Comprehensive Analysis of Phuc Long's Marketing Strategy and Mix

This report provides a comprehensive analysis of Phuc Long's current marketing strategy and marketing mix. It begins by examining the company's primary activities within its value chain, including inbound logistics, operations, outbound logistics, marketing and sales, services, and supporting activities such as infrastructure, human resource management, technology development, and procurement. The report then delves into Phuc Long's core competencies, including modern technology, financial capacity, and distribution channels. Further, it assesses Phuc Long's unique selling proposition (USP) centered on distinctive flavors and traditional Vietnamese elements. The report also explores Phuc Long's pricing strategy, product offerings, and place strategy, highlighting its expansion and presence in key locations. The report concludes with a SWOT analysis, identifying Phuc Long's strengths, weaknesses, opportunities, and threats to inform future strategic improvements.

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

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 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 selling price
of Trung Nguyen and 30 - 50% of Starbucks, The Coffee Bean, and Tea Leaf.
Currently, the "comfortable" price is one of the ways to help Phuc Long bring its brand to all
consumers in the fastest way.
Product
The 13 types of tea that make up the brand of Phuc Long. With coffee-flavored drinks,
outstanding drinks can be mentioned such as caramel coffee, rich milk, cappuccino, vanilla
coffee, mint iced coffee, etc. In addition, tea dishes are also popular with young people such
as peach tea. milk, red tea, Tieguanyin tea, lotus tea, rose tea, jasmine tea, litchi tea,green
tea,......
The diversification of beverage products is not limited to teas, which has opened up more
choices for Phuc Long's customers. In addition, it also makes Phuc Long more accessible to
women to add more nutritious tea products for health and beauty.
Place
To be able to increase the sales advantage. Phuc Long is not afraid to hunt for hot places in
the center of big cities to have a good selling place.
Within two or three years of his revolution. Phuc Long has extended its branches to be
present in most crowded locations in many cities, directly competing with big brands such
as Starbucks, hightland, etc. The first Phuc Long store in the US is located in Garden Grove,
California.
4.SWOT
1. Strength

IV. SWOT
1.STRENGTH
a. The price of Phuc Long is attractive and cheap compared to USA's
income and US competitors
On any given day, Tea consumption in the US is considered quite high with
over 159 million Americans drinking tea, this means more than one-half of
the American population drinks tea. In 2019, the US consumed over 84
billion servings of tea or more than 3.8 billion gallons. In terms of US
income, American people earned an average of 65,280 dollars in 2019 and
63,544 in 2020. Compared to GDP in the US, the price in Phuc Long is quite
attractive for people. Especially during the Covid-19 pandemic, the Income
of American people decreased similar 2.73%, so the product’s Price is
suitable for people when their spending is cut down quite a lot.
Phuc Long has an advantage in price compared to its competitors in the US.
According to data in a website realmenuprices.com, the Price of Starbucks is
from 2 to 6 dollars and Dunkin’ Donuts from 1.6 to 5 dollars. Nowadays, the
Price of tea products in Phuc long range from 25,000 to 65,000 VND which
is equal to 1 to 3 USD. The price is evaluated as cheaper and more
competitive than other drink brands in the USA such as Starbucks, Dunkin’
Donuts, Peet’s Coffee and Tea. With strength related to price, Phuc Long
will attract and conquer all people of every segmentation.
b. The diversity of Phuc Long’s product and flavor
The variety of Phuc Long tea products is aimed at many customers in the US
market. for the fast lifestyle of the American people, customers that they do

not have time for using tea in-store because of busy work. With people tend
to use tea at home and enjoy a relaxing moment with a cup of tea they make
themselves, Phuc Long design take away tea bags and self-brewed tea bags
with 10 different flavor such as black tea, lotus tea, oolong tea, peach tea,
litchi tea,...
Creative in Phuc Long’s Tea Products create more opportunities for the
customer to enjoy the variety of flavors that help choose their own favorite
drink. Besides, Phuc Long creates menus in line with prevailing trends that
attract more customers. Brand awareness must have been developed and
gained a high position in the F&B industry.
c. Design of Phuc Long’s Stores are comfortable, delicate and elegant
America is famous for being a free but private country. That is also reflected
in the way Americans drink tea and coffee. They need a space that is
comfortable but also values their privacy. In addition, Americans often like
designs that clearly show simplicity, personality, and are optimal for daily
life. No fancy, no-frills, not too many fancy details.
With the main colors are wood brown, yellow, green, Phuc Long’s design
store aims for a cozy and delicate style. The space is designed with simple
decoration details but not boring and monotonous. Phuc Long focuses
mainly on the design of tables and chairs. Phuc Long's furniture system is
quite diverse and rich, mainly tables and chairs with wooden chairs, sofas,
wooden tables, black stone tables, and chairs. tables is decorated with potted
plants for extra highlights and creates green space in the store. The design
brings a lot of convenience to customers. Phuc Long tables and chairs
always have different designs and sizes to suit each customer group. The

