Secondly, their Family Secret Receipt is one of the most reason that attract the customers, there are no restaurant can make perfect receipt like them. Thirdly, the price for each meals is not too expensive and it suitable for single meals or group meals. Moreover, TSR also create many special products for special festive occasions such as Easter Day, Lunar New Year, New Year, Christmas… The company plan to establish the brand of The Chicken Rice Shop in Vietnam market by January 2013 to bring the Malaysian culture into Vietnam. In this report, I will recommend an overall best practice of marketing approach for
The Chicken Rice Shop in Vietnam. It includes: The concept process of marketing: the various elements of the marketing process, the benefits and costs of a marketing orientation for The Chicken Rice Shop Vietnam. The concept of segmentation, targeting and positioning: demonstrate macro and micro environment factors, segmentation, targeting strategy, show the buyer behavior and propose new positioning. Explain each of the various elements of the marketing process needed to be considered by “The Chicken Rice Shop” In the marketing process, Needs is the most important concept.
Needs is a feeling of absence something. Needs range from basic
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Understanding needs and wants is an issue in the fields of ileitis, social science, and philosophy. Marketing strategy, marketing mix decision and implementation and controls. Situation analysis Situation analysis requires a thorough study of the broad trends within the economy and society, as well as a detailed analysis of markets, consumers and competitions. Marketing segmentation is considered, and also an understanding of the organization’s internal environment and its particular strength and weakness.
So that, by analyzing situation, The Chicken Rice Shop could have more attention from customers than the other firms. Moreover, there are many other ways for the many to analysis, could be added as a structure of situation analysis: “5 C Analysis – company, customers, competitors, collaborators, climate. Company represents the internal situation; the other four cover aspects of the external situation” “PEST analysis – for macro-environmental political, economic, societal, and technological factors. A PEST analysis can be used as the “climate” portion of the 5 C framework”. SOOT analysis – strengths, weaknesses, opportunities, and threats – for the internal and external situation. A SOOT analysis can be used to condense the situation analysis into a listing of the most relevant problems and opportunities and to assess how well the firm is equipped to deal with them”. Strength (internal): International firms Have experience in doing business Family secret receipt Satisfy Malaysian Weakness (internal): Face with the difficulty in doing business in Vietnam because of having not many experiences.
Opportunities (external) Plenty of labor resources Vietnam is a developing country Threats (external) There are many competitors in Vietnam market Depend a lot on social and culture local such as Vietnamese eating habits or salary… Marketing strategy Marketing strategy is the way in which organization meet their market objectives by manipulating the interactions of the components of marketing mix to achieve optimum customers’ response. The company could be developed with a clear and smart marketing strategy.
The Chicken Rice Shop would have research about the market and the customers in Vietnam and from that, TSR could find out the strategy, vision to achieve. By doing that, the company could identify the main clear segments of the market and decide to pay for each segment as effect as possible. The marketing strategy includes: segmentation, targeting and positioning. Marketing mix The product minx’s components are Product, Price, Promotion, and Place.
Product The firm produce the product that match with the needs and wants form the customers, so that the firms have to identified the characteristic of the product satisfy the customers which they tend to perform to the market Price Price is the cost of product the customers have to pay for. Let is defined by some factors include market share, compete, material cost, the comments of customers… To fix a price for the products in a competitive environment is not only important but also challenging. If the price is too low, the firms have to raise the product base on manufacturing cost to get benefit.
If the price is too high, the customers will tend to buy from the other competitors. Promotion Promotion is all activities to ensure that the customers know and have good impressive about firms’ products or service so they could buy it. Those activities include advertising, catalog, make relationship with customer… The Chicken Rice Shop can advertise their product on TV or newspaper, magazine, they can also deliver product to the customers Place: Place is where to sell products. It could be call allocated channel. It could be any real store or online store.
Supplying product into right place and right time of demands is one of the most important parts of marketing process. Implementation and control: After strategy and every plans are computed and draw up, we need a full and detail plan to implement it in the right way. Control involves setting quantifiable targets, and then checking performance against these targets. If necessary, remedial action is taken to ensure that planned and actual performances correspond. II. The benefits and costs of a marketing orientation approach for “The Chicken Rice Shop”, Vietnam.
Vietnam is a developing country, Vietnam and Malaysia is both in SEAN and some culture of two countries are the same; operating “The Chicken Rice Shop” in Vietnam is a very right decision of the company HALL. Vietnamese popular is almost young and they tend to integrate with the world so that there would be many chances for the company to develop here. Marketing orientation approach is a good way to bring the products’ information to the customers; it brings benefits and costs for the company. 1 Benefits Firstly, market research is a very important part of marketing orientation approach or the company to develop in Vietnam.
