In which, the most prominent brands can be mentioned such as The Coffee House, Phuc Long Coffee & Tea, Highlands Coffee, Cong Coffee.. Market share According to the report of Coffee sho
Introduction
Reasons for choosing the topic
Vietnam's coffee and tea market is an attractive, highly competitive arena with an estimated 1 billion USD in annual sales, according to Euromonitor Prominent players such as The Coffee House, Phuc Long Coffee & Tea, Highlands Coffee, and Cong Coffee each bring distinct styles, drinks, pricing, and service, while enjoying high familiarity among Vietnamese consumers A key driver of their success is the effective application of the 7P marketing mix—Product, Price, Place, Promotion, People, Process, and Physical Evidence—used to shape brand behavior across touchpoints This article analyzes Phuc Long Coffee & Tea as the focal brand to reveal how its 7P strategy is designed and executed in the Vietnamese market, and what it suggests about building competitive advantage in a crowded landscape.
Research objective
- Research and analyze the current situation of Phuc Long Coffee & Tea marketing mix activities, including elements of services product, price, distribution, promotion, service processes, physical evidence, people
- Make comments, evaluate and propose solutions to improve the 7P marketing mix strategy for Phuc Long Coffee & Tea.
Introduce about Phuc Long Coffee & Tea
1.3.1 History of establishment and development process
- In 1968, Phuc Long was founded in the famous tea plateau Bao Loc (Lam Dong)
- In 1980, Phuc Long opened the first three stores selling products in Ho Chi Minh City on Le Van Sy, Tran Hung Dao, and Mac Thi Buoi streets
- In 2000, Phuc Long trading production company limited was officially established.
- In 2007, Phuc Long took possession of a tea hill in Thai Nguyen and at the same time invested in building a coffee and tea factory in Binh Duong
- In 2012, the first Phuc Long Coffee & Tea store was launched at Crescent Mall District
7 That was an event marking a turning point in Phuc Long's development history when the company officially entered the Food & Beverage field with Phuc Long Coffee & Tea shops operating under the self-service model in a modern, classy, and outstanding space
- So far, Phuc Long Coffee & Tea chain stores have been present in all major cities across the country (Ho Chi Minh City, Hanoi, Da Nang, Nha Trang, Binh Duong).
Driven by a relentless passion for expanding markets through sustainable development, Phuc Long aims to become Vietnam’s premier manufacturer and exporter of high-quality coffee and tea, pursuing responsible growth and a growing global presence.
- Phuc Long hopes to create a Vietnamese brand with outstanding quality reflected in each product, thereby gradually affirming its position in the international market
- To become a pioneer by creating new ideas for the coffee and tea industry
- To develop an outstanding brand, motivate one another, as well as turn the ideas into reality over unity, interaction, listening, and respect
- Maintain high quality that satisfies customers by having a deep understanding of their needs and values
- To the consumers: Commit to supplying the best quality products and services
- To the employees: Continue to improve the professional, dynamic and creative work environment Provide a fair and equitable work environment that facilitates opportunities for advancement
To the community, we aim for a balance between the company’s benefits and the well-being of the community, prioritizing sustainable impact over short-term gains We actively participate in local social initiatives and collaborate with residents to support programs that matter In every action, we demonstrate a strong sense of responsibility, ensuring our efforts create value for both the business and the people who form the community.
- Manufacture, export, and trade finished products of coffee and tea (packaged)
- Offer food and beverage services at Phuc Long Coffee & Tea shops:
+ A comprehensive variety of food and drinks
+ A fine selection of cakes and fritters
Market & Competitors Analysis
Market Analysis
According to the 2020 report on the social media landscape of coffee shop chains, The Coffee House, Phuc Long Coffee & Tea, and Highlands Coffee led the field, collectively accounting for more than 75% of social discussions about coffee shops Domestic brands such as Ong Bau Coffee, Cong Coffee, Trung Nguyen, Milano, Passio, and GUTA followed, signaling a strong wave of purely Vietnamese brands in the market The most popular international brand on social media was Starbucks, ranked fourth with 14.4% of the discussion market share.
Figure 2.1:Overall Buzz Volume about Coffee Shop Chains in Vietnam in 2020
(Source: Coffee shop chains landscape on social media in 2020) 2.1.2 Operation status of coffee shop chains
In 2020, Highlands Coffee retained its position as the largest coffee chain in Vietnam, with the lead over competitors remaining largely unchanged Total revenue reached nearly 2.14 trillion VND, marking only a slight decrease from the previous year.
Vietnam's leading coffee chains remained highly competitive in the latest rankings The Coffee House slipped to 3rd place after a relative decline, while Phuc Long edged up to 2nd place with modest growth Starbucks followed a similar pattern to The Coffee House, staying in step with the market Collectively, these three beverage chains posted revenues in the 700–800 billion VND range, and since 2019 they have experienced rapid growth.
4 rates, averaging 30-40% per year This further shows the tremendous impact of the pandemic on the entire F&B industry, of which the above names are just examples
Within the Trung Nguyen Franchising group, the unit created to oversee the Trung Nguyen Coffee Space chain recorded a 33% drop in revenue By contrast, NISO Group, the management arm of the RuNam-branded restaurant and coffee chain, faced an even sharper decline, with revenues more than halved.
Profits among the major coffee chains diverged in the period analyzed, with Highlands Coffee and Phuc Long Coffee & Tea posting notable gains as profits rose 45% and 119% respectively to 80 billion VND and 35 billion VND, reflecting improved efficiency during the epidemic Meanwhile, chains already losing money—The Coffee House, Trung Nguyen Franchising, and NISO Group—continued to incur heavier losses, while Starbucks, the foreign chain, saw a sharp decline in profit from 39 billion VND to 5 billion VND.
Figure 2.2: Revenue and profit of Coffee Shop chains in Vietnam over the years
Competitors Analysis
Highland Coffee, Starbucks, The Coffee House are formidable competitors of Phuc Long Coffee & Tea in the coffee shop chain market in Vietnam
Highlands Coffee targets the middle class, office workers, and young people, shaping its growth strategy around opening locations in Grade A office buildings to capture premium foot traffic The chain now operates over 336 stores and has established a strong urban footprint Revenue reached approximately 2,200 billion VND in 2019 and about 2,140 billion VND in 2020, with profits far ahead of rivals and more than double the profits of other competitors This blend of premium-location positioning and solid top-line growth reinforces Highlands Coffee’s leading position in the market.
