BỘ GIÁO DỤC VÀ ĐÀO TẠO

TRƯỜNG ĐẠI HỌC KINH TẾ TÀI CHÍNH TP HCM

KHOA KINH TẾ

SALES MANAGEMENT

FINAL REPORT

Lecturer: Munish Shalini

GROUP 3 :

1. Ngô Vũ Quỳnh Mai - 185011697

2. Lê Nguyễn Hoàng Bảo – 185012511
3. Lê Thanh Trúc – 195012866
4. Đặng Trần Hiếu Ngân - 195012288
5. Lê Ngọc Vy - 185012466
6. Hoàng Phúc Tấn - 185011489
 MỤC LỤC

INTRODUCING PHUC LONG..................................................................................................................................1

MEMORABLE MILESTONES............................................................................................................................... 1
MARKETING PLAN...................................................................................................................................................6
1.MARKET ANALYSIS................................................................................................................................ 6
1.1 Market Size........................................................................................................................................... 6
1.2 Market Growth..................................................................................................................................... 9
1.3 Market Demand.................................................................................................................................. 12
1.4 Market Share...................................................................................................................................... 12
1.5 Market Trend...................................................................................................................................... 14
2. CUSTOMER ANALYSIS........................................................................................................................ 15
2.1 Target Market..................................................................................................................................... 15
2.2 Target Customer................................................................................................................................. 15
3. PESTEL................................................................................................................................................... 16
3.1 Politcal............................................................................................................................................... 16
3.2 Economic........................................................................................................................................... 17
3.3 Social................................................................................................................................................. 17
3.4 Technology......................................................................................................................................... 18
3.5 Enviroment......................................................................................................................................... 18
3.6 Legal.................................................................................................................................................. 19
4. COMPETITOR FRAMEWORK............................................................................................................. 19
4.1 Highlands Coffee................................................................................................................................ 19
4.2 Starbucks Viet Nam............................................................................................................................ 20
4.3 The Coffee house................................................................................................................................ 21
5. COMPETITIVE PRESSURE.................................................................................................................. 21
5.1 Customer............................................................................................................................................ 21
5.2 Internal Industry................................................................................................................................ 21
5.3 Potential rivals.................................................................................................................................... 22
5.4 Supplier.............................................................................................................................................. 22
6. SWOT ANALYSIS.................................................................................................................................. 22
6.1 Strength.............................................................................................................................................. 22
6.2 Weakness............................................................................................................................................ 23
6.3 Opportunity........................................................................................................................................ 23
6.4 Threat................................................................................................................................................. 23
7. MARKETING STRATEGIES................................................................................................................. 24
7.1 Customer Analysis.............................................................................................................................. 24
7.2 Positioning........................................................................................................................................ 25
8. MARKETING MIX STRATEGIS........................................................................................................... 28
9. FINANCAL SUMMARY......................................................................................................................... 30

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INTRODUCING PHUC LONG Ngô Vũ Quỳnh Mai

Memorable milestones
 In 1968, in the famous tea plateau Bao Loc (Lam Dong), Phuc Long was born with the
expectation of bringing quality tea and coffee products.

 In the 80s, Phuc Long opened the first three stores in Ho Chi Minh City on Le Van Sy,
Tran Hung Dao and Mac Thi Buoi streets to introduce pure Vietnamese tea and coffee
products to domestic customers. as well as international. In particular, Phuc Long Mac
Thi Buoi store located in the center of District 1 is the first store to serve Phuc Long's
signature brewed tea drinks and high-class brewed coffee which are usually only served
at stores. luxury restaurant at that period.

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

In 2007, Phuc Long owned a tea plantation in Thai Nguyen. Because I personally find
Thai Nguyen Tea competitive in terms of taste, appearance and characteristic water
quality, but like teas in other localities, the control of residue ingredients according to
hygiene standards Food safety of the world, Thai Nguyen tea still suffers the same fate of
"not meeting standards".Having clearly defined the goal of maintaining and protecting
the inherent natural quality of Thai Nguyen tea, I quickly decided to invest in building a
tea processing factory in Thai Nguyen. Phuc Long hopes that by setting up the factory
right in the raw material area, we can maintain the "quality" of Thai tea completely while
minimizing the conditions for farming, harvesting and processing. tea in order to best
ensure overall quality management issues. At the same time, in 2007, Phuc Long invested
in a tea and coffee processing plant in Binh Duong, equipped with many modern
equipment and machines, with HACCP certification - a process that ensures food safety
and hygiene standards. products, with the goal of ensuring the supply of quality products,
serving the domestic market and meeting export demand. Also from here, Phuc Long Tea

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has fully met the standards to be present in fastidious markets such as the US, Japan,
Indonesia, the Philippines...

