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This document is the strategic plan to create a new brand of a Vietnamese fast food restaurant. This includes financial plan and marketing plan the the new brand.

This document is the strategic plan to create a new brand of a Vietnamese fast food restaurant. This includes financial plan and marketing plan the the new brand.

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Creating a Brand Creating a Brand Document Transcript

  • HBM 529 – BRAND DYNAMICS Prepared for: Mark Tolson 08 November 2011 Quyen Nguyen 7239084 Thanh Le 7005598 Lien Le 7042973 Fivien Utomo 6068706
  • EXECUTIVE SUMMARYThe purpose of this report is to create and develop a new brand of Vietnamesefast-food restaurant. In this report, we have conducted both qualitative andquantitative research, which was done to explore the idea and to test theconcept of our brand with potential customer.Our new brand is a Vietnamese fast food restaurant specializing in Vietnameserolls located in CBD area. We positioned ourselves as fast food restaurantproving healthy and affordable food with fresh material and superiorcustomer services. We target on both students and professional studying andworking in CBD area that are health conscious and seeking value for money.Furthermore, they are good at using Internet, especially social media networkto looking for information.Following market research result, proposed brand name for the restaurant isViet-roll with tagline being “Purify your taste”.For this new brand, we mainly use social media (such as YouTube andFacebook) and universities sponsorship as our communication strategies asthey are effective and affordable. However, in our launch campaign, we alsouse mass media like magazines and online advertising to leverage the brand’sawareness and recognition. Promotions such as Gift Vouchers and tastingevents are also used to increase customers’ confidence to try our food.Finally, we expect to get potential profit that will grow year on year to reach$200,000 by the end of the third year.In conclusion, Viet-Roll has a great opportunity to enter fast-food industry inAustralia due to an unfulfilled need in the market. It is recommended Viet-Rollshould be constantly innovated in terms of quality and products andintegrated marketing communication strategies should be maintained andimproved all the time to enhance its brand awareness. 2
  • Table of ContentsEXECUTIVE SUMMARY ............................................................................................................................. 11. INTRODUCTION .................................................................................................................................. 5 1.1. AUTHORIZATION AND PURPOSE................................................................................................................... 5 1.2. LIMITATIONS ................................................................................................................................................... 5 1.3. SCOPE OF THE REPORT................................................................................................................................... 52. MARKET ANALYSIS ........................................................................................................................... 6 2.1. OVERVIEW OF M ARKET .............................................................................................................................. 6 2.2. EXTERNAL MARKET ANALYSIS (PEST ANALYSES).................................................................................. 8 2.3. INDUSTRY MARKET A NALYSIS USING PORTER FIVE FORCES ............................................................... 9 2.4. POSITIONING OF THE CURRENT MARKET PLAYERS ................................................................................ 10 2.5. PERCEPTUAL M AP .................................................................................................................................... 11 2.6. IDENTIFY GAPS IN THE MARKET .............................................................................................................. 113. PROPOSED PLAN .............................................................................................................................. 12 3.1. RESTAURANT DESCRIPTION ....................................................................................................................... 12 3.1.1 Product Description.................................................................................................................................. 12 3.1.2 Décor................................................................................................................................................................ 13 3.1.3 Features and Benefits .............................................................................................................................. 14 3.2. PROPOSED POSITIONING AND TARGET MARKET ................................................................................... 15 3.3. MOOD BOARD............................................................................................................................................... 174. DEVELOP POTENTIAL BRAND NAMES ...................................................................................... 18 4.1. CRITERIA OF BRAND ELEMENT ................................................................................................................. 18 4.2. TAGLINE ........................................................................................................................................................ 19 4.3. LOGOS ............................................................................................................................................................ 195. TESTING FOR PROPOSAL .............................................................................................................. 21 5.1. PROBLEM DEFINITION ................................................................................................................................ 21 5.2. RESEARCH DESIGN ...................................................................................................................................... 21 5.3. RESEARCH METHODOLOGY........................................................................................................................ 226. ANALYSIS OF RESULT ..................................................................................................................... 23 6.1. RESULT OF QUALITATIVE RESEARCH....................................................................................................... 23 6.2. RESULT OF QUANTITATIVE RESEARCH .................................................................................................... 24 6.2.1 Potential brand names.......................................................................................................................... 24 6.2.2 Proposed positioning ............................................................................................................................. 25 6.2.3 Proposed Target Location ................................................................................................................... 27 3
