New product development strategy for Phuc Long Coffee & Tea Co, Ltd | Bài tiểu luận nhóm học phần Principles of Marketing | Trường Đại học Quốc tế, Đại học Quốc gia Thành phố Hồ Chí Minh

INTERNATIONAL UNIVERSITY - HCMC UNIVERSITY
SCHOOL OF BUSINESS ADMINISTRATION PRINCIPLE OF MARKETING GROUP PROJECT
NEW PRODUCT DEVELOPMENT STRATEGY FOR
PHUC LONG COFFEE & TEA CO, LTD Instructor : Nguyen Tran Nguyen Khai Group number : 15 Group member Student ID Nguyen Tran Bao Vy : BAFNIU21625 Le Thuy Thao Vy : BAFNIU21622 Nguyen Le Duc Tri : BAFNIU21604 Bui Quoc Trung : BAFNIU21607 Vo Huynh Minh Chuong : BAACIU21009 Page: 23
Date of submission: December 19, 2022 Thành phố Hồ Chí Minh, tháng 12 năm 2022 Table of Contents:
I. Introduction: ......................................................................................................... 3
II. Market analysis: ................................................................................................. 3
1. Executive Summary ......................................................................................... 3
2. Current marketing situation ........................................................................... 4
Microenvironment ............................................................................................. 4
Macroenvironment ............................................................................................ 5
b) Product review ............................................................................................. 8
c) Competitive review ...................................................................................... 9
d) Channels and Logistic review .................................................................. 11
3. Strengths, Weaknesses, Threats, and Opportunities .................................. 12
a) Strengths ..................................................................................................... 12
b) Weaknesses ................................................................................................. 12
c) Threats ........................................................................................................ 13
d) Opportunities ............................................................................................. 13
4. Objectives and Issues ..................................................................................... 13
a) First-year objectives .................................................................................. 14
b) Second-year objectives .............................................................................. 14
c) Issues ........................................................................................................... 14
5. Marketing strategy ......................................................................................... 15
a) Positioning .................................................................................................. 15
b) Product strategy ........................................................................................ 16
c) Pricing strategy .......................................................................................... 17
d) Distribution strategy ................................................................................. 17
i. Direct distribution ...................................................................................... 17
ii. Indirect distribution .................................................................................. 18
e) Marketing communication strategy ......................................................... 18
i. Target audience ........................................................................................... 18
ii. The communication objective ................................................................... 18 1
iii. Message ...................................................................................................... 18
iv. Social media ............................................................................................... 18
f) Marketing research .................................................................................... 19
6. Action programs ............................................................................................. 19
7. Budgets ............................................................................................................ 20
8. Controls ........................................................................................................... 22
III. Conclusions: ..................................................................................................... 22
IV. References: ........................................................................................................ 22 2 I. Introduction:
Born in Bao Loc (Lam Dong) in 1957 and having inherited the family business, Mr. Lam
Minh Boi, a director of the Phuc Long Company, seeks to develop the business of tea and
coffee. In the past, Phuc Long has simply accommodated resellers with qualitative coffee
and tea across the country but nowadays, they have been expanding the sphere of their
business by using raw materials (coffee and tea leaf) to make tasty drinks in their own
coffee shops and invest in plant construction with a modern production line to meet
domestic demand as well as export to the world. Phuc Long operates based on the slogan
“A Passion for Quality”. Because of this, our brand is building a reputation for a
Vietnamese brand rich in tradition that connects our many years of experience; our
continuous learning and adaptation to the changing times to many generations II. Market analysis: 1. Executive Summary
Phuc Long Co., Ltd will launch a fruit yogurt product called "Mix Berry Berry Yogurt".
Although the beverage market is increasingly fiercely competitive, the vitamin-fortified
beverage category is still not popular in Vietnam. Today consumers are looking for drinks
that fit a healthy lifestyle while maintaining flavor. Therefore, Phuc Long wants to position
itself in the segment and grow the fastest in the market to increase market share for the fruit yogurt category.
