Marketing 18Apr Nguyễn Anh Vũ I5M

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NATIONAL ECONOMICS UNIVERSITY, HANOI BTEC HND IN BUSINESS (MARKETING) ASSIGNMENT COVER SHEET IBD REG. NO: UNIT TITLE Unit 1: Marketing ASSIGNMENT TITLE 1901 Hot Dogs ASSIGNMENT TYPE 1 of 2 (Individual Report) NAME OF ASSESSOR Jeffery Lim / Ms. Thanh SUBMISSION DEADLINE April 11 th , 2011 (Monday) I, __________________________ hereby confirm that this assignment is my own work and not copied or plagiarized from any source. I have referenced the sources from which information is obtained by me for this assignment. ________________________________ _________________________ Signature Date 0

Transcript of Marketing 18Apr Nguyễn Anh Vũ I5M

NATIONAL ECONOMICS UNIVERSITY, HANOI BTEC HND IN BUSINESS (MARKETING)ASSIGNMENT COVER SHEET

IBD REG. NO: UNIT TITLE ASSIGNMENT TITLE ASSIGNMENT TYPE NAME OF ASSESSOR SUBMISSION DEADLINE

Unit 1: Marketing

1901 Hot Dogs1 of 2 (Individual Report) Jeffery Lim / Ms. Thanh April 11th, 2011 (Monday)

I, __________________________ hereby confirm that this assignment is my own work and not copied or plagiarized from any source. I have referenced the sources from which information is obtained by me for this assignment.

________________________________ _________________________ Signature Date

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---------------------------------------------------------------------------------------------------------------FOR OFFICIAL USE

ASSIGNMENT GRADE

Common Skills Grade A B C D E F G

Unit OutcomesOutcome Evidence for the criteria Feedback Assessors decision Internal Verification

Compare alternative definitions of marketing

a

Investigat e the concept and process of marketing (1)

Identify the main characteristics of a marketing oriented organisation

b

Explain the various elements of the marketing concept

c

Identify and assess the benefits and costs of a marketing approach

d

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Outcome

Evidence for the criteria Identify and explain macro and micro environmental factors which influence marketing decisions

Feedback

Assessors decision

Internal Verification

a

Explore the concepts of segmentat ion, targeting and positionin g (2)

Propose segmentation criteria to be used for two products in different markets Outline the factors which influence the choice of targeting strategy Explain how buyer behaviour affects marketing activities in two different buying situations

b

c

d

Merit grades awarded Distinction grades awarded

M1 D1

M2 D2

M3 D3

Assignment( ) Well-structured; Reference is done properly / should be done (if any) Overall, youve

Areas for improvement:

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Outcome

Evidence for the criteria

Feedback

Assessors decision

Internal Verification

ASSESSOR SIGNATURE NAME:.........................................................................(Oral feedback was also provided) STUDENT SIGNATURE NAME :................................................................................. DATE /

DATE

/

/

/

FOR INTERNAL USE ONLY

VERIFIED

YES

NO

DATE : ........................................................... VERIFIED BY : ........................................................... NAME : ...........................................................

COMMON SKILLS & COMPETENCIES ASSESSED (indicated by X)

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1. Managing own roles & responsibilities 2. Manage own time in achieving objectives 3. Undertakes personal and career development 4. Transfer skills gained to new/changing situations & contexts

X

12. Use information sources 13. Deal with a combination of routine & non-routine tasks 14. Identify & solve routine & non-routine problems

X

X X15. Applying numerical skills and techniques

5. Treat others beliefs and opinions with respect 6. Relate & interact effectively with individuals & groups 7. Work effectively as a team member

16. Use a range of technological equipment and systems 8. Receive and respond to a variety of information 9. Present information in a variety of visual forms 10. Communicate in writing 11. Participate in oral & no-verbal communication

X X17. Applying a range of skills and techniques to develop a variety of ideas in the creation of new / modified products, services or situations 18. Use a range of thought processes

X

TABLE OF CONTENTEVIDENCE FOR THE CRITERIA ..............................................................................................................................2 B. WORKING WITH & RELATING TO OTHERS .................................................................................5 E. APPLYING NUMERACY.....................................................................................................................5 F. APPLYING TECHNOLOGY.................................................................................................................5 C. COMMUNICATING..............................................................................................................................5 G. APPLYING DESIGN AND CREATIVITY...........................................................................................5 TABLE OF CONTENT........................................................................................................................................5 MARKETING REPORT.....................................................................................................................................8 A. INTRODUCTION: ............................................................................................................................8 1901 Hot Dogs........................................................................................................................................8 B. FINDINGS:...........................................................................................................................................11 I. PART 1......................................................................................................................................................11 THE BASIC CONCEPT OF MARKETING...................................................................................................................11 I(a)/ Compare alternative definitions of marketing and explained the importance of being a contemporary marketer.........................................................................................................................11 I(b)/ Identify the main characteristics of a market-orientated organization for todays modern business. ..............................................................................................................................................................14 I(c)/ Identify the elements of marketing concept and explain its important to 1901 Hot Dogs...............16 I(d)/ Identify and assess the benefits and costs of a marketing approach for 1901 Hot Dogs in Vietnam. ..............................................................................................................................................................20 II. PART 2....................................................................................................................................................22 SEGMENTATION, TARGETING AND BUYER BEHAVIOR.............................................................................................23 II(a)/ Identify and explain macro and micro environmental factors which influence marketing decisions affecting 1901 Hot Dogs in Vietnam......................................................................................................23 II(b)/ Propose segmentation criteria to be used for 1901 Hot Dogs in two different markets in Vietnam. ..............................................................................................................................................................28 It is believed that an organization cannot satisfy all the customers need and want. It wastes a lot of time and money to satisfy all customers and it is unnecessary. According to my understand, segmentation, simply a process of dividing a market into sections, which have common characteristic,

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behavior and so on. There are two factors need to be considered when selecting a target market segment are the captivation of the segment and its appropriate for the companies goals, objectives, resources and capabilities. ...................................................................................................................28 There are many ways to segment the market. In this case, I only focus on 2 main base segmentations of Vietnamese market: geographic and demographic................................................................................29 1/ Demographic....................................................................................................................................29 Among these above factors, age and income are considered to be the two most important factors. Firstly, the consumers age can be divided into 3 areas: children, teenager and adult. For the children, 1901 Hot Dogs can set a children menu for them which is small and suitable portion for a child, attractive and various meals. Besides, applying some event such as offering them a gift after consuming 2 or 3 times the children set. For the teenagers, they prefer a big and enough nutrition set meal. However, it is hoped that 1901 Hot Dogs can serve them a big meal with an appropriate price, because their main income comes from their parents. 1901 Hot Dogs should focus strongly on this area because they are the biggest area compared to 2 others areas. As we have known, teenage is the period of time we need to consume enough nutrition (2500 calories/day for girl and 2900 calories/day for boy). Obviously, they put their choice on fast food not only because of its delicious but also because they find it very interesting and proud when their friends see them eating in a nice view fast food restaurant. Therefore, satisfying teenagers is very important for 1901 Hot Dogs. The last area is the adult people which are already have income and lack of time for cooking. 1901 Hot Dogs need to consider about the quality, not about the quantity in this area. The women maintain their physical appearance very carefully. Thus, the sets meal for the adult people should provide not only protein, starch but also adequate vitamin...................................................................................................................................29 Income is considered as an important factor also. It can be seen clearly that the urban residents have the highest income compared to other areas. However, to consume fast food frequently require the average income more than 500 USD. So the people who have the average income more than 500 USD will be the target of 1901 Hot Dogs. Because a regular deal is priced at 6.5RM (about 45.000vnd) and a regular orange juice/ lemon tea is priced at 2.20RM (about 15.000vnd). Thus, going to 1901 Hot Dogs for a meal may cost Vietnamese people about 60.000vnd, required medium level and high level income. Paying that level for a meal, the customers demand 1901 Hot Dogs serve them a good service such as fast delivery service, cleanliness and good serving attitude......................................................30 2/ Geographic........................................................................................................................................30 The following are some examples of geographic variables often used in segmentation:......................30 Vietnam has a rapid population growth; the average growth rate of Vietnam's population is 2.23 %. The population of Vietnam is large enough to make it second most populous country in the South-East Asia, seventh in the Asia-Pacific region and the 12th most populous in the world-list. It is suggested that Vietnam is a big and potential market for 1901 Hot Dogs. As being mentioned in the previous part, income is one of the most important factor, so the two biggest cities: Hanoi and Ho Chi Minh (representing for North and South) should be concerned to be the two main markets...........................30 The reason for dividing into 2 markets (North and South) is that the cuisine culture of each region has its own features. The Northern cuisine is not strong spicy, fatty and sweet as other regions. They mainly use diluted fish sauce, more vegetables and other fresh seafood readily available such as shrimp, crab, fish, clams, mussels, etc. Generally, because of the ancient tradition with poor agriculture, Northern food in the past did not prevalent the main dish with raw material are meat and fish. Many people highly appreciated Hanoi culinary, they indicated that Hanoi culinary represents for the essence of the typical North cuisine.................................................................................................30 However, the Southern cuisine which was influence strongly of Chinese, Cambodia and Thailand food, have the main characteristic is that often use sugar and coconut essence. Southern cuisine also used more seafood (in salt groundwater and brackish groundwater) than the Northern...............................31 Understanding those cultures, 1901 Hot Dogs needs to pay attention to process the appropriate meal for each region. For example, 1901 Hot Dogs should serve more sweet spicy and chilly sauce for the existing meals in the Southern. On the other hand, 1901 Hot Dogs might have to create and serve some dishes which are less sweet and bitter for the Northern. .......................................................................31 II(c)/ Outline the factors which influence the choice of targeting strategy for 1901 Hot Dog in Vietnam ..............................................................................................................................................................31 Once a firm has successfully identified the segments within a market, the next step is to target these segments with products that closely match the needs of the customers within that segment. The