 In 2012, Phuc Long Coffee & Tea store at Crescent Mall District 7 was launched,
marking the official expansion of Phuc Long into the food & beverage industry (Food &
Beverage) with Phuc Long store operating under the automatic model. served in a
modern space. Together with our team of effective associates, we made an event marking
a turning point in the development history of Phuc Long.

 In 2015, Phuc Long built 10 stores in Ho Chi Minh City. Step by step brand positioning
associated with strong tea and coffee products and drinks in the minds of customers.

 In 2018, built the second factory in Binh Duong, owning two tea hills Thai Nguyen and
Bao Loc. At the same time, more than 40 Phuc Long stores were built in: Ho Chi Minh
City, Binh Duong, Nha Trang, Da Nang, and Hanoi. 2018 is also the year I decided to
expand the brand to the North, after researching and surveying the market with Phuc
Long's first store located in Hanoi.

 In 2019, developing 70 stores and continuing to develop and expand the store system
stretching from South to North. Besides, increasing the coverage of tea and coffee
products to all systems: supermarkets, convenience stores, e-commerce channels...

In 2020, orientation to continue to increase store system coverage and product
development

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 After more than 50 years of extracting the quintessence from green tea buds and
premium coffee beans and the desire to bring customers the most valuable experiences
when enjoying, Phuc Long is continuously a pioneer brand with many ideas. Innovative
ideas at the forefront of the tea and coffee industry.
Operating with the motto "Quality comes from passion", together, we have been writing
the story of a Vietnamese brand rich in tradition, connecting the quintessence of decades
of experience and constantly refining filter, renew itself in the transition of time to
become a brand that always sticks with many generations of customers.

VISION

With the desire to constantly expand the market - sustainable

development, Phuc Long strives to become a company
specializing in the production and export of high-value tea and
coffee in Vietnam.

Phuc Long wishes to create a Vietnamese brand with class and

quality reflected in each product, thereby gradually asserting its position in the
international market.

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MISSION

Become a pioneer of the times with innovative ideas at the forefront of the tea and coffee
industry.

Let's bring brands to shine, motivate each other, turn ideas into reality with the spirit of
cohesion, interaction, listening and respect.

To create joy and affection for customers, each of us must constantly shine. Don't let your
ability fall asleep, constantly challenge difficulties, always renew yourself.

Create high value by understanding, empathy and real value propositions, satisfying
customer satisfaction.

CORE VALUES

For customers: Committed to providing quality products and best

services.

For employees: Building a professional, dynamic, creative and humane

working environment, creating favorable conditions for high income and
fair development opportunities.

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For society: Harmonizing business interests with social interests, actively contributing to
community-oriented activities, demonstrating a sense of responsibility towards society.

AREAS OF OPERATION

Manufacture, export and trade finished products of coffee and tea (packaged).

Offer food and beverage services at the shops:

- A comprehensive variety of food and drinks.

- A fine selection of cakes and fritters.

- Delivery service.

official homepage: (https://www.phuclong.com.vn/ )

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 MARKETING PLAN
1.MARKET ANALYSIS Lê Nguyễn Hoàng Bảo
1.1 Market Size

Product Different types Version Price (VNĐ) Unit of mass

Tea
12.000 2g x 8 packs
Lotus tea
35.000 2g x 25 packs
Rose tea 34.000 2g x 25 packs
12.000 2g x 8 packs
Jasmine tea
35.000 2g x 25 packs
Boxed tea Tea bag
Lychee tea 37.000 2g x 25 packs
Black tea 35.000 2g x 25 packs
Green tea 29.000 2g x 25 packs
Olong tea 36.000 2g x 25 packs
Peach tea 37.000 2g x 25 packs
Lotus tea 76.000 3g x 10 packs
Jasmine tea 76.000 3g x 10 packs
Green tea 76.000 3g x 10 packs
pyramid bag tea Olong tea 87.000 3g x 10 packs
Top bud green cold
129.000 2g x 12 packs
brew tea
Olong cold brew tea 129.000 2g x 12 packs
Jasmine cold brew tea 109.000 2g x 12 packs
Olong tea oval
135.000 100g
box
Long wooden tea box 1.745.000 80g x 4 boxes
Xiao Long Chau set 1.145.000 120g x 2 cans
Red Olong set 818.000 150g x 2 cans
Wooden tea box
120g x 2
Box ceremony high-class porcelain 1.380.000
porcelain jars
vase
Square paper box of 5
540.000 24g x 10 boxes
kinds of tea
Tea Jasmine tea Special jasmine tea 79.000 100g
Jasmine tea 15 240.000 500g
packet
98.000 200g