Starbucks' Vietnamese revenue surpassed 780 billion VND in 2019, up more than 32% year over year thanks to faster store network expansion This growth positions Starbucks among the highest-revenue coffee chains in Vietnam, trailing only Highlands Coffee and The Coffee House.
The Coffee House is Vietnam's second-largest coffee chain after Highlands Coffee, built through multiple rounds of scaling and capital raises By the end of 2018, Nikkei Asian Review named it one of the fastest-growing coffee chains Unlike rivals that invest in premium golden-location stores, The Coffee House differentiates itself with a rich drinks menu, moderate prices, high-speed Wi‑Fi, and large-store footprints aimed at attracting a young customer base In 2019, the chain achieved revenue of 863 billion VND, up nearly 30% from 2018, signaling strong growth; however, it was also the leading chain with the highest loss, recording negative profit of more than 80 billion VND due to high selling costs despite boasting the highest gross profit margin among coffee chains.
Phuc Long also has competitors from alternative products such as famous milk tea brands KOI, Tocotoco,
The market features a diverse array of beverages with varied types, designs, and flavors, including C2 Tea and 0-degree Green Tea, as well as popular carbonated drinks such as Pepsi and Coca-Cola, all highly competitive within the youth market segment.
Target customers analysis & Positioning Strategy
Segmentation
Segment one comprises the affluent, high-income audience who are willing to pay premium prices not only for a superior drink but also to signal their status They seek more than quality beverages; they want the entire experience to reflect exclusivity, from the atmosphere and décor to the staff’s attentive, professional service For this segment, price acts as a cue for luxury and prestige, and decision making is driven by how effectively a venue communicates its upscale image through interior design, service attitude, and overall ambiance.
In the second customer segment, individuals with an average income—primarily office workers and students—are more focused on quality than price, seeking comfortable spaces where they can meet friends, work, and exchange ideas The third segment consists of low-income consumers who are highly price-sensitive and have little interest in quality drinks or upscale experiences, instead needing affordable space to spend time by themselves Understanding these segments helps tailor offerings to deliver quality experiences for the mid-income group while providing economical, self-contained options for budget-conscious customers.
Targeting
Phuc Long Coffee & Tea targets Vietnam's middle-class customers, from office workers to energetic young people, including students and foreign tourists These visitors come not only to chat or meet friends and partners but also to find a comfortable, spacious space that supports studying, working, and creative activities.
Positioning
- The company has succeeded in positioning the brand in the minds of customers as a premium tea, "expensive but worth it"
- Positioning of Phuc Long Coffee & Tea for:
+ Customers: A place to stop, work, relax and chat
+ Products: Phuc Long produces and distributes quality, delicious, full of Vietnamese flavor tea and coffee products
+ Market: Phuc Long wishes to bring its products to many places across the country along with reliable quality and service at a reasonable price for consumers
Figure 3.1: Competitor-based positioning map
Analyzing the Marketing Mix (7Ps) Strategies
Services Product strategy
A service product comprises all elements of service performance, both tangible and intangible, that create value for customers Service products do not lead to ownership or transfer of ownership Customers will feel disappointed and uncomfortable when using service products that are not as expected On the other hand, customers will be satisfied and happy when service products' quality not only meets but also exceeds their expectations Feelings and reviews of customers are the most important recognition for the service products' quality
- Core product: the central component that supplies the principal, problem-solving benefits customers seek
- Supplementary Services: augments the core product, facilitating its use and enhancing its value and appeal
- Delivery Processes: used to deliver both the core product and each of the supplementary services
The main products of Phuc Long Coffee & Tea include tea and coffee Phuc Long has found a unique USP point that no other brand has That is, the taste of Phuc Long must be one, unique and different
Phuc Long's tea draws its fresh taste from two tea hills in Thai Nguyen and Bao Loc The brand emphasizes traditional manual processing to deliver a strong, full-bodied cup The characteristic flavor arises from the tea leaves' composition—theanine, polyphenols, caffeine, carbohydrates, and enzymes—working together to produce a fragrant, bold, and refreshing cup To suit different preferences, Phuc Long offers two options for tea lovers.
+ Make in a modern way with green tea latte
+ Make in a traditional way with a perfect cup of oolong tea in both flavor and taste
Phuc Long focuses on the pure origin of its coffee beans, preserving premium characteristics and continually sourcing the finest beans to roast to the perfect level When you drink Phuc Long coffee, four signature traits stand out: bold, strongly roasted beans; a powerful flavor; a delicate finish; and a distinctive aroma Phuc Long prepares coffee according to two recipes.
+ Make in a modern way: filter coffee, racquet coffee
+ Make traditionally: french press, aeropress, pour-over, cold brew
● Supplementary Services: in Phuc Long, there are various supplementary services including facilitating services and enhancing services
Facilitating services are the support functions that enable customers to receive a service or use Phuc Long's core product smoothly, and they consist of four key elements: information, order-taking, billing, and payment Providing clear information, efficient order-taking, accurate billing, and seamless payment processes helps optimize the customer journey, improve satisfaction, and strengthen operational efficiency for Phuc Long.
Phuc Long customers can refer to up-to-date information on current and upcoming Phuc Long Coffee & Tea products and prices on the official Phuc Long fan page Product information is updated the fastest on the company's official page, with clear and honest visuals that build confidence when choosing Phuc Long products The websites also offer branch locations and a store locator to help you find the nearest Phuc Long branch and save travel time.
Phuc Long Coffee & Tea streamlines order taking by giving customers an invoice along with a service vibrating order card, which calls them back to pick up their drinks and dishes This vibrating order card reduces waiting time, helps customers stay proactive, and minimizes errors by ensuring the right drinks and dishes are delivered In addition to in-store service, Phuc Long also offers online ordering through popular apps like Baemin, Grab, and Now, enabling customers who cannot visit the shop to place orders for pickup or delivery.
9 directly to the store to buy That is a popular way to attract customers and bring high revenue for brands in today's modern technology era
Phuc Long's billing process reflects its diverse product lineup and mix-and-match combos by issuing invoices right after payment and before customers receive their drinks or dishes, ensuring maximum convenience and billing accuracy Each invoice lists the date and time, the cashier's name, and the price of every item, giving customers a clear, itemized record of their purchase Any billing issues are resolved promptly to maintain a smooth and satisfying customer experience.