When operating TSR in Vietnam, the company should have research about market and customers to find out the needs and wants from the market for fast-food. Then, the company could focus on the customer target, develop product… Specifically, there are many foreigners with plentiful taste entered in Vietnam, some of it is welcomed but some are died. The about this in order to have the right way to make it to suitable for Vietnamese. Secondly, customer loyalty is also very important for a company because have customers do not mean that they will loyal with you forever.
Moreover, Vietnamese is very curious and easily to change their stand point. There are many experience fast food restaurants such as Lotteries, KEF, Chicken 99, Chicken 69, BBC Chicken. If The Chicken Rice Shop can open a business and develop in Vietnam, so the others company could do it, too, all companies have same opportunities to develop in Vietnam. So that, product quantity and customer service is very important for the company to have loyalty customers, they are the people who can help TSR develop by: Come to TSR restaurants many time Tell friend the good quality of products and good service
Thirdly, the brand of the company is one of very important part of the marketing orientation approach. Once the company’s brand earn people’s trust, it makes the comparative advantage for the company and make more profit.. Therefore, to satisfy customers and make them feel comfortable when pay money for Tact’s product, the company must have high quality products and good service. It is the basic point for the company to compete with the other competitors. 2 Costs When the company is operated, the costs for marketing process are one of the biggest parts in the company’s budget.
The costs focus on marketing structure and service. The most expensive things for marketing process is due to boogieman for human resource, for researching, advertising activities, etc. Secondly is the cost for product development, promotion, distribution. In addition, besides having loyalty customers, TSR need to invest in location such as building or kiosks or invest more for restaurant to keep a long-relationship with customers. Therefore, running business in Vietnam is a good opportunity for TSR to develop powerful.
Although there are some threat and weakness at the beginning such as imitators in local or lack of doing business in Vietnam, the company could develop if TSR could take full advantage of the strengths and have good plan. THE CONCEPT OF SEGMENTATION, TARGETING AND POSITIONING I. Macro and micro environmental factors which influence marketing decisions of The Chicken Rice Shop is an international company, operating the brand in Vietnam, a develop country, is a very good chance for TSR to earn money.
However, there are many factors that impact business activities of the company; they are separated into two types: micro and macro environmental factors. . Micro environmental factors There are many micro factor that impact The Chicken Rice Shop’s activities in Vietnam. They are customers, employees, customers, suppliers, shareholders, media, and competitors. But for The Chicken Rice Shop, we focus on SOOT Analysis: Strengths (internal) Weaknesses (Internal) Good service quality Good price experiences.
Opportunities (external) Vietnamese people is younger and they tend to use fast food or go to the restaurants salary… Coming from a country in Asia – Malaysia, The Chicken Rice Shop is an international firm to Vietnamese people. As we can see that, Vietnamese are always interested in international firms in many fields such as cosmetics, furniture, foods, information technology… Because in Vietnamese mind, international brand is better than domestic TSR also is a new brand that could attract Vietnamese people.
Besides, TSR have operated the brand in Malaysia since 1998, it’s 13 years in doing business in this field so that this is the important strength for the company to Malaysian, so that for the almost same culture like Vietnam, TSR could satisfy fastidious customers. With the suitable price and good service, they help the many to attract the customers and also have more loyalty customers. Weakness (internal) Because this is the first time doing business in Vietnam so that The Chicken Rice Shop is lack of experience although has long-time experience in doing business in Malaysia and Singapore.
However, the company could solve this problem vastly by try to adapt to the business environment in Vietnam. Opportunities (external) Vietnam is a develop country, it’s a good opportunity for The Chicken Rice Shop operating in here with many commercial center which is in building and TSR could open the kiosks and marketing for their products. Moreover, Vietnam has plentiful of labor resources so that the company does not have to spend much money on hiring labor. In addition, Vietnamese population is become younger.
With the effect of information technology and developing of country, the people in all over the world in general and in Vietnam in private become lazier. So that, the young tend to go to the restaurant to have meal or use fast food instead of cooking meal as traditional. As we can see that, Vietnam is a develop country, so, there are many international brands or firms come to Vietnam and running business and it attract all Vietnamese people by the good qualities and excellent services.
