Final report service marketing

Earlier, Phuc Long stores were only a place to sell and introduce products, but then in 2012, Phuc Long changed the dynamics when it entirely transformed its business approach and starte

MINISTRY OF EDUCATION AND ĐAI HỌC - TRAININNG HOA SEN UNIVERSITY

SCIENCE OF ECONOMICS &

FINAL REPORT SERVICE MARKETING

Course title: Service Marketing Instructor ’ Name: Tran Thi Thu Hien Semester: 21.1A (2021 - 2022)

Members of team:

Plagiarism Declaration

“We affirm that this assignment is our own work We acknowledge that copying someone else’s assignment, or part of it, is wrong, and that submitting identical work to others constitutes a form of plagiarism We are totally aware that any acts of academic dishonesty will result in a grade of zero for the task at hand and/or immediate failure of the course, depending on the seriousness of the fraud.”

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Date: 18/01/2021

SERVICE MARKETING

The COVID-19 pandemic in Vietnam has reached its fourth wave, due in part to the tremendous efforts of the entire system The situation is quietly becoming more stable and under control The food and beverage (F&B) industry is the most strongly impacted

by the outbreak, according to the Government's social distancing decree Fortunately, as the epidemic is gradually controlled, this is one of the industries that is recovering the fastest Because of consumers' limited psychology, when the distance is too far, as well

as the economic recovery

Compared to the previous year, sales at the Phuc Long coffee & tea have dropped sharply This necessitates that the company find a way to adapt well to the new situation when it comes out of lockdown

As a result, the leadership of our team compiled the report below, which summarizes possible ideas for creating a safe service environment that satisfies the customer while also renewing the service business when the Covid-19 epidemic is less risky

1 Business Overview

PHUC LONG Phuc Long company was founded in 1957 in Bao Loc, Lam Dong, which is regarded

as a famous tea area in Vietnam With traditional experience passed down from production to business, the company has grown steadily The first factory in Ho Chi Minh City was developed and put into operation in the mid-1970s Phuc Long's products are widely available in most markets and supermarkets nationwide With a team of up to hundreds of experienced professionals who share the same enthusiasm for tea and coffee, human resources are also growing Recently, Phuc Long is investing in building more factories with standard equipment to meet the needs of domestic and international manufacturing

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Figure 1:The graph below summarizes Phuc Long's operational milestones

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Earlier, Phuc Long stores were only a place to sell and introduce products, but then

in 2012, Phuc Long changed the dynamics when it entirely transformed its business approach and started marketing the brand with a series of chain stores "Phuc Long Coffee & Tea House" It is this development that has lead to Phuc Long's success, contributing to the creation of a trend for young people and making other businesses

in this market fearful Despite coming late and competing with not just foreign companies like as Starbucks and The Coffee Bean & Tea Leaf, but also national brands such as Trung Nguyen Legend, Phuc Long has created and maintained their position and appearance

Figure 2: Opening new stores

a Segmentation — Targeting — Posotioning:

When it comes to targeting high-income office workers, overseas clients, and customers who love the flavor of foreign coffee, Starbucks and The Coffee Bean & Tea Leaf are high-end businesses As well as Trung Nguyen is a mid-range brand that clearly specifies its target market as customers who enjoy traditional coffee flavors For Phuc Long, we divided our market based on demographics and psychology, focusing on the middle class with a stable income, office workers who love tea and coffee

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Figure 3: Customer segment of Phuc Long

This is the brilliance of Phuc Long when it comes to exploiting a market segment with a huge number of consumers; it is that kind of exact segment selection that Phuc Long has a broad target market of customers ranging from middle to high income eamers, tourists, and students Furthermore, one rationale for selecting this segment stems from Phuc Long's

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mission of bringing quality tea and coffee products created from 100% Vietnamese ingredients to as many Vietnamese people as possible Customers at Phuc Long always have

a wonderful time eating delicious Vietnamese-style foods Customers can also smell the strong scent of Phuc Long's signature tea as an extremely impressive highlight when visiting any branch It can be concluded that Phuc Long cultivates a reputation among customers as

a delicious tea with a distinct Vietnamese flavor Finally, Phuc Long hopes that in the future, Vietnamese coffee products will be able to compete not only in the Asian market, but also

in the global market, and, in the near future, the domestic market and the US market

b Marketing Mix 7P:

e Product:

With any brand, location, service, style can all be differentiating features to attract customers But if you want them to continue to stick around and come back many times, the core of success still remains in the product To develop and be successful like today, the first thing to mention is Phuc Long's finding a unique USP that no other brand has It is Phuc Long's taste that must be one, unique and different, that is Phuc Long's products have a strong tea taste, strongly hitting the taste of customers, such as Phuc Long's milk tea, which 1s full of milk but still has a strong tea flavor

Phuc Long's products are diversified into 3 main groups:

+ Core services/products:

Initially, Phuc Long's main products were tea and coffee For packaged products, Phuc Long always brings the best quality to customers with eye-catching packaging, prominent brand logo and characteristic blue color In addition, we are constantly changing to suit the needs

of customers holidays or Tet occasion All products are conveniently displayed in all stores making it easy for customers to find and select what they want

Figure 4: Phuc Long's packaged tea and coffee products

+ Additional services/products:

However, in their brand development roadmap, Phuc Long realizes that they can also attract

a large number of customers who not only love tea but also want to enjoy the space at the shop Therefore, in addition to the popular packaged coffee and tea products, the brand also develops many other beverage products such as peach tea, milk tea, litchi tea and so on The

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drinks and cakes sold at the store are diverse with stable quality In addition, customers can

Figure 5: Delicious drinks in Phuc Long

+ Support products and services:

If customers do not use cash, Phuc Long offers payment services such as card payment, momo, etc Furthermore, Phuc Long publicizes product information, so customers can refer

to products and prices on Phuc Long's fanpage When it is not possible to come directly to the shop to enjoy, Phuc Long has orders through Phuc Long's official app Finally, whenever customers have problems that require assistance, Phuc Long always has a professional customer care and consulting team on hand

e Price

Phuc Long's selling price policy is also reasonably built based on the available strengths of tea and coffee Because the company's target market is diverse, the company's price is in the middle, making it affordable to the vast majority of people

The beverages at "Phuc Long Coffee & Tea House" cost between 30,000 and 75,000 VND Equal to 50-70 percent of Trung Nguyen's selling price or 30-50 percent of Starbucks, The Coffee Bean & Tea Leaf's selling price This is also a reason to help Phuc Long in bringing its brand to the public's attention and attracting a large number of customers ina short period

of time

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Figure 6: Phuc Long's Menu

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e Place

Phuc Long uses a "selective distribution strategy,” which means that the company's products are available not only at the "Phuc Long Tea & Coffee House" chain of stores, but also at

supermarkets, trade centers, and convenience stores, etc

Besides that, in May 2021, Phuc Long sold 20% of its shares to Masan Company and collaborated to build a Phuc Long kiosk model in the VinMart+ mini supermarket system, with the goal of further expanding the market and distribution channels This is a strategy that can be said to bring many advantages to Phuc Long in the future

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Figure 7: Phuc Long cooperates with Masan

e Promotion

For Promotion, Phuc Long uses both “Push strategy” and “Pull strategy” The most prominent in “Pull strategy” - the strategy fully utilized by Phuc Long is Phuc Long's self promotion: the differentiation, spreading branches widely, at convenient locations, bordering many frontsand attracting a large number of passers-by makes it simple to promote and bring your brand to the public's attention In Ho Chi Minh City, it is not difficult to recognize the coverage of the chain of stores “Phuc Long Coffee & Tea House” with 47 branches In particular, many of them are located in prime locations, with many facades with

a large number of passersby For example, in the famous buildings Bitexco, Landmark 81,

Vincom or on major roads such as Le Loi, Cong Hoa, Ngo Duc Ke, etc In addition, Phuc

Long also promotes image communication through Social networking sites such as Facebook, Intagram, Youtube,etc This strategy has shown positive results, with Phuc Long's Fanpage on Facebook reaching over 400,000 followers

On the orther hand, “Push strategy” : Phuc Long does not use many distribution channels but sells its packaged products directly in the store so the “Push Strategy” is not clearly expressed, but the distribution of its products to supermarkets, shopping malls or convenience stores has helped Phuc Long use this strategy selectively but effectively

e People

The human element in marketing is an indispensable and crucial component of business strategy Employees are the company's face, sales staff and customer service representatives are the first people customers contact According to Phuc Long, the first person the customer meets is the salesperson, and the number of customers meeting and chatting with the CEO