Phuc Long provides flexible payment options, including cash and bank cards, and strongly promotes the use of e-wallets such as Momo, Shopee Pay, and Zalo Pay Customers who pay with these digital wallets can receive extra incentives via vouchers and coupons, while the store’s advanced technology platform speeds up transactions and saves time.
Phuc Long Coffee & Tea extends its core in-store offerings by launching packaged tea and coffee products for the retail market The lineup includes boxed tea, packaged tea, canned tea, and canned coffee, distributed to retail partners such as Vincommerce and VinMart+ to broaden market reach and boost Phuc Long's sales.
Beyond Phuc Long Coffee & Tea beverages, the brand’s mooncakes have left a strong impression on customers for both quality and box design, driving Phuc Long’s success in the food segment The decision to diversify with Phuc Long branded bread has also resonated positively with shoppers The standard bread originated from France and branded in Vietnam is offered in all sizes with ingredients that ensure food safety; although priced slightly higher than rivals, the value is regarded as reasonable and there is little to complain about.
Phuc Long Coffee & Tea strengthens the customer experience by offering enhancing services in addition to its facilitating services, demonstrating professionalism and differentiating the brand from competitors; three factors elevate the value of its core products.
Prioritizing safekeeping by making customers feel secure and comfortable when using Phuc Long Coffee & Tea’s services is a key driver of customer growth The brand enhances this trust by deploying parking staff and providing ample parking lots; some branches even offer two lots to ensure a secure and convenient experience for guests as they enjoy Phuc Long’s coffee and tea.
Hospitality is a cornerstone of today’s business model, and Phuc Long Coffee & Tea embodies this with a professional, friendly service style The staff greet customers warmly on arrival, with waiters and cashiers delivering attentive, seamless service from the moment you step inside If guests can’t find a suitable seat, staff will guide them to an available table, ensuring a welcoming and comfortable visit.
Phuc Long Coffee & Tea empowers frontline staff with partial authority to handle common customer situations and reasonable exceptions, such as accommodating personal preferences like adding more sweetness or adjusting a drink When an order is incorrect or requires customization, employees can make on-the-spot decisions without notifying the manager, ensuring faster service and a seamless customer experience This empowerment reduces pressure on employees while maintaining high service standards and overall operational efficiency.
Pricing strategy
Table 4.1: Price list of some products at Phuc Long
Phuc Long Con Panna 60.000 VND
Phuc Long Milk Tea 45.000 VND
The foundation's underlying pricing strategy can be described as a tripod, with costs to the provider, competitors’ pricing, and value to the customer as the three legs Phuc Long Coffee
& Tea has also built a pricing strategy for its products and services based on these three basic factors:
Phuc Long's pricing policy is strategically built around the strengths of its core ingredients—tea and coffee—the primary inputs for most of the brand's products These key ingredients are grown, processed, and supplied in-house by Phuc Long to its store network, ensuring full control over quality and consistency By mastering these main inputs, the company's costs are less exposed to external supplier fluctuations, enabling lower production costs per product This approach delivers affordable prices for customers without compromising quality, sustaining competitive value across Phuc Long's menu.
Under cost-plus pricing, a product’s price is determined by adding a markup to the cost of input ingredients and production The final price also incorporates service costs, such as seating, and other operating expenses associated with running Phuc Long Coffee & Tea shops, ensuring the price covers both production costs and the service overhead.
Our cost structure centers on fixed costs for facilities, a luxurious Western-style interior, modern machinery and equipment, and a prime city-center location; direct costs are driven by carefully selected seasoning sources and tools that meet high input standards; labor costs reflect a workforce chosen for professional training and a consistent, enthusiastic approach to customer service.
+ Additional costs: service quality and brand value built over more than 50 years
+ Other expenses: advertising, electricity, water, wifi,
The Vietnamese coffee market is fiercely competitive and clearly segmented, with major brands occupying distinct customer niches and each brand targeting a specific audience This segmentation drives brand competition and differentiation across all tiers In the high-end segment, aimed at high-income office workers, Highlands Coffee competes with international brands like Starbucks and The Coffee Bean & Tea Leaf, highlighting the coexistence of domestic and global players in Vietnam’s premium coffee market.
Tea Leaf is positioned in contrast to Trung Nguyen, which frames its brand as more affordable to attract customers who favor traditional coffee flavors Phuc Long, meanwhile, targets the mid-range segment with prices that are affordable for the majority, aiming to reach a broad base of consumers as quickly as possible.
Although they cluster by store count, the brands diverge in price Urban Station and Passio sit in the 15,000–40,000 VND range, while Trung Nguyen and Starbucks Coffee typically range from about 40,000 up to more than 90,000 VND The 30,000–60,000 VND segment is Phuc Long's market; for example, a cappuccino at Phuc Long costs 30,000 VND for a small and 35,000 VND for a large, while Highlands Coffee charges up to 54,000 VND and Starbucks up to 80,000 VND Phuc Long also sells milk tea, a favorite among young customers, at around 25,000 VND, offering a cheaper alternative to the other drinks.
Phuc Long prices its cups at 45,000 VND, roughly 50–70% of Trung Nguyen’s selling price and about 30–50% of the price charged by Starbucks and The Coffee Bean & Tea Leaf, making the brand highly accessible in the Vietnamese coffee market This pricing strategy brings the brand closer to all consumers A representative of Phuc Long said that foreign brands entering the Vietnamese beverage market are not a threat, because Phuc Long’s target audience is young people and the price is reasonable.
Phuc Long's logo green color is not meant to compete directly with Starbucks or other brands in the same category; rather, it is a deliberate strategy to gain an advantage in the mid-market segment, signaling a distinctive value-focused positioning that appeals to customers who sit in the middle of the market.
Phuc Long Coffee & Tea implemented a sharp market-entry pricing strategy that underpins the brand's success today When Vietnamese consumers craving Western-style cafe experiences faced prices of roughly 45,000–60,000 VND, and only high-end brands like Starbucks or The Coffee Bean & Tea Leaf dominated the landscape, Phuc Long opened with an accessible price point The goal was to offer an average-priced menu without sacrificing taste or service, proving that quality can rival premium brands at a more approachable price This combination of competitive pricing and strong quality has been a cornerstone of Phuc Long’s growth and market presence.