This is the big threaten one that effect on running business in Vietnam for The Chicken Rice Shop. The company should reduce this problem by improve the quality and good service and have unique program to attract more customers. Besides, by operated business in Vietnam, the company also has to face with the different in culture and habits between two countries. However, this could be the new brand for Vietnamese people and welcome it. 2. Macro environmental factors A scan of the external macro-environment in which the firms operated can be expressed in terms of PEST.
PEST stands for Political, Environment, Social, Technology. Political Vietnamese policy is stable, this is the most important thing for TSR when decide to run business in Vietnam. However, the company should know about some policies for the foreign firms who want to operate business in Vietnam. First of all, I want to mention about discorporate taxation in Vietnam. The general rate income tax for the enterprises is 25%, it’s a higher rate than Singapore (17%)and Taiwan (17%), the two countries that TSR has very successful business.
Maybe the action could be the barrier for TSR at the beginning in Vietnam, the company will have many chance to make profit by have unique marketing process and best service to customers to repute their new brand in all three region in Vietnam. Secondly, the Employment Law is also needed to care about. This policy protects labor, help the labor to have their authority when working. The employees or workers have authority to enjoy their interests such as suitable salary for each Job, each Job environment to improve their skill… He Employment Law also helps TSR to satisfy heir employees and have loyalty employees and enthusiasm in doing their tasks. Therefore, with the information about the policy of Vietnam about doing business, TSR has totally capable doing business in Vietnam. Economy The economy factor includes many elements such as Gross Domestic Products (GAP), exchange rate, interest rate, quality of infrastructure… However, the two factors about economy that I think impact direct on TRUST when doing business inventive, they are GAP, economic growth rate and exchange rate.
According to the Government Statistic Office, the Gross Domestic Products in the iris period of 2012 (compare with its in 1992) rises 4% than 2011, it’s lower than 2011 about 5. 57%. In general, the service field increased 5. 31%, it contribute 2. 40 point in rate. The economic growth rate in the first period catches the lowest because almost all fields have to face with the difficulty in manufacture, business and consumption. The exchange rate is also important to each firm when invest or operating business in the other countries.
The currency between two countries is different 1 ringing = 6,908. VEND and 1 USED = 20,860 VEND. It’s a problem for the company to account the capital, cost for material, profits… Moreover, the value of Vietnam Dong is losing so that it impacts a lot for TSR when doing business in Vietnam. The ingredients to make meals of TSR is not Just from Malaysia, the chicken and rice could be find easily in Vietnam but the company has to find a good sources to buy because there are many shop, store or kiosks sell not good raw materials that have not certificated.
The higher quality of material, the higher cost it is but it could satisfy all the customer and the company could be better than KEF or BBC (the resources of chicken of KEF and BBC are not really good *http://venerates. Et/gel/DOI-song/ 2011/01 /3ba2588eF), the other ingredient for the meals which could not find in Vietnam and make the unique for the products, the company has to import from Malaysia. It’s a right decision TSR for choosing Vietnam is the potential market to running business.
Social There are many elements in the social environment factors; here are some of the factors that could impact a lot on TRUST when doing business in Vietnam. Firstly, Vietnamese population is become younger. As being mention before, the world is more and more develop with the development of the information technology, t makes people becomes depend more on machine so that the young people become lazier, so that fast food is the first choice for them when feel hungry.
So, TSR could become the first choice of young people. Secondly, although Vietnam and Malaysia are both in Asia and have something same in culture, eating habits could have some different point. However, the new brand from Malaysia – The Chicken Rice Shop could bring the new eating habit to Vietnamese people. Thirdly, Vietnamese people have good thinking for the international products because of the high quality with the thinking that “the more it cost, the more quality it is”.
The international brand from Malaysia – The Chicken Rice Shop will attract a lot of customers in Vietnam because of the curious of people and the unique name of Therefore, there are many competitors that came to Vietnam before and satisfy Vietnamese people, so that it is the threat for the company at the beginning of doing business. With the unique brand and unique products, The Chicken Rice Shop promise to bring a new trend about fast food to Vietnam. Technology The technology factors influence the activities of TSR quite much.
By using technology, the company could create more dishes that nice and suitable for everyone. So that, the company’s customers will tell to other people, it’s very good opportunity to improve the reputation of the company. Moreover, using technology in process of cooking will make the clean products and safety for the customers. It affirms the high quality of product with lower cost in process. So that The Chicken Rice Shop could make profits In addition, TSR could use the information technology to advertise their products with lower cost than the other advertisement.
