MKT1ADD: Phuc Long Business Strategy Assignment PDF 2022

3. Current marketing strategy and marketing mix of PhucLong
1. Primary activities
- Inbound logistics:
+ Supplier: Suppliers are important links in the supply chain of businesses. With Phuc Long, tea
and coffee are the main ingredients. With tea, the company selected scrumptious young green
tea buds taken from their own tea hill in Thai Nguyen. With coffee, the company chooses
premium Arabica coffee beans to prepare for its products. Raw materials are selected through
strict inspection and handling processes to ensure consumer quality and health. With the
advantage of owning a system of tea plantations, farms, factories, dispensing places and shops,
Phuc Long's raw materials are always guaranteed in both quantity and quality, helping the
company have many advantages.
+ Storage: After the harvest of tea and coffee, the material will be preserved in storage. In here,
a series of strict requirements are made. Employees are required to carefully inspect the source
of raw materials and remove tea leaves that are crushed, withered and absolutely free of mold,
with coffee beans that must dispose of poor quality coffee beans because it may affect quality of
the whole shipment. Tea and coffee must be stored in a cool, dry place and the moisture must
be checked regularly because if the humidity is too high, it will make the tea more susceptible to
mold quality.
- Operations:
Production of raw materials and conversion of input materials into products is the main activity
of Phuc Long. Tea leaves are grown by Phuc Long in Phuc Long tea hill in Bao Loc & Thai Nguyen
and cared for by a very strict process, ensuring clean requirements are no pesticides and no
growth stimulants. Tea leaves and tea buds are required to be rigorously selected, harvested
according to techniques that are not crushed. After harvesting the tea leaves will have to go
through the drying period to prevent the fermentation of tea leaves. After being processed, tea
leaves will be carefully packed into aluminum bags or boxes and stored in Phuc Long's storage.
The storage process is strictly inspected to ensure product quality. (Phuclong.com)
Because Phuc Long has 2 fields of activity: producing and exporting packaged tea and coffee
products and catering services at the store system, material tea bags will be distributed to Phuc
Long’s branches and chain store or export according to order requirements.

- Outbound logistics:
+ When there are orders, Phuc Long staff will prepare orders according to customers' requests
and deliver them directly (when customers buy directly at the store) or indirectly (when
customers buy online, Phuc Long will deliver the goods to the carrier) to the customer.
+ To ensure product quality, Phuc Long's packaging is designed with a special liner with one-way
valve to drain water and keep the freshness of the product.
- Marketing and Sale:
Phuc Long did not invest too much in marketing before. Phuc Long's brand promotion channel is
mainly word of mouth advertising based on guaranteed raw materials, high product quality and
good customer service. But with the development of the tea and coffee industry, competition is
increasingly fierce, so Phuc Long forces mines to change and focus more on marketing and sales.
Phuc Long focuses on social media marketing such as Facebook, YouTube, and Instagram with
the investment in content in each article. Besides, in order to serve the needs of customers,
Phuc Long also expanded the system chain. Specifically, from the beginning of 2019 to the
present time, Phuc Long has opened 3 stores in different districts in Hanoi to serve the needs of
large customers in here. In the opening day, Phuc Long launched a lot of programs to give gifts
to customers, including porcelain cups, red envelopes, multi-purpose shelves ... In addition, to
meet customers' online purchase needs, Phuc Long also cooperates with delivery applications
such as Delivery Now, Grab Food, ... to bring convenience to customers.
On the Phuc Long Coffee & Tea fanpage, the chain announced that it had opened its first store in
the US. According to the introduction, the chain has officially served at Phuc Long USA store this
July 2021 in Garden Grove, California, USA
Phuc Long chose to approach the US market by bringing the taste of his homeland to the
Vietnamese living in the US first. Then it transmits it to the local people
- Services:
Phuc Long always strives to bring customers the best service and quality experience. Customers
can exchange with businesses via hotline phone numbers or via Website, Email or Facebook.
2. Support activities
- The infrastructure of firm: With Phuc Long, infrastructure is always focused. Phuc Long often
selects large & special locations and most of them are located in major roads and city centers to

attract a large number of customers.
 Infrastructure of Phuc Long is always focused and it supports many other activities in Phuc
Long. With Inbound logistic, infrastructure activities supporting storage of raw materials by
building factories and warehouses and advanced equipment. With Marketing and sales
activities, Phuc Long has started to invest more in advertising activities. Besides, Phuc Long
often selects nice locations in big cities, invests in uniforms for employees along with a
formal training process to bring satisfaction in service quality for customers.
- Human resource management: Phuc Long has a young and well-trained staff right from the
beginning. Besides, Phuc Long also owns a team of consultants to run and create the best
working environment for employees.
 With an experienced staff and strict management, Phuc Long's employees are the main
source to support most of the company's activities. With Inbound Logistic activities, human
resources support in receiving and storing raw materials and managing them according to a
strict requirement. During Operations activities, people play a role in managing processes
until the product is formed or managing different supply chains within the system. Human
resources also support Outbound Logistic through product quality management and
distribution channels management. With Marketing and Service activities, human resources
play a role in creating ideas and plans to promote the brand and attract more potential
customers.
- Technology development: Information technology plays an important role in helping Phuc Long
manage customer information as well as managing and synchronizing branches. By using data
networks, Phuc Long can synchronize information between branches, branches can share data
to manage a comprehensive supply chain. In addition, Phuc Long also applies information
technology to expand sales channels, customers can put Phuc Long tea and coffee through food
apps or through the company's website.
 Phuc Long uses information technology to support his Operation activities through the
synchronization of branch chain information, thereby making it easier to manage branches.
Besides, providing free wifi system and order via app or social network also helps Phuc Long
meet customer needs and support their Service activities and Outbound logistics

- Procurement: Because Phuc Long's material source is taken from their own tea hill in Bao Loc, so
it is easier for Phuc Long to produce, pack, transport and distribute to branches. Other materials
such as sugar, milk, cakes, ... all have abundant domestic supplies, so finding other materials
with Phuc Long is not too difficult.
 Phuc Long should develop its own strategies for partners to improve relationships with
suppliers to get good prices and products, support for Operating activities.
 After analyzing Phuc Long's value chain, the report will point out Phuc Long's core
competencies to help them turn them into competitive advantages for businesses.
 Modern technology.
 Strong financial capacity.
 Large distribution channel in big cities.
 From analyzing the value chain of Phuc Long, the report will assess the strengths and
weaknesses of the business, thereby helping businesses improve their strategy in the
future.
Having been present in the Vietnamese market for a long time, Phuc Long always knows how to change
and break the way towards modern beverage trends. With theirs smart marketing strategy, Phuc Long
has become the Big 3 in the coffee industry in Vietnam with Hightland coffee and Starbucks.
3. Unique Selling Point! ( USP)
Phuc Long has affirmed its brand by turning itself into a beverage with a distinctive flavor,
different from existing drinks but still imbued with traditional Vietnamese flavors.
To do that, Phuc Long owns many tea hills in Thai Nguyen - this is the strength that helps
this coffee company compete in terms of taste, appearance, and the local typical tea water
here always keeps the "quality". ".
It can be said that Vietnam is one of the famous countries for tea. Therefore, the taste of
Vietnamese people on this food group has also become more demanding and strict than
common sense.
Besides, Phuc Long's customers are mainly female, so the company focuses on healthy teas.
In addition, low-sugar, fat-reducing drinks are also considered by the company.
Price