Phuc Long has matched industry developments and client needs while leveraging its
strengths and accomplishments to join the health sector. The Mix Berry Berry Yogurt, a
fruity drink coupled with a rich, fragrant yogurt that delivers health benefits, will be
introduced to the market. Natural digestive enzyme supplement that improves the body's
capacity to digest and metabolize all calories to aid in weight loss. Phuc Long's overall
position in the market will gain from the introduction of this concept because the market
will draw a sizable potential market. Mix Berry Berry Yogurt is marketed to Generation Z,
specifically to kids (10 to 12 years old) and young adults (19 to 30 years old), who have
varied palates and are aware of the nutritional benefits of yogurt and fruit. This marketing
plan aligns with the mission of the company of providing a unique but very healthy and 3
balanced product, while promoting a wellness lifestyle for its customers. The plan begins
with analyzing the current market situation to focus on market trends and customer
behavior. Next, the marketing strategy for the new product is described and the various
marketing elements are detailed. Then, come up with an action plan and budget to protect
profits, a plan for each expenditure and activity. Finally, the control plan is presented.
2. Current marketing situation Microenvironment Company
Phuc Long Coffee Stores was established as a reputable coffee and tea house belonging to
Phuc Long Coffee and Tea Co Ltd after the success of its production due to the perfect
quality of its products. Furthermore, the menu offers the best range of variety and
affordable prices; they use as much local produce as could be expected, such as oolong tea,
black tea, dark roasts, moon cakes, preparation tools, etc. Moreover, Phuc Long’s
marketing department pursues the planning strategy that is “think consumer” to provide
consumer value and satisfaction. Supplier
Phuc Long possesses their own farm system and factory with modern equipment, so they
take the initiative in obtaining 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 at a lower price compared with other prestigious brands Customers
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 terms of takeaway express stores, they focus on people with average incomes at
affordable prices. On the other hand, take-away house stores serve the same drinks but at
higher prices due to the premium service and splendid space Publics
Phuc Long has received so many positive responses from customers. Customers say they
have magnificent view, professional customer service Phuc Long’s take away house stores 4
in the main routes are always packed because these are the favorite choice of youngsters to come to relax or chat. Macroenvironment a) Demographic:
Population: The current population of Vietnam is 99,296.977 as of December 16, 2022,
according to the latest figures from the United Nations. With this result, Vietnam is the 15th
most populous country in the world. The population density of Vietnam is 320 people/km2.
With a total land area of 310,060 square kilometers.
Population in urban areas: The population of urban areas in 2019 in Vietnam is
33,059,735 people, accounting for 34.4%; in rural areas is 63,149,249 people, accounting for 65.6%.
Gender: The number of men and women in Viet Nam is relatively balanced. Of the total
population of more than 96.2 million, 47.88 million people (accounting for 49.8%) are men
and 48.32 million people (accounting for 50.2%) are women.
Number of populations by employment: The country's labor force aged 15 and over is 50.5 million people in 2021
Age: In 2019, the proportion of the population aged 15-64 years accounted for 68.0%, the
proportion of the population under 15 years of age and 65 years of age and older was 24.3% and 7.7%, respectively
Sex ratio: In 2019, Vietnam's sex ratio was 99.1 men/100 women. The sex ratio in urban
areas is 95.5 men/100 women, in rural areas it is 100.4 men/100 women.
Income level: Vietnam's per capita income per month in 2021 will reach 4.2 million VND.
In which, per capita income in urban areas will reach nearly 5.4 million VND and nearly
1.5 times higher. the rural area is approximately 3.5 million VND. b) Economic:
Economy ranked 49th in the world and 6th in the ASEAN region. Vietnam is an
agroindustrial state. The Vietnamese economy is one of the fastest growing among Asian
countries. The average annual GDP growth rate is about 6.5% that together with stable 5
population growth and an increase in prosperity makes Vietnam an attractive market in the long term.
The level of GDP for 2021 reached more than 352 billion US dollars.
The services market is actively developing. It accounted for 30% of the country's GDP. As
a consequence, people will expect a rise in their pay, which prompts interest in a higher
quality product, a more premium spot like Phuc Long could be their option. c) Political
Vietnam has been encouraging domestic and foreign investors to open factories to process
coffee (coffee powder, dissolved coffee, etc) with modern technology, and diversified
products with high quality to ensure food safety and meet the demands of consumers. When
joining TPP, Vietnam would attract numerous foreigners as well as replace the ineffective traditional process. d) Technology
Vietnamese youth in general are likely to stay up-to-date and connected with the internet.
