics of Self Brewed Milk Tea Cozy new product :

• Having a stable source of income, so be able to pay for themselves

• Care about product quality and health issues

• Tends to use products that are readily available and convenient due to the nature of the work

3.3 POSITIONING

From the brand positioning of "Vietnam's No.1 Tea" or "Proud of Vietnamese tea" and an ecological product, Cozy commits to customers: Cozy tea is clean tea in all production processes, bringing health and wellness, healthy for consumers Affirming the high quality Vietnamese tea brand with perfect customer care service, meeting the diverse requirements of customers Cozy is always a pioneer in creating new products, creating a new consumption style to add value to the tea drinking culture of Vietnamese people in a dynamic, modern and integrated life while always ensuring the elements of ecology, food hygiene and safety for the health of consumers

With the familiar slogan "From the Tea Garden", Cozy tea brand has positioned its product as a "homemade" product born from the quintessence of the S-shaped strip of land A "home made" product Of course, it will bring much better safety than industrially produced products Cozy products are selected from carefully selected ingredients, under strict supervision in the production process, so product safety has been positioned by Cozy In addition, what happens when you have a craving for milk tea and you have a cup of homemade milk tea? The first thing you feel is convenience Indeed, the convenience that a cup of homemade milk tea brings is enormous This is a very potential market, but there are few fast moving consumer goods (FMCG) companies that have officially entered this market Therefore, when positioning for convenience, Cozy's milk tea will compete with F&B brands that have entered the market

Picture 3.1: Positioning Cozy's products with other brands

4.1.2 Value propositions

Cozy is committed to providing consumers with Self Brewed milk tea products that taste as good as enjoying a cup of milk tea at shops but the sweetness can be adjusted according to consumers' preferences and is safe for consumers' health In addition, for busy customers, convenience is what Cozy wants to bring to them so that they can both satisfy their crave for drinking milk tea and save their time

4.1.3 Packaging

Cozy Self Brewed Milk tea box is a very eco-friendly paper box The size is equal to the size L milk tea cup at shops with a capacity of 700ml, on the box is printed the brand logo of Cozy milk tea brand The lid is designed with plastic material, the straw consists of two segments: a large and short segment, a smaller and longer segment, inserting the small tube into the large tube will form a straw of the right size This package design has a prominent feature that it is very difficult to pour and easier to store drinks

Picture 4.1: Cozy milk tea Packaging

4.1.4 Branding

Picture 4.2: Cozy brand

With more than 20 years of experience in the tea industry, Cozy has become the leading Vietnamese tea brand in Vietnam Cozy is written in a modern font with green tones This color represents the green color of the tea fields - the source of fresh ingredients and also the pride of the Cozy brand

4.1.5 Labeling

The main colors of the labels are green and white, which bring a feeling of freshness to consumers The hexagonal label will be affixed to the front of the paper cup horizontally, with the brand name and product name printed on it The back of the paper cup will be affixed with a label of the same size as the front, which contains information such as ingredients, expiry date, instructions for use and storage, product capacity, name and address manufacturer or distribution company, including street address, a general overview of the nutritional value of the product will be clearly printed and detailed

4.1.6 Product support services

The company has created an official website for the Cozy brand The information about the product will be posted and updated regularly so that customers can look for products information and exchange it with Cozy’s staff directly before buying the product In addition, the website and fanpage will provide a toll-free phone number and email for customers to contribute ideas and receive advice before, during and after purchase