VIETNAM NATIONAL UNIVERSITY, HANOI SCHOOL OF BUSINESS

NGUYEN MINH DUC

VIETMAC FAST FOOD MARKETING RESEARCH AND RECOMMENDATIONS

Major: Business Administration Code: 60 34 05

MASTER OF BUSINESS ADMINISTRATION THESIS

Supervisor: Dr. Tran Doan Kim

Hanoi 2011

ACKNOWLEDGMENT
The first person I want to thank is Dr. Tran Doan Kim. He with his caring, enthumsiasm had gone with me during my whole research. He had made extremely important contributions at the beginning of the research e.g. topics selecting, thesis outline, research planning, identify research methods, and completing this study. I deeply want to say thank to him. After research topic selected, outline improved, I started to design the questionnaires. This task had received great contributions from Dr. Tran Doan Kim and Mr. Ngo Trong Thanh, chairman of Vietmac, he is also CEO of Mancom consultant. Vietmac people had supported me much in information providing and conducting marketing surveys during five months of researching. I am so grateful to Mr. Ngo Trong Thanh and his team from Vietmac. Supporting this thesis, I used lectures, books, documentaries provided by Professor Zeynel Kasapoglu Marketing management, Professor Ha Nguyen Entrepreneurship, Professor Nguyen Van Thang Strategic management, Professor Edward Mc.Alvanah Sales management and other lecturers from HSB. By those words, I want to say thanks to them. I also want to say thanks to my friends MBA 7 classmates, Hanoi School of Business, whom I called for consulting during this thesis; they are Ms. Nguyen Thi Yen Vy, Tran Thuy Linh. They had supported me in developing the draft and had contributed some crucial ideas for this research. By this page, I also say thanks to Ms. Nguyen Thi Thu Trang, University of Melbourne, she had helped me in editing the draft. Finally, I, by my heart, thank my family and my company, Thai Binh White cement very much. They had created the best condition for me to complete this research.

ABSTRACT

VIETMAC FAST FOOD MARKETING RESEARCH AND RECOMMENDATIONS

Nguyen Minh Duc MBA Candidate, 2008 2010 School of business Vietnam National University, Hanoi Supervisor: Dr. Tran Doan Kim November 2011, 109 pages

Recently Vietnam fast food market is growing as a phenomenon of consumer market. You can see fast food restaurants at almost crowded intersections or at buildings, supermarkets, and trade centers. However, this lucrative market does not belong to Vietnamese investors, it is the playing field of international brand names like KFC, Lotteria and Jollibee. Vietnam fast food products are still not success in this market though some investors had tried to penetrate into this market. To win this market, firstly investors need more and more information about it to deal well with it. This research can point out information about the needs of market, customers habits, satisfaction, about marketing mix (price, product, place and promotion of fast food market), about competitors, about market structure and other more. Last year, Vietmac, a new Vietnam fast food brand name, had developed and tested its product rice burger to market. Beside general information about Vietnam fast food market, the managers need more specific information about behavior of ii

customer on their product. So, beside Vietnam fast food market information provided by the research, the research also measures satisfactions of customer about Vietmac rice burger. All information and data that this research gathered, the author infer that it is necessary for Vietmac managers, and anyone who care about this field of market. By gathering information and data by both secondary method and conducting two surveys, one for Vietnam fast food market and one for Vietmac satisfaction measurements, some results that may important to readers are found. They are about: An overview of Vietnam fast food market such as plays in market, market trends and prospect, market characteristics and analyzing some models of the market. Measurement of customer satisfaction about fast food product, especially, satisfaction measurement of Vietmac fast food product. Information about customers habits, needs Defining the characteristics of product and answering what characteristics are most important? Analysis of marketing mix Generating market structure And comments for Vietmac. The results towards guidance for investors or anyone who care about fast food market. It also suggests Vietmac managers to refer to any improvements, adjustments in marketing strategy and marketing activities.

iii

TM T T VIETMAC FAST FOOD NGHIN C U MARKETING V

Nguy n Minh c

XU T

H c vin MBA, nin kha 2008-2010 Khoa Qu n tr kinh doanh i h c Qu c Gia H N i

H ng d n: Ti n s Tr n on Kim Thng 11 - 2011, 109 trang

Th i gian g n y, th tr ng hng tiu dng t i Vi t nam n i ln nh m t hi n t ng, c a hng c bi t l s n ph m n nhanh n nhanh (fast food). Chng ta c th nhn th y cc h u h t cc ni ng c, cc ta nh, siu th v cc trung

tm thng m i. Tuy nhin, th tr ng nhi u ti m nng ny l i khng thu c v cc doanh nghi p Vi t Nam, n thu c v sn chi c a cc thng hi u qu c t l n nh KFC, Lotteria, v Jollibee. Cc s n ph m thnh cng tr ng. c c ch n nhanh Vi t Nam v n cha th c s u t thm nh p th u t c n n. th tr ng ny m c d cng c nh ng nh

ng trong th tr ng ny, tr c tin, cc nh

tm hi u th t nhi u thng tin v th tr ng

c th c cc b c i ng

Nghin c u ny nh m m c tiu ch ra cc thng tin v nhu c u th tr ng, thi quen, s th a mn c a khc hng, nghin c u cng marketing h n h p, v n c p ny ut lin quan khc n a. n nhanh c a Vi t Nam pht tri n c Vietmac c n nhi u nh ng thng c p t i cc y u t trong i th c nh tranh, c u trc th tr ng v cc

Cu i nm 2010, Vietmac, m t thng hi u tin chung v th tr ng tin v n nhanh, Ban gim

v th nghi m th tr ng v i s n ph m Cm k p Vi t Mc. Bn c nh nh ng thng ng x c a khch hng i v i s n ph m. Do , bn c nh nh ng thng tin iv

v th tr ng fast food Vi t Nam c cung c p b i nghin c u ny, nghin c u cng a ra cc ch s o l ng v m c hi lng c a khch hng iv is n ph m Cm k p Vi t Mc. Tc gi cho r ng cc thng tin thu th p c qua nghin c u ny l c n thi t Ban gim c Vietmac cng nh nh ng ai quan tm n th tr ng iv i

n nhanh.

Thng tin c thu th p b i ngu n d li u th c p v b i vi c ti n hnh 02 cu c kh o st, m t kh o st cho thng tin chung v th tr ng b ng cn l i nh m lin quan n: n nhanh Vi t Nam nh i th c nh o l ng m c Vietmac. M t vi s li u c th r t quan tr ng i v i ng i n nhanh Vi t Nam, c. Cc thng tin ny hi lng c a khch hng v i s n ph m

Ci nhn t ng quan v th tr ng tranh, xu h ng tri n v ng ngnh, ngnh.

c tnh th tr ng v phn tch m hnh i s n ph m n nhanh ni chung

o l ng s hi lng c a khch hng v c bi t nh cc

i v i s n ph m c a Vietmac. c tnh c a s n ph m v tm ra nh ng c tnh quan tr ng c a

Thng tin v thi quen, nhu c u c a khch hng. Xc n. Phn tch marketing h n h p. Xc nh m hnh th tr ng. n vi c g i cho nh ng nh u t ho c b t c ai quan o Vietmac Thu th p nh ng g i , nh n xt v Vietmac. K t qu nghin c u h ng tm ho t n th tr ng ng marketing. n nhanh. K t qu ny cng g i cho Ban lnh

nh m tm ki m nh ng c i ti n, thay

i nh m ph h p hn trong cc chi n l c v

TABLE OF CONTENTS
ACKNOWLEDGMENT ..........................................................................................i ABSTRACT ............................................................................................................ii TM T T .............................................................................................................. iv TABLE OF CONTENTS ....................................................................................... vi LIST OF CHARTS ................................................................................................. ix LIST OF FINGURES ............................................................................................. xi LIST OF TABLES ................................................................................................xii INTRODUCTION ................................................................................................... 1 CHAPTER 1: LITERATURE REVIEW.................................................................. 9 1.1. 1.2. Marketing research ..................................................................................... 9 Research methodology theory and implication .......................................... 13

1.2.3. Sample selection ....................................................................................... 18 1.2.4. Data collection methods ............................................................................ 19 1.2.5. Data processing analysis ........................................................................... 19 1.3. The marketing analysis ............................................................................. 20

1.3.1. Fast food marketing .................................................................................. 20 1.3.2. Market segmentation, target market and positioning. ................................ 23 1.3.3. Marketing mix .......................................................................................... 23 1.4. Franchising ............................................................................................... 25

vi

CHAPTER

2:

VIETNAM

FAST

FOOD

MARKET

AND

VIETMAC

MARKETING REVIEW ....................................................................................... 27 2.1. Vietnam fast food market review .............................................................. 27

2.1.1. Overview .................................................................................................. 28 2.1.2. Market development ................................................................................. 33 2.1.3. Consumer data .......................................................................................... 34 2.1.4. Competitor information............................................................................. 35 2.1.5. Vietnam Fast food Industry models analysis ............................................. 38 2.2. Vietmac marketing review ........................................................................ 44

2.2.1. About Vietmac .......................................................................................... 44 2.2.2. Comparative advantages and marketing strategies..................................... 50 2.2.3. Initial target market & customer ................................................................ 51 2.2.4. Performances ............................................................................................ 52 CHAPTER 3: SURVEYS CONDUCTING AND FINDINGS ............................... 54 3.1. Surveys conducting ................................................................................... 54

3.1.1. Questionnaire design ................................................................................. 54 3.1.2. Target respondents and sampling .............................................................. 56 3.1.3. Questionnaires delivery............................................................................. 56 3.1.4. Data processing and analysing .................................................................. 56 3.2. Vietnam fast food market findings ............................................................ 57

3.2.1. About competitors ..................................................................................... 57 vii

3.2.2. Customers need, habit and satisfaction measurement ............................... 59 3.2.3. Behavior of people about fast food products. ............................................ 66 3.2.4. Behavior of people about price.................................................................. 67 3.2.5. Behavior of people about advertising channel ........................................... 68 3.2.6. Behavior of people about distribution channel. ......................................... 69 3.2.7. Market structure and opportunity .............................................................. 70 3.2.8. Recognition of Vietmac and comments ..................................................... 72 3.2.9. Respondents information .......................................................................... 74 3.3. Vietmac satisfaction measurement ............................................................ 76

3.3.1. Satisfaction measurement comperation between Vietmac and KFC .......... 76 3.3.2. Respondents summary .............................................................................. 84 3.4. 3.5. Other findings ........................................................................................... 86 Answering the research question ............................................................... 88

CHAPTER 4: SOME MARKETING RECOMMENDATIONS FOR VIETMAC . 92 4.1. 4.2. 4.3. Recommendations..................................................................................... 92 Action plans.............................................................................................. 97 Conclusion ................................................................................................ 97

REFFERENCES.................................................................................................... 99 APPENDIXES .................................................................................................... 101

viii

LIST OF CHARTS
Chart 1. Most wanted fast food brand name .................................................................................... 57 Chart 2. Factors measurement influences on chosing a brand ......................................................... 58 Chart 3. Brand changing habit ......................................................................................................... 59 Chart 4. Brand satisfaction measurement ......................................................................................... 60 Chart 5. Nutrition, health and safety satisfaction measurement ....................................................... 60 Chart 6. Tasty and flavor satisfaction measurement ........................................................................ 61 Chart 7. Convenience satisfaction measurement.............................................................................. 62 Chart 8. Menu flexible satisfaction .................................................................................................. 62 Chart 9. Price satisfaction measurement .......................................................................................... 63 Chart 10. Point of sale decoration satisfaction measurement........................................................... 63 Chart 11. Service and staff behaviour satisfaction ........................................................................... 64 Chart 12. Satisfaction compare within KFC, Jollibee and Vietmac ................................................. 64 Chart 13. Important factors .............................................................................................................. 67 Chart 14. Behaviour of people about price ...................................................................................... 67 Chart 15. Price sensitive ................................................................................................................... 68 Chart 16. Ads channels .................................................................................................................... 69 Chart 17. Distribution channels........................................................................................................ 70 Chart 18. Frequency of eating fast food in last month ..................................................................... 71 Chart 19. Times of eating fast food in last three months ................................................................ 72 Chart 20. Recognition of Vietmac Rice burger ................................................................................ 72 Chart 21. Brand satisfaction Vietmac V.s KFC ............................................................................... 77

ix

Chart 22. Nutrition satisfaction Vietmac V.s KFC .......................................................................... 78 Chart 23. Tasty & flavor Vietmac V.s KFC..................................................................................... 78 Chart 24. Convenience measurement Vietmac V.s KFC ................................................................. 79 Chart 25. Menu satisfaction Vietmac V.s KFC ................................................................................ 80 Chart 26. Price satisfaction Vietmac V.s KFC ................................................................................. 81 Chart 27. P.O.S decor Vietmac V.s KFC ......................................................................................... 81 Chart 28. Service and staff behaviour Vietmac V.s KFC ................................................................ 82 Chart 29. Vietmac satisfaction by factors ........................................................................................ 83

LIST OF FINGURES
Figure 1. Phases of the research process ............................................................................................ 6 Figure 2. Organization of the research ............................................................................................... 8 Figure 3. Follow chart of the research process................................................................................. 11 Figure 4. Factors influence to Vietnam fast food marketing application ......................................... 22 Figure 5. The four Ps components of marketing mix ....................................................................... 24 Figure 6. Market analysis steps ....................................................................................................... 28 Figure 7. Porter five force ................................................................................................................ 44 Figure 8. Vietmac Rice burger product ............................................................................................ 46 Figure 9. Vietmac's strengths and weaknesses ................................................................................. 84

xi

LIST OF TABLES
Table 1. Forecast sales in fast food by subsector: units/outlets 2011-1014 (quoted from 2009 2014) ................................................................................................................................................ 33 Table 2. Forecast sales in fast food by subsector: foodservice value 2011 2014 (quoted from 2009-2014) ....................................................................................................................................... 33 Table 3. Global Brand Owner Shares of Chained Fast Food 2005-2009 ......................................... 38 Table 4. Brand Shares of Chained Fast Food 2006-2009 ................................................................ 38 Table 5. Hanoi fast food market sales forecast - lunch time meal ................................................... 49 Table 6. Vietmac performances ....................................................................................................... 52 Table 7. Factors measurement influences on chosing a brand ......................................................... 58 Table 8. Time of meal ...................................................................................................................... 65 Table 9. Place of meal ...................................................................................................................... 65 Table 10. Group of people ............................................................................................................... 66 Table 11. Willing measurement to sellect fast food. ........................................................................ 66 Table 12. Treatment of people with fast food .................................................................................. 70 Table 13. Fast food potential measurement ..................................................................................... 70 Table 14. Respondents by genders ................................................................................................... 74 Table 15. Respondents by ages ........................................................................................................ 75 Table 16. Respondents by careers .................................................................................................... 75 Table 17. Respondents by location .................................................................................................. 76 Table 18. Respondents by income ................................................................................................... 76 Table 19. Vietmac Satisfaction by factors ....................................................................................... 82 Table 20. Descriptive statistics ........................................................................................................ 84

xii

Table 21. Gender .............................................................................................................................. 85 Table 22. Careers ............................................................................................................................. 85 Table 23. Place of work ................................................................................................................... 86 Table 24. Decision right ................................................................................................................... 86

xiii

INTRODUCTION
1. Back ground Global economic with the daily changing of business environment, as the human needs are continuously developing and changing, according to those changes, opportunities are constantly appearing. Marketing research plays an important role in searching for new opportunities and determining the objectivities, valuation of those new opportunities. It is also used to know more about existing market like customer, competitor, business environment, marketing trend and prospect Fast food is an example of changing and developing market over the past years. Living and working environment and food culture have been changing, people quickly accept Western style fast food and this is a great opportunity for investors in this area. In a short time, the leading brands of fast food worldwide have been quickly penetrating and growing strongly in Vietnam, for example, KFC, Lolteria, Jollibee, BBQ, Pizza Hut... Sales volume of fast food chain stores in five years from 2004 to 2009 had grown 55%, and forecasted to grow 18.9% / year from now to 2014. Sales of fast food industry in Vietnam in 2009 reached 6.296,6 billion, expected to reach 9.204, 4 billion USD in 2014 (according to Eromonitor international). Fast food for lunch time that serving officer is one of the major markets that competitors are focusing on. Vietnam currently has some brands participating in fast food industry and also found the objective signs e.g. Pho 24, Ga 99 ... and most recently, in early July, 2011, Vietmac Rice burger brand was officially introduced in Hanoi after six month of researching and developing.

2. Definition of Problem Vietmac is trying to launch a new product Vietmac rice burger to a rich potential market but risk. It stared business with limited information about fast food market, it did business when the founder saw the opportunity with his intuition. Vietmac managers need to know both about market landspace and behaviour of customer about Vietmac product. Who are serving this market? What are customers needs, habit and satisfaction? What is the most important characteric of fast food products? Why some people choose FKC, others choose Jollibee, and some like Vietmac? What differentiates Vietmac product from its competitors' products? Do we need to enhance our current product or service? What specific marketing strategies are currently using? How do competitors market their products? Should marketing strategy need be revised? After six months of testing new product Vietmac rice burger to Hanoi market, the company has achieved initial goals, but this time the company needs to look back for any adjustments in marketing strategy and marketing plan to choose a right way of developing. 3. Objectives of the research Vietmac had started its business with very limited information in fast food industry. So that the first objective is to have an overview of Vietnam fast food market. It is very important, once understanding about market, Vietmac managers will know how to deal with it. Information about market the thesis will cover is: competitor, customer need, habit, and satisfaction, product, price place and promotion, market structure and opportinuty, awareness of Vietmac product.