long tables, large round tables are suitable for groups of 10 or more people.
There are small single tables in areas with quieter spaces suitable for
customers who come here to work. And although the number of tables and
chairs in the interior space is quite large, each table still has a separate
distance from each other to ensure the necessary privacy for customers. Base
on a store layout and design, Phuc Long responds to the culture and
personality of Americans when choosing a beverage shop.
d. Autonomy in high quality raw materials and production
Phuc Long tea is sourced from two tea plantations owned by the brand in
Thai Nguyen and Bao Loc - these two places are also considered to be
mixed territories of Vietnam. Phuc Long tea has premium characteristics
from the aroma, taste to richness. Besides, raw freshness is an important
factor to evaluate the quality of tea. Therefore, in order to preserve the

original freshness, Phuc Long has built factories in two tea hills, ensuring
that the tea is dried immediately after harvesting. In addition, Phuc Long
invests in tea processing factory in Binh Duong, which is equipped with
many modern equipment and machines. Phuc Long has HACCP certification
- a process that ensures food safety and hygiene standards. With serious
investment in production and the goal of ensuring the supply of high-quality
products, Phuc Long not only has served the domestic market but also fully
met the standards to be present in fastidious markets such as the US.
Besides, the autonomy in raw materials and production is one of the
advantages for the company to avoid the bargaining of other suppliers. Raw
materials are produced by themselves without depending on and going
through any suppliers that make the price pressure relate to suppliers is non-
existent.
2. WEAKNESS
a) Design packaging products still not attractive
Although Phuc Long has many types of tea, the design of packaging still
does not delight and impress, especially in tea bag products. For the

customer who wants to buy Phuc Long’s products as a present, lacking
creativity in design is a big minus point in the eyes of the customer. This is
one of the reasons will make revenue in packaged tea will decrease.
Nowadays, the Aesthetic factor is considered to be one of the important
factors for customers to decide to buy a certain product or not. Currently,
Because of Covid-19 effects, customers tend to shopping-online and they
just only see your product through the screen. If the packaging of the brand’s
products is designed cursorily, the company's products will be ignored.
b) Marketing activities have not been focused on development.
The large US market makes Phuc Long confused in finding a reasonable
marketing policy for the brand. Marketing activities need to be more
focused to increase the brand identity of domestic and foreign customers.
Statistics have shown that: Marketing will help maximize the number of its
customers. A well-known brand through marketing activities is a good
premise for businesses to attract more customers or even break through
their revenue. Besides, not only attract potential customers, but also use
Marketing as a tool to retain customers. Then, you can be strong and
competitive with competitors in the market.
Use Marketing as a channel of information to customers. Information
about products, services as well as highlights, if conveyed to customers in
the best way through affordable marketing, will gain more customers' trust
in businesses, products and services. . Therefore, any business cannot
ignore this effective information channel.
The lack of a reasonable marketing policy has made Phuc Long more
disadvantaged in approaching customers for other brands
c) Accompanied Service and contact to media to promote are rarely
and not good

In the F&B industry, Accompanied Services and Products play an important
role to attract consumers besides the quality factor. Although the designs in
the store have also been created for the best customer experience such as
electric sockets designed right under the table or there will be seats to wait
when customers wait for their takeaway,… but Phuc Long still have
disadvantage relates to parking, ordering space and takeaway space,
Promotions or gift products, souvenir.
Some customers who had experience in Phuc Long complained about the
parking space of Phuc Long stores. The customer thought that the lack of
parking space when enjoying drinks at the Phuc Long store was very
inconvenient. if parking in the store was full, they lost time when they had to
find parking, or sometimes the parking space was quite far and they "had to
walk on foot" from the parking lot to the store.
In addition, the Order area and take-away area in Phuc Long are still narrow.
Nowadays, In the Pandemic period, customers are encouraged to take-away
instead of using directly. If the space is not enough for serving numerous
customers, customers will feel uncomfortable with the service that affects
the brand image.
Promotions to attract customers are few and have not been implemented
much to promote business. The mini-games with gifts for marketing and
promotion are not elaborate and caring in service such as some customers
explained that they did not receive the gift when they joined the mini-game.