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selection of potential customers to whom a business wishes to sell products or services. The targeting strategy involves segmenting the market, choosing which segments of the market are appropriate, and determining the products that will be offered in each segment. A business offering multiple products can determine if the various segments should receive one generic product (such as in mass marketing), or if each segment should receive a customized product (multi-segment), based upon the market's diversity, maturity, the level of competition and the volume of sales expected also called targeting. There are a number of targeting strategies, including:.........................................................................31 Niche/concentration marketing..............................................................................................................31 Mass/undifferentiated marketing...........................................................................................................31 Differentiated/selective marketing.........................................................................................................31 In this case, mass/undifferentiated marketing is my best choice for 1901 Hot Dogs in entering the Vietnam market. Mass marketing is a market coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer. It is type of marketing (or attempting to sell through persuasion) of a product to a wide audience. The idea is to broadcast a message that will reach the largest number of people possible. Traditionally mass marketing has focused on radio, television and newspapers as the medium used to reach this broad audience. The reason for choosing this targeting strategy is that mass marketing is most suitable for products which are affordable and variety in nature. The disadvantage of niche marketing in this case is that the potential for sales growth and economies of scale may be limited, and the survival of the firm may be seriously affected if sales begin to decline. The differentiated/ selective marketing will not be chosen because the main disadvantages of this approach include confusion amongst customers when faced with dozens of brands and lost economies of scale from shorter production runs and the additional costs of having to advertise several rather than one brand. Customers need variety yet affordable. If the product is too expensive, they are still unable to buy until later stage. With mass marketing, 1901 Hot Dogs can produce on a large scale, expanding a huge number of branches, making profit from the lower and affordable price....................................................................................................................32 As selecting the demographic and geographic segmentation, market variability is also a factor that can not be ignored. The Vietnamese consumers demand differently tastes, preferences and reactions to stimulus and other marketing mixes. Accordingly, 1901 Hot Dogs need to create constantly more and more types of dishes, set meal and dessert also to satisfy their customers.............................................32 Finally, competitors marketing strategies is an important external factor should be concerned also. There are many existing famous brands in Vietnam such KFC, BBQ, Lotteria, etc. For a new comer like 1901 Hot Dogs, they are a market challenger, brand-oriented PR will be used to disseminate and advertising. 1901 Hot Dogs needs to have a professional campaign to communicate with the customers and gain customers awareness, support and loyalty............................................................................32 Mt khi mt cng ty thnh cng trong vic xc nh cc phn on trong mt th trng, bc tip theo l nhm mc tiu cc phn on vi cc sn phm ph hp nht vi nhu cu ca khch hng trong phn khc . Vic la chn ca khch hng tim nng m doanh nghip mun bn sn phm hay dch v. Chin lc nhm mc tiu lin quan n vic phn chia th trng, la chn cc phn on ca th trng l thch hp, v xc nh cc sn phm s c cung cp trong mi phn khc. Mt doanh nghip cung cp nhiu sn phm c th xc nh nu cc phn on khc nhau nn nhn c 1 sn phm chung chung (nh trong tip th i chng), hoc nu mi phn khc s nhn c 1 sn phm ty bin (a-phn on), da trn s a dng ca th trng, trng thnh, mc cnh tranh v khi lng bn hng d kin cng c gi l nhm mc tiu. C mt s mc tiu chin lc, bao gm: - Niche / tp trung tip th - Thnh L / tip th khng phn bit - Tip th phn bit / chn lc Trong trng hp ny, khi lng / tip th khng phn bit l s la chn tt nht ca ti cho 1.901 con ch nng vo th trng Vit Nam. Thnh L tip th l mt phm vi bo him th trng chin lc, trong cng ty quyt nh b qua s khc bit phn khc th trng v i sau khi ton b th trng vi mt li ngh. y l loi hnh tip th (hoc c gng bn thng qua thuyt phc) ca mt sn phm cho mt i tng rng. tng l pht sng mt thng ip rng s t s lng ngi ln nht c th. Theo truyn thng hng lot tip th tp trung trn truyn hnh, i pht thanh v bo ch nh l phng tin c s dng tip cn i tng rng. L do cho vic la chn chin lc ny nhm mc tiu l tip th i chng l thch hp nht cho cc sn phm c gi c phi

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chng v a dng trong thin nhin. Nhng bt li ca tip th thch hp trong trng hp ny l tim nng cho doanh s bn hng tng trng v nn kinh t ca quy m c th b gii hn, v s sng cn ca cng ty c th nh hng nghim trng nu doanh s bn hng bt u gim. Tip th khc bit / chn lc s khng c la chn bi v nhng nhc im chnh ca phng php ny bao gm s nhm ln gia cc khch hng khi phi i mt vi hng chc nhn hiu v nn kinh t b mt ca quy m t chy sn xut ngn hn v chi ph b sung phi qung co nhiu hn l mt thng hiu. Khch hng cn nhiu nhng gi c phi chng.Nu sn phm l qu t, h vn khng th mua cho n khi giai on sau. Vi tip th i chng nm 1901 Hot Dogs c th sn xut trn quy m ln, m rng mt s lng ln ca chi nhnh, lm cho li nhun t mc gi thp hn v gi c phi chng. Khi la chn cc phn on nhn khu hc v a l, th trng bin ng cng l mt yu t khng th b qua. Ngi tiu dng Vit Nam yu cu khc nhau th hiu, s thch v phn ng vi kch thch v hn hp tip th khc. Theo nm 1901 Ch Hot cn to ra cc loi lin tc hn v nhiu hn na cc mn n, thit lp ba n v mn trng ming cng p ng khch hng ca h. Cui cng, chin lc tip th ca i th cnh tranh l mt yu t quan trng bn ngoi cng cn c quan tm. C rt nhiu thng hiu ni ting hin c ti Vit Nam nh KFC, BBQ, Lotteria, ... i vi mt lnh mi nh 1901 Hot Dogs, h l mt thch thc th trng, theo nh hng thng hiu PR s c s dng ph bin v qung co. 1901 Ch Hot cn c mt chin dch chuyn nghip giao tip vi khch hng v c khch hng nng cao nhn thc, h tr v lng trung thnh......33 II(d)/ Explain how buyer behavior affects marketing activities in two different buying situations for 1901 Hot Dog in Vietnam......................................................................................................................35 C. CONCLUSION:............................................................................................................................................46 ENTERING INTO A NEW MARKET, 1901 HOT DOGS HAS MORE ADVANTAGES AND OPPORTUNITIES AS A MARKET CHALLENGER . THIS REPORT IS CONDUCTED TO SUPPORT FOR 1901 HOT DOGS IN ENTERING INTO VIETNAM MARKET TOWARD PRACTICE OF MARKETING APPROACH . THERE ARE MANY CHARACTERISTICS , ELEMENTS , BENEFITS AND COSTS OF MARKETING CONCEPT NEEDED TO BE CONCERNED BY 1901 HOT DOGS IN ORDER TO APPROACH VIETNAMESE MARKET. FOCUSING ON THE POTENTIAL CUSTOMERS IN THE TARGET MARKET MIGHT HELP 1901 HOT DOGS BECOME THE MARKET LEADER OF THE VIETNAM FAST FOOD MARKET IN THE FUTURE...............................................................................46 BC CHN VO MT TH TRNG MI, 1901 CH NNG C LI TH HNV C HI NH L MT THCH THC TH TRNG. BO CO NY C TIN HNH H TR CHO 1.901 CON CH NNG TRONG VIC THAM GIA VO TH TRNG VIT NAM I VI THC HNH PHNG PHP TIP TH . C NHIU C IM, CC YU T, LI CH V CHI PH CA KHI NIM TIP TH CNPHI C QUAN TM BI 1901 CH HOT TRONG TIP CN TH TRNG VIT NAM. TP TRUNG VO CC KHCH HNG TIM NNG TRONG TH TRNG MC TIU C TH GIP 1901 CH HOT TR THNH NH LNH O TH TRNG CA TH TRNG THC N NHANH VIT NAM TRONG TNG LAI . TIP TH L MT KHU VC CC K QUAN TRNG CA CNG TY. I VI 1901CH HOT, MT PHNG PHP TIP TH TI VIT NAM C CHI PH V LI CH. KHNG CH CH V M V CC YU T MI TRNG VI M, CC NH TIP TH PHI PHN TCH CC TIU CH PHN KHC A CP. S HIU BIT R RNG V QU TRNH MUA CNG RT HU CH CHO 1901 HOT DOGS TR THNH THNH CNG HN. M RNG TH TRNG TI VIT NAM L MT QUYT NH QUAN TRNG V SNG SUT NM 1901 CH NNG BI V VIT NAM L MT TH TRNG RTTIM NNG. NU THNH CNG TI TH TRNG VIT NAM NM 1901 HOTDOGS C TH CN PHI XEM XT V A M RNG SANG CC NC NGNAM ....................47 REFERENCES....................................................................................................................................................48