  • 6.2.4 Proposed product features-benefits................................................................................................ 277. BRAND AUDIT ................................................................................................................................... 298. INTEGRATED MARKETING COMMUNICATION (IMC) STRATEGY.................................... 31 8.1. LAUNCH CAMPAIGN..................................................................................................................................... 32 8.1.1. Mass Media................................................................................................................................................ 32 8.1.2. Social Media.............................................................................................................................................. 36 8.1.3. Promotion .................................................................................................................................................. 39 8.2. GENERAL COMMUNICATION STRATEGY................................................................................................... 40 8.2.1. Long-term communication strategy ............................................................................................. 42 8.2.2. Communication Gann Chart.............................................................................................................. 449. BUDGET ............................................................................................................................................... 45CONCLUSIONS ............................................................................................................................................ 48REFERENCES .............................................................................................................................................. 49APPENDIX ................................................................................................................................................... 51 APPENDIX 1: MENU OF THE RESTAURANT ........................................................................................................ 51 APPENDIX 2: CRITERIA FOR CHOOSING BRAND ELEMENTS ............................................................................. 52 APPENDIX 3: QUESTIONNAIRE ........................................................................................................................... 53LIST OF FIGURE ......................................................................................................................................... 55 FIGURE 1: INFLUENCER FACTORS.......................................................................................................................... 55 FIGURE 2: EXPECTING SPENDING PRICE ............................................................................................................... 55 4
  • 1. INTRODUCTION1.1. Authorization and Purpose The purpose of this report is to create a new brand of a Vietnamese fast-food restaurant specializing in Vietnamese rolls. Australian fast food market is a big and mature market, however there is still available gap and niche market to go for. It is due to the increase of health consciousness among young people. Moreover, there is no restaurant that provides healthy Vietnamese fast food at affordable price in the market at the moment. Therefore, this is a good opportunity to enter Australia fast food market.1.2. Limitations In this report, we mainly focus on creating a new brand of Vietnamese fast food restaurant and its communication strategy in Melbourne. However, all analysis including external and customers environment were mainly based on IBIS World Industry Report for Australia nationwide. Therefore, level of accuracy may not be very high. Market Research is also another limitation of this report as surveys were conducted among only 12 people. It is quite a small group and may not be represented for the whole target market.1.3. Scope of the report This report will include the following parts: Market Analysis, Product Concept, Development of Potential Brand Names, Testing, Analysis of Result and Integrated Marketing Communication. 5
  • 2. MARKET ANALYSIS2.1. Overview of Market According to IBIS World, the market size of fast food industry in Australia is growing and will reach 15.2 billion in revenue in the financial year of 2011-12. By providing consumers with an evolving and adaptable product selection, a 2.7% per annum rise in sales is expected over the next five years to a reach the total value of $17.3 billion by the end of 2016-17. The following figure shows the market’s products and services, in which Hamburger, salad and sushi are dominating the market. Australian fast food market is being led by Mc Donald, holding 19.5% market share, Yum! Restaurants (Pizza Hut, KFC) having 16.5% market share and Competitive Foods Australia (Hungry Jacks) with 8% of market share. The residual market share is distributed between wide varieties of fast food businesses. The fast food market is considered mature with high concentration and competition levels. 6
  • At the moment, one of the biggest influences on Australia’s Fast Food industryover the past two decades has been the growing social and consumerawareness about the importance of healthy eating. Australians have becomeincreasingly health conscious (IBIS World, 2011). It is a big opportunity fornew players in the market.On the other hand, consumers are likely to continue seeking value for moneyin fast food meal purchases and some may trade down food purchases in favorof lower-priced meal options. It will cause price war and fierce competitionamong players.In general, Australian fast food market is mature with stable growth. It hasmany strong and experienced competitors with main product beinghamburger, sushi and salad. At the moment, customers in the market arebecoming more health conscious and price sensitive. 7
  • 2.2. External Market Analysis (PEST Analyses) Political Social With the increase of busyThe increase of health problem such lifestyle, fast food brands have aas diabetes and obesity due to unique opportunity to replaceconsumption of fast food led to home cooked meals by offeringgovernment and citizens’ concerns healthy time saving meals.about food safety. More mothers are getting back to work, so they are seeking quick and healthy fast food alternatives. Environmental TechnologicalOpening a fast food store does not Improved efficiency of POS (Point ofhave a large environmental footprint. Sale) i.e. improved credit cardHowever, to appeal to a young and efficiency such as ‘tap and go’’ forfresh health conscience generation, visa and MasterCard increase thethe design of the store should follow speed of transactions and reduce themodern and contemporary design queuing time for customers.with lots of glass, open spaces andmodern materials. The boom of social networks such as YouTube and Facebook also bring a new communication channel for Viet-roll so that it can communicate with the customer more effective. 8
