lOMoARcPSD|39690304 THE FINANCIAL UNIVERSITY OF FINANCE & MARKETING Class: CLC_20DMA09 Course code: 2111702006009 CREATING A MARKETING PLAN FOR COZY’S NEW PRODUCT - SELF BREWED MILK TEA IN PERIOD 1/2022 – 12/2022 Majors: MARKETING Specialized: MARKETING MANAGEMENT Ho Chi Minh city, 2021 i Downloaded by Banh Mi (banhmi01@gmail.com) lOMoARcPSD|39690304 THE FINANCIAL UNIVERSITY OF FINANCE & MARKETING Class: CLC_20DMA09 Course code: 2111702006009 CREATING A MARKETING PLAN FOR COZY’S NEW PRODUCT - SELF BREWED MILK TEA IN PERIOD 1/2022 – 12/2022 Instructors: Master Đặng Huỳnh Phương Student Implementation: Name Student Code Trương Quốc King 2021008461 Nguyễn Hoài Nam 2021008483 Phạm Hoàng Yến Nhi 2021008309 Ho Chi Minh city, 2021 ii Downloaded by Banh Mi (banhmi01@gmail.com) lOMoARcPSD|39690304 GUARANTEE We hereby declare that this is our own marketing plan under the guidance of Mr.Dang Huynh Phuong. Our marketing plan for “Cozy’s new product - Cozy Self Brewed Milk tea” is honest and has not been published in any form before. The data in the tables for analysis, comments and evaluation are personally collected from different sources with clearly stated origins. If we detect any fraud, we will take full responsibility for the content of our essay.
iii Downloaded by Banh Mi (banhmi01@gmail.com) lOMoARcPSD|39690304 ACKNOWLEDGEMENT First of all, we would like to express our deep gratitude to my teacher Mr.Dang Huynh Phuong, who wholeheartedly guided us throughout the course of studying Marketing Management. He helped us orient the topic, layout the lesson, correct the content and present the lesson in a scientific and effective way. Although there were many difficulties in the process, we tried our best to complete the lesson to the best of our ability. However, it is inevitable that there will be shortcomings, we’re looking forward to receiving comments and evaluations to be able to improve.
Finally, we would like to wish all the teachers in the Faculty of Marketing good health, always success in your career as well as in life and keep enthusiasm to continue to carry out your noble mission of conveying knowledge for future generations. Thank you sincerely! iv Downloaded by Banh Mi (banhmi01@gmail.com) lOMoARcPSD|39690304 EXECUTIVE SUMMARY Cozy tea brand today is no longer too strange to Vietnamese consumers. They are a business that always tries to bring consumers delicious and safe tea cups. Today, with the extremely complicated Covid-19 epidemic, it has partly affected consumer behavior in consuming its products.
Today's consumers tend to enjoy homemade products for processing, partly because of the epidemic, partly because they care more about their health. What if consumers could make themselves a cup of milk tea at home? Therefore, our group decided to implement the topic "Creating a Marketing Plan for Cozy’s new product – Self brewed milk tea in period 1/2022 – 12/2022”. And the work will be discussed with the structure of the thesis consisting of 6 main chapters: Chapter 1: Ecological Products Joint Stock company overview Chapter 2: SWOT & Macro - Environmental Analysis Chapter 3: STP Strategy Chapter 4: Marketing Mix Strategy Chapter 5: Action plan & Finance v Downloaded by Banh Mi (banhmi01@gmail.com) lOMoARcPSD|39690304 TABLE OF CONTENTS GUARANTEE. iv EXECUTIVE SUMMARY.
1 ECOLOGICAL PRODUCTS JOINT STOCK COMPANY OVERVIEW. 3 SWOT & MACRO – ENVIRONMENT ANALYSIS. SWOT OF COMPANY. CURRENT MILK TEA MARKET SITUATION.
Size and growth rate of Vietnam's milk tea market. Trends of milk tea consumption. Competition in the Vietnamese milk tea market. SWOT OF PRODUCT.