MARKETING REPORT

A. INTRODUCTION:1901 Hot Dogs8

1901 Hotdog was found in July 1997 by two young Malaysian entrepreneurs, Tengku Rozidar Abidin and her husband. 1901 offers customers various kinds of American hot dogs like Texas Ted, Cheezy Carbonara, Chicago Beef and the best seller New York chicken, etc. The year 1997 experienced a serious financial crisis in Asia, nevertheless, 9

Rozidar still invested most of her personal savings on her business and seeked ways to improve 1901 (Malaysian Institute of Management, 2006). Thanks to her endeavors and dedication, 1901 has grown dramatically with over 70 outlets in Singapore and Malaysian by 2007 (1901 Website, accessed 2011). The company now is the leading hot dog fast food franchise brand in Malaysia based on the influence of the western media that has sparked the success of the fast food restaurant business in the country. The secret of 1901's success lies on the flexible franchising system as well as a well-executed branding strategy of the company (Zain, 2008). Accordingly, this report attempts to examine the marketing concepts, various environmental factors, segmentation, targeting and positioning of the fast food restaurants in order to have a deeper understanding about the marketing aspect of 1901. This report recommends an overall best practice of marketing approach for 1901 Hot Dogs Vietnam, including 2 parts following: - Part 1: The basic concept of marketing. This part will mention about various definitions of marketing; characteristic of a market orientated organization; the elements of marketing concept; the cost and benefit of marketing approach for 1901 Hot Dogs. - Part 2: Segmentation, targeting and buyer behavior. This part provides details information for 1901 Hot Dogs in respect to micro and macro environmental factors; segmentation; targeting and buyer behavior.

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B. FINDINGS:

I. Part 1 The basic concept of marketingWe are living in a dynamic world. Everything changes day by day, and marketing is not an exception. Taking a look into the early days of marketing (preceding the 1950s), it is just about how to sell more and more products without understanding what customers wanted. During those early days of many countries (Vietnam is an example), businesses attacked the nations scarcity problem by embracing a production philosophy or we can say sell-as-much-as-we-can philosophy. However, since the 1950s, people discover a new marketing which targeting to understand what customers need and want. All concepts, theories, perspectives of the traditional marketing have changed completely. All above information has led to a BIG question: What is marketing?

I(a)/ Compare alternative definitions of marketing and explained the importance of being a contemporary marketer.There are many definitions of marketing in the world and each of them has its own point of view. Marketing: Exchange relationship The simplest definition of marketing is: Marketing is the management of exchange relationship (Edexcel, 2004, p.7). This definition presents clearly that everything including goods, service or even information could be elements of marketing exchange. Accordingly, the relationships between stakeholders (both internal and external) of organization are managed especially when it relates to buyers/customers. Managing well the exchange relationships will enhance the reputation for organization towards both customers and the public. Philip Kotler

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Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others. Philip Kotler (born 27 May 1931 in Chicago) was known as the father of modern marketing. According to his definition, further than exchange relationships, it shows clearly that the key factor to success in marketing is satisfying customers need and want. The Chartered Institute of Marketing ( CIM )

Identifying Marketing Anticipating Satisfying

Customer needsMutually beneficial exchange

Business objectives

Figure 1.1 Arriving at a definition of marketing (Edexcel 2004, p.7) The management process responsible for identifying, anticipating and satisfying customer requirements efficiently and profitably. Looking more detail in this definition, identifying equal find out the customers requirements. Obviously, the customers requirements change all the time, today customers want and need different things with tomorrow customers. Sometimes, far too much than identifying, we have to predict what will be customers need and want in the future also - that is anticipating. Otherwise, we have to satisfy customer requirements efficiently and profitably. It claims that we have to concern the main goal of our business which called profit. It can not be denied that the customer want the five rights of distribution, that is: right time, right place, right product, right price and right quantity. Therefore, successful marketing will improve the revenue of the organization and get the customers satisfaction as well.

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American Marketing Association (AMA) Definition (1985) Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individually and organization goals. At this time, AMA defines marketing differently with CIM. Not only satisfying customers but also satisfying the company. The connection between the customers and the organization are the activities in providing the goods, service and information such as pricing and promotion. This is the origin of marketing mix. Basically, it is doing market research, then use the information which are collected from the research to make plan, strategy. Then producing and providing the goods or services that satisfy both organization and customers. * The latest definition about marketing of AMA is: Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. (Approved October 2007) This definition covered many previous definitions. Besides, the 2007 AMAs definition of marketing also considers the whole society (society at large). To sum up, my findings above have led me to my own core definition of marketing: Marketing is a process of finding, shaping, creating and preserving the relationship which can satisfy all stakeholders Back to the question: Who will be the successful marketers in the future, traditional marketers or contemporary marketers? As we have known, it hardly can be denied that the world is changing day by day, and nothing last forever. Accordingly, becoming a contemporary marketer is indispensable. The modern customers want and need the modern things, so the contemporary marketers have to improve and innovate to meet the customers new requirements. For 1901 Hot Dogs, understanding the trend of tasting fast food at the moment and culture of Vietnamese is very important to plan the appropriate strategy. Currently, Vietnam already has various famous fast foods brand such as KFC, BBQ, Lotteria and so

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on. These fast food restaurants have their own positions in the minds of Vietnamese customers and acquire many loyal customers. Therefore, 1901 Hot Dogs marketer have to keep in minds that it is very important for them to be a contemporary marketer in Vietnam because their competitors are relatively strong and they have the excellent existing branches, financial strength and also many brilliant marketing teams. It is suggested that 1901 Hotdogs should make a specific marketing strategy for Vietnamese market, innovate their products and build good relationships with not only the customers but also other organizations to be recognized, competitive and profitable. Vietnam will become a very potential market of 1901 Hotdog for some of the following reasons. First, some famous fast food restaurants such as KFC, BBQ, Lotteria specialize in chicken-related dishes. They also offer hamburgers, sandwiches or rice set but rarely serve hotdogs as their main menu. Therefore, it is obvious that young Vietnamese customers who are very open-minded and easy to absorb new things will be eager to try the new menu from 1901 fast food restaurants. Secondly, Vietnamese customers are interested in American styles, 1901 offers customers various and delicious kinds of hotdogs in American styles; thus, it is quite easy to attract them to go to the fast food restaurants. Thirdly, due to many advantageous policies from Vietnamese Government for encourage international and foreign companies to set up business in Vietnam, 1901 will get benefits from less tax, easy administrative procedures to open new businesses.

I(b)/ Identify the main characteristics of a market-orientated organization for todays modern business.A product-orientated organization has its primary focus on its product and on the skills, knowledge and systems that support that product. On the other hand, a marketorientated organization is one that organizes its activities, products and services base on satisfying its customers through meeting their need and want. So, what are main characteristic of a market-orientated organization for todays modern business? Havaldar (2010) stated that: Market-oriented organization stay close to the customers and ahead of the competitors. They understand the basic principle that the purpose of business is to attract and satisfy customers at a profit

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Kohli and Jaworski (1990) suggest that market orientations are specific activities that translate the marketing concept philosophy into practice. Concerning about the main characteristics of a market-orientated organization, business should focus on the main following things: customer orientation; responsiveness and competitor focus. Generally, market orientation is regarded as the implementation of the marketing concept. The marketing concept is a philosophy of doing business, which puts the customers needs at the centre of the organization. A market-orientated organization will have a commitment to meeting the needs of customers. It means that business decision making will be based on customer needs, wants and demands. Nevertheless, there are various types of customers needs and wants. Each customer has their own demand. It makes no sense getting close to a customer because it does not help for other customers with different needs. Shortly, companies can be market oriented only if it completely understands its markets and the people who decide whether to buy its products or services. For 1901 Hot Dogs in entering into Vietnam, despite the fact that Vietnam and Malaysia have the same Eastern customs, each country has own national character. Therefore, it is essential to understand comprehensively and completely about Vietnamese different cultures as well as Vietnamese buying habit and Vietnamese tasting also. It is evidence that being market oriented means to see things through the customers eyes. This does not necessarily mean to make an incredible product but rather solve the problems that the customer is facing. If a company can study its customers needs and purchase behaviors, then a good marketing strategy can be implemented to meet the customers needs. A successful market oriented company will have a good understanding of its customers needs and how they will go about meeting those needs. A market-orientated organization will also set up the right structures and process to achieve the aim of satisfying the needs and wants of customers. All activities must be coordinated effectively towards the common goal of satisfying customers. There is no doubt that the interaction with other functional department of marketing department is very important. The responsiveness also performs by disseminating of information pertaining to customer across the functional departments with the view to meet customer needs quickly by having effective inter-functional coordination of the concern departments.

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Kohli and Jaworski (1990) described market orientation as the ability of an organization to generate, disseminate and use superior information about customers and competitors. Customers nowadays become more and more knowledgeable so they require better quality. To compete successfully, businesses need to be more sensitive and sympathetic to their customers. Measuring customer satisfaction in connection with customer loyalty the willingness to pay from the same company is an important tool to improve the competitiveness of company. Retaining customers have a significant positive impact on profitability of company. This reflects the needs of retaining customer and develops long-term relationship.