As a result, more and more kinds of services are developed to suit people's immediate
needs in a society where individuals have ready access to information. This allows Phuc
long to create a new channel which they can easily communicate, interact, and approach
their customers with extraordinary capacity and extremely fast compared with other old
methods. A huge amount of internet users can enable e-commerce where transactions can be done online. a) Market description
Nowadays, realizes that Vietnamese's need for healthy living and raising nutritional
awareness, especially after the Covid 19 pandemic, Phuc Long determine its market
segment on demographic segmentation by targeting into Generation Z that market
customers are willing to try new experiences, concerned about their health most and will
be the main source of labor in Vietnam in the near future. This choice will help PL reach a
wide range of customers from graduates, students, students, even children. Some features about Gen Z: 6 • Born in 1997-2012 •
Population: Gen z accounts for a high percentage of the age structure of Vietnam, about 23
million people, accounting for about 23,8% of the country's population (2019 data). This
is considered the golden population of Vietnam in the future. •
By 2025, Gen Z is expected to contribute to one-third of the labor force in Vietnam, and
will have a great impact on the labor market domestic movement Life style: •
The digital generation: Most Gen Z have access to the Internet at a very early age and can
master the tools to find information quickly and easily. In particular, smartphones are the
devices used by Generation Z to perform this lookup. According to a survey, nearly 39%
of Gen Z prefer to use mobile apps instead of the online web version. •
This is the pioneer generation in creating new trends (hot trends). They easily receive
information and easily update new things from the internet or mobile devices. love content
that is interactive like commenting, livestreaming or posting stories Insight of Gen Z: •
Social media has become an essential part of life especially FB and YT(95% and 80%) =>
It is necessary to promote traditional marketing activities, focusing on developing
marketing activities on social media channels to develop brands as well as businesses. •
Tend to favor Vietnamese brands: Nielsen's research results in Vietnam show that 50% of
Gen Z support brands that reflect Vietnamese values and culture. Buying behavior: •
Online shopping is not everything: More and more Gen Z is turning to brick-and-mortar
stores. A division of Gen Z often surfs online stores but still goes to stores to buy products
because they want to enjoy an in-person customer experience. •
A low price is not always a good thing: because they expect the product to be of high quality.
To keep this generation of customers for a long time, marketers must strike a balance
between pricing and product quality. •
Willing to pay a high price for convenient experiences that are personalized to their preferences and tastes. 7 •
Social Media and references from friends are the next top factors influencing them:
Therefore, taking advantage of word-of-mouth marketing is a method to increase the
buying decision of Gen Z customers. •
Compared to the target customers, people who are too famous are not necessarily brought
about as positively as influencers. Gen Z is looking for stories and authenticity coming
from real reviews from real people. influential people in that field, not just celebrities •
Pay attention to healthy foods, Gen Z is becoming more and more concerned about health
issues, especially in the post-pandemic context like today: >60% of gen z have a high sense
of food choice, considering the nutritional composition of food. Gen Z people are having
an explosion of proper diets. Much of this can come from a “generational desire” for the
story behind the food supply chain (similar to how they want to know what makes a brand to choose to favor or not). •
Homemade food is hardly on the priority list: While it may seem counterintuitive to be
physically healthy, one study found that preparing food at home is not one of Gen Z's habits.
As of 2020, there are only approx. 17% said they prepare homemade food every day, while
37% said they prepare homemade food at least a few times per week.
Additionally, 15% are expected to spend more on food delivery. b) Product review
Producing, exporting, and trading finished tea and coffee products (packaged).
Foodservice business at the store system: all kinds of food and drinks; All kinds of cakes,
savory cakes; Delivery service
• Tea: Pure origin determines the fresh taste, and strong traditional tea flavor,
respecting the original for a cup of tea Strong flavor of traditional tea: Phuc Long
always preserves special compounds from tea leaves to make tea. A cup of tea
with strong flavors such as theanine (awakening energy), carbohydrate (sweet
taste), and polyphenols (acrid taste) is a special ingredient found in young tea
leaves, along with caffeine (bitter taste) and enzyme (yeast).
Tea products - Tea boxes: Tea bags, Tea triangle bags, … 8
Tea Package: Thai Nguyen Tea, Black Tea, ...