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 49.000 100g
30.000 100g
Green tea 15 60.000 200g
145.000 500g
Green tea
250.000 500g
Xinjiang special tea 102.000 200g
51.000 100g
385.000 500g
Lotus tea Special lotus tea 156.000 200g
78.000 100g
54.000 200g
Black tea
130.000 500g
Premium olong 350.000 80g
tea 415.000 96g
Tin cans of tea Olong tea 80 305.000 180g
Premium paper Jasmine tea 70.000 100g
Tea cans Lotus tea 70.000 100g
tea cans Green tea 50.000 100g
Jasmine tea 55.000 100g
Paper tea cans Lotus tea 53.000 100g
Green tea 43.000 100g
Coffee
Vanilla 74.000 200g
Rich 105.000 200g
Smell Smoth 97.000 200g
Caramel 74.000 200g
coffee Cappuccino 74.000 200g
Chocolate 74.000 200g
hazelnut 74.000 200g
King 107.000 200g
Coffee +
Robusta 87.000 200g
aluminum Moka Blend 93.000 200g
Moka 116.000 200g
fin
Royal special 103.000 200g
Girl coffee set 185.000 100g x 2 packs
Set coffee
Brocade coffee set 207.000 50g x 4 packs
125.000 500g
Coffee Cherry
54.000 200g
beans 130.000 500g
Robusta-Culi
200.000 200g
without
Royal 70.000 200g

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 170.000 500g
76.000 200g
king
185.000 500g
54.000 200g
robusta
130.000 500g
86.000 200g
butter moka
210.000 500g
52.000 200g
Culi
125.000 500g
64.000 200g
Arabica- Culi
155.000 500g
70.000 200g
royal
170.000 500g
Coffee 76.000 200g
king
185.000 500g
beans 54.000 200g
Robusta
with 130.000 500g
58.000 200g
butter Moka Blend
140.000 500g
88.000 200g
Moka
215.000 500g

1.2 Market Growth

Vietnam is one of the largest food and beverage markets in the world Hottest drink
globally (ranked 10th in Asia) in2019.

GDP per capita in Vietnam in 2017 was estimated at US$2,400 (an increase of about 9%
compared to 2016). 41% of this income goes to food, drink and tobacco. The
consumption structure is predicted to be constantly "hot".

The compound annual growth rate of Vietnam's food and beverage industry is 12%.
Growth forecast for the year from now to 2019 reaches 16.1%.Drink consumption of
Vietnamese people in 2016 reached 82 billion liters.

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 Chart 1: F&B revenue growth forecast for the period 2016-2019 reaches 16.1% per
year

According to market research firm BMI Research, Vietnam's food and beverage industry
will maintain a compound annual growth rate for the 2017-2019 period of 10.9%.
Besides, BMI also forecasts that the growth of the dairy industry is expected to be about
10%, of alcoholic beverages is 11.1% and consumer demand will focus on food and
essential goods.

Food - Beverage industry has positive growth thanks to essential products during the
Covid-19 epidemic season in 2020

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 Chart 2: The impact of the Covid-19 epidemic on the production activities of
enterprises in general

The outbreak of the Covid-19 pandemic caused Vietnamese people to South must tighten
spending.

The fast-moving consumer goods (FMCG) industry recorded double-digit growth in 2020
in both urban and rural areas. Especially, in March and April - the period of social
distancing, urban areas spiked by 31% and 22%, then dropped to 7% in December. Rural
areas also witnessed a strong increase. 20% in the period from March to April, then
gradually decrease to 5% in December.

More than 85% of businesses have difficulties in inventory management, distribution and
human resource management in the period. Economic downturn. However, 94.7%

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businesses have realized the weakness of and restructuring production as well as
distribution network to adapt to crisis. In addition, 68.4% of sales application of modern
technology in production and distribution for profit competitive position.

Production and business recovery time of businesses are forecasted related to 56.3% of
the estimated enterprises calculated takes about 6 months, 25% in next 7-12 months and
18.7% over the next 12 months.