I(c)/ Identify the elements of marketing concept and explain its important to 1901 Hot Dogs.According to Levitt (2006) the main difference between selling and marketing is that marketing focuses on the needs of the buyer meanwhile selling mainly concern about the needs of the seller. Satisfying the needs of customers by creating, delivering and persuading them to buy company's products is the main aim of marketing. In contrast, selling goes along with the seller's need to convert his product into cash.

Marketing concept vs. selling concept (Jain, Khanna, Grover and Singla, 2007).

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Marketing concept consists of many elements such as needs, wants and demands; products and services; value satisfaction and quality; exchange, transaction and relationship; market (Kotler, 2006). Needs, wants and demands Perceiving deprivation is the root of human needs. Human need is the most basic concept underlying marketing. Understanding the human needs is a basic requirement of successful marketing. There are various human needs such as: - Physical needs: food, water, clothing - Individual needs: knowledge, self-expression - Social needs: belonging, relaxation, affection Needs become wants when people know exactly the objects which might satisfy their needs. Wants are shaped by culture and individual personality. In another word, wants are how people communicate their needs. For example, the elderly need a phone but they want a cell-phone which has a big keypad and loud volume. Demands are wants for specific products and willing to pay based on affordability. Understand the various marketing concepts, 1901 will know for what reasons Vietnamese customers come to their restaurants. Apart from the physical needs like food, they really want a place where they can go with their friends not only to eat out and relax but also to express themselves as fashionable and energetic. Based on that, 1901 marketers can design the dishes and pay their concentration on designing of the infrastructure to satisfy their customers demands. Products and services Normally, a product is thing which can be offered to satisfy a need or want. Today, the living standard of Vietnamese people is improving substantially. Thus, in order to successfully enter Vietnamese market, 1901 ought to research about taste, requirements and demands of Vietnamese people in terms of fast food and then produce the appropriate products to satisfy those requirements. For instance, some of the set menus of 1901 such as Topping bar set, hot deal meal are very suitable for Vietnamese young peoples style because they are very yummy and nutritious. It is suggested that 1901 Hot Dogs not only 17

can develop the existing menus but also adapt the taste to meet the Vietnamese customers demands. Apart from product, service is also a very important part to attract Vietnamese customers. Customers normally concern about the level of cleanliness, the attitude of staff, and the infrastructure of the restaurant. 1901 Hot Dogs need to pay concentrate on their service aspect to not only attract customers but also encourage them to become loyal. The benefits of acquiring loyal customers cannot be denied. Value satisfaction and quality The question is that how do customers make their choice in many products and what they should buy while there are various products out there? Customers satisfactions depend on a product's perceived performance in delivering value relative to a buyer's expectation. If the customers of 1901 Hotdogs are not satisfied with the products or service, they certainly will look for other dishes which can satisfy them. Customers satisfaction is also linked closely to quality. Quality has a direct impact on product performance, and hence on customer satisfaction. Satisfied customers of 1901 Hotdogs will become loyal customers; they will not only repeat buying but also use words of mouth to tell other Vietnamese customers about the brand new fast food restaurants in Vietnam. 1901 Hotdogs may probably obtain new customers from that. Exchange, transaction and relationship Exchange marketing occurs when people decide to satisfy needs and wants through exchange. As being mentioned, exchange the core of marketing involves obtaining a desired product from someone by offering something in return. For an exchange to take place, several conditions must be satisfied. Of course, at least two parties must participate and each must have something of value to offer the other. Each party must also want to deal with the other party and each must be free to accept or reject the other's offer. Finally, each party must be able to communicate and deliver. A transaction is marketing's unit of measurement. This is a classic monetary transaction, but not all transactions involve money. In a barter transaction, you might trade your old refrigerator in return for a neighbors second-hand television set. Transaction marketing is part of the larger idea of relationship marketing. If 1901 Hotdogs marketer want to become smart marketers, they

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need to work at building long-term relationships with valued customers, distributors, dealers and suppliers. Increasingly, marketing is shifting from trying to maximize the profit on each individual transaction to maximizing mutually beneficial relationships with consumers and other parties. For example, 1901 may cooperate with a toy company to include toys in their menu set for children. Children are very easy to be attracted by a special delicious set designed only for them and included interesting toys in the meal set. Hence, both 1901 Hotdogs and the toy company have benefits and profits altogether. Market The concept of transaction has led to the concept of a market. Market existed as soon as goods started to be exchanged. Originally, the term market stood for the place where buyers and sellers gathered to exchange their goods. Marketers, however, see the sellers as constituting an industry and the buyers as constituting a market. As stated above, Vietnam currently is a relatively potential market for 1901 to enter and set up business, thus 1901 Hotdogs need to use their opportunities to maximize their profits.

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I(d)/ Identify and assess the benefits and costs of a marketing approach for 1901 Hot Dogs in Vietnam.Certainly, Vietnam is a potential market for 1901 Hot Dogs. Understanding the costs and benefits are very essential for the managements of 1901 Hot Dogs. The vision in the future will helpful to make an appropriate strategic planning of marketing. The costs of marketing approach for 1901 Hot Dogs are mainly from doing research in Vietnam to understand deeply macro/micro environment; identify customers need; customer behavior and expectation. The first benefit of 1901 Hotdogs when the company implements a marketing approach is that they successfully enter Vietnamese market. Identifying the customers need, 1901 Hot Dogs needs a market research department. The good result of the research will enable 1901 Hot Dogs to find a product that tailor to the need of customer. On the other hand, the market-led company can keep ahead of the competition. This is the first time 1901 Hot Dogs entering the Vietnamese market, they need to spend time to conduct a qualitative market research to determine who are their customers and understand the way to satisfy them. However, the marketer at 1901

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Hotdogs needs to achieve their organizational objectives which are maximizing profits, mission, vision and value along with opening new business in Vietnam. Besides various benefits of a marketing approach, there are many costs for a market research. First of all, carrying out a market research will cost the organization a huge amount of money and human resources even though the salaries for workers in Vietnam are relatively low. If 1901 Hot Dogs can not anticipate the customer needs and supply the product that doesnt satisfy those needs, it will be a serious problem. It leads to time consuming and money to pay for the employees. Conversely, even the market research has a good result, it will take time to introduce and distribute them to the market. It costs much time and money, especially in advertising campaigns for approaching new market through television, internet, poster, magazine, newspaper and so on. Besides, building rental or employees also need to be concerned. Some of preferential policies such as free packaging, discount policy may reduce profit of company in short term, but it brings highly efficient in long term. Because it not only builds a good relationship with customers but also increase the competitive advantages with the existing competitors in Vietnamese market. Apart from costs, marketers of 1901 Hotdogs should manage all the risks related to opening a new business in Vietnam such as they fail to design an appropriate marketing approach which costs a relatively big amount of money for the company or they are unable to make profits in Vietnamese market or profit margin is low due to high inflation in Vietnam. Therefore, marketer of 1901 needs to bear in mind the importance of strategic market intelligence, planning, implementation and control of business and marketing strategies to achieve their objectives which are capturing marketing shares and maximizing profitability. Vietnam population has approximately 86 million; economic growth rate has rapid increase leads to the higher standard of living. This makes a great number of customers for 1901 Hot Dogs in expanding in Vietnam. Customer focus, customer delight and customer loyalty are clearly benefits in the successful approach of marketing for 1901 Hot Dogs. Customer focus seems like Customer guiding that is to point for company make great efforts to know what clear customers needs are. Without customer, there is no business. Meeting the needs of the customers more effectively than competitors is the key to continued profitable existence for any business. Customer delight or customer 21

satisfaction is the route for 1901 Hot Dogs long-term sustainable competitive advantages, because the delight of the customer measures and determines that a product or service exceeds a customers expectation, considering requirements of both quality and service. Good marketing approach helps reduce the dissatisfaction of customers. Finally, no research can alter the fickle nature of the average customers, todays products can become tomorrows throwaways. Having a strategic planning is the next step. This step will enable managers to think through the possible range of future changes, and hence, be better prepared to meet the changes that actually occur. It also costs the organization money, time and human resources. After that, 1901 Hot Dogs needs to have a marketing mix, the 4Ps 1 to introduce the product to the market. They are product, price, place and promotion which will lead to financial cost, trained staff and effort. Using a marketing approach, the organization should not only satisfy the customer needs efficiently, but also maintain this satisfaction by means of offering organization-wide commitment in services and after-sales support. Even though it takes time and money, the organization can build long term relationships and create customer value which will form a positive image of them in the customer minds. After that, they can have a huge benefit from the customers. For instant, customers will come back to buy the product more than one time or buy another product of the organization or introduce to their friends. Most of the organizations direct to the loyalty of customers. Some of the evidence shows that a 5 % increase in customer retention can increase total company operating profits by 50 %. On the other hand, the business will be a success if the organization can have a long term relationships with high customer satisfaction. In conclusion, marketing approach may have some costs. However, for great benefits above, it ensures the success of 1901 Hot Dogs in Vietnamese market. The detail of 1901 Hot Dogs marketing planning will be presented in the next part.

II. Part 2

1

4Ps in marketing mix: price, product, place and promotion.