The second objective is to measure the satisfaction of costomers with Vietmac rice burger product after few months of testing and developing the products. Satisfaction about brand/origin, nutrition/health, tasty/flavor, time consumming, menu flexible, price, place, service and staff will be presented. The author will focus on fast food products that serve for officer in lunch time in Hanoi city. Finally, is to provide Vietmac manager some recommedations in marketing strategy and marketing activity. 4. Research question To fullfill the objectives of the research, the study should answer the following questions: Is there a need for Vietmac's product or service?

What is the target market?

Who are the customers?

What do customers expect from this type of product or service? What are customers willing to pay for this type of product or service? What specific companies are servicing this market? Is the market saturated or wide open? If so, why? What is the size of the market? Is it a growing market? Is the industry stable, volatile, growing or trendy?

How can Vietmac reach this market? How do competitors reach the market? What are the business models of competitors?

What core competencies must the product or service have? 3

What is Vietmac competitive advantage?

These questions will be answered after this marketing research is completed. 5. The necessary of the research Marketing research covers a wide range of phenomena. In essence it fulfills the marketing managers need for knowledge of the market. The marketing manager of Vietmac may ask How we can expand Vietmac brand and gather customer from other competitors? or How is customer satisfying with the products? Or If need to refine the product or price?... Each of these marketing questions, as well as questions concerning most other marketing decisions, requires some information about how customers, distributors, and competitors will respond to the executives marketing decisions. Marketing research is one of the principal tools used for answering these questions. Beside that, after discovered, the author found that, there are few reports, documents, researches mentioned about Vietnam fast food market. While, Vietmac had tested it products for few months, so that it needs more and more information about fast food market and its testing results. This research may supply more knowledge for readers, investors, marketers, and especially, it is meaningful for Vietmac managers. 6. Scope of the research First, in this research the author presents an overview of Vietnam fast food market and some major analysises about it such as market trends, market prospect, consumer market data, competitor information, model analysis. Second, Vietmac customer satisfaction measurment will be conducted in the research. The author also compare Vietmac rice burger with the market leader, may be KFC, Jollibee or Lotteria to find out the strong and weakness of each sides. 4

The research will conduct two questionnaire surveys, one for Vietnam fast food market, and the other for Vietmac satisfaction measure. Food for lunch time market is diversified to kinds of foods. Take the main market share is traditional foods such as ordinary sidewalk meals (In Vietnamese is said Cm b i), home delivery rice meals (In Vietnamese is said Cm h p), and canteen service. However, Vietmac rice burger is defined as fast food, so the author will not mention and analyse non-fast food products, or if yes, it is just point of views of the author, professors, or information gathering from second data sources. The fact that, definition of fast food is too wide, it includes any foods that can be served fast, such as bakery product fast food, burger fast food, chicken fast food, pizza fast food, Vietnam noodle fast food or it may be classified to chained fast food and independent fast food, convenience store fast food in this research the author mainly focus on chained fast food with range of products that serve for lunch time meal such as burger fast food, chicken fast food and Vietnam noodle. And the research focuses mainly on officers working in Hanoi. 7. Research methodology The data and information may be collected from primary source where data can be measured in numerical or secondary source where information is just as point of views. In this research the outhor uses both approach method of qualitative and quantitative. Data and information from secondary sources and surveys are both gathered. This research will use descriptive research method to describe and demonstrate the answers of the problems. 8. Research design In general, the process of the research usually involves six phases described as Figure 1. Phases of the research process:

Figure 1. Phases of the research process1 This research will follow this design. 9. Organization of the research This thesis includes four chapters. Chapter one: Literature review. In this chapter, we will scan through the literature about marketing research, research methodology, marketing management, and the theory of franchising. By understanding this literature chapter, readers will have a better understanding the other chapters.
1

William G.Zikmund, Exploring marketing research, 2nd edition, 1986, p.40

Chapter two: Vietnam fast food market review and Vietmac marketing review. First, this chapter will take an overview of Vietnam fast food market. It gives readers an understanding about history, market trend, market prospect, consumer market data, competitor and some industry model analysis. This chapter also helps the researcher to do next chapters more fluently, accurately. It is also help researcher to have more information for other analysis. Sencond, the situation analysis is main concept of this chapter. General information, idea, products, comparative advantages of Vietmac are mentioned in this chapter. Chapter three: Surveys conducting and findings. In this chapter, the author will describe the conducting of two questionnaires such as generating needed information and questions, designing questions, respondents and sampling, questions delivery, data process and analysis, and finally, the findings of the research will be presented in this chapter. Chapter four: Some Marketing recommendations for Vietmac. After discovering theory, market review, conducting surveys, and the findings are presented in above chapters. The author will make some recommendations for Vietmac. Future actions should be suggested. Finally, in this chapter, any condensations will be summarized in conclusion section.

Figure 2. Organization of the research

CHAPTER 1: LITERATURE REVIEW

By understanding the literature, readers can approach the research easily, accurately. This chapter will mention about basis theories such as marketing research, research methodology theory and implication for this research, marketing management, and franchise theory. 1.1. Marketing research

We now will scan for some theories about task and definition of marketing research, marketing information system, and marketing research process.
Market research will provide specific market information that will permit the firm to select the target market segment and optimally position the offering within that segment.

1.1.1. Task and Definition The task of marketing research is to make the information used in decision making more accurate. The emphasis of marketing research is to shift decision makers from intuitive information gathering to a systematic and objective investigation. As American marketing association: Marketing research is defined as the systematic and objective process of gathering, recording, and analyzing data for aid in making marketing decisions2. After that, it expanded as: Marketing research is the function that links the consumer, customer, and public to the marketer through information - information used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process. Marketing research specifies the information required to address these issues, designs the methods for collecting

American marketing association (1960) Marketing definitions: a Glossary of marketing terms , page 17

information, manages and implements the data collection process, analyzes, and communicates the findings and their implications.3 1.1.2. Marketing information system (MIS) One of the most essential tasks of marketing research is to provide information for making decision. Has many alternative sources and type of information. It may be available or gathered from a survey. Managers usually complain of a lack of right information, they were also overburdened with too much irrelevant information. Resolution for this trouble, information should be managed systematically. Further, as marketing research grew in importance during the 1950s and early 1960s, managers realized that unsystematic handling of isolated problems as they occurred was not the most effective means for gathering information. This more effective type of thinking, along with the widespread use of computers, led to the development of the marketing information system (MIS) concept. A marketing information system is a continuing and interacting structure of people, equipment, and procedures design to gather, sort, analyze, evaluate, and distribute pertinent, timely, and accurate information for use by marketing decision makers to improve their marketing planning, execution, and control.4 1.1.3. Marketing research process In introduction, six phases of research had been listed. Now, Figure 3. Follow chart of the research processshows the decisions that researchers must make in each phase.

American Marketing Association (AMA) - Official Definition of Marketing Research Philip Kotler, Principles of Marketing (1980, page 136)

10

Figure 3. Follow chart of the research process5 The process begins with problem discovery. Indentifying the problem is the first step toward its solution. Correctly defining the problem is the crucial first step in the marketing research process. If the research problem is defined incorrectly, the research objectives will also be wrong, and the entire marketing research process will be a waste of time and money. Exploratory research is often conducted during the initial stage of the research process. The preliminary activities undertaken to refine the problem into a
5

William G.Zikmund, Exploring marketing research, 2nd edition, 1986, p.42

11

researchable one need not be formal or precise. The purpose of exploratory research is a progressive narrowing of the scope of the research topic and a transformation of the discovered problems into defined one incorporating specific research objectives. Researchers have three basic techniques for discovering insights and gaining a clearer idea of the problem: secondary data, experience survey, and pilot studies. Statement of research objectives. After defining the problems, with or without exploratory research, the researcher should make a formal statement of the problem and research objectives. It points out the type of information that should be collected and provides a framework for the scope of the study. Research design. After the researcher has formulated the research problem, the research design must be developed. A research design is a master plan specifying the methods and procedures for collecting and analyzing the needed information, it is a framework for the research plan of action. Selection of the basic research method takes an important role. In general, there are four basic design techniques for descriptive and causal research: survey techniques, experiments, observations and secondary data studies. Which techniques should be utilized depend on available data sources, the urgency of the decision, and the cost of obtaining the data. Once the proper design has been determined, the researcher moves on the next phase: sampling. Sampling involves any procedure that uses a small number of items or that uses parts of the population to make a conclusion regarding the whole population. The next sampling issue concerns sample size. Sample size means that how big should the sample be? Gathering or collecting information should be conducted after all above phases. Correlative with research techniques, there are many methods of data gathering 12

such as: secondary methods, observation, mail interview, telephone interview, personal interview, focus group. Once data gathering has been completed, the data must be converted into a format that will answer the research question. Data processing generally begins with the editing and coding of data. Editing involves checking the data collection forms for omissions, legibility, and consistency. Before data can be tabulated, meaningful categories must be established for groups of responses. The rules for interpreting, categorizing, recording, and transferring the data to data storage media are called codes. Finally, conclusions and reports are made for managerial decision. 1.2. Research methodology theory and implication

This section discusses more about the research design and methodology. The first concept that the author mentions is research purposes? After that, which method approach should be used, in method approach theory, the author mentions about types of research, research approaches, and choosing a basic method of research. Which types of research should be applied, Exploratory research, Descriptive research, Analytical research, Predictive research and why they are chosen? Which method approach should be used, qualitative or quantitative? Which basic methods of research should be applied, survey research or secondary data study? To answer those questions, research design is first dealt with. Marketing research design includes six phases (as in introduction mentioned, see Figure 1. Phases of the research process). To discover research methodology, the phases will be interpreted once again, see again at Figure 3. Follow chart of the research process for analyzing. After that, Sample selection, Data collection methods, Data processing analysis will be discussed to help readers know more about how the surveys is conducted.

13

This section will detail the theory of above section marketing research. 1.2.1. Research purpose Market research is the process of systematic gathering, recording and analyzing data about customers, competitors and the market. This research can help create a business plan, launch a new product or service, fine tune existing products and services, expand into new markets etc. It can be used to determine which portion of the population will purchase the product/service, based on variables like age, gender, location and income level. It can be found out what market characteristics your target market has. With market research companies can learn more about current and potential customers. The purpose of this research is to help company make better business decisions about the development and marketing of new products and fine tune the product Vietmac rice burger after few months of testing in market. It also has a review and synthesis existing knowledge about marketing research and fast food market in Vietnam. 1.2.2. Research approach This research need information about fast food market, gathering information is one of the most important tasks. So that, after definition of the problem and identification objectives and questions of research, now the types of research, research approach and research methodologies are needed to define and employed. 1.2.2.1. Types of research:

Exploratory research is undertaken when few or no previous studies exist. The aim is to look for patterns, hypotheses or ideas that can be tested and will form the basic for further research. Typical research techniques would include case studies, observation and reviews of previous related studies and data.

14

Descriptive research can be used to identify and classify the elements or characteristics of the subject. Quantitative techniques are most often used to collect, analyze and summarize data. Descriptive studies are conducted to answer who, what, when, where, and how questions. Implicit in descriptive research is the fact that management already knows or understands the underlying relationships among the variables in the problem. A variable is simply a symbol or concept that can assume any one of a set of values. A descriptive study used in thesis might include demographic and lifestyle characteristics of customers, their habit and satisfaction. Other questions might determine how frequency, or to whom they go with when using fast food. It is used to explore competitor field and factors concerned to fast food. Analytical research often extends the Descriptive research to suggest or explain why or how something is happening. An important feature of this type of research is in locating and identifying the different factors. Predictive research: The aim of this research type is to speculate intelligently on future possibilities, based on close analysis of available evidence of cause and effect. It is quite blur of edge within these above types of research, but as described, the Descriptive method is almost used in this research. 1.2.2.2. Research approaches

This research uses both data and information that gathered by previous authors and by the author. To understand about fast food market, the author may synthesize information from secondary sources or/and from primary data; to those data and information, the author used both qualitative and quantitative approach method. To understand about customer needs, habit, satisfaction the author may conduct a

15

survey by questionnaire; to measure the information, the author should apply the quantitative approach. Quantitative approach is on collecting and analyzing numerical data, it concentrates on measuring the scale, range, frequency etc. of phenomena. Quantitative approach is one in which the researcher uses positivistic methodology to develop knowledge (e.g. cause and effect, test a hypothesis or a theory). Quantitative research involves analysis of numerical data. For this research, a quantitative survey will be conducted. Followings are some features of a quantitative research: The aim is to classify features, count them, and construct statistical models in an attempt to explain what is observed. Researcher knows clearly in advance what he/she is looking for. Recommended during latter phases of research projects. All aspects of the study are carefully designed before data is collected. Researcher uses tools, such as questionnaires or equipment to collect numerical data. Data is in the form of numbers and statistics. Objective seeks precise measurement & analysis of target concepts, e.g., uses surveys, questionnaires etc. Quantitative data is more efficient, able to test hypotheses, but may miss contextual detail. Researcher tends to remain objectively separated from the subject matter.

Qualitative approach is more subjective in nature than quantitative approach and involves examining and reflecting on the less tangible aspect of a research subject, 16

e.g. values, attitudes, perceptions. Qualitative research involves analysis of data such as words (e.g., from interviews), pictures (e.g., video), or objects (e.g., an artifact). Followings are some features of a quantitative research: The aim is a complete, detailed description. Researcher may only know roughly in advance what he/she is looking for. Recommended during earlier phases of research projects. The design emerges as the study unfolds. Researcher is the data gathering instrument. Data is in the form of words, pictures or objects. Subjective - individuals interpretation of events is important ,e.g., uses participant observation, in-depth interviews etc. Qualitative data is more 'rich', time consuming, and less able to be generalized. Researcher tends to become subjectively immersed in the subject matter. Choosing a basic method of research:

1.2.2.3.

Again, the author must make a decision. Figure 3. Follow chart of the research processindicates that, there are four basic design techniques for descriptive and causal research: survey techniques, experiments, observation and secondary data study. For the objectives of the study, the available data sources, the cost of obtaining, the limited of time, this research should use survey techniques and secondary data studies. Survey research involves an interviewer (except in mail and Internet surveys) who interacts with respondents to obtain facts, opinions, and attitudes. A questionnaire is used to ensure an orderly and structured approach to data gathering. 17

Face-to-face interviews may take place in the respondents home, a shopping mall, or a place of business. There are two main types of survey: a descriptive survey concerned with identifying and counting the frequency of a particular response among the survey group, and the other one, analytical survey, which analyze the relationship between different elements (variables) in a sample group. In this research, the author is partial to apply descriptive survey. Secondary data studies. As in exploratory research, descriptive and causal studies also use previously collected data. Although the terms secondary and historical are interchangeable, secondary data will be used here. An example of a secondary data study is the use of a mathematical model to predict sales on the basis of past sales or on the basis of a correlation with related variables. To predict future market potential, data from the government or Research companies may be acquired concerning projections on personal income, population or urbanization etc. 1.2.3. Sample selection A sample is a subset from a larger population. Although the basic nature of the sample is specified in the research design, selecting the sampling procedure is a separate step in the research process. Several questions must be answered before a sampling procedure is selected. First, the population or universe of interest must be defined. This is the group from which the sample will be drawn. It should include all the people whose opinions, behaviors, preferences, attitudes, and so on will yield information needed to answer the research problem - for example, all persons who working in Hanoi, ate fast food at least once in last three months. Sample with size of around 300 people is separated by gender, ages, career, marriage, location, income. After the population has been defined, the next question is whether to use a probability sample or a nonprobability sample. 18

In this research, the author decided to choose non-probability sampling method. According to the method of gathering responds (email, print and internet survey), people that use internet are required to fulfill the questionnaire. Also, only people that ate Vietmac rice burger are asked for their satisfaction with Vietmac product. 1.2.4. Data collection methods Once the research design has been formalized, the process of gathering or collecting information from respondents may begin. Obviously, because there are many research techniques, there are many methods of data collection such as observation, questionnaire, personal interview, focus group, secondary, case study. When the survey method is utilized, some form of direct participation by the respondent is necessary during the process. The respondent may participate by filling out a questionnaire or by interacting with an interview. It is important to minimize errors in the process. For example, it is important that the data gathering be consistent in all demographic. In this research the author used secondary method and questionnaire survey to gather data and information. 1.2.5. Data processing analysis Editing and coding: Once the field work has been completed, the data must be converted into a format that will answer the questions mentioned in Introduction section. Data processing generally begins with the editing and coding of the data. Editing involves checking the data collection form omission, legibility, and consistency in classification. The editing process corrects problems like interviewer errors before the data are transferred to the computer. Before data can be tabulated, meaningful categories must be established for groups of responses. The rules for interpreting, categorizing, recording and transferring the data to the data storage media are called codes.