1.3 Market Demand

With an increasing proportion of young population (estimated over 50% of Vietnam's
population is under 30 years old), income level is improved and the habit of shopping for
ready-to-eat food is becoming more and more popular. With the abundance of
agricultural products - the source of raw materials for food and beverage processing, are
advantages for businesses in the industry to diversify their categories to meet the
constantly changing needs of consumers. consumers.

The bottom line is that Vietnamese young people are willing to pay to enjoy delicious
and strange foods and drinks. Along with the development of technology, they easily
access the latest culinary trends via social networks and order through applications that
allow finding places to eat, delivering food and booking tables, making the market more
attractive. Culinary school becomes more exciting.

1.4 Market Share

On October 20, 2021, Vietnam Report Joint Stock Company (Vietnam Report) officially
announced the research on the industry market and the Top 10 prestigious companies in
the Food and Beverage industry in 2021.

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Companies are evaluated and ranked based on 3 main criteria(to be carried out in August
2021):
- Financial capacity shown in the most recent year's financial statements.
- Media reputation is assessed by Media Coding method - encoding articles about
the company on influential media channels.
- Survey of research subjects and stakeholders: consumers, experts.

Source: Vietnam Report, Top 10 prestigious Food and Beverage companies in 2021,
October 2021
In 2020, in the face of the COVID-19 pandemic, and the length of the pandemic to
businesses in the industry became more pronounced after the outbreak in April, and
became more severe since July with the proportion of businesses affected by the
pandemic. Severe activity has reached more than 91%.

Vietnam's economy grew steadily at 5.6% in the first half of 2021, macroeconomic
indicators remained optimistic and stable. However, the situation worsened when
entering the third quarter, the epidemic situation became more complicated with the Delta
variant and the food and beverage industry also suffered significant impacts.

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Accordingly, the current outbreaks will be gradually controlled, creating momentum for
economic recovery in the fourth quarter of 2021. Therefore, the recovery time for
production and business activities of F&B enterprises is also forecasted. quite positive
with 47% of enterprises estimated to take about 6 months, 33% of enterprises to take
about 7-12 months and 13% to take more than 12 months.

1.5 Market Trend

In a quick survey of Vietnam Report in the period of 2019-2020:

In the context of people's disposable income increasing, a high proportion of young

population and a growing middle class, consumers are getting smarter and moving
towards a green and healthy lifestyle.,through:
- Products of organic and natural origin will be the main trend of product lines on
the market in the coming time (46% of experts say).
- At the same time, convenient products and unusual products for young people are
also a trend of the near future (36% of experts say).

The level of competition in the food and beverage industry in Vietnam is increasingly
fierce. In that context, many food-beverage enterprises have also been quite proactive in
their strategies to catch up with the trend. product quality, ensuring food safety (response
rate is about 95.5%); research on user tastes (68.2%); and invest more in marketing
activities, brand recognition (45.5%).
After the outbreak of the covid pandemic, the trend of shifting food-beverage shopping
behavior to online shopping channels (91% of survey respondents showed this ).

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2. CUSTOMER ANALYSIS Lê Thanh Trúc

2.1 Target Market

An increase in the number of stores in Ho Chi Minh City in the past five years is proof
that Phuc Long has exploited successfully their advantages of targeting a much more
varied range of customers. There are three types of Phuc Long stores which are the Phuc
Long store (Only supply products), Take away Express, and Take away House. Take
away Express stores are targeting a lower-income class such as students, workers with a
low-priced menu, and the latter type of store targets higher-income customers.

2.2 Target Customer

The coffee market in Vietnam is very competitive. However, Phuc Long, which has
operated since 1957, still has a position in Vietnamese consumers’ awareness in recent
years. Phuc Long has the manufacture in Bao Loc, which is the center of tea and coffee
agriculture in Southern Vietnam. Therefore, they have provided various types of coffee
products made from pure and high-quality materials for different kinds of targets. Phuc
Long currently concentrate on the teenager and young adult:

Teenager: Phuc Long aims for teenagers to create more products that suit their taste with
new and modern recipes. Teenagers’daily life is quite busy, it leads to the fact that they
need fast and convenience services. Moreover, they use their parents’ or guardians’
grants to afford drinks, so the price could be very sensitive. Thus, the company supplies
takeaway service for the younger who required cheaper and more convenient services.
The average price in a takeaway coffee store is around $ 1.5. This segment is usually
attracted by new and unique beverages. Product with good advertising and good
reputation on social media is a big plus.