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Segmentation, Targeting and buyer behaviorII(a)/ Identify and explain macro and micro environmental factors which influence marketing decisions affecting 1901 Hot Dogs in Vietnam. A. The micro environmentThe micro environment includes factors which are directly relevant and influence the development of marketing strategy are consumer trend, company, suppliers and competitors. 1/ Consumer trend First, consumer trend is about convenience, variety and comfort; consumer pay for nice environment and air-conditioning as well the feel good factor. The trend of tasting foreign fast food has become more and more popular because of three factors. Firstly, the higher level income of Vietnamese people results in the trend of using foreign fast food. Since taking part in WTO, Vietnam economy has growth up rapidly. It means more Vietnamese people can afford 1901 Hot Dogs products and services. Second, the economy growth has led to the lack of cooking time. People who work in the office put their choice on fast food because of its convenience. The last factor is that people want to show off their wealth and status. Take some examples such as KFC, BBQ or Lotteria, all of these fast food brands serve their product in nice view restaurants. People not only need food for their stomach but also need food for their eyes. 1901 Hot Dogs need to understand this to compete with the existing competitors. Besides, concerning about frequent shopper card and VIP card is very important. Pepperonis pizza2 restaurants provide a card for the customers who consume their product frequently. After consuming 12 times (with the cost of each time is greater than 80.000vnd), consumers are provide a full 12-ticked card and this card equal a meal which pricing 120.000vnd.2

Pepperonis pizza: establish in 1996, already has 7 branches in Hanoi, serving pizza and pasta.

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2/ Suppliers Supplying aspect concerns with sourcing local suppliers to manage costs efficiently. In the long term, suppliers force a strong impact to 1901 Hot Dogs in building infrastructure and manufacturing industry. All businesses require input such as raw material, labor force and so on. The costs of input affect directly on the profit of company. Overall, the salaries for Vietnamese workers are relative low (about 1.6 million VND), the total labor force reach 47.743 millions (General Statistics Office, 2009). It is suggested that Vietnam has abundant labor resources. In addition, the raw material is always available and fairly cheap. As a result, 1901 Hot Dogs will have favorable conditions in entering Vietnamese market. 3/ Company First, it is suggested that 1901 should establish a new team and training will be made to maximize efficiency, quality and satisfaction of customer perception and expectations. To summarize the environmental audit and present the current status of a business, people use SWOT analysis. SWOT stand for: Strengths, Weaknesses, Opportunities and Threats. All of these were emerged from the process of examining the micro and macro environment:

Internal Environment scan External

Strengths Weaknesses

Opportunities

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Threats

SWOT analysis STRENGTHS Friendly, cheerful staff Competitive prices Relaxed atmosphere Beautiful decoration Good services Various kinds of dishes and drinks OPPORTUNITIES Widen age of customers Increase customers satisfaction THREATS Increase competition by local WEAKNESSES Not famous branding

restaurants and cafes Lack of customers brand awareness Lose customers for competitors

4/ Competitors

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As being mentioned, there is a variety of systematic fast food chains such as KFC, Lotteria, BBQ, 99 poultry etc. The fast food market in Vietnam has been very competitive and become saturated because it is estimated that there are approximately 80 KFC restaurants, 40 Lotteria restaurants and 15 BBQ restaurants in Vietnam currently. In terms of marketing activities, 1901 Hot Dogs competitors have done a lot of advertising, sales promotion and value-added services for their restaurants as well as price competition. Managers of 1901 Hot Dogs should find out more about the competitors strategies, their strengths and weaknesses, their market share and so on. Succeed to do that, the restaurant will find the way to attract customers to switch their tastes from competitors dishes to 1901 Hot Dogs dishes and get high profit.

B. The macro environmentThe PEST analysis will be discussed which include the Political, Economic, Social and Technology. 1/ Political First of all, Vietnam has a very stable politics. It is the key factor which helps Vietnam to enjoy peace and prosperity in the economy for many years. Obviously, political stability gives the most favorable condition for 1901 Hot Dogs in entering and expanding in Vietnam. However, everything has its two sides. It is not only a chance but also a challenge for the companies which tend to enter the Vietnam market because of the business law. Vietnam government promulgates this Law to protect the individual citizens from unfair trade, work abuse and protect the environment also. The politics requires organizations to have waste treatment system to protect the environment. In addition, as stated above, Vietnamese government encourages foreign investment and international organizations to enter Vietnam by reducing tax, lessen complicated procedures and assist them in acquiring land and infrastructure system. 1901 Hot Dogs might get benefits from the tax exemption in 1 or 2 years. 1901 may probably not make profits these years but they can build and expand their infrastructure, distribution channels and their brand.

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2/ Economic a/ Overview of Vietnam economic after i mi In the 4th Congress of Vietnam Communist Party (1986), the i mi policy was proposed with the aim of improving living standards and encouraging foreign investment. i mi has made the Vietnam economic become more open and integration with the world economy. During the early 1990s, enhanced institutional support and steadily improving infrastructure made Vietnams growth rate one of the highest in the region. Vietnam is among the fastest-growing economies in Asia, with a consistently high GDP growth rate of around 8% in recent years. This growth brought impressive gains in incomes and in the lifes quality of the Vietnamese people. The middle income group is expanding increasingly currently. In addition to this, Vietnamese disposable income of Vietnamese people is improving. Thanks to those improvements, Vietnamese people have more budgets to satisfy some of their habits such as to eat out at restaurants and 1901 Hotdogs can acquire new customers from the middle income group b/ Status of Vietnam economic in 2010 In 2011, the Vietnam economic substantial recovers. GDP increased by 5.89% compared to 6.87% in 2009. 2010 Total Agriculture, fishery Industry and construction Services 7.7% 7.34% 5.53% 7.34% forestry 6.78% and 2.78% 2011 5.89% 4%

Growth rate of gross domestic product price comparison In addition, CPI growth rate in 2011 is 18.13%. Vietnam is potential market for foreign investors. Economic growth, easing inflation and increasing average income are good signal for 1901 Hot Dogs. It is indicated that the standard of living in Vietnam is

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improved considerately. People respect to the spiritual value and the products of 1901 Hot Dogs can satisfy this. 3/ Social-culture The Vietnamese people believed that the more you pay, the better you get. According to Grey Eye on Asians report, 77% Vietnamese consumers prefer foreign brands compared with 30% of Asia. Vietnamese consumers highly appreciate the international brands, so it is an advantage for foreign company offered products in American styles like 1901 Hot Dogs. Despite the government promotion of domestic products in recent years, Vietnamese preference for foreign products is not going to change soon. Moreover, if 1901 Hot Dogs serves a good product and service, the positive image of company will be promoted rapidly by the word of mouth. 4/ Technological Nowadays, the booming of technology especial internet has played an important role in disseminating and advertising. The development of social networks like Facebook, Twitter, my space distributed to promote advertisements. Therefore, 1901 Hot Dogs can use this advantage to apply the e-marketing strategies. Besides that, technology also helps 1901 Hotdogs to prepare hygienic foods and consistency in taste to deliver to their customers. Furthermore, it also assists 1901 staff to keep their infrastructure and facilities clean by using dishes wash machines, kitchen-related machines, ozone cleansing machine, etc.

II(b)/ Propose segmentation criteria to be used for 1901 Hot Dogs in two different markets in Vietnam.It is believed that an organization cannot satisfy all the customers need and want. It wastes a lot of time and money to satisfy all customers and it is unnecessary. According to my understand, segmentation, simply a process of dividing a market into sections, which have common characteristic, behavior and so on. There are two factors need to be

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considered when selecting a target market segment are the captivation of the segment and its appropriate for the companies goals, objectives, resources and capabilities. There are many ways to segment the market. In this case, I only focus on 2 main base segmentations of Vietnamese market: geographic and demographic. 1/ Demographic Some demographic segmentation variables include:

Age Gender Family size Family lifecycle Income Occupation Education Ethnicity Religion Social class Among these above factors, age and income are considered to be the two most

important factors. Firstly, the consumers age can be divided into 3 areas: children, teenager and adult. For the children, 1901 Hot Dogs can set a children menu for them which is small and suitable portion for a child, attractive and various meals. Besides, applying some event such as offering them a gift after consuming 2 or 3 times the children set. For the teenagers, they prefer a big and enough nutrition set meal. However, it is hoped that 1901 Hot Dogs can serve them a big meal with an appropriate price, because their main income comes from their parents. 1901 Hot Dogs should focus strongly on this area because they are the biggest area compared to 2 others areas. As we have known, teenage is the period of time we need to consume enough nutrition (2500 calories/day for girl and 2900 calories/day for boy). Obviously, they put their choice on fast food not only because of its delicious but also because they find it very interesting and proud when their friends see them eating in a nice view fast food restaurant. Therefore, satisfying teenagers is very important for 1901 Hot Dogs. The last area is the adult people which are already have income and lack of time for cooking. 1901 Hot Dogs need to consider about the quality, not about the quantity in this area. The women maintain their physical appearance very

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carefully. Thus, the sets meal for the adult people should provide not only protein, starch but also adequate vitamin. Income is considered as an important factor also. It can be seen clearly that the urban residents have the highest income compared to other areas. However, to consume fast food frequently require the average income more than 500 USD. So the people who have the average income more than 500 USD will be the target of 1901 Hot Dogs. Because a regular deal is priced at 6.5RM (about 45.000vnd) and a regular orange juice/ lemon tea is priced at 2.20RM (about 15.000vnd). Thus, going to 1901 Hot Dogs for a meal may cost Vietnamese people about 60.000vnd, required medium level and high level income. Paying that level for a meal, the customers demand 1901 Hot Dogs serve them a good service such as fast delivery service, cleanliness and good serving attitude. 2/ Geographic The following are some examples of geographic variables often used in segmentation:

Region: by continent, country, state, or even neighborhood Size of metropolitan area: segmented according to size of population Population density: often classified as urban, suburban, or rural Climate: according to weather patterns common to certain geographic regions Vietnam has a rapid population growth; the average growth rate of Vietnam's

population is 2.23 %. The population of Vietnam is large enough to make it second most populous country in the South-East Asia, seventh in the Asia-Pacific region and the 12th most populous in the world-list. It is suggested that Vietnam is a big and potential market for 1901 Hot Dogs. As being mentioned in the previous part, income is one of the most important factor, so the two biggest cities: Hanoi and Ho Chi Minh (representing for North and South) should be concerned to be the two main markets. The reason for dividing into 2 markets (North and South) is that the cuisine culture of each region has its own features. The Northern cuisine is not strong spicy, fatty and sweet as other regions. They mainly use diluted fish sauce, more vegetables and other fresh seafood readily available such as shrimp, crab, fish, clams, mussels, etc.

