THE UNIVERSITY OF ECONOMICS HO CHI MINH CITY

COLLEGE OF BUSINESS
FACULTY OF INTERNATIONAL BUSINESS AND MARKETING
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Subject: Principles of Marketing – DH49MR0001

Project: Marketing plan for a business in 2024

MARKETING PLAN FOR

PHUC LONG PRODUCT
LINE - ‘COFFEE4HEATH’
Group 4:

1. Phạm Văn Nguyên - 31231025871

2. Trần Công Tú – 31231026337
3. Lê Thị Thiên Nga – 31231026301
4. Huỳnh Hoàng Vũ - 31231026251
5. Nguyễn Phương Thảo Trinh - 31231021819

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 LEVEL OF CONTRIBUTION
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NAME LEVEL OF CONTRIBUTION

Phạm Văn Nguyên 100%
Trần Công Tú 100%
Lê Thị Thiên Nga 100%
Huỳnh Hoàng Vũ 100%
Nguyễn Phương Thảo Trinh 100%

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 TABLE OF CONTENT
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ACKNOWLEDGEMENT 4
INTRODUCTION 5
CONTENT 5
1. Executive Summary 5
2. Current Marketing Situation 6
2.1. Overview of Phuc Long Coffee & Tea 6
2.1. PEST 8
2.2. Market description 10
2.3. Product review 11
2.4. Competitive review 13
2.5. Channels and logistics review 14
3. SWOT 14
4. Objectives and Issues 15
4.1. 1st year 15
4.2. 2nd year 15
4.3. Issues 15
5. Marketing Strategy 16
5.1. Positioning 16
5.2. Product strategy 16
5.3. Pricing 16
5.4. Distribution strategy 17
5.5. Marketing communication strategy 17
5.6. Marketing research 18
6. Action programs 15
7. Budgets 20
8. Controls 20
PREFERENCES 21

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 ACKNOWLEDGEMENT
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First of all, we would like to sincerely thank Mr. Ho Xuan Huong - Lecturer of the basic
Marketing module for his dedicated guidance to students during the past time.
Next, I would like to send my gratitude to the teachers of Ho Chi Minh City University of
Economics - Those who have also contributed to imparting knowledge to help us learn
today's lessons. Coming to a new learning environment, a city completely unfamiliar to
me, we sincerely thank you for this learning opportunity. We also appreciate and thank
you.
And with all our efforts, we need to try even harder. We realize that with the little amount
of knowledge we have, this essay will not be complete. I hope you will sympathize and
give me feedback so I can learn from your experience!
We sincerely thank you.

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 INTRODUCTION
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Vietnamese Flavors, Caffeine-Free Breakthrough
When it comes to coffee, Vietnamese flavors are not only a rich beauty but also a lasting
part of culture. Phuc Long, a leading name in the tea and coffee industry, is now sparking
a journey full of passion and a breakthrough - caffeine-free coffee.

Starting in 1968 in the Bao Loc tea plateau, Phuc Long is not only a pioneer with creative
ideas but also a symbol of quality and class. With more than 50 years of caring for each
premium green tea bud and coffee bean, we bring the most valuable experiences for tea
and coffee lovers to enjoy.

But now, we expand our horizons with a bold innovation - Caffeine-free coffee. We
believe that it is not only the wellness consumer who can enjoy the delicious taste of
coffee, but also everyone who is looking for a new, special coffee experience and at the
same time does not want to imbibe caffeine.

With enthusiasm and passion for "Quality comes from passion", Phuc Long launched a
communication strategy not only about new products but also about a new perspective on
coffee. We not only provide a product but also an experience, a change in the world of
Vietnamese coffee.

With an innovative vision, we continuously invest in our tea and coffee processing
platform in Thai Nguyen, keeping our quality intact and at the same time ensuring strict
standards when exporting. We are proud to bring Vietnamese flavors to demanding
markets such as the US, Japan, Indonesia, and the Philippines and now it is time for us to
set an important step in our home country, Vietnam.

Our caffeine-free coffee is not only a new product but also a big step forward in meeting
the diverse needs of Vietnamese consumers. Join us, Group 04 - class MR0001 to start
this journey, not only a change in coffee but also an innovation in feeling and experience.
Phuc Long - Elevate the flavor, a cup of decaf coffee at every table!