Tea cans: High-quality paper cans tea, …
• Coffee: Pure from the origin, Preserving the premium characteristics of the coffee
beans, Respecting the original for a cup of coffee with a strong taste of ground
coffee beans: Phuc Long always focuses on four characteristics of the coffee fruit:
Aroma, richness, Acid (sour taste), and aftertaste
Coffee products: Set coffee, aluminum filter coffee, scented coffee, bean coffee, … c) Competitive review
Talking about competitors in the Phuc Long industry, we mention competitors such as
Starbucks, Highland’s coffee, The Coffee House Starbucks:
Operation scale: this is a world-class coffee brand with 21,000 stores scattered around
65 countries. Starbucks, as a fast-growing company in the United States, has made
significant contributions to regional economic development.
Product: Rich menu: Starbucks has most of the products, such as espresso, coffee,
iced tea, etc. Cakes, muffins, cookies, and sandwiches are also available.
Strengths: Adding flavor to drinks: To satisfy customers' personal preferences, Strong
brand correlation, and public image
Weaknesses: Unhealthy choices. Many of the drinks offered by Starbucks are high in
calories and sugar, putting them at risk of harm if consumed regularly.
High price: Starbucks drinks may be cheap in foreign countries, but in
Vietnam, they are 3–4 times more expensive than the price of the same drink. 9
Highland’s coffee:
Operation scale: in 1999, the Highlands Coffee brand was born with the desire to
elevate Vietnam's long-standing coffee heritage by harmoniously combining tradition
with modernity and maintaining the hand-sorting process. In 2015, Highlands
expanded the number of stores to 775, and by the end of March 2017, the company
had a total of 180 stores across 14 provinces in Vietnam. As of February 2019, the airline has 211 stores.
Product: At the Highlands Coffee coffee shop chain, products are beverages (coffee,
ice, fruit tea, etc.) and fast food (bread).
Consumer channels such as supermarkets, traditional markets, and grocery
stores: Highlands Coffee sells black coffee or milk in the form of powder, or
liquid, which is packaged in cans and boxes for the purpose of easy movement and storage.
For coffee, Highlands Brand also develops other product lines to accompany
and give as gifts to the company's customers. It's a Highlands porcelain cup and a thermos bottle.
Strengths: Occupying a large market share; In 2020, Highlands Coffee continues to
hold its position as the largest coffee chain in Vietnam
After selling a 49% stake to Jollibee Foods, Highlands Coffee automatically
enjoyed the quintessence of F&B chain management and operation of one
of the most famous fried chicken chains in the world.
This brand's chain of stores is located in the most prime locations in the city
center, making it easy for everyone to access.
Weaknesses: The stores are mainly located in city centers, so they have not been able
to reach customers in suburban areas:
The coffee house: 10
Operation scale: this is a Vietnamese coffee shop chain established in 2014. The
company is headquartered in Ho Chi Minh City. As of March 2018, the chain had
more than 100 stores across Vietnam, serving more than 40,000 customers per day.
Their CEO announced that the company plans to open up to 700 stores across Vietnam.
Product: the highlight is Vietnamese coffee, and macchiato also has fruit tea and matcha
Strengths: Exquisite experiences from the smallest things: Most cafes do not want
their customers to sit for too long because this will affect their profits. However, TCH
accepts risks because it wants to bring the best experience to customers
"Human-centered" from small things has had far-reaching consequences. From
employee happiness to customer satisfaction, they have naturally become a familiar place for many people.
Weaknesses: Monotonous menu: The Coffee House also has an imperfect point, which
is the restaurant's menu. The longtime staff there also admits that the menu there is nothing really special
d) Channels and Logistic review
Direct channels: With nearly 50 flagship stores across Ho Chi Minh City, customers will
have the best service experience and can interact with customers in the best way.
Flagship stores achieved VND 761 billion in revenue and VND 233 billion in EBITDA in
September 2022, contributing nearly 67% to revenue and demonstrating the potential to
become a growth engine for Phuc Long
Indirect channels: Currently, people's payment methods tend to pay and
order through intermediary applications such as Grab Food, Beamin, etc.
