Bài tiểu luận topic phuc long’s marketing strategy

HO CHI MINH OPEN UNIVERSITYHO CHI MINH OPEN UNIVERSITY SCHOOL OF ADVANCED STUDY  BÀI TIỂU LUẬN TOPIC: PHUC LONG’S MARKETING STRATEGY Lớp: DH21BA05C... Marketing intermediaries: => Phu

HO CHI MINH OPEN UNIVERSITY

HO CHI MINH OPEN UNIVERSITY

SCHOOL OF ADVANCED STUDY



BÀI TIỂU LUẬN TOPIC: PHUC LONG’S MARKETING STRATEGY

Lớp: DH21BA05C

HO CHI MINH OPEN UNIVERSITY

TABLE OF CONTENTS

A.MARKETING STRATEGY 3

I MARKETING ENVIRONMENT 3

II MARKETING RESEARCH 6

C.STP 9

I Segmentation 9

II Targeting 9

III Positioning 9

IV.The communication Process 9

V Customer’s targeting 10

V.Three levels of product 11

D.Implementation plan 12

I.Analyze and choose the right launch time: 12

II.Determine the form of the product launch: 12

III.Choose ways to promote new products: 12

IV.Budget 13

E.In Conclusion 13

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A.MARKETING STRATEGY

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

=> Located in Bao Loc (Lam Dong)

=> Established since 1968

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

=> 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 ten 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

HO CHI MINH OPEN UNIVERSITY Long become the leader in revenue, outperforming other competitors other 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

e Customer markets:

=> Phuc Long's marketing department pursues the "think customer" planning strategy in order to deliver consumer value and happiness

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=> 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.

Macro 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

=> 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

HO CHI MINH OPEN UNIVERSITY 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 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

II MARKETING RESEARCH

1 Description of the results of the survey sample

-Gender: Of the total of 305 respondents, 62.7% are female- 191 people and 114

are male, accounting for 37.3%

-Age: Out of 305 people, there are 80 people under 18 years old (26,2%), 225

people from 18 years old to under 50 years old (73,8%)

- Occupation: 40% are students; there are 122 people and 60% are office workers (183 people)

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: 40% of people find it delicious, 20% find it extremely delicious After the "cherry longan tea" was introduced to the market,

it caused a new trend However, coffee in Phuc Long is still the "top of mind" brand and is chosen by many people

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b Customer service factor:

The service staff in Phuc Long is extremely good and dedicated Up to 47.9% of customers appreciate the service quality of the staff, 36,1% of customer feel very good and 8.2% feel good Because the staff have all been through the training process to become more professional Know how to handle situations appropriately

- Besides, there are still 5.2% (Worst) and 2.6% (bad) - low rating customers In places with small branches, customers often complain that employees have bad attitudes, often joking and talking during work

c View:

Through the survey, we can see that the majority of customers are not satisfied with Phuc Long's space (50%) However, 40% still feel that it is not beautiful but it is acceptable

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d Why do customers choose Phuc Long?

- The majority of customers (50%) said they liked the menu as well as the taste of Phuc Long's drinks It is always updated, constantly renewed and not boring

- The remaining few like: (20%) choose to come to Phuc Long to gather with friends, study and do homework The location is easy to find and extremely convenient for students (10%) people like the service of the restaurant, and become close because of the preferential services for important customers 20% of end customers think that Phuc Long has delicious drinks with extremely affordable prices for many people and classes

B 4PS

1 Product: Phuc Long is one of the few F&B chains that owns raw materials right in Thai Nguyen Phuc Long products are very diverse and rich with 63 different tea flavors, not to mention cakes and seasonal drinks

2 Price: The price ranges from 35-75K, suitable for the customers they target (young people working, students, )

3 Place: Opening time: 7:00-23:00 to help customers easily enter suitable time frames Not only in the Vietnam market, but Phuc Long is also present in California, Phuc Long Kiosk in combination with Vinmart+

4 Promotion: Discount and freeship on delivery services Discounts and free Merchandise codes have bold specificity of Phuc Long also make a strong impression whenever Phuc Long opens