Phuc Long Coffee & Tea stands out beyond its tea and coffee drinks thanks to a diverse menu that also features juices and iced beverages at different price points to meet varied customer needs This breadth demonstrates that Phuc Long Coffee & Tea is not inferior to foreign and domestic brands Additionally, the brand develops its services in two formats, highlighting a flexible approach to delivering a satisfying customer experience.
Takeaway Express is a budget-friendly takeaway coffee option offered at branches with mid-range facilities or at Vinmart+-connected kiosks, designed to serve middle-income customers Prices range from 30,000 to 40,000 VND, and the basic beverage lineup includes iced milk coffee, hot milk coffee, and peach tea.
Phuc Long's Take Away House lets customers enjoy the brand's signature coffee flavors and a wide range of drinks at major Phuc Long Coffee & Tea branches Prices range from 40,000 to 65,000 VND, catering to customers who want a premium cafe experience Phuc Long's pricing strategy starts from the customer’s perspective by asking how much it costs to experience a shop like this, whether the price is reasonable, whether the value matches what customers feel entitled to, and whether they can afford to visit often By targeting commuters, tourists, and students with localized prices, Phuc Long provides a spacious, comfortable, and sophisticated space that rivals international chains like Starbucks or The Coffee Bean, while staying within accessible price bands This approach has helped many young people become loyal customers of Phuc Long stores.
Distribution strategy
In a typical sales cycle, distribution embraces three interrelated elements:
Information and promotion flow is centered on Phuc Long's official website and Phuc Long Fanpage, ensuring consistent messaging across channels Advertisements on delivery intermediary apps are used to reach consumers with up-to-date product details, promotions, and pricing.
Customers at Phuc Long Coffee & Tea stores begin by queueing to place their orders for products and services, with payments and orders processed almost simultaneously The cashier issues an invoice that includes your unique order number When your order number is called, staff direct you to the counter to collect the food or drink you ordered.
Phuc Long's product flow leverages delivery partnerships and in-store sales to reach customers efficiently The brand collaborates with intermediary delivery apps such as Grab, Baemin, and Now to bring its drinks to consumers who cannot visit a shop, ensuring quick and convenient access Beyond these apps, Phuc Long Coffee & Tea Shops sell directly at their stores because their drinks cannot be stored or transported to agents or retailers, preserving quality and freshness.
Distribution channels in services coordinate suppliers, intermediaries, and customers through technology-enabled buying and selling activities, and are typically short and direct Phuc Long Coffee & Tea Shops employ a direct sales distribution model to ensure customers experience the highest product and service quality, delivering not only drinks and dishes but also the space, store layout, and staff attitude that define the brand experience Beyond traditional storefronts, Phuc Long launched Phuc Long Kiosk on January 12, 2021, introducing a new model and space where customers can also enjoy Phuc Long beverages at Vinmart stores, with an order counter inside Vinmart for convenient access.
Figure 4.2: Phuc Long kiosk model at Vinmart New City - Distrisct 2
Figure 4.3: The dense order of the Phuc Long Kiosk model is arranged inside Vinmart
Phuc Long Coffee & Tea extends beyond storefront sales by offering "Delivering Services in Cyberspace" and through intermediary and electronic apps This online ordering model is increasingly popular, particularly among office workers and students, who appreciate better prices, convenience, and easy access that fits their study and work schedules The shift aligns with the ongoing digital transformation of Industry 4.0 and the rising demand for seamless delivery options in modern consumer markets.
Facing the Covid-19 epidemic, Phuc Long launched Delivering Services in Cyberspace to better meet customer needs and shift from high-contact to low-contact interaction In addition to direct store sales, Phuc Long partnered with intermediary apps and delivery services, enabling customers to order products through Beamin, Now, and GrabFood when visiting a store wasn’t feasible.
Different market segments require tailored distribution strategies, and Phuc Long Coffee & Tea targets office workers, foreign tourists traveling in Vietnam, and dynamic students with location choices in mind In major cities like Ho Chi Minh City and Hanoi, Phuc Long outlets are commonly found in office buildings, near language centers and schools, in the city center, and within commercial hubs, ensuring convenient access for daily routines and tourism Many shops are placed in easy-to-find locations that offer appealing views and are often close to competitors such as The Coffee House and Highland Coffee, reinforcing visibility in a crowded urban market.
Figure 4.4: Phuc Long Phan Xich Long branch Phu Nhuan district –
Phuc Long Coffee & Tea has opened 82 stores covering all major cities: the most in Ho Chi Minh City, the rest in Hanoi, Lam Dong, Can Tho, Binh Duong, Da Nang, And branches Phuc Long Coffee & Tea is still being created from Phuc Long trading production company limited Currently, the company does not have a franchise policy
The opening time of Phuc Long Coffee & Tea chain is quite early, and the closing time is late (opening time is from 7 am to about 11 pm during the day) to help customers easily enjoy and use Phuc Long's services at the times most convenient to them Specifically, office workers who go to work can visit the shops before work or after work Or young people like students need a space to create, study and work after school.
Figure 4.6: Information and Physical Processes of the Augmented Service Product
Figure 4 5: Number of stores of Phuc Long and competitors
Some supplementary services can be provided to customers by other means, without direct communication Figure 4.1 identifies five elements—information, order-taking, consultation, billing, and payment—that Phuc Long Coffee & Tea offers electronically as supplementary services Everything from advice on choosing drinks to receiving orders, invoicing, payment, and information is handled through intermediary apps like Grab, Baemin, and Now, while store staff may also call customers directly to place orders.
The option for service delivery that Phuc Long Coffee & Tea chooses to serve customers is
Phuc Long invites customers to visit Phuc Long Coffee & Tea chain stores to experience the full spectrum of service quality—from attentive staff and up-to-date equipment to a welcoming space designed to enhance every visit For example, when a customer sits near the window, floor staff will politely ask to pull down the curtain so sunlight does not disrupt comfort or the overall experience This emphasis on direct store visits shows that Phuc Long believes the in-store experience delivers the highest level of service, something that shipping intermediaries and other delivery channels cannot fully replicate, even though products can reach customers through those channels.