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Generally, because of the ancient tradition with poor agriculture, Northern food in the past did not prevalent the main dish with raw material are meat and fish. Many people highly appreciated Hanoi culinary, they indicated that Hanoi culinary represents for the essence of the typical North cuisine. However, the Southern cuisine which was influence strongly of Chinese, Cambodia and Thailand food, have the main characteristic is that often use sugar and coconut essence. Southern cuisine also used more seafood (in salt groundwater and brackish groundwater) than the Northern. Understanding those cultures, 1901 Hot Dogs needs to pay attention to process the appropriate meal for each region. For example, 1901 Hot Dogs should serve more sweet spicy and chilly sauce for the existing meals in the Southern. On the other hand, 1901 Hot Dogs might have to create and serve some dishes which are less sweet and bitter for the Northern.

II(c)/ Outline the factors which influence the choice of targeting strategy for 1901 Hot Dog in VietnamOnce a firm has successfully identified the segments within a market, the next step is to target these segments with products that closely match the needs of the customers within that segment. The selection of potential customers to whom a business wishes to sell products or services. The targeting strategy involves segmenting the market, choosing which segments of the market are appropriate, and determining the products that will be offered in each segment. A business offering multiple products can determine if the various segments should receive one generic product (such as in mass marketing), or if each segment should receive a customized product (multi-segment), based upon the market's diversity, maturity, the level of competition and the volume of sales expected also called targeting. There are a number of targeting strategies, including: Niche/concentration marketing Mass/undifferentiated marketing Differentiated/selective marketing

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In this case, mass/undifferentiated marketing is my best choice for 1901 Hot Dogs in entering the Vietnam market. Mass marketing is a market coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer. It is type of marketing (or attempting to sell through persuasion) of a product to a wide audience. The idea is to broadcast a message that will reach the largest number of people possible. Traditionally mass marketing has focused on radio, television and newspapers as the medium used to reach this broad audience. The reason for choosing this targeting strategy is that mass marketing is most suitable for products which are affordable and variety in nature. The disadvantage of niche marketing in this case is that the potential for sales growth and economies of scale may be limited, and the survival of the firm may be seriously affected if sales begin to decline. The differentiated/ selective marketing will not be chosen because the main disadvantages of this approach include confusion amongst customers when faced with dozens of brands and lost economies of scale from shorter production runs and the additional costs of having to advertise several rather than one brand. Customers need variety yet affordable. If the product is too expensive, they are still unable to buy until later stage. With mass marketing, 1901 Hot Dogs can produce on a large scale, expanding a huge number of branches, making profit from the lower and affordable price. As selecting the demographic and geographic segmentation, market variability is also a factor that can not be ignored. The Vietnamese consumers demand differently tastes, preferences and reactions to stimulus and other marketing mixes. Accordingly, 1901 Hot Dogs need to create constantly more and more types of dishes, set meal and dessert also to satisfy their customers. Finally, competitors marketing strategies is an important external factor should be concerned also. There are many existing famous brands in Vietnam such KFC, BBQ, Lotteria, etc. For a new comer like 1901 Hot Dogs, they are a market challenger, brandoriented PR will be used to disseminate and advertising. 1901 Hot Dogs needs to have a professional campaign to communicate with the customers and gain customers awareness, support and loyalty.

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Mt khi mt cng ty thnh cng trong vic xc nh cc phn on trong mt th trng, bc tip theo l nhm mc tiu cc phn on vi cc sn phm ph hp nht vi nhu cu ca khch hng trong phn khc . Vic la chn ca khch hng tim nng m doanh nghip mun bn sn phm hay dch v. Chin lc nhm mc tiu lin quan n vic phn chia th trng, la chn cc phn on ca th trng l thch hp, v xc nh cc sn phm s c cung cp trong mi phn khc. Mt doanh nghip cung cp nhiu sn phm c th xc nh nu cc phn on khc nhau nn nhn c 1 sn phm chung chung (nh trong tip th i chng), hoc nu mi phn khc s nhn c 1 sn phm ty bin (a-phn on), da trn s a dng ca th trng, trng thnh, mc cnh tranh v khi lng bn hng d kin cng c gi l nhm mc tiu. C mt s mc tiu chin lc, Niche Thnh Tip L th / / tip phn bao tp th bit trung khng / tip phn chn gm: th bit lc

Trong trng hp ny, khi lng / tip th khng phn bit l s la chn tt nht ca ti cho 1.901 con ch nng vo th trng Vit Nam. Thnh L tip th l mt phm vi bo him th trng chin lc, trong cng ty quyt nh b qua s khc bit phn khc th trng v i sau khi ton b th trng vi mt li ngh. y l loi hnh tip th (hoc c gng bn thng qua thuyt phc) ca mt sn phm cho mt i tng rng. tng l pht sng mt thng ip rng s t s lng ngi ln nht c th. Theo truyn

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thng hng lot tip th tp trung trn truyn hnh, i pht thanh v bo ch nh l phng tin c s dng tip cn i tng rng. L do cho vic la chn chin lc ny nhm mc tiu l tip th i chng l thch hp nht cho cc sn phm c gi c phi chng v a dng trong thin nhin. Nhng bt li ca tip th thch hp trong trng hp ny l tim nng cho doanh s bn hng tng trng v nn kinh t ca quy m c th b gii hn, v s sng cn ca cng ty c th nh hng nghim trng nu doanh s bn hng bt u gim. Tip th khc bit / chn lc s khng c la chn bi v nhng nhc im chnh ca phng php ny bao gm s nhm ln gia cc khch hng khi phi i mt vi hng chc nhn hiu v nn kinh t b mt ca quy m t chy sn xut ngn hn v chi ph b sung phi qung co nhiu hn l mt thng hiu. Khch hng cn nhiu nhng gi c phi chng.Nu sn phm l qu t, h vn khng th mua cho n khi giai on sau. Vi tip th i chng nm 1901 Hot Dogs c th sn xut trn quy m ln, m rng mt s lng ln ca chi nhnh, lm cho li nhun t mc gi thp hn v gi c phi chng. Khi la chn cc phn on nhn khu hc v a l, th trng bin ng cng l mt yu t khng th b qua. Ngi tiu dng Vit Nam yu cu khc nhau th hiu, s thch v phn ng vi kch thch v hn hp tip th khc. Theo nm 1901 Ch Hot cn to ra cc loi lin tc hn v nhiu hn na cc mn n, thit lp ba n v mn trng ming cng p ng khch hng ca h. Cui cng, chin lc tip th ca i th cnh tranh l mt

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yu t quan trng bn ngoi cng cn c quan tm. C rt nhiu thng hiu ni ting hin c ti Vit Nam nh KFC, BBQ, Lotteria, ... i vi mt lnh mi nh 1901 Hot Dogs, h l mt thch thc th trng, theo nh hng thng hiu PR s c s dng ph bin v qung co. 1901 Ch Hot cn c mt chin dch chuyn nghip giao tip vi khch hng v c khch hng nng cao nhn thc, h tr v lng trung thnh.

II(d)/ Explain how buyer behavior affects marketing activities in two different buying situations for 1901 Hot Dog in Vietnam

In addition to understanding the needs of the customers, 1901 Hot Dogs also need to understand what motivates them to purchase, and how can influence the buying process to ensure that 1901 Hot Dogs products or services are their main fast food restaurant. Understanding customers will help company to develop and distribute product, as well as getting the right price point and developing successful promotional activities. The knowledge of buying process can help company become more successful. A. B2C Business to Consumers 1/ Types of Buying Behavior There are four types of Buying Behavior as the following picture:

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4 types of buying behavior Variety-seeking buying behavior is characterized by low consumer involvement but significant differences in brands. Customers try to use different brands of such products because they want to check variety of products. This is the reason that most of the consumers do a lot of brand switching in case of variety-seeking buying behavior. It can be said that the target customers of 1901 Hotdogs are actually consumers. Understanding such circumstances, 1901 Hot Dogs should apply different strategies to attract the customers such as offering products at low prices, providing free sample and special discounts. 1901 Hotdogs will have many kinds of customers ranging from children, teenage, young adults, parents, elderly, officer, working people and so on. So, it can be thought of two different buying situations for 1901 to understand their customers behaviors and design appropriate marketing strategy and promotions to attract them. They are the segment for working people and the segment for children.