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can be counted on the fingers As a result, when recruiting new employees, Phuc Long always prioritizes employee quality Not only quality and price, but also well-trained sales staff, are important factors in customer retention

Figure 8: Employees and customers

+ Customer:

Phuc Long's target customers are students and commuters who travel They use coffee not only to drink, they enjoy, socialize, network, build networks, work

Customers are an indispensable factor in helping to spread the brand of the business Customer satisfaction is the most important thing that the goal of marketing is If customers love the service, working style of Phuc Long, they will come back and introduce to other

customers

+ Employee:

According to Phuc Long: "Employees are at the core of sustainability" — Phuc Long believes that building happiness, focusing on career paths for employees, job satisfaction and a positive environment will be the long-term foundation for the sustainable development of Phuc Long Phuc Long aspires to "be a happy common home for anyone who comes to" and help each employee develop a career through professional working environment, team cohesion, regular training, professional skills improvement

e Process

Serve Prepare drinks

*Complete and display

Welcome Guest

customer

*Received requests

° Payment

Figure 9: Customer service process at the shop

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In each different store, there will be different sizes, so the service process as well as the number of employees in each shift are also different Above is the general process in Phuc

Long's stores that customers experience

About the online ordering process: Customers order at Phuc Long homepage or directly on the website or call Delivery: 1800 6779 to receive orders from staff

When ordering through the website, customers will follow the following process:

TH: Up to 30 minutes

Pui the Choose your you will have Pay after

nfo matte favorite your favorite receiving drinks information drink right away

When customers call, Phuc Long's call center staff will serve customers:

Staff confirm Up to 30 Staff will the Staff confirm minutes Pav aft pick up the customer's the uest will teceivine phone to take order and information ave your drink 8 orders _ request again favorite drink maxs,

information right away

e Physical Evidence:

+ Exterior design:

There is a feature in most Phuc Long cafes that there is always a prime location With shops on the street, there will usually be two fagades or an extremely large area or many floors, with shops in the shopping center also have a large area and a very beautiful location in the center Along with taking advantage of optimizing the area outside and inside, Phuc Long cafes have given customers a great experience in terms

of space With the café branches with a large area, airy space design, Phuc Long

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Figure 10: Phuc Long's appearance

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+ Interior design:

Phuc Long's signature design is also a point to attract customers to the restaurant The space is designed with simple details but not boring, monotonous The style is simple

so Phuc Long focuses mainly on the design of tables and chairs Phuc Long's table and chair system is quite diverse, rich, mainly tables and chairs with wooden chairs, sofas and wooden tables, black stone tables Sofas and many wooden single chairs are covered with simili leather or fabric on the back and side cushions The tables of Phuc Long cafes are also full of designs, many tables are decorated with ornamental plant pots for more highlights The materials and neutral colors give the café an interior space that is not too fussy but still delicate and luxurious

Figure 11: Phuc Long's inner space

Phuc Long space is designed with open space, with iron partitions with black color not too closed to create an airy space, more spacious for the restaurant The partitions are designed

in many different styles but all follow the style mainly modern style The walls are also selected dark plain tiles to add the characteristic design of the restaurant Especially, the floor tiles of this brand chain often use multi-textured cotton tiles, which is the highlight for the design space of the restaurant is not boring monotonous

A more prominent feature in phuc Long café & tea design compared to other competing coffee brands such as Highlands, The Coffee House, It is in the design itself that brings a lot of convenience towards customers Phuc Long tables and chairs always have different styles and sizes suitable for each group of customers Long tables, large round tables are suitable for groups of customers of 10 or more people There are small single tables in areas with quieter spaces suitable for customers who come here to work And although the number

of tables and chairs in the interior space is quite large, each table still has its own distance from each other to ensure the necessary privacy for customers

It is worth noting that Phuc Long's furniture models almost all have charging sockets attached to the table or the arm of the chair This shows that Phuc Long is quite interested in the experience of its customers Customers coming here can work by computer or phone for

a long time Customers are likely to remember this point and choose Phuc Long over neighboring cafés as a result

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