wrap and roll company franchises to indonesia

With idea of gathering Vietnamese three regions’ wrap and roll food, Mrs Nguyen Thi Kim Oanh- the owner of restaurant chain decided to establish the first restaurant in February, 2006, c

VIETNAM GENERAL CONFEDERATION OF LABOUR

TON DUC THANG UNIVERSITY FACULTY OF BUSINESS ADMINISTRATION

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MIDDLE TERM REPORT INTERNATIONAL MARKETING TOPIC: WRAP AND ROLL COMPANY FRANCHISES TO INDONESIA

HO CHI MINH CITY, TUESDAY 4 TH MARCH, 2014

GROUP MEMBERS

PART 1

INTRODUCTION OF WRAP AND ROLL COMPANY

I. Wrap and Roll Company:

a. Introduction:

Vietnam is a country influenced by France and United State of America after wars, but

it could receive a lot of precious values from both developed countries To appreciate national culture of a country, one of criteria is food and eating habit Vietnam’s cuisine

is very diverse and there are many differences between three regions: the North, the Middle and the South region Fish sauce, shrimp paste, soy sauce, rice, fresh herbs, and fruits and vegetables are always included in every meal of Vietnamese

With idea of gathering Vietnamese three regions’ wrap and roll food, Mrs Nguyen Thi Kim Oanh- the owner of restaurant chain decided to establish the first restaurant in February, 2006, called in Wrap & Roll Up to now, Wrap & Roll has 8 locations in Ho Chi Minh City and Ha Noi (Vietnam) and 3 locations in Singapore, it also has the first one in (Sydney) Australia.Wrap & Roll restaurant has more than 40 rolls and various sources collected from everywhere of three regions, these dishes are eaten with

vegetables, herbs and dry rice paper form It will give the feeling of a truly unique taste

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In 2008, Wrap & Roll received the awards of Vietnam Economics Time “The Guide Awards”

Moreover, the key ingredients in Wrap & Roll dishes are green vegetables and herbs that are grown in organic soil, no pesticide, deeper taste and good for health Fresh and dry rice paper is also a special component in wrapping, it is made from rice and then drying under the heat of sun, so when eating dry rice paper, there is a unique taste as salt Not at all, one of diverse sources is fish sauce- that is made from fermented raw fish- can be mixed with a lot of Vietnamese dishes, so fish sauce has become

indispensable spice in traditional food culture

Wrap & Roll was building the new style restaurant, they are designed with the art environment, combine the traditional style and modern style that give the customers a feeling they never forget

b. Products of Wrap & Roll:

Products of Wrap & Roll are diverse dishes from three regions of Vietnam, so it not only provide the wrapping and rolling food, but also are made from rice like pho or hot pot Then the customers can enjoy the sweet desserts made from coconut, banana, red beans,… it will give customers the perfect “fresh” meal The ingredients of food are fresh, less oil and cholesterol, no monosodium glutamate in cooking, not preservative rice and organic vegetables that protect your health from popularly dangerous diseases and obesity-that appears in almost Asia countries caused by fast food

Besides, the service of this restaurant will give customers the strange feeling that they never forget, under the green color background of Wrap & Roll, the customer can experience the truly Vietnamese cuisine and remember traditional food with nature and fresh taste This table will show all of main dishes of Wrap & Roll Restaurant

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II. Franchising

Franchising is a business model in which many different owners share a single brand name This is a faster and cheaper form of expansion in short time, so it is a good way for investors if they want to reduce the cost of investment Therefore, with the experiences of Wrap & Roll in franchising, the investors can receive the cash flow faster

In Vietnam, franchising is still new so when company wants to do this model, they must research and prepare everything carefully It is more difficult for Wrap & Roll to find the suitable franchisees with differences in national culture Almost food of Wrap

& Roll are made from rice, vegetables, fruit,…that will be good for health and improve the quality of life To get the trust of customers, Wrap & Roll try to build the model “green restaurant” that can achieve the standards of food safety Not at all, this will be the best place to feel the beauty of traditional Vietnamese food

Up to now, Wrap & Roll opened to franchise to Australia- the first franchisee of Wrap

& Roll and Singapore Australia is a place of cultural diversity of Eastern-Western countries, so developing a restaurant here will open the way to franchise to other countries in the world