19

Analysis is the application of logic to the understanding of data that have been gathered about the subject. In its simple form, analysis may involve determining consistent patterns and summarizing the appropriate details revealed in the investigation. Statistical analysis may range from portraying a simple frequency distribution to very complex multivariate analysis, such as multiple regressions. 1.3. The marketing analysis

In this section, the author discusses about some field of marketing management theories such as marketing mix, segmentation, target market, positioning. The American Marketing Association defined: Marketing (management) is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals6. 1.3.1. Fast food marketing We should take an overview of Vietnam fast food marketing application, how players employ their marketing activities? Franchise business model: Almost fast food brand in Vietnam are doing business as franchising e.g. KFC, Lotteria, Jollibee, Pho 24. To get more and more customer, one of the most popular marketing strategies of fast food brands is to fast expand its store chains. KFC is an example, by the end of 2005, KFC Vietnam has all 17 stores, at the end of 2010, KFC Vietnam has raised its total stores to 90, at present, KFC has 100 stores and it plans at the end of 2011 reaching to 105 stores. Attractive decoration, cool atmosphere, and comfort are some criterion of fast food stores. According to a recent survey by AC Nielsen about trends of fast food

Peter D. Bennett, Dictionary of Marketing Terms, 2nd ed. (Chicago: American Marketing Association, 1995).

20

behaviour conducted in Vietnam, more than 70% of respondents said that they come to the fast food stores because they like the atmosphere, the service here. Professionalize staffs. Staffs working in fast food industry are almost good looking, trained by the company, so that, they are very professional and standardization. Flexibility and localization the menu and tastes. Mr. Thanh Tam, Business director of KFC Vietnam said in the past, no one sold rice in fast food stores, but now rice has become the highest, 90% sales volume for Vietnamese customers. According to Mr Dennis Flore, JFC (Jollibee) Vice chairman, affirmed that, the best seller in Jollibee menu is chicken rice. In Vietnam, chicken rice is usually used with soup. Thanks to using traditional formular of cooking, dishes become more suitable for Vietnamese customer, chicken rice takes a proportion of 60% in total sales volume of Jollibee in Vietnam market. Some characteristics of marketing environment influence to Vietnam fast food marketing application are generated as figure 4.

21

Figure 4. Factors influence to Vietnam fast food marketing application

22

1.3.2. Market segmentation, target market and positioning. A marketer can rarely satisfy everyone in a market. Not everyone likes the same taste of fast food, price of product, or the way of serving. Therefore, marketers start with market segmentation. They identify and profile distinct groups of buyers who might prefer or require varying products and marketing mixes. Market segments can be identified by examining demographic, psychographic, and behavioral differences among buyers. The firm then decides which segments present the greatest opportunity7. A target market or target audience is a group of people that will basically need or want your products and services. Target market is defined in terms of age, sexual orientation, gender, economic class, religion, ethnicity, or location. This socioeconomic grouping process actually allows businesses to create profiles of the typical consumers who will likely buy the products of your company. Positioning. For each chosen target market, the firm develops a market offering. The offering is positioned in the minds of the target buyers as delivering some central benefit(s). 1.3.3. Marketing mix Marketing mix is the set of marketing tools that the firm uses to pursue its marketing objectives in the target market. As shown in Figure 5. The four Ps components of marketing mix, McCarthy classified these tools into four broad groups that he called the four Ps of marketing: product, price, place, and promotion8.

Philip Kotler, Marketing management, Millennium edition, 2001, page 4

E. Jerome McCarthy, Basic Marketing: A Managerial Approach, 13th ed. (Homewood, IL: Irwin, 1999).

23

Figure 5. The four Ps components of marketing mix9 Marketing-mix decisions must be made to influence the trade channels as well as the final consumers. Typically, the firm can change its price, sales-force size, and advertising expenditures in the short run. However, it can develop new products and modify its distribution channels only in the long run. Thus, the firm typically makes fewer period-to-period marketing-mix changes in the short run than the number of marketing- mix decision variables might suggest.

Philip Kotler, Marketing Management, Millenium Edition, 2001, P.10

24

Robert Lauterborn suggested that the sellers four Ps correspond to the customers four Cs10. Four Ps Product Price Place Promotion 1.4. Franchising Four Cs Customer solution Customer cost Convenience Communication

Franchising is used by most players to expand its stores, so that, to know about franchising is so important. The franchising model, which allows people with access to limited capital to enter an established business, is well suited to a developing economy like Vietnam. In recent years, the Vietnam franchising market has experienced a strong surge with average annual growth at 30 percent, with more than 600 new franchising shops being opened. Although the market is still small and competition is limited, it is expected to grow quickly. Several popular foreign franchisors have recently expanded their operations with some success and enterprising local businesses are now becoming more aware of the franchising model than ever before. Many are looking for opportunities to work with well-known foreign brands to start a franchise business in Vietnam. Franchising was legally recognized in Vietnam with the passing of the Commercial Law, which took effect on January 1, 2006 and includes eight articles dealing with franchising activities.
Robert Lauterborn, New Marketing Litany: 4Ps Passe; C-Words Take Over, Advertising Age, October 1, 1990, p. 26.
10

25

Franchising first took hold in Vietnam in the 1990s with the appearance of famous foreign fast food and beverage chains like Kentucky Fried Chicken, Dilmah, Lotteria, and Jollibee. Franchising activities have become more widespread in Vietnam in recent years, with a number of well-known products and services offered by local and foreign entities being franchised in the local market. Prior to the adoption of the 2006 Commercial Law the Vietnamese Government viewed franchising with skepticism and did not recognize it as a legitimate vehicle for promoting commercial activity and investment. This perspective has been changing as Vietnam witnesses the development of strong franchise sectors among its neighbors and begins to recognize the role this sector can play in creating jobs, as well as attracting investment, improved management practices and new technology. The issuance of the new Commercial Law, together with the Office of Government Decree No. 35/2006/ND-CP, dated 31 March 2006 (Decree 35) specifically legitimized franchising services, and therefore marked an important change of the Governments perspective towards the development of the franchise sector in Vietnam. Fast food franchises focus on high volume, low cost and fast expansion.

26

CHAPTER 2: VIETNAM FAST FOOD MARKET AND VIETMAC MARKETING REVIEW

2.1.

Vietnam fast food market review

By analyzing the market, the researcher understands how market is structured, markets characteristics and its main competitors, how they change, what are the trends and prospect. It is also to identify the relevant factors shaping the industry. Fast food market analysis is a detail exploration to identify emerging trends and make projections about the future of this sector of the economy. It usually covers fast food in a specific region or nation to provide detailed information about a particular market. Analyst with experience in economics, politics, and the restaurant industry can be involved in the preparation of a fast food industry analysis. Governments, investors, and members of the fast food industry may commission such an analysis for the purpose of making decisions, about business practices and policy moves. The fast food market that serves lunch time for officer is a niche market, though in the first phase of developing, Vietmac focus on this market, but in overall, the managers of Vietmac needs to know an overview of fast food market, not just this niche market. Firstly the author gives some terms of history of the fast food industry, taking note of historic growth rates and key events; factors that affect the growth, government regulations, and some leading businesses in the industry. It will include estimating size of the market, establishing trends in the sales over recent years, determining current operational/management trends within the industry. Types of marketing strategies are prevalent within the industry?

27

After that, industry developments, news, innovations should be discussed. And, the author also generates information about consumer market data. Then competitor information is analyzed also. This is to answer who is the major business in the industry? What is their market share, target market? Finally, SWOT and Porter Five Force are generated. Vietnam fast food market analysis is generated as figure 6.

Figure 6. Market analysis steps 2.1.1. Overview 2.1.1.1. Market overview

Fast food (also known as Quick Service Restaurant or QSR within the industry itself) is the term given to food that can be prepared and served very quickly11. While any meals with low preparation time can be considered to be fast food, typically the term refers to food sold in a restaurant or store with preheated or precooked ingredients, and served to the customer in a packaged form for takeout/take-away. The term "fast food" was recognized in a dictionary by Merriam Webster in 1951.

11

http://en.wikipedia.org/wiki/Fast_food

28

Outlets may be stands or kiosks, which may provide no shelter or seating12, or fast food restaurants (also known as quick service restaurants). Franchise operations which are part of restaurant chains have standardized foodstuffs shipped to each restaurant from central locations.13 According to most historians, the first fast food chain was White Castle, which was formed on the west coast of the United States in 1916. The industry didnt really start to take off until McDonalds became popular in the late 1940s and early 1950s. After that, many different people started imitating the business model of the more successful chains, and eventually some of these people became big enough to form major chains themselves. As above definition of fast food, in Vietnam, Pho 24, wrap&roll, Bnh xo, Kdos are some chains of fast food. But in Vietnam, almost people treat fast food as Western style fast food such as KFC, Lotteria, and Jollibee. Major factors that affect to the growth of fast food industry such as fast food product and service, time of consumption, income, life styles, healthy and safety, population, urbanization A March 2009, AC Nielsen survey of fast food market development in Vietnam shows that KFC is the market leader. It has 20 shops opened in HCM City and nine in Hanoi, among an all-Vietnam total of 68 shops. Next is Lotteria (15 shops in HCM City and three in Hanoi, a total of 56 nationwide), and then Jollibee with eight shops so far. At the end of July, 2011, KFC has 100 stores, Lotteria has 87 stores. 2.1.1.2. Some highlights in Vietnam fast food market:

12

John A. Jakle, Keith A. Sculle (2002). Fast Food: Roadside Restaurants in the Automobile Age Talwar, Jennifer (2003). Fast Food, Fast Track: Immigrants, Big Business, and the American Dream.

13

29

 Current value sales grow by 13% in 2009 to reach almost VND6.3 trillion. Estimated to reach VND 9.2 trillion in 2014. The number of fast food outlets reaches 7,000 in 2009, a 6% increase over 2008. Estimated to reach 8.3 outlets in 2014. Through good business strategies, chained fast foods popularity continues to increase despite the economic crisis Chained burger fast food records the fastest current value sales growth of 29% in 2009 In 2009 KFC Vietnam Co Ltd leads a fragmented category with an 11% share of value sales. At the end of 2011, KFC will reach 105 stores, and maintains the leader position of the market. Over the forecast period, fast food sales are expected to grow by an 8% constant value CAGR 2.1.1.3. Vietnam Fast food market trends

Recent years the fast food category witnessed a big change in the pricing strategies of most companies. The adding of economy menu in most fast food outlets, together with massive promotion and discount campaigns, made fast food a more affordable meal choice for consumers. Apart from adjusting prices to increase market penetration, fast food players paid more attention to local taste preferences and catered their menus accordingly. Western-style fast food formats like burger or chicken either localized their food offer or added popular local dishes like Vietnamese stewed pork. Most fast food companies are basing their operations on the chained business model which allows more effective resource allocation, standardized management and led to the development of good strategies. Thus, despite the

30

economic crisis in 2008 and price storm of 2011, fast food has been less affected than other industries. Chained burger fast food recorded the fastest current value sales growth of 29% in 2009, marginally ahead of chained chicken fast food. In 2009, chained burger fast food brands in Vietnam such as Lotteria and Jollibee employed good strategies, such as introducing local dishes to their menus, which attracted consumers and boosted sales. Chained chicken fast food is dominated by KFC. This is the preferred fast food format among Vietnamese customers, largely because chicken is used in many popular dishes in the country. In terms of the number of outlets, chained chicken fast food posted the fastest growth of 34% in 2009. Due to the higher popularity and greater acceptance of chicken fast food options among customers, it is easier for players in this category to expand their coverage quickly. Outlet expansion has been proved to be an effective strategy. Leading players, including KFC with 100 stores by July, 2011, spread out into newly developed cities and more remote areas, outside of the big cities where competition is already intense. The value sales split between eat-in and take-away in fast food in Vietnam is quite unique due to the habits of local customers. In most countries, fast food is known for convenience and speed of service with the purpose to provide customers with a quick but nutritional meal. Thus, take-aways sales share is normally high. However, Vietnamese consumers still consider any kind of foodservice outlet, including fast food, as a place to sit in, eat and enjoy. This is particularly the case for chained fast food players such as KFC or Lotteria which offer pleasant decor and a comfortable and friendly ambience. Thus, customers choose to visit these outlets not only to eat but also to spend time

31

socializing with friends and families. Therefore, eat-in sales accounted for a high 91% share of value sales in 2009. 2.1.1.4. Vietnam fast food market prospects

Because of the continuous change in local consumers eating and drinking habits, influenced by Western and modern cuisines, as well as much improved personal incomes and company development, the fast food category in Vietnam is expected to continue to flourish over the forecast period. A more welcome policy and legal regulations for franchising will provide players with more freedom and options to expand their businesses. This will create big opportunities for chained fast food players, both international and local, to grow more strongly and build-up their positions in the category and industry as a whole. Over the forecast period, fast food sales are expected to grow strongly, by an 8% constant value CAGR, as industry conditions are favorable. However, companies are likely to run risks and experience difficulties, especially when turning away from the traditional joint venture method of penetration to franchising to expand their businesses. One potential threat to growth is that once consumers have adapted to modern fast food items and modern ways of serving, they will quickly become bored by standardized dishes which may lack variety. Fast food players, therefore, should try to constantly develop and introduce new items and seasonal dishes to satisfy the quick changing demands of consumers. Chained chicken fast food sales are expected to increase by a 21% constant value CAGR, to record the highest growth over the forecast period. This is the preferred modern fast food type in Vietnam, while the burger and other Western-style fast food offerings remain strange tastes to local consumers. Thus, it will take time for people to become familiar with such items. 32

 As the competition between fast food players intensifies, companies are likely to employ various strategies to strengthen their position. Maintaining growth in terms of outlet numbers is expected to be a key strategy because wider coverage offers greater opportunities to penetrate new areas and consumer bases and boost sales. People tend to use tasty, nutrition and fresh fast food. Table 1 and table 2 presented by Euromonitor International will show more in fingure about sales forecast in term 2011-2014 Table 1. Forecast sales in fast food by subsector: units/outlets 2011-1014 (quoted from 2009 - 2014) Outlets Chained fast food Independent fast food Asian fast food Bakery products fast food Burger fast food Chicken fast food 2011 2012 2013 2014 CAGR 365.0 429.0 499.0 576.0 25.6% 7139.0 7383.0 7596.0 7769.0 4.3% 5437.0 5626.0 5798.0 5944.0 4.6% 275.0 290.0 306.0 323.0 8.4% 149.0 171.0 194.0 219.0 21.2% 195 227 259 291 22.2%

Table 2. Forecast sales in fast food by subsector: foodservice value 2011 2014 (quoted from 2009-2014) VND billion Chained fast food Independent fast food Asian fast food Bakery products fast food Burger fast food Chicken fast food 2011 2007.3 5505.8 2965.7 227.5 415.0 1241.1 2012 2373.8 5712.5 3111.1 242.3 488.3 1474.3 2013 2778.4 5868.7 3259.1 256.8 569.5 1722.1 2014 3233.7 5970.8 3398.4 271.0 659.1 1993.7 CAGR 17.2% 2.7% 4.6% 6.0% 16.7% 17.1%

2.1.2. Market development

33

Besides the emerging of fast food market, the culture is accompanied, people tend to use fast food. When people are busier, the time of cooking is shorter, there are more and more individuals and families tend to use fast food. People also care about nutrition and fresh of food products, so that, products meet this need well will be accepted quickly. Home delivery rice meals (Cm h p), Ordinary sidewalk meals (Cm b i) can not meet these requires. 2.1.3. Consumer data There are approximate one million potential users in Hanoi, in which, there are around 500.000 white collars (Vietmac data). To descible about officer, according to a 2010 market study conducted by Vietmac, Vietmac points out some main characteristics: Stable in income, and it is increasing year by year. Have about total one hour of rest time at noon, and they usually use 30 munite for lunch. They usually use Ordinary sidewalk meals (Cm b i), Home delivery rice meals (Cm h p) and fast food, both lunch out and delivery. High demand in hygienical fast food. Reasonable in price, it is from 20.000vnd 30.000vnd for Ordinary sidewalk meals (Cm b i), Home delivery rice meals (Cm h p) or more than 50.000vnd for fast food. They like plexible menus, and will change menus each day. They like eating in fresh air, comfortable, near their office or in the centre of city.