Young adult: The average income of the middle class in Ho Chi Minh city is $148.
Nowadays, Phuc Long expands the coffee chain by open more stores with modern
decoration and a nice view for their clients to stay and drink beverages. The coffee’s cost
in these stores is around $ 2-3, which is suitable for people in the middle-income range.

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Most of them use their own money to purchase the products, so price and quality are the
most important concerns of this segment. Phuc Long uses their own materials to produce
coffee, so their drinks are always guaranteed. Mouth to mouth promotion plays an
important role in this segment in order to pick the products.

3. PESTEL Lê Thanh Trúc

3.1 Politcal
Vietnam has been encouraging domestic and foreign investors to open factories to
process coffee (coffee powder, dissolved coffee, etc) with modern technology, diversified
products with high quality to ensure food safety, and meet the demands of consumers.
When joining TPP, Vietnam would attract numerous foreign as well as replace the
ineffective traditional process.

Vietnam is a peaceful country with a stable politics, very convenient for the production
and business of enterprises in general and Phuc Long in particular. Regarding tax
policies, according to Vietnambiz.vn (2018), Vietnam currently has no special
consumption tax on sugar beverages, particularly tea and coffee available. Proposals of
10% tax rates were made but not yet approved. Therefore, up to this point, this is still a
good opportunity to develop with businesses in the tea and coffee industry in general and
Phuc Long in particular. With the trend of integration, opening domestic and foreign
markets, Vietnam's tea and coffee industry will have many opportunities to develop into
foreign markets. According to the FAO, in the next decade, black tea production is
forecasted to increase 2.2% per year, estimated to reach 4.4 million tons by 2027.
Besides, green tea production also increased significantly about 7.5% per year and will
reach 3.6 million tons by 2027.

 This will create opportunities for Phuc Long to export tea to the world but it also
poses many challenges in competing with other major markets in the world.

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3.2 Economic
Inflation rate: According to the Price Management Department (Ministry of average
monthly increase of 0.25%. Inflation was controlled, average inflation Finance), the
average CPI of 2018 increased 3.54% compared to 2017, the in 2018 increased by 1.48%
compared to the average of 2017 and kept the average the average CPI below 4%
(VnEconomy, 2018). In 3 consecutive years from 2016 to 2018, CPI is always stable
(<4%) (thoibaotaichinhvietnam.vn, 2019).

GDP: According to the report, in 2018, GDP growth increased to a record (7.08%). =>
Showing people's lives is changing and there will be more demand for food and services.
This is also a good opportunity for Phuc Long to develop new products and services with
a large number of potenial customers.The economy grows stably, credit growth reaches
17%, businesses are able to meet capital requirements.

 Overall, in 2018 Vietnam's business environment was improved, the political

situation was stable level compared to the other new economies thereby attracting
strong investment flows from abroad.

3.3 Social
Until 2019, Vietnam has a population of more than 97 million with an average age of 31
years (danso.org, 2019). Most Vietnamese people in big cities have a habit of using tea
and coffee every day. Moreover, Vietnamese consumers are inclined to use organic and
natural products. With raw materials taken directly from Thai Nguyen tea hill, Phuc Long
brand is associated with the image of safe and quality products, thereby attracting more
customers to use the product.

Besides, with increasing income and life, Vietnamese people are increasingly interested
in enjoying. According to Tuoi Tre online (2018), food and beverages account for the
highest propotion of consumers monthly spending structure with 35%.

 This can see the cultural and social factors positively impacting Phuc Long's
development.

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3.4 Technology
Vietnamese citizens in general and Vietnamese youth in particular are likely to stay up-
to-date and connected with the internet. They enjoy using digital devices in order to
communicate, receive information, entertaining, and so on. As a result, the internet is
creating a new channel through which Phuc Long can easily communicate, interact, and
approach their customers with extraordinary capacity and extremely fast to compare with
other old methods. Moreover, a huge amount of internet users can enable e-commerce
where transactions can be done online.

Along with the development of information technology, nowadays there are many
businesses are always trying to bring convenience to customers by using applications 1on
1the 1phone 1or 1laptop to support customers 1shopping 1or participating join other
types of financial transactions. Mobile applications also help companies design marketing
campaigns such as introducing new incentive programs, accumulating points, giving
gifts,... Moreover, people tend to use social media more and more. This has a direct
impact on Phuc Long in focusing on marketing activities more on social media.

 Keeping up with the trend of informaion technology is one of the challenges for
Phuc Long, because information technology develops day by day, this affects
consumer buying habit. If Phuc Long fails to update new information
technologies, they will lose a number of thier customers.