2/ Consumer Buying Process Consumer buying process has five:

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Consumer buying process a. Need recognition and problem awareness Need and want can be arisen by internal factors such as customers want to eat to survive; external factors like suggestion by word of mouth by other customers. 1901 Hot Dogs need to research their consumers to find out what kinds of need or problem arise, what brought them about and how they led the consumer to this particular product and then develop marketing programs that involve these reasons. This is often initiated by PR coverage, including word of mouth. The customer may have seen a friend or celebrity using a product or service, or awareness may attracted by advertising. In terms of segment for working people, there are not many restaurants offer simultaneously hygienic foods at cheap prices for working people. They either serve foods not following hygienic foods standards at cheap prices or hygienic foods at relatively expensive prices. Therefore, if 1901 Hotdogs can offer set menu for working people at affordable prices, the sales may probably increase dramatically. Besides that, with respect to children segment, children often desire toys included in their dishes, or dishes with nice decoration. Understand that,

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1901 Hotdogs may shake hands with some toys companies and offer children not only delicious dishes but also toys of some cute cartoon characters. Children are also interested in celebrating their birthday parties at fast food restaurants. KFC are currently offering their little customers various services of celebrating a birthday party such as MC, birthday facilities, toys and dishes at a very suitable price. 1901 Hotdogs can learn from this model to compete with their competitor and satisfy their little customers needs.

a.Cn cng

nhn

v nhn

thc vn

Cn v mun c th c pht sinh bi cc yu t ni b chng hn nh khch hng mun n tn ti, yu t bn ngoi nh gi ca "truyn ming" ca cc khch hng khc. 1901 Ch Hot cnnghin cu ngi tiu dng ca h tm ra nhng loi nhu cuhoc cc vn pht sinh, a chng v v lm th no h dnngi tiu dng sn phm ny c th v sau pht trin ccchng trnh tip th c lin quan n nhng l do ny. iu ny thng c khi xng bi PR bo him, bao gm c truyn ming. Cc khch hng c th nhn thy mt ngi bn hocngi ni ting bng cch s dng mt sn phm hay dch nh gi v,hoc nhn phn hng cung nhng thc c khc dnh cpthc ngi lm th thu cho phm hp vic. H ht ngi v hoc bi qung co. Trong iu khon ca lm, khng c nhiu sinh ng thi vi r cho

l phc v thc phm khng tun theo cc tiu chunv sinh thc phm vi gi r hoc v sinh thc phm mc gitng i t. V vy, nu nm 1901 Hotdogs c th cung cp trnhn thit lp cho nhng ngi lm vic vi gi c phi chng,doanh s bn hng c th c th lm tng ng k. Bn cnh ,i vi tr em phn on, tr em thng mong mun chi bao gm trong cc mn n ca h, hoc cc mn ch mn n trang n tr p. Hiu cn l rng, nm mt 1901 Hotdogs c th "bt tay" vi mt s cng ty chi v cung cp cho tr em khng ngon m38

chi ca

s nhn vt hot hnh d thng. Tr em cng quan tm n n mng tic sinh nht ca h ti cc nh hng thc n nhanh. KFC hin ang cung cp cho khch hng ca h t cc dchv khc nhau k nim mt ba tic sinh nht chng hn nh MC, cs sinh nht, chi v cc mn n mt mc gi rt ph hp.1.901 Hotdogs c th hc hi t m hnh ny cnh tranh vi i th cnh tranh ca h v p ng nhu cu ca khch hng nh ca h.b. Information search A customer can obtain information from several sources: Personal sources: family, friends, neighbors, etc Commercial sources: advertising; salespeople; retailers; dealers; packaging; pointof-sale displays Public sources: newspapers, radio, television, consumer organizations; specialist magazines Experiential sources: handling, examining, using the product The challenge for the marketing team is to identify which information sources are most influential in their target markets. The marketers should identify consumers sources and evaluate its importance. Consumers gather most information from commercial sources marketer can be controlled; while consumers consider personal sources is the most effective impact directly in making decision of customers. Advertising and PR are still important but packaging and product displays play a role. Customers find videos and brochures are useful. Word of mouth is still very important. For attracting working people segment, perhaps newspapers, radio, television and word of mouth are the most effective way for them to obtain. 1901 can advertise their products through some famous and familiar newspapers to working people such as The Labours, The New Hanoi, etc or advertise on TV in some pick hours or after Filming program. In terms of children segment, 1901 Hotdogs can distribute nice and interesting leaflets to parents and to children when they come to the restaurants to eat or in front of many primary and secondary schools. They also can choose to advertise on TV between some Cartoon Programs to capture the attention of children and their parents.

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Mt khch hng c th c c thng tin t nhiu ngun khc nhau: cc ngun c nhn: gia nh, bn b, hng xm, vv ngun thng mi: qung co, nhn vin bn hng, cc nh bn l, i l, bao b; mn hnh point-of-bn ngun cng cng: bo ch, i pht thanh, truyn hnh, t chcngi tiu dng; chuyn gia tp ch tri nghim cc ngun: x l, kim tra, s dng sn phm Thch thc i vi i ng tip th l xc nh c ngun thng tinc nh hng nht trong th trng mc tiu ca h. Cc nh tip th cn xc nh cc ngun ca ngi tiu dng v nh gi tm quan trng ca n. Ngi tiu dng thu thp thng tin t cc ngunthng mi - nh tip th c th c kim sot, trong khi ngi tiu dng xem xt cc ngun c nhn l hiu qu nht tc ng trc tip trong vic a ra quyt nh ca khch hng. Qung co v PRvn cn quan trng nhng bao b v sn phm hin th ng mt vaitr. Khch hng tm thy video v ti liu hu ch. Li ni vn cn rtquan trng. thu ht nhng ngi lm vic phn khc, c l bo ch, i pht thanh truyn hnh, v truyn ming l cch hiu qu nht cho h c c. 1901 c th qung co sn phm ca h thng qua mt s t bo ni ting v quen thuc cho nhng ngi lm vic nhHoch, H Ni mi, ... hay qung co trn truyn hnh trong mt sgi chn hoc sau khi quay chng trnh. Trong iu kin ca phn khc tr em nm 1901 Hotdogs c thphn phi cc t ri p v th v cho ph huynh v tr em khi hn cc nh hng n pha trc ca cc trng tiu hc v trung hc. H cng c th chn qung co trn truyn hnh gia mt schng trnh Cartoon nm bt s ch ca tr em v cha mca h.

c. Evaluation of alternatives In this stage, the customers try to choose between products, or firm up on the purchase decision. Different consumers have different outlook about the distinction of product. International brand name, high quality, cleanliness and unique tasting are strengths of 1901 Hot Dogs. But with respect to working class segment, the most important criteria for them to choose 1901 Hotdogs are the affordable price and a suitable amount of foods compared to other fast food restaurants to serve their starvations. Hence, 1901 Hotdogs should design appropriate set menu in affordable prices for working people. In contrast with working people segment, children choose fast food restaurants based on their parents decision or what fast food restaurants can satisfy their demands, taste or even where offer them more attractive toys in their set menu if parents allow them to choose. When parents are the ones who make decision, 1901 can influence them by introducing the nutrition 40

contained in their dishes that is good for their childrens health and heart. At this stage, marketers at 1901 Hotdogs also need to understand what their competitors offer to children, follow the model if it is successful or simply design another models and products to satisfy children requirements. Marketers at 1901 Hotdogs should be more concerned with attribute importance of products. Sales personnel and attitude can greatly influence the customer at this stage and sales promotion offers become of interest. Independent sources of information are still of interest, including product test reviews.

Trong

giai

on

ny, khch hng la

chn

gia sn phm,

hoccng ty ln trn quyt nh mua hng. Ngi tiu dng khc nhau ctrin vng khc nhau v s khc bit ca sn phm. Thng hiuquc t, cht lng cao, sch s v hng v c o l th mnhnm 1901 Ch Hot. Nhng vi s tn trng lm vic phn khc hng, cc tiu ch quan trng nht h chn 1901 Hotdogs l gi c phi chng v mt s lng thch hp cc loi thc phm so vicc nh hng thc n nhanh khc phc v starvations ca thit k ph hp trnh h. Do, nm n thit 1901 Hotdogs nn

lp gic phi chng cho nhng ngi lm vic. Ngc li vi phn khcnhng ngi lm vic, tr em chn nh hng thc n nhanh da trn quyt nh ca cha m hoc nhng g cc nh hng thc n nhanh c th p ng nhu cu, hng v ca h hoc thm ch cung cp cho h chi hp dn hn trong trnh n thit lp ca h nu cha m cho php h la chn. Khi cha m l nhng ngi a ra quyt nh nm 1901 c th nh hng n h bng cch gii thiu v dinh dng cha trong cc mn n ca h l tt cho sc khe tr em v tri tim ca h. giai on ny, tip th ti 1901 Hotdogscng cn hiu nhng g i th cnh tranh ca h cung cp cho tr em, theo m hnh nu n thnh cng hay n gin l thit k mt mhnh v cc sn phm p ng yu41

cu tr

em.