34

 Brand equity is important for choosing a product. Ordinary sidewalk meals (Cm b i), it is very poor hygiene, have to wait for long time at rush time and it is waste time also. Home delivery rice meals (Cm h p), it looks dirty as a tray is reused and food is getting cool. Some fast food products like chicken fried, burgers are high in price, dry and fast satiated. They like to eat Vietnam cuisine daily. Beside the fingures and characteristic of officers, the author add more information about demographic hereby: By the growing of population, increasing of income, urban population make up 29.6% (Vietnam general statistic office, 2009), food drink smoke take a proportion of 51.8% in total spending (2010), the age of 15 to 34 account for 43.7% of total population, the age of 25 to 44 account for 30.54% (World resources institud, population, health and human well-being. Contruy profile: Vietnam, 2007). Beside this number, young tend to accept western culture very fast. So fast food market is a big opportunity to invest. 2.1.4. Competitor information There are many fast food products and brands that serve for lunch time for officer like KFC, Jollibee, Pho 24 (noodle 24). Beside fast food products, Ordinary sidewalk meals (Cm b i), Home delivery rice meals (Cm h p) are the main products that serve for this market. Most of fast food are western style chains as KFC (Kentucky Fried Chicken) the leader in Vietnam fast food market, followers are Philippines largest fast-food chain, Jollibee Foods Corporation, Lotteria one bigest brand come from Korea, The United State's top burger brands like Burger King, Popeyes and McDonalds are expected to tap into the Vietnamese market in the next two to three years. Pho 24 (Nam An group) is one of the most Vietnam successful in fast food industry, up to 35

now, Pho 24 had launched 60 stores domestically and 17 stores oversea. Following Pho 24, Wrap & roll had expanded in to a chain of 10 restaurants. Competitive landscape: Big competitor in industry: KFC, Jollibee, Lotteria KFC: A majority of the Vietnamese population are young, so our marketing strategy certainly focuses on them. We especially attach importance to children through special marketing programmes for this group of promising customers. Our goal is turning the KFC brand name into a companion of potential customers when they are small. Our current customers are mainly the young but we also have elderly customers. Our products are processed under common standards in the world market, but KFC Vietnam is researching products that are closer to the taste of Vietnamese people. Mr. Pornchai Thuratum, General Director of KFC Vietnam talked to Vietnamnet express. Jollibee: according to Mr. Jojo P.Subido, Jollibe General Director, Brand building is one of the most important strategies in marketing. Jollibee focuses on leasing the place in the center of cities to impress customer at the first time enven it is so expensive. And Jollibee attend a lot in POS decoration. Recently, menu flexible is prior to suite Vietnamese people. In 2009, KFC remained the leading fast food player in terms of the number of outlets (1% share) and value sales (11% share. KFC continued to dominate chained chicken fast food with no real competitors in this category. Still a young brand in the category, Jollibee has significantly fewer outlets and a much lower value sales base compared to big competitors. The company registered the fastest value sales growth of 46% in 2009. Apart from keeping its original burger and chicken items, Jollibee successfully 36

added familiar dishes such as chicken curry to the menu, which resulted in continuous sales growth and increasing numbers of customers. While local independent fast food players mostly operate through small family-owned units with minimal equipment and furniture, international chains have mostly chosen joint ventures and franchising as the safest way to expand their business in the Vietnam. The food and drink offerings in the fast food category are becoming more sophisticated as companies pay more attention to the tastes and demands of local consumers. The most notable trend may be the increasing presence of economy or value menus, which offer assorted food items for a significantly lower price than the original set meal offer. This strategy is aimed at reaching out to a wider consumer group and it makes modern fast food options, which are sometimes considered too expensive, more affordable to most consumers. In addition, local dishes are being introduced to menus in an attempt to attract more customers. For example, Jollibee offered two new dishes, stewed pork with eggs and chicken curry, both served with rice. Domestic players continue to dominate in terms of outlet numbers. Generally, local players have good market knowledge and they understand local customers tastes and habits. They also offer familiar traditional meals which are easily accepted by all Vietnamese consumers. However, international fast food companies are developing in a more dynamic way and showing more promising growth rates. Local consumers are adapting to Western-style fast food and enjoying higher personal income, enabling them to afford the luxury of fast food. Moreover, foreign players have huge resources to carry out massive marketing and PR activities, which help to create or boost brand reputations and attract more customers, thereby accelerating their pace of expansion and market coverage.

37

 Home delivery rice meals (Cm h p), Ordinary sidewalk meals (Cm b i) are cheap, variety of menus, optional, long experience in serving lunch time but dirty & cool, waste time for waiting and for lunch out, not attractive of P.O.S See more at table 10, table 11 Table 3. Global Brand Owner Shares of Chained Fast Food 2005-2009 % value company Yum! Brands inc Nam An Group Lotte Group Jollibee Food Group Others Total 2005 52.5 20.3 18.1 2.9 6.2 100 2006 46.1 31.1 14.3 3.0 5.5 100 2007 47.2 29.3 15.5 2.7 5.3 100 2008 51.5 24.4 16.1 2.9 5.1 100 2009 50.2 22.8 16.1 3.3 7.6 100

Table 4. Brand Shares of Chained Fast Food 2006-2009 % value company KFC Ph 24 Lotteria Jollibee Others Total Note. Source

2006 2007 2008 2009 46.1 47.2 51.5 50.2 31.1 29.3 24.4 22.8 14.3 15.5 16.1 16.1 3.0 2.7 2.9 3.3 5.5 5.3 5.1 7.6 100 100 100 100 of Table 10, 11: Sources: Euromonitor International: Country Sector

Global brand owner KFC Vietnam Co Ltd Nam An Group Vietnam Lotteria Co Ltd Jollibee Vietnam Co Ltd Others

Briefing, November 2010. Trade associations, trade press, company research, trade interviews, Euromonitor International estimates 2.1.5. Vietnam Fast food Industry models analysis 2.1.5.1. SWOT analysis:

The SWOT analysis is an extremely useful tool for understanding and decisionmaking for all sorts of situations in business and organizations. SWOT is an

38

acronym for Strengths, Weaknesses, Opportunities, Threats. Information about the origins and inventors of SWOT analysis is below. The SWOT analysis headings provide a good framework for reviewing strategy, Position and direction of a company or business proposition, or any other idea. Strengths Quick service: one of the biggest strengths of fast food is that it provides quick service. And in this modern world, time is money hence quick service is the biggest strength. Attraction: Almost fast food chains are located in centre of city or nearby shopping centre with attractive decoration. Strong brand names: KFC, Lotteria, Jollibee, Pho 24 Weaknesses Different preference: Vietnamese with long history familiar with traditional food. Lack of customization: Fast food is usually pre-made and pre-packed and not fresh from the oven. So once the dish is made it cannot be altered according to the customers choice or preference. Unhygienic and unhealthy: Most of the times though being tasty the oil content in fast food is very high. Hence people are now moving away from fast food. The fast food prepared is also unhygienic especially at the road side joints. It is high in fat and calories too. Hence these are considered weaknesses to the fast food industry.

39

Oppotunities Officers in city centre, the lunch time for those people is very limited, so they need some food that can serve fast, like fast food. Those group of officer have a stable and midle-up income, so they will choose food that fresh, safety and healthy, conforatble armostphere of place to taste. Officers and workers are expanding quickly in number, especialy in big city. Income of those people is increasing. Growing nuclear families: Nowadays it is said to be the age of fast food. Parents and kids especially prefer fast food due to its quick service and for its satisfying appetite at affordable prices. This is a growing opportunity for the industry because families nowadays prefer eating out, rather than cooking at home Growing urban lifestyle: Urbanization is growing fast in Vietnam, there are more and more centre of cities. Buildings, trade centers are expanding, which is the attractive place to locate fast food outlets. People in cities and towns are now having additional incomes in their pockets. Eating out now, is a normal thing for the homely people in the cities. Young population: fast food especially suites with young people. Western culture oriented and adapted. Threats Ready- to-eat: Nowadays ready to eat products are more in demand in the market owing to the fact that consumers have to take minimum trouble in preparation out of which the results are healthy food, rich nutritional value, easy on pockets and higher value for money as compared to the foods available in a fast food joint. 40

 Ordinary sidewalk meals (Cm b i), Home delivery rice meals (Cm h p) are also the main competitors of fast food products. It is cheap, and presented at any where that we go. Economic crisis, while inflation is high, people tend to spend less money for life. Health Concerns: many fast foods are fried, high in fat and sodium, and low in fiber, vitamins, and some minerals14 2.1.5.2. Porters Five forces analysis

Porter five forces analysis helps the marketer to contrast a competitive environment. It has similarities with other tools for environmental audit, such as PEST analysis (Polictical Economic Social Technological factor), but tends to focus on the single, stand alone, business or SBU (Strategic Business Unit) rather than a single product or range of products. Five forces analsysis looks at five key areas namely the barriers to entry, the power of buyers, the power of suppliers, the threat of substitutes, and competitive rivalry. The barriers to entry Jumping into this industry needs much capital investment, that is why almost brand in Vietnam are foreigners, but Vietnam brand. In fast food industry, one of the most important to success is the brand awareness. To build a brand, it needs not only a big amount of capital but also a long time. If lack of brand awareness, it is hard to franchise, and also, if lack of capital, it is hard to expand its chains. As Pho 24 general director Ly Quy Trung complained that renting commercial space for restaurants was still a major

14

Collin, Anne, Obesity & Health concerns, 2007, books

41

challenge for domestic fast food vendors, due to the prohibitively high rents in major shopping and urban centres. Beside capital factor, it needs to make the differentiation approach to overcome the existing companies. The barrier of fast food industry is high. The power of buyer There are many brandnames in the fast food industry, e.g. FKC, Lotteria, Jollibee, BBQ, Pho 24 The customer can choose any kind brandname which they like. The switching cost is very low, the buyers has flexibility and no barriers to switch to competition. The power of buyer is high. The power of supplier The main forces for fast food are rice, wheat flour, chicken, beef, pork, vegetable, fruit, and others sources like labor, delivery service. These forces are quite weak; it is quite easy to buy from the suppliers, so that the company may be able to negotiate a favorable business for itself. But, if you require a high level of input materials, some input materials you have to import. Besides that, almost chains of fast food are demanding to rent a space in the centre of urban, especially on cross road, or near big shopping centre like Parkson, Vincom, Big C, Coop Mark so the rents are high, this force is strong, then the company is in a weak position and may have to pay a higher price. But, as reports, recently, space for lease in class A is excess, so that the price and power of such suppliers will be lower.

42

 The power of suppliers is medium. The threat of substitutes/complements Traditional meals, ready meal, and full service meal are considered substitutes of fast food. Customers can easily switch away from fast food product to a competitors product with few consequences. But, in fact, fast food has become the essential meal recent years, because of its conveniences. So its hard to switch to others meal, especially officers, studentwho stays all day in office and school. The threat of substitutes is medium. Competitive rivalry Domestic fast food businesses are struggling to gain market share from their foreign counterparts, which have come to dominate this high-potential market. First opened in June 2003, by June 2010, Pho 24 has opened 60 stores domesticaly, in Ho Chi Minh, Hanoi, Danang, Vung Tau, Nha Trang, Binh Duong. Foreign franchises like KFC and the Republic of Korea's Lotteria so far dominate this market. KFC has opened 100 shop nationwide. Lotteria, currently with 84 restaurants, also has plans to open more in this year. The competitive rivalry is high. Overall Porter five forces analysis is described as figure 7.

43

Figure 7. Porter five force 2.2. Vietmac marketing review

2.2.1. About Vietmac General information: Company name: Vietmac JSC Location: Nhan Hoa, Nhan Chinh, Ha Noi. Tel: 043 55 77 777 Founder: Mr. Ngo Trong Thanh Major product: Vietmac rice burger (fast food product) Slogan: Live Fast Eat Fresh. Other products: Dessert, Breakfast, drink, side order. Ideas

44

As Mr. Ngo Trong Thanh founder of Vietmac, Combine western fast food styles with Vietnamese tastes. Said by Mr. Nguyen Thanh Duong Vietmac COO, Vietmac rice burger is totally new in Vietnam. Each portion includes two rice burgers with beef, chicken or pork, added by salad and soup. The two rice burgers are equal with two bowls of rice pressed. Although it is pressed, but it still keeps form of rice and flexible, as Vietnamese traditional cuisine. Vietmac rice burger will be roasted roughly at first to keep its adhesive, so when eating, it will not be friable. Vietmac serves at least four kinds of foods daily, menu changed daily to be sure that, foods will not repeat for two weeks Mr. Duong COO added. Eating Vietmac rice burger is likely to hamburger, but its taste is different from Vietnamese traditional cuisine. You will experience with a different eating way, like fast food but with Vietnamese taste. Vietmac desires to develop its chains and combine Vietnamese specialty food from villages. Products

45

Figure 8. Vietmac Rice burger product Each portion includes two pieces of compressed rice, beef or pork is clipped in the middle, a cup of salad and soup is added. Every day, Vietmac serves at least four different kinds of foods, but the menu is changed daily to ensure no repeat within two weeks. All food is packaged by one time using wrapping paper to ensure absolute safety for you. According to Mr. Ngo Trong Thanh, Chairman of VietMac, with the slogan Fresh Fast-VietMac always strives for the fresh and good for health. VietMac restrain of using fried products. All added products should be sold only if it is really good for health. "Our logo is a penguin order to clearly our trends: South pole is almost no 46

pollution, and so it is considered as the best place of healthy in the world," Mr Thanh said. While Fresh Fast, VietMac always serves with Vietnamese cuisine, Vietmac rice burger is worthy to choose for lunch daily. For fresh, VietMac rice burger is always made from the best fresh raw materials; Vegetables are harvested daily from Xuan Loc farm, owned by Tonkin, a largest fresh vegetable project in Hanoi. Fresh meat from supermarkets, which is registered with the standard authority, and absolutely do not use additives and food preservatives. All are processed within one day, with modern production lines. "The most special thing is that all of the packaging, wrappers are designed individually and used only one time. Wrap paper used is completely environmentally. This is the full criteria of a fresh product, "said Mr. Duong, COO of VietMac. And most importantly, each portion is always cared by the hands, hearts and consciences of those skilled, responsible workers. Why, the name of VietMac. We had spent one month for choosing this name, Vietmac. Vietmac means Meal is Absolutely Convenient, but, someone wrote a title Vietmac McDonald of Vietnam. It is ok. Why, Rice burger Cm k p? If name the product: rice burger, I think that, people may not understand this name for all. But what name should be called? More than ten names are discussed: Cm k p, cm p, cm n m, finally, Cm k p had chosen. It likes hamburger, but instead of bread, it is rice, Mr. Duong said. Logo & Slogan. 47

Penguin in South Pole means fresh. You wish to live in an absolutely fresh place, let imagine you are this Penguin. As conducting a survey with 500 people, with almost Vietnamese, especially women, they treat that fast food is not good for heath. Therefore, Vietmac always strike on Fresh and Good for health. So, the slogan is Live Fast Eat Fresh. You now can think about fast food, not only fast, but also fresh. It is Vietmac. Prospect of Vietmac. According to Mr. Nguyen Thanh Duong CEO of Vietmac, the growth of this sector is about 26% / year. However fast food with major characteristic is convenient but not consistent with Vietnam people, it is treated as not good for health. While the lunch market in Vietnam is very huge now. Potential customers are office workers who needs for a fast and convenient, healthy, clean, easy & taste of Vietnamese food. As estimated, Hanoi total fast food for lunch market annually is approximated 73 million us dollars. In wich 49.3 million us dollar (67.5%) is lunch out and the left 23.7 million us dollar (32.5%) is delivery. Total lunch time market is estimated to reach 582.3 million us dollars. Vietmac potential market share is estimated to reach 9.4 million us dollars annually (12.84% of Hanoi total fast food for lunch). But the fact that, the highest sales volume Vietmac achieved in September 2011, 42.400 us dollars, take a portion of only 0.8% in Hanoi total fast food for lunch market. All detail about forecast is shown and caculated in Table 5. Hanoi fast food market sales forecast - lunch time meal

48

Table 5. Hanoi fast food market sales forecast - lunch time meal
HANOI FAST FOOD MARKET SALES FORECAST - LUNCH TIME MEAL Labor and Population information Items Hanoi population 2009 (General statistics office - GSO) Population in working age (GS) Percentage of people have jobs / total population (53% - GSO) Population has jobs (GSO) Total potential customer (70% of working people working in center Hanoi) In which Go home for lunch (18% - Survey) Prepare in the morning, and take that portion to office (6% Survey) Take lunch at office by catering firm (25% - Survey) Go out for luch at the street-side food stalls (52% - Survey) Monthy average working days 1. Hanoi total Lunch meal market (both fast food and traditional Lunch market volume (luch at office by catering and street-side only)[ (e3+e4)*f] Hanoi total lunch market Monthy (everage price: 25.000vnd/portion) [1.1*25.000] Hanoi total luch market Annually [1.2* 12 months] Annually luch market revenue (usd) [1.3/20.900] 2. Hanoi Total fast food market forecast (Lunch time serving) Customer willing to use fast food (70% lunch out and delivery) [(e3+e4)*70%] Frequency of using lunch fast food (monthy - by survey) Lunch time fast food market volume [2.1 * 2.2] Average price Hanoi total fast food for lunch market share Monthy [2.3 * 2.4) Hanoi total fast food for lunch market share Annually [2.5 * 12 months] Total Annually Hanoi fast food market volume (in usd) In which Lunch out [2.6 * 68%] Delivery [2.6 * 32%] 3. Vietmac potential market share Customer willing to use Vietmac or fast food (8% - survey by Vietmac) [(e3+e4)*8%] Frequency of using lunch fast food (monthy - by survey) Lunch time fast food market transactions [3.1 * 3.2] No. a b c d e e1 e2 e3 e4 f units person person % person person person portion portion portion day Fingures 6,561,900 3,500,000 53% 3,484,369 2,439,058 439,030 146,343 609,765 1,268,310 22

1.1 1.2 1.3 1.4

portion vnd vnd usd

40,566,416 1,014,160,412,034 12,169,924,944,408 582,293,060

2.1 2.2 2.3 2.4 2.5 2.6 2.7

person times portion vnd vnd vnd usd Vnd usd

1,314,652 3.63 4,772,188.16 26,694 127,387,825,762 1,528,653,909,148 73,141,335 1,032,337,704,879 496,316,204,269

3.1 3.2 3.3

person times trans.