3.5 Enviroment
In VietNam, natural disasters, floods and some unpredictable changes from the weather
can effect enterprises tea growing areas. Owning for its own tea plantation in Thai
Nguyen, the processing of tea and coffee is taken from the input.

 Therefore, if natural disaters and floods occur, it will directly affect output and
quality of raw materials, thereby directly affecting the operation of Phuc Long

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3.6 Legal
Up to now, there are no institutions or legal documents restricting participation in tea and
coffee production and business. Therefore, there are many buisiness participating in the
industry creating competitiveness for Phuc Long

4.COMPETITOR FRAMEWORK. Đặng Trần Hiếu Ngân

4.1 Highlands Coffee

Future Goal Assumption
 Retain Existing Customers. Blind point:
 Develop Brand Loyalty.  Not having any application for
frequent customers.
 Sometimes the shops are too
crowded, and they do not have
enough staff to keep high
satisfaction of customers (long
queue, long waiting time, unclean
toilet…).
 Using too much plastic and single-
use products.

Current Strategy Capability

 “Stop plastic pollution” campaign.  High brand awareness.
 Coffee Tour.  Clear customer segmentation &
 Issue membership cards to market-skimming pricing.

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 customers.  Wide range of products.
 Good packaging design.
 Having a nice franchise policy
that helps Highland Coffee to be
unique and successful.
 Professional training program.
 Diverse payment options.
4.2 Starbucks Viet Nam
Future Goal Assumption
 Expand customer reach, build Blind point:
takeaway habits for Vietnam  High price.
market.  Products can be imitated.
 Become the number 1 coffee
brand in Vietnam.
Current Strategy Capability
 Product Expansion.  High brand awareness.
 Brand promotion.  Quality, taste and standardization.
 Increased use of social networking  Strong financial performance and
apps. supply chain.
 Use word of mouth marketing.
 Use convenient payment methods.
 Community activities.

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4.3 The Coffee house.
Future Goal Assumption
Creating a better coffee experience for Blind point:
young people through drinks, services,  The menu is nothing really
design and community connections. special.
Current Strategy Capability
Marketing plan 5P:  High brand awareness.
 People & Physical Evidence.  The staff is always dedicated to
 Promotion. customers.
 Price.  Nice view with low price coffee.
 Product .
 Place.

5. COMPETITIVE PRESSURE Đặng Trần Hiếu Ngân.

5.1 Customer.
Phuc Long coffee can meet the demands of both common people and high-income
customers. They divide their stores into two types: take away express and take away
house.

In addition, Phuc Long also aims at some big markets including Japan, America
through foreign tourists coming to Vietnam.

5.2 Internal Industry.

In the competitive environment in Vietnam, there are so many well-known coffee
brands in Vietnam and they compete intensively.

Highland is the biggest companies but has been decreasing shares recently. Phuc
Long has been stabilizing in recent years. It is clear that Phuc Long hasn’t had any
significant influences on coffee industry because of the firmly development of strong
competitors such as Highlands Coffee, Starbucks.

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5.3 Potential rivals.
New coffee brands in Vietnam such as Cong coffee, Ong Bau, Café Amazon and
King coffee.

5.4 Supplier.
Phuc Long possesses their own farm system and the factory with modern
equipments therefore they take the initiative in raw materials. That seems to be an
advantageous effect on not only Phuc Long themselves by easily controlling the prices
and resources supplying but also customers as they can buy drinks with a lower price
compared with other prestigious brands,.

6. SWOT ANALYSIS Lê Ngọc Vy

6.1 Strength
 . Phuc Long targeted at diverse customers.
 The prices of Phuc Long's products are appropriate and reasonable for costumers'
income.
 Phuc Long's stores have a magnificent view, professional customer service.
 Applying local products.
 With climatic conditions, the taste of Vietnam's coffee is more delicious.
 Always understand clients and make them satisfied.
 Applying raw materials such as coffee and tea leaf to make their products flavorful.
Phuc Long has now opened many stores across the country

6.2 Weakness
 Limited indoor seats in most of the stores, moreover the distance between seats is
short.
 Social websites are managed badly, online interactions with clients are limited.

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 Phuc Long's waiting time for water is also quite long because of the large number of
customers in the shop
 Too crowded to be safe from the Covid-19.
 Using too much plastic and single-use products.
6.3 Opportunity
 Export ing coffee from Vietnam to other countries is much more convenient so Phuc
long will be able to make their brand go to international.
 Almost all Vietnamese are familiar with coffee.
 Chains of stores which are placed in a dominant location (in malls, city center, etc.)
 Vietnamese people habit is to go to cafeteria for their business..

