How the pizza company differentiate and position their productsservices for maximum competitive advantage

The structure of The Pizza Company brand Source: self-synthesizing group.... In this report, we not only explore the products/services of The Pizza Company restaurant chain but also lear

TON DUC THANG UNIVERSITY FACULTY OF BUSINESS ADMINISTRATION

INTERNATIONAL BUSINESS

REPORT PRINCIPLES OF MARKETING

How The Pizza Company differentiate and position their

products/services for maximum competitive advantage

Lecturer: Nguyen Thi To Mai Group: Sunflowers – Shift: 4, Saturday

Ho Chi Minh City, 20 May 2021 th

LIST OF GROUP MEMBERS

ID

1 Le Nguyen Gia Huy 719D0259 Chapter 2

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ACKNOWLEDGEMENT

The group first sends their sincere thanks and deep gratitude to Ms Nguyen Thi

To Mai She is the one who has always provided us with support and guidance during our education and completed The article perfectly with The theme: "The Pizza Company." With her precious expertise and experience, she was eager to help and provide detailed guidance on the direction of development, the direction of understanding the subject, while also providing guidance on the appropriate approach, presentation of content, going into the problem That is the basis on which we can get the report done best

Without a teacher we would have been lost, you would have inspired us to get to today However, because of limited time conditions, and a lack of practical experience, the report is inevitably flawed and eager to receive comments from teachers and friends

Sunflowers Team

Table of Contents

INTRODUCTION 1

CHAPTER 1: INTRODUCTION ABOUT THE PIZZA COMPANY 2

1.1 Overview about Minor Food Group and QSR Vietnam 2

1.1.1 Minor Food Group 2

1.1.1.1 Formation and development process 2

1.1.1.2 Vision and core values 3

1.1.1.3 Culture 3

1.1.2 QSR Vietnam 3

1.1.2.1 Form of operation 3

1.1.2.2 Culture 4

1.2 Overview about The Pizza Company 4

1.2.1 Brand story 4

1.2.2 Field of activity 5

1.2.3 Organizational chart 5

1.2.4 Logo and contact information 6

CHAPTER 2: THEORETICAL BASIS AND DETERMINE THE TARGET GROUP CUSTOMER OF THE PIZZA COMPANY 7

2.1 Theoretical basis 7

2.1.1 Differentiation strategy 7

2.1.2 Brand positioning strategy 8

2.1.3 Value proposition 8

2.2 Analyze the target customer of The Pizza Company 9

2.2.1 Demographic characteristics 9

2.2.2 The way to approach customer information 10

2.2.3 The demand of customer 10

2.2.4 The behavior and preferences of the customer 10

CHAPTER 3: ANALYSIS DIFFERENTIATION STRATEGY AND POSITIONING STRATEGY OF THE PIZZA COMPANY 11

3.1 SWOT 11

3.1.1 Strengths 11

3.1.2 Weakness 11

3.1.3 Oppotunities 12

3.1.4 Threats 12

3.2 Competitors 13

3.2.1 Pizza Hut 14

3.2.2 Domino’s Pizza 15

3.3 Identifying a set of possible competitive advantages to build a position 17

3.3.1 Product 17

3.3.2 Service 18

3.3.3 Channel 19

3.3.4 People 19

3.3.5 Image 20

3.4 Choosing the right competitive advantages and selecting an overall positioning strategy 21

3.5 Communicating and delivering the chosen position to the market 21

CONCLUSION 22

REFERENCES 23

LIST OF FIGURES

Figure 1 The structure of The Pizza Company brand (Source: self-synthesizing group) 5 Figure 2 Logo of The Pizza Company brand (Source: Internet) 6 Figure 3 Positioning map (Souce: self-synthesizing group) 8 Figure 4 Positioning strategy (Source: Principles of Marketing by Philip Kotler and Gary Armstrong 16th edition) 9 Figure 5 The number of posts and blogs about used pizza brands 13 Figure 6 The percentage of brands talk about on social based on 181,456 blogs and posts 14 Figure 7 Example pizza of The Pizza Company 18 Figure 8 Services of The Pizza Company 19 Figure 9 Images of The Pizza Company 20