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- Advertising (mostly digital marketing):

+ Facebook marketing: Phuc Long's fanpage has 423,174 followers and posts appealing and fascinating promotions, articles on new product launches, new projects, or wishes great event placed in prime time slots suited for teenagers + Website: Phuc Long's website is wonderfully developed and highly appealing Furthermore, using platforms such as Google AdWords makes it easier for firms to reach out to customers

+ Instagram: With over 8,000 followers, and similar to the Phuc Long Coffee & Tea Facebook Fanpage, interesting articles on promotions and many posts are constantly updated

- PR activities

C.STP

I Segmentation

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

a DEMOGRAPHIC

Age range: 8 to 50 years old

Male and female are the two genders

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

b PSYCHOLOGY

In the perceptions of customers, Phuc Long became identified with bold tea and coffee items and drinks throughout time Phuc Long has always been a trailblazer in the tea and coffee sector, with numerous new concepts

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

Long Nhan Cherry Tea combines a light sour cherry flavor with a strong tea flavor and a sweet longan flavor to create a high-quality beverage for people of all ages

When consumers come to Phuc Long to taste exquisite tea and coffee items endowed with Vietnamese character, they will have a wonderful time

Phuc Long earns a reputation among customers as a delectable tea with a distinct Vietnamese flavor "It's pricey, but it's worth it."

IV.The communication Process

HO CHI MINH OPEN UNIVERSITY Sender: Phuc Long

Encoding: Phuc Long’s advertisement includes posters and videos about the new drink that will convey the intended message

Message: Mix life in tea

Media: Social network (For example: FB, IG, YT), posters in coffee shops, advertisements

on E-commerce exchange like shoppee food, momo, Grab food, lazada,

Decoding: Consumers watch the PL’advertisement and they know that PL has new drink

“Cherry Long nhan tea”

Receiver: The customer watches the Phuc Long’s advertisement

Response: Consumers like new drink, is more likely to drink at PL next time, or do nothing Feedback: PL research shows that consumers are either stuck by and remember the advertisement or don’t care about the advertisement or its products

Noise: The consumer is distracted while watching the commercial and misses its key points

V Customer’s targeting

1 Who are they?

Gender: Female and Male

Age: 16-50

2 Where do they live?

Hanoi, Ho Chi Minh City,

3 When do they buy drinks?

Time: In the morning, lunch, afternoon and night

Place: Phuc Long's store, Winmart, Winmart+, shopping mall,

4 Recognizable characteristics:

Gather friend to study group

office workers who need place to do project

For persons who want to enjoy diverse drinks

Product Life-Cycle strategies

HO CHI MINH OPEN UNIVERSITY Product development: From ideation to research, product development, lab tests to designing the final product In this stage, you need to evaluate everything related to your product, its consumers, market scope, competitors, etc

Introduction:This is the stage when your product is launched for the first time on the market

In this stage, marketers need to focus on creating maximum awareness about the new drink, introduce it to potential buyers, and convince them to at least consider the product while buying

Growth:You want to acquire their customers and become a more “preferred” brand The marketing campaign at this stage needs to focus on maximizing market share

Maturity: In this stage, your new customers are the ones who have switched from your competitors Marketing efforts in this stage need to be focused on maximizing profit while defending the market share

Decline:In this stage, the sales and profits start to shrink In this stage there is not much scope for marketing, you should focus on reducing the spending and focus on milking the brand that you have created

V.Three levels of product

Core customer value: Committed to offering the quality product 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

Design: Implement the movement to protect the environment with unique designs such as: paper bags, paper cups and straws made of paper

Features (Những đặc điểm khác lôi cuốn người mua):

new flavors - other stores don’t own

Environmentally friendly packaging design

No matter how you carry a glass of water, it won't spill

Customers are free to decorate the cups as they like

Customers can measure the amount of sugar or ice themselves according to their needs

Augmented product

Delivery and credit: In the 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 momo, shopee, lazada, When clients wish to pay in Phuc Long, they have two options: cash