6.4 Threat
 The erratic developments of pests have been affecting negatively the quantity of
coffee.
 The coffee market is now mature and competitive
 With the ideal conditions to plant coffee in Vietnam, many coffee companies outside
Vietnam will see the chance to make a profit
 Business operation is now based on the condition of the pandemic, the shops could
have to close in long time

7. MARKETING STRATEGIES Lê Ngọc Vy

7.1 Customer Analysis

Demographic

Ages  From 16 and above

Gender  all

Income  Average income (about 4-5 million VND)

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 Job  Student or working person, middle class
Pshychographic

Lifestyle Having passion for tea and coffee, dynamic, young, modern, love
open space, busy and love to explore

Personality  Diversity, independence, openness..

Geographic

Regional  Living in big cities such as Ha Noi, Ho Chi Minh, Da Nang,…

Demand

- Those who need to use wifi

- Comfortable, simple space, put delicious drinks, good service quality, beautiful
place, affordable price

7.2 Positioning
High quality

Low priceLow Price High price

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 Low quality
Compared to the other four brands, Phuc Long offers a more comprehensive service,
Phuc Long's signature tea and premium brewed coffee are usually only served at luxury
restaurants. Maintain and protect the inherent natural quality of Thai Nguyen tea. The
brand identity is to provide the best quality products and services.

Point of Parity (POPS)

- Having a factory in Vietnam.

- Build brand reputation with customers.

- Nationwide distribution system.

- free wifi network

- pay by online applications

Point of Difference (PODS)

Phuc Long

+ owns 2 large Thai Nguyen and Bao Loc tea hills

+ Four characteristics that you can find in coffee beans here are: dark roasted coffee
beans, bold taste, delicate taste and coffee aroma.

+ Flavor combination from Phuc Long tea leaves: Theanine (the taste), Carbohydrates
(sweet taste), Polyphenols (acrid taste), Caffeine (bitter taste), Enzymes (yeast)

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Starbucks

+ Most Starbucks stores have upgraded their machines to high quality Swiss Mastrena
machines and allow continuous espresso production.

+ Starbucks chooses a single Clover coffee machine

+ Any Starbucks bartender working more than 20 hours/week will receive health
insurance

+ Starbucks allows customers to pay with Iphone or Blackberry

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Cong coffee

+ Cong has 68 stores nationwide and 4 stores in Korea.

+ The feature of Cong cafe chain is to recreate the nostalgic life of the subsidy period in
the 70s and 80s. In the midst of the noisy, rushed and busy city, Cong wishes to bring
customers a peaceful and gentle space, a place to return to old memories.

Optimistic plan
-Along with Highland Coffee and Starbucks, Phuc Long coffee is considered the Big3 –
the three big players in the Vietnamese tea and coffee market. Born in the famous evil
land of Bao Loc (Da Lat), Phuc Long is known as the "king" of tea, a rare brand in
Vietnam that can reach the most demanding markets.

- The desire to expand to foreign markets is a common desire of Vietnamese brands.

- Phuc Long's goal in the next year is to build and develop the brand further, bringing this
high-quality coffee&tea brand closer to customers, thereby increasing the volume sold
and increasing competitiveness in this "fertile" market

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- Worst case scenario in Vietnam market (COVID epidemic is still complicated in
Vietnam, causing everything to be delayed and decreased in the past 2 years). Phuc long's
will try to maintain, develop and enhance its influence of the brand than in the Vietnam
market.

- In addition to the above revenue and sales goals, phuc long also sets short-term and
long-term goals such as:

+ Improve brand awareness in the Vietnamese market (Short-term) by implement PR

activities such as advertising campaigns on Facebook, Google, etc.

+ Developing and expanding the distribution network of Phuc long in Vietnam to find
new potential customers ( Long-term) by distribute products to potential retailers.

+ Offer appropriate discounts ( Short-term) such as Phuc Long offers monthly discounts,
discount events on Black Friday, and discount events on public holidays.

8. MARKETING MIX STRATEGIS Hoàng Phúc Tấn

 People & Physical Evidence

As a brand that has been around for a long time, Phuc Long always knows how to break
the way, towards modernity right from the space of the restaurant. The cozy space of
Phuc Long restaurant, tables and chairs arranged in groups, high-rise architecture,
spacious space, early opening time, late closing time helps customers enjoy easily at
convenient time frames. In addition, the company also decorates the shop according to
the season or important holidays of the year with a youthful, eye-catching concept.