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 CONTENT
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1. EXECUTIVE SUMMARY

Phuc Long Coffee & Tea plans to launch a low-caffeine coffee product line, using Decaf
coffee as the main ingredient, in 2024. Vietnam is a market that is quite demanding when
it comes to coffee taste, and at the same time, high competition is also a big challenge for
the campaign. Vietnamese people have a long-standing coffee culture, with coffee being
associated with stimulating the nervous system and helping to stay alert. Therefore,
introducing a low-caffeine coffee line to the Vietnamese market poses many challenges.
Many businesses sell Decaf coffee, but they have not been strongly promoted. In this
campaign, Phuc Long Coffee & Tea wants to conquer the market and impress customers
with the health benefits and unique flavor of Decaf coffee beans developed by Phuc Long
Coffee & Tea. Phuc Long Coffee & Tea targets Gen Z and Millennial customers - the
main target customers currently and increasingly concerned about health issues,
especially those who are allergic to caffeine and have other health problems. The
campaign is positioned with the slogan “Enjoy Taste, Enjoy Life”, not only introducing
the Phuc Long Decaf coffee product line to the market but also conveying the message
that customers need to pay more attention to their health.

The goal of Phuc Long Coffee & Tea in 2024 is to raise brand awareness, and product
awareness, and achieve revenue (exclusively decaffeinated coffee) of about 236,8 billion
VND, about 15% of its total revenue in 2022.

2. CURRENT MARKETING SITUATION

2.1. Overview of Phuc Long Coffee & Tea

Phuc Long Coffee & Tea is one of the giants in the tea and coffee business in Vietnam.
The brand was born in 1968 in the Bao Loc tea plateau, Lam Dong with the expectation
of bringing quality tea and coffee products. Phuc Long has expanded its business
operations from producing and retailing tea and coffee to serving high-end tea and coffee
drinks at Phuc Long Coffee & Tea stores with a self-service model in modern spaces.
Phuc Long is considered one of the Big3 in the Vietnamese tea and coffee market. It is
known as the “king” of tea with the art of refining tea flavors in each drink. Phuc Long is
a rare Vietnamese brand that has conquered the most demanding markets such as the US,
Japan, Indonesia, and the Philippines.
Phuc Long Coffee & Tea stores are located in the most prime locations in Saigon and
Hanoi, selling many high-quality coffee, milk tea, and drinks at prices 30-50% cheaper
than Trung Nguyen, Starbucks, The Coffee Beans & Tea Leafs…If compared to the
market, Starbucks, The Coffee Beans & Tea Leafs mainly sell to high-income office

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workers who are familiar with foreign tastes. Trung Nguyen focuses on the target
audience who love the taste of Vietnamese coffee. Meanwhile, Phuc Long targets a more
diverse customer base, including office workers, students, and pupils. The affordable
price is an important factor that helps Phuc Long bring its brand to all consumer groups
in the fastest way.
Phuc Long Coffee & Tea develops products with the principle that Phuc Long flavor
must be unique, distinctive, and different. From there, it builds a drink brand that is
“expensive and worth it”. The tea flavor must meet the strict and demanding taste of
Vietnamese tea lovers. It is both modern and rich in traditional flavors. Without
following the beaten path, this brand leaves a strong impression on users’ minds when
clearly defining its direction. That is a strong emphasis on the taste and quality when
enjoying the product. Carrying within itself the DNA of the tea business philosophy, it
firmly reinforces the upcoming steps of this brand. This correct choice has helped Phuc
Long conquer the diverse target market with a wide range of customers. Anyone can
enjoy and feel the most familiar taste of the drink.

Phuc Long’s Vision, Mission and Core Values are:

VISION
1. With the desire to continuously expand the market and achieve sustainable
development, Phuc Long strives to become a company specializing in producing and
exporting high-value tea and coffee in Vietnam.
2. Phuc Long aims to create a Vietnamese brand with class and quality that is reflected
in each product, thereby gradually asserting its position in the international market.
MISSION
1. To become a pioneer of the era with innovative ideas leading the tea and coffee
industry.
2. Together, make the brand shine, motivate each other, turn ideas into reality with a
spirit of connection, interaction, listening, and respect.
3. To create joy and affection for customers, each of us must constantly shine. Do not
let your own abilities fall asleep, constantly challenge difficulties, and always renew
yourself.
4. Create high value with understanding, empathy, and truly valuable proposals,
satisfying customer satisfaction.
CORE VALUES
1. For customers: Commitment to providing the best quality products and services.
2. For employees: Building a professional, dynamic, creative, and humane working
environment, creating conditions for high income and fair development opportunities.
3. For society: Harmonizing business interests with social benefits, actively contributing
to community-oriented activities, demonstrating a sense of responsibility to society.