150,246 3.63 545,392.93

49

Spending each time (supposition) Vietmac potential market share Monthy [3.3 * 3.4] Vietmac potential market share Annually [3.5 * 12 months] Annual volume (in usd) 4. Ratio Performance (September 2011) % of Vietmac potential / Hanoi total fast food for lunch market [3.6 / 2.6]% % of Vietmac potential / Hanoi total lunch market [3.6 / 1.3]% % of Vietmac performance / Vietmac portential [4.1 / 3.5]% % of Vietmac performance / Hanoi total fast food for lunch market [4.1 / 2.5]%

3.4 3.5 3.6 3.7

vnd vnd vnd usd

30,000 16,361,787,981 196,341,455,770 9,394,328

4.1 4.2 4.3 4.4 4.5

vnd % % % %

1,000,000,000 12.84% 1.61% 6.11% 0.8%

Optimistic with the products, through the sale of trial, Mr. Duong said that the satisfaction index CSI (customer satisfaction index) is about 70 to 85%. On this basis, VietMac will build a new product line in Vietnam, with an estimated 8% of consumers accepted. A specific goal is to the end of 2011, VietMac will grow from 40 to 60 franchise stores in Hanoi and expand to Ho Chi Minh city, Da Nang, Hai Phong and open about 5-10 franchisees in each key market. Currently, almost fast food chains are focusing on serving teenage and families with children on dinner time. "Surprisingly, in Western, fast food often caters to the popular audience, but in Vietnam, fast food was considered as luxury, and a bit higher demands. Moreover, the fast food items are used for snacks rather than nutrient purposes. VietMac will change that!" Mr. Duong said. Specific objectives of Vietmac are to serve lunch for officers and businessmen. Vietmac sold and signed six stores in quite hot locations. It is on 15th floor, FPT building (Nguyen Phong Sac, Cau Giay), 3rd floor Grand Plaza (117 Tran Duy Hung), in canteen of Financial institute, Parkson Trade Center (Chua Boc, Thai Ha, Hanoi), The Garden trade center (My Dinh, Hanoi). In addition, six other office buildings is negotiating. 2.2.2. Comparative advantages and marketing strategies 50

Create a new rice burger product that suite to almost Vietnamese customers. Customers always want to be served a lunch time meals while ensuring nutrition, fresh, taste and convenience. While the existing products hardly to meet almost all needs. Vietmac rice burger with its characteristics: the origin of rice, fresh, not fried, low fat, convenience can fully meet the needs of the majority of customers. This is the creation of Vietmac and also the basic comparative advantages. Fresh, Vietnamese cuisine and Hygience. Thinking about fast food products, the factor that all providers should focus on is fast, but fresh is sometimes not met because almost fast food as Lotteria, KFC, and Jollibee is fried. With Vietmac, in addition to fast factor, the fresh factor is placed on top. Whenever customers look for a fast, fresh and Vietnamese cuisine, they will choose Vietmac. Productivity. Defference from catering suppliers, industrial production employed by Vietmac will get the advatage of faster service and reduce cost of production. Vietmac has been employing differentiation strategy. Differentiation strategy is the ability to provide unique and superior value to the buyer in terms of product quality, special features, or after-sales service15. According to this strategy, while almost fast food is chicken fried and come from Western, but Vietmac rice burger is Vietnamese cuisine with rice, meat and soup, and originated from Vietnam farm that can meet the major demand of lunchtime meals, fast and fresh. Other advantages of Vietmac are Stadardized, Scalability: more effective distribution network, and hygiene. 2.2.3. Initial target market & customer

15

J. David hunger, Thomas L.Wheenlen, Essentials of Strategic management, 4th edition, p. 83

51

Now Vietmac focus on building a concept: Develop a Vietnamese rice burger as a fast & convenience meal for white- collar workers in key cities throughout Vietnam. Target consumer: White- collar (hereinafter referred as user) works in office, and has 8 hrs daily. They has one hour for lunch Income: Middle- up Age: 20 45 There are approximate 1,000,000 potential users in Hanoi only Serve for lunch time at P.O.S and delivered as demand. 2.2.4. Performances Sales performances are displayed as in Table 6. Table 6. Vietmac performances No 1 2 3 4 5 6 7 8 Period of time February March April May June July August October Quantity (set) 2,400 3,600 3,600 6,000 7,200 12,000 14,400 16,800 21,600 87,600 Price (vnd) 27,000 27,000 27,000 35,000 35,000 53,000 53,000 53,000 Sales volume 64,800,000 97,200,000 97,200,000 210,000,000 252,000,000 636,000,000 763,200,000 890,400,000 Notes Trail period Trail period Trail period Trail period Official launch Price increment

9 September Total

Volume break point 53,000 1,144,800,000 event 4,155,600,000

After trial period, from December, 2010 to June 2011 and some months of official launching, the sales volume is increasing regularly by month and in September Vietmac had reached to breaking point event.

52

VietMac has just launched a new line of products: rice burger with BBQ filling, which is highly appriciated by consumers, as BBQ is more suitable to Vietnamese taste. There are figures revealed by company customers research: 100% users have found it very satisfactory, 100% think they will come again in the future, 85% think they will reccommand to their friends/ ralatives. Sale at once increases by ~100%. VietMac has signed franchising contract with couple of franchisees in HCMC. In which, 8 outlets will be opened within next 4 months. The workshop in HCMC is now under construction.

53

CHAPTER 3: SURVEYS CONDUCTING AND FINDINGS

In this research, the author had conducted two questionaire surveys, the first for Vietnam fast food market review, the second for Vietmac satisfaction measurement. These two questionnaires are conducted separately, and objectively, with deffernce samples. The first samle group focuces on whom living, working in Hanoi, used fast food, but do not care if she or he used Vietmac fast food or not. The second one focused on people had already used Vietmac and do not care about where they are living and working. In Vietnam market overview questionnaire, the author also mention about Vietmac fast food product. In that, the author account how many people know and ate Vietmac. Besides, the survey also gets the first comment from customer about Vietmac. The data from two surveys will be used for two main objectives of this study, will not use mutually. Responds received: 354 responds received for the first questionnaire, but only 300 responds that match to target respondents is used to analyse. And 100 respond for the second questionnaire. Location: Hanoi Method of delivery: Print, Email and online survey Time of research: 9 months. 3.1. Surveys conducting

3.1.1. Questionnaire design Vietnam fast food market survey

54

Identifying information necessary for the investigation is the most important tasks of the study. Information must ensure useful, complete and accurate. The information may be reflecting the aspects of the width of a research problem as rivals, needs, habits, satisfaction of customers, information regarding marketing mix, market structure... have as much information as wide, which means researchers increasingly closer and evaluate many factors affect the market and marketing activities. For accurate information, requires construction methods to gather objective information, the author had made questions clear, non-sensitive, diverse respondents. In this study, the information requested is classified into nine groups reflecting aspects of the market. Detail of these groups will be generated to questions. See the nine groups of information needed and questions at Appendixes 1. Information needed and questions for Vietnam fast food market Vietmac satisfaction measurement The fact that, Vietmac has just launched its product for six months, so that, there are few people know about Vietmac product. By general information in Vietnam fast food market survey, the author knows about the market in general, but cannot measure the satisfaction of Vietmac. Therefore, to measure the satisfaction of customer about Vietmac rice burger, the author had designed a specific questionnaire for the purpose of this measurement. With this questionnaire, the author reachs the respondents who had already used Vietmac rice burger. The author asked customers at Vietmac P.O.S and some one that the author knows that they had used the products such as officers of HSB, FPTSee this questionnaire at Appendixes 3. Questionnaire for Vietmac satisfaction measurement

55

3.1.2. Target respondents and sampling Customer target of Vietmac is officers, who are living and working in Hanoi. This is target respondents too. The author used email and internet survey as the major techniques to gather the responds. So the respondents may be neither living in Hanoi nor officer. After close the survey, the author will leave out the respondents do not match with targets. Print questions were also used to get the responds from customers who had already used Vietmac rice burger. 3.1.3. Questionnaires delivery Website survey: Google documents utility was used to design questionnaires for internet surveys. It was also used to analyze the data. Email and social network were techniques that the author used to massive promote questionnaires. www.facebook.com was the major social network website used to distribute questionnaires. Print paper was used to ask respondents at Vietmac P.O.S, who had known and eaten Vietmac rice burger. 3.1.4. Data processing and analysing Responds received: 300 responds matched with target respondent had been received from Vietnam fast food market survey and 100 responds from Vietmac satisfaction measurement survey. Microsoft office excels, SPSS software and Google documents are used to analyze data.

56

3.2.

Vietnam fast food market findings

After collecting information, processing and analysing data, research findings will be presented in this session. 3.2.1. About competitors 3.2.1.1. Market players and most wanted brand name:

As survey, KFC is the most wanted with 45% respondent chosen, follow KFC, Lotteria is chosen by 21%, Pho 24 12%, and Jollibee with 4%. Besides five brand names listed by researcher, some other brand name people like are BBQ, Ga 99, Pepperonis, Pho Nam Dinh, Pho Viet Thong Thuong, Pizza Hut, Subway.

Percentage of brands chosen

Vietmac Riceburger 7% Other 11% KFC 45%

Ph 24 12% Lotteria 21%

Jollibee 4%

Chart 1. Most wanted fast food brand name 3.2.1.2. Important factors influence people of choosing fast food brand:

To measure influential by factors, the author listed eight main factors and one customization factor, the factors are listed as Chart 2. Factors measurement

57

influences on chosing a brand and Table 7. Factors measurement influences on chosing a brand

Chart 2. Factors measurement influences on chosing a brand Table 7. Factors measurement influences on chosing a brand No. Factors Frequency Percentage 1 Brand, origin, package 132 44% 2 Nutrition 63 21% 3 Tasty, flavor 165 55% 4 Convenience 144 48% 5 Menu flexible 39 13% 6 Reasonable price 54 18% 7 P.O.S dcor 60 20% 8 Service and staff behavior 72 24% 9 Others 36 12% Note: respondents could sellect more than one choose, so that the percentage may exceed 100% As the result, tasty & flavor factor is the most important to people, 55% of people had chosen tasty & flavor for the reason why they make decision of choosing some fast food brand. It is interesting that, though one of the most important characteristic

58

of fast food is convenience, but in this case, the author thinks because people thinks, convenience is natural, so that, they had chosen tasty&flavor instead of convenience. Convenience and Brand are rated as second and third important factors for people while choosing a fast food brand name. 3.2.2. Customers need, habit and satisfaction measurement 3.2.2.1. Brand changing habit

Brand changing habit

35% Measurement range 30% 25% 20% 15% 10% 5% 0% Rarely Percentage 8% Seldom 21% Normal 31% Sometim e 28% Frequentl y 12%

Chart 3. Brand changing habit As Chart 3. Brand changing habit, people tend to change brand more frequently than consistently, but it is not considerable while 28% said they change brand sometime, 12% said frequently, but 31% said they do not care about changing and 21% said they change brand seldom, the left with 8% said rarely. 3.2.2.2. Satisfaction on chosen brand by factors.

a. Brand satisfaction measurement

59

Brand satisfaction measurement

70% 60% 50% 40% 30% 20% 10% 0% Unsatisfa ctory Percentage 2% A litte satisfacto ry 0% Normal 31% Satisfacto ry 59% Very satisfacto ry 8% Measurement range

Chart 4. Brand satisfaction measurement As result, almost people are satisfied with the current band name that they had chosen. 59% is satisfactory, 8% is very satisfactory with their brand name, while only 2% is unsatisfied and 0% is little satisfied. Totally, almost brands that have been playing in Vietnam fast food market are very good in customer awareness. b. Nutrition, health and safety satisfaction measurement

Nutrition, health and safety satisfaction measurement

Measurement range 60% 50% 40% 30% 20% 10% 0% Unsatisfa ctory Percentage 2% A litte satisfacto ry 4% Normal 52% Satisfacto ry 28% Very satisfacto ry 14%

Chart 5. Nutrition, health and safety satisfaction measurement

60

Nutrition, health and safety do not make people satisfy much. People need more about this factor when up to 52% stated they feel normal with nutrition, health and safety factor. c. Tasty and flavor satisfaction measurement

Tasty & flavor satisfaction

Measurement range 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Unsatisfa ctory Percentage 2% A litte satisfacto ry 4% Normal 34% Satisfacto ry 41% Very satisfacto ry 19%

Chart 6. Tasty and flavor satisfaction measurement People are almost satisfied with tasty and flavor (41%) and 19% is very satisfied. d. Convenience satisfaction measurement

Convenience satisfaction measurement

60% 50% 40% 30% 20% 10% 0% Unsatisfac tory Percentage 3% A litte satisfactor y 1% Normal 29% Satisfactor y 52% Very satisfactor y 15% Measurement range

61

Chart 7. Convenience satisfaction measurement 52% is satisfied with convenience characteristic of fast food products, 15% is very satisfied, while only 3% is unsatisfactory and 1% is little satisfactory. So almost brands serve well in this factor. e. Menu flexible satisfaction measurement

Menu flexible satisfaction

60% Measurement range 50% 40% 30% 20% 10% 0% Unsatisfac tory Percentage 2% A litte satisfactor y 10% Normal 56% Satisfactor y 27% Very satisfactor y 5%

Chart 8. Menu flexible satisfaction It seems that, menu flexible factor does not satisfy customer very well while 56% had felt normally while 27% had felt satisfied and only 5% had felt vey satisfied with this factors. f. Price satisfaction measurement

62

Price satisfaction
60% Measurement range 50% 40% 30% 20% 10% 0% Unsatisfac tory Percentage 5% A litte satisfactor y 22% Normal 56% Satisfactor y 11% Very satisfactor y 6%

Chart 9. Price satisfaction measurement People seem not satisfied with price factor, while 5% is unsatisfactory and 22% is little satisfactory. Only 6% is very satisfactory and 11% is satisfactory, the left, 56% said they feel normally. g. Point of sale decoration satisfaction measurement

P.O.S decoration satisfaction

60% 50% 40% 30% 20% 10% 0% Unsatisf actory Percentage 3% A litte satisfact ory 4% Normal 35% Satisfact ory 55% Very satisfact ory 3% Measurement range

Chart 10. Point of sale decoration satisfaction measurement Almost people are satisfied with P.O.S dcor.

63

h. Service and staff behavior satisfaction measurement

Service and staff behaviour satisfaction

Measurement range 50% 40% 30% 20% 10% 0% Unsatisfa ctory Percentage 2% A litte satisfacto ry 3% Normal 40% Satisfacto ry 47% Very satisfacto ry 8%

Chart 11. Service and staff behaviour satisfaction Service and staff behavior of fast food chains are good while 47% of satisfaction and 8% of very satisfaction. 3.2.2.3. Satisfaction measurement in general within KFC, Jollibee and Vietmac (competitors reference)

KFC, Jollibee, and Vietmac satisfaction (in general)

Measurement range 60% 50% 40% 30% 20% 10% 0% Unsatisfa ctory KFC Jollibee Vietmac 3% 3% 3% A litte satisfact ory 0% 8% 6% Normal 31% 46% 56% Satisfact ory 56% 17% 6% Very satisfact ory 9% 4% 3% Blank 1% 22% 26%

Chart 12. Satisfaction compare within KFC, Jollibee and Vietmac

64

As result, KFC get the highest score in satisfaction, it takes a proportion of 56% of satisfaction level compare with 17% of Jollibee and 6% of Vietmac. Equivalently, of very satisfaction level, KFC takes a proportion of 9% compare with 4% of Jollibee and 3% of Vietmac. 3.2.2.4. Time of meal (target market reference)

65% interviewee had used fast food in the lunch time, 32% had used fast food for dinner, and other, and 13% had selected fast food for breakfast. Almost people who had used fast food for lunch and dinner select fast food chain like KFC, Lotteries, and Jollibee. Table 8. Time of meal Time of meal Frequency Percentage Breakfast 39 13% Lunch 195 65% Dinner 96 32% Note: respondents could select more than one choice, so that the percentage may exceed 100% 3.2.2.5. Place of meal (distribution reference)

People tend to eat at the P.O.S, 81% would like to eat in the atmosphere of the restaurant. 39% would like to be served at office and 28% at home. Table 9. Place of meal
Place of meal At POS At office At home Other Frequency Percentage 100% convergent 243 81% 52% 117 39% 25% 84 28% 18% 27 9% 6% 471 100% Note: respondents could sellect more than one choose, so that the percentage may exceed 100%

65

3.2.2.6.

Group people (target market reference)

As the result, 77% of interviewees said, they usually go with friends or colleagues for fast food meal, 40% go with family. Table 10. Group of people Group people Frequency Percentage Go alone 57 19% Go with friends 231 77% Go with family 120 40% Other 24 8% Note: respondents could select more than one choose, so that the percentage may exceed 100% 3.2.2.7. Willing to use fast food (market opportunities reference)

By asking the respondents that, how much they are willing to select fast food more frequently if fast food meets their demand, 39% said the willing and 18% sure that, they will select fast food more frequently. Table 11. Willing measurement to sellect fast food. Measure range Not willing Maybe Normal Willing Sure Total Frequency Percentage 0 0% 18 6% 111 37% 117 39% 54 18% 300 100%

3.2.3. Behavior of people about fast food products. It is amazing that, though you think about fast food, one of the most important factors must be convenience, convenience is the major characteristic of fast food, but, as this research, in 300 people asked, the result showed that, the tasty&flavor is

66

the most important factor (30%), after that is nutrition factor (29%), and convenience (18%) is the third important.