Technology factor is a very important part for the company to develop. II. Propose segmentation criteria to be used by “The Chicken Rice Shop” for its rodents in difference markets in Vietnam. Segment marketing is the practice of defining your customers’ needs and wants by placing them in specialized groups that receive different attention and different levels penetrating. The way customers are segmented by a company can vary from business to business but generally include areas such as income, regional location, sex, socioeconomic factors, and previous buying or business associations.
Once the groups are designed, the object of segment marketing becomes unified; to offer customers marketing strategies and offers that are designed with their group heartsickness in mind to produce profitable results for the company. Geographic Vietnamese population is big and there are three regions that have different demands and norms. So that, Vietnamese market could be divided into three supermarkets, they are Northern, Middle and Southern. In 3 regions, there are some focus market: Hanoi, Dang, Ho Chi Mini City respectively.
Ho Chi Mini City (HOC) was the Pearl of Asian in the past and it is one of the biggest commercial centers of Vietnam. Hooch’s people have the liberal in life style so that they are easily to get the new things and acquire, inquire; their taste has a lot of efferent flavors so it’s easy for the company to satisfy Hooch’s customer. Moreover, in general, the economy of Ho Chi Mini City is the fastest development in whole Vietnam. So that, the first market TSR should choose to run business is in the South of Vietnam, especially HOC.
Hanoi is the capital of Vietnam, so Hanoi has a big market and competitiveness. Hanoi also attracts many visitors from all over the world with toehold quarter and the most peaceful in the world. However, to serve to visitors is not enough; TSR also has to serve the local people. Hansom’s norms are quite old and the thinking of people is art to changes and they respect the value of traditional. So that, to open kiosks or restaurants in Hanoi are very good but the company has to have many research about Hansom’s people’s taste and flavor to satisfy the customers.
The Middle of Vietnam has the demands for fast food lower than the others Southern of Vietnam, TSR will expand market into the Middle of Vietnam to get more profit. Demographic The market that is segment by Demographic will include age, gender, income, social class, etc… Age:Chicken and rice is very interesting food of Vietnamese people so that TSR is suitable for all Vietnamese from old people to children. The products of the company is not only fry chicken likes KEF or BBC or Lotteries (some of the most famous fast food restaurants in Vietnam) but also boiled chicken, a kind of traditional dish for Vietnamese people.
We can see that Tact’s products are unique and could attract customers in every age. Moreover, the secondary dished such as salads or breads are also interest kids, young and young adults Gender: the products of TSR are suitable for both male or female. According to the scientist, eating chicken provide for the body albumin, fatty substance, vitamin A, 81, 82, acid, calcium, hockshop, iron… This is kind of high quality food that assist for metabolize and digest. Income:the value meals range from 4. $ (= VENDED) for a singer person to meals for group of 6 at $33 (=686400VND). The price for chicken and rice for single meals or group meals are quite high with income of Vietnamese people. To compare with the price of the other brands in Vietnam, the price from TSR is also higher. So that, to attract the customers, besides having unique products to serve, TSR should re- account the cost of process and bring out the suitable price for all people. Cryptographic Chirography’s is the science of using psychology and demographics to better understand consumers.
Cryptographic segmentation: consumers are divided according to their lifestyle, personality, values. People within the same demographic group can exhibit very different cryptographic profiles. As being mention on geographic part, TSR could separate the market into 3 regions; they are Northern, Middle and Southern base on the people’s lifestyle and personality each region. Firstly, the Hanoi-resiliently is difference from the other region. As we know that Hanoi is an old city but mix a little bit modern, the culture of Hansom’s people is veiled, elegant and they are very friendly.
However, the life-style of Hanoi-risers quite strict and has old thinking. The people here have thinking, life-style relate to traditional especially in eating habit. People usually have at less 1 meal with family, it time for them to gather after a long working day. Moreover, Hanoi-errs would have lunch and dinner with their family in steady of eating outside. Why? Because they want to save money to do the other things and they think that the quality of restaurant outside cannot better than home cooking. It’s hard to change the habit of Hanoi-errs.
However, Tact’s product is a new brand and it could make Hanoi-errs loves their product of the unique and multiform and easy to eat. Secondly, mention about the Middle of Vietnam, the people who live in Middle is very rustic because their main Job is about agriculture. The demand of people here to eating outside is low. They have to do so hard to earn money so that they want to use money very useful. So, to running business in the Middle of Vietnam, the company needs to have research and wait for more develop here. Lastly, in the southern of Vietnam, especially HOC, the people have a comfortable