Promotion strategy
Phuc Long's Facebook marketing commands a strong presence with a fanpage that has 423,174 followers and features engaging posts about promotions, new product launches, project updates, and seasonal wishes, published in prime time slots that resonate with young audiences The brand also maintains a beautifully designed, highly attractive website and leverages tools like Google AdWords to broaden reach and connect with customers more effectively.
+ Instagram: With more than 8,000 followers and just like Phuc Long Coffee & Tea Facebook Fanpage, interesting articles about promotions and many articles are constantly updated
Public Relations (PR) is the strategic use of corporate communication methods and activities to enhance understanding and build relationships with customers It is a long-term, ongoing process that relies on consistent messaging and engagement By organizing press conferences, product launches, and customer conferences, PR efforts attract the attention of the press and the public, shaping brand perception and trust.
From its early days, Phuc Long has placed people at the center of every decision and product The brand believes that a happy coffee space starts with happy people, and it works relentlessly to bring joyful experiences to its community Phuc Long seeks to lay a foundation that empowers everyone—regardless of gender, religion, or background—to feel happy, proud of who they are, and confident in pursuing their life dreams.
Some projects are done by Phuc Long
On December 22, the Meaningful Christmas 2012 charity drive, organized by Phuc Long, raised more than 70 million VND through the sale of drink vouchers to support poor students at Long Phuoc Primary School in Long Phuoc Commune, Ben Cau District, Tay Ninh Province.
During the Mid-Autumn Festival 2016, Phuc Long donated moon cakes to disadvantaged children across districts 1, 3, 5, 7, and 8, as well as in Phu Nhuan, Binh Tan, and Binh Duong in Vietnam This act reflects Phuc Long's commitment to supporting the communities where it operates, contributing a small part of its responsibility to help those in need.
Lawrence S Ting Charity Walk 2014 is a charitable initiative that helps the city's poor enjoy a warmer Tet, organized annually by the People's Committees of District 7, District 8, Nha Be District, and Binh Chanh District, together with Phu My Hung Development Co., Ltd This community-driven event supports vulnerable residents in time for the Vietnamese New Year Separately, Phuc Long Coffee & Tea has launched the Phuc Long Gift Card, a prepaid card in denominations of 200,000 VND, 500,000 VND, and 1,000,000 VND It provides a fast, cashless payment option at Phuc Long stores and also serves as a convenient and meaningful gift for friends and relatives on special occasions.
Figure 4.7: Phuc Long Gift Card program
- Promotion activities and customer gratitude
Promotions are marketing activities designed to stimulate customers to increase their purchases of products and services by offering tangible benefits such as free trials, discounts, free gifts, or winning coupons These customer incentives help drive higher sales and loyalty, and Phuc Long is no exception to using promotions to attract shoppers.
+ Promotion activities of Phuc Long: Many attractive promotions, valuable vouchers with dense frequency
● Create Membership Card, Receive Attractive Gifts:
With a minimum purchase of 65,000 VND, you can get a Phuc Long Membership Card and enjoy benefits such as annual birthday gifts, points accumulation, and a free glass of water every time you hit 100 points; upgrade your membership to receive a 15% discount on your total bill for 365 days.
Promotion period: valid until the end of August 5, 2021
Promotion form: Customers will immediately receive a voucher of 20k to enjoy Phuc Long tea and coffee with fresh and premium taste when shopping at Vinmart+
Promotion period: from August 31 to September 4
Promotion form: Customers will immediately receive 1 free drink when buying 3 drinks, 2 free drinks when buying 5 drinks The program applies when customers order via Grab app
● Phuc Long 50% off to celebrate Black Friday:
Promotion period: In 2 days November 28 and 29, 2019
Phuc Long's Special Tea promotion lets customers enjoy more of their favorites: visit any Phuc Long store, buy one large drink from the Special Tea group, and you’ll receive 50% off the second large drink in the same group.
Visit your nearest Phuc Long store to enjoy a Free Upsize on drinks for all Phuc Long Membership cardholders VIP and Diamond Members will also receive a bonus gift—either a 2019 red envelope set or a Phuc Long multi-function holder.
● Appreciate to loyal customers Free upsize: –
Phuc Long rewards loyal customers with a Free Upsize on drinks, a small gift to say thank you for their ongoing support The "FREE UPSIZE" program provides a complimentary upgrade on your beverage with every purchase, making each visit a little more enjoyable.
● Offers based on card class
Registering for a Phuc Long membership card automatically enrolls you in the "Member Card" program, unlocking exclusive Phuc Long benefits Members receive a complimentary medium drink of their choice, subject to the program's terms and limits They earn points with every purchase, and for every 100 points accumulated, they can redeem rewards; plus, during their birthday month, they receive a free cake from Phuc Long.
Customers who accumulate 400 points within a 12-month period are upgraded to the VIP Card Class In addition to the standard membership incentives, VIP Card Class holders receive a 10% discount on beverages and cakes and a 5% discount on all other Phuc Long products.
Diamond Card Class: When customers accumulate 1,000 points within a 12-month period, they are upgraded to the Diamond Card Class, gaining VIP card privileges and membership benefits, including a 15% discount on beverages and cakes and a 10% discount on other Phuc Long products, with the possibility of receiving exclusive offers or special invitations to events organized by or for Phuc Long.
Phuc Long employs a professional, dedicated, and hospitable sales team trained in customer-approach and personal selling skills to build and manage strong customer relationships These staff members focus on understanding individual customer needs and delivering tailored solutions by presenting suitable products or services that meet those needs.
Service processes management
From the customer's perspective, the service process captures the experience, feelings, and values received during a visit to Phuc Long Coffee & Tea From a business standpoint, the service process is a structured, multi‑step workflow designed to run smoothly and meet customer needs At Phuc Long, flowchart and blueprint diagrams clarify how the service operates The flowchart traces each customer activity and experience from start to finish, while the blueprint provides a more detailed view of the actual service delivery, including operations, frontline–customer interactions, staff actions, and the connections between frontline and backstage departments to ensure seamless service that aligns with Phuc Long’s service value.