III Market segment

Although Wrap & Roll is a young company in restaurant industry, it still can do original business Things from Wrap & Roll are not only food, but also style of cooking, so almost customers come to restaurant can learn the new cuisine or remember the familiar taste of traditional Vietnamese food Therefore, anyone who love food and want to build the new food style are also potential diners of Wrap & Roll

IV. Wrap & Roll style

Wrap & Roll restaurant will provide the wrapping- and- rolling dishes or customers can do it themselves So this is the best way for everyone – not only Vietnamese can understand the Vietnamese cuisine and culture

Moreover, the first time coming to restaurant, customer will be impressed with the design of Wrap & Roll is mixing from the dark green to the light green, so the green

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color is key color symbol for the “green restaurant” model It means everything used

in restaurant are green, fresh, and safety

The logo of Wrap & Roll emphasizes the natural beauty, it is a circle in green with

“WRAP” and “ROLL” in words, “&” is the word “and” in short, only this word is in yellow The special meaning of logo is many small circle, they symbolize for dry rice paper With changing the depth of green, it made “green restaurant” model be

remembered in customers’ thinking

V. Analyze SWOT of Wrap & Roll:

a. Strength- S

o The restaurant has fasten the speed of development, the actual fact is there are 8

locations in Ho Chi Minh and Ha Noi (Viet Nam), 3 locations in Singapore and 1 food court in Australia

o There is combination between traditional taste and modern decoration will make the space for people to relax and enjoy food

o Employees are active and serve friendly, they always put customers at highest place

“customer is a god”

The first restaurant serve wrapping-and-roll in Vietnam, it makes unique in food culture

There are formulas for 40 dishes and more than 20 different kinds of sauce

o Ingredients are fresh, less oil and cholesterol, no monosodium glutamate in cooking, not preservative rice and organic vegetables that protect your health from diseases and obesity

b. Weaknesses- W

o The restaurant doesn’t have experiences in franchising so it is difficult to find

franchisees and make brand name famous

o Differences in culture will limit the consumption in franchisees’ country, so Wrap & Roll must compete with other competitors

o Logo design uses green color that is not suitable for foreign market

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c. Opportunities- O

o Vietnam became a member of the WTO has created many opportunities for companies

to easily integrate into the world economy with simple procedures and having lower barriers, enjoy the preferential policies, the reduce taxes, create fair competition

o The first restaurant of wrap and roll food, it collected more than 40 rolls from

everywhere in Vietnam So it is a place where foreigners can understand Vietnam right

in their own country

d. Threats- T

o Wrap & Roll must assure the international standards of food

o Trade barriers to Vietnamese ingredients such as: fish, poultry

o To country, Vietnam is used to have products that are under strictly checking It is very difficult to get the trust of customers

PART 2 CHOOSING THE COUNTRY FOR FRANCHISING

I. How to be potential franchisees:

Choosing a country that will be potential franchisee is not easy especially to Wrap & Roll- the first Vietnamese company does this model Difference in culture and macro environment is the important factors to affect listing possible countries

First of all, from many countries in the world, we cannot have a list unless having criteria Wrap & Roll is the new brand of Vietnamese wrapping and rolling food, and vegetables are indispensable ingredient in almost dishes Therefore, Wrap & Roll restaurant must choose countries consuming vegetables as much as possible

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The question is: “Why it must be vegetables, not others? “ Life is more and more developing, this will threat to the health of people because they must get used to

having faster life, this means that humans live and remain their life at the fastest speed

They live faster, eat faster, work more…, they need energy for life This is also the reason why every meal is so much fat Because of that, the obesity rate increases faster and faster, this rate also threat community’s health Therefore, to reduce this case of obesity, some country used or are using vegetables as a main ingredient in cooking

Vegetables and fruits are very low fat, but they can provide a large amount of vitamins and minerals such as: vitamin A, B, iron,…Almost people hate eating this kind of food especially children Of course, comparing with meats: beef, chicken, pork, the taste

of vegetables and fruit are not delicious, too light But they don’t know that there are a lot of antioxidants in vegetables and fruits, it will protect people from oxidant stress, diseases and especially cancers because antioxidants will make a new thing in body and this thing will develop the immunity to fight against diseases

II Finding the new market:

According the chart of “Vegetables Consumed” by the SASI group (Michigan), there

are some groups suited with criteria They are North America, Eastern Europe, Western Europe, and Eastern Asia All of them are belongs to continents: The American, Europe, and Asia

Firstly, in the continent of The American, we find out the country having high

vegetables consumed rate is United States

Percent of U.S Population Eating 3 or More Vegetables per Day (2009) 26.3%Secondly, in the continent of Europe, we find out some suitable countries such as: England, Germany and France

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Then the final one in Asia is Korea Korea consumes a lot of vegetables, is the second ranked after Greek, the first one in Asia.