  • 2.3. Industry Market Analysis using Porter Five Forces Factors Score Descriptions/ Notes The market is saturated with established fast food Threat of brands in convenient locations. However, due to the new Medium change of Australian lifestyle, which is healthier and entrants more environment friendly, there is still a room for new players. Supplier power is low as there are many suppliers in Supplier Low the market and they are quite providing same power products at similar prices. Unless buyers are brand loyal to a particular Fast Food Chain, otherwise there is no switching cost Buyer associated for patronising competitors’ service. It is High power buyer choice what their preferences are. Moreover, customers are now seeking value for money, they are likely to change fast food brand based on price. Supermarket and Convenience stores such as 7Eleven and Safeway are offering pre-packaged meals at Threat of High affordable price. Some Vietnamese restaurants areSubstitute offering cheap meal deal to attract price sensitive customers. At the moment the number of Fast Food brand are Rivalry very high. It causes fierce competition among the among Very High competitors particularly in price and healthycompetitors offerings. 9
  • 2.4. Positioning of the current market players The main current market players in the fast food market are Mc Donald, Pizza Hut, KFC and Hungry Jacks, accounting for more than 40% of the total market. Products are competitively priced to attract customers with large distribution networks. Their positioning is value for money through affordable meal deals, promotion and convenient locations. Their product offers are considered to be unhealthy and has been blamed by various healthy groups for the source of obesity in this nation. McDonalds in particular have introduced healthy food segment, which have been Heart Tick Approved such as Seared Tandoori Wrap (Mc Donalds, 2011). KFC and Hungry Jacks are introducing premium gourmet, which are perceived as being healthy such as using celebrity Darren Simpson to create his limited edition chicken burger range for KFC (KFC, 2011) and Organic beef burger – Classic Angus (Hungry Jacks, 2011). Stores are conveniently located not only in hot spot areas (such as CBD areas, shopping mall and big super markets) but also spreading across suburbs to maximize sales. The business is mainly expanding through franchise licensing. The healthy segment competitors are Subway, Grill’d and Salsa’s owned by Boost Juice. The food offerings are still in similar category as the dominant market players above i.e. western style cuisine and offering burgers as one of the menu, but differentiate itself through ‘calorie- conscious’ ingredients used and preparation methods and place themselves as premium gourmet fast food. We can see that all the competitors are focusing on the same products at similar price and limited differentiation. As result, they are in very fierce price war and are seeking for different kind of promotion to attract customers. 10
  • 2.5. Perceptual Map The following are Perceptual Map of the main players in fast food industry at the time2.6. Identify Gaps in The Market The market is mature with high competition levels of Western Fast Food such as burgers, chips, pizza and pies. The healthy alternatives are also very similar such as McDonalds, Hungry Jacks but deemed to be healthier through the use of different type of meats, ingredients and production method (baked instead of fried). Other alternatives are sushi, salads, sandwich rolls and fascias that seem healthier than burgers and pizzas. On the other hand, when looking at the Australian demographic, it becomes very clear that Australia is a country, which has multicultural population. There is a potential opportunity to introduce a niche fast food brand based on one of the ethnic groups that prefer healthy food. The selected group is Vietnamese, which is the fifth largest immigration group in Australia. Australia has a population of approximately 160,000 Vietnamese with 36.8% living in Victoria (Australia Bureau Statistics). 11
  • Melbourne has a wide range of Vietnamese restaurants, located in hot-spot locations such as Richmond, Footscray, Sunshine and St. Albans. The range of existing Vietnamese restaurants indicates that people are familiar with the Vietnamese cuisine and flavors. Some of the cuisine could be categorized as fast food such as Vietnamese baguette and Vietnamese rolls that are offered in small shops or Vietnamese convenient stores. Vietnamese rolls are mainly made of fresh and health materials such as rice paper cake; it can adapt the new trends of eating healthy food among young customers. Moreover, there is no dominating Vietnamese fast food brand existing in the market at the moment, it is an opportunity to introduce a Modern uptake of Vietnamese restaurant specializing in Vietnamese rolls in a Fast Food Setting.3. PROPOSED PLAN3.1. Restaurant description Our restaurant will be a small and modern fast food restaurant located in CBD area, which is a suitable place or fast lunches and dinners. It proudly serves contemporary Vietnamese cuisine with all kinds of rolls. Especially, it is committed to provide authentic Vietnamese taste with added Asian herb, fresh vegetable, natural meat and seafood whenever possible. The restaurant will differentiate itself by superior customer services, as each customer will be treated like a family member. The restaurant will be featured with green herb trees and flowers in theme colors of green and light orange to make customers feel more fresh, relaxed and cozy.3.1.1 Product Description Our product will be all kinds of Vietnamese rolls which are easy to make, easy to take and easy to carry. We commit to use fresh and healthy materials. 12
  • Besides rolls, we also provide other typical Vietnamese authentic food such as pancakes, salads and soups. Main materials we use will be all kinds of Vietnamese mints and herbs, fresh vegetables and fruits, natural meat and seafood. We also differentiate ourselves by offering wide range of Vietnamese sauces that cannot be found at anywhere else. Especially, each weekend, we will surprise our customers by special dishes, which may be Vietnamese hop pot, Vietnamese BBQ or other Vietnamese recipes (See appendix 1: Menu of the restaurant).3.1.2 Décor Our restaurant style will be modern but green, warm and cozy with green and light orange being theme colors. Wooden tables and chairs, green floors and walls, and herb pots around (designed by local architecture) will enhance the feelings of nature and coziness of the restaurant. 13
  • There will be a small herb and vegetable garden in the middle of the restaurant and they will be used directly in our cooking process. It will ensure that our materials are fresh and are not fertilized.3.1.3 Features and Benefits Healthy food The main ingredients of the restaurant are fresh vegetables so the food is less fat and quite healthy 14
