Phuc Long is increasingly asserting its brvà in the Vietnamese beverage market, especially about tea and coffee.

I. Company background

Phuc Long is one of the most famous companies of coffee và tea in TP HCM, Vietphái nam. Phuc Long was created in Bao Loc, Lam Dong, where is a noted place to cultivate tea in Vietnam in 1957. The first Phuc Long tea workshop was started to lớn run in the middle ’70s in HCM. Since then, Phuc Long company developed a lot in their markets and human resources. Today, Phuc Long coffee and tea is a well-known br& that has good equipment. Their brvà logo is the shape of a traditional teapot which is their particular machine lớn make perfect tea. In addition, they offer customer services as a combination of their many other products depends on special dates. Now, Phuc Long coffee and tea has around 16 stores in Hồ Chí Minh.  Phuc Long’s main sản phẩm is tea. They have various types of tea, so that customer cannot be boring. In sort of tea, there are blachồng, blooming, green, oolong, and bu-erh teas. In each kind of tea, there are more specific teas. They also have sầu their own method for a teabag, so that the consumers feel more convenient. Furthermore, Phuc Long provides coffee in many different ways. For example in Phuc Long coffee, they have basic coffee such as espresso & Moka like other coffee shops, but they have one special phối of coffee as well. ‘Girl set’ is a package that has a girl printed who is wearing Vietnamese traditional clothes ‘Ao Dai’ và playing Zither. ‘Girl phối contains handle coffee filter & a spoon. Its package is useful & convenient khổng lồ carry outside. Moreover, Phuc Long supplies mooncakes which is a Vietnamese favorite. They sell mooncakes as a paông chồng of a special gift for valuable days such as independence day in Vietnam.

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II. Factors that create Phuc Long"s success

1. Micro environment

Company

Born in Bao Loc (Lam Dong) since 1957 and inherited the family business, Mr. Lam Minch Boi, a director of Phuc Long company, seeking khổng lồ develop the business of tea & coffee. In the past, Phuc Long has simply accommodated resellers with a qualitative coffee và tea across the country but nowadays, they have been expending the sphere of their business by using raw materials (coffee và tea leaf) to make tasty drinks in their own coffee shops và invest in plant construction in Tnhị Nguyen and Binh Duong with a modern production line to meet domestic demvà as well as export to lớn the world.  

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After the success of producing, Phuc Long coffee stores is established as a reputable coffee & tea house belong lớn Phuc Long Coffee and Tea Co Ltd due lớn the perfect quality of its.They have khổng lồ pay a lot for rental cost and initial investment costs is also huge. Currently, they have sầu 16 stores highly desirable places in Ho Chi Minc City. Half of the stores are in đô thị centre, district 1: Mac Thi Buoi, Ly Tu Trong, Le Loi, etc. Their coffee shop is designed lớn make customer welcome & cozy as they are at trang chủ. Furthermore, the thực đơn offers the best range of variety và affordable prices, they use as much local produce as could be expected such as oolong tea, blaông xã tea, dark roasts as well as moon cake & preparation tools, etc... Moreover, Phuc Long’s marketing department pursuits the planning strategy that is “think consumer” khổng lồ provide consumer value and satisfaction. According lớn Hoang và Thanh"s statements in năm trước that when choosing a country as the destination lớn discover, foreign tourists have the intension of enjoying local coffee & tea brand instead of world famous brand such as Starbucks, the Coffee bean and tea leaf, etc. After that, those customers could generate positive word of mouth for Phuc Long, Vietnamese coffee và tea brand, when they come back their countries, as a result the sales increase. 

Competitors

In the competitive sầu environment in Vietnam giới, there are so many well-known coffee brands in Vietnam giới and they compete intensively. Notably in the district 1 (HCM city), within a radius of 600 – 800 meter around Ben Thanh market, there are 5 out of 9 Starbucks stores, 10 out of 17 the Coffee Bean và Tea Leaf stores, over ten stores of Trung Nguyen coffee & even Phuc Long, which was established recently, has 6 stores in this area. These foreign coffee brands are really a potentially svào competitors of Phuc Long. Highland is the biggest companies but has been decreasing shares recently: has 98 total outlets with strategic locations in big cities, up-to-dated menus, professional service, reasonable prices, good quality drinks. Besides, Vuvuzela is growing quickly. In addition, Starbucks is new and growing, highest value sales growth in 2018 with international reputation, Western lifestyle & uniquely designed spaces. Phuc Long has been stabilizing in recent years. It is clear that Phuc Long hasn’t had any significant influences on coffee industry because of the firmly development of strong competitors such as Highlands Coffee, Starbucks. 