Tip th ti 1901 Hotdogs cn c quan tm nhiu hn vi tm quan trng thuc tnh ca sn phm. Nhn vin bn hng v thi rt c th nh hng n khch hng giai on ny v xc tinbn hng cung cp tr thnh quan tm. Ngun thng tin c lp vn cn quan tm, bao gm c cc nh gi th nghim sn phm.d. Purchase Before making a purchase decision, there are three more consideration might affect the purchase decision: Attitudes of others (relatives, friends, etc) Anticipated situational factors as expected family income, expected total cost of the product and the expected benefits of the product Unanticipated situational factors as looks or manner of the salesman or the way business is carried on. The most important thing that marketers of 1901 should concern to affect their customers purchase decision in this stage is that the staff of 1901 Hotdog should offer customers friendly and helpful environment and endeavors to make them satisfy. Trc khi thc hin mt quyt nh mua hng, c ba xem xt c thnh hng n quyt nh mua hng: - Thi ca ngi khc (ngi thn, bn b, vv) - D kin tnh hung yu t nh thu nhp gia nh d kin, tng chi ph d kin ca sn phm v nhng li ch d kin ca sn phm - Yu t khng lng trc c tnh hung nh ngoi hnh hay cchthc ca cc nhn vin bn hng hoc kinh doanh theo cch c thc hin trn. iu quan trng nht m cc nh tip th nm 1901 nn quan tmnh hng n quyt nh mua hng ca khch hng trong giai on ny l rng cc nhn vin nm 1901 Hotdog nn cung cp cho khch hng mi trng thn thin v hu ch v c gng lm cho h tha mn.

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e. Post-purchase evaluation After buying and trying the products from 1901 Hotdog, the consumer will feel some level of satisfaction or dissatisfaction and level of satisfaction depends very much on the expectation and the products perceived performance. If the product matches up to the expectations of the working segment, they will be satisfied and may probably introduce 1901 hotdogs to their colleagues. If it falls short of expectations, he may switch his purchase decision into other restaurants and may not suggest to their friends. In terms of children segment, if they are satisfied with 1901 Hotdogs dishes, they might come again and tell their friends to try 1901 products. Marketers of 1901 are suggested to research about their customers comments and feedbacks so that they can know what to be improved and what has already satisfy their customers in terms of food hygiene, quality of staff, cleanliness of their infrastructure and so on.

Sau khi mua v cc sn phm t nm 1901 Hotdog, ngi tiu dng s cm thy mt s mc ca s hi lng hoc khng hi lng,mc v s hi lng ca ph thuc rt nhiu vo k vng v kh nng nhn thc ca sn phm. Nu sn phm ph hp vi s mong i ca cc phn on lm vic, h s c hi lng v c l c thgii thiu nm 1901 cc hotdogs ng nghip ca h. Nu n ri ngn ca nhng k vng, ng c th chuyn i quyt nh mua hngca mnh vo cc nh hng khc v khng th ngh bn b ca h. Trong iu kin ca phn khc tr em, nu h c hi lng vi 1.901mn n Hotdogs, h c th i mt ln na v ni vi bn b ca mnh th 1.901 sn phm. Tip th nm 1901 c ngh nghin cu v cc kin v phn hi ca khch hng h c thbit nhng g c ci thin v nhng g tha mn khch hngca h v v sinh thc phm, cht lng ca i ng nhn vin, sch s ca c s h tng ca h v nh vy.B. B2B Business to Intermediaries 1/ Types of Buying Behavior There are 3 types of Business Buying Behavior: New Task Straight Re-Buy

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-

Modified Re-Buy

According to target market segment for B2B, buying behavior of state-owned enterprises is modified Re-buy. In a modified re-buy, the buyer wants to modify product specifications, prices, terms or other conditions. The modified re-buy usually involves more decision participants than the straight re-buy. This target market makes high profit for 1901 Hot Dogs but the risk is also greater. Company may feel pressured to put their best to protect an account. It can be an opportunity to make a better otter and gain new business other competitors in the modified re-buy situation. 2/ Business Buying Process Generally, there are eight stages of Business Buying Process

a. Problem recognition In order to attract modified re-buy of state-owned companies; 1901 Hot Dogs may be highlighted by press coverage or advertising they have seen in the trade press. b. General need description

44

In this stage, marketers should pay attention to press releases, advertising, editorial comment. The customer will use whatever sources they can find to help them specify what they need. c/d. Product specification and supplier search: This is the time when the business customers are particularly open to visits from your sales force and trade directory entries. Because of never been in Vietnam, 1901 Hot Dogs still has no reputation in marketplace. Thus, exhibitions and technical information leaflets are also invaluable sources. Besides, pricing information is seriously considered. e. proposal solicitation: In this stage, 1901 Hot Dogs marketers need to take notice that Business marketers must be skilled in researching, writing and presenting proposals in response to buyer proposal solicitations. Proposals should be marketing documents, not just technical documents. f. Supplier selection: This is the time for personal contact g. Order routine specification: The more major the buying decision, the more reassurance your customer needs. Doing well after sales support and continued exposure to advertising and press coverage justifying the purchase decision. h. Performance review: The first purchase should not be seen as the end of the process, but the beginning of a long-term business relationship.

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C. Conclusion:

Entering into a new market, 1901 Hot Dogs has more advantages and opportunities as a market challenger. This report is conducted to support for 1901 Hot Dogs in entering into Vietnam market toward practice of marketing approach. There are many characteristics, elements, benefits and costs of marketing concept needed to be concerned by 1901 Hot Dogs in order to approach Vietnamese market. Focusing on the potential customers in the target market might help 1901 Hot Dogs become the market leader of the Vietnam fast food market in the future. Marketing is a vitally important area of a firm. For 1901 Hot Dogs, a marketing approach in Vietnam has costs and benefits. Not only paying attention in macro and micro environmental factors, marketers have to analyze segmentation criteria in multi-level. Understanding clearly about the buying process is also helpful for 1901 Hot Dogs to become more successful. Expanding in Vietnam market is an important and lucid decision of 1901 Hot Dogs because Vietnam is a very potential market. If successful in Vietnam market, 1901 Hot Dogs may need to consider about multi-expanded into Southeast Asian countries.

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Bc chn vo mt th trng mi, 1901 Ch nng c li th hnv c hi nh l mt thch thc th trng. Bo co ny c tin hnh h th chi tr cho 1.901 con trng ph ca trng Vit khi quan Vit ch nng trong vic tham gia vo im, cc yu t, li ch v

Nam i vi thc hnh phng php tip th. C nhiu c nim tip th cnphi c

tm bi 1901 Ch Hot trong tip cn th trng mc

Nam. Tp trung vo cc khch hng tim nng trong th tiu c th gip 1901 Ch Hot tr trng ca th tng trng thc n lai. thnh nh lnh o th nhanh Vit Nam trong

Tip th l mt khu vc cc k quan trng ca cng ty. i vi 1901Ch Hot, mt phng php tip th ti Vit Nam c chi ph v t mi li ch. Khng ch ch m, cc v nh rt cng mt m tip hu hn. quyt sut nm mt th trng v cc yu bit r trng vi trnh tr Vit

th phi phn tch cc tiu ch phn khc a cp. S hiu rng v qu mua cng thnh thnh Nam l sng ch cho 1901 Hot Dogs M rng th trng ti nh quan trng v

1901 Ch nng bi v Vit Nam l

rttim nng. Nu thnh cng ti th trng Vit Nam nm 1901 HotDogs c th cn phi xem xt v a m rng sang cc nc ngNam .

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REFERENCESEdexcel HNC/HND Business (2004), Marketing, London: BPP Professional Education. Jain, T. R., Khanna, O.P., Grover, M. L. and Singla, R. K. (2007) Industrial Sociology, Economics and Management, New Delhi: V. K. (India) Enterprises. Havaldar, K. K. (2010) Business Marketing: Text and Cases, 3rd edition, New Delhi: Tata McGraw Hill. Kohli, A. K. and Jaworski, B. J. (1990) Market Orientation: The construct, Research Propositions, and Managerial Implications, [Online], Available: Kotler, P. (2006) as cited in Wood, R. C. and Brotherton, B. (2008) The saga handbook of Hospitality Management, London: Saga Publication Ltd. Malaysian Institute of Management (2006) Hot Dogma of the 1901 Aspiration, [Online], Available: http://www.mim.org.my/news/MA1283.htm [20 Mar 2011]. 1901 (2011) History, [Online], Available: http://www.1901.com/about_history.asp [20 Mar 2011]. Zain, M. (2008) 1901 Hot Dog CEO Tengku Rozidar on Franchising, [Online], Available: http://dinarstandard.com/leadership/1901-hotdog-ceo-tengku-rozidar-onfranchising/ [20 Mar 2011]. Levitt, T. (2006) Ted Levitt on Marketing, USA: Harvard Business School Publishing Corporation. http://faculty.fuqua.duke.edu/~willm/Classes/PhD/PhD_20072008/Bocconi/s6_Demand_View/Kohli%20and%20Jaworski%201990.pdf [21 Mar 2011].

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General Statistics Office (accessed 2011) Populations and Labours, [Online], Available: http://www.gso.gov.vn/default.aspx?tabid=387&idmid=3&ItemID=9858 [24 Mar 2011]. General Statistics Office (2010) Economic and Social News in 2010, [Online], Available: http://www.gso.gov.vn/default.aspx?tabid=387&idmid=3&ItemID=9858 [24 Mar 2011].

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