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With strengths in tea and effective marketing strategies, Phuc Long Coffee & Tea is
gradually moving towards the Top of Mind position of Vietnamese people. However,
with the development of a new coffee product line in the Vietnamese F&B market, which
has many big competitors, Phuc Long Coffee & Tea needs to analyze the aspects and
prepare specific plans.

2.2. PEST

2.2.1. Political

The political situation in Vietnam is considered relatively stable, making it an ideal

market for businesses to invest, operate, and develop with confidence. Regulations on the
safety and quality of branded products have helped to control counterfeit goods, giving
reputable brands an advantage in the market. Import tariffs also directly affect the
competitiveness of domestic products compared to imported goods, requiring domestic
manufacturers to have appropriate pricing policies. With policies that facilitate the
development of the service industry, our government has been and is making efforts to
restore the economy after the pandemic, making business legal work easier than ever.

2.2.2. Economic

Vietnam has never had such a stable and solid position as it does now. Despite the impact
of the COVID-19 pandemic, in 2020, the scale of Vietnam’s economy reached about 343
billion USD, ranking in the top 40 largest economies in the world and fourth in ASEAN.
The average GDP per capita was 3,521 USD, ranking sixth in ASEAN. The average
income has increased, driving up consumer spending, not only on essential food products
but also on food industry products. The growing market scale is also an opportunity for
domestic manufacturers such as Phuc Long to expand their business scale and meet
customer spending needs. Despite the general situation globally and the serious impact of
the pandemic on all industries, coffee and tea products are still popular among
consumers. According to Business Wire, the total revenue of the coffee and tea industry
is predicted to recover at an average annual growth rate of 9.0% and reach 191.1 billion
dollars in 2023. It is estimated that the total consumption of tea and coffee in Vietnam is
about 2.3 billion USD, expected to grow by more than 10% per year. Among them, the
retail chain of tea and coffee shops with brands accounts for only 25%, including large
brands such as Highlands Coffee (over 300 stores), The Coffee House (over 150 stores),
and Starbucks (over 70 stores). This means that if Phuc Long can diversify its customer
approach, it will be easier to attack the remaining 75% market share.

The consequences of the war from Western countries have also contributed to the market
volatility when the state continuously changes the tax and price of key commodities such
as gasoline (changed 16 times in a year, gasoline prices increased by 51.83%). This has
led to high inflation, making customers consider their purchasing decisions.

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In addition, the high oil prices have impacted costs such as transportation, distribution of
goods for businesses, ordering costs, and fees applied on food delivery platforms
(Grabfood, ShopeeFood, etc.), causing purchasing decisions to be disrupted.

2.2.3. Social

Vietnam was introduced to coffee in 1857 when the French army was stationed here.
Since then, growing and consuming coffee has become a local cultural feature.
Nowadays, young people such as teenagers and office workers are more familiar with
instant coffee. However, more and more people from different segments are using instant
coffee instead of drip coffee for time-saving and flexibility.
In reality, Vietnamese people tend to enjoy coffee more. It can be easily observed that
from street coffee shops to top coffee shops in Vietnam, strong-tasting coffee is often
served to foreigners, and new strategies are being developed to adapt to local needs. For
example, the menu of The Coffee Beans & Tea Leaf and Starbucks focuses on adjusting
the organizational culture and drinks to suit the taste of Vietnamese people.
In addition, Vietnam is a country with a strength in green tea, especially in the two
provinces of Thai Nguyen and Lam Dong. Phuc Long owns 2 tea hills in Thai Nguyen
and Bao Loc, turning these places into a source of quality and safe raw materials.
Drinking tea is a long-standing tradition in Vietnam, so it can be said that the habit of
enjoying tea by customers is somewhat more demanding.
With the desire to preserve Vietnamese cultural features such as fragrant tea and strong
coffee, as well as understanding customer needs, Phuc Long is increasingly developing
its product lines, while ensuring product quality always leads the market.

2.2.4. Technological

Technology is increasingly developing, and the product life cycle tends to be shorter.
People always demand something new and better. It is also a condition and a challenge
for businesses to constantly approach, learn, and absorb new technologies, applying them
to create new products that are suitable for each season of the year. Moreover, with the
development of Industry 4.0, a series of utilities have been created, such as remote
payment for online shopping, which helps users buy desired products at home.
In addition, digital media is an opportunity for businesses to promote, advertise brand
images, increase awareness, customer perception of the brand, and enhance
competitiveness for Phuc Long. The strong development of technology has diversified
the way customers buy goods, thereby promoting the development of goods and products.
This is also an opportunity for Phuc Long to grasp and develop its business.

