Real estate market dataanalys group project mcdonald's tran hung dao

The drivethru model not only improves McDonald's service quality but also maintains its leading position in the global fast food industry.. Additionally, visitors at tourist and entertai

HOA SEN MINISTRY OF EDUCATION AND TRAINING

BANKING AND FINANCE DEPARTMENT

WORLD CLASS EDUCATION

Subject: Real Estate Market Data Analys

Lecturer: Nghiem Tan Phong

Group members: Ho Nguyen Anh Vu - 22106173

Mai Hoang Khoi — 22122933

Ho Nguyen Khoi - 22112487 Nguyen Thanh Cong - 22117280

Ho Nguyen Tam - 22102925

Ho Chi Minh, June2024

HOA SEN MINISTRY OF EDUCATION AND TRAINING

BANKING AND FINANCE DEPARTMENT

WORLD CLASS EDUCATION

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The surrounding area is mainly office buildings, hotels, and shopping centers also including:

¢ Bus stops to serve the transportation needs of customers

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¢ Numbesr of public buildings such as Notre Dame Cathedral and Central Post Office

Land use planning information

Subdivision planning Detailed urbar

project tructio: nnin

scale 1/2000 subdivision planning) Ho Chi Minh City's

ex 9 Central Area (930ha

(subdivision planning) of the existing central area of

Ho Chi Minh City (930ha) Included in decision No 6708/QD-UBND Approving agency: Ho Chi Minh City People's Committee

Approval date: December 29, 2012

And Medonal's Tran Hung Dao land belongs to 7 plots of 3 with an area of 357m2

Of which traffic land accounts for 10m2 and the remaining 347m2 is complex land

There are 2 roads: Tran Hung Dao 40m2 and Pham Ngu Lao 20m2

(Image 3 Land planning)

1.5 Traffic

Major roads near it such as Nguyen Thai Hoc and Le Loi are roads with a large amount of traffic and are the main roads connecting with other neighboring areas

Near major shopping centers such as:

Bitexco is about 500m from McDonald's Tran Hung Dao

Saigon center is located about 1km away

Parkson Saigon is about 1.5km away

And within a radius of 1-2km around McDonald's, there are many other commercial centers, offices, and hotels such as Landmark, AB Tower

(Image 4 Traffic of the neighbourhood)

1.6, Overall market analysis

1.6.1.Population

The district has an area of 7.72km2, population in 2019 is 142,625 people, population density reaches 18,475 people/km? The district has an area of 7.72km2, population in 2024 is 204,899 people, population density reaches 26,541 people/km?

District 1: This is where many office buildings for rent in Ho Chi Minh City are concentrated, many luxury hotels and busy shopping centers In addition, District 1 also

is home to many historical and cultural relics

Area: 7.73 km2

Population (June 2023): Approximately 204,899 people

Currently District 1 has a total of 10 wards:

¢ Co Giang Ward: has an area of 0.36 km2, population of about 11,574 people

¢ Cau Ong Lanh Ward: has an area of 0.23 km?2, population of about 10,527 people

e Thai Binh Ward: has an area of 0.49 km2, population of about 9,908 people

e¢ =Tan Dinh Ward: has an area of 0.63 km2, population of about 22,238 people

1.6.2 Household

To estimate the number of households in District | in 2019, we need more information about the average ratio of people per household in that locality If we assume each household has an average of 3 people

Then the number of households in District 1 in 2019 will be 142,625: 3, about 47,541 households

The number of households in Quanaj m 2024 will be 204,899: 3, about 68,299 households

1.7 SWOT Analysis

1.7.1 Strengths

Central Location: Located on Tran Hung Dao Street, District 1, one of the most central and bustling areas of Ho Chi Minh City, this location is close to major office buildings, bustling shopping centers, and famous tourist attractions

(Image 5 Satellite map of the area)

network, easily accessible by various means such as motorcycles, cars, buses, and even taxi and Grab services Especially with the support of technology applications, moving around this area has become easier than ever