(per capita)

Sources: Euromonitor International (2008)

Potential franchisees are United States, England, Germany, France and Korea The next step, we analyze the macro environment of these countries then to find out only new market for Wrap & Roll

There are five chapters in this part Each chapter will be information of macro

environment of a country

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 Chapter 1: United States

o 0-14 years: 20% (male 32,344,207/female 31,006,688)

o 15-24 years: 13.7% (male 22,082,128/female 21,157,025)

o 25-54 years: 40.2% (male 63,802,736/female 63,581,749)

o 55-64 years: 12.3% (male 18,699,338/female 20,097,791)

o 65 years and over: 13.9% (male 19,122,853/female 24,774,052) (2013 est.)

1.1.2. GDP:

_ U.S GDP got 16,724 trillion (2013) and is ranked 1st in the world

_ Growth rate: In 2013, GDP grew 1.9 percent compared with an increase of 2.8 percent

in 2012

1.1.3. Income:

Income, easily know that is money for improving life Higher income means higher living standards

o Income: the average rate is 38 001 USD a year (2013)

o Employment rate of the age of 15-64 is 64% ( it means that people have paid job from 15-64 years old)

 83% of people reported having more positive experiences in an average day than negative experiences (according to OECD report, 2013)

1.1.4. Trading environment:

U.S is open market for other country to trade

1.1.5. Inflation rate – Exchange rate:

_ Inflation rate: On January 31st, 2014 the inflation rate of United States is 1.6%

_ Exchange rate:

Foreign Currencies Against Vietnam

_ HDI of United States is very high, is ranked 3rd in the world

 The development of people in United States is higher in time

1.1.7. Level of urbanization:

_ Urban population: 82% of total population (2010 )

_ Rate of urbanization: 1.2% (annual rate of change (2010-15))

 The level of urbanization is high => the level of life of people need to higher

1.1.8. Member of any international organization:

United States is the member of about 81 international organizations in the world like:

_ World Trade Organization (WTO)

_ Asian Development Bank (ADB) (non- regional member)

_ Asia – Pacific Economic Cooperation (APEC)

_ Association of Southeast Asian Nations (ASEAN) (dialogue partner)

_ Group of Seven (G7)

_ International Development Association (IDA)

_ International Monetary Fund (IMF)

_ North American Free Trade Agreement (NAFTA)

National security

Since the 9/11 terror attacks the national security in the United States has been

intensified significantly It has had consequences in various areas in connection with export to the United States, among other things, the time used for customs declaration has increased

Occasionally, the United States uses its authority to exclude foreign products and services in areas related to national security interests.

Public purchase: In connection with public purchasing a number of stipulations on federal, state and local levels, gives preference to United States companies and

America is a federal constitutional republic, in which the President of the United States

is the head of state and head of the government, Congress and judiciary share powers reserved to the national government, and the federal government shares sovereignty with the state government

There are major differences between the political system of the United States and that

of most other developed democracies These include greater power in the upper house

of the legislature, a wider scope of power held by the Supreme Court, the separation of powers between the legislature and the executive, and the dominance of only two main parties Third parties have less political influence in the United States than in other developed country democracies

1.2.2. Legal Environment:

United States common law system based on English common law at the federal level; state legal systems based on common law except Louisiana, which is based on

Napoleonic civil code; judicial review of legislative acts

1.3. Cultural – Social Environment:

1.3.1. Cultural Environment:

United States is a country that has mixing culture because the components of citizen come from many different nations such as: India, China, Vietnam, … This makes a cultural diversity

1.3.1.1. Intra- national allegiances

People, who came from other countries, always try to “connect” with the same ones and divide into groups, clubs In each group or club, they share and communicate like

a family In America, there also have neighborhoods in cities such as: "Chinatown" of Chinese, or "Little Saigon" of Vietnamese

Although they have intra- national allegiances, they still accept others national culture

In meals of American, it is always formal and polite This place has combination of many diverse food cuisines, American easily get used to changing food or other

nations’ cuisine Therefore, it is very interesting for them to enjoy Vietnamese cuisine,

up to now they accepted and loved Vietnamese wrapping and rolling food as spring rolls, pork mixed rolls,

1.3.1.3. Popular culture

The United States is known around the world for the films, shows, and musical

performances that it produces The biggest centers of popular American culture are New York City, Los Angeles, Chicago, Florida, and Las Vegas Smaller venues such as Branson, Missouri and Nashville have become popular, but most cities host travelling productions of popular Broadway shows

American always spend time to go out for relaxing, they can go restaurants, bars, shopping or even just watching films and enjoy food

1.3.1.4. Religion

According to data in 2007, this chart show the religious rate in U.S

From chart, Christian gets the highest rate 14%, and in America, people can be free in choosing a religion or don’t follow any religions.