Figure 4.9: The flowchart of Phuc Long Coffee & Tea
Figure 4 10: The blueprint of Phuc Long Coffee & Tea
Below is the general process that we can see when a customer comes and experiences at Phuc Long Coffee & Tea chain stores:
+ Valet parking: Usually, at stores with large areas and big parking spaces, there are 2 to
3 security guards to look after the stores and vehicles for customers Stores with a narrower area have a security guard
Phuc Long staffs the bar with about 2 to 3 team members to take orders, adjusting the number based on crowd levels to keep service smooth A large menu board positioned in front of the bar lets customers quickly view options and streamlines the ordering process Behind the bar, display boards highlight new products, bestsellers, and frequently ordered items to capture attention and help guests make a fast, confident choice.
At Phuc Long Coffee & Tea, bill payment typically happens almost at the same time as placing the order, a practice common in many cafes to speed service and reduce waiting after dining while streamlining payment management Payment methods include cash, credit cards, and electronic wallets, with staff issuing an invoice immediately after the transaction Some shops use a vibrating order card that notifies customers to return to the counter when their order is ready, while others ask for the customer's name and announce it aloud when the order is prepared for pickup.
Customers can choose a comfortable seating area after placing their order and wait for their food or drinks While the kitchen staff prepares the dishes or beverages, they relax in their chosen seat until their order is ready, at which point a vibrating pager or a staff member calls them to collect it.
At Phuc Long Coffee & Tea Shop, after your dishes or drinks are served and brought back to your table, you can comfortably enjoy beverages or dishes while chatting with friends If you’re visiting alone, you can study, work, or use your phone Restrooms are available, and at Phuc Long Coffee & Tea Shop they are very modern, clean, and fully equipped.
During departure, customers are warmly greeted by staff at the door, then escorted to the parking lot where security guards assist them in locating and retrieving their vehicles before they depart.
Physical evidences management
Because the characteristics of the service industry group are abstract, businesses need to have
Tangible evidence lets customers visualize the service, making it a critical driver of their expectations and perceptions of a brand's service quality Physical evidence encompasses packaging, facilities, equipment, and other tangible cues that differentiate a service and shape the customer experience Real-life customer experiences help build a concrete brand image that customers can trust and relate to When leveraged effectively, physical evidence can influence consumer perception so strongly that a brand becomes top-of-mind in its niche or industry.
Physical Evidence is divided into two environments including external and internal
Phuc Long Coffee & Tea showcases a glass-front facade that creates a luxurious feel, with a dominant green color theme accented by warm yellow lighting This design blend establishes a distinctive brand character that resonates with customers and sets Phuc Long Coffee & Tea apart in the market.
Phuc Long's logo relies on blue and white as its primary colors, a design approach that has survived numerous logo changes while preserving the brand's original value The inclusion of a coffee cup emblem and the green tea hue together produce a fresh, bright logo with strong appeal, reinforcing Phuc Long's identity as a tea and coffee brand.
Phuc Long Coffee & Tea provides parking options in front of its shops or in basement levels, with central branches like the Dinh Tien Hoang location in District 1 featuring two spacious parking lots that meet customers’ needs At branches with limited space, parking can fill up quickly during peak hours, often forcing many customers to park in the basements of nearby apartment buildings or commercial centers, as seen at the Pho Quang branch.
Figure 4 11: Phuc Long Coffee & Tea Logo
29 when the parking lot of the shop is overloaded, the security guard will guide customers to send their vehicles to the basement of the Garden mansion apartment
Phuc Long's branches are strategically positioned in picturesque, high-traffic locations across Ho Chi Minh City, notably in city-center districts like District 1, District 3, and District 7, as well as Phu Nhuan and Tan Binh Many outlets are situated at busy three‑way and four‑way intersections or inside large shopping centers Most branches boast two façades and ample space, and the brand maximizes exterior views and storefront design to create a great customer experience.
Figure 4 12: Phuc Long Dinh Tien Hoang Branch, District 1
(source: Phuc Long Coffee & Tea Facebook Fanpage)
Figure 4 13: View at Phuc Long Pho Quang branch, Tan Binh district
+ Color: Phuc Long uses two main colors that are green and yellow Yellow brings antiquity and elegance combined with green to create a feeling of warmth, and freshness
Phuc Long features wooden tables and chairs in a range of designs, including long rectangular tables ideal for groups of friends who study together Seating options are positioned in the corner, near the wall, or behind shop partitions, with square and round tables that accommodate one to four people to meet different customer needs Glass windows and doors create an airy space that helps customers feel comfortable and not stuffy.
Phuc Long's bar area is designed by architects who select wooden materials in varied brown tones to create a warm, natural yet modern ambiance Adjacent to the bar, the shop displays a selection of tea and mugs, catching customers' attention and reinforcing the brand experience to help boost sales.
+ Decoration: Images of nature, related to tea or coffee are included by Phuc Long Coffee
& Tea to create a feeling of closeness to nature for customers, affirming the value that
31 the brand brings In addition, Phuc Long Coffee & Tea shops display many potted plants to help create a fresher and more comfortable atmosphere
Phuc Long Coffee & Tea features abundant charging sockets at every table, catering to customers who come to study and work and need their laptops and phones charged This convenient setup makes it easier for visitors to stay longer, turning power outlets into a key factor when choosing Phuc Long over nearby coffee shops.
- Space: The space at Phuc Long Coffee & tea with the main color tones of green and yellow brings a feeling of both classic and luxury to customers along with modern and youthful designs that have attracted a large number of customers to choose Phuc Long Coffee & Tea instead of other tea and coffee shops The electric light system at the branches is designed with yellow-brown light, highlighting the characteristics of Phuc Long Coffee & Tea Because customers come here to study and work a lot, the music of the shops is always relaxing and calm to create a feeling of relaxation and concentration suitable for customers
+ The dispensers used by Phuc Long are high-class coffee machines of the Astoria line and are located in the area behind the order counter where customers can see them create a professional and high-class brand in the eyes of customers
+ Phuc Long uses paper cups or plastic cups depending on the type of drink that customers order
Figure 4 14: Some designs of Phuc Long Coffee & Tea
+ Using air conditioning, electronic billboards running ads bring customers a sense of convenience and modernity
Phuc Long employs a distinctive two-color branding scheme that pairs green with tea and black with coffee, reinforcing its product identity across packaging, signage, and digital media Although this color pairing is not new, it delivers a highly attractive visual impact that strengthens brand recognition and shelf appeal for both tea lovers and coffee enthusiasts.