Customers

Phuc Long coffee can meet the demands of both comtháng people and high-income customers. They divide their stores into lớn two types: take away express & take away house. In terms of take away express stores, they focus on people with average income with affordable prices for instance it only costs 30,000 VND for a cup of ice coffee và that is also an average price for tea. On the other hvà, take away house stores serve the same drinks but higher price due khổng lồ the premium service and splendid space. A cup of coffee costs averagely 40,000 VND. Overall, Phuc Long aimed at the wide range of customers from different areas which are workers, foreign people as well as student. Affordable price is a key factor bring Phuc Long brand khổng lồ customers as fast as possible. In addition, Phuc Long also aims at some big markets including nhật bản, America through foreign tourists coming to Vietphái nam. By researching interest & the psychology of tourist, Phuc Long company has made a small coffee bag which is designed lớn be artistic và colourful ethnic such as brocade fabric bags, plastic bags printed with Vietnam giới girls wearing traditional dress or some wonderful images of Vietnam’s landscapes. By using this approach, Phuc Long has gradually been a potential coffee and tea exporter of Japan and the US. The company has been trying khổng lồ maintain top three big market: nhật bản, Philippines & Indonesia.

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Public 

Although having recently operated stores in Vietnam for 3 years, Phuc Long has received so many positive sầu responses from customers. Le Thi Nhi, a patron of Phuc Long, commented that she liked coming lớn there because they have sầu magnificent view, professional customer service and especially a qualitative coffee và tea. Therefore, Phuc Long stores especially Phuc Long’s take away house stores in the main routes are always packed because these are the favourite choice of youngsters khổng lồ come khổng lồ relax or chat. As a consequence, that is a main alarming position leading khổng lồ some of the weaknesses which can make this coffee br& decline. Being usually overloaded affects the service there & many people complain about the parking spot of Phuc Long. Lack of areas for parking make customers feel extremely inconvenient, time consuming and they even have to lớn walk a long distance khổng lồ have just a drink. Phuc Long is becoming more & more famous in Ho Chi Minc đô thị, even Ha Noi in which they bởi not have sầu any store but Phuc Long still need a consideration to address these negative sầu situations.

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Supplier

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

2. Macro environment

Demographic

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Vietphái mạnh is identified as one of the young populated countries, working age account for roughly 70% of total population. It is an unmistakably positive sầu sign for Phuc Long - a new gorgeous coffee chain as its target customers whom mainly focus on this specific age group.In terms of the tendency of people’s shifting from rural lớn big cities, Hanoi & Ho Chi Minc, has been accelerated in recent decades. Notably in Ho Chi Minc thành phố, comparing lớn 100 years ago, the population of TP HCM thành phố now has more than 111 times as in the past, from the nearly 55,000 people in 1905, this amounted to more than 6.1 million people. But in fact the increase not due to natural population growth, which is mainly due lớn a mechanical rise from the waves of immigration. In terms of education, a number of the survey show that the rate of university-educated immigrants is higher than that of university-educated people living in Hồ Chí Minh đô thị, with 9,15% and 7,8% respectively. As a result, the number of white-collar in HCM đô thị has actually changed, with 61% of immigrants to lớn be a director or vice-director, và about 31% of those people who are locals. Hence, people are more likely lớn have a higher standard of living and pay more money on services. Furthermore, Vietphái mạnh with a population of 80 million people in which 49% is in the working age. This abundant labour force is provided for the national economy. Export coffee production is a process including several stages such as breeding, planting, packaging. This process requires a relatively large workforce. Especially in Vietphái nam, it lacks of application of machinery to lớn work và producing so the advantage of large workforce can reduce a lot of cost for coffee producers in order to lớn lower the price when they export.