  • Fast and Affordable Our restaurant will offer two meal options for customers: install lunchbox or customized rolls. Each serve of customized rolls will be made when required in around 2 minutes, using fresh and tasty ingredients. The rolls will be much fresher, healthier than other kind of fast food. We also provide quick delivery services within Melbourne CBD, so that our customers can have good meals whenever they want.3.2. Proposed Positioning and Target Market We position ourselves as a healthy and affordable brand. We go for a niche market, as the Vietnamese cuisine has not been offered in fast food setting before. It is to fulfill the gap in Australian fast food market at the moment. The following is our expected perceptual map: The proposed target market will be as follows: 15
  • 1. 18-24 years old – typically university/TAFE students and fresh graduates in their fresh job. This group will be looking for affordable meals and yet, cool place to ‘hang-out’ with their friends/colleagues. 2. 25-35 years old – typically has higher discretionary incomes, busy working professionals and young couples married with children. According to IBIS World 2011, there is growing increase of working mothers in the age segment. Hence, they are seeking for quick and easy alternative to home-cooked meals.The new Vietnamese fast food store will ideally be located in an area withmany young people (proximity to universities) and people with disposablemoney to spend on healthy fast food. An area with a wide diversity range isexpected to attract customers with Vietnamese heritage with expected interestfrom other group following. Therefore, Melbourne CBD is an ideal place forour restaurant. 16
  • 3.3. Mood Board 17
  • 4. DEVELOP POTENTIAL BRAND NAMES4.1. Criteria of Brand Element Based on the key criteria for choosing brand element such as brand name, logo and tagline from Keller (2008) (Appendix 2: Criteria for Choosing Brand Elements), we have developed three possible brand names for our healthy fast-food restaurant as follows: Table 4-1: Proposed Brand names Brand Names DescriptionNana Short and Easy to recognize and recall the brand The brand name related to grandmothers (“Nanny”) bringing family feeling. Flexible to transfer within and across product categories Able to adapt the brand element toward the change of consumer values and opinions in the future It is quite old styled and not fashionable.Viet-Roll Simple to recognize and recall Easy to remember Easy to associate with the main product offerings: all kinds of Vietnamese rolls No negative meanings in different languages.Wrap & Rolls Reveal the features of products Simple, easy to recall and remember A little bit long and hard to pronounce for Asian people.Coriander Hard to associate the brand name to the products. A bit difficult to move forward other categories 18
  • 4.2. Tagline For tagline, have 4 possible proposed taglines for our restaurant and product: “Purify your taste” – Unlike other fast food, which is oily and salty, our product will purify your taste with pure and healthy ingredients. “Think different, eat healthy” - Our product will keep you healthy and full of energy to stand out and to be different. “Your healthy meal, our mission” - Giving you healthy meal is the mission that we commit to fulfill. “Rolling in the day” - Our fresh and healthy food will bring you full energy for a busy day. 4.3. Logos After doing survey, the result showed that the name “Viet-roll” and the tagline of “Purify your taste” were the most popular ones. Therefore, we have come up with 3 possible logos the designs for the name and the tagline. 19
  • Table 4-2: Proposed Logos Logos Meaning of Logo Using green and orange colors, which are vegetable’s color, to show product’s freshness and healthiness. The styled “O” associates to a cut slide of roll. Moreover, it looks like number 9 – a lucky number in some Asian culture. The font looks so touch and less lissome. Using the same colors as version 1; Using the handwriting font to bring customers the feeling of friendliness and relaxation; The font is more lissome. Green is for healthy, and Orange is for beauty and youth Using both letters and symbol to illustrate the brand Orange becomes main color theme in this logo. 20
  • 5. TESTING FOR PROPOSAL5.1. Problem Definition Market research is a tool that is used to enhance decision-making and planning and ultimately to reduce risk and identify opportunities (Fong & Miller 2006). The quantitative research has been conducted to determine the ultimate brand name and understand the perceptions of target market. In this case, our focal issue would be: “What make a Vietnamese fast food restaurant success in Melbourne?”5.2. Research Design A research design is simply the framework or plan that guides the collection and analysis of the data of the research study (Aaker et al. 2007). In order to achieve the objectives of research; secondary and primary data will be collected to answer the focal issue. Objectives for research  To find out the most suitable brand name  To understand customer’s attitudes toward the brand and product’s concept.  To determine essential factors, which customers have most concerned about  To analyze brand name appeal and value in customer’s point of views  To search for customer’s expectations in term of service, foods and environment of Vietnamese fast food restaurant. With the aim of finding strategic answer for the focal issue and research objectives, market research will collect both primary and secondary data. 21
  • Secondary data is information that has already existed from the Internet and other trustworthy database and sources such as IBIS World, Emerald, Passport and Euro monitor. This data will provide general and overview information about Australian fast food industry, market shares, sizes and current players and other external factors, which have important roles in decision-making. Target segmentation, new brand name and strategic strategy are determined based on these secondary data. On the other hand, primary date will be collected through focus group and survey to specific target customers for deeper understanding about customer’s attitudes, brand acceptance and purchase concern in Vietnamese fast food restaurant.5.3. Research Methodology To test our brand concept, we have conducted a small focus group and a small survey. For survey, a questionnaire (See Appendix 3) is designed to be used to accomplish a wide variety of research objectives. Before administering the survey, it is essential to pretest the questionnaire to identify and correct any error in order to ensure that questionnaire meets the expectations in terms of information that will be obtained (Aaker et al. 2007). Our survey is conducted with 12 people who are working and studying within 10 km from Melbourne CBD via email or face-to-face. The following table describes the criteria for choosing respondents 22
