International management

Business project

Mc Donalds
Firm from US and a famous brand about fast food all over the world

OUTLINE
I. INTRODUCTION
II. VIETNAM MARKET ANALYSIS III. SWOT ANALYSIS

IV. MARKET PRESENTATION STRATEGY

V. CONCLUSION

I. INTRODUCTION

64 million customers daily

I. INTRODUCTION

PRODUCT

I. INTRODUCTION

REASON?

II. VIETNAM MARKET ANALYSIS

POLITICAL
- OPEN TO FOREIGN INVESTMENT - Government is paying more attention to the benefits and interests of customers - Business firms must meet the requirements on product safety, labor laws, truth in adverts, environmental issues, and customers interest and so on

II. VIETNAM MARKET ANALYSIS

Bind all tariff lines Remove non-tariff barriers in a time certain

MEMBER OF WTO ECONOMIC 11.01.2007 Conduct tariff reduction

II. VIETNAM MARKET ANALYSIS

ECONOMIC In 2012, Ha Noi at around $ 2,200 /person STEADY ECONOMIC GROWTH

In Ho Chi Minh City is $ 3,600 / person

II. VIETNAM MARKET ANALYSIS

In 2020:

Stabilize the economy

ECONOMIC Emerging market Build world-class infrastructure

Create a skilled labor force

Ground floor and growing opportunitiesfor foreign exporters and Strengthen market-based institutions investors

II. VIETNAM MARKET ANALYSIS

Population =

Culture Food is a very important part of Vietnamese culture

SOCIAL 89.2 million CULTURE

II. VIETNAM MARKET ANALYSIS

Vietnamese like to buy at a cheap price Careful in buying decision Not loyal to one product, but some are likely to choose the products they trust Vietnamese prefer to try products by themselves than to believe salespersons

SOCIAL - CULTURE Consumption habits

II. VIETNAM MARKET ANALYSIS

TECHNOLOGY
- Vietnam is a rapidly developing country in technology. - Modern and high-tech equipment are in use - Standard of living has improved is offered various products and services on demand

II. VIETNAM MARKET ANALYSIS LEGISLATION

-Enacted Constitution in 1992 -The Law on Investment in Viet Nam -The Law on Enterprises in Vietnam -Weak and evolving legal system -Judiciary is controlled by the ruling party (CPV). -Potential government interference to satisfy their own agenda

II. VIETNAM MARKET ANALYSIS

COMPETITION

The Vietnamese competitors: sidewalk bakeries

II. VIETNAM MARKET ANALYSIS

COMPETITION
The foreign competitors: KFC Operated for 16 years in Vietnam (1997) 134 shops Young population and children

II. VIETNAM MARKET ANALYSIS

COMPETITION
The foreign competitors: Loatteria Invested in Vietnam from 1998 146 restaurants Steady expansion strategy

II. VIETNAM MARKET ANALYSIS

The cost of franchising

Regarding the franchising fees, the initial fee would be no less than

$45.000

Become a mcdonalds partners , they must be very rich.

III. SWOT ANALYSIS

STRENGTHes

-Brand equity..world wide -Enthusiastic and responsible staffs -Strong public relations strategies -Good quality assurance and good customer service

-Low price of products

-Ability to learn from competitors mistakes

III. SWOT ANALYSIS

WEAKNESSes

-Late Entry
-Disgruntled franchises

-Limited Menus than competitors

-Contribution to obesity

III. SWOT ANALYSIS

OPPORTUNITies
-International expansion
-Increase in demand for fast food in Vietnam -Innovation in product and services -Fast food penetration still low which is --an opportunity for growth -Huge pool of skilled labor force

III. SWOT ANALYSIS THREATS

-Strength of existing competitors -More local and foreign competitors rising quickly -Government policies on fast food and healthy meal -Outbreak of bird flu

IV. MARKET PRESENTATION STRATEGY

1. Permanent Product Strategy

PRODUCT STRATEGIES

2. Temporary Product Strategy 3. Local Product Development Strategy 4. Local Adaptation Strategy

IV. MARKET PRESENTATION STRATEGY

PRODUCT STRATEGIES

1.Permanent Product Strategy -Menu is permanent

-There is always something familiar for consumers on the menu

IV. MARKET PRESENTATION STRATEGY

2.Temporary Product Strategy

PRODUCT STRATEGIES

-The McRib - product is offered only seasonally

-The Big Ocean was offered only for a few months in 2007

IV. MARKET PRESENTATION STRATEGY

3. Local Product Development Strategy

PRODUCT STRATEGIES

Local customers have foods to fit their tastes.

IV. MARKET PRESENTATION STRATEGY

PRODUCT STRATEGIES
4. Local Adaptation Strategy -Quality breakfast -Convenience

-Menu additions
-Delivery services

-Value for money

IV. MARKET PRESENTATION STRATEGY

PRICE STRATEGIES
-Cheaper rate
-Competitive price -Combo packs

IV. MARKET PRESENTATION STRATEGY

PROMOTION STRATEGIES
Spokesman - Ronald McDonald Radio and television advertising

"Healthy" menu items

IV. MARKET PRESENTATION STRATEGY

DISTRIBUTION STRATEGIES
-HCM city is the first best city conditions restaurant to open
-Expending in other large urban centers

-McDonalds will partner with the Vietnamese Ministry of Agriculture

IV. MARKET PRESENTATION STRATEGY

---Using a scheme that will satisfy Vietnamese employees ---Conducting a comprehensive market survey of competitors store locations in Vietnam combined with demographic data ---Continuing to have the right products at the right price ---Distributing outlets into showplaces ---Keep promoting the brand in Vietnam

PLANT OF IMPLEMENTATION

IV. CONCLUSION

Maintaining the core strengths Emphasis on consistency and quality Testing with innovative options McDonalds fast-food image

Thank you for loving mC donalds