Phuc Long's branding is highlighted by a large, eye-catching logo printed on the left chest of a black polo shirt, boosting brand visibility and promotional impact This uniform is enhanced by a short green apron and a black cap featuring the logo, creating an overall look that blends classic appeal with modern style for cohesive, recognizable branding.
People management
Cashier Bartender Service staff Security guard Shipper staff
Figure 4 15: Human resource organization model at Phuc Long Coffee & Tea
Table 4.2: Positions and duties of each position at Phuc Long Coffee & Tea shops
+ Responsible for the business of the store
+ Responsible for revenue; employee management; customer service; issues related to food hygiene and safety; store operation
+ Plan weekly work and submit reports to the area supervisor
2 Shift supervision + Operate the entire store during the assigned shift
+ Check and supervise the operation of the store during the assigned shift under the company's standards
+ Carry out consulting; introduce promotions; order to the POS machine; collect money from customers and give a change to customers
+ Ensure revenue in shifts, report revenue
+ Prepare drinks for customers according to the process and recipe
+ Ensure the hygiene situation of the bar area; the dispensing counter must always be clean, under food hygiene and safety standards
+ Sell tea/coffee products; clean the store; support customers
+ Stand on duty in the area for preparing drinks, product area, upstairs area
+ Tally of goods and products
Watch over customers' vehicles and assist customers in moving their vehicles
Deliver goods and products of the store to customers by motorbike within 3km from the store
4.7.2 The people factor determines service quality
Frontline service employees are the face of a business—the people customers meet first and interact with—so their role directly shapes the customer experience They serve as a key differentiator, a source of competitive advantage, and a major driver of customer loyalty Acknowledging the importance of the "People" factor, Phuc Long Coffee & Tea consistently prioritizes empowering frontline staff and cultivating a customer-centric culture to deliver exceptional service.
Phuc Long Coffee & Tea shops carefully select employees who bring the most relevant skills, styles, and personalities for each role, ensuring the right fit and a high level of service This approach helps build a cohesive team that consistently delivers exceptional customer experiences By prioritizing tailored hiring and ongoing training, Phuc Long fosters a work culture that aligns with the brand’s standards, values, and commitment to quality.
& Tea are always consistent with the company's core values and culture
Upon recruitment, employees participate in the company's training programs to acquire essential skills that ensure the highest standard of customer service For candidates who have submitted their applications, and depending on the vacancy, training is provided by the company within three days before their start date All employees in the Phuc Long Coffee & Tea system have the right to participate in the company's training courses.
The policy on salary and bonuses is a key driver of employee commitment and long-term engagement, influencing whether workers feel happy, dedicated, and motivated at work Transparent and competitive compensation helps attract and retain talent while aligning performance with business objectives The article provides salaries for several positions at Phuc Long Coffee & Tea, illustrating how compensation levels reflect role responsibilities and retention goals.
+ Store manager: from 8 million to 12 million VND/month (not including allowances, revenue bonus)
+ Shift supervision: from 7 million to 9 million VND/month
+ Cashier: from 6 to 8 million VND/month
+ Bartender: from 6 to 8 million VND/month
+ Service staff (full time): from 4.5 to 5 million VND/month
+ Service staff (part-time): from 17,000 to 21,000 VND/hour
+ Shipper staff: from 6 to 7 million VND/month
Employees receive a monthly base salary plus store-specific sales bonuses when targets are met, which encourages better performance and stronger customer service During holidays, including Tet, pay increases by approximately 3 to 4 times and a 13th-month salary is awarded Additionally, long-serving staff at Phuc Long Coffee & Tea have opportunities to advance to higher positions within their department.
+ Create a good working environment for employees, encourage employees to contribute ideas to the business
+ Phuc Long buys health insurance, social insurance, life insurance for all employees (except part-time employees)
Each store has a manager and a supervisor who takes turns to manage the store, in addition to an area manager Phuc Long Coffee & Tea shops always require employees to:
+ Serve, take care and establish a good relationship with customers
+ Follow the recipe and maintain product quality
+ Comply with the company's working regulations
+ Complete the assigned work well, report honestly
- Develop relationships within the company and build company culture
Phuc Long Coffee & Tea encourages employees to develop a relationship of solidarity and attachment within the store, with support between departments
Phuc Long Coffee & Tea embodies an enthusiastic, thoughtful, and dedicated service culture, with staff who maintain a professional demeanor and greet customers with cheerful, welcoming smiles at the counter When customers enter the shop, they’re welcomed warmly, and throughout their visit staff are ready to respond to requests and answer questions to ensure a smooth and satisfying experience While overall service is strong, a few locations report that some security guards aren’t as friendly or proactive in assisting customers with vehicle movements, highlighting an opportunity to reinforce the brand’s consistently welcoming standard.
Evaluation & recommendation
Services product strategy
+ Phuc Long's product quality always brings a stronger flavor than other brands, especially tea products
Phuc Long offers a wide range of tea options on its shop menus, giving customers extensive choices—from oolong tea to peach tea and litchi tea This broad product diversity is Phuc Long’s key strength, setting it apart from other brands in the competitive tea market.
Offering foods in combos or as standalone items, such as bread, helps the brand leave a lasting impression, and because many customers spend long hours in the shop to study and work, convenient food and drink options meet their essential needs during visits.
+ Phuc Long cooperates with e-wallets like Zalopay to bring many great incentives and attract a large number of customers
+ Phuc Long Coffee & Tea has performed quite well the services product strategy Currently, the services product strategy of the brand has no disadvantages.
Pricing strategy
+ Pricing strategy in the mid-range segment, suitable for a wide range of audiences, helps Phuc Long maximize the number of customers
+ There are many different prices for a variety of products to help customers have many suitable choices
+ The applied pricing strategy is fully consistent with product quality
+ The mid-range pricing strategy helps Phuc Long quickly position itself in the highly competitive market, while also limiting the penetration of competitors
+ The prices of od products such as cakes are still relatively highfo
+ Need to adjust the price of food products, or offer many preferential discounts when buying food products with drinks
Distribution strategy
+ Location of branches is easy to find
Phuc Long’s Kiosk model provides a highly convenient buy-and-go experience for customers By distributing customer traffic evenly across all Phuc Long Kiosk locations inside Vinmart, wait times are significantly reduced and orders are fulfilled more quickly, improving overall customer satisfaction.