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2.3. Market description

The F&B industry is a dynamic industry with a lot of potential for growth. At the same
time, it is an industry that constantly witnesses changes in food and beverage trends. For
example, in Vietnam, recent food and beverage trends include chicken salad with young
bamboo shoots, passion fruit tea, coin-shaped cakes, and most recently, hand-squeezed
lemon tea, which have attracted a lot of attention in the mass market segment of the F&B
industry. However, these trends usually do not last long due to the ever-changing tastes of
customers. Many small F&B businesses take advantage of these trends to increase sales.
However, for large F&B companies, a specific, flexible, and long-term effective strategy
is needed to adapt to the continuous changes in customer preferences.

Vietnamese people are spending more and more on drinks, with a 6.6% increase in 2021.
It is predicted to increase by 10% by 2025. In addition, according to Statista, the revenue
of the F&B industry in Vietnam reached USD 200 billion in 2019, an increase of 34.3%
compared to 2018. It is forecasted that by 2023, revenue will reach USD 408 billion. The
market is becoming more and more vibrant, and the continuous expansion of customer
bases shows the outstanding potential of this market niche.
Tea and coffee lead the beverage business. “Big players” such as Starbucks, Gong Cha,
Royaltea, The Coffee House, Highlands… are constantly expanding and developing their
systems. At the same time, they are implementing many innovative policies to compete
with other brands. According to the Ministry of Planning and Investment, there are
currently more than 26,000 coffee shops and 1,500 milk tea shops with over 100 brands
nationwide. After Covid, brands in this industry are increasingly recovering.

After the Covid-19 pandemic, the period of 2019-2020 was a time of explosive buying
power when it was suppressed for a long time by social distancing. The new economic
recession has significantly affected the current purchasing power of consumers, indirectly
affecting the F&B industry. However, the overall picture of the F&B industry in Vietnam
is not all gray. Despite the global economic recession, the food and beverage (F&B)
market in Vietnam is rapidly expanding with the leading chains. Financially strong
businesses with large resources such as Katinat Saigon Café, Phê La, Mixue, Trung
Nguyên, Highlands… are taking advantage of this opportunity to expand their scale
nationwide. Accordingly, the number of KOLs and influencers working in this industry is
also increasing rapidly, with prominent figures such as Ninh TiTo, Khoai Lang Thang,
Pít Ham Ăn, etc.
Despite the risks posed by the economic recession, the F&B industry in Vietnam still has
outstanding potential for development in the coming years. One of the reasons explaining
this is the rapid growth of the middle-aged population, young people whose income is
increasingly improving. This is the main customer group of F&B businesses. The end of
the pandemic period also witnessed the return of the tourism industry. Foreign tourists

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contribute greatly to the revenue of the F&B industry in Vietnam. In addition, there is a
source of domestic tourists.

A significant trend that is developing worldwide and shaping most aspects of social life
and economic activity is the trend of sustainable development. The F&B industry is not
exempt from this influence. Along with this is the trend of healthy eating of a large
customer base, especially young people, who are also directing F&B businesses.
Environmental issues are being raised, which requires ingredients to come from clean,
sustainable sources, and production processes that do not have negative impacts on the
environment. At the same time, customers are showing more clear concern for health
issues, requiring food and beverage products that ensure quality, cleanliness,
deliciousness, and do not harm health. In the beverage industry, many products are
launched such as zero-calorie drinks, low-sugar drinks, made entirely from natural
ingredients, etc.
The market is affected by the economic recession, and customers tend to tighten their
wallets and become increasingly demanding in choosing products, which is a challenge
and an opportunity for many F&B businesses. Companies need to take advantage of this
opportunity to restructure menus that are suitable for budgets and tastes, develop products
that meet market demand, and create a competitive advantage over other competitors.

2.4. Product review

In response to the increasing customer demand for healthy, delicious, and non-harmful
products, Phúc Long Coffee & Tea has developed a line of low-caffeine coffee products.
Phuc Long Coffee & Tea uses Decaf coffee as the main ingredient in this product line.
2.4.1. Decaf coffee’s features
 It’s coffee from coffee beans that have had at least 97% of their caffeine removed.
 There are many ways to remove caffeine from coffee beans. Most of them include
water, organic solvents, or carbon dioxide.
 The beans are decaffeinated before they’re roasted and ground. The nutritional value
of decaf coffee should be almost identical to regular coffee, apart from the caffeine
content.
 However, the taste and smell may become a little milder, and the color may change,
depending on the method used.
2.4.2. Nutrients

 Decaf coffee does not completely eliminate 100% caffeine. Each cup of decaf coffee
(about 180ml) contains 0-7 mg of caffeine. This amount of caffeine is very small
compared to regular coffee .