Important factors
35% 30% 25% 20% 15% 10% 5% 0% 29% 30% 18% 7% 7% 3% 0% 1% 5% Percentage

Chart 13. Important factors 3.2.4. Behavior of people about price The price range from 40.000 60.000 is best suitable, 61% people stated that, this range of price is suitable for a ration of fast food.

Behaviour of people about price

70% 60% 50% 40% 30% 20% 10% 0% Under 40.000 40.000 60.000 60.000 - Over 80.000 80.000 21% 18% 0% Percentage 61%

Chart 14. Behaviour of people about price

67

50% people stated that, they can accept the increase in price in the range of 10.000vnd to 20.000vnd. If the increase in price larger than 20.000 , they will change for the substitutes.

Price sensitive
60% 50% 40% 30% 20% 10% 0% 11% 22% 9% 8% Percentage 50%

Chart 15. Price sensitive 3.2.5. Behavior of people about advertising channel Internet, Television, outdoor and word of mouth are channel of ads that should be used, 61% said, they usually catch the ads through internet, 55% see ads on TV, 51% like the way of W.o.M and 50% stated, they like seeing ads as on the street, they like outdoor ads.

68

Channel of ads
70% 60% 50% 40% 30% 20% 10% 0% 55% 61% 50% 51%

Percentage 6% 6% 5%

Note: respondents could select more than one choice, so that the percentage may exceed 100% Chart 16. Ads channels 3.2.6. Behavior of people about distribution channel.

Distribution channels
90% 80% 70% 60% 50% 40% 30% 20% 10% 0% POS Caf Delivery as demand 44% Percentage 69% 81%

Note: respondents could select more than one choice, so that the percentage may exceed 100%

69

Chart 17. Distribution channels All listed channels are chosen with the high percentage. It is important that, you try to improve both of them, but, company should focus on selling at P.O.S and delivering as demand. 3.2.7. Market structure and opportunity 3.2.7.1. Treatment of fast food

As the result, 34% people treated fast food as replacement of the main meal, 76% people treated fast food as relax, that no matter if they can select fast food or not. Table 12. Treatment of people with fast food Treatment of people with fast food Measure range Frequency Percentage Can replace the main meal 102 34% Just for relax and changing of atmosphere 188 76% As high and luxury meal 9 3% For parties and meeting meal 78 26% Other 12 4% Note: respondents could select more than one choose, so that the percentage may exceed 100%

3.2.7.2.

Potential of fast food market

As the survey, fast food market is wide open, it is demonstrated by 59% said that fast food market is potential and 14% said that fast food is very potential. Table 13. Fast food potential measurement Measure range No ideas Not potential Quite potential Normal Potential Frequency Percentage 12 4% 0 0% 12 4% 57 19% 177 59% 70

Very potential Total

42 300

14% 100%

3.2.7.3.

Frequency of fast food using

Of 300 respondents, 231 people said that, they used fast food in the last month, and 51% ate fast food under 3 times per month, 35% stated that, they selected fast food 3-5 times per month in last three months. See more on chart 18. and chart 19.

Frequency of eating fast food

Not eating in last mont 23% Eating in last month 77%

Chart 18. Frequency of eating fast food in last month

71

Times of eating fast food in last three months

More than 5 times/month 14%

3-5 under 3 times/month times/month 35% 51%

Chart 19. Times of eating fast food in last three months 3.2.8. Recognition of Vietmac and comments After six months of testing, 17% in 300 respondents had already eaten Vietmac rice burger, 26% had known about Vietmac rice burger, it is very good of Vietmac PR program.

Recognition of Vietmac
Used product 17%

Not recogintion of Vietmac 57%

Recognition, bu t not use yet 26%

Chart 20. Recognition of Vietmac Rice burger

72

Those, who had already known or eaten Vietmac rice burger, almost have positive comments for Vietmac rice burger, some of them: Vietnamese tasty, it is easy to use (Hng v Vi t Nam, d n), Well brand name and logo (Tn g i v logo kh t t), A family rice for all ages (Cm gia nh cho m i l a tu i), Likely Vietnamese rice, an inovative product (C v Vi t nam, m t s n ph m sng t o), Great creative and interesting. Im strongly surprised when knowing this product (R t sng t o v th v . Ti b t ng khi khi bi t c s n ph m ny), It is good looking, but not flavor when eating, price is reasonable, convenience when taking with travel (Trng p m t, nhng n khng h p kh u v , gi c h p l, ti n d ng c bi t..), It is good (Ti th y ph h p), I c m t s bi bo v khi i chi), It is attractive and very flavor (h p d n, v r t ngon), attractive, special flavor (h p d n, hng v read an acticle about Vietmac, its so impressed (Ti

Vietmac, kh n t ng), Well prodcut (S n ph m t t), curiously, will try, and if its ok, will use frequently (t m, s dng th , n u th y t t s th ng xuyn s d ng), A good idea, hoping to develop. I will try ( t ng t t, hy v ng c th pht tri n. Ti s dng th s n ph m), Very conenience when eating rice in dinh d ng). cooling atmosphere (R t ti n l i, m c d l n cm nhng khng gian r t mt m ), Convenience and nutrition (R t ti n l i nhng v n

Beside that, some comments suggest Vietmac to improve its concepts, such as Menu is not flexible yet. Flavor is not attractive. Hard rice, comestible is dry so hard eating. Product cover and service are good (Cha nhi u th c n phong ph. Hng v khng h p d n. Cm c ng, th c n kh nn kh n. Hnh th c bao b: ch p nh n c. D ch v : ch p nh n c), Totally not impressed, dont have information (H u nh khng n t ng, khng c thng tin), Good idea. But when first time using, the meat is tough. The portion is quite small for an youngth man, white the price in last three month is about 1.2 usd, it is about higher than original rice 0.2 usd (Ti th y t ng v cm k p kh hay. Tuy nhin, khi n l n (cng ty g i v th ) th mi ng th t k p hay th t heo). gi a kh dai (ko bi t hm i v i con trai th 1 su t Vietmac s khng 73 u y ch n th t b

no, m gi t i th i

i m cch y kho ng 3 thng l 25.000vnd, cao hn v i cm vn phng bnh dn bnh th ng - 20.000vnd), Should be add a small bowl soup (Nn c thm bt n c canh), Convenience, but the price is high, whitout soup, so rice is dry and hard to use (Ti n L i, nhng gi c hi t, khng c canh km theo cm, nn n m ngy no i b a thi), Webpage is not hi kh) . If daily use, it is hard, just some time charging (N u cng n thi khng th n mi c, ch thi tho ng n

attractive (website cha b t m t), I am satisfactory, but should be added more soup (Ti th y hi lng, tuy nhin c n thm n c canh), a bowl of soup should be plused (nn c thm bt canh), Very well PR, but the number of restaurants are limited, the restaurant in Grand plaza is unseen (PR r t t t, nhng c a hng cn hi t, v tr c a hng t i Grand Plaza hi khu t), Menu is not diversified (th c n cha phong ph), Not flavor, not diversified of menu, not attractie of design (Kh u v cha ngon, th c n cha phong ph, s n ph m cha b t m t), Rice is quite dry (Cm hi kh), Product is seriously lack of water, soup is not served as announced in website, also price is update late when in website stated that 1.2 usd per portion, but in fact it cost 1.45 usd (S n ph m cn qu thi u n c u ng, ph n canh khng c nh theo cng b c a website, v gi cng update mu n, bo gi trong website l 25.000 /su t, nhng khi g i cm k p, gi l i bo l 30.000 /su t, gy nn tnh tr ng hi u l m cho khch hng), as medium size burger, an youngth man may be not sufficient with ( n s thi u). 3.2.9. Respondents information Total respondents received: 357. But some respondents are leave out because some reasons like they are not officer, not living in Hanoi. So, 300 respondents are taken to analyse as sammary below. Table 14. Respondents by genders i v i m t su t n bnh th ng, m t thanh nin

74

Respondents Probability Percentage Male 109 36% Female 191 64% Total 300 100%

Table 15. Respondents by ages Ages Under 20 20-30 30-40 40-50 Over 50 Total Probability Percentage 9 3% 179 60% 100 33% 12 4% 0 0% 300 100%

Table 16. Respondents by careers No. Careers 1 Sales, marketing 2 Accounting, financing 3 Administration 4 IT 5 Construction 6 Production 7 Insurance, banking 8 Travel and air service 9 Education 10 Ads and events 11 Designer, architecture 12 Student 13 Jobless 14 Retirement 15 Others Total Probability Percentage 73 24% 51 17% 23 8% 18 6% 13 4% 7 2% 33 11% 15 5% 29 10% 4 1% 3 1% 0 0% 0 0% 0 0% 31 10% 300 300

75

Table 17. Respondents by location Location Ha Noi HCM city Other Total Probability Percentage 300 100% 0 0% 0 0% 300 100% No. Location Probability Percentage 1 Ba Dinh 27 9% 2 Cau Giay 107 36% 3 Dong Da 42 14% 4 Hai Ba Trung 27 9% 5 Hoan Kiem 18 6% 6 Hoang Mai 28 9% 7 Long Bien 3 1% 8 Tay Ho 12 4% 9 Thanh Xuan 24 8% 10 Other 12 4% Total 300 300

Table 18. Respondents by income Unit: million vn Probability Percentage 45 15% 122 41% 94 31% 39 13% 300 100%

No 1 2 3 4

Monthly income Under 5 mil (vnd) 5-10 mil (vnd) 10-15 mil (vnd) Over 15 mil (vnd) Total

3.3.

Vietmac satisfaction measurement

3.3.1. Satisfaction measurement comperation between Vietmac and KFC As section Scope of work the author had mentioned that, the author also, compare Vietmac rice burger with the market leader, may be KFC, Jollibee or Lotteria. Now KFC is chosen for comparing. 3.3.1.1. Brand satisfaction

76

As Chart 21 below, people tend to satisfy with KFC brand more than Vietmac. 60% stated that they were satisfied with KFC, while 36% with Vietmac, equivalently, 11.9% is very satisfied with KFC when 0% very satisfied with Vietmac.
70% 60.0% 60% 50% 40% 30% 20% 20% 10% 0% Not satisfactorty A little satisfactory Normal Satisfactory Very satisfactory 2% 4.4% 0.0% 0% 23.7% 11.9% 42% 36%

Brand, origin, package Vietmac

Brand, origin, package FKC

Chart 21. Brand satisfaction Vietmac V.s KFC 3.3.1.2. Nutrition satisfaction

Contrary to Brand, people valued Vietmac higher than KFC in nutrition factor. 60% stated that they satisfy with Vietmac nutrition and 10% stated that, they satisfy very much with Vietmac, while 28,9% satisfied and 6,7% very satisfied with KFC.

77

70% 60% 50% 40% 30% 30% 20% 10% 10% 0% 0% Not satisfactorty A little satisfactory Normal Satisfactory Very satisfactory 4.4% 0% 4.4% 6.7% 28.9% 55.6% 60%

Nutrition, health and safety Vietmac

Nutrition, health and safety FKC

Chart 22. Nutrition satisfaction Vietmac V.s KFC .

3.3.1.3.

Tasty and flavor satisfaction

There are so few differences of tasty and flavor behavior between Vietmac and KFC. Customers are both satisfied with two brands. In that, 40% said they satisfy satisfied and 12% very satisfy with Vietmac rice burger.
45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 42% 37.8% 40% 42.2%

12%11.1% 4.4% 0% Not A little satisfactorty satisfactory Normal Satisfactory Very satisfactory 6% 4.4%

Tasty and flavor Vietmac

Tasty and flavor FKC

Chart 23. Tasty & flavor Vietmac V.s KFC .

78

3.3.1.4.

Convenience satisfaction

Convenience is one big satisfaction of Vietmac when 66% said, they satisfy and 16% very satisfy with Vietmac rice burger.
70% 60% 50% 40% 30% 20% 10% 0% 66% 55.6%

21.5% 16% 6.7% 0% 2% 0.7% Normal Satisfactory

16%15.6%

Not A little satisfactorty satisfactory

Very satisfactory

Time consumer and convenienc Vietmac Time consumer and convenienc FKC

Chart 24. Convenience measurement Vietmac V.s KFC 3.3.1.5. Menu flexible satisfaction

People are rather not satisfied with Vietmac when 2% stated they are not satisfied, 28% stated they are little satisfied and 52% said they feel normal with Vietmac menu. No one is very satisfied and only 18% satisfied with Vietmac menu. 32.6% said they satisfied, 2.2% very satisfied with KFC menu.

79

60% 50% 40% 30% 20% 9.6% 10% 0% Not satisfactorty A little satisfactory 2% 4.4% 28%

52% 51.1%

32.6% 18%

0% 2.2% Normal Satisfactory Very satisfactory

Menu flexible Vietmac

Menu flexible FKC

Chart 25. Menu satisfaction Vietmac V.s KFC 3.3.1.6. Price satisfaction

Contrary to menu satisfaction, customers are very satisfied with Vietmac while 42% said they satisfy and 28% very satisfy. KFC got a lower satisfaction of price, when 6.7% said they are not satisfied and only 2.2% said they very satisfy.
60% 50% 40% 30% 20% 11.1% 10% 0% 0% Not satisfactorty A little satisfactory Normal Satisfactory Very satisfactory 6.7% 4% 2.2% 24.4% 26% 28% 55.6% 42%

Price satisfaction Vietmac

Price satisfaction FKC

80

Chart 26. Price satisfaction Vietmac V.s KFC 3.3.1.7. P.O.S dcor satisfaction

The dcor of Vietmac P.O.S maybe not attractive when 70% said they have no impression with Vietmac dcor. KFC may have a better place and view when 50.4% said they satisfy.
80% 70% 60% 50% 40% 30% 20% 10% 0% Not satisfactorty A little satisfactory Normal Satisfactory Very satisfactory 2% 4.4% 16% 10% 4.4% 2% 5.2% 35.6% 50.4% 70%

P.O.S dcor Vietmac

P.O.S dcor FKC

Chart 27. P.O.S decor Vietmac V.s KFC 3.3.1.8. Service and staff behavior satisfaction

KFC is rated higher than Vietmac in service and staff behavior when 46.7% is satisfied of KFC compared with 36% of Vietmac and 8.9% is very satisfied of KFC in comparison with 0% of Vietmac.

81

70% 60% 50% 40% 30% 20% 10% 0% 0% Not satisfactorty A little satisfactory Normal Satisfactory Very satisfactory 4.4% 6% 6.7% 0% 8.9% 33.3% 36% 58% 46.7%

Service and staff behavior Vietmac

Service and staff behavior FKC

3.3.1.9. Chart 28. Service and staff behaviour Vietmac V.s KFC 3.3.1.10. Vietmac satisfaction by factors You can see on Table 18 or Chart 29. Vietmac satisfaction by factors for this measurement, they are the same meaning, and they present the measurement of satisfaction by factors. As those data, the author generates two side of Vietmac, one side is strong points that Vietmac should maintain, the other is weak points that Vietmac should improve. These sides are present as Figure 9. Vietmac's strengths and weaknesses. Table 19. Vietmac Satisfaction by factors
Nutrition, health and safety 0% 0% 30% 60% 10% 100% Time consumer and convenience 0% 2% 16% 66% 16% 100%

Factor

Brand, origin, package 2% 20% 42% 36% 0% 100%

Tasty and flavor

Not satisfactory A little satisfactory Normal Satisfactory Very satisfactory Total

0% 6% 42% 40% 12% 100%

82

Factor

Menu flexible

Price satisfaction 0% 4% 26% 42% 28% 100%

P.O.S dcor

Service and staff behavior 0% 6% 58% 36% 0% 100%

Not satisfactory A little satisfactory Normal Satisfactory Very satisfactory Total

2% 28% 52% 18% 0% 100%

2% 10% 70% 16% 2% 100%

Fastisfaction by factors
Brand, origin, pack age 80% Service and staff behavior 60% 40% 20% P.O.S dcor 0% Tasty and flavor Nutrition, health and safety Not satisfactorty A little satisfactory Normal Satisfactory Very satisfactory Price satisfaction Menu flexible Time consumer and convenienc

Chart 29. Vietmac satisfaction by factors

83

Figure 9. Vietmac's strengths and weaknesses

3.3.2. Respondents summary

Below are tables summary the respondents. Table 20. Descriptive statistics Minimu Maximu m m 0 1 1 1 1 15 6 10 Std. Deviation .469 4.997 1.025 2.062

N Gender Careers Range of age Place of work Income Valid N (listwise) 100 100 100 100 0 0

Mean .68 6.20 2.86 3.70

84

Table 21. Gender Frequency Valid Male Female Total Table 22. Careers Frequency Percent Valid Sales, marketing Accountant, financial Administrator IT Construction Production Banking and insurance Ads and events Designer and arts Pupil, student Retirement others Total 24 10 10 6 4 6 8 4 4 10 4 10 100 24.0 10.0 10.0 6.0 4.0 6.0 8.0 4.0 4.0 10.0 4.0 10.0 100.0 Valid Percent 24.0 10.0 10.0 6.0 4.0 6.0 8.0 4.0 4.0 10.0 4.0 10.0 100.0 Cumulative Percent 24.0 34.0 44.0 50.0 54.0 60.0 68.0 72.0 76.0 86.0 90.0 100.0 32 68 100 Percent 32.0 68.0 100.0 Valid Percent 32.0 68.0 100.0 Cumulative Percent 32.0 100.0

85

Table 23. Place of work

Place of work
Frequency Percent Valid Ba Dinh Cau Giay Dong Da Hai Ba Trung Hoan Kiem Hoang Mai Long Bien Thanh Xuan Other Total Table 24. Decision right Frequency Percent Valid Decide to chose FF Offered to use FF Total 74 26 100 74.0 26.0 100.0 Valid Cumulative Percent Percent 74.0 26.0 100.0 74.0 100.0 6 34 12 14 22 4 2 4 2 100 6.0 34.0 12.0 14.0 22.0 4.0 2.0 4.0 2.0 100.0 Valid Percent 6.0 34.0 12.0 14.0 22.0 4.0 2.0 4.0 2.0 100.0 Cumulative Percent 6.0 40.0 52.0 66.0 88.0 92.0 94.0 98.0 100.0

3.4.

