With the successful growth of TSR in their domestic markets, they plan to spread the culture f the Malaysian way of life Into the Indonesia market 2007, followed by Australia, Singapore and other Aslant countries. Their slogan Is Began Sadder Nasal Maya: (Not just Chicken Rice) in Malay and "Chicken Rice and More" in English. With the similarities in traditional culture and taste of food, Vietnam is an actual potential market. As a business in Vietnam market, it is important for TSR to have a marketing mind-set.
Thus, this report aims at recommending an overall marketing approach for this company in a sensitive market - Vietnam. REPORT l. The various elements of marketing process needed to be considered by The Chicken Rice Shop (TSR) to penetrate Into Viet Name Marketing concept Is the philosophy that companies should analyses what their customers need and want and then make decisions to get more customers' satisfaction than the competitors. There are three elements of marketing concept that should be incorporated into the profit orientation.
Customer orientation is an essential element of marketing concept that businesses have pay attention specially to gain long-term profits from the customers. In order to gain profit, business must put satisfactory of customers at the height. More specific, these are the needs and wants of customers. With the trend in now, a business should do more research and analysis market before beginning business that belong to the requirement of customers more than goods (in this case is food, drink, ) and then try to find market to consume for these goods.
In case of TSR, they have to focus on this element as well because Vietnamese market doesn't like other market. In Vietnam, chicken dishes are very popular (including family meals, fast food and restaurant) and with the tradition of Vietnamese people, they like to group up and dine together. Thus, a chain of fast food about chicken rice as TSR is not easy to business. A symbolic example is KEF, after the time they dominated Vietnamese market, Vietnamese people now are not prefer KEF food because of bad effect to heath of their food. On one hand, actually they really want to eat Tact's foods.
On the other hands, they worry about their health because these foods have too much oil. Beside, TSR should care about the quality of material food such as rice, chicken, others vegetable... Etc. So, if TSR can't find any solutions to fix this problem, the foods of TSR can be no longer belong to favorite foods of buyer. The buyer will find other foods of other companies that are not only more guaranteed bout quality but also more popular with them. The second element is coordination of market led activities. This element means that companies or organizations coordinate many ways to promote their products.
A company should have some kinds of market led activities to ensure that almost people in market that the company is working know about its products. In Malaysia, TSR have done very good this work. They create a good brand about fast food, which is delicious and also healthy (this is different with others fast food which Just fast but not good). TSR is located in usually us crowded places like shopping centers, malls and some busy streets of the cities. TSR and kiosks concept of business set-up is modern, creative and attractive.
Moreover, they build up a good website to advertise about them, in which, they publish their foods, the locations and have online-customer feedback. When logging in this website, the customer easily to be attracted by color, music and presenting. The final element is profit orientation. It can be called the destination of a company. In order to exist for a long time, companies and organizations must concentrate on long-term profit. When expanding market in Vietnam, TSR has to discover eating behaviors of Vietnamese such as where do Vietnamese want to eat, which kinds of food Vietnamese would like to eat, etc.
From this, TSR can build some restaurants or kiosks in central of crowded cities like Hanoi, Ad Nag and Ho Chi Mini City especially in supermarket such as Metro supermarket, Big C supermarket. Not only produce foods for Vietnamese, TSR can also develop some kinds of food that are suitable for foreign tourism because Vietnam is become a place that attract overseas people. For example, the Muslims tourism always complains about the taste of food to suitable with them (because of some rule of this region), while TSR is consistent with them.
It seems to the good advantage of TSR in Vietnam market. If it was real, the long-term profit of TSR could be guaranteed and the brand of them also would of marketing concept, their goals and missions can be completed easily. Moreover, TSR can understand needs and wants of Vietnamese customers more clearly. II. The benefits and costs of a marketing approach for Chicken Rice Shop Vietnam becomes a potential market for every foreign company to invest in since being a member of World Trade Organization (WTFO) in 2006.
Furthermore, people have tendency like foreign brands more than domestic productions because the income of native has been increasing by the time Therefore, TSR should have detail plans and strategies from beginning approach to Vietnam to operating and developing the business. There are three main characteristics of a market orientated organization for today's modern businesses that are related to TSR: Product orientation Sales orientation Marketing orientation Firstly, product orientation is the process that businesses focus on price and quality of product.
Producing good products and publish on market with a reasonable price ill help the business increase the number of customer. In order to get this thing, product of TSR need to satisfy two principles. First are those foods had to be suitable with Vietnamese flavor and guarantee about the quality. However, with many options such as Haines Curry Chicken, Spicy Mixed Vegetables, Hong Kong Beef Stew, customer can have many choices and also each food still has an individual brand for itself. However, these foods need to be guaranteed about quality such as enough nutriment and no poison.
In addition, TSR should create more new food and refreshed menu regularly. Second is the price of products must to be suitable with Vietnamese people. Because raw material prices in Vietnam is quite cheap so TSR completely can sell their products at lower prices in Malaysia and Singapore. Secondly, sales orientation is the process that a business satisfies the requirements customer that helps them evaluate the company's products which are related with the consumption or not. After beginning to consume goods, TSR should continuously keep in touch with its customers who brought its products by promotion services for the next time.
Keeping Vietnamese customers, making them come back ND buy more from their shop is the key of success of TSR. However, TSR have to analysis carefully the number of products that Vietnam market can consume, avoid the situation of producing too much unnecessary goods. The final process is marketing orientation which defines the mission of business: decide value, wish for market requirements. In order to access this market, TSR has to collect and update information about the customers' needs and wants.
Put another way, in order to compete, TSR also needs to be more sensitive to their customers' needs otherwise they will lose sales to their rivals. Another important process for TSR in is R&D (Research and Development). It illustrates that TSR must make the actual survey that their food is suitable with customers in Vietnam and then maybe changes production to satisfy them. Ill. The macro and micro environment factors which influence marketing decisions affecting Chicken Rice Shop Having a general view in term of macro and micro environmental factors is always important for every company. The chicken rice shop" is not an exception. The macro factors are presented through the form of PEST which includes Political, Economic, Social-cultural and Technological, while the micro factors notation Strength, Weakness, Opportunity and Threat (SOOT). 1 . The macro environment Major external and uncontrollable factors that influence an organization's decision making, and affect its performance and strategies. These factors include the economic, demographics, legal, political, and social conditions, technological changes, and natural forces.
Generally, the macro environment factors are analyses under PEST formula (Politics, Economics, Society and Technology). A. Politics There are some polities that TSR have to offer when open a branch in Vietnam. It includes: Tax policy Employment laws Administrative procedures Protecting intellectual property Vietnam has the rate of tax quite high in Southeast Asia area. Like every foreign companies which import into Vietnam in order to operating business, TSR must follow the Vietnamese corporate tax.
So if they want to make profit, TSR need calculating this sector carefully and also try to maximum the interest. Secondly, the laws in Vietnam, employers have right to require a wage that suitable with amount of working hour. In specific, it means that employers can suggest a higher salary if they work overtime. Moreover, in insurance policies areas, they will be pay 15% amount of money that pays for employer's insurance and many other kinds of insurance. Opening a new business in Vietnam market, in the last few years, met many problems because of the bias in administrative producers.
However, this problem now has been improved by some new policies of Vietnamese government. According to these policies, some administrative procedures has been cut down and Vietnamese government encourage foreign companies invest on Vietnam market. Besides, TSR can have many advantages when both Malaysia (mother country) and Vietnam is member of some organization such as SEAN or WTFO, which encourage he business activity between two countries. Last but not least, protecting intellectual property in Vietnam now is too complicated. It is too strict in some step but too loose in others.
Hence, TSR should keep their brand which they still hold and also research more about other brand in same areas. In my opinion, with the bureaucracy in Vietnam, a foreign company can meet loads of difficult even punishment if they not obey to the Vietnamese protecting intellectual property. To sum up, TSR can be easy to penetrate in Vietnamese market but they need to face with many problems if they want to survive in here. B. Economics There are several aspects about economic factor that we need to mention: Gross Domestic Products (GAP) Growth Year 2009 2010 2011 GAP growth 6. 2% 5. % 6. 3% The GAP growth index of Vietnam in last 3 years can reflex the real that this country develops quite fast and stable. It means the standard quality in Vietnam is higher than before and the needs and wants of Vietnamese people now are also changing. For example, they are not only eating to fulfill stomach, they also want delicious meals with a good-view restaurant. Therefore, with a unique fast food, TSR have the opportunity to expand in Vietnam market. However, they need to face with high interest rate and high inflation which can affect to the price of goods and their cash flow.
Exchange rate between currency unit of a country to the one of another country is the problem that many companies across and beyond country care about because it influent directly company's interest. In fact, the exchange rate between MYRA and VEND is high. It means the price of food can be pushing in too high if TSR import the material or machine from Malaysia or Singapore. Moreover, it seems too hard for TSR to compete with other famous brands in same areas in Vietnam market. Labor cost There is a fact that the labor force of Vietnam is very plentiful. However, the quality of this labor resource is not high.
Thus, Vietnamese labor force usually is cheaper than other countries in Southeast Asian area. Nowadays, Vietnamese government are investing more money in order to improve the quality of labor force. However, in short-term, TSR need to spend money to train their employee (for the professional staff in the first period) Quality of infrastructure Location of shops or kiosks that are suitable for enterprises when transporting goods ND are close to customers will help companies sell products and services easily. In Vietnam, some famous brands always build up their shops in crowded venues such as Vinson centre.
Although the infrastructure in Vietnam nowadays is not really good, Vietnamese government are trying their best to improve this problem. This is also a way to attract more foreign companies to invest to Vietnam. C. Technological In work, TSR can have better products with higher quality, because of useful modern technology, which help TSR save many time and money and also their staff can work easily. On the other hand, with the familiar of internet, especially access rates of Backbone or some website, TSR can make use of this useful tool in order to fulfill marketing activities more effectively d.
Social/Cultural Demographics The population size is very large with Vietnam over 80 million people and still growing strong. Besides, Vietnamese population is young but aging society in the near future. So, this is the most important force that TSR have to focus on in order to sell their goods and services. In addition, with the advantages of being a profuse human resource country, the recruitment will become easier for TSR. The consumer's behavior meal is a good way to help family members get together. Within recent some years, fast food is becoming more popular with the people of Vietnam.
With the new trend in social, it is not unusual if you prefer to go to fast food restaurants rather than cooking meals at home. However, TSR need to care more about the taste of food because Vietnamese customers are always like to enjoy the gourmet which has family-flavor. Religious Different with Malaysia, Vietnamese people are not Muslim. They worshiped in Buddhism and some follow Christian. In fact, while the TSR is a Muslim style assistant so that there are a certain number of difficulties in the customer's taste.
Therefore, they should create or revise their dishes to be more suitable with customers in Vietnam. 2. The micro environment Micro environmental factors are analysis by SOOT form which include: Strengths, Weaknesses, Opportunities and Threats Internal factors Strengths Famous brand Distribution: 62 outlets in now Many years' experience (founded in 2000) Diversity of products (suitable for many ages) Good quality Friendly product's image Unique product (fast food but it's rice) and unique style (family style)
Weaknesses Lack of public relation (especial in Viet Name) Insensible price (compare with Vietnamese currency) Lack of understanding about the market Bias about food External factors Opportunities Potential market (Vietnam) Vietnamese income is being improving day by day Most of product meet the demand of officer Convenient place to carry on business Cheap raw material Cheap labor force Threats restaurant competitors (Mann Hooch Chicken, Walking Chicken) Illegal suppliers (Almost from China) a. Strengths The Chicken Rice Shop (TSR) is a chicken rice fast-food restaurant and HALL family assistant chain in Malaysia.
The chain is operated by TSR Restaurants Sad Bad, a company incorporated in Malaysia, which was established in June 2000. The Chicken Rice Shop serves what it calls "grandmother's traditional Haines secret recipe chicken rice" and local Malaysian dishes. With the successful growth of TSR in their domestic markets, they plan to spread the culture of the Malaysian way of life into the Indonesia market 2007, followed by Australia, Singapore and other Asian countries such as Philippine, Taiwan. Besides that, products voters also are much diversified.
TSR had created and developed successfully 45 kinds of chicken and related items, 10 kinds of rice and noodles, 5 kinds of vegetables, lot of kinds of beverages and 8 combos for different kinds of customers. Hence, it can satisfy many customers of many different ages. Their slogan is Began Sadder NASA Maya: (Not just Chicken Rice) in Malay and "Chicken Rice and More" in English which relate a friendly characteristic of the firm. The quality footer's products had been affirmed through a lot of awards in Malaysia. Especially, TSR is famous about family-style which gives customers a similar feeling as dining at home. Weaknesses Although TSR had been successes in Malaysia, Indonesia, Australia and Singapore, it still is a new brand in Vietnam market. Vietnamese don't know anything about TSR while TSR had become an international brand. Besides, with the Vietnamese, rice is always a main dish. They do not accustom to use rice as fast food. However, TSR is still lack of necessary public relation. We can't deny that when we think about words of "fast food brands", every idea about fast foods is focused on famous brands like KEF, BBC or McDonald.
All information of TSR only can find out through Tact's Bessie, Backbone or some infamous website. In the opposite direction, TSR also don't have more activities to find out Vietnamese market. The price of a normal combo of TSR is about 100. 000 VEND which may be quite expensive with some kind of customer. C. Opportunities Vietnam is a developing country, so Vietnamese government had given many policies that encourage foreign companies to expand market in Vietnam. These policies really help enterprises develop and making profit fast .
Because of a developing country, Vietnamese income is less than many other neighbor countries but it still increase more and more. Moreover, most of Vietnamese people are young population so they accept easily a new kind of food. Moreover, business locations in Vietnam inspire of expensive, but it fits with the foreign investments that have large capital. Although the quality of labor force in Viet Name is not high, TSR don't need to rent a high quality employee for some Job like a waitress or chef. Besides, the price of Vietnamese labor force is cheaper than other countries in South East Asia.
Finally, the price of raw material such as rice, chicken and vegetable in Viet name is better than other countries in both quality and price. D. Threats hat TSR will have to compete in Vietnam market. In the fast food areas, they need to face with KEF, Lotteries and BBC which have become a famous brand in Viet name. Besides, in Viet name, there are more restaurant which famous about chicken meal such as Mann Hooch chicken, Walking chicken. They don't have a secret formula but their traditional taste is fit with Vietnamese people. Another threat is illegal supplier whose goods is smuggled and evades taxes.
TSR should pay attention in this problem. IV. Segmentation criteria to be used for The Chicken Rice Shop in different markets There are many ways for TSR to segment Vietnam market. It can be: geographic segmentation, demographic segmentation, cryptographic segmentation and behavioral segmentation. However, at the part of being a food company, TSR should focus on two main factors are: geographic segmentation and demographic segmentation. 1 . Geographic segmentation The companies should focus mostly on 2 factors: population and location.
Population Viet Name is one of the biggest citizen country in the world, however, it distributed unequally. Vietnamese tend to gather in big cities such as Hanoi capital or Ho Chi Mini city. Therefore, TSR will have the maximum a number of customers come in hen operating business in Hanoi or Ho Chi Mini market. Location In case of Vietnam, it can be divided to the Northern, the Southern and the mid Vietnam market. In the Northern and Southern, for example Ha Non and Ho Chi Mini city, the facilities are quite modern, especially in some new high building or centre mall.
Almost every entertainment & cultural centers also are built in these two cities. Although there are more problems in rending place in here, these two cities are really potential market if TSR dare to invest aggressively. Besides, in the mid Vietnam such as Ad Nag city, it is in the developing stage so TSR can target in here s a good market in the near future. 2. Demographic segmentation Age We can be divided into 3 groups, which correspond with different needs and wants Children (under 12) and Teenager (under 20) They easily attracted by the appearance of product or sometimes only brand of the company.
They seem to a potential customer because TSR don't need spend more money to attract or advertise. However, they don't have more money and they need to depend on the adult. TSR can use this information to develop their product such as color, flavor, shape even building-up a new mascot which can help them dominate his area. Adult (over 20) In this group, customer can independent about their money. Most of them have a Job duty of TSR is getting more satisfaction of this group Elder They are very careful and it so strict with new things such as TSR even fast food.
So TSR need have a strategy which suitable with this group but they don't need to focus on here Genders There is a real that women eat fast food less than man because they want to keep fit. However, TSR still earn profit from women by create and develop a new kind of food which haven't too much lipid and is suitable for women. With modern science and technology in now, this thing is absolutely able to do. Income/ Occupation May be this is a big problem voters. A average price of a combo of TSR is about 15 ARM ? 100. 00 VEND, it more expensive than products of competitors like KEF, BBC and absolutely high for student and people with low income. There is a real that TSR is not a familiar brand with Vietnamese people. The best solution for this problem is to segment market into two groups: high income and low income. Besides, they need to focus on the first one group first and after becoming more popular, they an decrease the price and also access to the second group. 3. Psychological segmentation Cryptographic segmentation divides consumers on the basis of difference in lifestyle, attitude, interest, and opinions.
We can divide Vietnam into two main markets according to life style criteria: Southern market and Northern market. Vietnamese who live in the South have a liberal life while Northern people tend to live simply. Thus, customer approach of the two clients will be different. They should do well this issue to maximize revenue and gain the satisfaction of all customers. Besides, the interest of customer when they go to the restaurant alone and with their family is different. TSR have done this work very good in Malaysia when building up a good image about fast food restaurant for family.
It's may an advantage for them to attract customers in Vietnam. Moreover, I think they can expand the market for couples. For example, they can they can create the romantic space for couples in love or married couples. They should also build an image which may be eye-catching logo, mascot their characteristic. 4. Social behavior Socio-cultural segmentation divides consumers on the basis of culture, sub-culture, Ross-culture, religion and social class In real life, we can be divided into three classes: the upper class, middle class, and lower levels which correspond to their income.
Tact's products need to suitable with all of them, but TSR can decide to focus in a particular class first (l suggest that middle class first, then upper class and finally lower class) TSR is a Chinese style restaurant so it can taste quite suitable with customer in Vietnam. In the menu of TSR, there are many dishes similar to the meal in a restaurant in Vietnam (of course there are differences in presentation and arioso spices of each country). For this reason, customers are easy access to the restaurant's meals.