Besides, Phuc Long's customers are mainly female, so the company focuses on healthy
and skin-friendly milk teas. In addition, low-sugar, fat-reducing drinks are also
considered by the company.

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  Price

Phuc Long's menu and price policy are also reasonably built based on the available
strengths of tea and coffee. Phuc Long targets a variety of customers, from working
people, tourists to students, so the price of the company is at a mid-range level, suitable
for the pocket of the vast majority of people. Like milk tea, the same hot product on the
market, Phuc Long sells at a relatively soft price. A cup of tea only ranges from 25,000 -
45,000 VND/cup, equal to 50 -70% of the price of Trung Nguyen and 30 - 50% of
Starbucks, The Coffee Bean, and Tea Leaf.

The "comfortable" price is one of the ways to help Phuc Long bring its brand to all
consumers in the fastest way.

 Product

Most people think that milk tea shops will only sell milk tea. But Phuc Long did not do
so. In the menu of this brand, customers will find a variety of teas, milk teas, juices,
coffees and even cakes prepared and served with Phuc Long tea.

Phuc Long's menu is also very rich with 63 different milk tea flavors. With coffee-
flavored drinks, outstanding drinks can be mentioned such as caramel coffee, rich milk,
cappuccino, vanilla coffee, mint iced coffee...

In addition, the following tea dishes are also popular with young people such as peach
milk tea, pink milk tea, Tieguanyin tea...

 Place

Having a home-field advantage over the foreign coffee brand Starbucks, Phuc Long is
ready to declare war and raise its brand with these giants by choosing prime selling
locations. In big cities like Hanoi or Ho Chi Minh City, Phuc Long coordinates in central

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locations, crowded with people, even very close to rivals. In 2018, when Phuc Long
expanded its area, entering Hanoi for the first time, the company chose

to open at the IPH Cau Giay trade center. IPH is not the most discerning choice but it is
also close to office blocks and universities. This will be a stepping stone in expanding its
branch around Hanoi.

9. FINANCAL SUMMARY Hoàng Phúc Tấn

In 2019, this F&B business (food and beverage industry) achieved net revenue of VND
779 billion, up 65%, equivalent to an increase of VND 306 billion compared to 2018.
Along with that, Phuc Long's gross profit increased. from 169 billion VND to 276 billion
VND, equivalent to an increase of 63%.

However, the profit after corporate income tax was only 16 billion dong. The company
has total assets of 367 billion VND and owner's equity is over 72 billion VND.

Impressive business results helped Phuc Long reach the top 4 F&B brands with the
highest revenue in the market. In this list can be mentioned Highlands Coffee (revenue of
2,199 billion VND in 2019), The Coffee House (863 billion VND) and Starbucks (783
billion VND).

In just over a year, Phuc Long opened 10 stores in Hanoi, second only to Ho Chi Minh
City (47 stores). Revenue in 2019 therefore also increased dramatically by nearly 65%.
However, it is not clear what percentage of the revenue from 10 stores in Hanoi.

Phuc Long's store location also contributed to revenue growth. It is known that the
advantage of Phuc Long store is that it is located in busy, crowded and expensive places
of the capital such as Cau Giay, Hoan Kiem, Dong Da, Hai Ba Trung, Tay Ho - this is a
residential area. have high income, especially the workplace of the office world, and also

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the entertainment of Hanoi people. According to information, the location of the first
Phuc Long store in Hanoi is the IPH building, the same location as the Starbucks Coffee
and Highlands Coffee stores. But that is also the reason why the rent of Phuc Long's
premises becomes expensive.

And it is a fact that revenue growth is high, but the profit of Phuc Long chain in recent
years is quite low, only a few billion dong. The reason may come from the continuous
expansion process and the low profit margin.

ASSIGNMENT SHEET

Ngô Vũ Quỳnh Mai INTRODUCTION

Lê Nguyễn Hoàng Bảo 1.MARKET ANALYSIS

Lê Thanh Trúc 2.CUSTOMER ANALYSIS & 3.PESTEL

Đặng Trần Hiếu Ngân 4.COMPETITOR FRAMEWORK & 5. COMPETITIVE

PRESSURE

Lê Ngọc Vy 6.SWOT ANALYSIS & 7. MARKETING STRATEGIES

Hoàng Phúc Tấn 8. MARKETING MIX STRATEGIS & 9. FINANCAL SUMMARY

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