1.3.2. Social Environment:

It is a controversial issue when discussing about classes of United States society, because almost Americans believe that there are a simple three-class model that includes the "rich", the "middle class", and the "poor"

1.4. Natural- Technological Environment:

1.4.1. Natural Environment:

1.4.1.1. Geography:

Pacific and Caribbean The country has same borders with Canada, Mexico,

1.4.1.2. Natural resources:

There are many different natural resources in U.S such as coal, copper, lead,

molybdenum, phosphates, rare earth elements, uranium, bauxite, gold, iron, mercury, nickel, potash, silver, tungsten, zinc, petroleum, natural gas, timber

1.4.2. Technological Environment:

The technology of US is continuous innovate and develop day by day American advertising has grown massively: new media – radio, television, and the Internet – deliver commercial messages in ways almost unimaginable more years ago

Americans are often attracted by new technology and new gadgets; for example, automobiles, smartphones as iphone, computers as ipad, ultra-thin laptop, or online shopping,

Besides, the American agriculture industry has gone through massive developments over the past century While agriculture in the earlier days in America was focused in labor, the current trends use sophisticated equipment for farm work Agriculture took

up more than half the work force in the earlier days while now; the ratio has come down to less than one-fourth From use of work force in huge farms, the scenario has now changed to smaller farms with high productivity using fewer work forces The efficiency of the United States agriculture technology has grown enormously over the last century From dependency on farm animals, the dependency has now shifted to mechanization

CHAPTER 2

2.1. Demographical – Economical:

2.1.1. Population:

_ Population: 81,147,265 (July 2013 est.)

_ Population growth rate: -0.19% (2013 est.)

_ Gender: The ratio between male and female at birth is 1.06 male(s)/female

_ Age:

o 0-14 years: 13.1% (male 5,435,658/female 5,155,065)

o 15-24 years: 10.8% (male 4,457,412/female 4,267,366)

o 25-54 years: 42% (male 17,268,604/female 16,786,146)

o 55-64 years: 13.3% (male 5,354,690/female 5,469,884)

o 65 years and over: 20.9% (male 7,360,711/female 9,591,729) (2013 est.)

2.1.2. GDP

_ GDP: showed on this table:

_ Date _ GDP € Mill. _ Quarterly

Change

Ann ual Cha nge

_ Date _ GDP € Mill. _ Quarterly

Change

Ann ual Cha nge

-%

2.1.3. Income:

Income, easily know that is money for improving life Higher income means higher living standards

o Income: the average rate is 28 799 USD a year (2013)

o Employment rate of the age of 15-64 is 73% ( it means that people have paid job from

15-64 years old)

 81% of people saying they have more positive experiences in an average day (feelings

of rest, pride in accomplishment, enjoyment, etc) than negative ones (pain, worry, sadness, boredom) (According to OECD report, 2013)

 Germans have an income level higher

2.1.4. Trading environment:

Germany has a freedom of economy

2.1.5. Inflation rate – Exchange rate:

_ Inflation: 1.34%

_ Interest rate: 0.25%

_ Exchange rate: 1.37 in February from 1.35 in January of 2014

2.1.6. Infrastructure:

Germany is ranked at Top 2 of World's Top-Ranked Infrastructure

The port of Hamburg is the second largest container port in Europe as the same as the car port Bremerhaven is also the largest one in Europe, and Duisburg is largest inland port, too

Besides, the Frank airport is ranked in the world and the ninth largest one The

highway system can get the fastest speed and it gets the 37,900 km of railway tracks

are nearly enough to go whole the globe while its high-speed railway network, with speeds of up to 300 km/h, this railway is the fourth largest one.

2.1.7. Level of urbanization:

_ Urban population: 74% of total population (2010)

_ Rate of urbanization: 0% annual rate of change (2010-15 est.)