Phuc Long's combination with that intermediary helps expand revenue and
reach the audience. Proof that 35% of revenue comes from online channels
contributes to 35% of Phuc Long's total revenue. A large proportion of Phuc
Long's customers are young, live in urban areas, and are proficient in using digital services. 11
Wholesale and retail distribution channel: With the acquisition of Masan,
according to the signed agreement, VinCommerce (a subsidiary of Masan) has
established a strategic cooperation with Phuc Long to jointly develop the
model of "Phuc Long Kiosk" through a network of more than 2,200
WinMart+ stores nationwide. However, despite deploying more than 1000
kiosks integrated with Winmart, the Phuc Long kiosk system only brought in
VND 382 billion in revenue, equivalent to about 33% of the revenue for the PLH system. (Q3/2022)
3. Strengths, Weaknesses, Threats, and Opportunities a) Strengths
Having more than 50 years of experience, Phuc Long is a chain of beverage stores
that has received credibility from customers, so the brand always has a certain
number of customers. With a rich and diverse drink menu, Phuc Long offers
customers many different choices of perfect drinking water from quality to detail. The
staff is well trained and professional. Not only that, Phuc Long is also present
everywhere on the map of Vietnam, in big cities, Phuc Long also expands its stores in
each area. The locations chosen as stores are always busy streets and corners that
attract customers to visit. Each product that Phuc Long launches to the market always
attracts customers because of its trendiness, suitable for each season of the year, but
still equally good quality. Therefore, Phuc Long's awareness is very high about a
brand specializing in providing strong tea and coffee drinks to help diners stay awake
to focus on work or relax during meetings with their friends. b) Weaknesses
Despite its strengths, Phuc Long still has shortcomings such as opening kiosks at
convenient supermarkets that do not bring back expected revenue. It is not possible to
bring all Phuc Long products served at the kiosk. Having strengths in tea and coffee,
but other products are not as popular as the two above. Not only that, Vietnam's
beverage store market also constantly appears new prominent names and especially
heavy competitors such as Highland, Starbuck, etc. Talking about Highland, this
brand has a menu. As diverse as Phuc Long, their menu items are equally popular
while Phuc Long is only famous for tea and coffee. Starbuck is a brand from abroad,
so it attracts a lot of young people who are famous for their bottles, and the menu 12
includes strange dishes that other brands cannot compare. That's why Phuc Long still
needs to consider more to launch a suitable marketing campaign and help the brand go up even more. c) Threats
When conducting this marketing campaign, we can see the benefits of making our
products more accessible to customers. First, the new product is a line of ice yogurt
mixed between 2 fruits, so we don't have to spend too much time looking for new
distribution sources for this product line because they are mixed by 2 types of fruit
that used to be used in Phuc Long’s products. Next, the selected products are all
products with proven safe sources, fruits containing many vitamins suitable for all
ages and good for the health of customers. With ingredients made from yogurt and
fruit, once again remade and more investment in marketing will bring to customers a
new product line different from PL's signature spam lines so far. Not only that,
putting yourself in the position of customers who have small children or are pregnant,
live healthy, the need to choose for themselves a healthy drink is extremely important.
Because of this, the introduction of the fruit yogurt line will be a new breakthrough,
expanding the number of customers. d) Opportunities
But along with the opportunities that this product line brings, there are also challenges
that we need to face. Coming to the first risk is how our marketing may have been
applied too much by previous restaurants and brands, some cases of dishonest reviews
will cause the audience's trust to decline so the solution for this is to find KOLs with a
reputation to attract trust. Regarding the new product line, some brands have also
been released and are very popular, so it is inevitable that the comparison between
two brands the way we need to follow is to create unique taste and layout for our
products. The risks brought when focusing on the previously unnoticed product line
may be unpopular again, affecting a large amount of money to be spent on this marketing strategy.
4. Objectives and Issues
With the specific goal of creating a yogurt product line, Phuc Long will have to follow
each stage in its marketing strategy for new products. Specifically, with the current 13
popularity and coverage of the store system, along with the trust of consumers, it is
possible to post articles for products to gain revenue. Assuming Phuc Long's yoghurt
product sales are currently 8% of total sales, the goal after formulating this marketing
strategy will be to increase 2% of total sales. Phuc Long's current revenue is VND 1,143
billion, and it is expected that after the launch of the yogurt product line will reach 10%
of total revenue, about VND 170 billion. The start time of this marketing strategy will
be in December 2022. The goal of this campaign is also to benefit from restructuring
non-tea and coffee product lines, making it possible to reach a new set of customers that promote health and nutrition.