INTRODUCTION

Nowadays, the economy becoming more and more developed, diverse, and

complex, it has accidentally made each of us's lives busier and more hurried Hence, all

of us - consumers frequently prefer products or services that are fast, save time, and one

of them we cannot no mention the processing industry fast food of the F&B industry Thanks to its growth, now consumers have more and more choices, more opportunities to find the most proper product that meets their needs quickly, conveniently as well as a reasonable price It can be said that the fast-food area is still very popular, in Vietnam we have a range of well-known fast food brands from abroad such as Subway, Burger King, KFC, Lotteria, Pizza Hut, Pizza Inn, The Pizza Company….and it has gradually become

a new dining trend for people of all different ages For instance, if adults love fast food because it is convenient and time-saving, children like to use it as a snack to chat with friends or family after school or on holidays The image of fast-food chains popping up all over the world has attracted consumers by its clean space, high scale, dedicated staff, attractive menu, and unique characteristics of each brand

In addition to the strong development, the current situation is that the statistics of obesity, diabetes as well as environmental pollution from plastic waste are rising rapidly and in fact, these things have a heavy impact From the COVID-19 pandemic, the fast-food industry is facing huge challenges from microenvironmental to macroscopic factors Because of this constant change from environment to people, if businesses do not have specific strategies, it is very easy to lose to other competitors Eager to understand in-depth the strategies of businesses and how they approach customers, my team decided to choose The Pizza Company brand as its research object In this report, we not only

explore the products/services of The Pizza Company restaurant chain but also learn about the strategies that set them apart from other competitors, all things will help us get an overview of this brand, the fast-food industry and suggest some development directions for The Pizza Company In conclusion, the topic that my team explored <How The Pizza

Company differentiates and position their products/services for maximum

competitive advantage= The content of this report will divide into three main chapters:

• Chapter 1: Overview about The Pizza Company brand

• Chapter 2: Theoretical basis and determine the target group customer of The Pizza Company

• Chapter 3: Analysis differentiation strategy and positioning strategy of The Pizza Company

CHAPTER 1: INTRODUCTION ABOUT THE

PIZZA COMPANY

1.1.1 Minor Food Group

Minor Food Company is one of the biggest fast-service and reasonably priced restaurant companies Minor Food Company was founded in 1980 by Mr William

Heinecke with a pizza restaurant in Thailand and after years, now the company has more than 2200 restaurants operating in 27 countries around the world

1.1.1.1 Formation and development process

Minor Food Group was established in 1980 by Mr William Heinecke with fast food from the US entering the Thai market and then, small brands were established The process of formation and development of this group is separated into two main stages by

my group, that is from 2000 before and later years In 1986, Franchised Swensen's was born and soon became the largest ice cream brand in Thailand at that time About three years later, customer demand picked up when they wanted to eat at home and so Minor Food had its first style in the food delivery business In 1992, Minor Cheese Limited (MCL) and Minor Dairy Limited (MDL) were established to test the system's roughage to help customers have a quality meal at a reasonable price In the same year, Sizzler

opened its first branch in Thonglor Road, Thailand with Western specialties such as steak, ribs, seafood along with self-serve and satisfying salads, soups, kinds of pasta, that is something that few restaurants can enforce In 1996, one of the largest brands in the world was established based on the environment and climate in this country, Dairy Queen

In 2000, Burger King was founded with a blend of meat and cheese, making diners feel satisfied and they find it hard to give up the burger that they enjoy in their mouths In 2001, The Pizza Company was like one of the spiritual dishes of Minor Food Corporation was born, the difference of The Pizza Company from the heavy rivals is a unique approach to the pizza dish Until 2005, they started calling for investment capital and then were accepted by a foreign company in China, this is a milestone for the

booming success of the international arena In the years that followed, they continued to invest in brands such as S&P Syndicate PCL (2006), The Coffee Club (2008), and Ribs and Rumps (2011) They entered the restaurant business in China (Beijing Riverside & Courtyard) in 2012 and opened the first two stores owned by PE overseas (Maldives) Constantly developing further, in 2013, they entered into cooperation with Al Nasser Holdings LLC - a multi-industry corporation and in 2014 they officially acquired 70% shares of VGC Group, establishing 50 joint venture companies: 50 and launched a

culinary institute to bring Thai food into the global kitchen as well as investing in Grab Thai Food In recent years, Minor Food Group continued to expand its name in the