  • Table 5-1: Proposal Target market – sample definition for marketing research Size of Sample 12 people Demographic Male or Females Age range of 18-35, University Students and professionals Location People who are living within 10km from Melbourne CBD Behavior People who are seeking healthy and valuable fast food restaurant.6. ANALYSIS OF RESULT6.1. Result of Qualitative Research The results of focus groups help us to describe our target consumer base on different ideas of participants without our influences. Base on the information collected the mood board was developed. Our target customers include (1) university/TAFE students and fresh graduates in their fresh job who are looking for affordable meals and yet, cool place to ‘hang-out’ with their friends/colleagues; and (2) busy working professionals and young couples married with children who have stable jobs with higher incomes. The focus group also gave us important ideas and opinions about how brand name, logo and slogan would be, price range, restaurant environment and preferable dishes in the menu. 23
  • 6.2. Result of Quantitative Research Information and data gathered in the survey provides information to satisfy these objectives: Verifying proposed positioning of our Vietnamese fast food restaurant; Verifying proposed target market; Selecting final brand name; Selecting preferred the distribution channel and communication strategy.6.2.1 Potential brand names Potential Brand Name = (n 46% 33% 15% 8% Nana VietRoll Coriander Wrap&Rolls Based on the result of the survey for 4 potential brands names (with 12 respondents). 46% of respondents were considered “Viet-Roll” as the most suitable name for a Vietnamese fast-food restaurant specializing in Vietnamese rolls. With the taglines, 60 % of them agreed on “Purify your taste”. After that, we also showed all 12 respondents 3 logo designs and 7 of them thought that the second one were the most suitable one. Finally, brand name, logo and tagline for the restaurant are decided to be “Viet-Roll - Purify your taste”. 24
  • 6.2.2 Proposed positioning Based on our survey result, the most important factors that influence customers’ choice of fast food restaurant are as follows: Influencers 68% 69% 70% 62% 58% 60% 50% Most of them (70%) suggested that taste, price and vouchers/deals are three important elements for a fast food restaurant. After these factors, group of convenience factors – i.e. location, sanitary and customer service are rated as the second important factors with more than 50% of respondents’ agreement. (See the Figure above). Also, the need of fast delivery is an important factor with 60% of votes. 25
  • After analysis the survey result, we found that we were on the right track ofpositioning ourselves as a Vietnamese fast food restaurant with authenticVietnamese rolls, which are fresh, healthy and affordable. The followings are keyimages we aim to have with Viet-rolls: Healthy, tasty and affordable; Timely delivery; Regular special deals/vouchers;Moreover, Viet-Roll we will differentiate ourselves over other competitors bysuperior customer services to make sure that customers will be come back and theirloyalty will be improved. 26
  • 6.2.3 Proposed Target Location Location 0% 0% 8% 8% Melbourne CDB Northern Suburbs Southern Suburbs Western Suburbs Eastern Suburbs 84% In according to our survey, there are 84% respondents refer to locate the restaurant in Melbourne CBD. We also think that Melbourne CBD is an ideal location for Viet- roll as the location gathering almost of our target market who are both students and professionals. Therefore, it appears that Melbourne CBD is the most suitable location for our new restaurant.6.2.4 Proposed product features-benefits Main courses for Vietnamese fast food restaurant: Types of food Voting Rolls 75% Pancakes 8,3% Rice Cakes 83,3% Soups 25% Vietnamese salad 83,3% 27
  • The result showed that rice cakes, Vietnamese salad and rolls are the mostpreferable main courses for a Vietnamese fast food restaurant.As for price range, the result also showed that 83% of customers prefer main coursefrom $7 - $10 price range (Figure 2). Therefore, our price will be very from $7-$10.Expectations:According to our result Taste is the most important factors for a Vietnamese fastfood restaurant with 67% of votes. Following that are Convenience and Prices arethe second and the third important factors with 42% and 33,3% of votes. Factors Assessment Delicious High Convenient Acceptable Expensive Acceptable Diverse High Good service Acceptable Clean High Good design AcceptableFrom the result, we will commit to keep our food quality at high level and try to lookfor new rolls recipe and formula so that we can satisfy out customers. Price will alsobe remain stable in at least next 2 years. 28
  • 7. BRAND AUDIT The CBBE model will help answer two most important questions, which are “What makes a brand strong?” and “How to build a strong brand?” Understanding the needs and wants of consumers and programs to satisfy them are at the heart of successful marketing. Therefore, the CBBE approach brand equity from the perspective of the customers. (Keller 2008). The following is CBBE pyramid that we expect Viet-roll to have in the future 29
  • According to CBBE above, we want to be considered as a high awareness and trustworthy brand in customer’s mind. We want our customers to perceive us as a tastyand healthy food restaurant with affordable price and super caring services. We alsowant customers who come with us feel safe and secure with our healthy food, andtherefore they will be more confident with their choices.The brand will offer an impressive performance through healthy and tasty productsby fresh and natural ingredients, convenient package, superior customer servicesand competitive price. These help to establish and improve the image of our brand.Based on those strong brand building blocks, the brand creates a long-term loyalrelationship with customers, which is indicated by high repeat purchase and activeengagement. Customers “love” the brand and will recommend it to their friends andrelatives. 30
  • 8. INTEGRATED MARKETING COMMUNICATION (IMC) STRATEGY Recently, Kitchen et al. (2004) observed that IMC has from being a mere "inside-out" device that brings communicational and promotional tools together to being a strategic process associated with brand management. IMC involves managing marketing communications in a holistic manner to achieve strategic objectives. Furthermore, it is contended that IMC potentially can make firms more efficient and/or effective in communicating with their intended target markets, and in turn, can help firms in achieving superior financial performance through higher brand equity. Integration of marketing communications is related positively to a firms brand-related performance, (Madhavaram et al. 2005) Therefore, we will use IMC Strategy for our new Viet-roll brand. With marketing budget being limited at $35,000 for the first year including launch campaign cost, it is necessary to have a highly effective IMC model at low cost. Therefore, in our IMC Strategy we focus on using social media, promotion and superior customer services to communicate with our customers. However, mass media, which is combination of print and online advertising, will also be used in the first month for the launch campaign. The reason is that with new-brand introduction, it is always a challenge for companies to plan an effective communication mix. In fact, cross media programs (combination of print and online advertising) may help increase advertising effectiveness and increase brand recognition, which is very important to a new brand; firms can be encouraged to supplement traditional print advertising with new media channels (Wakolbinger et al., 2009) 31