11 MARKETING MIX STRATEGIES. Product support services. Types of distribution strategies. Distributor incentive policy.
Distribution channel management. MARKETING COMMUNICATION STRATEGY .16 vi Downloaded by Banh Mi (banhmi01@gmail. 20 ACTION PLAN & FINANCE. 31 vii Downloaded by Banh Mi (banhmi01@gmail.com) lOMoARcPSD|39690304 LIST OF PICTURE Picture 1.1: Logo of ECO Products Company .1: Positioning Cozy's products with other brands .1: Cozy milk tea Packaging .4: Cozy’s distribution channel.
14 viii Downloaded by Banh Mi (banhmi01@gmail.com) lOMoARcPSD|39690304 LIST OF TABLE Table 3.1: Divide Vietnamese market of Cozy .2: Cozy’s social networking channel. 17 ix Downloaded by Banh Mi (banhmi01@gmail.com) lOMoARcPSD|39690304 CHAPTER 1 ECOLOGICAL PRODUCTS JOINT STOCK COMPANY OVERVIEW 1. INTRODUCTION Eco Products Joint Stock Company ECO Products is a New Generation tea group, a leading manufacturer and exporter in Vietnam established in 2003. With the tea material area developed methodically in most of the famous tea regions of the country, ECO Products has invested in the most modern technologies to build the Cozy brand.
With almost 20 years of experience in the tea industry, Cozy has become the leading Vietnamese tea brand in Vietnam.1: Logo of ECO Products Company 1. Vision Constantly creating and improving to bring tea product lines with attractive, unique and different flavors to satisfy the needs of Vietnamese consumers to enjoy tea. In addition, the company also has a policy to take the lead in creating modern consumer trends and styles, committing to bring clean, environmentally friendly and healthy tea products to consumers. Core values The Cozy tea brand has oriented its business to combine the quintessence of Vietnam and modern technology with the adoption of world tea cultures to create truly valuable products and imprint not only in the domestic market but also ready to make a mark in the international market.
Besides, they are also committed to bringing clean, environmentally friendly and healthy tea products to consumers. No matter who you are, at any age, prefer traditional or modern tea flavors, there are product lines to satisfy your tea drinking needs. Mission The mission of Cozy tea and the ECO Products are to become a leading corporation in Vietnam in the field of tea, bringing the Vietnamese brand off in the integration period, to not only succeed in the country but also reaching out to the world market, affirming the "Pride of Vietnamese Tea". Marketing Objectives As a Vietnamese tea brand with nearly 20 years of age, Cozy is loved and known by many people.
Cozy is too famous for products such as tea bags, instant tea. However, those 1 Downloaded by Banh Mi (banhmi01@gmail.com) lOMoARcPSD|39690304 products are almost unable to meet the needs of the current Z generation youth, at the time of 2018 the epidemic had not broken out, milk tea was always the top favorite product of young people. So, with home-brewed canned milk tea, we hope to reach about 60% - 80% of today's young people, especially students. Brand Objectives Expanding cozy's brand awareness among Vietnam's Gen Z.
Developing into a tea brand for both students and college students. Always at the forefront of consumer trends, providing a full range of traditional and modern tea products, suitable for all ages. Besides, it strives to become the number 1 tea brand in Vietnam and is known in many countries around the world. Financial Objectives In the first year, sales of about 9,088,500 tea boxes earned about 318 billion VND.
Marketing costs are about 5% - 10% per year. 2 Downloaded by Banh Mi (banhmi01@gmail.com) lOMoARcPSD|39690304 CHAPTER 2 SWOT & MACRO – ENVIRONMENT ANALYSIS 2. SWOT OF COMPANY Strengths • Have a long existence: With nearly 20 years of experience in the tea industry, Ecological Products Joint Stock Company has developed Cozy becoming the leading tea brand in Vietnam. • Advanced and modern production lines: Imported processing and packaging lines according to modern and leading technology in Italy, Germany and Japan, having the leading scale of machinery in Southeast Asia.