Other findings

Findings from other sources: A recent survey conducted by Nielsen about trends in the Vietnamese fast food market showed that more than 70% of respondents said they go to fast food shops because they like the atmosphere and the service there.

86

The regular customers of the fast food shops are high income earners. 27% of those polled said they go to fast food shops once a week at least. Most customers (61%) use fast food if they need quick meals, while 26% said they consider fast food as a snack between main meals. 84% said they will use fast food services in the next six months. Customers behaviors by gender There is no difference in behavior between male and female, they have the same attitude about habit, satisfaction, and ideas about fast food. But male used fast food more frequency than female. 31% of male said they used fast food under three times monthly, 50% used fast food 3-5 times monthly and 19% said they used more than five time monthly, while 62% of female said they used fast food under three times monthly, 27% used 3-5 times, and 11% used more than five times monthly. Customers behavior by age. Over 30 years old (elder) compare with under 30 (younger) People over 30 years old (the elder) care much about nutrition, health and safety than people under 30 (the younger). 24% of the elder chooses nutrition factor as the reason of choosing brand, while 19% of the younger chooses nutrition. The younger cares about convenience much more than the elder, 57% younger people chooses convenience factor compared with 34% of elder. 79% elder people usually uses fast food at the lunchtime, white 57% younger people uses fast food at the lunchtime. Younger people tend to use fast food at dinner time than elder, while 41% of younger compare with 16% of elder. Customers behavior by income.

87

It is interesting that, there are no difference behaviors of customer about price between customers classified by income.

3.5.

Answering the research question

In this section all the questions of the Research question are answered.

Is there a need for my product or service? A survey conducted by AC

Nelsien showed that more than 70% of respondents like eating fast food. As results of the research, 59% said that fast food market is potential, and 14% said that it is very potential. 34% treated fast food can replace their main meal daily, while 76% choosed fast food for relax and changing atmosphere. Euromonitor forecasted that, growth rate of sales volume in fast food will reach 18,9% CAGR for the years 2009 2014. Beside, demographic factors like income, culture, habit, time for lunch and macro factor like economic, population, urbanlization, traffic indicated that it is very potential of Vietnam fast food market.

What is my target market? Who are the customers? Customer satisfaction?

According to Mr. Nguyen Thanh Duong, Vietmacs COO, almost fast food chained in Vietnam are concentrating on serving teenages and families with children for dinner. He added more Lunch time fast food market is very huge, Vietmac will focus on this opportunity, and main group of customer is officers who have 8 hours working, one hour lunch time, mid-up income. With current customer, they go out for fast food amlost for relax. Vietmacs CSI (cutomer satisfaction index) is bout 70 to 85%, while as survey result, 59% is satisfactory and 8% is very satisfactory with current fast food market. KFC is the most satisfied brandname with 56% satisfaction and 9% very satisfaction. The factors that customer satisfied are convenience with 52% satisfied and 15% very satisfied, brand name with 59% satisfied and 8% very satisfied, 88

service and staff behavior with 47% satisfied and 8% very satisfied. Opposite with satisfied factors, the factors that customer unsatisfied are nutrition, healthy and safety, tasty and flavor, flexible of menu.

What do customers expect from this type of product or service?

30% of respondents rated tasty and flavor is the most important factor, after that, 29% rated for nutrition and 18% rated for convenience factor. Because many people complained that fast food can't provide enough nutrition and even causes obesity, we have tried to make a burger that is clean, hygienic, nutritious and Vietnamese Mr. Duong said.

What are customers willing to pay for this type of product or service?
39% respondents said, they willing to use fast food and 18% sure they will use if fast food meet their demands. In another measurement, 34% treated fast food can replace their main meal while 76% choosed fast food for relax.

What specific companies are servicing this market? Are they successful? Are
there other companies servicing this market with a similar product? What is their market share? Some brand name that penetrated Vietnam market such as KFC, Lotteria, Jollibee, BBQ, Pho 24, Vietmac and almost of them are developing very well, market is potential. The main products of fast food market are: chicken fast food, burger fast food, bakery product fast food, Vietnam noodle. And KFC is now market leader with 11% market share in sales volume.

Is the market saturated or wide open? If so, why?

89

The market is very wide open while 70% people like eating fast food, 59% rated for potential and 14% rated for very potential of fast food market. Beside that, as mentioned demographic and macro factors all demonstrated that this market is potential.

What is the size of the market? Is it a growing market? Is the industry stable,
volatile, growing or trendy? Market size, and growing rate is shown in forecast sales in fast food by subsector: foodservice value 2011 2014 (Source: Euromonitor

international, fast food Vietnam report) VND billion Chained fast food Independent fast food Asian fast food Bakery products fast food Burger fast food Chicken fast food 2011 2.007,3 5.505,8 2.965,7 227,5 415,0 1.241,1 2012 2.373,8 5.712,5 3.111,1 242,3 488,3 1.474,3 2013 2.778,4 5.868,7 3.259,1 256,8 569,5 1.722,1 2014 3.233,7 5.970,8 3.398,4 271,0 659,1 1.993,7

As those figures, forecast sales in fast food by subsector, % foodservice Value growth rate in term 2009-2014 CAGR will be 18,9% with chained fast food, 17,9% with burger fast food and 19,9% with chicken fast food. Hanoi fast food market for lunch time is forecasted to reach 73 million us dollars annually (see also in Table 5. Hanoi fast food market sales forecast lunch time meal).

How can Vietmac reach the market?

Flexible its menu, add more salads and soups (product improvement). Rapidly expand its chained of restaurants to attractive more customer in more locations (Distribution and Promotion improvement). 90

Boosting sales by delivering as demand (Distribution improvement). Conducting adsvertisements in internet and outdoor (Promotion) As 76 percent like fast food because of relax purpose, so P.O.S dcor should be prior to conduct (Brand building).

How have competitors reached the market.

Almost competitors emloyed joint venture and franchising model to rapidly expand its chains. Invest more in dcor to attract more customers is chosen as one of marketing strategies. Some players have localized its menu to satisfy customers. In food industry, brand name is very important, this is competitive advantage of almost foreigner brand names.

What core competencies must the product or service have?

As the results of researh, the three important factors of any fast food porducts are tasty and flavor (rated by 30 percent), nutrition (rated by 29 percent) and convenience (rated by 18 percent), the other factors each product should pay more attention is brand name (rated by 7 percent) and menu flexibility (rated by 7 percent). Almost brands have core competencies to fight others such as: brand equity, strong capital, good location, mass store, standardize, and business model.

What is Vietmac competitive advantage? Create a new rice burger product

that suite to almost Vietnamese customers, Fresh and Vietnamese cuisine.

91

CHAPTER 4: SOME MARKETING RECOMMENDATIONS FOR VIETMAC

Shortly after the findings are made, the author will also make recommendations, and action plans in the future and finally concluded thesis.

4.1.

Recommendations

The fact that Vietmac has been doing marketing quite well. After only six months of testing and two months of launching its product, Vietmac has opened six stores in essential places in Hanoi city, e.g. Grand Plaza, FPT Building, The Garden, Parkson, 80. Ly Thuong Kiet. A major partner in HCM city has also offered to distribute the product in the south. According to the surveys, Vietmac also received very positive signals from customer, particularly for factors of nutrition, health and safty, tasty and flavor, convenience, and price. However, through analysis and research, the author has some recommendations for Vietmac to further improve its marketing activities:

Recommendations for Positioning

While consumers often think that eating fast food is mostly for fun and snack. Customers psychology treats fast food as quite expensive, using fast food sometime to show your image. Vietmac now will make it more simple, and closer. Any customers can access easily to Vietmac products. Vietmac shall make its products are popular for officer at the lunch time. To do these, Vietmac shall follow some recommendation about marketing mix as mentioned bellow. While the fast food is almost high in fat, calories, then Vietmac shall do it differently, nutritious, healthy and safety, Vietnamese cuisine, and fresh. Vietmac had done a good healthy elements of the product, so Vietmac shall

92

compare fried fast food e.g. KFC and rice burger of Vietmac and then PR for that. Focus on daily meal, Vietnam fast food, Vietnamese cuisine. Leader in Vietnamese cuisine fast food. So beside the slogan of Fresh Fast, Vietmac shall delivery more messages these are Daily lunch and Vietnam fast food

Recommendations for market target

Lunch for officer. 65% of asked people stated that, they usually use fast food for lunch while 32% usually use fast food for dinner. As General statistics office survey, in Hanoi there are approximately about 3.5 million officers. The total lunch market is estimated to reach 582.3 million us dollars and fast food for lunch is estimated to reach 73 million us dollars. While young people (under 30) quickly adopt western style fast-food, so Vietmac should focus on the age of over 30, especially women (as identified from Vietmac), they are more mature when choosing food, they care more about taste, nutrition and health. 76% said they go to the fast food store is to change atmostphere, eating for pleasure and fun, 34% treated for fast food can replace main meals. If Vietmac target on eating for fun customer, so Vietmac needs to focus on attracting P.O.S, comfortable funitures, eye-catching in the city center, and focus on youth. It is hard for Vietmac when competing directly with big name e.g. KFC, Lotteria. But the advantage of Vietmac is fast food with rice origined, nutrient, Fresh fast, so Vietmac should target on main meals in lunch time as replacement of Home delivery rice meals (Cm h p), Ordinary sidewalk meals (Cm b i) and traditional meals. This is suitable for majority, almost customers care about tasty, flavor and nutrient. To do this, Vietmac shall improve its menu, product, price, and place. When 18% go home for lunch and 6% they may prepare portion in morning and take it to the office, they may choose this way of lunch meal because of food 93

hygience and convenience and may be price. So it is very potential for Vietmac to focus on this group. Hygience, convenience, Vietmac has done well, but the price, it is quite hard to attract this group.

Recommendations for Product

Customer is satisfactory with current brand name, tasty and flavor, convenience and service staff. But they are not satisfactory with Nutrition, healthy and safety, price and menu flexible. In which, Vietmac had done better than rivals in nutrition, healthy and safety. While, nutrion, healthy and safety are the two most important rated by survey. So clearly that, Vietmac has competative advantage in product. Vietmac shall focus on these emlements and improve it. Strength of Vietmac is the menu close to the Vietnamese taste. However, Western-style fast food formats like burger or chicken either localized their food offer or added popular dishes like Vietnamese stewed fork, chicken curry, Jollibee is a pioneer in this localization. How should Vietmac do to stand out and lead in the fast food products originated from rice, Vietnamese cuisine. Of the eight factors examined to measure customer satisfaction for Vietmac, the diversity of the menu elements is rated as lowest satisfaction. Customer's comments almost concern about poor content of menu. Despite the commitment, menu which is flexible enough to be changed daily and maintained within two weeks will not repeat, however, compared with other fast food products, or with other product lines such as meal packaged, Cm b i, Home delivery rice meals (Cm h p), with 6-10 options each meal, Vietmac should consider increasing menu at least 6 choices each meal. According to customer's comments, Vietmac rice burger has one more problem that is lack of soup. Each portion should add a little cup of soup. From customers point of view, rice is dry, so they need one small bowl of soup to eat easily. It is also consistent with most dietary habits of Vietnam (rice, meat and soup).

94

As soon as possible, Vietmac shall diversify its menu, add more soup and salad. Soup can be contained in hot keeping box.

Recommendations for Price

The price of Vietmac is reasonable with 42% satisfied, 28% very satisfied. Vietmac should keep the prices as appropriate. But the author notes that, customer willing to pay more for fast food products, 61% said, the price is from 40.000 vnd to 60.000 vnd is accepted. With current price from 27.000vnd to 35.000vnd, Vietmac can increase a little if the product is improved. About 24% officer goes home and takes a portion prepared in morning to office for lunch, as the author, may be about the distance from home to office is short, or may be they afraid of not good for health when earting fast food, sidewalk rice shop or may be they care about the price, when prepare in the morning or go home for lunch is cheaper than eating in rice shop or fast food restaurant. So, while product of Vietmac is fresh, nutrition, safety and healthy, Vietmac shall care about the price, the price shall be very reasonable for almost of officer. The readiness to accept adjustment of fast food is also high, up to 50% of asked people approved an increasing of 10.000vnd to 20.000vnd per portion, 8% say they are not affected by the price increasing. Perhaps because they choose to eat fast food just for for fun, so they also do not care so much about price. But also keep in mind that 17% just accept the price under 40.000vnd per portion and 11% accept only adjustment under 10.000vnd per portion. The fact that, customer may accept the increasing in price, but it is better keeping the cheaper price at the first period of lauching, it may be under 40.000vnd per portion to achieve more customers. Vietmac shall run some promotion capain in price reducing in this phase of business.

Recommendations for Place

95

Display, decoration and position of Vietmac stores is not yet rated highly. Vietmac usually use spaces in food areas in big shopping center such as Parkson, Grand plazawith general design for a whole, but not design for a particular so Vietmac can not create the impression. This policy may be appropriate for Vietmac for early phase of development, however, the selection of place in the center city especially at cross - road , center building and dcor an impression space is essential, because consumers are very interested in interior space and interior design of point of sale.

Delivery as required is the most important factor in distribution channel while 81% says they prefer to delivery at home or office. This is also especially meaningful for the customer target in office, where they have only one hour for lunch, especially in the hot summer, and very cold winter, they do not want to go out. They want to call for meal in office, after that they can rest a while before business hours in the afternoon. So, Vietmac should concentrate on delivering as request.

Beside restaurent in shopping center, Vietmac shall consider to open more restaurants at the easy seeing place to attract more people.

Recommendations for Promotion

According to the survey three most important factors for customers to choose a brand are taste (58%), convenience (48%) and the brand names, origin (44%). While participating in fast food market in Vietnam, almost brands are big and reputable such as KFC, Lotteria, Jollibee, so it is very important for Vietmac to invest in brand awareness system. With the development of brands, Vietmac would consolidate much for nutrients and safety as well. With customer target is officer, according to the survey, up to 61% suggested that the best channel of advertising is internet, 55% selected the TV, followed by word of mouth (51%), and outdoor 50%. So if Vietmac has any marketing campaigns, advertising channel must balance the budget and marketing objectives. In my opinion, internet and outdoor ads should be prior to use. 96

For online advertising, Vietmac should choose some news webpage with contents about economic & finance (vnEconomy, Cafef), general newspape website (vnexpress, vietnamnet, dantri), for lady website (afamily, lamchame) or entertanment website (zing, ngoisao). Beside that, some social network webpages should be used are facebook, google plus, or yahoo. For outdoor, Vietmac can choose Evelator screen advertising in some office building. Because, whenever officer goes for lunch, they will see the luch food advertisment, so they may choose the product that attracted them. 77% said they go out for fast food meals with friends, colleagues, 40% go with family, so that promotion programs should focus on group of people. Groupon promotion is suggested to use for promoting this group. Some webpage has done well in groupon promotion are Muachung, Nhommua

4.2.

Action plans

In fact, because of time limitations, cost and manpower, this study can not be studied in depth, analyzing all the information required for Vietmac, especially information related to competitors, or research based on the classification of customers. So the author suggests further surveys on a large scale of the respondents and scope of information is very necessary for the next marketing activities of Vietmac. Such as customers behavior on Ordinary sidewalk meals (Cm b i) in detail, how customer treats with Vietmac rice burger and what are their suggestions for product in detail Vietmac shall consider above recommendations and plan detail action for each factor of marketing activities such as product improvement, pricing strategy, promotion campaign, and distribution channel.

4.3.

Conclusion

The study has reinforced the identification, assessment before of the board of Vietmac as well as the identification, analysis of the previous analyst. The study has pointed out an overview of the fast food market in Vietnam such as market characteristics, competitors, market opportunities, habits, needs, customer 97

satisfaction for fast food market and for Vietmac product. It has also helped Vietmac board of manager to have the necessary adjustments, and appropriate marketing activities. The author hopes this research will be an useful reference source for readers. Besides that, the author also looks forward to receiving ideas, contributions, feedbacks to improve this research, and to facilitate Vietmac leaders and readers to get more necessary information.

THE END.