+ Linking with intermediary apps, convenient for consumers to order when they don't have time to enjoy drinks at Phuc Long Coffee & Tea shops
+ The number of branches and stores is less than other competitors
+ Phuc Long does not have a franchise policy.
+ Continue to expand more business models in more provinces
+ Should have more franchise policy to expand the number of stores nationwide
Promotion strategy
+ Phuc Long's promotions are attractive and have a fairly thick frequency
+ Phuc Long's sales staff work professionally
+ Brand information as well as promotions are updated clearly and quickly on Phuc Long's social networking sites
+ Phuc Long's PR activities are doing quite well
+ There are many projects on special occasions of the year
+ Phuc Long does not focus on advertising on television, newspapers
+ Less participation in sponsorship of sports and arts events
+ Direct marketing activities such as mail or email marketing, door- -door marketing, to phone sales
+ Phuc Long should advertise in both social networks and media, not just focus on advertising on social networks
+ Actively participate in sponsoring sports, music, and arts events
+ Phuc Long should strengthen its direct marketing activities
Service processes management
+ The self-service model optimizes the limitations of the traditional service model, the big point is to avoid wasting resources because the old model forced to hire many employees
Payment is collected immediately after customers place an order to speed up service and prevent delays at checkout This post-order payment approach eliminates the need for guests to wait to pay after finishing their meals and drinks, and it reduces staff travel time since servers no longer have to visit each table to collect payments.
Vibrating order cards have been implemented to regulate the flow of customer service and prevent interruptions, so staff no longer have to go from table to table asking what customers want to drink or eat These devices allow customers to actively place their orders as soon as they enter the store, saving time and speeding up service They are especially helpful for seating areas far from the service counter—upstairs or in hidden corners—where staff previously became confused about where to deliver drinks or meals In short, vibrating order cards streamline operations, improve efficiency, and enhance the overall dining experience by ensuring orders are taken and delivered smoothly.
+ The preparation time is quite long
+ When in a crowded situation, it is difficult for staff to control the process of preparing and delivering products to customers There is still confusion and wrong dishes for customers
+ When the store is crowded, the store's hygiene is not guaranteed because the staff has not been able to clean up after the previous customer left
+ Should allocate more staff at peak hours to avoid errors affecting the process of using services and products of customers
Invest in modern bartending equipment and elevate staff skills through targeted training to speed up drink preparation and minimize customer wait times Upgrading tools and delivering ongoing courses helps maintain consistent quality while increasing throughput, resulting in a faster, smoother guest experience during busy periods This integrated approach boosts operational efficiency, staff confidence, and overall customer satisfaction.
+ Receive comments and feedback from customers to handle and fix errors that still occur in the process of customers using products and services at Phuc Long Coffee & Tea shops.
People management
+ Attractive salary and bonus policy, specifically the salary for each position at Phuc Long Coffee & Tea are quite good and equal to the general level
+ Having good benefits policy for employees
+ Dynamic working environment with many career advancement opportunities created fairly for members
+ Thorough recruitment and training policy
+ Creating opportunities for employees to contribute ideas and encourage unity in the working environment
+ The attitude of security guards in some branches is not friendly and not enthusiastic to help customers in moving customers’ vehicles
Phuc Long Coffee & Tea should implement a clear security guard policy to curb unfriendly attitudes and failures to fulfill duties The policy should set sanctions for violations, including termination after more than three instances, to enforce accountability It should also establish rewards and punishments for employees who detect and report misconduct by security guards, preventing colleagues from covering for one another By putting these measures in place, Phuc Long Coffee & Tea can improve service quality, strengthen store safety, and protect its brand reputation.
In addition, the following measures can be used:
⬧ Install cameras to check how the security guards work
⬧ Secret customers to check the security guards' attitude and way of serving customers.
Physical Evidence
Ho Chi Minh City hosts a large population of students and professionals who need a focused environment to study and work efficiently Phuc Long meets this demand by offering a cool, airy space that enhances concentration and productivity for both study and work.
+ The shops' design is modern, the open space always creates a comfortable feeling for customers when sitting at the shop
+ At each table, it is always designed with a power outlet below,convenient for customers when they need to charge laptops, tablets, phones,
+ There are many options of tables and chairs such as single tables for two people, long tables for large groups,…
+ Many branches of Phuc Long are facing the problem of lack of space for customers
The situation that customers come to the shop and have to leave because of running out of seats happens often in small branches, especially on weekends
+ Besides the situation of running out of seats for customers, there is also the problem of
Phuc Long Coffee & Tea's parking lot frequently experiences space shortages, leaving customers with the option to park at nearby shops or pay for parking when the on-site lot is full This parking congestion can negatively impact the customer experience and may push visitors to seek alternatives, underscoring the need for clearer parking guidance, better space management, and consideration of nearby parking options during peak hours.
Tea shops are full That gives a feeling of dissatisfaction about the service of Phuc Long
+ If a branch often has a shortage of seats, Phuc Long should consider expanding that branch to meet the needs of customers and increase revenue
+ Cooperate with other parking lots to keep vehicles for free for customers
This study opens with a concise justification for the topic choice and a clear statement of the research objectives, followed by an overview of Phuc Long and Phuc Long Coffee & Tea, both established as limited liability companies, to help readers understand the subject matter Identifying the research object and defining the objectives guides the analysis toward a focused, effective study The article then provides basic, general information about the Vietnamese coffee shop chain market to situate readers and frame the context for evaluating trends, competition, and opportunities in this sector.
In this section, direct and indirect competitors of Phuc Long Coffee & Tea are also highlighted
Section 3 identifies Phuc Long Coffee & Tea's target customers and outlines the brand's service positioning strategy The analysis then applies service marketing theory to review the marketing mix 7P activities—Product, Price, Place, Promotion, People, Process, and Physical Evidence—implemented in recent years, detailing the strengths and limitations of each approach Based on this evaluation, practical recommendations are proposed to enhance the 7P mix to support future brand development, including refined product offerings and quality controls, value-based and competitive pricing, optimized distribution through stores and digital channels, targeted promotions and loyalty initiatives, strengthened frontline service and staff training, streamlined service processes, and enhanced physical cues such as store design, packaging, and in-store signage The goal is to elevate the customer experience, reinforce brand positioning, and drive sustainable growth for Phuc Long Coffee & Tea.
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