3. OPPORTUNITIES
a. Technology development strengthen the online channel and revailing
cost structure
The development of information and communication technologies has led
towards the adoption of innovative marketing techniques to enhance
collaboration with customers. Use of social media has become common in a
modern business environment. Phuc Long can take the advantage of social
media marketing to improve business performance in United States.
Technological trends can be used to start the creative social media
campaigns for developing online brand communities. Phuc Long needs to
consider how new technologies influence the firm’s value chain and
prevailing cost structure. Research and development activities are highly
important in an environment characterized by creative. In such an
environment, Phuc Long should invest in disruptive technologies to
maximize the profits and re-invest the profits for future disruptive
technologies.
b. United States is World’s Largest Market World’s Largest
Market

The United States offers the largest consumer market on earth with a GDP of
$20 trillion (GDP growth can accelerate if more people enter the labor force,
more capital is injected into the economy, or the existing labor force and
capital stock become more productive) and 325 million people. Household
spending is the highest in the world, accounting for nearly a third of global
household consumption. At the same time, free trade agreements with 20
other countries provide enhanced access to hundreds of millions of
additional consumers – and the United States continues to work with
companies to increase opportunities for U.S. exporters. In addition, U.S is
consistently ranked among the best internationally for its overall
competitiveness and ease of doing business. As a stable democracy with a
transparent and predictable legal system, all companies – regardless of
national origin – compete on an even playing field.
The economic developed of a country directly affects the operation of the
organization which offers extensive development opportunities for Phuc
Long because leads to increase consumers spending and this also is a good

sign for countries that export products to the US in general and for
Vietnamese tea exports in particular.
c. Tea drinking culture of United States
The U.S. market for tea has more than quadrupled during the past twenty-
plus years—from just under $2 billion in 1990 to just over $10 billion last
year—according to the U.S. Tea Association. Demand for the herbal
beverage has now been growing at a healthy clip for decades. By weight,
Americans now drink almost 20 percent more of the herbal beverage than
they did back in 2000, according to market research firm Euromonitor. As a
result, tea imports, to the benefit of major tea producing nations like China
and India, are soaring—they have grown by roughly 40 percent over the past
10 years, nearly 70 percent over the past 20 years, and more than 700
percent over the last 50 years, according to data from the U.S. Department of
Agriculture.

Tea has infiltrated most Americans' everyday routine. Some 80 percent of
U.S. households have tea in their kitchens, and more than half of the
American populace drinks tea on a daily basis, according to the U.S. Tea
Association. Therefore, United States is a potential market with great
demand for import and consumption, very suitable for penetration and long-
term development. American people use tea as an important drink in their
life. This is rate as a great opportunities for Phuc Long to enter the tea
market in the U.S.
4. THREAT
a. Coronavirus ( Covid 19) lead to United States’s economic recession
and change the habits of almost people
Phuc Long’s profitability could be threatened by the economic downturn
caused by covid 19 from 2019 up to now. When consumers have reduced
incomes, they will cut down their budget for unnecessary things like buying
drinks (Tea, coffee) or hanging out. Experts are predicting the on going
recession would be worse than previous economic downturns. Phuc Long
revenue has already dropped. Compared to last year, the revenue of 2020 is
down by 28% due to pandemic. In addition, during the epidemic period, the
United States government encourages people to limit gathering. This
changes the habits of almost people not go out and stay at home.
b. High competition in F&B industry in United States
The competition in the F&B industry in United States has increased
significantly lead to fierce competition. The United States is well-known for
producing big coffee and tea shop brands and that it is very difficult for a

brand from Vietnam like Phuc Long to enter the US market because
customers already have a lot of quality and familiar choices. If Phuc Long
can exploit the use of e-commerce and social media to reach its customers,
most of its competitors can too. The aggressive competition with
multinational companies like Starbucks, COCO FRESH TEA & JUICE and
Share tea can also pose a threat to its target customer.

c. Strict and diverse regulations of United States
The issue of United States government regulations is also a matter of
concern for companies such as Phuc Long. The regulation for a business
varies by state, and sometimes even by city. All 50 states have their own
rules and regulations. It can be a challenge to determine which state of
incorporation provides tax or commercial benefits while decreasing legal
exposure for a particular industry or type of business. States like Wyoming
and Nevada are rising in popularity due to their lack of state corporate
income tax. Entities need additional registrations in each state in which a
legal or physical nexus is established. Ultimately, an entity will need to
remain complaint in all states in which it operates.
The fast changing government regulations especially those related to tax or
labor such as labor relations laws, non-discrimination laws, employee
benefit laws or food safety and environmental concerns warrants operational
and management changes that could be costly and complicated to the firm.
Moreover, the US is also known as a very expensive country, so finding
quality premises and hiring staff as process required of U.S is a big
challenge for Phuc Long's finances.