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 Similar to regular coffee, decaf coffee contains antioxidants - mainly hydrocinnamic
acid and polyphenol compounds, although they may be up to 15% lower due to loss
during the caffeine removal process. Antioxidants help neutralize harmful compounds,
reduce damage, and prevent diseases such as heart disease, cancer, and type 2 diabetes
.
 A cup of decaf coffee contains 2.4% Magnesium, 4.8% Potassium, and 2.5% Vitamin
B3 .
 Although coffee is widely known for its ability to stimulate the nervous system, keep
you alert, and prevent drowsiness, these effects are mostly due to caffeine. However,
Decaf coffee still provides many benefits despite having most of the caffeine removed.

2.4.3. Benefits
Although coffee is widely known for its stimulating effects on the nervous system, which
helps to stay alert and fight sleepiness, these effects are mostly due to caffeine. However,
decaf coffee still provides many benefits even though it has had most of its caffeine
removed.

 Improves mood, reaction time, memory, and nervous system function.

 Increases metabolic rate and fat burning in the body.
 Enhances physical performance.
 Reduces the risk of depression, especially in women.
 Reduces the risk of liver fibrosis and other liver diseases.

2.4.4. Why should you drink decaf coffee?

The caffeine tolerance of each person is different. Consuming too much caffeine can lead
to high blood pressure and insomnia, thereby increasing the risk of heart disease and
stroke. Coffee abuse also has negative effects on the central nervous system, causing
anxiety, digestive problems, arrhythmias, and insomnia in sensitive people.

People with certain medical conditions and health problems should also limit their
caffeine intake, including those taking prescription drugs because caffeine can interact
with the components of the drugs and reduce their effectiveness.
In addition, other groups should also limit coffee and caffeine-containing products, such
as pregnant women, nursing mothers, children in developmental age, people with anxiety
disorders, and insomnia.
Decaf coffee is a suitable alternative for those people. In the campaign to launch the non-
caffeine coffee product line, Phúc Long Coffee & Tea also encourages users to pay more
attention to their own health.

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Phuc Long plans to use Decaf coffee beans as the main ingredient for our drinks, similar
to regular coffee beans, in stores. Additionally, we will also sell Decaf coffee beans in
packaged form.

2.5. Competitive review

2.5.1. Direct competitors

Highland Coffee, Starbucks, and The Coffee House are formidable competitors of Phuc
Long Coffee & Tea in the coffee shop chain market in Vietnam.

Highlands Coffee: Because Highlands Coffee pursues middle-class target audiences,

office workers and young people are the main target customers. The main business
strategy of Highlands Coffee is to open shops in office buildings (Grade A is awarded,
and prioritized). Highlands Coffee chain currently has more than 336 stores. Highlands
Coffee's revenue reached nearly 2,200 billion VND in 2019 and nearly 2,140 billion
VND in 2020, far surpassing and being more than double the total profit of the remaining
competitors.

Starbucks: In 2019, the revenue of the Starbucks chain reached more than 780 VND
billion, an increase of more than 32% compared to the previous year thanks to faster
system expansion. This number helps the world-famous coffee chain stand in the group
of chains with the highest revenue, behind Highlands Coffee.

The Coffee House: After many times of scaling up and raising capital, The Coffee House
has become the second-largest coffee chain in Vietnam (after Highlands Coffee). The
Nikkei Asian Review at the end of 2018 rated The Coffee House as one of the chains
with the highest growth rate today. The difference of this chain is that it does not invest in
stores in golden locations, but has a rich menu of drinks, moderate prices, high-speed
wifi, large areas, targeting the young customer segment. In 2019, this chain's revenue
reached 863 billion VND, an increase of nearly 30% compared to 2018. However, The
Coffee House was the highest loss chain in the leading group, with a negative profit of
more than 80 billion VND. With the highest gross profit margin among coffee chains, the
main reason for this chain's loss is its high selling costs
2.5.2. Indirect competitors
Phuc Long also has competitors selling alternative products such as famous milk tea
brands KOI, Tocotoco,...
In addition, in the market, there are a variety of beverage products rich in types, designs,
and tastes, such as C2 tea, 0-degree green tea, or carbonated drinks such as Pepsi, Coca
Cola are strongly competitive products in the youth market segment.