a) First-year objectives
In the first year, strengthen advertising strategies, discount sales, and special
events, ... to increase customer awareness about the yoghurt line. Set a target to
breakeven at the end of the year about 60 billion VND, with the average retail price of
1 product being 65,000 VND, about 816,429 cups. To achieve 10% revenue,
1,758,461 cups will have to be sold with a revenue of about 114 billion 300 million VND.
b) Second-year objectives
In the second year, focus on diversifying product lines (Strawberries, raspberries
mixed with yogurt, strawberries). Revenue doubled to about 228 billion 600 million
VND (3,516,922 cups) compared to the first year c) Issues
In determining this goal, the biggest problem that needs to be solved is to raise
customer awareness about the new product line, create a separate customer base for
the yoghurt line, and consider the competition of stores that are famous for this
product line but have a lower price. Besides, Phuc Long is inherently renowned for its
tea and coffee products, so it won't be easy to create trust for customers in a nutritious
yoghurt line and convince them to choose the product. Therefore, the creation of
communication plans is an essential element to achieving the goal of raising awareness about yoghurt mix. 14 5. Marketing strategy
Mix Berry Berry Yogurt’s marketing strategy will involve changing positioning
based on eating trends and customer needs. The main target segment is gen z.
This segment includes children (ages 10 to 12), adolescents (ages 13 to 18) and
young adults (ages 19 to 30). Mix Berry Berry will focus specifically on the
children and youth markets, because:
- Children (10 to 12 years old): children of Gen Y. Children today have the
opportunity to be exposed to technology from an early age, they tend to be
interested in eye-catching things on social medias, so parents are willing to
respond to their children's wants and preferences. However, children's health and
nutrition are also highly valued and prioritized by parents.
- Young people (19 to 27 years old): use technology proficiently, most of them
spend time on social networking applications such as Tiktok, Instagram,
Facebook, etc., so they are easy to catch trends. Moreover, they also have a
stable income, are willing to spend a lot of money in order to have the best
experience or at least for their hobby. Thanks to modern technology, they tend to
prefer to shop online, evaluate and select products through actual consumer
reviews, KOL reviews, etc. In addition, at this age they care very much about
their own health, like to eat well but focus on nutrition, have a healthy diet, eat a
lot of fruit and limit high-calorie foods. a) Positioning
Mix Berry Berry Yogurt will be positioned as a “different” product from the brand's
previous product lines, allowing the brand to be differentiated based on product
ingredients (difference in protein and vitamins content compared to other products),
quality (for better taste) and benefits (for greater nutritional benefits).This marketing
will focus on Mix Berry Berry being more than just one delicious drink that also
brings many nutritional values to customers. 15 b) Product strategy
Product is the most important factor to ensure the success of the brand. Phuc Long
always focuses and develops its products in the best way. The brand has focused on
researching and finding the unique USP point, which is that Phuc Long's taste must be
one, unique, unique and different. Currently, Phuc Long's list of beverage lines includes: • Signature coffee • Special tea • Everyday healthy • Cool blended beverage i. Product decision
Based on buying behavior and needs of customers. Firstly, in terms of purchasing
behavior, most customers who want to experience fruit yogurt have a hard time
finding the product on the menu, because Berry Berry Yogurt and Tropical Yogurt
belong to the “Everyday healthy” category along with other products. Second, due to
the increasingly diverse dietary needs of consumers as well as the appearance of
many competitors hindering the company's development, the company came to a
decision on the product line. products as follows: 16
- Expanded product portfolio: Split Berry Berry Yogurt and Tropical
Yogurt into a separate product category called “Fruit Yogurt.” This
makes it easy for customers to find products.
- Product addition: Developed a new type of yogurt named “Mix Berry
Berry Yogurt” and added it to the “Fruit Yogurt” category to create
more choices and meet the increasing demands of consumers -
Product line expansion: “Fruit Yogurt” products will be available
in 14-ounce sizes to cater to the lower end of the market. c) Pricing strategy
From the past until now, Phuc Long has built its pricing strategy with Good-value
pricing along with effective and appropriate pricing strategies such as: Product line
pricing, Promotional pricing and Combo pricing. The price of the company falls in
the mid-range suitable for the wallet of most people. The price of beverage products
at "Phuc Long Coffee & Tea" ranges from 35,000 to 75,000 (VND). This price is only
50-70% compared to the selling price of Trung Nguyen or 30-50% of the price of
Starbucks or The Coffee Bean & Tea Leaf.