98

REFFERENCES
Al ries and Jack Trout (2000) Positioning, The battle of your mind, Warner Books. American marketing association (1960) Marketing definitions: a Glossary of marketing terms, Chicago. E. Jerome McCarthy, (1999), Basic Marketing: A Managerial Approach, 13th ed., Homewood, IL: Irwin. Euromonitor International (November 2010), Fast food Vietnam, Country Sector Briefing, report. J. David hunger, Thomas L.Wheenlen (2006), Essentials of Strategic management, 4th edition, Prentice Hall, p. 83. John A. Jakle, Keith A. Sculle (2002), Fast Food: Roadside Restaurants in the Automobile Age, The Johns Hopkins University Press. Lars Perner, Ph.D (2008), Food marketing, University of Southern California, Report. Myy, (2009), Fast Food for Vietnam's Young Urbanites, Report. Peter Drucker (1973), Tasks, Responsibilities, Practices, New York: Harper & Row, p.p. 6465. Philip Kotler, (1980), Principles of Marketing, Prentice- Hall, Inc., page 136. Philip Kotler (2001), Marketing management, Millennium edition, Prentice-Hall, Inc., page 4 Rodriguez, Judith, (2007), Obesity & Health concerns. Robert Lauterborn, (1990), New Marketing Litany: 4Ps Passe; C-Words take over Advertising Age, Crain Communications, Inc., p. 26. Jennifer Packer Talwar, (2003), Fast Food, Fast Track: Immigrants, Big Business, and the American Dream, Westview Press. 99

William G. Zikmund (1986), Exploring marketing research second edition, Harcourt College Pub. World resources institute, population, health and human well-being. Country profile: Vietnam Internet sources: http://vietmac.vn http://kfcvietnam.com.vn http://lotteria.com.vn http://jollibee.com.ph Vietnam general statistic office (internet): http://www.gso.gov.vn The big boys crowd into Vietnams fast food market,

http://english.vietnamnet.vn/biz/2009/05/846270/ Fastfood: cu c ua c a nh ng ng l n: http://tuoitre.vn/Kinh-te/314606/Fastfoodcuoc-dua-cua-nhung-%E2%80%9Cong-lon%E2%80%9D.html Fast food Vi t bao gi ?: http://dddn.com.vn/2008062001254776cat117/fast-foodviet-bao-gio.htm

100

APPENDIXES
Appendixes 1. Information needed and questions for Vietnam fast food market Needed information Questions

(1) About competitors: This information is to indetify a general awareness of competitors, how many competitors in the indistry and who is the most chosen, who is leader in the market? What is the most important factor that customers chose one brand of fast food? From the information, we can also generate what is the strongest factor of each competitor? And we can also analyse SWOT model of each type of competitor Numbers of competitors. 1.1 Anh/ch vui lng ch n 01 (m t) nhn hi u fast food anh/ch yu thch nh t?

What is their competitive advantage?

1.2 Anh/ch vui lng ch n ra nh ng y u t khi n anh/ch ch n nhn hi u fast food cu h i trn?

(2) About the customers needs, habits, and satisfaction Factors that trigger the purchase of the 7.1. Anh ch ngh, fast food c th l? product (or service) Factors that influence the choice of 1.2 Anh/ch vui lng ch n ra nh ng y u t supplier khi n anh/ch ch n nhn hi u fast food cu h i trn? 3.1. Theo anh/ch , y u t no quan tr ng nh t i v i m t SP fast food? Consumers satisfaction with the product 2.2. Anh/ch vui lng cho bi t s th a mn i (or service) v i s n ph m/nhn hi u fast food ch n trn (theo cc y u t )? 2.3 Anh/ch vui lng cho bi t, m c hi lng chung c a anh/ch i v i 03 s n ph m fast food c l a ch n bn d i. What do customers expect from this type 3.1. Theo anh/ch , y u t no quan tr ng nh t of product (or service) i v i m t SP fast food? Customer habit? Go with Where? How to be served? whom? 2.1. Xin anh ch vui lng cho bi t c th ng xuyn thay i nhn hi u fast food? 101

2.4. Anh/ch th ng hay dng fast food vo th i gian no? 2.5. Anh/ch th ng dng fast food t i? 2.6. Anh/ch th ng i cng ai? (3) About product information Un-met needs opportunities) (new product 2.2. Anh/ch vui lng cho bi t s th a mn i v i s n ph m/nhn hi u fast food ch n trn (theo cc y u t )?

What core the competencies must the 3.1. Theo anh/ch , y u t no quan tr ng nh t products or services have (for both i v i m t SP fast food? product, price, service, distribution) Attitudes to new products (either in 8.2. N u anh ch bi t n Cm k p Vietmac, concept, as prototypes or in their finished xin vui lng cho bi t c m nh n ban u v SP, form) for Vietmac d ch v ? (4) About price information Prices of the products Price sensitivity product. (elasticity) of 4.1. Theo anh/ch , m c gi no d i y c th c coi l ph h p cho 01 su t n. the 4.2. M c thay i no d i y c a gi c th nh h ng n vi c thay i l a ch n m t SP fast food?

(5) About promotion information Sources through which consumers and 5.1. Thng tin qu ng co th ng potential consumers acquire their anh/ch theo nh ng knh no? information on products and services (6) About distribution information Distribution channels (Questionnaire) (7) About market struture Market size / volume segmentation Market share segmentation Secondary data Secondary data 6.1. Theo anh/ch , knh phn ph i no d i y nn c s d ng i v i fast food? n v i

Is the market saturated or wide open? If 2.7. Anh ch cho bi t m c s n lng s d ng so, why? fast food n u p ng c cc yu c u c a anh ch ? 7.1. Anh ch ngh, fast food c th : 7.2. Anh ch vui lng cho bi t quan i m c a 102

anh/ch v m c ti m nng pht tri n th tr ng Fast food t i Vi t Nam? 7.3. Anh ch vui lng cho bi t c s d ng cc s n ph m fast food trong vng 03 thng v a qua? 7.4. Anh ch vui lng cho bi t, trung bnh m i thng dng bao nhiu l n (trong vng 03 thng qua)? (8) About awareness of vietmac products If customer know about Vietmac rice 8.1. Anh ch vui lng cho bi t s nh n bi t c a burger mnh v s n ph m Cm k p Vietmac? The first reaction about Vietmac rice 8.2. N u anh ch bi t n Cm k p Vietmac, burger xin vui lng cho bi t c m nh n ban u v SP, d ch v ? (9) About segmentation opportunities Demographics of the population in terms 9 Thng tin c nhn of age, gender, income group, location Behaviour of the population in terms of 2.1. Xin anh ch vui lng cho bi t c th ng how they buy (eg frequency of purchase, xuyn thay i nhn hi u fast food? place of purchase, size of purchase etc) 2.4. Anh/ch th ng hay dng fast food vo th i gian no? 2.5. Anh/ch th ng dng fast food t i? 2.6. Anh/ch th ng i cng ai?

103

Appendixes 2. Questionnaire for Vietnam fast food market

Hanoi School of Business HSB - MBA7 Fast food questionnaire Lunch time focus

KH O ST NH N TH C V S

TH A MN

V S N PH M FAST FOOD Email Version

Ti hi n l h c vin chng trnh MBA tr ng Hanoi School of Business HSB, i h c Qu c Gia H N i. Ti ang th c hi n ti nghin c u v marketing research cho ngnh s n ph m fast food t i Vi t Nam. Nh ng ki n ng gp c a cc anh/ch s ng gp ph n r t quan tr ng i v i nghin c u c a ti. R t mong nh n c s chia s ki n v ng h c a cc anh/ch . B n survey xin c g i v : ductbol@gmail.com Xin chn thnh c m n v knh chc anh/ch lun g p nhi u ni m vui, may m n v h nh phc. 1. V CC NHN HI U/S N PH M THAM GIA TRN TH TR NG FAST FOOD 1.1. Anh/ch vui lng ch n 01 nhn hi u fast food anh/ch yu thch nh t? KFC Jollibee Lotteria Ph 24 Cm k p Vietmac Khc

1.2. Anh/ch vui lng ch n ra nh ng y u t khi n anh/ch ch n nhn hi u fast food Thng hi u, xu t x , bao b Ti n d ng (th i gian) Trang tr c a hng Dinh d ng/s c kh e Th c n phong ph D ch v bn hng/ph c v

cu h i trn?

Thm ngon/h p kh u v Gi c h p l Y u t khc

2. V NHU C U, THI QUEN, S TH A MN C A KHCH HNG 2.1. Xin anh/ch vui lng cho bi t c th ng xuyn thay i nhn hi u fast food? r t hi m khi, n Thang i m Khung ch n 2.2. Anh/ch vui lng cho bi t s th a mn i v i s n ph m/nhn hi u fast food c ch n (m c 1.1). Ch n theo thang i m t r t khng hi lng n r t hi lng trn r t th ng xuyn 1 2 3 4 5

104

Cc y u t 1 1. Thng hi u, xu t x , bao b 2. Dinh d ng/s c kh e 3. Thm ngon/h p kh u v 4. Ti n d ng (th i gian) 5. Th c n phong ph 6. Gi c h p l 7. Trang tr c a hng 8. D ch v bn hng/ph c v 9. Y u t khc 2.3. Anh/ch vui lng cho bi t, m c c l a ch n bn d i. Ch n theo thang i m t Cc thng hi u/s n ph m 1 1. KFC 2. Jollibee 3. Cm k p Vietmac 2 2

Thang i m ch n 3 4 5

hi lng chung c a anh/ch i v i 03 s n ph m fast food r t hi lng Thang i m ch n 3 4 5

r t khng hi lng n

2.4. Anh/ch th ng hay dng fast food vo th i gian (c th ch n nhi u l a ch n): B a sng B a tra B at i

2.5. Anh/ch th ng dng fast food t i (c th ch n nhi u l a ch n): T i i m bn Mua v ni lm vi c Mua v nh Ni khc

2.6. Anh/ch th ng i cng ai (c th ch n nhi u l a ch n): i m t mnh Cng b n b, ng nghi p Cng gia nh Cng nhm khc ng c cc yu

2.7. Anh ch vui lng cho bi t m c s n lng s c u c a anh ch ? Ch n theo thang i m t Thang i m Khung ch n khng s n sng n

d ng SP fast food n u p

r t s n sng 1 2 3 4 5

3. THNG TIN S N PH M 3.1. Anh/ch vui lng ch n 01 y u t quan tr ng nh t i v i m t SP fast food? Thng hi u, xu t x , bao b Ti n d ng (th i gian) Dinh d ng/s c kh e Th c n phong ph Thm ngon/h p kh u v Gi c h p l

105

Trang tr c a hng

D ch v bn hng/ph c v

Y u t khc

4. THNG TIN GI C 4.1. Theo anh/ch , m c gi no d i y c th c coi l ph h p cho 01 su t n? D i 40.000 60.000 80.000 40.000 60.000 Trn 80.000 nh h ng n vi c l a ch n m t SP fast food?

4.2. Theo anh/ch , m c thay i no c a gi c th D i 10.000 20.000 30.000 Khng b nh h ng 10.000 20.000 Trn 30.000

5. KHUY CH TRNG 5.1. Thng tin qu ng co th ng n v i anh/ch theo nh ng knh no? (c th ch n nhi u l a ch n) Truy n hnh Qu ng co ngoi tr i Internet Truy n mi ng Bo gi y T ri Knh thng tin khc

6. KNH PHN PH I 6.1. Theo anh/ch , knh phn ph i no d i y nn c s (C th ch n nhi u l a ch n) T i i m bn hng T i cc qun cafe

d ng i v i fast food?

Giao theo yu c u

Knh khc

7. C U TRC TH TR NG 7.1. Anh ch ngh, fast food c th (C th ch n nhi u l a ch n) Thay th b a n chnh n ngon / xa x Khc 7.2. Anh ch vui lng cho bi t quan i m c a anh/ch v m c ti m nng pht tri n th tr ng Fast food t i Vi t Nam? Ch n theo thang i m t : khng ti m nng n : r t ti m nng Thang i m Khung ch n 7.3. Xin anh ch vui lng cho bi t c s C Khng d ng cc s n ph m fast food trong vng 03 thng qua? 1 2 3 4 5 n cho vui, thay i khng kh n ti c tng, sum h p

7.4. Xin anh ch vui lng cho bi t, trung bnh m i thng dng bao nhiu l n (trong vng 03 thng qua)? D i 03 l n 35l n Trn 5 l n

106

8. THNG TIN V CM K P VIETMAC 8.1. Anh/ch c bi t v t ng dng s n ph m fast food Vietmac? dng s n ph m C nghe tn Cha bi t n s n ph m

8.2. N u anh/ch bi t n Cm k p Vietmac, xin vui lng cho bi t nh ng c m nh n ban u v SP?

9. THNG TIN NG I TR

L I

Anh ch vui lng cho bi t thng tin c nhn bn d i lm c s nh gi cho b ng kh o st ny. M i thng tin c nhn c a anh ch s c gi b m t v khng ph c v cho m c nh no khc. Anh ch vui lng cho bi t thng tin c nhn bn d i lm c s nh gi cho b ng kh o st ny. M i thng tin c nhn c a anh ch s c gi b m t v khng ph c v cho m c nh no khc. Email: tu i: Tnh tr ng hn nhn: Thnh ph : H N i lienttm@vinaphone.vn Gi i tnh 31 n 40 c thn N u H n i, xin vui lng ch n Qu n: Ngh nghi p: Nam N

Marketing/Sales k t hn ng a

Thu nh p bnh qun /thng (1.000.000 ): Khng c thu nh p 10 15 tri u d i 5 tri u trn 15 tri u 5 10 tri u

C m n b n tr l i phi u thm d.

107

Appendixes 3. Questionnaire for Vietmac satisfaction measurement

CM K P VI TMAC - PHI U NH GI Phi u kh o st s th a mn khch hng.

Print version

Knh g i: Qu khch hng

Nh m nng cao kh nng tho mn nhu c u Khch hng, chng ti mong nh n bi t s hi lng c a Qu cng ty v s n ph m, d ch v Cm k p Vi tmac. Xin vui lng cung c p nh ng nh n xt khch quan c a Qu cng ty theo nh ng n i dung sau: Qu khch vui lng s d ng h th ng thang i m nh gi m c lng/khng ph h p) n 5 (r t hi lng/ph h p). Khng c n nh gi nh ng ch tiu Qu v khng quan tm. hi lng t 1 (r t khng hi

Ch tiu nh gi
1. Thng hi u, xu t x , bao b 2. Dinh d ng/s c kh e 3. Thm ngon/h p kh u v 4. Ti n d ng 5. Th c n phong ph 6. Gi c h p l 7. Trang tr c a hng 8. D ch v bn hng/ph c v 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 3 3 3 3 3 3 3 3 3

Thang i m 4 4 4 4 4 4 4 4 4 5 5 5 5 5 5 5 5 5

9. V i s hi lng ny, 1 anh/ch s ti p t c s d ng s n ph m c a chng ti

Xin qu khch hng ng gp thm nh ng ki n khc gip chng ti c i ti n v ph c v t t hn: ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ Xin chn thnh c m n! Thng tin c nhn ng i tr l i: Ti l ng i quy t nh mua s n ph m Ti c m i dng SP Nam N Tu i: __________ H tn: ___________________________Gi i tnh a ch c quan (ghi qu n) ___________ Ngy thng ___/___/2011

C quan cng tc: __________________Chuyn mn _______________________________

108

Appendixes 4. Research planning schedule

No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Task name I. Innitial jobs Problems discorvery Problem definition and statement of objectives Topic choosing Outline thesis Outline thesis II. Data gathering, processing and analyzing Innitial research with second data Data and information needed identifying Questionraire design & data gathering Vietnam fast food market survey Vietmac rice burger survey Data editing, coding, processing and analyzing III. Thesis writing & reporting Introduction Literature review Vietnam fast food market & Vietmac Survey conducting & Finding Marketing recommendations Editing and revising Full schedule Duration 14 days 7 days 1 day 1 day 3 days 2 days 133 days 10 days 3 days 90 days 90 days 30 days 30 days 183 days 7 days 7 days 30 days 30 days 10 days 10 days 274 days Start 01/02/11 8:00 01/02/11 8:00 10/02/11 8:00 11/02/11 8:00 14/02/11 8:00 17/02/11 8:00 21/02/11 8:00 21/02/11 8:00 07/03/11 8:00 10/03/11 8:00 10/03/11 8:00 10/03/11 8:00 14/07/11 8:00 21/02/11 8:00 21/02/11 8:00 02/03/11 8:00 07/03/11 8:00 25/08/11 8:00 06/10/11 8:00 20/10/11 8:00 01/02/11 8:00 Finish 18/02/11 17:00 09/02/11 17:00 10/02/11 17:00 11/02/11 17:00 16/02/11 17:00 18/02/11 17:00 24/08/11 17:00 04/03/11 17:00 09/03/11 17:00 13/07/11 17:00 13/07/11 17:00 20/04/11 17:00 24/08/11 17:00 02/11/11 17:00 01/03/11 17:00 10/03/11 17:00 15/04/11 17:00 05/10/11 17:00 19/10/11 17:00 02/11/11 17:00 02/11/11 17:00 2 3 4 5 Prede cessors

6 8 9 9 11 6 15 8 13 18 19

THE END.

109