European market in 2015, launched the first Riverside in Singapore in 2016, and after

only two years, they have been present in many markets around the world demand and increase ownership to 100% in Riverside Finally, in 2019, they launched 1112 fast

delivery service for seven brands under Minor Food and MINT invested in Chicken Time Co., Ltd, Thailand

1.1.1.2 Vision and core values

Minor Food Group wants to be the leading food suppliers and maximize

stakeholder value, besides that, core values are equally important and Minor Food Group has a total of five core values The first core value is focusing on customers, customers are always the top priority, which is also Minor Food Group's belief in everything they do every day The second core value is result-oriented, they always work with passion, energy and strive to achieve excellence in all their efforts The third core value is human development, employees working at Minor Food Group are always allowed to unlock and maximize their potential, always rise to the challenge and go beyond The fourth core value is creativity, constantly changing the way things work and allowing for

improvement and being the best in what they do The last core value is a partnership, they always work closely with their partners, create the same vision of growth and achieve it together

1.1.1.3 Culture

Culture is an important factor that any company has so that outsiders can

distinguish it from other businesses, and Minor Food alone has four distinctive cultures Firstly, think like an entrepreneur and act professionally Secondly, Minor Food

Corporation is quite good at finding a favorable business location and envisioning what it takes to make the impossible possible Next, they carefully select and work with the people who know best to make your vision a reality so you can grow with them

Ultimately, being in the Minor Food Group is being in a group of talented people who want to drive business success to leave a legacy for the next generation and future

society

1.1.2 QSR Vietnam

QSR is a company established in Vietnam in 2013 and is one of the leading

companies in Vietnam’s restaurant chain service sector The restaurants in the QSR chain are famous brands from the US such as Dairy Queen, Swensen, The Pizza Company, AKA House, Holy Crab, Chang, and The Coffee Club

1.1.2.1 Form of operation

QSR Vietnam companies operating in the form of trading company franchised brands

1.1.2.2 Culture

As mentioned before, any company has a unique culture and QSR company is not

an exception, including seven distinct cultures Firstly, the QSR company always takes employee satisfaction as a top priority, which is the foundation for bringing satisfaction

to customers Next, QSR has always focused on customers through thorough

understanding and dedicated care Third, at QSR company, there is always a sense of responsibility for the committed goals, and is not afraid to face problems and challenges The fourth thing is that trust and respect for each other are the foundation for the

sustainability of all relationships around The fifth culture always respects regulations, laws, and policies and always shows transparency and clarity in all activities The sixth thing, they evaluate the results achieved at work as convincing evidence for their capacity and attitude Last, but not least, is not afraid to give ideas to improve work efficiency

1.2 Overview about The Pizza Company

1.2.1 Brand story

The Pizza Company is one of the brands owned by Minor Food Group - the

world's largest restaurant, hotel, and culinary group It was first launched on the market in March 2001 in Thailand, a country known by the familiar name of the land of golden pagodas, and until April 2013, The Pizza Company officially opened the first store in Vietnam after being cooperated by QSR Vietnam and Minor Food Group through

international franchising

When The Pizza Company approaching Vietnamese culture and cuisine, with a meticulous understanding of the tastes and preferences of domestic diners, all products served at having a common recipe that is a delicious dish with exquisite taste, fresh

ingredients, the way to arrange food on the table beautifully as well a 100% strict control process of Minor Food Group At present, The Pizza Company brand has always

followed the slogan <Flavor to excite=, they are constantly creating, innovating, and

serving customers with more premium pizzas, filled with premium cheese and a unique taste, especially fresh and carefully selected ingredients such as high-quality cheese made from 100% pure fresh milk, more than 30 different sauces on the cake surface have

attracted a large number of diners to experience Besides, when entering our country, QSR Vietnam has focused on giving this brand a characteristic that later becomes a

competitive advantage over other brands, which is the quality of service The Pizza