  • 8.1. Launch Campaign Viet-roll is about to be launched on 1st of December 2011, in CBD area. For launch campaign, we will use integration of Mass Media, Social Media and Promotion as per the following figure:8.1.1. Mass Media For Mass Media, we will use the combination of Print and Online Advertising. As mentioned above, the combination of print and online will leverage brand awareness and recognition, which are very necessary for a new brand like Viet-roll. Print Media. As print advertising on famous magazine is very expensive, we will utilize local magazines and student news. We decided to choose Melbourne Weekly, a free weekly magazine from Fairfax Media. It is released every Wednesday morning. Melbourne Weekly Magazine is Australia’s most successful free weekly magazine. It is about community, it is about celebrity and it is about style with circulation of nearly 110,000. The magazine’s 32
  • target readers are men and women from 18-45 years old working and studying inCBD area. They are quite similar to Viet-roll target customers. Image 1.1.1a: Melbourne Weekly MagazineViet-roll Editorial will be placed on December issue of Melbourne Weekly in 2011. Itwill be a Double Page Spread editorial on Time Out section. This section is aboutfinding out what’s new, upcoming and tried and tested in food and wine, music,theatre and the arts, galleries, festivals and community events ( (Melbourne Weekly,2011) 33
  • The following table is advertising rate of Melbourne Weekly Source: (Melbourne Weekly, 2011)Advertising cost for a casual Double Page Rate on Melbourne Weekly is about$14,127 and it is quite affordable for a new brand like Viet-roll.The following is the proposed layout for our magazine editorial: Image 1.1.1b: Editorial Layout 34
  • University magazines are also other channels to communicate with Viet-roll’simportant target customers who are university students. Advertising rate onuniversity magazines is always low or for free depending on level of sponsorship ofthe brand with the universities. In this sector, we will choose to sponsor a leisureclub at universities in CBD area (i.e. – Cooking Club). Or Viet-roll can sponsor otheruniversity parties or events such as Semester End Party and University Open Day.Those activities will help Viet-roll get free ads on University Magazines and help the brand become familiar with university students. Online Advertising. Online advertising has been found to be effective both in communicating corporate messages and in strengthening brand equity. Additionally, the Internet offers more freedom of action for consumers, who can select a time and place for their website browsing (Wakolbinger et al., 2009).With Viet-roll, we will use online review. It is likely more effective than otheradvertising. It is stated that online reviews can reduce consumer uncertainty aboutproduct characteristics and, therefore, have the potential to increase productdemand and firm profits (Li, 2011) 35
  • Online review will influence customers on step 2 and 3 that are Information Search and Evaluate Alternatives of Customer Buying Process in the Figure above. These steps play an important role on customer decision of purchase. Among many Food and Drink websites, we selected Australian Goof Food Website to get our restaurant reviewed. Throughout the decades pioneering principles and values have continued to set the standard establishing AGFG as Australias most respected rating authority (AGFG, 2011). It will cost around $3,000 to for a restaurant being reviewed on Australian Good Food.8.1.2. Social Media Social networking sites (SNS) such as Facebook and YouTube are growing in both popularity and number of users (Taylor et al., 2011). Australia is a country that has the highest using social networking rates in the world. There are more than 48% of respondents of the ACMA survey answers visiting social networking in the last month to browse personal profile or contact with friends, 25% watched video clips and 22% reading news via social networking sites (ACMA 2011). Social media is really cheap. It is totally free to have your own Facebook page and YouTube Channel. Also, social media have a large coverage. It has no boundary to reach the target customers. Another advantage of social media is that it provides two-way communication. Companies can be able to listen to and get recommendations from their customers easily and quickly via “comments” and “likes”; therefore they can communicate with their customers effectively and measure marketing effectiveness better. Social media also give companies chance to know who their customers are by looking at their Profile information which is really hard for other communication channel. 36
  • However to increase the likelihood that SNS users will react with a favorableattitude, advertisers should make their Social network pages more entertaining(Taylor et al., 2011)With all mentioned above, utilizing social media is really good for a new brand withlimited marketing budget like Viet-roll, we will use a combination of YouTube videosand Facebook pages to promote our new brand. We will have our own channel onYouTube site, and then solicited Facebook fans, combining both forms of socialmedia.YouTube. Firstly, for the Launch Campaign, we will create our YouTube channel; wewill make a short clip introducing our restaurant and our products, authenticVietnamese rolls. Then we will keep posting recipe video series called “How to makeit” every Thursday.These clips will be about teaching audiences how to make simple Vietnamese dishes,we will also share interesting tips to make delicious Vietnamese food such as how tomake spring rolls crunchy, how to keep vegetables fresh, and how to makeVietnamese sauces, etc… 37
  • Secondly, we will share our YouTube channel among friends and relatives, and then ask them to share with their friends. We hope that customers will like our interesting and informative YouTube Channel and it will be more popular.Facebook. At the same time, we also create our Facebook page. To make it interestingso that people can spend more time on it, we will commit the following activities: Uploading new photos of the restaurant and its new food every week Uploading all recipe video clips we have on YouTube Handing out Gift Vouchers for every special occasion via Facebook. Sharing small tips about cooking and interesting stories about our restaurant. Answering any questions about related to the restaurant Other interactions such as small quiz and customers sharing their own recipes. Like YouTube, at the beginning, we will ask our friends and relatives to share our Facebook pages to their other friends and suggest them to like it. Gradually, if they were interested in our Facebook page and restaurant, they will share it to more people. Our magazine editorial and online review will also help us to introduce our Facebook page and YouTube Channel to wider range of customers. With social media, we mainly focus on two-way communication. Actually, social media is not another push channel. To get customers engaged with the pages, we will try to listen and respond to what 38
  • customers want to know, see and hear. We will take into account their recommendations make sure that they will react to our effort with a favorable attitude.8.1.3. Promotion Promotion activities, such as coupons, special packs, discounted prices, sampling, buy-one-get-one, special displays, feature ads, on-pack stickers, special packaging, and event or sponsor-driven promotions can be an effective way to boost business activity, especially for customers to get used to a new brand name (Analytic Partner, 2011) For a new brand like Viet-roll, when customers have no idea about the brand and its products, promotion will make them more confident to give it a try. In this case, we will use the combination of two types of promotion, which are Gift Vouchers and Universities Tasting Day. Gift Vouchers. In the first month of opening, 300 free gift voucher valued at $5.00 will be handed out to our customers only for Monday and Wednesday every week. We aim to encourage customers to come to our restaurant more on weekdays, not just weekend. 39
  • Our Gift Vouchers will be handed out at: - Central location with Promotion girls wearing funny costumes to draw attention - For the first 100 people who click “like” on our Facebook Pages - Customers coming to Viet-roll restaurant on the Opening Day. Tasting events. Students are among important target customers of Viet-roll. They have high demand of fast and healthy food. They like trying new things, especially new food and new restaurant. We found it a very potential market. Therefore, we pay more attention to students. Besides placing our editorial on University Magazines, we will have tasting events every Friday at universities located on Melbourne CBD. Our food vans will provide students with free food including rolls, pancakes and other kind of Vietnamese authentic food. It will help get students familiar of the brand and increase their awareness of the restaurant. We will also sponsor for univerisities’ activities by providing free rolls for University parties and Open Day or for meetings of leisure clubs and other festival of the universities.8.2. General Communication Strategy For long-term communication, we will mainly focus on high effectiveness and affordable channels such as social media and superior customer services. Mass media such as magazines and review websites are just used in the first month for launch campaign, as they are quite expensive. We will also pay more attention to students and will continue sponsor for their activities at universities by providing them free food for the occasions. Gift Vouchers 40
  • will only be rewards for customers who participate in our social media activitiessuch as small contest and small quiz about our restaurant and our food or forcustomers who have good recommendation for our restaurant. Value of GiftVouchers may be varied form $5.00 to $20.00Our general communication strategy will be based on Buyer Readiness States asbelow. Different tactics will be designed to fit each state of the process. 41
  • 8.2.1. Long-term communication strategy The following table is our Long-term communication strategy Stage Objective Tactics Launch Campaign: - Mass Media: editorial on Melbourne Weekly Magazine and Restaurant review on Australian Good Food website - Editorial on universities news Awareness of the productsAwareness - Social media: posting “How to make it” video on YouTube and existence by the consumer. being active on Facebook. - Promotion and Sponsorship: Free Gift Voucher, University Tasting Days and sponsorship of university leisure clubs, parties and Open day. Keep Social Media pages informative and interesting: - Encourage customers click “like” on social media sites by rewards (Gift Voucher) - Update latest photos about the restaurant and its product once a Understanding the productKnowledge week and its benefits - Upload new “How to make it” recipe videos every two weeks - Get customers engaged to Social media sites by small contests and small quiz. - Answer any relevant questions about the brand. 42
  • Communicate more with customers directly and via social media - Always ask customers directly about how they feel about the If consumers know the restaurant and the food when possible.Liking product, how do they feel - Encourage customers to share their opinions and about it? recommendations directly or via social media. - Listen and consider doing what customers really need and want. - Provide customers with super caring customer services. - Keep improving restaurant performance and keep having new Consumers preference overPreference kind of rolls. competing products - On time delivery. - Be responsive on social media. - Say the same language with customers: continue sponsoring for student activities such as festival, parties and student leisure clubs. Its suitability to be purchased - Reinforce the brand’s image of healthy, friendliness and valueConviction by the consumer for money via social media. - Create great word of mouth with the help of close fans and via social media. Consumers may have - Change special dish every week to attract customers. conviction about the product - Hand out Gift Vouchers every month.Purchase but might not actually get - Send Invitation to customers every weekend via social media. around to buying it, 43
  • 8.2.2. Communication Gann ChartMonth M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12Mass MediaMagazineOnline reviewUniversities NewsSocial MediaYouTubeFacebookPromotionsGift VouchersTasting daysSponsor ship 44
  • Marketing Expenses Month1 Month2 Month3 Month4 Month5 Month6 Month7 Month8 Month9 Month10 Month11 Month12Mass MediaMagazine $14,127Online Review $3,000Uni. News $300Social MediaFacebook $250 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300YouTube $250 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300PromotionGift Vouchers $1,500 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400Tasting Days $900Sponsorship $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300Total $20,627 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $34,927 9. BUDGET 45
  • 46
  • The market share of Fast-food Industry in Australia will reach therevenue 15.2 billion AUD dollars in fiscal year of 2011 – 2012 (IBISWorld 2011) with Victoria taking 29% of the revenue. Viet-Roll istargeting to achieve 0.01% (equalling 440,800 AUD) of theVictorian fast food revenue in the first year of business.Assume that we will open 11 hours per day, 365 days per year andassume that each customers will spend average 8 dollars for ameal, we will sell to 4591 customers in the first month of opening.Advertising campaign will increase sales by 15% in the secondmonth and 2.5% for the next 24 months. In the third year, ourprofit will be 86,958AUD. 47
  • CONCLUSIONSTo conclude, Australian fast food market is mature with stable growth in the next 5 years.However, there is still available gap that can be exploited. Our Viet-roll brand wascreated to fulfill the need of healthy and affordable fast food of our target customers whoare young and health conscious people working and studying in Melbourne CBD. Wedifferentiate ourselves by unique offers and services to fulfill the current gap in themarket.The Customer-Based Brand Equity Pyramid has created to guide direction for marketingactivities in order to build a strong brand. With out Brand Equity, we focus to be a highawareness and to be remembered as a healthy, Vietnamese style, affordable and caringrestaurant.For communication strategy, we find it more effective and efficient utilizing thecombination of multi channel social, which are social media, sponsorship and promotionto build the brand and to meet the specific stages of customer’s readiness. These channelsare effective and have low cost. They are very suitable a new brand like Viet-roll.In order to maintain and develop the brand in the future, we will continue with thefollowings: Maintain our food quality and look for new healthy recipes. Be active and responsive on Social Media and maintain effective communication with students such as university sponsorship. Do further market research to better understand the customers (via social media)With our careful analysis and consideration, based on our estimation, we will getpotential profit each year and the profit may increase year on year to reach $200,000 inthe third year. 48
  • REFERENCES 1. Aaker, DA, Kumar V, Day GS, Lawley, M, Stewart, D, 2007, Marketing Research,2nd Pacific Rim edn, John Wiley and Sons Australia, Ltd. 2. AGFG 2011, About Us, viewed on 05 Nov 2011, <http://www.agfg.com.au/agfg/about> 3. Analytic Partner 2011, “Promotion Effectiveness for Imprived ROI”, viewed on 05 Nov 2011, <http://www.analyticpartners.com/services/promotional- effectiveness/> 4. Li et al., 2011, “Product Reviews and Competition in Markets for Repeat Purchase Products”, Journal of Management Information Systems , vol 27, p. 9-21. 5. Madhavaram et al., 2005, “Integrated Marketing Communication (Imc) And Brand Identity As Critical Components Of Brand Equity Strategy”, Vol. 34, p.71. 6. McNamara, G, Deephouse, D, & Luce, R 2003, Competitive positioning within and across a strategic group structure: the performance of core, secondary, and solitary firms, Strategic Management Journal, 24, 2, pp. 161-181, E- Journals, EBSCOhost, viewed 16 September 2011. 7. Melbourne Weekly 2011, “Advertising Rate”, viewed on 05 Nov 2011, <http://www.adcentre.com.au/media/359230/melbourne%20weekly.pdf> 8. Keller, L.K., 2008, Strategic Brand Management, 3 rd Edition, Pearson Education. 49
  • 9. Fong, J & Miller, H 2006, ‘Making the decision for market research: determining the need and competency’, Journal of continuing higher education, vol. 54, no. 1, Winter, pp. 34-38.10. Porter M. 1979. The structure within industries and companies’ performance. Review of Economics and Statistics 61: 214–227.11. Taylor et al., 2011, “Friends, Fans, and Followers: Do ads Work on Social Networks?”, The Future: Advertising on Social Network .12. Wakolbinger et al., 2009. “The Effectiveness of Combining Online and Print Advertisements”, Journal of Advertising Research .13. Walker, Jr, Gountas, J, Mavondo, F and Mullins, J 2010, Marketing Strategy (a decision focus approach), McGraw-Hill, Australia 50
  • APPENDIXAppendix 1: Menu of The Restaurant 51
  • Appendix 2: Criteria for Choosing Brand ElementsCriteria DescriptionMemorable Easy recognized and recalledMeaningfulness Descriptive and persuasiveLikable Fun and interesting, Rich visual and verbal imagery Aesthetically pleasingTransferable Within and across product categories, Across geographic boundaries and culturesAdaptable Flexible and updatableProtectable Legally and competitively Source: Keller L.K. Strategic Brand Management 2008, p14 52
  • APPENDIX 3: Questionnaire MARKETING RESEARCH ON VIETNAMESE FASTFOOD RESTAURANT 1. What location do you think is most MELBOURNE CBD …1 suitable for a Vietnames fastfood NORTHEN SUBURBS …2 restaurant? CIRCLE THE MOST CORRECT ANSWER SOUTHERN SUBURBS …3 WESTERN SUBURBS …4 EASTERN SUBURBS …5 2. What main courses do you think a ROLLS …1 Vietnamese fastfood restaurant PANCAKES …2 RICE CAKES …3 SOUPS …4 VIETNAMESE SALADS …5 3. How much do you want to spend for a LESS THAN $5 FOR ONE COURSE …1 fastfood meal? $5- $7 FOR ONE COURSE …2 $7-$10 FOR ONE COURSE …3 CIRCLE THE MOST CORRECT ANSWER MORE THAN $10 FOR ONE PERSON …4 NEAR MY HOUSE …1 4. How do you choose a fastfood restaurant. RECOMMENDED BY MY FRIENDS/FAMILY/COLLEAGUES …2 YOU CAN CIRCLE MORE THAN ONE ANSWERS. ADVERTISING …3 PREVIOUS VISIT …4 NEAR MY WORK PLACE …5 OTHERS (PLEASE SPECIFY) …6 5. What do you think about current fastfood in Melbourne? Just say the number that best describes your opinion. CIRLE ONE NUMBER IN EACH ROW DILICIOUS 7 6 5 4 3 2 TASTELESS POPULAR 7 6 5 4 3 2 UNPOPULAR EXPENSIVE 7 6 5 4 3 2 CHEAP DIVERSE 7 6 5 4 3 2 INSUFFICIENT GOOD SERVICE 7 6 5 5 3 2 POOR SERVICE CLEAN 7 6 5 6 3 2 DIRTY GOOD DESIGN 7 6 5 6 3 2 POOR DESIGN 6. Which of the following aspects are important to you when considering choosing a fastfood restaurant? PLEASE CIRCLE THE NUMBER ON THE SCALE THAT BEST DESCRIBES YOUR OPIONION VERY IMPORTANT NOT IMPORTANT AT ALL CANT SAY PRICE 7 6 5 3 2 1 0 TASTE 7 6 5 3 2 1 0 FOOD DIVERSITY 7 6 5 3 2 1 0 SERVICE 7 6 5 3 2 1 0 CONVINIENCE 7 6 5 3 2 1 0 ATMOSPHERE 7 6 5 3 2 1 0 LOCATION 7 6 5 3 2 1 0 SANITARY 7 6 5 3 2 1 0 DELIVERY 7 6 5 3 2 1 0 DESIGN PROMOTIONS 7 6 5 3 2 1 0 (VOUCHERS/ 7 6 5 3 2 1 0 DEALS) 53
  • 7. Who do you often go to eat with? LESS THAN 1 2-3 TIMES 4-5 TIMES 5-7 TIMES MORE THAN 8 TIMES PER PER PER MONTH PER MONTH TIMES PER MONTH MONTH MONTHGroup of friends 1 2 3 4 5Spouses 1 2 3 4 5Alone 1 2 3 4 5Business partners 1 2 3 4 5Family members 1 2 3 4 58. Which one do you think is most suiltable for a VIET-ROLLSVietnamese fastfood restanrant specilaising in NANAVietnamese rolls? CORIANDERCIRCLE THE MOST CORRECT ANSWER WRAP AND ROLLS9. Which tagline do you think is most Purify your tastesuitable with the brand name you have Think different, eat healthychosen? Rolling a day Your healthy meal, our mission Others (Please specify)10. What do you think that makes a fastfood restaurants different from the other ones?…………………………………………………………………………………… ………………………………………………………………………………………………………………………………………………………………………………… ………………………………………………………………………………………………………………………………………………………………………………… ……………………………………………………………………………………………11. What is your age range? PLEASE SPECIFY EXACTLY Under 18 18-25 25-40 54
  • LIST OF FIGUREFigure 1: Influencer factors Factors Very Important Not important important Price 68% 40% 0% Taste 70% 25% 0% Food 20% 45% 35%Diversity Service 50% 10% 40% Healthiness 62% 25% 13% Atmosphere 33,7% 58% 8,3% Location 58% 33,7% 8,3% Sanitary 58,3% 16.7% 25% Delivery 59,3% 25,3% 15,4% Design 16,7% 65,6% 16,7% Vouchers/De 70% 8,3% 16,7%alsFigure 2: expecting spending price Factor Percentage Less than $5 for 1 course 0% $5-$7 for one course 17% $7-$10 for one course 83% More than $10 for one person 0% 55