- High Customer Traffic: District 1 is densely populated with local residents, tourists, and office workers, providing a large potential customer base for business activities The diversity in age and customer needs also helps businesses expand the market and develop products flexibly

restaurants, this location creates a varied and attractive business environment Additionally, the presence of amenities such as Ben Thanh Market, Metro station, cafes, parks, and pedestrian streets is also a factor that attracts customers, especially the youth

and operate stores under the McDonald's brand The franchisee is responsible for funding the cost of building, leasing, or purchasing business premises, and daily operations Meanwhile, McDonald's provides staff training, operational support for the store, and the right to use the McDonald's brand, a globally recognized brand

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“The world's leading fast food corporation, McDonald's (USA), has just announced that it has selected Mr Nguyen Bao Hoang, founder of Good Day Hospitality and CEO of IDG Ventures, as its franchise partner in Vietnam.” (Source: VnExpress McDonald’s enters the Vietnamese market)

1.7.2 Weaknesses

High Rental Costs: When it comes to doing business in a prime location like District 1, the first thing to understand is the high cost of renting premises Due to the central location, rental costs here are often very high This not only increases operating costs but also poses financial challenges

(Image 7 Lotteria store nearby)

(Image 8 Jollibee store nearby) Limited Parking Space: Another common issue in central areas is the parking space The lack

of parking can reduce convenience for customers using cars and motorcycles This not only makes it difficult for customers but can also affect store traffic, especially on peak days

(Image 9 McDonald’s Tran Hung Dao parking lot)

Enhanced Delivery Services: The central location can enhance delivery services compared to other locations With favorable transportation and infrastructure, delivery services can efficiently meet the growing demand for convenience, speed, and quality Delivery apps help customers save time and provide a comfortable and easy shopping experience

DriveThru Model: McDonald's drivethru model allows customers to order and receive food without leaving their cars The process includes three main steps: ordering via intercom, paying

at one window, and receiving the order at the next window This model is convenient, fast, and safe McDonald's has addressed traffic and service quality issues by designing rational pathways and training professional staff Automation and optimized communication systems are other modern technologies used to enhance efficiency The drivethru model not only improves McDonald's service quality but also maintains its leading position in the global fast food industry

Large Potential Market: District 1, with its large number of tourists and highincome residents, is a potential market for premium and special services We always capture customer needs and provide products and services that align with their trends and preferences

“According to the Ho Chi Minh City Department of Tourism, at the beginning of 2024, the number of foreign tourists to Ho Chi Minh City increased by over 15% compared to the same period in 2023, estimated at about 75,000 arrivals, especially cruise tourists and tourists from Europe, the USA, Australia, Japan Additionally, visitors at tourist and entertainment spots are estimated at about 1.8 million, up 5.9% over the same period last year.” (Source: Cong an Newspaper)

Healthy Products: McDonald's offers its customers healthier food options and encourages better nutrition One notable initiative is the "Global Happy Meals Goals," implemented in collaboration with the Alliance for a Healthier Generation These goals aim to ensure balanced meals by offering healthy options such as fruits, vegetables, lowfat dairy, whole grains, and lean protein McDonald's has committed to reducing added sugars, artificial flavors, and preservatives

in its products

1.7.4 Threats

Competition from Industry Peers: Competitors with innovative and unique business models can impact the company's market share These competitors may offer similar products or services with better prices, quality, or features

Health Awareness: McDonald's fast food is often described as unhealthy, high in calories, sugar, and fat, leading to health issues such as obesity and diabetes This means that healthconscious customers do not favor it Additionally, healthcare organizations, governments, and consumers demand McDonald's disclose nutritional information and reduce unhealthy

ingredients in the menu The emergence of many restaurant chains focusing on healthy food has hindered McDonald's in attracting and retaining customers

Competition with Healthy Food Rivals: The trend of healthy eating is becoming more popular More and more people are focusing on health care through diet and demanding quick but nutritious meals This poses a new challenge for McDonald's, requiring adaptation and innovation to meet the changing needs of customers

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CHAPTER 2 EVALUATE PROJECT NEEDS AND COMPETITIVENESS

2 Evaluation within the project

2.1 Types of customers

Youth and teenagers: This is the most important customer group for McDonald's in Vietnam The consumption habits and lifestyles of Vietnamese people, especially young people, are changing along with the urbanization process Industrial lifestyles, fast food, and fast drinking are factors that help Fast Food develop rapidly While in the US, fast food is considered a common food, eaten quickly to save time, in Vietnam the concept of "fast food" has changed somewhat In fact, many people even think that going to eat at KFC or Lotteria

is luxurious and stylish Fast food meets part of the demand for accessing Western-style services of millions of young residents in big cities Fast food restaurants are always beautifully decorated and clean, making them suitable venues for gatherings and socializing for most young people In addition, there are many foreigners living in Ho Chi Minh City in particular and the whole country in general They like to explore and experience foreign brands, especially well-known brands like McDonald's The modernity and international lifestyle that McDonald's brings attract many young people who tend to spend on new culinary experiences and styles

Middle and upper class: Income levels and disposable income in Vietnam are increasing rapidly McDonald's will target the Vietnamese middle class, with household incomes in the range of 500-1,000 USD per month, who have high disposable income and are willing to pay for quality products and services They come to McDonald's not only to eat and drink but also to enjoy the modern and convenient space that McDonald's stores provide, with a clean and modern dining space, amenities such as free Wi-Fi, children's play areas, and professional customer service These factors contribute to creating a friendly and comfortable environment that attracts customers from this class The middle and upper classes often tend

to favor Western consumer culture, partly due to studying or working abroad, or simply exposure to international media McDonald's, with its global brand and consistent quality, perfectly meets this need Customers feel confident and secure when using products from a brand that has been tested worldwide

Families with children: McDonald's also attracts many families with children Parents often take their children to McDonald's because of the play space, attractive promotions for children, and guaranteed service quality McDonald's creates a friendly and safe environment for children with specially designed play areas These areas are not only places where

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children can have fun, but also help parents relax and enjoy their meals while their children play safely McDonald's often organizes promotions and events specifically for children, such as birthday parties, family days, and gift programs like toys in Happy Meals These activities not only attract children but also create a reason for families to return more frequently Even though some parents don't like fast food, they still choose McDonald's for their children to have fun experiences

In addition, McDonald's in Vietnam also attracts foreign customers and those familiar with Western culture, especially in large urban areas such as Ho Chi Minh City and Hanoi 2.2 Average income of people

With an average income of 6.51 million VND/person/month, the people of Ho Chi Minh City have the ability to pay for McDonald's products The price of a basic meal at McDonald's, including a burger, fries, and a drink, usually ranges from 50,000 to 100,000 VND, equivalent to

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about 2-4% of a person's monthly income This shows that most people can afford to enjoy McDonald's meals without significantly affecting their monthly budget However, for those with lower than average incomes or large households, the cost of a meal at McDonald's may take up a considerable portion of their total monthly expenditure

Although the people of Ho Chi Minh City can afford McDonald's products, the frequency of consumption may not be high due to prices that are not the cheapest on the market Most people will consider McDonald's as an option for quick, convenient meals or as a place to change their taste and experience Western food culture However, with relatively high prices compared to local eateries, many people may only visit McDonald's once or twice a month, or only on special occasions such as birthdays, anniversaries, or when going out with friends and family

McDonald's has to face fierce competition in the Ho Chi Minh City food market The city is famous for its diverse cuisine, from street food stalls and affordable rice shops to high-end restaurants In the fast food segment, McDonald's has to compete with other international brands such as KFC, Burger King, Lotteria, and local fast food chains like Jollibee and Popeyes Many Vietnamese consumers also prioritize choosing traditional dishes at affordable prices at local eateries, where they can find familiar dishes that suit their tastes Therefore, McDonald's needs to continuously innovate its menu, offer attractive promotions, and improve service quality to attract and retain customers in this fiercely competitve environment

2.3 Competitors and Comparison

(1) | McDonald's Tran 0m 280m2 240 billion 1.6 billion $$ Hung Dao

Hung Dao