• Recognized in the international market: Won a gold medal in the “International Tea Competition” held in Canada. Won the award "Typical Brand of Asia - Pacific 2018". • Having a diverse distribution system: It has appeared in almost every region of the country. Besides Cozy also cooperates with big distributors such as Tiki, Highland Coffee, Lotte, Coop mart, Central Group Vietnam,.
• Source of quality ingredients: Cozy has invested in many areas of clean tea ingredients and cooperated with farmers in traditional tea areas. The process of taking care of tea from planting to harvesting, preliminary processing is accompanied by enterprises, and guides farmers carefully to ensure that they get the best ingredients. Weakness • Lack of innovation: Although Cozy has the advantage in product quality, they have little improvement, lack of freshness and modernity. • Difficulty in managing distribution channels: The distribution is too wide, making distribution channel management difficult.
Opportunity • Choosing the right audience: The generation that Cozy targets is the Millennial generation (from 25-35), with convenient refreshments and drinks habits. • Green living trend: With the emerging movement in green living, healthy living, consumers are tending to use products from nature. • Going beyond the international market: Having gained international recognition, won many awards in tea competitions, Cozy has succeeded in building a good image with international friends. • “It's time for Vietnamese agricultural products to take off”: The success story of Cozy Jasmine Tea in the US market is expected to open doors for Vietnamese agricultural products to confidently enter the world.
Experts also affirmed that this 3 Downloaded by Banh Mi (banhmi01@gmail.com) lOMoARcPSD|39690304 is the right time for Vietnamese agricultural products to "take off", with appropriate steps. Threats • The alternative: Cozy brand creates products that are packaged teas, this is a market that can be said to have fierce competition. • Increasing competition: When Vietnamese agricultural products have been recognized, new businesses will appear that can compete directly with Cozy. CURRENT MILK TEA MARKET SITUATION 2.
Size and growth rate of Vietnam's milk tea market Milk tea has appeared in Vietnam a long time ago, but it was not until 2013 that this market really developed and exploded with a series of brands both at domestic and international. According to a beverage market study conducted in 2018, milk tea ranks second among the most popular beverages in the Vietnamese market, after ground ice drinks and above coffee. The biggest drinkers of milk tea were women (53%) and young people aged 15 to 22 (35%) (Marketing AI, 08/2020). Despite being a potential market and tending to continue to grow.
However, with the emergence of Covid-19 at the end of 2019, the milk tea market was also affected quite badly. According to some food and beverage (F&B) industry reports in 2019, the milk tea market in Vietnam will slow down in the near future and is expected to remain at only a natural growth rate of 5. That means the growth rate dropped sharply to only a quarter compared to the peak period two years ago, when the growth rate reached 200%. In 2019, 4 high-end milk tea brands: The Alley, Koi Thé, Gong Cha, Phuc Long all expanded their market share throughout the country.
But a year later due to the great impact of the COVID-19 epidemic, many milk tea brands had to relocate and have to return the rental premises. Although a new normal has now been established, people are still afraid to eat in crowded places. ð This is a great opportunity for home-made milk tea products. Trends of milk tea consumption According to a recent Nielsen study, consumers are being affected by four new patterns of behavior and socioeconomic patterns that are forming after the pandemic.
According to these models, in the future, consumers will tend to buy health products, spend on more necessary products and form a lifestyle at home. While it has been damaged by Covid, there is no denying that it opens a new era. The majority of consumers will pay more attention to the issue of immune enhancement. And when it comes to the basic ingredients in milk tea processing, black tea is the leading ingredient, followed by green tea, olong tea and white tea.
High in vitamins E, C, B2, minerals and rich in antioxidants (much higher than green tea and olong tea), 4 Downloaded by Banh Mi (banhmi01@gmail.com) lOMoARcPSD|39690304 black tea helps reduce the risk of cardiovascular disease, reduce cholesterol levels, lose weight, is good for the digestive and immune systems.