2.1.8. Member of any international organization:

Germany is the member of these three organizations:

_ World Trade Organization (WTO)

_ European Unions (EU)

_ Organization for Economic Cooperation and Development (OECD)

2.1.9. Import tariff

_ Protectionist policy of EU although they have open economic policies

_ The German market is much formed by its product standards, known as DIN

(Deutsche Industry Norm) These standards with over 30 000 different norms are from the view of a foreigner seen as non-tariff barriers

2.1.10. Trade barriers:

Because Germany is a part of EU, it has an open market in country It means that there

is no trade barrier in Eurozone

2.2. Political – Legal Environment:

2.2.1. Political Environment:

After the Second World War, the Basic Law provided freedom and stability – albeit initially only for the Germans in the West of the nation that remained divided until 1990

Also, this law protects the human rights, the freedom of human In the Basic Law, ” Among other things, the other basic rights guarantee the freedom to act within the law, equality before the law, freedom of the press and media, freedom of association and protection of the family.”

Intellectual Property Rights in Germany

Registered trademarks are protected under the Trademark Act (Markengesetz) The trademark is a protected mark or name which a manufacturer or dealer uses to

differentiate his products from those of other suppliers In order to be protected, the trademark must be new and characteristically different in order to be entered in the

trademark register kept at the Patent and Trademark Office The trademark is

published by the Patent Office A registered trademark is protected for a period of ten years starting from the day after registration and can successively be extended by further ten year periods If the trademark is also to be protected outside the Federal Republic of Germany, it must be registered internationally In this case, the length of protection is ten or twenty years and can be extended

2.3. Cultural – Social Environment:

2.3.1. Cultural Environment:

2.3.1.1. Food culture

German cuisine varies from region to region The southern regions of Bavaria and Swabia, for instance, share a culinary culture with Switzerland and Austria Pork, beef, and poultry are the main varieties of meat consumed in Germany; pork is the most popular Organic food has gained a market share of around 3.0%, and this is predicted

to increase further

As a country with many immigrants, Germany has adopted many international dishes into its cuisine and daily eating habits Italian dishes like pizza and pasta, Turkish and Arab dishes like döner kebab and falafel, are well established, especially in bigger cities International burger chains, as well as Chinese and Greek restaurants, are

widespread Indian, Thai, Japanese, and other Asian cuisines have gained popularity in recent decades

Germans favor hearty meals including meat, such as pork, beef and poultry, in that order of popularity The average person in Germany consumes up to 72 pounds of meat a year

Although many Germans still eat a comparatively large amount of meat, most people now favor a more modern and healthy way of cooking Foreign cuisines have become

an integral part of the staple diet of most Germans, and Italian favorite like pizza and pasta are now as common in Germany as they are anywhere else Because of the many migrants from southern and central Europe some foreign cuisines are more readily available than others Most German towns, no matter how small, have an Italian

restaurant and ice cream parlour and a stall where Turkish specialities like Döner Kebab and Börek can be bought In bigger cities you will often see Greek and

Yugoslavian restaurants Asian food has also become very popular

The warm meal of the day is still often eaten at noon, though modern work routines seem to encourage assimilation to American patterns Large family meals are still common at noontime on Saturdays and Sundays These are often followed in mid-afternoon by Kaffee und Kuchen, the German version of tea time.

2.3.1.2. Popular culture

Germany is the largest music market in Europe, and it is ranked 3rd in the world There are many artists came from Germany such as Herbert Grönemeyer, Scorpions, Blind Guardian, Rammstein, Nena, Xavier Naidoo, Tokio Hotel and Modern Talking

German transferred its culture to many nations in the world, Beethoven was one of them and he had the largest fame that the world recognized

2.3.1.3. Religion

From the chart, the Christianity got 66%, this religion is the largest one in Germany Besides, the Islam only had 2% and Buddhism got 1% The second place is non- religious people, Germany has a lot of “free” people, it means that

they don’t believe in any religion

With the affection by the European culture, Germany is a modern society with open-minded Almost people live under the high standard living, they enjoy their life, they are educated at high levels There are more and more immigrants come to Germany

Not at all, the living in Germany is made sure with the high security The adults can receive welfare-state social systems in Germany, they can be supported by the health-care service and protect the children with the highest education supporting

2.4. Natural- Technological Environment:

2.4.1. Natural Environment:

2.4.1.1. Geography: