PHÁT TRIỂN CHIẾN lược MARKETING CHO NHÀ HÀNG cơm VIỆT tại CÔNG TY TNHH TM DV và DU LỊCH TRẦN GIA e

The research has applied theoretical basis to conduct a profound analysis and developmarketing strategy for Viet restaurant at Tran Gia Travel Services Trading Co., Ltd.. Thesis structur

PHÁT TRIỂN CHIẾN LƯỢC MARKETING CHO NHÀ HÀNG CƠM VIỆT TẠI CÔNG TY TNHH TM-DV VÀ DU LỊCH TRẦN GIA

DEVELOPING A MARKETING STRATEGY FOR VIET

RESTAURANT AT TRAN GIA COMPANY

TABLE OF CONTENTS

LIST OF ACRONYMS vii

LIST OF FIGURES viii

LIST OF TABLES ix

ACKNOWLEDGEMENTS iii

DECLARATION ii

CHAPTER 1: THEORETICAL BASIS 4

1.1 Marketing Strategy 4

1.1.1 Marketing Basis 4

1.1.2 The essence of marketing strategy: 5

1.1.3 Marketing strategy characteristics 5

1.2 The process of developing a marketing strategy: 6

1.3 Marketing Mix strategy 8

1.3.1 General basis of Marketing Mix system: 8

1.3.1.1 General basis of Marketing Mix: 8

1.3.1.2 Marketing Mix system in restaurants: 8

1.3.1.3 Roles of Marketing Mix in restaurants: 9

1.3.1.4 Market Segmentation: 10

1.3.1.5 Selecting targeted market 11

1.3.1.6 Positioning on the targeted market 12

1.3.1.7 Product 13

1.3.1.8 Price policy 13

1.3.1.9 Place policy 15

1.3.1.10 Promotion policy 16

1.3.2 Additional components of the Marketing Mix: 18

1.3.2.1 People policy 18

1.3.2.2 Physical evidence policy 19

1.3.2.3 Process policy 20

1.4 Analytical tools: 21

1.5 Research methodology: 21

1.5.1 Selection of research methodology: 21

1.5.2 Research object: 21

1.5.3 Research content: 23

1.5.4 Data collection method and result analysis method 23

1.5.4.1 Data collection method 23

1.5.4.2 Result analysis method: 23

1.5.5 Research agenda 23

1.5.6 Accuracy and reliably of data: 24

CHAPTER 2: VIET RESTAURANT PROJECT OF TRAN GIA COMPANY AND REAL SITUATION OF MARKETING STRATEGY DEVELOPMENT 26 2.1 General introduction about company 26

2.1.1 History and development 26

2.1.2 Vision and mission 27

2.1.2.1 Vision 27

2.1.2.2 Mission 28

2.1.3 Target customers 28

2.2 Strategy for Viet restaurant 28

2.2.1 Viet restaurant: mission and goals 28

2.2.1.1 Mission and goals 28

2.2.1.2 Description of products and service 28

2.2.2 Market segmentation 29

2.2.2.1 Market segmentation: 29

2.2.2.2 BCG matrix 31

2.2.3 Prediction of market scale and prospect: 34

2.2.3.1 Linh Dam Peninsula overview: 34

2.2.3.2 Viet restaurant in Linh Dam Peninsula: 34

2.2.4 SWOT Analysis: 35

2.2.4.1 Strength 35

2.2.4.2 Weakness 36

2.2.4.3 Opportunity 36

2.2.4.4 Threats 36

2.2.5 Analysis of the competitive environment 37

2.2.5.1 Macro-environment 37

2.2.5.2 Micro elements 39

2.2.6 Strategy Marketing Mix Analysis of Viet restaurant 42

2.2.6.1 Product policy 42

2.2.6.2 Price policy 44

2.2.6.3 Place Policy 46

2.2.6.4 Promotion strategy 46

2.2.6.5 Additional components of Marketing Mix 48

2.3 Conclusion of Chapter 2 49

Chapter 3: SOLUTIONS, MARKETING PLAN PROPOSED FOR VIET RESTAURANT 51

3.1 Marketing Mix Strategy recommendation for Viet restaurant 51

3.2 Proposal of Marketing Implementation Plan 53

iii

3.2.1 Product policy 53

3.2.2 Price policy 56

3.2.3 Place policy 59

3.2.4 Promotion policy 59

3.3 Other recommendation 61

3.3.1 People policy 61

3.3.2 Physical evidence policy 62

3.4 Physical recommendations 62

3.5 Chapter Conclusion 63

1 Contributions and limitations of research: 64

1.1 Contributions 64

1.2 Limitations 64

2 Lessons drawn from the research 65

3 Conclusion 65

REFERENCES 67

APPENDIX 67

LIST OF ACRONYMS

v

LIST OF FIGURES

Figure 1-1: Core basis of Marketing: 4

Figure 1-2: The process of developing a marketing strategy 6

Figure 2-1: Customer care for the restaurant location 30

Figure 2-2: BCG Matrix 32

Figure 2-3: Eating in a restaurant rate 35

Figure 2-4: Consumer Price Index 9/2013 compared to other period (unit: %) 38

Figure 2-5: Interest in food derived from flowers 43

Figure 2-6: Customers’ health demand (unit: %) 43

Figure 2-7: Average cost for a meal per person 45

Figure 2-8: Means of media most influenced on customers 47

Figure 2-9: Other factors concerned by customers 48

Figure 2-10: Customer’s requirements for staffs 49

LIST OF TABLES

Table 1-1 :Influence of customer to service provision……….………… 19

Table 3-1: Starters 54

Table 3-2: Set of rice 54

Table 3-3: Main dishes 55

Table 3-4: Desserts 56

Table 3-5 : Price list for starters 57

Table 3 -6: Price list for Rice Set 57

Table 3-7: Price list for main dishes 58

Table 3-8: Price list for Desserts 59

vii

1 Introduction.

In times of open and integration with the region and the world, restaurant andfood catering services industry in Vietnam has seen many remarkable changes.Restaurant system has made progressive advances However, it is still anuncomfortable fact that Vietnamese’ habit of using dining services and daily foodproducts is not appropriate and not hygienic Besides, fierce competition amongrestaurants, sidewalk food stall and beer restaurant has led to the situation of customerscrambling, price increasing and food quality reduced In addition, there are restaurantswhich spend huge investment in brand promotion yet neglect of Vietnamese cuisine’score values

With a population of over 80 million (chinhphu.vn), Vietnam ranks 15th amongcountries with largest population in the world Also, national living standard ofVietnamese is increasingly improved thanks to with the growing economy Nowadays,holding a family dinner, company dinner parties, or a luxury wedding with Vietnamesetraditional style is not out of the reach to many people Thus, the ambition of gettingrich from restaurant business starts to sparkle in many people’s minds

Moreover, if a company wants to stay competitive, managing financialcapability, production and technology is not enough It should also handle mattersconcerning proper management and maximizing the effectiveness of Marketing Mix.For companies in service industry, Marketing Mix system is particularly moreimportant

In a desire to improve restaurant operation, satisfy customer demand and

enhance its competitiveness, the topic: “Developing a Marketing Strategy for Viet

restaurant at TRAN GIA COMPANY” has been chosen.

2 Research objectives

Based on marketing theories & knowledge and a scientific approach of researchmethodology, the thesis aims to systematize theoretical basis on strategic marketingand marketing mix

The research has applied theoretical basis to conduct a profound analysis and developmarketing strategy for Viet restaurant at Tran Gia Travel Services Trading Co., Ltd

In addition, the thesis proposes a realistic and feasible marketing strategy and an actionplan to effectively implement marketing strategies for Viet restaurant at Tran GiaCompany

3 Research study and research scope

Research study: The thesis focuses on researching and developing marketingstrategy for Viet restaurant at Tran Gia Travel Services Trading Co., Ltd

Next, the author applied quantitative analysis through primary data sources Theauthor conducted questionnaires survey with a sample size of 50 Participants wereasked about their assessments and comments on marketing strategy of Viet restaurantThe author used qualitative analysis on content of individual interview to obtainnecessary information to develop marketing strategy for Com Viet restaurant

5 Thesis structure

Besides the introduction, tables, illustrated models, conclusion and references,thesis content is structured into three chapters as follows:

Chapter 1: Theoretical basis

Chapter 2: Viet restaurant at Tran Gia Travel Services Trading Company limitedand real situation of developing marketing strategy

2

Chapter 3: Proposal of Marketing Strategies and Marketing Plan for Vietrestaurant

CHAPTER 1: THEORETICAL BASIS 1.1 Marketing Strategy

1.1.1 Marketing Basis

According to Philip Kotler (2008), " Marketing is a social process by which individuals and groups obtain what they need and want through creating, offering, and exchanging products and services of value freely with others” The core concept

concerns about the: needs, wants, demands, products, customer value and satisfaction,transactions, market, marketing

In modern view of marketing, marketing is defined as follows: "Marketing is theprocess of working with the market to carry out exchanges in order to satisfy the needsand desires of human being It is also understood that Marketing is a form of humanactivity (including organizations) in order to satisfy the needs and wants throughexchange "(Tran Minh Dao, 2006)

Figure 1-1: Core basis of Marketing:

(Source: Philip Kotler, 2008)

Need: is a psychological condition when people feel deprived, want to consume, own a

good or service

Desire: is a special form of need which is corresponding to the level of culture and

personality of the individual

Demand: is need with accompanying condition of payment capability.

4

Product

Satisfied expense value

Satisfied expense value

Marketing

Market

Exchange transaction, relationship

Exchange transaction, relationship

Product: is all that can satisfy desire or demand and is supplied in the market with the

purpose of attracting attention, purchasing or consuming

The value of the consumer: is represented by the formula:

V = B / P

In which:

V: value of the consumer

B: Consumer’s aware behavior

P: Product’s value

Transaction: is a trading exchange of valuables between two parties

Market: is understood as an open system in which there are presence of buyers, sellers,

and intermediaries to promote integration and implementation of the exchange ofmoney - goods to meet its needs

Marketing: is human activity aimed at satisfying the needs and desires through

exchange

1.1.2 The essence of marketing strategy:

Marketing strategy shows capability level, league and competitive position ofcompanies in the market

When developing a marketing strategy, companies need to analyze theirsituation including individual and organization’s capability, goals and surplus value toindividuals/groups/society This analysis aims to understand the opportunities andchallenges that subjective and objective circumstances are bringing to the business.Also, a general study of the company should be done to understand the company’sstrengths and weaknesses A good marketing strategy should point out clearly how toutilize opportunities with strengths, restrain threats and overcome weakness Therefore,

it is analyzing competitive position of the businesses that contributes to make a goodmarketing strategy

1.1.3 Marketing strategy characteristics

Consistency: marketing strategy must be consistent with general developmenttrend of the enterprise and is the orientation for overall operation of the company

Marketing strategy must go in line with the development trend of the market

1.2 The process of developing a marketing strategy:

In International Conference on “Marketing for new era” hosted by educationalPACE consortium in 2007 in Ho Chi Minh City, Vietnamese entrepreneurs had thechance to listen and learn so much from the father of the modern marketing theory.Quotes from his speech:

- Let's focus on clients first, employees next, thirdly partners and finally competitors.

- Do not think that marketing is just about advertising and sales.

- Use your market research to orient marketing strategy in long term.

- Focus on a market niche where you can provide a higher value through differentiation and appropriateness.

- Avoid price deduction to protect market share It is better to increase benefits for the customer instead of discounts.

In theory, marketing strategy presents the first overview of various marketingelements and how to utilize to achieve marketing goals

The figure below shows clearly some important points when developingmarketing strategy

Figure 1-2: The process of developing a marketing strategy

6

(Source: Tran Minh Dao (2009)

Implementatio

n and testing

Conduct a strategic marketing plan as proposed, at the same time, always keep track of market developments to be able to make adjustments promptly and reasonably

1.3 Marketing Mix strategy

1.3.1 General basis of Marketing Mix system:

According to Philip Kotler (2007), "A Marketing mix is the mixture of controllable marketing variables that the firm uses to pursue the sought level of sales

in the target market”

Marketing Mix includes everything that a company can use to influence on thedemand for their goods Marketing mix includes five tactical marketing tools: product,price, place, promotion and people, and in some cases there is additional components,which are people, process and physical evidence

Figure 1-3: Marketing Mix

(Source: Philip Kotler, 2007)

1.3.1.2. Marketing Mix system in restaurants:

Regarding business operation in general and restaurant business in particular,marketing mix strategy system shows the relationship between companies and businessenvironment, market, customers and competitors It includes specific strategies fortargeted markets, for Marketing Mix and marketing costs

From above point of view, we can generalize and systematize StrategicMarketing Mix system as follows: marketing strategy of a company is required to cover

8

Marketing Mix

Product

Price

Place Promotion

People

entire targeted markets of the business For each targeted market segment, an effectiveMarketing Mix strategy can developed by changing the combination of 7P (Price,Place, Produce, Promotion, People, Physical Evidence, Process) to match with thefluctuation and actual circumstances in each targeted market

1.3.1.3 Roles of Marketing Mix in restaurants:

Like many other businesses, restaurants also have to choose and solve basiceconomic problems of restaurant operation

It is necessary to identify the types of products and services that restaurants shallsupply to the market Marketing department will help restaurant owners solve thisproblem by conducting market research which might comprises of the followingactivities: collect market information, study consumer behavior i.e how customers useproducts/services and select restaurants, identify needs for products and services ofindividual and business customers as well as their changing trends, find out aboutproducts and services which are available in the market etc

• Organize the process of supplying products and services

• Handle harmoniously relationships between customer benefits, restaurant staffsand owner’s interest

Marketing becomes the bridge between restaurants and the market

• Marketing helps restaurant owners recognize market factors, customer needs, andits fluctuation

• Marketing helps restaurant owners orient and coordinate activities of alldepartments and all staffs restaurant to better meet customer needs

Marketing contributes to the competitive position of the restaurant

To create competitive position, marketing department of the restaurant shouldfocus on solving major problems:

• It must create the uniqueness of products and services

• It must clarify the importance and advantages of the difference to customers throughcampaigns, advertising

• Ability to maintain the advantage of the difference

Market segmentation is the division of the overall market into smaller marketsegments Each segment has different aspects, but customers in the same market

segment are relatively homogenous in interests, tastes, purchasing behavior, andeconomic capability

Nowadays, as the economy develops, human being’s requirements areincreasingly diverse A single good or service can not satisfy the needs of everyone Ifthe enterprise wants to develop, it need to choose one or a few particular marketsegments, research customer needs in that segment and design their products to meetthose customer needs

According to Philip Kotler (2008) the market can be segmented as follows:

• Market segmentation by geography: is dividing the market into

different geographical units such as nations, regions, provinces, cities, the companycan operate in one or a few geographical areas or all of these areas, but they need to payattention to the differences in the needs and preferences of each geographic region toprovide right product In restaurant industry, this kind of market segmentation is prettyclear For example, Asian restaurant serves Asian cuisine; targeted customers are fond

of Asian food

 Market segmentation by demography: A number of demographic

criterion must be included such as age, gender, family size, family life cycle, income,occupation, education, religion i.e These factors greatly influence the buying decisions

of customers For example, a high-income earner tends to eat in restaurants more thanthe middle and low income earners do Businessman will be likely to visit restaurantsmore frequently since they have to treat customer The marketer therefore needs tocarefully study demographic matters to design the product which suits with eachcustomer segment

 Market segmentation by psychology: The psychological factors include

lifestyle, personality and social class i.e upper class, lower upper class, middle class;lower middle class, upper lower class, the lower class The use of this criterion forsegmentation is very important Those in the upper class are likely to be interested inrestaurant with impeccable services and pay little attention to price, whereas those inthe lower middle class and lower class will pay much attention to price before theymake buying decision Those in the lower middle class and lower class are pricesensitive; a small change in price will make their buying decisions changed In

10

restaurant business, the restaurant develops appropriate policies depending on targetedaudience,

 Market segmentation by behavior: The behavioral factors include

reasons, benefits, user’s status, loyalty, ready stage, attitudes towards products.Thorough study of customer behavior is very important Marketing people should knowwhy customers come to the restaurant, why they choose this restaurant over otherrestaurants etc Those questions are important basis to better understand the needs ofcustomers so that better products which are appropriate for them will be created

Based on the above market segment criterion, the restaurant’s segmentationmethods are as follows: Firstly, one-phase method, the restaurant uses a single criterionfor initial segmentation Secondly, two-phase or more-than-two-phase segmentation,after selecting a criterion for fundamental segmentation, the restaurant will continue touse two or more criteria and other segment basis

In restaurant business, market is usually segmented into two or more phases Forexample, customers of Asian restaurant with Asian cuisine are mostly Asian It showsthat such restaurants did geographical segmentation Besides, food price of thatrestaurant is relatively high, aiming to serve high income earners The restaurant hasfollowed demographic segmentation method

1.3.1.5 Selecting targeted market

The segmentation process has presented the company with opportunities Afteranalyzing strengths and weaknesses in each of segment, the company must decide howmany phases to cover and what are the most appropriate one This is a matter ofselecting key market

To meet the market demand, according to Philip Kotler (2008), businesses canchoose one of three ways:

A: Irrespective Marketing

B: Distinguish Marketing

MarketCompany’s Marketing

Area 1Marketing Mix 1

Area 2Maketing Mix 2

C: Focusing Marketing.

Source : Philip Kotler (2008)

1.3.1.6 Positioning on the targeted market

When the company has decided to select a particular market segment, thecompany must also decide which position to occupy in that market segment Theposition of a product and service is determined by the level of customer recognitioncompared to peer products and services of other competitors Successful positioningwill make customers easily identify the difference, and they will see what they arelooking for It also allows businesses to exactly identify opportunities in the market.Marketing professionals can apply some of the following strategies:

• Positioning based on specific attributes of the product

• Positioning based on needs and interests

• Positioning for specific use

• Positioning on client type

• Positioning on other products

• Positioning by creating product differentiation

12

Area 3Marketing Mix 3

Area 1Area 2Marketing Mix

Area 3

1.3.1.7 Product

Product policy plays an important role in marketing strategy It is the orientationfor all business activities of the company To ensure effective operation, product policycan now be built based on following factors i.e business strategy and business plans ofthe company, market needs and the company’s capability

Product policy includes the following elements:

• Determine width: is the total number of product/service categories in theproduct/service portfolio of the enterprise

• Determine length: is the total number of products/services in each category

• Determine depth: is the level of specialization in each products/services inbusiness plan corresponding to different strategies

• Determine the level of homogeneity: is the closeness, unity, similarity amongproducts

• Development of new products: new product development is essential sincecustomers' needs are constantly changing, requiring companies to timelyrespond to such changes

Price is not the leading factor in competition, but it has always been considered

an important factor in attracting customers, especially in markets where residents havelow income In a competitive market, the restaurant must have appropriate pricingpolicy in order to create a firm position in the market Price policy is considered to bethe most effective in attracting customers, generating sales and determiningprofitability of the business The pricing will depend on the characteristics of targetedcustomers and time A number of restaurants have pricing policy, which is contingent

on seasons, holidays, and weekends For example, in the winter, when the restaurant isquiet, many restaurants will offer discount to attract customers As such, to build aneffective pricing policy, the company needs to obtain a complete overview and takesinto consideration following factors such as prices, exchange rates, discounts etc

Some goals when developing pricing policy:

 Maximize Profit: This target is usually set out with reputable large corporationswhich have good quality products and services The price is usually higher thanthe average of the same class

 Dominate the Market: In the early stages of market penetration, enterprises need

to secure a position, hence many choose to set prices equal to or lower than theaverage to approach market easier However, that price will change to ensurelong-term profitability

 Be leading in quality: For businesses that their quality of service has reachedprofessional level or unique peculiarities, the price is usually higher than theircompetitors in order to confirm product quality and corporate brand

 Skim pricing: when the enterprise releases a new product, it is priced high toskim off the lucrative part of the market, the price will be lowered later on

 Pricing with survival goals: When the competition is fierce, companies are introuble, or when the product is in saturation or in recession stage, companiesoften apply low-price policy to increase competitiveness and lengthen productlife cycle

Common pricing methods in restaurant business:

Figure 1- 4: Factors influencing pricing

Commercial pricing decisions

mại

giá thương mại

Source : Collected

Some pricing policies that the restaurant should notice:

 Competitive Pricing: The restaurant sets prices corresponding to the price of

competitors

 Target pricing: This method does not make sense in free competitive market.

The process begins with determining the desired profit earned when makinginvestment decisions Based on return on investment (ROI), the restaurant will

be able to perform financial calculations to determine the price

 Cost-plus pricing: This pricing method begins by estimating demand Based on

the estimates, average cost per unit is calculated Interest is added to the averagecost per unit of production and the total is the selling price shall be the sum ofaverage cost per unit and profit

Distribution strategy is the way companies provide its products and services tocustomers in targeted market It includes a combination of networks, distributionchannels;

Distribution strategy plays a highly important role in business operations, whichfacilitates the flow of products from producers to consumer For producers, the typeand number of intermediaries in the sale of products/services are the first factors thatneed consideration when developing distribution strategy

Depending on the form of market, product characteristics and customer demand,product prices, restaurants and food outlets can select and apply one of the followingthree strategies:

• Strong distribution strategy

• Selective distribution strategy

• Privilege strategy.

Issues related to the distribution operation in service:

• Standards achieved in service distribution: Accessibility, availability

• Important role of direct distribution in service

• Selecting distribution channels

• Strong distribution strategy

In service marketing, the role of direct distribution is important because:

• The particular nature of services is: inseparable, therefore it can not betransported; perishable (can not be withered, can not be put in storage),

• Improve media management capability with targeted customers: Due to directmarketing, restaurants have a direct relationship with customers, it is possible to buildcustomer database

• Improve service & customer care: direct marketing helps restaurants manage ,control directly on service delivery operations and direct relationship with customers

• It also helps to improve the reliability of consumption since customerconsumes products/services directly from the manufacturer

In current market mechanisms, promotion policy plays an important role Itincrease customer awareness of the company, remind customers of products/servicesand keeps customers updated about new products/services of the company

Figure 1-5 : Promotion goals

Develop positive attitude

Influence

Recognize brandProvide brand’s knowledge

cu

Establish visionary picture

Create differenceBuild trust

Advertisements

Sample development, trial use, promotion, displayPR

Persuasive advertisementPR

Individual sales

Source : Collected

To set up a media advertising strategies, the enterprise can apply a combination

of strategies such as offers, promotion, advertising, sales support, special promotion

On the other hand, it must identify the subject, content, form, facilities and budget forthat strategy In the strategy, following questions should be answered

- Who is the target?

- What does the content aim at?

- Which form will be chosen?

- Which media?

- When will it be launched?

- And finally, how much it should cost?

Each advertising strategy is aimed to attract customer's attention so they would

be interested and decide to purchase Besides, it also has to point out media channel andforms of advertising Advertising strategy should also include advertising content,advertising time, quality control and evaluation of advertising

In media advertising, it is necessary to pay attention to a number of factors that reducethe effectiveness:

 Give unrealistic commitments or exceed the capacity of providers

Encourage and maintain wants

Establish visionary picture

Create differenceBuild trust

Encourage consumption

Maintain purchasing behavior

Reinforce attitude and trust

Persuasive advertisementPR

Individual sales

Reminding advertisementDiscount promotionPR

 Do not understand or misunderstand the needs of customers.

 Lack of knowledge and customer service experience

 The coordination and consistency between staff of the supplier are not high

In addition, advertising strategies should determine advertising budget, a number ofmethods to determine are:

 Method of determining based on the percentage of the total sales

 Method of cooperation with the advertising agency

 Method of determining based on profit

1.3.2 Additional components of the Marketing Mix:

In any business, especially in restaurant business, people factor plays animportant role and determines the performance of the enterprise In the restaurantbusiness people factors include: employees and customers

Since people factor and people interaction play important roles in theconsumption and provision of service process, hence the socio-cultural factor isimportant in determining customer behavior and services supply Social and culturalfactors influence the way customers use and evaluate services, affects the way howcompanies and employees interact with their customers

The role of employees in service provision:

• Employees providing services are a part of the service

• Present the company's image in the eyes of customers

• Directly interact with customers

• Direct impact on the perception and satisfaction of the customers

• Create long-term and persistent relationships with customers

•Be the information channel, provide assessment for the process of providingservice internally

The role of the customer in the service providing process:

18

• Customers have a high level of participation in the process of creating anddistributing services: Because services can only be created with the appearance ofcustomer consumption, customers have the right to distribute their own services

• Individuals or group of customers can increase or decrease the impact ofsatisfaction level of the individual or other customer groups (the interaction ofthe two groups of customers)

Table 1-1: Influence of customers to service provision

The appearance (celebrities, familiars…)

Personal relationships (familiar,

Misbehavior

To survive and grow, any businesses, not just restaurant business, should alwayshave physical assets (product facilities) Business facilities includes all material means,database used to produce the entire products and services The investment on physicalassets reasonably can on one hand help the restaurant attract customers, is the tangiblecondition to help reduce risks for customers , customers will find a peace of mind usingthe products and services of the business On the other hand, modern physical product

is the condition to improve product quality as well as working conditions andproductivity of colleagues Technical infrastructure is critical conditions for businesses

to develop restaurant business

In the process of products and services consumption, customers always consumesimultaneously physical products and the feeling for tangible product quality alsoaffects the level of satisfaction with the services, tangible elements include:

• Infrastructure

• Features, design characteristics (luxury, matching lifestyle and status )

• Technologies and techniques (quick, convenient, high quality )

• Sense of art (eye catching, attractive )

• Culture (appropriate)

Service provision process to customers need standardization and always be flexibledepending on demand, situations The process steps are simple or complex willdepend on the level of participation in the processes of customers Each differententerprise and different business activities will have different processes of providingservices and the selection process depends on the owner of that business.

Figure 1-7: Marketing Mix Model

of the appeal), 5 forces (competitive environment analysis) to provide comprehensiveassessment and overall picture of the operational elements of the Marketing Mix in therestaurant

1.5 Research methodology:

1.5.1 Selection of research methodology:

To implement the project and answer research questions, first of all, the authorselected qualitative methods of analysis with data from primary sources The authorselection of primary data sources is to gather information directly to resolve the issues.Specifically, I surveyed 50 people in the region through predefined questionnaires so

20

that respondents can answer.

Also, the author uses methods of researching and analyzing data from secondarysources Through this approach, the authors based on the researchs, documentation ofprevious related issues to gather information for the purpose of research on theoreticalbasis and assessment and evaluation about problems related to research questions such

as the business environment in Vietnam, marketing, and systems of hotel food andbeverage restaurants Specifically, the authors studied on documents, regulations,reports, textbooks, references, and journals to learn about the orientation and policies ofthe government, learned about travel business, hotels, restaurants Thus, moreapproprate solutions can be given for companies

To complete the research, the author has incorporated simultaneously methods ofdata collecting as above to obtain the necessary information After determining theresearch methodology, the authors conducted the next step to present the informationcollected in details

1.5.2 Research object:

With research object, sampling was determined by selecting objects from manydifferent classes of the region The subject’s age was also considered when the authormade sample selection, it represents life experiences of the older and aspirations ofyoung people The author chose 4 main catergories of age as a basis for selection ofinterview subjects, they are at their 20-30, 30-40,40-50 and above 50

For more information about survey subjects, it is presented in the table below

(Appendix 1):

Male: 24, Female: 26

Age from 20-30: 19 people, 30-40 :16 people, 40-50 : 6 people, above 50 : 9people

1.5.3 Research content:

The table of content is designed to collect related information for the study

The detail of the survey is included at the Appendix

1.5.4 Data collection method and result analysis method

1.5.4.1 Data collection method

Information is collect by primary and secondary resource

22

To carry out the survey, at first, I try to make a friendly and close relationship tolet interviewees know the result of this survey only used for my study, not for otherpurposes.

About secondary resource, I search information through books, magazines,newspaper, internet and then sorted them all After sorting, I determined the issues ofrelated contents When reading, I marked and collected all necessary information forthis study One part of the information is quoted on the thesis, the others may besynthezised and anyalized to express the idea or show my personal opinion to therelevant problems About collecting company information, I myself is a staff at TranGia, thus I can access all kind of company information such as research, study,documents together with observation, which I included in my thesis those necessaryinformation and assessment

1.5.4.2 Result analysis method:

After collecting raw date, those would be transformed to be anwers for allquestions Transforming raw materials requires all information be edited and encoded

to use on the computer and SPSS software to be analyzied Each answer in thequestionaire in encoded suitable to the program requirement

1.5.5 Research agenda

After the outline is approved, the writer started to collect information andnecessary document to carry out the theatrical part to understand all related knowledge.This lasted 3 weeks Study and observation was implemented when I work in Tran Gia.After understanding and analasis information, I started to write the content Tocomplete the study, I chose 50 samples to carry out the survey and time for preparationand deploying was 02 weeks After getting the result, information was synthezied andanalyzed in 02 weeks While writing this thesis, I always kept in touch with mysupervisor to get the suggestions and advices My thesis is completed in 03 months

1.5.6 Accuracy and reliably of data:

My study was built on accurate and reliable information The result was based

on those evidence:

First of all, the researching model was analysed based on the fact and otherprevious research For example, Marketing theory was used in the research of Philip

Kotler in the Marketing Management published by Statistic Publisher; Basic Marketingpublished by Social&Labour Publishing house

Secondly, researching method was design suitable to my question and purpose

of my study, specifically I used table for interviewees to tick

Content of the tables was based on the previous research as well as assessment

of the specialists, my supervisors and other groups of interviewees to have someadjustment to get closer to the study purpose

Result analysis also help to ensure the accuracy of the study I kept analysizedall the data objectively and respect all interviewee’s answer

With all above analysis, all the results are objective and reliable The result will be

analysized more detail in the Chapter 2

24

re-The result achieved is optimal profit on the basis of the best satisfaction ofconsumer needs The essence of modern marketing is the consumer - oriented with theirrequirements and expectations, which requires companies to be loyal to the consumertheory and sovereignty The company itself can only reach the goals of the organization

on the basis of creating, maintaining and satisfy the desire of consumers with productsand services of the company

CHAPTER 2: VIET’S RESTAURANT PROJECT OF TRAN GIA COMPANY AND REAL SITUATION OF MARKETING STRATEGY DEVELOPMENT

2.1 General introduction about company

1.5.7 History and development

We are living in the world of beautiful wonders which are waiting to bediscovered: spectacular waterfall full of white foam, terraced fields in the sunlight, theislands lie in the great blue sea, splendid cites and long lasting structures around theworld With a desire to take visitors to all parts of the world and experience strangefeelings, in 2009, Tran Gia Travel Services Trading Company Limited was established

At the beginning, Tran Gia was a travel business with limited staff and registeredcapital was only 1 billion VND After 4 years of developing, Tran Gia has become astrong multi-industry business Together with attracting visitors to Vietnam and otherASEAN countries, the company also has organized high quality tours for Vietnamesecustomers and customers in the South East Asia countries to travel around the world

Having trust of many domestic and foreign customers, Tran Gia successfullyorganized travelling tours or combined tours with meetings, conferences, groupactivities for many companies and groups to many beautiful places in Vietnam i.e.Phan Thiet, Nha Trang, Da Lat, Da Nang, Ha Noi, Ha Long or go abroad to Thailand,Singapore, Malaysia, China etc

Particularly, Tran Gia gains total trust from other big companies in Ha Noi toorganize travelling tours combined with conference, workshops, shopping tours torelatively difficult markets… Those successes make customers have more trust andinterest to Tran Gia

Together with developing the business, Tran Gia also pays attention to build astrong team of staff with love working attitude and bring best service to customers Followings are company information:

26

 Vietnamese name: Công ty TNHH TM - DV và Du lịch Trần Gia

 English name: Tran Gia travel services trading Company Limited

 Company Abbreviation: Tran Gia TST Co.LTD

 Head office: No7 Hang Dau –Dong Xuan ward- Hoàn Kiếm district –Ha Noi

 Business license: No 010241520 by Hanoi Authority for Planning andInvestment 9/9/2009

 Supporting service to promote and organize travel tour

 Hotel, restaurant and mobile food service

 Provide food catering according to occasional contracts

 Car rentals

 Transportation business by: fixed and customized itinerary, transportgoods and tourists

 Travel business

Source: Company’s document

1.5.8 Vision and mission

To become a strong, trusted and professional brand; striving to become one ofthe best travel businesses, leading tour operators in the area; becoming amultidisciplinary business, major of which is investing, developing travel type andprofessional travel products

1.6 Strategy for Viet restaurant

1.6.1 Viet restaurant: mission and goals

Viet restaurant is a whole new project of Tran Gia TST Co.Ltd With the goal ofbecoming a leading company in the field of serving Vietnamese traditional meals tocustomers through out friendly service, qualified cuisines with high quality and foodsafety combining fresh atmosphere, which brings cozy feeling to all customer, Vietrestaurant always makes efforts to build an outstanding care, bringing high qualityproducts and service, commit to continuously innovate to meet the high demand ofcustomers

1.6.1.2 Description of products and service

In the modern society, people’s needs are not only food, clothing, housing, butqualified healthy food; beautiful, feshionable, comfortable clothes That’s why there aremore and more coming products and services to meet the various demands ofcustomers

Consequently, eating, one of the pressing daily needs of people, has beenfocusedly operated Today, from restaurants, food court with big investment to thesmall bars, fast food stores, canned drink producing companies owners have the samepurposes to satisfy human demand for food Especially, people now are having moreconcern to food which derived from nature because they take more care of their health.Among those kind of food, people often like flowers and food processed from flowers

Long time ago, people already knew that flowers was a natural nutrious food andvery good for health Besides, flowers have a special flavour and easily attractingpeople, thus, they are more and more popular in the daily culinary life, not only aornament or gift To medical scientist, flowers contain a lot of protein and amino acidsessential for human body In addition, flowers also have many kinds of vitamins (A, B,

28

C, D, E ) and antibiotics, micronutrients necessary for the development of the body.Morevoer, flowers is nutrious food but does not cause arteries hardening and increasing

cholesterol level in blood like other food from animals (Vietbao.vn)

Besides, the information analysis about cuisine market let us know that Hanoihas an exciting cuisine market Because of that, we try our best to use our saving andknowledge to build a restaurant providing food originated from flowers Our restaurantnot only meet the food demands of customers, but also delves into a new aspect ofcuisine, specialize in a nutrious food With the high quality cooks, restaurant have somecompetitive advantages in the culinary market in Hanoi

With that guideline, Viet restaurant not only meet the demands of customers butalso bring them a core value “Family and health”

The restaurant was design according to Vietnamese family, which brings a cozyfeeling and space The restaurant can take the sun lights during the whole day andgathers table for the family with 3 generations or 4 generations in the evening.Therefore, it is a must that the restaurant have a menu which is closed to the family andmake sure that it is suitable for people with stable income but do not have much time togather all member together

The beauty in culinary culture of Viet Nam dated back to the hallmark of wetrice agriculture In all the traditional activities, meetings or parties, the menu can notexclude rice We have some proverbs about rice such as we can not live without rice,whenever you are hungry, you may want to have meat or other kind of food, butwhenever you are full of rice, you do not want to eat anything else Actually,agricultural culture controls the meal portion, which vegetable is more prior Because

of that, Viet restaurant always focus on rice and flowers to be the base of a good mealand that is full enough for customers with purpose “For the public health” and theguideline “Vietnamese rice, Vietnamese family rice”

1.6.2 Market segmentation

1.6.2.1 Market segmentation:

After doing survey with 50 people, we realized that 27 people (account for 54%

of the participants) totally care about the restaurant location It means that convenientlocation of a restaurant plays a very important role A suitable location, which is

convenient to all kind of transportation, will make it much easier for the restaurant to bepromoted and easier for customers to come.

Figure 2-2: Customer care for the restaurant location

10.00%

36.00%

Care Totally care

Source: Writer’s survey

Based on the survey result, Viet restaurant owners decided to build therestaurant on Nguyen Huu Tho Street, the main street leading to Linh Dam peninsula.Being a traditional restaurant is a huge advantage of Viet restaurant because most of theremaining restaurants in the local area are beer store or bistro: Van Dinh duck, HaiXom beer…

Located in the new urban areas, the targeted market that the restaurant focuses

on is local people, people from the neighborhood Here are reasons to choose targetmarket:

 Market segmentation by geography: Viet chooses a stable way by opening

restaurant in Linh Dam Peninsula region As a new urban area, after more than

10 year developing, Linh Dam has become more and more occupied withcrowded residents and stable cost of living Besides, Nguyen Huu Tho Street isone of the main street linking Linh Dam to other urban area such as Dinh Congurban area, Ta Thanh Oai urban area… With a special location and local peoplecondition, Viet restaurant promises a brighter future

 Market segmentation by demography:

30

o Categorized by age: Focus on the age from 30 and above Viet restaurantfocuses on this segment As a normal psychological behavior, people over 30are afraid to change They desire something familiar and sometimesnostalgic

o Categorized by income: Most of the restaurant is at normal price (around200.000 VND for 4 people), which is suitable to most of families who aregovernment officials and officers Besides families with average income areregular customers, foreign tourists or staff of other companies might also befrequent customers of Viet restaurant

o Categorized by occupation: Viet restaurant focuses on family living in thecity with main income from administrative agency, small company, officesetc

 Market segmentation by psychology: Although Vietnam opened its economy

in 1986 and today, the trend of globalization and integration has developedstrongly not only in economical term but also in social culture Cuisine also has

to change to adapt to the new trends The development of market economy in theintegration period has led to industrialized lifestyle, fast food shops springing uplike KFC, Lotteria, Buger King etc However, most of the targeted customersthat the restaurant aims at were born before 1986, and now they are over 30s

1.6.2.2 BCG matrix

Matrix BCG considers two factors: the market growth and market share of thebusiness in their respective markets thereby help businesses determine the productposition in the market to make strategic decision

The matrix consists of two axes:

- The horizontal axis: Indicates the relative market share of the company

compared to top competitors in each industry The middle point of the horizontalaxis located at 15% represents the SBU (strategy) account for average marketshare of the leading company

- The vertical axis: Indicate percentage of annual sales growth of each industry

(market growth ability) The middle point of the vertical axis is located at 10%means that if the growth rate is over 10%, it is considered high rate, and if it isbelow 10%, it should be low

Figure 2-2: BCG Matrix

Source: Marketingchienluoc.com

Lion position: In this position, products of the enterprise accounts for small

share in an attractive market (high growth) At this position, strategic orientation of theenterprise is to find the way to improve market share, it means if move to the “starposition”, business must innovate products, service or focus on investment to enhancecompetitive capability of the product in the market

Dog position: In this position, products only account for a small market share

and the market is already saturated and has no improvement Companies are advised toexit the market because of low turnover and no additional development prospectswhereas the cost to maintain production is not small at all Stopping an ineffectiveproduct to invest into more potential ones can make higher profit and enhance thecompany position in the future However, in some cases, products only account for asmall market share in an unpromising market, but it has big effect to other products ofthe company In this case, companies accept to extract profit from strong products tosupport weak products in difficult position but essential in the market

Cow position: Market share is high in a saturated market Strategic orientation

for this product often enlists profits, no additional investment

Star position: This is position of the strong business, leading in a potential

market Orientation strategy is to remain the position by innovating products and

32

HIGH

HIGH LOW

LOW

MARKET SHARE MARKET

GROWTH