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2.6. Channel and Logistics review

An increase in the number of stores in Ho Chi Minh City in the past five years is proof
that Phuc Long has successfully exploited 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. There are
differences in the diversification of menu, space, and services between two types. In
addition, Phuc Long has its own farms, factories, and preparation system. Hence, their
products are not overpriced due to changes in ingredients price and secured quality.

3. SWOT

STRENGTH WEAKNESS

 Phuc Long targets diverse customers.  Limited indoor seats in most of

 The prices of Phuc Long's products are the stores, moreover the
appropriate and reasonable for customers' distance between seats is short.
income. Also, Phuc Long's stores have a  No parking area.
magnificent view, professional customer  Social websites are managed
service. badly, online interactions with
 The prices of products of Phuc Long are clients are limited. Many
independent because they are their customers complained that they
suppliers. hadn't received any glasses after
 Good reputation due to the flawlessness participating in a Phuc Long's
of its quality. event.
 Applying raw materials such as coffee  Rarely contact the media to
and tea leaves to make their products promote the brand, products,
flavorful. etc.
 Applying local products.  Lack of creativity and
 With climatic conditions, the taste of impression in designing tea
Vietnam's coffee is more delicious. bags.
 Always understand clients and make
them satisfied.
 The design of their logo is estimated to
be impressed with the combination of
colors and words.

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 OPPORTUNITIES THREAT

 As participation in TPP, the Vietnam  In recent years, the erratic

government would attract foreign developments of pests have
investments. been affecting negatively the
 Joining TPP is also an opportunity to quantity of coffee.
alter the tax barrier from low to zero.  With the ideal conditions to
Therefore, exporting coffee from plant coffee in Vietnam, many
Vietnam to other countries is much more coffee companies outside
convenient so Phuc Long will be able to Vietnam will see the chance to
make their brand go international. make a profit. As a
 The working-age group (15-64) in consequence, Phuc Long will
Vietnam raised gradually so Phuc Long have to compete with lots of
doesn't need to worry about employee competitors.
shortage.
 Almost all Vietnamese are familiar with
coffee.
 Chains of stores can be placed in
dominant locations (in malls, city center,
etc.)

4. OBJECTIVES AND ISSUES

Phuc Long has set ambitious and significant goals to achieve in the first and second years
of entering the market.

4.1. First-Year Objectives

In the first year of market presence, the aim is to generate widespread brand awareness
and achieve 15% of the company's total revenue in 2022, estimated at approximately
236.8 billion VNĐ. With a retail price of around 40,000 VND per serving, an estimated
50 million cups of coffee are projected to be sold.

4.2. Second-Year Objectives

Throughout the second year, the plan is to introduce a new non-caffeinated product and
double the revenue compared to the first year, reaching around 14 billion VNĐ.

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4.3. Issues
When launching a new campaign, the main challenge lies in establishing meaningful
brand awareness and brand image based on the target customer segment. Phuc Long will
implement marketing campaigns both digitally and traditionally, providing customers
with the most essential information and knowledge on why they should choose non-
caffeinated coffee. The brand will regularly assess and make adjustments based on
customer feedback regarding their services.

5. MARKETING STRATEGY
The marketing plan for "Phuc Long non-caffeine coffee" focuses on health and provides
an additional choice for coffee based on caffeine levels. Phuc Long aims to differentiate
itself through a strategy that other major F&B players in the Vietnamese market have not
strongly emphasized or marketed. The target market segment is coffee enthusiasts who
still prioritize their health or individuals who enjoy coffee but are unable to consume it
due to conditions such as high blood pressure, cardiovascular issues, or digestive
disorders…

5.1. Positioning
"Phuc Long non-caffeine coffee" will be positioned based on the concept of "Expect
More." This sets Phuc Long apart from other major F&B brands in the Vietnamese
market by highlighting the characteristics (expectation of no caffeine in coffee), desirable
benefits (prioritizing customer health concerns), and values (community health benefits
of coffee). The marketing activities aim to emphasize: Coffee no caffeine completely
eliminates caffeine, helping to avoid these potential side effects.
5.2. Product Strategy
Phuc Long will launch a campaign and gather feedback from customers. As awareness
increases and sales grow, more varieties of products will be offered, expanding into tea
and other areas. The coffee no caffeine version targets health-conscious individuals,
caffeine-sensitive customers, and coffee enthusiasts who want to avoid long-term health
effects such as anxiety, insomnia, increased heart rate, elevated blood pressure, and
impacts on the nervous system . . . . All aspects of the Marketing mix will be consistent
with the brand.

5.3. Pricing:
The cost of decaffeinated coffee and tea is typically slightly higher than the cost of
caffeinated coffee and tea. This is because the decaffeination process is an additional step
in the production process, and it requires specialized equipment and labor.

In general, you can expect to pay a slightly higher price for decaffeinated coffee and tea
due to the additional cost of the decaffeination process. However, the price difference is

16
typically not very significant, and it is worth it to pay the extra cost if you are sensitive to
caffeine.

Coffee: 30k - 55k

Non-caffeine coffee: 34k - 59k (+4k) +> average 47k

5.4. Distribution strategy:

The company's distribution strategy is characterized by a multi-pronged approach that
combines direct-to-consumer (DTC) and retail channels.

Direct-to-Consumer (DTC) Channels:

 Phuc Long Retail Stores: Decaffeinated coffee and tea products are available at all
Phuc Long retail stores alongside their caffeinated counterparts. Customers can visit
their nearest Phuc Long store to purchase decaffeinated beverages and experience the
brand's signature quality and flavor.
 Online Ordering and Delivery: Phuc Long's online ordering platform and delivery
network facilitate convenient access to decaffeinated coffee and tea. Customers can
place orders through the Phuc Long website or mobile app, and their decaffeinated
beverages are delivered promptly alongside any type of caffeinated drinks they may
have ordered.

Retail Channels:
 Supermarkets and Convenience Stores: Decaffeinated coffee and tea products are
included in Phuc Long's partnerships with major supermarkets and convenience stores.
Customers can find decaffeinated beverages alongside caffeinated options at these
retail locations, expanding Phuc Long's reach and accessibility.
 Food Delivery Platforms: Decaffeinated coffee and tea are available through Phuc
Long's partnerships with popular food delivery platforms. Customers can order
decaffeinated beverages through GrabFood or NowFood, enjoying the convenience of
having them delivered to their doorstep.
 E-commerce Platforms: Decaffeinated coffee and tea products are also available on e-
commerce platforms such as Shopee and Lazada, catering to online shoppers who
prefer the convenience of purchasing from home. This strategy expands Phuc Long's
reach to online consumers and captures a share of the growing e-commerce market.

5.5. Marketing communications strategy

Traditional Marketing:
 Physical Presence: Phuc Long's extensive network of over 250 stores across Vietnam
serves as a powerful visual representation of the brand's presence and ubiquity. The
aesthetically pleasing interiors and aroma of freshly brewed coffee create an inviting
atmosphere that draws customers in.

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 Collaterals and Packaging: Phuc Long's beautifully designed coffee sleeves, cups, and
merchandise exude a sense of elegance and craftsmanship, aligning with the brand's
premium positioning. These tangible elements reinforce brand awareness and create a
lasting impression on customers.
 Events and Collaborations: Phuc Long actively participates in cultural events,
festivals, and collaborations with renowned artists and influencers to expand its reach
and connect with a broader audience. These partnerships foster brand engagement and
drive brand perception.
Digital Marketing:
 Social Media Engagement: Phuc Long maintains a strong presence across social media
platforms, including Facebook, Instagram, and TikTok. Engaging content, interactive
campaigns, and influencer partnerships effectively capture the attention of online
audiences, driving traffic to their stores and online presence.
 Email Marketing: Phuc Long nurtures customer relationships through targeted email
campaigns, offering exclusive promotions, product updates, and loyalty programs.
This personalized approach keeps customers informed and incentivized to return.
 E-commerce Platform: Phuc Long has established an online store to cater to customers
seeking convenience and contactless purchases. The platform seamlessly integrates
with the brand's physical presence, providing a unified shopping experience.
5.6. Marketing research:
The global decaffeinated coffee and tea market is expanding, driven by health concerns
and consumer preferences. Phuc Long's decaffeinated coffee and tea target health-
conscious individuals, pregnant women, and caffeine-sensitive individuals. These
offerings present a significant opportunity to tap into the growing demand for caffeine-
free beverages. By implementing a strategic marketing approach that emphasizes health
benefits, targeted advertising, and engaging content, Phuc Long can effectively position
its decaffeinated products to capture a loyal customer base.

6. ACTION PROGRAMS

‘Coffee4Health’ will be introduced in December. Here is the 12-month campaign to

achieve the goals:

NOVEMBER: Prepare for the media campaign

 Phuc Long representatives will provide distributors and stores with information about
trade promotion campaigns, incentives and advertising.
 Representatives will also educate distributors and retailers on product benefits, as well
as how to display products at the point of sale.
 The brand website and brand accounts on social media platforms will showcase
products and announce availability dates and locations.
 Phuc Long will provide sample products for KOLs, KOCs, and Influencers so they can
experience the products.

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DECEMBER: Introduce products to target customers
 On the day of availability, the menu is updated and posters will be placed in the
drinking space of Phuc Long stores
 Attach the slogan “Enjoy taste, enjoy life.” to convey that customers can enjoy the
delicious taste of coffee without fear of affecting their health. At the same time, raise
customer awareness that consuming too much caffeine will negatively affect the body.
 Full brand website and social media campaign will launch on Facebook, Instagram,
TikTok. KOLs, KOCs, Influencers will introduce the product 'Coffee4Health' to the
public after experiencing it.
JANUARY: Increase customer awareness about the product
 Increase activities on online channels (TVC on Youtube, TV) and offline (outdoor
billboards at entertainment centers...)
 Associate with leading health experts to promote the benefits of decaffeination from
coffee and increase customer trust.
 Organize product introduction events, especially for those who easily get drunk with
high amounts of caffeine.
 Disseminate the story of Phuc Long's 'Coffee4Health' line to everyone
FEBRUARY: Encourage customers to test products
 Organize free product trial counters at shopping centers and supermarkets
 Launched a program to exchange reward points for Decaf products for 1 month
 Recommend the product 'Coffee4Health' in the coffee category on e-commerce
platforms (Shopee food, Tiktokshop)
MAR: Increase customer loyalty
 Discounts when purchasing products of the 'Coffee4Health' line
 Record and post photos of customers using Decaf coffee to promote the spirit of
healthy coffee consumption.
 Give a gift of gratitude when purchasing a certain number of cups of 'Coffee4Health'
coffee.
APRIL: Stimulate sales
 Organize a sales contest and reward distributors and stores for high 'Coffee4Heath'
sales
MAY: Maintain product line recognition to customers
 An event marketing campaign will mobilize a team of ‘Coffee4health’ product
representatives to concerts and sporting events. This will provide additional visibility

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 to the brand as well as give customers and prospects the opportunity to try out the
product.
JUNE : R&D
 Survey customers about their feelings after using Decaf coffee to adjust the amount of
caffeine extracted and evaluate the health effects the product line brings.
 Consider finances and propose future development trends of the product line
JULY: Affirming value
 Announcing the results after the study to confirm the benefits that Decaf coffee brings
 Emphasize the positive points of the campaign: For the health benefits of the coffee-
loving community.
AUGUST & SEPTEMBER: Expanding the market
 Export the ‘Coffee4Health’ line when it has good results in Vietnam
 Strengthen cooperation with partners to distribute Decaf products
OCTOBER: Evaluate the effectiveness of the campaign
 Evaluate the level of achievement of goals and profits and make further decisions for
the product line 'Coffee4Health'

7. BUDGET
2024: decaf launch: aiming to capture15% of total revenue of 1578.7 billion VND =>
236.8 billion VND with the expected average selling price of 1 glass being 47k out of a
total of more than 5 million glasses (5,038,298 glasses) sold => Profit is 121 billion VND
(because the average profit of 1 glass is 24k)

8. CONTROLS
‘coffee4health’ is planning tight control measures to closely monitor product quality,
brand awareness, brand image, and customer satisfaction. This will enable the company
to react quickly in correcting any problems that may occur. Other early warning signals
that will be monitored for signs of deviation from the plan include monthly sales (by
segment and channel) and monthly expenses. Given the market’s volatility, contingency
plans are also in place to address fast-moving environmental changes such as shifting
consumer preferences, new products, and new competition

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 PREFERENCES

---o0o---

1. Philip Kotler_Gary Armstrong_Sridhar Balasubramanian - Principles of

Marketing (19th, 2023)_Pearson
2. Phuc Long website
3. Chiến lược Marketing của Phúc Long - Tự hào hương vị Việt - Ngọc BícH
4. Caffeine Withdrawal: Drinking Decaf Can Help Reduce Painful Symptoms
5. Phúc Long - một thương hiệu thuần Việt

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