For Mix Berry Berry Yogurt, the company states that pricing will follow
Marketskimming pricing. Because Phuc Long's original goal was to find big profits in
the shortest time possible instead of focusing on sales or orders, both Berry Berry
Yogurt and Tropical Yogurt are priced at 70,000 VND with only one size of 20
ounces. Therefore, Phuc Long will launch a 14-ounce size at a price of 60,000 VND
to reach other segments in the market to meet the buying needs of other customers.
d) Distribution strategy
Currently, Phuc Long coffee & tea has more than 80 stores across the country, these
stores are all located in "Golden Lands" with great potential, mainly in provinces such
as Ho Chi Minh City and Ho Chi Minh City. Ho Chi Minh City, Hanoi, Binh Duong,
Dong Nai, Khanh Hoa, Da Nang, Lam Dong, Can Tho, Nghe An. i. Direct distribution
Mix Berry Berry Yogurt will still be sold at flagship stores nationwide. In
addition, customers can also place orders through Phuc Long's main website. 17
Direct distribution channels help the company understand the needs and tastes
of customers. Work directly with customers when they have requests, complaints or
desires with the product that the company is providing.
ii. Indirect distribution
In addition, Phuc Long will expand distribution channels. Customers can buy
products through e-commerce channels such as Shopeefood, Grabfood and
Foody, ... - where there are potential buyers in the market segment that Phuc Long targets.
e) Marketing communication strategy i. Target audience
Our target audience is Gen Z, specifically children aged 10 to 12 and young
adults aged 19 to 25 (they can also be parents of kids). ii.
The communication objective
Through this advertisement, we will bring basic information about the product
to customers. Customers will know the presence of new product lines, launch time and
official sale date. even the belief in the values that we bring. With running ads
continuously for 3 months in summer, customers will probably remember this product
line first when they think of summer drinks. iii. Message
Choose message content: "Drinking Phuc Long Yogurt is not only a delicious
beverage, but also a drink for health" encourages customers to buy this
product because it can satisfy their refreshment needs, as well as providing nutrition. iv. Social media
Tiktok and facebook take first and third place respectively. So this is the
fastest way to reach customers, because this is the industrial age 4.0, everyone
is exposed to social media from an early age, especially children. 18
Through advertising on social networking platforms, tiktok, website, delivery
app. With the content is an eye-catching image of the new product line (the
product illustration shows the characteristics of fresh and delicious
ingredients), along with the name of the product line, and the slogan "Yogurt
phúc long, uống vui sống khỏe, mát mẻ cả mùa hè”we can fully expect a great
success for this product this time. f) Marketing research
To support a marketing plan conveniently and effectively, it is important to have
information about a particular market segment or customer preferences to support the
action of the plan. Studying the plan helps shape the business plan and avoid costly
mistakes. First, a secondary study was conducted, based on data on the beverage
market in Vietnam, on competitors and the many reports available on the market on
the Internet. Although secondary research is less expensive, the accuracy is not as
high as secondary research. Secondary research reveals market trends in the beverage
business and the type of product that customers are looking for.
The primary research conducted was interviews with the Phuc Long marketing team.
This survey is designed to get clearer consumer behavioral patterns and preferences,
such as fruit yogurt drink consumption, preferred flavors, and in addition, to test the
acceptance Mix Berry Berry Yogurt, by asking if interviewees have the potential to
buy a product with these benefits, the importance of each benefit, and the right price
for the product. Phuc Long will monitor online customers' attitudes and behaviors
through reviews and comments on social networking platforms. In this way, the
company knows about brand awareness, product and customer satisfaction. These two
approaches provide an overview of the market and the information needed to support business decisions. 6. Action programs
June: Poster design with cool colors, accompanied by information, eye-catching images
of the product, and the slogan "Yogurt Phúc Long, uống vui sống khỏe, mát mẻ mùa hè"
clearly shows the message of drinking happy yogurt Phuc Long is not only a delicious
beverage, but also a drink for health. 19