Company Vietnam always prioritizes customer satisfaction and until now, they are still trying to develop every day, every month for their products and services to conquer

customers in ages The Pizza Company today has expanded to about 70 branches and stretches from North to South to serve customers everywhere in Vietnam

1.2.2 Field of activity

The Pizza Company's main field of activity so far has mainly focused on pizzas, when we come to the restaurant to enjoy or explore on social networking platforms, we can notice that the main dish is here is pizza, such as Pesto seafood pizza, mixed pizza, However, for customers to enjoy the meal more fully as well as reduce the boredom when consuming pizza too much, the menu gradually adds other accompanying dishes such as pasta, rice, salad, and while waiting for the food or after finishing the meal, customers can also use desserts or other tempting drink

1.2.3 Organizational chart

This is an organizational chart of The Pizza Company restaurant chain in Vietnam,

it will help you easily keep track of how this brand operates and manages

Figure 1 The structure of The Pizza Company brand (Source: self-synthesizing group)

1.2.4 Logo and contact information

Figure 2 Logo of The Pizza Company brand (Source: Internet)

• Tax code: 0104115527

• Representative office - address: Pizza Ngon Joint Stock Company, No.77 Tran

Nhan Ton Street, Ward 9, District 5, Ho Chi Minh City, Vietnam

• Phone number: (028) 7308 3377

• Hotline for ordering: 1900 6066 (9:30 - 21:30)

• Website: https://thepizzacompany.vn

CHAPTER 2: THEORETICAL BASIS AND

DETERMINE THE TARGET GROUP CUSTOMER

OF THE PIZZA COMPANY

For the content below to be clearer, more reasonable and more convincing, our team would like to mention again three concepts in Principles of Marketing subject that help the reader to understand as follow:

2.1.1 Differentiation strategy

According to author Philip Kotler - the father of modern marketing, he believes that differentiation strategy is when a business tries to build differences between their company's products and those of other competitors It can be described as the way a business creates things in products/services that competitors do not have, so they making costumer aware that it is the most unique thing in costumer's opinion to help businesses gain a competitive advantage in the market

However, when the brand creating a differentiation strategy, they need to pay attention as well as find out precisely whether the difference they create meets these 7 criteria quite well in below:

1/ Important: the difference has to be important to the customer, it means it needs

to match their wants, needs as well as bring real benefits to them

2/ Distinctive: when a competitor offers the same strategy but your business can

do it in a better way

3/ Communicable: the difference when communicating to customers has to make

them easily feel when they compare with other brands

4/ Superior: between two businesses can bring customers similar benefits, but

your business's different needs to have higher characteristics or features

5/ Affordable: the difference must be the things that customers can afford, if the

different things come with high prices, the business needs to prove to customers that it is reasonable and deserving for them to accept to pay extra

6/ Preemptive: that difference must be maintained or in other words, it is a

strategy that is hard for competitors to imitate

7/ Profitable: that difference must be profitable for the company, all a business

wants to do must be measured by profit, not breakeven or worse, loss

2.1.2 Brand positioning strategy

According to Philip Kotler, brand positioning strategy is how businesses select, design, and build in the minds of customers about their products/services as well as their brand image to gain a special and valuable position in the hearts of customers, thereby helping customers have a clear image of that brand compared to other competing brands Additionally, for Marc Filser, brand positioning is the enterprise's effort to give

products/services a unique image and easy to enter into the perception of customers In short, this strategy explains how a business creates differentiated itself from its

competitors and the conditions as well as opportunities in the market

In theoretical, we have all 5 main brand positioning strategies, which are:

• Positioning based on product characteristics

• Positioning based on price

• Positioning based on quality or luxury

• Positioning based on product use or application

• Positioning based on competition